M-commerce is important because it provides businesses with a powerful tool to reach consumers and drive sales in a cost-effective, personalized, and convenient way. Additionally, it allows businesses to gather valuable data about consumer behavior and preferences, allowing them to deliver personalized product recommendations and targeted marketing campaigns that resonate with individual consumers.
Mobile devices provide consumers with greater convenience, flexibility and easy access to online shopping from anywhere at any time.
What is m-Commerce?
m-Commerce (mobile commerce) refers to the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets. It enables consumers to make transactions using their mobile devices without the need for a computer or a physical store.
m-Commerce has become increasingly popular due to the widespread adoption of mobile devices and the convenience they offer. With the rise of mobile payment solutions, such as mobile wallets, consumers can make payments for products and services directly from their mobile devices.
m-Commerce can be used for a wide range of transactions, including purchasing physical goods, digital products, and services such as booking travel and buying event tickets. It also allows businesses to reach customers anytime, anywhere, and offer personalized deals and promotions to boost sales.
M-Commerce Purpose and Goals
The purpose and goals of m-Commerce can vary depending on the business and industry, but here are some common objectives:
- Reach customers anytime, anywhere: One of the primary goals of m-Commerce is to enable businesses to connect with customers on their mobile devices, allowing them to shop and make purchases at any time and from anywhere.
- Enhance customer experience: m-Commerce can improve the customer experience by providing convenient, easy-to-use mobile shopping platforms and personalized deals and promotions.
- Increase sales and revenue: By leveraging the popularity of mobile devices, m-Commerce can help businesses increase sales and revenue by offering customers a convenient and accessible way to shop.
- Expand customer base: m-Commerce can enable businesses to reach a wider audience by making their products and services available to customers who prefer to shop on mobile devices.
- Improve operational efficiency: By streamlining the purchasing process, m-Commerce can help businesses save time and resources and improve operational efficiency.
- Offer new revenue streams: m-Commerce can provide businesses with new opportunities to generate revenue, such as through in-app purchases, mobile advertising, and mobile payments.
There are various m-Commerce platforms available for businesses to choose from, each with its own unique features and capabilities e.g. customization options, pricing, and ease of use. Some of the most popular m-Commerce platforms:
- Shopify: A leading e-commerce platform that offers a range of mobile commerce features, including responsive mobile designs, mobile-friendly checkout, and mobile app creation.
- WooCommerce: A WordPress plugin that enables businesses to create mobile-friendly online stores and offer mobile payments and mobile shipping options.
- Adobe Commerce (former Magento): B2B and B2C customers on a single eCommerce platform that provides businesses with a range of mobile commerce features, including mobile-friendly design, mobile checkout, and mobile app creation.
- BigCommerce: A cloud-based e-commerce platform that offers mobile-friendly storefronts, mobile checkout, and mobile app integration.
- Salesforce Commerce Cloud: A cloud-based platform that offers mobile-optimized storefronts, mobile app development, and mobile marketing tools.
- Squarespace: A website builder that offers mobile-responsive templates, mobile-friendly checkout, and mobile app integration.
- PrestaShop: An open-source e-commerce platform that offers mobile-friendly storefronts, mobile checkout, and mobile app development.
Customers Benefits of m-Commerce
There are several benefits for customers – include greater convenience, speed, personalization, accessibility, security, and incentives for loyalty – who use m-commerce to make purchases or engage with businesses:
- Convenience: M-commerce allows customers to shop and engage with businesses anytime, anywhere, using their mobile devices. This eliminates the need to visit physical stores or be tied to a desktop computer, providing greater convenience and flexibility.
- Speed: M-commerce allows customers to make purchases and engage with businesses quickly and easily, with just a few clicks or taps. This can save time compared to traditional shopping methods.
- Easy to compare prices: In just a few taps or clicks customers can compare prices quickly across various stores.
- One-Click Ordering: When pre-storing your name, address and card details makes it easy every time you want to make a purchase.
- Personalization: M-commerce allows businesses to use customer data to provide personalized product recommendations, offers, and promotions. This can help customers discover new products and services that are tailored to their individual preferences and needs.
- Accessibility: M-commerce allows customers with disabilities or limited mobility to shop and engage with businesses more easily, as they can do so from the comfort of their own homes.
- Security: M-commerce platforms are often equipped with advanced security features, such as encryption and two-factor authentication, to protect customers’ personal and financial information.
- Loyalty programs: Many m-commerce platforms offer loyalty programs that reward customers for repeat purchases and engagement. This can incentivize customers to return to the platform and make additional purchases.
Products for m-Commerce
Some examples of products that are particularly well-suited for mobile commerce due to their popularity and the convenience of purchasing them on mobile devices:
- Clothing and accessories: Are popular items that people often purchase on mobile devices. Mobile shopping makes it easy to browse and purchase items on the go, and mobile apps can provide personalized recommendations and styling advice.
- Electronics: Such as smartphones, laptops, and tablets are often purchased on mobile devices. Mobile shopping allows customers to quickly compare prices, read reviews, and make informed purchasing decisions.
- Beauty and personal care products: Are popular among mobile shoppers, who can easily browse and purchase products on their mobile devices. Mobile apps can also provide personalized recommendations based on skin type and other preferences.
- Food and groceries: Food and grocery delivery services are increasingly popular among mobile shoppers. Mobile apps can make it easy to order food and groceries on the go, and provide features such as real-time tracking and push notifications.
- Travel and tourism: Travel and tourism-related products such as flights, hotels, and tours are often booked on mobile devices. Mobile apps can provide travel recommendations, flight alerts, and other features to help customers plan their trips.
Types of m-Commerce
There are several types of m-commerce, which include:
- Mobile shopping: This refers to the use of mobile devices to browse and purchase products or services. Mobile shopping can take place through mobile-optimized websites, mobile apps, or social media platforms.
- Mobile banking: This refers to the use of mobile devices to access banking services, such as checking account balances, transferring funds, and paying bills.
- Mobile payments: This refers to the use of mobile devices to make payments for goods or services. Mobile payments can be made through various methods, including mobile wallets, mobile banking apps, and mobile point-of-sale (POS) systems.
- Mobile marketing: This refers to the use of mobile devices to deliver targeted marketing messages to consumers. Mobile marketing can include text messaging, mobile display ads, and mobile app ads.
- Mobile ticketing: This refers to the use of mobile devices to purchase and store tickets for events or transportation. Mobile ticketing can be used for concerts, movies, public transportation, and more.
- Mobile Entertainment: This can include a wide range of content and activities, such as mobile games, streaming services, social media apps, music and video downloads, and more.
- Mobile loyalty programs: This refers to the use of mobile devices to access and redeem rewards through loyalty programs. Mobile loyalty programs can be used to incentivize repeat purchases and build customer loyalty.
Occasions for m-Commerce
M-commerce can be beneficial for businesses on many occasions:
- Seasonal shopping: M-commerce can be particularly effective during peak shopping seasons, such as the holiday season or major events like Black Friday and Cyber Monday. During these times, consumers are often on the go and prefer to shop from their mobile devices for convenience.
- Time-sensitive sales: M-commerce can be a great way to drive sales during time-sensitive promotions, such as flash sales, limited-time offers, and daily deals. Mobile push notifications can be used to alert customers to these promotions and encourage them to make a purchase quickly.
- New product launches: M-commerce can be an effective way to generate buzz and excitement around new product launches. By using mobile push notifications and targeted mobile advertising, businesses can reach consumers with messaging about new products and drive sales.
- Personalized offers: M-commerce can be used to deliver personalized offers and promotions based on consumer behavior and preferences. By analyzing consumer data, businesses can offer targeted promotions and product recommendations that are more likely to resonate with individual consumers.
- In-store experiences: M-commerce can enhance the in-store shopping experience by providing mobile coupons, loyalty programs, and mobile payments. By using mobile technology in-store, businesses can create a more seamless and engaging shopping experience for customers.
Benefits of in-store and a m-Commerce App
Having both an in-store and a m-commerce app can offer several benefits for businesses, as it allows them to reach and engage with customers through multiple channels and improve the overall customer experience. Some of the key benefits of having both types of apps:
- Increased reach: By having both an in-store and a m-commerce app, businesses can reach a wider audience of customers who prefer to shop through different channels. Some customers may prefer to shop in-store, while others may prefer the convenience of shopping through a mobile app.
- Improved customer experience: Offering both in-store and m-commerce options can improve the overall customer experience. Customers can choose the channel that is most convenient for them at any given time.
- Omnichannel marketing: Having both types of apps allows businesses to implement an omnichannel marketing strategy, which involves creating a seamless customer experience across all channels. For example, businesses can use their in-store app to promote their mobile app and vice versa.
- Increased sales: Offering both in-store and m-commerce options can increase sales for businesses. Customers who prefer to shop in-store may also download the mobile app for added convenience, while customers who prefer mobile shopping may visit the physical store for a more immersive experience.
- Data collection: Having both types of apps can also help businesses collect valuable customer data from multiple sources, such as in-store transactions and mobile app purchases. This data can be used to improve the overall customer experience and personalize marketing efforts.
A successful m-Commerce strategy should prioritize providing a seamless and convenient shopping experience for customers on their mobile devices, while also leveraging mobile-specific features and capabilities to enhance engagement and drive sales. Some effective strategies for businesses to consider when implementing an m-Commerce strategy:
- Create a mobile-optimized website or app: A mobile-optimized website or app is critical for providing customers with a smooth and seamless shopping experience on their mobile devices. It should be easy to navigate, fast-loading, and designed with mobile users in mind.
- Offer mobile payments: Offering mobile payment options such as Apple Pay, Google Pay, or mobile wallets can help streamline the checkout process and make it more convenient for customers to make purchases.
- Leverage mobile marketing: Mobile marketing, such as push notifications, SMS messaging, and in-app advertising, can help businesses reach customers on their mobile devices with personalized offers, promotions, and other messages.
- Implement a mobile loyalty program: A mobile loyalty program can incentivize customers to make repeat purchases and engage with the brand on their mobile devices.
- Use data to personalize the mobile shopping experience: Leveraging customer data can help businesses personalize the mobile shopping experience, such as by recommending products based on past purchases, offering personalized promotions, and providing customized content.
- Ensure mobile security: Security is critical for m-Commerce transactions, and businesses should take steps to ensure that customer data is secure and protected.
- Optimize for voice search: With the increasing popularity of voice-activated devices, optimizing for voice search can help businesses reach customers who are searching for products and services on their mobile devices.
Some Best Practices
Here are some m-commerce best practices that businesses can follow to ensure a successful mobile commerce strategy:
- Optimize for mobile devices: Mobile optimization should be a top priority when creating an m-commerce strategy. This includes designing a mobile-friendly website or app, optimizing content for mobile screens, and ensuring fast loading times.
- Simplify the checkout process: The checkout process should be streamlined and easy to use on mobile devices, with minimal form fields and easy payment options such as mobile wallets.
- Leverage mobile-specific features: Mobile devices offer unique features such as push notifications, geolocation, and voice recognition. Businesses should leverage these features to create a personalized and engaging mobile shopping experience for customers.
- Offer mobile-specific promotions: Mobile-specific promotions such as in-app discounts or mobile-only deals can encourage customers to make purchases on their mobile devices.
- Use social media to promote mobile commerce: Social media platforms are often accessed on mobile devices, making them a powerful tool for promoting m-commerce. Businesses should use social media to showcase products, share promotions, and engage with customers on their mobile devices.
- Ensure mobile security: Security is critical for m-commerce transactions. Businesses should ensure that their mobile commerce platform is secure, use SSL encryption, and implement two-factor authentication for payment processes.
- Monitor and analyze performance: Monitoring and analyzing performance data can provide valuable insights into customer behavior and help businesses optimize their mobile commerce strategy.
M-commerce metrics are key performance indicators (KPIs) used to measure the success of a mobile commerce strategy and make data-driven decisions to improve performance and drive sales:
- Conversion rate: The conversion rate measures the percentage of visitors who complete a desired action, such as making a purchase, after visiting a mobile commerce site or app.
- Average order value (AOV): The AOV measures the average amount spent per transaction on a mobile commerce site or app.
- Customer lifetime value (CLV): The CLV measures the total amount of revenue a customer is expected to generate over the course of their relationship with the business.
- Retention rate: The retention rate measures the percentage of customers who return to make additional purchases on a mobile commerce site or app.
- Cart abandonment rate: The cart abandonment rate measures the percentage of customers who add items to their cart but do not complete the checkout process.
- Mobile app downloads: The number of downloads of a mobile commerce app can indicate the level of interest and engagement among mobile users.
- Time spent on site: The amount of time mobile users spend on a mobile commerce site or app can indicate the level of engagement and interest in the products or services offered.
M-commerce benchmarks can vary widely depending on factors such as industry, customer demographics, and mobile commerce strategy. However, here are some general benchmarks that businesses can use as a starting point when evaluating the success of their mobile commerce strategy:
- Conversion rate: The average conversion rate for m-commerce is around 1-2%, although top-performing mobile commerce sites and apps can achieve conversion rates of 3-4%.
- Average order value (AOV): The average order value for m-commerce is around $75-$80, although this can vary widely depending on the industry and product category.
- Customer lifetime value (CLV): The average customer lifetime value for m-commerce is around $400-$500, although this can vary widely depending on the industry and customer demographics.
- Retention rate: The average retention rate for mobile commerce is around 20-25%, although top-performing mobile commerce sites and apps can achieve retention rates of 30% or higher.
- Cart abandonment rate: The average cart abandonment rate for m-commerce is around 60-70%, although this can vary widely depending on the industry and checkout process.
- Mobile app downloads: The number of mobile app downloads for m-commerce varies widely depending on the size of the business and the popularity of the app. Top-performing mobile commerce apps can achieve millions of downloads.
- Time spent on site: The average time spent on a mobile commerce site or app is around 1-2 minutes, although this can vary widely depending on the industry and level of engagement with the content.
M-Commerce Stats and Trends
Consumers’ increased use of mobile devices to shop underscores the imperative for retailers and online marketplaces to leverage mobile devices, shopping apps, social media, mobile payments, AR, and voice commerce. Here are some of the latest stats and trends in mobile commerce:
- Mobile commerce is growing rapidly. According to Statista, mobile commerce is expected to reach $3.56 trillion by 2021, up from $1.36 trillion in 2017.
- Mobile devices are becoming the preferred way to shop online. According to a survey by OuterBox, 79% of smartphone users have made a purchase online using their mobile device in the last six months.
- Mobile shopping apps are on the rise. According to a report by Liftoff, shopping app installs increased by 20% in 2020, with conversion rates increasing by 31%.
- Social media is playing a bigger role in mobile commerce. According to a survey by HubSpot, 771% of consumers are more likely to make purchases based on social media referrals.
- Mobile payments are becoming more popular. According to MoneyTransfers, 43.2% of US smartphone owners use mobile payments. In 2021, this amounted to 101.2 million Americans.
- Augmented reality (AR) is becoming more prevalent in mobile commerce. According to a report by Gartner, 100 million consumers will shop in AR online and in-store by 2020.
- Voice commerce is growing. According to a report by OC&C Strategy Consultants, voice commerce is expected to reach $40 billion in the US and UK by 2022.
- eMarketer study:
- mCommerce Market Share and Size: USA mCommerce sales in 2022 will hit $415.93 billion—which represents 6.0% of total retail sales for the year.
- mCommerce vs eCommerce: eMarketer expect retail mCommerce sales to account for 43.4% of total retail eCommerce sales in 2023, up from 41.8% in 2022.
- Chatbots: According to Invesp, Chatbots can save up to 30% in customer support cost and can help businesses save on customer service costs by speeding up response times and answering up to 80% of routine questions.
- Digital time: According to comScore, the average shopper in the US spends 71% of their digital time on mobile.
- M-commerce market size is predicted to hit $510 billion by the end of 2023.
- About 89% of grocery shoppers use their mobile devices while visiting physical stores.
- Mobile accounted for 61.9% of paid search click share in 2023.
- In 2022, mobile commerce revenue in the US reached $431 billion.
- Almost 80% of users have bought online using their mobile devices within the last six months.
- More than 51% of users prefer mobile web apps to other shopping channels. Customers claimed web apps are convenient and have consistent UI.
- Voice commerce sales are expected to generate $19.4 billion by 2023.
M-Commerce and AI
Artificial intelligence (AI) is helping businesses to provide a more personalized, efficient, and convenient mobile shopping experience for consumers, while also improving business performance and reducing costs:
- Personalized product recommendations: AI algorithms can analyze a consumer’s past purchases, browsing history, and other data to provide personalized product recommendations that are more likely to be relevant to their interests.
- Chatbots and virtual assistants: AI-powered chatbots and virtual assistants can provide customers with instant help and support, answering their questions and guiding them through the purchasing process.
- Inventory management: AI algorithms can analyze sales data, market trends, and other factors to optimize inventory management, ensuring that businesses have the right products in stock at the right time.
- Pricing optimization: AI algorithms can analyze pricing data, consumer behavior, and other factors to optimize pricing strategies, helping businesses to maximize sales and profits.
- Fraud detection and prevention: AI algorithms can analyze transactions in real-time to detect and prevent fraud, helping businesses to protect themselves and their customers from fraudulent activity.
- Visual search: AI-powered visual search technology can allow customers to take a photo of an item they like and find similar products in the inventory, making it easier for customers to find what they’re looking for.
- Voice search: AI-powered voice search technology can allow customers to search for products and make purchases using voice commands, providing a hands-free and convenient shopping experience.
The Future of m-Commerce
The future of m-commerce looks bright, as more and more consumers turn to mobile devices to shop and make purchases. Some trends that are likely to shape the future of m-commerce:
- Increased adoption of mobile payment methods: Mobile payment methods such as mobile wallets, peer-to-peer payment apps, and contactless payments are becoming increasingly popular. As these payment methods become more widely adopted, they will make it even easier for consumers to make purchases on mobile devices.
- Growth of mobile commerce apps: Mobile commerce apps are becoming more sophisticated and feature-rich, providing personalized recommendations, real-time inventory updates, and other features that enhance the mobile shopping experience. As a result, more consumers are expected to turn to mobile commerce apps to shop and make purchases.
- Expansion of mobile commerce into new markets: Mobile commerce is already popular in developed markets, but it is expected to expand into new markets in the coming years. This includes emerging markets such as Africa and Southeast Asia, where mobile devices are becoming more widely adopted and mobile connectivity is improving.
- Mobile Retargeting: This concept extends location-based mobile marketing. This trend targets potential customers contextually instead of putting ads in random places. For example, marketers can send customized ads to their previous mobile app users. Mobile retargeting offers a better ROI than other promotional strategies and is likely to become more prevalent.
- Integration of augmented reality (AR) and virtual reality (VR) technology: AR and VR technology can provide immersive shopping experiences that allow consumers to try on clothing and accessories virtually, visualize products in their homes, and more. As these technologies become more widely adopted, they are likely to play an increasingly important role in the future of mobile commerce.
- Use of artificial intelligence (AI) and machine learning (ML): AI and ML can be used to provide personalized product recommendations, optimize pricing and inventory management, and more. As these technologies become more advanced, they will help businesses to improve the mobile shopping experience and drive sales.
99Firms: Voice Search Statistics