PERSPECTIVES

Category: ‘Mobile Commerce’







How Will Tablets Affect eCommerce?

Posted on June 9, 2011 at 1:34 pm

As we mentioned in our eCommerce Year in Review blog post at the beginning of the year, the iPad was the tech darling of 2010 and added a new way to sell online which some industry experts are dubbing “t-commerce” (tablet commerce). As we near the halfway point in 2011 the tablet market continues to boom with the release of the iPad 2 and a new host of proclaimed “iPad killers” including the Samsung Galaxy Tab, Motorola Xoom, and BlackBerry PlayBook. While the competition in the tablet arena has certainly heated up, the iPad is still head and shoulders above all of its competitors, accounting for almost 1% of the total browser market. While 1% may not seem like much, the total is 53 times greater than the iPad’s closest competitor (the Galaxy Tab) and clearly cements the iPad as the tablet device to focus on for the current future.

As the growth of the tablet market continues, how will these new devices affect eCommerce? Some of the information released thus far is pretty shocking…

  • Consumers enjoy the online shopping experience more on a tablet: In the same study from The E-tailing Group 69% of respondents who own both tablets and smartphones rated the tablet shopping experience as either “significantly better” or “somewhat better” than shopping via smartphone. In addition, a recent New York Times article highlighted how retailers are offering more of a “catalog feel” with tablet devices to allow consumers to interact more with products they are looking to purchase online.
  • Consumers are more likely to purchase clothing and accessories on tablets: Although books and magazines are still the most popular purchases on both mobile and tablet devices, there is some discrepancy when it comes to apparel purchases. Tablet users are 11% more likely to purchase clothing and accessories than smartphone users and tablet users are also almost twice as likely to purchase gifts and collectibles compared to smartphone users.

While some eCommerce professionals may want to lump together tablets and smartphones as “mobile devices”, the data above on usage could revise this train of thought. Retailers may want to look at their industry and their own web analytics to determine what plan of action is necessary for portable devices.

Apple is certainly leading the “mobile” charge… but what will they come up with next? Is the “iBoard” really that unrealistic? The iMat, on the other hand…


It’s also apparent that Apple is still a key player in leading not only technology trends but also eCommerce trends. While retailers should not blindly follow in Apple’s footsteps, there is no denying Apple is certainly top of mind with a large and growing segment of consumers when their latest products are released. What follows the iPad remains to be seen, but given the success of Apple’s previous devices the list of early adopters from the retail sector should only continue to grow for their next device.

In short, the tablet market has increased the expectations of consumers and their “mobile” shopping experience. Consumers are using smartphones to buy more commodity goods such as books and tickets and using their tablets for more unique apparel and gift purchases. Tablets can affect eCommerce by increasing the level of consumer interaction, in particular by utilizing the touch screen capabilities and increased screen size which are not present on the less robust smartphone devices. This interaction can enrich the experience of shopping online and allows retailers to meet the expectations of the modern day consumer.

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Five Key Findings From SXSWi 2011

Posted on March 22, 2011 at 11:26 am

SXSW, or South by Southwest, isn’t just about music anymore. Along with a film portion of the event there is also an interactive tradeshow, South by Southwest Interactive (SXSWi), with sessions and keynote speakers that takes place before the music portion begins.

The SXSW event has grown substantially over the past few years, but no portion has grown quite as rapidly as the interactive portion, which experienced a 36% increase in attendance to 19,396 badge holders. This doesn’t even include attendees solely to the music and film portions of the event, which had led to discussions that SXSW as a whole is growing too large for its hometown of Austin, TX to handle and registration restrictions may need to be put in place for future years.

While the focus of the interactive portion is primarily on social media and design, it has brought prominent attention to and has had critical involvement in the success of such social media tools as Twitter in 2007 and Foursquare in 2009.

So what are some findings retailers and marketing professionals can take away from SXSWi? Here are five key takeaways…

1) QR Codes are not just a fad from overseas, they’re here to stay

QR codes, or encoded barcodes which contain texts or links readable by smart phones, were found everywhere and anywhere throughout SXSWi. Popular in Japan and South Korea but slower to take off in the U.S., it appears QR codes have finally broken into the mainstream as more and more people upgrade to newer phones with the ability to scan QR codes. Some marketing materials at SXSWi contained small QR codes and others simply put a huge QR code on a banner and called it a day. While the latter may be a little less practical for traditional marketing, it was increasingly clear that adopting and utilizing QR codes and creating associated web content to integrate with the codes is something retailers and marketers should look at addressing sooner rather than later.

2) Sometimes people don’t like to log-in to help the community

Chris Poole, founder of the controversial site 4chan and canv.as, was one of the keynote speakers at SXSWi and one of the topics he addressed was the “lurkers” who make up most of the visits to sites and how to engage them further. One method he mentioned was to increase the ease of how the “lurkers” can contribute content and opinions to communities and how once someone contributes they are more likely to contribute again. Taking this a step further, if retailers were to integrate such content as polls and real-time “shout boxes” into their web content it may help to “break the ice” and get some of the “lurkers” to contribute to other aspects of the site, be it conversations, reviews, or even purchasing.

3) Personalize brands on all levels to enhance the customer care experience

I was attending a panel discussion on the importance of “brand power” and one of the things addressed which really resonated with me was how customizing the message and experience with social media customer care can really create brand loyalty. Brands should try to get to know their “regular” contributors on their social media channels as they can be useful allies and brand representatives shouldn’t take themselves too seriously to help facilitate conversation. For more traditional customer care methods, finding a common interest over the phone such as similar location or product discussion (when appropriate) can not only help to create a conversation but also makes it more likely to have individual customers utilize customer care methods as they move forward with the brand.

4) Keep your brand agile and don’t be afraid to try new things

Brian Walker of Forrester has recently coined the phrase “agile commerce” and a similar message resonated throughout SXSWi regarding how to move forward with the constant evolution of technology. Retailers can use social media channels not only to communicate with their customers but also monitor industry and competitive news to see which direction their industry is heading in and how to start moving in that direction. While risks are associated with trying new channels for communication and technology, if successful the experience obtained by “being their first” can be invaluable and a difference maker between two similar retailers for years to come.

5) Control as much of your online presence as you can

Not only is monitoring conversations important, but so is monitoring content. There are many sources outside of eCommerce sites which can affect a customer’s decision to visit your site, let alone make a purchase from it. One of the most prominent sources is Wikipedia, which receives hundreds to thousands of unique visitors each day for pretty much every major brand around the world – and while some retailers may dismiss the content on Wikipedia as being out of their control, it really isn’t. The Wikipedia community is a very strong, tight-knit community of passionate Wikipedians who love to contribute to the site and hold fellow contributors to a high standard. If a brand is not happy with the way their Wikipedia page looks, be it for presentation or inaccurate information, they can contact the Wikipedia Community and attempt to connect with an experienced Wikipedian who can correct any discrepancies – just make sure you have a link for them to cite with the accurate information!

That’s it for my recap of SXSWi… if you were there and had a key learning of your own or if you weren’t there and just have something to add feel free to leave a comment below!

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Native eCommerce Apps – Effective or Excessive?

Posted on February 2, 2011 at 2:58 pm

With the evolution of the smart phone, optimizing your eCommerce site for mobile devices just makes sense. Did you know that an estimated 73.3 million people in the United States alone own a smart phone? A statistic even more impressive is that approximately 70% of those people have downloaded at least one “native” app on their phone. A native app is an application made specifically for and installed on a single device or operating system, hence why if you download the same app for an iPhone and Android device they probably will look similar, but usually they aren’t exactly the same.

But are apps really the “next big thing”? According to a study by Scene7 and Keynote Services there may still be some apprehension surrounding mobile apps, with two-thirds of respondents preferring to utilize mobile sites instead of apps for their mobile needs. Although respondents reported similar satisfaction levels and spent a similar amount of time on each medium, there was large discrepancy on which medium respondents preferred to use for specific tasks. Two-thirds of respondents preferred mobile sites for mobile commerce over native apps – but apps were favored for games, social media, maps and music.

Is this an anomaly? To take a closer look at the difference between apps and mobile sites, I asked a few questions to Gary Lombardo, the mobile commerce marketing manager at our end-to-end partner Demandware.

Gary, what are some of the “must have” features retailers are requesting to have in their mobile apps?

Examples of common “must haves” are: Catalog, Pricing, Promotions, Coupons, Search, Navigation, Product Details, Static Image Delivery, Checkout, Ship to, Tax, Privacy Policy Links, Site Management, Inventory, Slotting, Branding… there are a lot.

Quickly becoming “must haves” for certain retailers (depending upon segment) are product reviews, recommendations, wish lists, bar-code scanning, integrated mobile coupons/offers, and social shopping capabilities.

How do you think the landscape of mobile applications will change in the next 5 years? What should retailers prepare for?

Native mobile apps are actually becoming less important for retailers and the mobile web will become increasingly more important. Selected retailers should have a native app if their consumers use them in the interim, but plan for native app functionality on the mobile web as technology converges.  We are currently evolving Demandware Mobile to reflect this trend. It’s one of the major mobile trends retailers should be planning for in 2011 and beyond.

What advice would you give a retailer venturing into the mobile app market for the first time?

Make sure mobile is an integrated part of your overall commerce strategy and not an isolated channel.  With that said, make sure mobile is viewed as an important strategic investment for the company and not as a “one time” thing. Have clear and measurable goals and be ready to adapt and optimize your strategy as the market evolves. If you decide a native app makes sense, make sure it’s designed in a way that your consumers will want to use it and the app is on devices that they use. Also, make sure you proactively promote your mobile efforts—put signs in-store, promote mobile on your traditional website, on other sites, etc… this will increase the likelihood of consumer adoption and success.  Demandware actually just recently released a whitepaper on the success factors for mobile commerce which could be used to understand and help a retailer get started with mobile commerce, whether or not the retailer chooses to utilize native apps.

As you can see from Gary’s comments, maybe the Keynote Services study is pretty accurate after all and an app is not a requirement for retailers to be successful in mobile commerce. It appears as if the development of native apps should be done more on a “case-by-case” basis, based on the target audience of the retailer and how this audience interacts with a retailer’s products.


Thanks Gary for your contribution and feel free to share your thoughts on mobile applications below!

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