Driving online sales through mobile cross-channel strategy

2011 will finally be the year of mobile: the array of smartphones available and other 3G/Wi-Fi devices is growing by the day, decent mobile broadband speeds are now widely provided, and access to the mobile internet has become affordable.

The maturation of the mobile internet means we can now get time and location dependent information via apps or web services. These are being widely adopted and touted out as major selling points for smartphones. As a result, online behaviours have started to shift, with some of the tasks that were traditionally reserved for the desktop – such as checking emails, using social media or banking online – now being performed on handsets.

When it comes to online retail, mobile devices will occupy an equally predominant position. But in my opinion, the revolution poised to happen will not so much concern whether we can buy from a handset but rather how we choose to do it. A major barrier to making purchases from a handset for many is security. Although this is slowly improving, the perception of mobile ecommerce security is still low. Many of us are not very clued up when it comes to assessing online security risks and the prospect of paying from a small handset in public does not always appeal. Moreover, buying online from a desktop computer is generally more convenient: there’s more room to view on the screen, more reliable connection speeds, more perceived security and easier and quicker navigation. And what purchases cannot wait for access to a desktop computer?

In the coming years as users become more mobile-savvy and mobile payment systems develop, online revenues stemming from mobile purchases will undoubtedly boom. But profit is not what I believe retailers should focus on just now. Instead I think they should be looking at how people use the mobile internet prior to buying. I believe there will be massive growth in mobile device usage for pre-purchase activities. Pre-purchase activities might entail anything from looking up prices to reviewing product specifications, comparing products or checking customer reviews.

A recent study from ForeSee on mobile retail showed that increasing numbers of people are accessing retail websites or apps from their phones. However, 30 percent of web shoppers use their phones to investigate products and make decisions, compared to just eight percent of online shoppers who have made purchases from their phones. Customers are increasingly using mobile devices to inform their online purchases, as well as using the mobile web while shopping in bricks-and-mortar stores. More than 10 percent of shoppers use their phones to visit the store’s own website or app, visit a competitor’s site or app, or access comparison websites.

These findings highlight two emerging facets of online retail:

Firstly, web platforms that are tailor-made for mobile devices (mobile-friendly sites, mobile sites or apps) should become an essential part of any online retail strategy. Customers increasingly use these new channels to make decisions and inform their purchase. Websites unable to provide clear information to mobile visitors may exclude themselves as customers choose to buy where they get actionable information.

And secondly, the mobile web is increasingly being used in direct connection with offline channels and can strongly influence not only online but also offline sales in that respect. When the mobile web is consulted in bricks-and-mortar stores, a customer visit to the store has the potential to become experiential. Creating ‘shopping experiences’ has been the key differentiator in the marketplace in recent years, and reinforces the need for an adequate cross-channel digital strategy.

2011 will be the year of mobile. Mobile users are ready and waiting for retailers to make it happen by making the most of the latest trends and technology. Success will fall upon those who most effectively combine mobile retail and social media strategies – ‘social commerce’ being the other burning topic of the year…

This post was written by Xavier Klingenfus