Tag Archives: Sales

How Mobile Commerce Is Changing Retail Sales

Smartphones have brought about unparalleled convenience in our daily lives. We are constantly connected to our rolodex of contacts with a variety of methods of communication. We can access all the information available on the world wide web anytime. Consumers looking to make purchases on the go can find the nearest store with ease. For businesses, the mobile platform represents not only a major avenue for advertising, but an opportunity to give customers the ultimate convenience when purchasing products.

According to Internet Retailer, mobile commerce represents 30% of all US e-commerce and rose by 38.7% from 2014 to 2015. Mobile commerce drives sales, and businesses lacking a mobile strategy are missing out on a major opportunity to increase revenue. Here are the top mobile commerce trends for 2016:

INTEGRATING PHYSICAL WITH DIGITAL

Although the digital world is virtually omnipresent in households, the appeal of immediately receiving one’s purchases by shopping in store remains attractive. Retailers are increasingly offering a variety of online + in-store options to capitalize on the convenience of digital and the immediacy of making a physical purchase.

Apps like Curbside have partnered with Target & Kroger’s to enable customers to reserve their purchases and skip the line when picking up products.

Beacon-enabled features like geo-targeted offers and loyalty rewards are becoming more and more popular. Geo-targeted offers can drive in-store traffic when delivered effectively. According to Target Marketing Magazine, 85 of the top 100 retailers are planning to adopt beacon technology by the end of 2016. Business Insider has predicted beacons will directly influence over $44 billion in US retail sales in 2016.

PERSONALIZED MOBILE PAYMENTS DRIVE LOYALTY

Although services such as Apple Pay and Android Pay were once hailed as the future, they have had a hard time receiving mass adoption. While mobile payment services haven’t gained popularity, the mobile wallet has made a major impact on commerce. Starbucks drives 16% of transactions through its mobile app. Walmart Pay arrived in December 2015, and now Target is next in line to develop their own payment app.

WEARABLES ON THE RISE

According to Arc, there will be a 61% growth in wearable ownership in 2016. App developers and retailers are still plotting on how to capitalize on wearables. Many anticipate a hands-free shopping experience in which one can simply walk out with their purchases and have automatic charges through wearable devices. Malls and large stores like Walmart may use wearables to make it easier for consumers to navigate stores. Wearables represent a major avenue for retailers to create innovative strategies and dictate trends to come.

THE MOBILE WEB DRIVES PURCHASES

While about 85% of time spent on mobile devices occurs in apps, the mobile web has actually proven to be a more successful in driving website traffic. While app usage is prevalent, consumers spend 80% of their app time on their top 3 apps. The mobile web drives twice the amount of site traffic than mobile apps. With 82% of smartphone users looking to their phones in stores when deciding what to buy, many anticipate the mobile web to surpass apps as the largest revenue driver in the next few years.

HOW CAN MOBILE COMMERCE HELP YOUR BUSINESS?

With technology in constant flux, the potential to drive revenue with a refined mobile strategy is constantly growing. Mobile strategies must be created, enacted and reevaluated with every new OS and device. Mobile is an ongoing investment. Understanding the value of a mobile strategy and how each device can enrich a customer’s interaction with your business will lead to long-term revenue growth.

Mind Over Matter: Why Apple Downsized with the iPhone SE

On March 21st, Apple announced a smaller 9.7 inch iPad Pro modela price drop for Apple Watch and new nylon bands, and most importantly, their latest smartphone: the iPhone SE. While the iPhone 6 and 6+ represented the largest phones in Apple history, Apple elected to go smaller with their latest release. The iPhone SE is the size of an iPhone 5 with the processor of an iPhone 6, essentially recycling the aesthetic design of the iPhone with the speed of an iPhone 6.

When it comes to smartphones, screen size matters. Statistics show over half of YouTube views come from mobile devices and the average YouTube session lasts for over 40 minutes. Although people are watching more video than ever on their phones, it doesn’t mean bigger is always better. Many scorned the iPhone 6+ for being too large and clunky. The iPhone SE represents a more affordable option with all the processing power of an iPhone 6 on a smaller screen.

iPhone SE vs. iPhone 6s (via 9 to 5 Mac)

When it comes to specs, the iPhone SE is no slouch. The iPhone SE screen measures at 4.87 x 2.31 x .30 inches, the exact same dimensions as the iPhone 5. Like the iPhone 6, the iPhone SE has retina display. The phone has an A8 chip with 64-bit architecture and an M8 motion coprocessor, like the iPhone 6. While the iPhone 6 has 1334 x 750 pixels (326 PPI), iPhone SE has slightly fewer with 1136 x 640 pixels. The SE’s rear camera is identical to the iPhone 6. The one area in which the SE exceeds the iPhone 6 is in battery life: iPhone SE has 1642 mAh while iPhone 6S has 1715. The SE’s smaller, lower-resolution display ensures users will receive 20% longer 3G internet surfing time on the SE, 30% more 4G, and 20% longer when watching video.

Check out this awesome video review of the iPhone SE by The Verge:

Apple is expected to announce the iPhone 7 in 2017. Techies expect the iPhone 7 to be a major advancement in the Apple lineage. With a large announcement looming, the iPhone SE is designed to diversify their product line with a cost-friendly option to hold Apple lovers over and combat the probability that iPhone sales will decline for the first time in company history in 2016.

At $399 without a contract, Apple seems to be aiming to take a bite out of the cost-friendly Android market. Although the average price for an Android smartphone was about $215 at the end of 2015, the difference may entice those drawn by the allure of Apple products.

Last year, Apple took a big bite out of China. In the 4th Quarter of 2015, iPhone sales grew 33% in China. Having recently lost their crown as largest smartphone vendor in China to Xiaomi, the Chinese market represents a major area of potential growth for Apple. Affordable options with premium processing power have the potential to eat into Android’s sales in rural and urban Chinese markets.

The move to more affordable iPhones began with the iPhone 5c; however, supply chain problems taught Apple that using new material can produce unforeseen difficulties. Foxconn announced that the iPhone 5 was the most difficult device they have ever assembled. By recycling iPhone 5 design, materials, and supply chain, iPhone SE is a much cheaper product to create and manufacture.

Some argue that smartphone UX has not advanced with screen-size and few phones have UX features specifically designed for large-screen devices. Whether or not this influenced Apple’s decision to downsize, the affordability, overseas sales potential, and diversified design certainly make the iPhone SE an attractive device for the company. The question now becomes: will Apple unveil a larger iPhone 7 in 2017 with groundbreaking large-screen UX? We’ll have to wait and see.