Mobile Payment Magazine

Retailers Increasing Mobile and Social Sales and Marketing

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In an effort to better serve multi-touchpoint, always-on, and empowered consumers, a growing number of retailers are experimenting with mobile and social initiatives — some that are paying immediate dividends and some that are still in the speculative phase.

According to Forrester Research, 91 percent of retailers currently have a mobile strategy in place or in development (up from 74 percent a year ago). Additionally, 72 percent of retailers say they will increase their spending on social networks this year over last year.

The report, entitled “The State Of Retailing Online 2011: Marketing, Social, and Mobile,” surveyed 68 companies, and was conducted  by Forrester Research Inc. for Shop.org.

Mobile

Retailers report that 21 percent of all mobile traffic is coming from tablets, amazing considering the iPad was launched barely a year ago.

Still, the overall amount of mobile traffic and revenue has not increased dramatically, suggesting that investment levels in site optimization may still be inadequate. For example, 48 percent of retailers report having a mobile-optimized website; 35 percent have deployed an iPhone app; and 15 percent offer an Android app and an iPad app, respectively. Challenges for retailers include differentiating the consumer experience on a tablet versus a smartphone and figuring out features and functionality in dueling app/mobile Web ecosystems.

“After spending the last few years learning how to capitalize on social media and new mobile technologies, one of retailers’ main focuses right now seems to be leveraging the tremendous popularity of tablet devices, such as the iPad,” said Shop.org Head of Research Fiona Swerdlow. “As sales channels continue to blur in retail, companies are creating mobile apps that make their brands seem current, entertaining, or fun, while at the same time creating a unique opportunity to connect with more shoppers than ever before.”

Social

Compared with past years, social networks surfaced higher as an investment area among retailers. Social networks ranked fourth on the list of successful customer acquisition sources, up significantly from last year. Yet the ROI associated with social is muddy: 62 percent of retailers said the returns on social marketing strategies are unclear, and nearly the same percentage said the primary ROI from social marketing is listening to — and gaining a better understanding of — customers.

“The data indicates that significant investments in social and mobile tactics will be in place this year,” said Sucharita Mulpuru, vice president, principal analyst, Forrester Research. “Retail executives should have modest expectations for the benefits of social commerce. With regard to mobile, retailers should be working to increasingly integrate features and functionality into the physical store experience. While consumers may not be extensively exploring product information yet, basic store information, transparent pricing, and easy checkout capabilities are likely to be the most pressing opportunities for most sites in the near term.”

“The State Of Retailing Online 2011: Marketing, Social, And Mobile,” is available to Shop.org members and can also be purchased directly at www.shop.org/soro. Forrester clients will be able to access the report as part of their subscription service one month from publication.

Source: Forrester Research

Mobile Payments Enter A Disruptive Phase 2011

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While Near Field Communication has created a lot of buzz in the mobile payment industry, it is clear that there remain significant hurdles before the technology is standard in U.S. mobile commerce.

Forrester Research recently published a report: “Mobile Payments Enter a Disruptive Phase,” excerpted below:

The pace of innovation in mobile payments is accelerating. 2011 is finally the year when Near Field Communication (NFC) will reach the hands of millions of consumers, while initiatives in the digital micropayment arena are accelerating.

While we believe that mass-market adoption of mobile payments is still years away, new entrants — be they mobile operators, alternative payment providers, or online players — have the potential to disrupt existing payment systems. Consumer product strategy professionals should anticipate different disruptive scenarios and determine the likelihood of them happening.

To define the correct strategy, be it defensive or offensive, they need to measure the convenience of their new products and services. And, at a tactical level, they shouldn’t underestimate the need to educate consumers about new payment methods.

Table of Contents

  • Making Sense Of Mobile Payments
  • Mobile Payments Are Disrupting The Existing Payments Landscape
  • Mobile Payments: What Product Strategists Should Anticipate

Recommendations

  • Anticipate Different Disruptive Scenarios And Think About Convenience
  • Supplemental Material
  • Related Research Documents

More information: Forrester Research.

Retailers See Huge Opportunities in Mobile

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With the explosion in consumer usage of smartphones, retailers are moving forward their mobile sales and marketing plans.

According to a recent Forrester Research study, nearly three-quarters (74%) of online retailers either already have or are developing a mobile strategy. One in five boasts having a fully-implemented mobile strategy in place already. The survey of 109 companies is part of “The State of Retailing Online” research series, which provides eBusiness professionals with an annual industry benchmark for marketing and business investment and activities. [Read more…]