Mobile Commerce Platforms continue to gain Traction but Improvements needed to push mPayments’ Acceptance
A joint national study from Sybase 365 and the Mobile Marketing Association (MMA) revealed that 87% of consumers in the US will use a mobile device to help make purchase decisions this holiday season. Well, although the survey has been in the US, we thought it might be of interest to our readers in Asia as a benchmark and evidence that our global society is going mobile.
If 50% of consumers in this survey state to make a purchase via their mobile devices and 61% are more willing to make mobile payments with improvements in place; there’s no doubt that mobile will become the main tool for purchases in the near future.
According to the joint national survey conducted by the mobile services arm of SAP AG and MMA, mobile devices are playing a more crucial role than ever before in influencing consumers’ shopping decisions at the point of sale and across every stage of the purchase funnel.
This survey of 1,000 adults in the U.S. found that mobile’s influence over consumer shopping behaviors is far greater than it was a year ago. As confirmed in the study, a vast majority (87%) of respondents reported that they will use their mobile device to change the way they shop this holiday season. Additionally, 50 percent of consumers plan to make a purchase with their mobile device this holiday season either through mobile web, apps, at the point of sale (POS) or using SMS/text or voice on their device. Consumers also plan to use their mobile devices for comparing prices, researching deals and coupons, locating product reviews, avoiding long shopping lines, and tracking loyalty points.
In a similar survey conducted by Sybase 365 and the MMA a year ago, 62 percent of respondents said they would use their mobile device to help them make purchasing decisions over the holiday season, thus indicating that consumers today are more eager to use their mobile device as a tool of transaction.
While mobile commerce platforms continue to gain traction in terms of consumer use and adoption, the study pinpoints areas to evolve the overall shopping experience. Sixty-one percent of consumers would be more willing to use their mobile devices to influence their purchasing decisions at the POS if improvements were made to the current consumer experience. Some of the improvements that consumers would like to see include more accurate results that are relevant to their shopping habits and exact location (48%), more secure connections to ensure their transactions are safe (46%) and faster connection speeds in order to obtain immediate results when they are about to make a purchase (38%).
“The results from this survey clearly indicate that we are starting to see meaningful adoption of mobile commerce solutions,” said John Sims, president of Sybase 365, a division of SAP. “While progress is being made, the industry needs to make a collective effort to better educate and inform consumers about pressing issues surrounding mobile payments, such as available technology, security, and usage benefits. This will ensure that consumers are comfortable enough to embrace this extremely pervasive industry as part of their everyday lives.”
Mobile devices are also helping consumers make smarter, more informed purchasing decisions all year round. Forty-two percent of survey respondents reported that information they found using their mobile devices influenced their decision the last time they made a purchase. Thirty percent of consumers reported that the last time they were at the point of sale, they used their mobile device to compare prices or read product reviews and ended up making a purchase from a different physical or online store or purchased a different brand altogether; and eight percent of individuals reported that their mobile device validated a purchase they were already going to make.
“Consumer adoption of mobile will continue to climb as new technology is introduced and evolves. With mobile payment and commerce options expanding, marketers have an unprecedented opportunity to leverage mobile along the path to purchase and turn awareness into preference and preference into transactions,” said Michael Becker, Managing Director, MMA North America. “The survey results indicate that consumers are ready and willing to use their mobile device not only to search brands, but purchase as well. It is up to the industry to advance the mobile commerce experience and take advantage of this opportunity to engage more meaningfully with consumers. After all, nothing gets marketers closer to consumers than mobile.”
Merchants are also helping to drive awareness of mobile payments. Most significantly, they are leveraging mobile to target customers with loyalty deals and coupons. Nearly half of consumers surveyed (44%) received a deal on their mobile device recently from Amazon, Apple, Best Buy, Groupon, Target or Starbucks.
“The mobile commerce industry still has ground to cover in order to achieve a critical mass. Merchants and marketing executives must learn how to harness the innovative technology in powerful new ways, so that we can see the full potential of this new world,” Sims added.