Key features of mobile commerce including push notifications, personalization, chatbots and voice search

Understanding Mobile Commerce in a Connected World

The exponential acceleration of technology; the transition to a post-PC world
and the shift from a document-based web to a social and services-based web;
a generation of multitasking and real-time has made everything related to
mobile advance faster. This couldn’t be any different for m-commerce, which is
advancing rapidly.
The quickest answer is to start with what’s already known. If e-commerce is
electronic commerce, purchasing online, then m-commerce is mobile
commerce, purchasing on mobile devices.
However, what’s the difference between the mobile web and the desktop web
other than the device used? And if we understand that the web is the same,
what then is the difference between e-commerce and m-commerce?
The problem is that our eyes are on the device. If we focus only on this, then,
in fact, m-commerce becomes e-commerce done on mobile devices. But
“mobile” isn’t about devices. It’s about the consumer on the move. It’s about a
mobile audience.
Just as mobile marketing is marketing done for consumers on the move, mcommerce is commerce in a mobile context.
When we include the mobile context, we begin to encompass situations such
as:

  • The use of mobile coupons to drive traffic to stores
  • The use of price comparison apps in-store
  • Searches done on the mobile web
  • The use of QR Codes at physical locations
  • Purchases through apps
    Therefore, for a more precise definition, we propose that m-commerce is the
    use of mobile tools and tactics both to create a new sales channel and as an
    integral part of the user journey in existing sales channels.
    Mobile Commerce Tools and Strategies
    When we talk about mobile commerce tools, we are referring to the set of
    technologies available for interacting with smartphones and tablets and which
    can be applied with positive returns to commerce actions.
    Tools
    Applications
    Development of applications (apps) for use on the various available platforms
    — iOS, Android, Windows Phone, Blackberry — with the objective of driving
    sales from the app itself or in-store.
    Mobile Websites
    Development of websites adapted to the mobile environment with the objective
    of driving sales from the website itself or in-store.
    Important: Just because we can browse the web via smartphones doesn’t
    mean that a standard website is useful for a consumer on the go.
    It’s important to remember that there is no such thing as a mobile web. There
    is only the web accessed by consumers “on the go,” through devices with
    smaller screens and in a variety of contexts. A standard website will offer a
    poor user experience and low conversion rates. Well-adapted adaptation to the
    mobile environment will improve the experience, generating better results.
    Interactive SMS
    The use of SMS messages, both in push format (SMS marketing to a registered
    user base) and in pull format (using a call-to-action to initiate interaction with
    the consumer), are an efficient tool for driving traffic to stores and informing
    about promotions and offers. The use of SMS must comply with local and
    carrier regulations.
    Push Notifications
    These are notifications generated from mobile applications and that appear on
    smartphone screens. Notifications have effectively replaced the use of email
    marketing and SMS as a form of push communication.
    This happens because:
  • They are delivered to a consumer who has already expressed a desire
    to interact with the brand (by downloading the app and authorizing the
    receipt of alerts)
  • They can be adjusted according to user preferences
  • They can also be adjusted according to the context, location and time to
    ensure greater relevance
    Mobile Coupons
    Primarily using SMS as a delivery method, they can also be delivered via push
    notifications.
    Mobile coupons have a high conversion rate because they are permanently
    with the consumer, on their cell phone.
    Geofencing
    Geofencing is the definition of a perimeter around a commercial establishment,
    where any consumer within this perimeter can receive commercial or
    promotional messages aimed at driving traffic to the store.
    These messages can be sent via:
  • Apps
  • SMS
  • USSD (a carrier-specific protocol)
    Consumer identification and location can be achieved through:
  • GPS (in the app)
  • The carrier’s network
    Example: A consumer passes by a coffee shop and receives a discount coupon
    for that coffee shop.
    Recognition via Social
    The use of QR Codes and Image recognition are ways to provide more
    information to consumers, improving their shopping experience and even
    enabling purchases based on this interaction.
    Tactics
    Marketing Based on Store Visits
    When consumers enter a store, they can receive benefits for:
  • Having the app on their smartphone
  • Having a mobile coupon
  • Scanning a QR Code
  • Simply being close to the store (geofencing)
    Goal: Use the smartphone to generate in-store sales.
    Messaging Strategies
    SMS and push notifications both messaging strategies are included with the
    aims to drive immediate sales through offers and promotions. And when the
    consumers are ready to purchase, the retailer is prioritized.
    High residual recall rate: Most smartphone messages are saved for a more
    opportune moment instead of being deleted.
    Promotional Actions Linked to Store Location
  • Geofencing leverages location as consumer context.
  • Not everyone in the area is there to buy, so message refinement is key:
    o Pre-obtaining opt-ins
    o Using location to respond to impulsive behaviors
    Loyalty Initiatives
  • Downloading an app expresses a consumer’s strong connection to the
    brand.
  • The brand gains permanent presence on the user’s smartphone.
  • Treat the app like a loyalty card:
    o Use it for rewards and engagement
    o Treat app reviews as customer service issues
    The Mobile Commerce Journey
    Mobile commerce can serve as:
  1. A new sales channel
  2. A new part of existing channels, with the aim of increasing sales
    Thus, we have two distinct paths:
  • Real World (In-Store Actions)
  • Digital Journey
    Mobile vs. PC: A Key Distinction
    Mobile is:
  • The link between digital and real
  • The connector between moments in a sales story
  • Present beyond just the moment of financial transaction
  • A tool to ensure efficiency and low friction in brand-consumer interactions
    M-Commerce in the Real World: “In-Store”
    Consumers are entering stores equipped to disrupt traditional purchase
    processes.
    Mobile Disruption Across All Purchase Stages:
  1. Need Recognition
  2. Search for Information
  3. Evaluation of Alternatives
  4. Purchase
  5. After-Sales
    Smartphone use can intervene at any stage.
    Examples:
  • Messaging strategies (push notifications, SMS) and mobile coupons aim
    to influence Stage 1.
  • Stages 2, 3, and 4 can now happen within the store, at the same moment.
  • Consumers rely less on salespeople and more on:
    o Friends
    o Review websites
    o Information from the stores themselves
    Competitors:
  • Apps most used by in-store consumers:
    o Amazon
    o Google
    o Red Laser (code reader and price comparison)
    o eBay
    Where are the retailers?
    Retailers must integrate mobile into the in-store experience to:
  • Drive sales
  • Increase loyalty
  • Gain insight into consumer behavior at the point of sale
    M-Commerce: The Digital Journey
    Mobile and PCs are both part of a single digital universe, but they differ from
    another and therefore needs different planning.
    Key Differences:
  1. Device Types:
  • Tablets:
    o “Lean-back” devices
    o Designed for experience, engagement, and contemplation
  • Smartphones:
    o “Lean-forward” tools
    o Designed for action, utility, and decision-making
    o Primarily used during moments of need
  1. Platforms:
  • Apps vs. Web (Mobile Sites)
    o Mobile web: Place of discovery via search
    o Mobile apps: Indicate trust and interest
    Mobile Web Behavior:
  • Main entry point: Search
  • Main interface: Search
  • Used when:
    o Seeking general information
    o Searching without specific objectives (e.g., looking for a type of
    restaurant, not a specific one)
    Mobile search rankings are critical — even more so than on PCs.
    Mobile App Behavior:
  • Downloading an app is a trust signal
  • The app should:
    o Serve as a sales platform
    o Function as a loyalty program
    o Offer features that build retention
    o Be useful inside your store—or a competitor’s

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