M-commerce: communicating with the mobile shopper

Textlocal’s new Mobile Customer Experience Report, entitled and focused on communicating with the mobile shopper, reveals some interesting and forward thinking results to shape the actions of retailers in maximising growth and customer engagement, especially in the run-up to the impending festive season.

In this white paper there is a specific focus on the retail sector and how companies can use an opt-in database to drive ROI in the burgeoning m-commerce opportunity, as m-commerce in the UK is a multibillion pound business that is being lauded by retailers as a means of extending their engagement with customers beyond the high street, traditional opening hours and away from the confines of the home using a PC or laptop.

An increasing trend
According to mobilesquared data, there are 29.41 million m-commerce users in the UK now (or 34% of total mobile subscriptions), increasing to 38.38 million in 2016, accounting for 45% of total mobile subscriptions.From notifying customers about upcoming sales and promotions to facilitating loyalty schemes or confirming delivery dates, there are many ways that retailers, and indeed many other organisations selling direct to the public, will benefit from adding mobile to their communication and transactional channels. Are you currently making the most of the opportunities that mobile marketing offer?

The future is mobile
Our research outlines clearly the future of mobile shopping and the impact that individual behaviours and attitudes will have on this consumer option. The encouraging news is that the growth that we have seen in m-commerce, in line with the expansion of the smartphone market, is only set to continue in the future. As consumers seek convenience, simplicity and speed in their shopping experiences they will dedicate a greater percentage of their monthly spend to mobile shopping.

The average m-commerce user will spend £224.75 in 2013 and £392.42 in 2016. Or to break that figure down, the average m-commerce user will almost double their monthly spend between 2013 and 2016, from £18.73 to £32.70, respectively. This information will define and shape the future marketing strategies of many businesses as resources and attention is placed on ensuring an effective and desirable customer journey when purchasing on a mobile phone.

Festive season growth
The 29.41 million m-commerce users across the UK are yet to generate £1.1bn in mobile transactions. More accurately, between 1 November and Christmas Day the UK’s m-commerce users will spend on average £978m worth of mobile transactions.

Retailers will be targeting 2.17 million retail opt-ins in the UK on a weekly basis between November 1st and Christmas Day, with a peak of 3.7 million people in Week 49. This activity will not only drive sales and brand engagement during the run up to Christmas, but will also create an opportunity for new customer acquisition on a long term basis – if nurtured and communicated with correctly, the customers that you gain during this period may return to you not only every future Christmas, but potentially every other season of the year also.

In addition, although this data is focused on retail, the opportunity for the promotion of m-commerce and business expansion is relevant to many other sectors during the festive countdown, such as hospitality, travel and entertainment, in line with traditional festive activities.

What is evident from this research is that mobile transactions show no signs of slowing any time soon, and as consumers become increasingly familiar with shopping using their mobile phone, so the demand for all businesses to provide this option will increase. As the forecasts have already highlighted, the good news is that 63% of people expect to be doing more shopping via their mobile devices over the next couple of years. It really is an exciting time for businesses, and mobile overall.

By DMA guest blogger, Darren Daws, MD, Textlocal sits on the DMA Mobile and Connected Marketing Council

Read the full Mobile Customer Experience Report – Communicating with the mobile shopper