The extensive use of mobile have spurred for last few years. There has been a significant ramification for e-tailers where mobile commerce is responsible for as much as 30% of U.S e-commerce and is expected to grow 300% faster than the traditional e-commerce.
In 2017, e Marketer projects, the share of US mcommerce sales that come from smartphones will grow to 65%—up from 58% this year. Bigger screen sizes, mobile-optimized experiences and faster connectivity are among the many reasons why smartphones are gaining share over tablets.
With all heft numbers, it’s important to see the driving factors behind it.
Mom, Millennial and multicultural are responsible for a major shift in M- Commerce. Research done by Facebook shows that in the United States, Millennials, Moms and Multicultural are responsible for most of the revenue within Mobile Commerce. Millennials tend to use Apps the most (61% download Retail Apps). Facebook says “What Millennials are doing, is what everybody will be doing soon.”
Keeping in mind the glaring fact, let’s look at five trends that is likely to keep M- commerce going in 2017.
Conversational commerce will make advanced progress
The number of users on chat and messenger platforms crossed 2.9 billion in 2015, compared to 2.4 billion social media platform users – building the business case for the point of sale for M -commerce to shift to chat and messaging platforms.
2016 we witnessed chatbot frenzy where people were trying to figure out the tech and adopt it. But, the larger picture was a paradigm shift of user from website to apps. Breaking away from the prevailing tradition typical website purchase, platforms such as Facebook, Google, Microsoft, and Slack are now up for investing in their bot platforms, which will only enhance the space in the years to come.
This said, it is evident that chatbots, messaging app and AI will continue advancing in 2017 and facilitate customers in seamless shopping experience.
Image recognition is gonna lead the show
Imagine, you are out with folks enjoying coffee, just then you notice a beautiful handbag in cafe. You click a picture of it with given mobile application in your smartphone and hola- it takes you to the precise platform where you can buy it from. This way e-tailers are actually making the most from the always-glued tech of the decade.
The cameras are now serving on the multipurpose front. It is a strong marketing tool when connected to MIR ( Mobile Image Recognition) apps and scanned for buying products. It also make wonders for Snap-buys, as Scan-to-buy options are already letting customers directly make purchase from catalog, ads and in-store signage.
The idea still developing, we already have Google’s Goggles (a functional tool for Android-powered devices) can be used to scan bar codes of international merchandise and popular logos.
Needless to say, With the blend of MIR apps and evolving social media platforms, the new service, snap-buy is likely to set strong foot across the industry as it is already leading to seamless purchase experience through fine blend of phone cameras and image recognition.
Augmented reality (AR), wearable technology and location-based programs
Augmented reality (AR) is going to play an important role in the shaping this industry. Configuring an app with your mobile camera, shoppers can actually try products without touching it. Mobile apps with Augmented Reality are likely to improvise shopper’s experience and make it more interactive.
One such instance is,
L’Oréal Professional are now using AR tech to show hair salon owners display stands for hair care products. The sales rep can now chose a 3D model of their product in Augmented app and can mimic life size products in augmented reality in their customers’ salons.
This aids customers in knowing how the particular product would look without actually trying it.
Hence it is viable to say, 2017 will indeed see a significant rise of AR apps and introduce a new aspect of retail industry
Source: Daily Mail UK
Improvisation in Point of sales and Mobile sales will gradually enhance
Mobile point of sale (mPOS) technology promises to continue to transform the customer’s shopping experience in 2014 and beyond. Gartner forecasts an mPOS market valued at $617 billion with 448 million users by the end of 2016, representing 42% annual growth.
Point of sales heavily depends on shifting customer behavior and the store system. And, It hasn’t gone unnoticed how retailers are adapting to card chip readers. And with new standards set for credit cards, retailers are now adapting to POS system and making mobile payment easier than cards. Also early 2016 did see big shots Apple pay, Starbucks, gearing up for in-app payments and reaching out to customers easily, enhancing their purchase experience.
Oliver Manahan, MasterCard’s VP of Advanced Payments, believes that customer who uses such hand-off medium ends up spending around 54% more than the one who pays via traditional means.
Personalization for Push
Push notification are important medium to reach out to your consumers, globally on so many levels. Retailers, businessman, B2B wholesalers are leveraging this medium to connect to millions at a time and prioritizing their purchase experience. One of the glaring evidence of its popularity is: push messages tailored to the customer increased the opening rate by almost 300%, and in some sectors even by 500%. (Study Urban Airship).”
Embedding personalization in your push notification is one of the many ways to connect to your customer on a personal level and letting them know how your brand understands them and can relate to them as individuals, not as a mere contact number in your mass mailing list. 2016 already saw brands reaching out with push notifications to their loyal customers, however, it will be more precise and personal in forthcoming year
Addressing them with their names, knowing their location and displaying their choice of product in push message is likely to take this on another level and help retailers in branding and connecting in the best possible way. 2017 will likely see this evolution of push notification.
M-commerce trends in 2016 have paid off well and are pretty much to continue and evolve in 2017 as well. However, if i have missed any point that you think could be dominating the coming year, do drop it in comments.