Monetizing a Mobile Strategy

2013 really feels like the year of mobile. For real this time. There are so many exciting things going on in the industry that I can’t decide what event or webinar to attend anymore. 

One more positive effect if this mobile madness is that we are finally shifting from the “unknown era” of mobile marketing to the “how-to-make-money” stage, where companies know what to do and what benefits come by implementing mobile marketing initiative, but are looking for activities that can generate revenue as well. 2013 is for mobile what 1998 was for the world wide web. 

With this in mind, I gave my own view point on the subject. Below is the article/post I published on Velti’s blog a couple of days ago and goes through a number of solutions & strategies and their potential influence on a company’s revenue. 

As sitted on Velti’s ‘The Mobile Base ’ 

“If you’re reading this to learn about new, innovative marketing solutions you can implement via mobile, look away now. It’s 2013; we’re all aware of the capabilities and solutions mobile has to offer and how important a mobile strategy is, but what you might not know is how those mobile activities actually translate into revenue.

 

Accounting for a full mobile strategy’s impact on revenue is made difficult by the different response rates users exhibit given the nature of various industries. Looking closely at the various market standards and trends, it’s clear that the right marketing strategy can have a great impact on the revenue; but it’s critical for marketers to realize that mobile marketing is not just about using the right tools, it’s about the context you deliver that tool in that matters and drives revenue.

 

The good news is the industry as a whole has already begun trying to quantify mobile’s impact on revenue. Google has even developed an online calculator tool, Full Value of Mobile, which walks users through a simple process of identifying how mobile affects the purchase decision process based on conversion rates.

 

Let’s have a closer look at 6 commonly implemented mobile marketing tools and the ways they link back to, and positively affect, a brand’s revenue:

 

1. mCommerce Site – the money maker: There’s no need to elaborate on the importance of the mobile website – the fact is it’s the cornerstone of nearly every mobile marketing initiative. A mCommerce site opens a brand’s doors to more consumers and more business. Successful development and positioning of an mCommerce site can increase revenues by 3%. Sales on mobile websites are skyrocketing and for some brands it already accounts for 6-7% of their overall digital sales. If these numbers sound small, do the math for your brand; it will change your perception on the mWeb strategy.

 

2. Mobile Applications – the popular (and powerful) brother of mWeb: Mobile apps are one of the most important revenue streams in the mobile monetization strategy. They are high-tech brand-presence mediums that are capable of anything. While I cannot disclose specific brands, several of Velti’s clients have recorded an increase in sales of approximately 50% when they rolled out their mobile application, with no drop in sales from their mobile web sales.

 

3. Mobile media – the promotional medium: Mobile media works well for brand engagement and positioning, as well as advertising brands and products. However, mobile media makes it a challenge for marketers to accurately track ROI across complex campaigns. Does mobile media link back to revenues? Does it help a brand convert their media spend into actual sales? Yes! Planning your mobile media campaign strategically by taking into account location-based services, targeted apps/sites, retargeting opportunities, real-time bidding and rich-media interactive A=ad units can be linked directly to online or in-store revenue. Based on research by Mobiquiti, 27% of purchase actions after browsing a mobile retail app/site are completed on smartphones. Adding that to your brand’s average click-through rate and your online sales, it leads to a rather noticeable increase of revenue from your digital hub.

 

4. Mobile coupons – taking mobile, offline: Mobile coupons are usually perceived as freebies, a way to trigger excitement or reactive your idle database. That said, there are almost countless forms of mobile coupons, and if utilized correctly, they can have a great impact on a company’s revenue. It is not just what you provide in a coupon, but also how you provide it, the time, the place and of course the tracking mechanisms you use. For some retailers, effective redemption rates could be as low as 0.9%; for some CPGs it can be 20%; the effectiveness of a couponing campaign varies significantly depending on the campaign’s strategic goal. Marketers need to understand the need for a more targeted mCouponing campaign. Pay attention to the location of your audience and customize your message if needed to drive the most revenue for your brand.

 

5. mCRM – the text based communication: SMS is perceived as a low tech solution. However, a user’s cell phone number is one of the two most important numbers you could have that links back with a client – the other one would be their SSN number. mCRM does not directly drive revenues, but sets up the first step on a successful mobile marketing campaign. Running a mCRM campaign on your social media efforts, for example, can result in the generation of a personalized, targeted and segmented database, setting up the ground for future activities and text-based promotions that link back to sales and revenues.

 

6. WAP-push messaging – a.k.a text-based advertising: It sounds very basic and unattractive. However, this is the most effective way to monetize your previously developed mCRM database. An idle database of XX people can now have an impact on actual sales. Targeted campaigns promoting a retailer’s product or special offers on the App or the mSite drive additional traffic to the mobile destination. Research found that SMS alerts with mobile links see a 19.3% click through rate to a website or mobile app, further adding to the overall mobile revenue streamline as noted above.

 

The tools listed above are just some of the ways that show how mobile only campaigns can have a direct effect on a company’s revenue. However, they are not the only tools that do so, as different solutions have different impact on different industries. What marketers need to consider when investing in mobile marketing campaigns, is not what you do, it is how you do it that produces effective results.”

 

mVideo Advertising

Hello world! I know it has been a while since my last post – last year (!?!?) – but I have been up to the eyes with work since then. 2013 looks like it is a very promising year for the world of mobile. It sounds like a joke since we have assigned the title “The Year of Mobile” to the last 3 of them. But this year the industry is filled with numerous opportunities. Take mobile video for example and try to count how many video startups are out there. That must mean something, right? 

But I am not here to talk to you about video sharing and multiscreen solutions. I am not a specialist any how. What I am trying to identify and summarize are the opportunities for the mobile video advertising… 

 

Background Overview & The Market

Even though video advertising has a long track record of success on both TV and the World Wide Web, it has been slow to come and be established to the mobile medium. In the past, mobile video advertising faced many technical and creative challenges for advertisers and marketers because of the device fragmentation, the inability of various devices to support rich media, true scale, internet connection speed and the ability to drive and deliver an effective message to the end user. 

These issues derived from the hyper-fragmentation of hardware and software support across multiple handsets and operating systems.  With hundreds of differentiated mobile handsets in the marketplace, delivering compelling advertising content with scale has been proven difficult since there is the need to create the video in four (4) different formats, nearly impossible.  

Lately, and with the introduction of HTML5 since over a year, developers and advertisers have been presented with the opportunity to provide and deliver mobile video content to various handsets. Advertisers have become familiar and begin to develop mobile video creative ad units that are truly scalable while at the same time are solving fragmentation issues with the various devices.  HTML5 seems to be a viable solution since the majority of smartphone devices and handsets support these experiences.

 

Mobile Video Advertising can be broken down into three vehicles of deployment:  

Single Stream – Ad Stitching

Single stream ad stitching is primarily utilized across mobile web sites and other mobile web destinations.  This method of video ad delivery is the most efficient way to reach scale across a large percentage of devices that support video.  

Single stream video ads cannot support interactivity or click-thru destinations since the stream prompts the device’s native player to open up in full-screen mode, apart from the Android devices. Additionally, in order to deliver video ads across all mobile devices the ads need to be stitched against content and delivered to the mobile video player in one stream.

Dynamic Ad Insertion – Non-Stitched

iOS apps can support dynamic ad insertion because the iOS SDK enhances developers with access to customize the native video player.  These players can support dynamic ad calls in pre- or mid-roll positions.  It’s much easier to control the video ad experience within an iOS app than any other web destination. 

In order to support dynamic ad insertion in a mobile web environment, a HTML5 video player would need to be developed directly into the player.  In addition, the HTML5 player would only be supported by a small number of handsets.

HTTP Live Streaming – Best Experience

HTTP Live Streaming is a video and audio protocol mainly used by Apple. It delivers adaptive bit rate streaming to iOS devices including Apple TV and Mac OS X.  A notable drawback appears when a user is streaming video content on a 3G network. In this case the stream dynamically increases or decreases video and audio quality to support the appropriate speeds of that connection.  HTTP Live Streaming also provides for media encryption and user authentication over HTTPS, allowing publishers to protect their work. The HTTP format is highly used from advertisers and marketers on their mobile video campaigns, as it can be supported on various devices and operating systems.

mVideo Advertising in Action

Since the introduction of HTML5 the mobile video advertising area has begun bringing in the industry a number of worthy and competitive companies specializing in the delivery of interactive and engaging scalable mobile video ad units and inventories for applications and mobile websites.

We come across on a daily basis to more and more applications that offer the user the chance to win virtual or sometimes even actual rewards by playing an mVideo advert from a publisher. Users are required to watch the entire video ad unit in order to collect their prize.

Mobile video advertising is a great example of performance based mobile marketing as video ads get charged per click or per video competition. Therefore advertisers and brands get charged when a user completes a full video view or clicks while the video is playing to be redirected to a mobile landing page or download content.

A number of companies have now incorporated mobile video advertising in their platforms and their solution offerings in the form of mobile video pre-rolls and expandable banners. Velti can also support such service providing their clients with a seamless and end-to-end mobile marketing and advertising campaign. 

Tap Joy has also entered the mobile video advertising era through their latest mobile video advertising platform. Mobile application monetization and distribution platform Tapjoy introduced a new mobile video advertising service enabling marketers to sponsor content within popular apps.

Through their platform, consumers can select the ad they wish to watch, which guarantees greater interest and engagement compared to automatically generated promotions. Upon completion of the ad, consumers can choose to follow the brand on Facebook or Twitter, forward the video to friends, visit the advertiser’s website or make purchases directly via mobile device.

An interesting study has shown that the most engaging and viewable videos to completion are the in-app pre-roll ads.

As shown in the chart, almost 90% of mobile video ads are watched between 75% and 100%. Very few customers, at least at the moment, are trying to skip out or skip over the ad. 

Limitations

A major concern with video ads on mobile devices is the completion factor. Most video ads on the internet are not viewed to completion. Another concern is the high inventory of video ads. Some marketers report that there are too many for decent exposure rates. A possible solution to such limitation is for advertisers to offer incentives for completion, such as premium content within apps or games or physical goods, as already mentioned above.

A common problem that falls upon mobile video adverts is the high rate of data consumption. One solution to address such problem is for the mobile companies to provide and come up with better video compression technologies and therefore limit the data consumption for the end user to the minimum. 

Many creative agencies do not hold the technical know-how to develop and serve such campaigns, placing the weight of creative development back onto the publisher or the ad network.  As consumers crave for technology expands, and as content providers demand to keep up with the way users consume their content, advertisers must find the most effective way to deploy and reach their target audience.

Advertisers have already started becoming well-versed and begin to develop mobile video creative that is truly scalable while solving fragmentation issues.  HTML5 seems to be a viable solution since the majority of smartphone devices and handsets support these experiences. Until then, publishers must continue to facilitate proper creative deployment as well as educate clients on industry best practices.

Market Opportunities 

Most mobile users use applications and most of them spend a significant amount of time on their mobile devices. If all applications embed video ads, ads that tried to minimize intrusiveness, then the exposure rates would be significant regardless of how significant or content rich the videos are. Incentivizing them with rewards and enabling them to choose whether to watch the video ad or not or even select the ads to play, increases the chances of the mVideo ads to be watched.

The ability to choose between publishers and videos to be played enables the advertiser to apply a more targeted mobile optimized video campaign. The incentive to provide different rewards based on the content to be watched opens up a new area in mobile advertising, the performance based mobile video advertising age. 

 

4 Ways to Have a Merry Mobile Christmas

Last post for this year and it couldn’t be anything else than the holiday season and the ways brands can potentially engage their consumers via mobile. 

2012 was named the “year of mobile”. Mobile marketing, strategies and tactics evolved during these past 12 months, but only a few tactics can provide this high level of engagement everyone is looking for. 

Below you may see the article I conducted regarding this special season, as sited on Velti’s Blog. 

“Alas–it’s the time of year where holiday shoppers flock the busy city streets and retail stores looking to cram in their holiday shopping. But this time is not just another holiday shopping season–it is very much a mobile shopping year. The signs made their appearance early this year and it is encouraging how encouraging brands and retailers were. The last couple of weeks we’ve noted more and more mobile friendly emails from the likes of Kate Spade, Bath & Body Works and more!

 

According to a report published by IBM, 24% of Black Friday consumers used a mobile device to visit a retailer’s store, 10% up from last year. Cyber Monday was also very promising, as the number of cyber consumers that used a mobile device to access a retailer’s website rose by 70% over last year to reach an overall 18%. And wait—there’s more: total purchases from mobile devices on those dates almost doubled since last year, making up 13% of total online purchases.

 

Looking at the above stats, it is without a doubt that mobile will play (if it hasn’t already) an integral part on the holiday shopping season. But don’t expect consumers to go mobile frenzy in the next few weeks without the right tools and campaigns. Below are 4 tactics and trends to attract consumers in order to have a Merry Mobile Christmas!

 

1. Local & Smart Mobile Ads

Marketers are constantly looking for more engaging and interactive ways to combine location-based advertising with the in-store experience. By successfully combining the click-through action with the in-store experience, brands can move from intrusive to an extension of the overall shopping experience. Take Paul Bakery for example; Paul successfully pushed interactive ad units to all mobile users who visited a search engine on a 1km radius at their Prague store, inviting users to grab a free croissant by visiting Paul “around the corner”. Walk-in consumers flocked the store to create high engagement.

 

2. Mobile in Multi-channel Campaigns

Mobile multi-channel campaigns were the success story of the last two Super Bowls. Shazam did it right as they knew how to engage the TV audience, and helped approximately half of the game’s advertisers link their ads to exclusive songs, car giveaways, and other additional content. Brands who can create strong links between advertising channels will have a significant advantage during the shopping season. The key to success is to enable your consumers to remember your offer after your 30’’ TV ad. Let them interact with you using their most personal device, and carry your brand around with them up until the time they reach your store.

 

3. mCommerce Apps

They are no strangers to the game. But some believe that mobile applications do not provide a holistic picture of a brand or a store and are simply used for product research on-the-go, turning users to the full site version. As Michael Collins, CEO of Joule, said: “Many marketers think mobile is just apps so when their app is less than successful, as many brand apps are, they believe mobile doesn’t work for their company.” That is not the case, however, since more and more retailers have strategically developed user-friendly mCommerce applications, offering consumers the ease of navigating from product to product and finalizing their purchases instantly. A great example of such a user-friendly mCommerce App, also combining loyalty, is Bath & Body Works.

 

4. Social Mobile Campaigns

The power of social networks is well established on marketers’ minds. Consumers now access Pinterest and Facebook Promotions through their mobile device, generously offering brands an ace under their sleeve. And that’s because a social campaign can elevate a mobile promotion. Consumers during the holidays will look for ideas through their social networks, see what their friends “recommend” and share on their social pages. Keeping in mind that a user can now share a story or a picture or even a promotion via mobile, marketers can step up and deliver stellar small screen promotions that will drive passer-byers in-stores. Check out campaigns from Victoria’s Secret and study how well they leverage both social networks to full extent.

 

The four above tactics use something in common: they all focus on providing the right information at the right time, helping consumers progress to the next stage of their decision making process. Mobile is becoming an integral part of our overall traditional shopping experience and if capitalized effectively, in couple of years it should surpass online shopping. Retailers and brands need to realize mobile web is essential and is here to stay.”

 

Mobilize Customer Communications and Save Money

A couple of days ago I wrote a post on Velti’s blog regarding ways on mobilizing your customer communications while at the same time saving money and cutting costs from the price customer call centers. All via SMS communication. And trust me, this is much more interesting that it sounds. 

Below is the article in question as seen in Velti’s main blog. 

As seen on Velti’s Mobile Base: 

“In previous posts, we emphasized the importance of mobile as the channel of choice for consumers, focusing on the advantages that come along when consumers are able to decide how and where they want to interact. We also discussed ways to reduce business costs through mobile and the various advantages of the SMS customer care services that a number of vertical markets benefit from.

In considering the above approaches, it is important to recognize that customers take a holistic view of the companies they choose to do business with. They are looking for quick, easy, and convenient ways to manage their relationships with these companies; and whether or not your company can benefit from such a trend is based on the cost-saving strategy that you will implement. Even if it is not a direct sales opportunity, the mobile approach your company takes influences how customers see your business and their willingness to engage with the offered services; ultimately, customers using these services will save you significant operational costs.

 

Typically, SMS customer care communications are the type of important, time-sensitive, transactional, two-way communication that customers want and expect from a business. With this viewpoint in mind, let’s take a look at a couple examples of programs that can be implemented with SMS.

 

1. Deflecting Operational Costs With Mobile Customer Care

Problem:

Let’s say a large wireless carrier is spending tens of millions of dollars per month on incoming customer service calls from people who have questions regarding their plan usage or wish to make small adjustments to their plans.  These “short” client service calls range from $5-$8 each, and generally involve a customer service representative simply reading account information off of a terminal screen to the caller in order to process their requests. Same goes with the carrier’s IVR call center where the spending is smaller, $2-$1, but yet significantly high and in most cases results in a customer representative coming on the line to assist with the final request. Additionally, such process are also time consuming for both the customer representative and the subscriber.

Solution:

To preserve operational costs and increase revenue by reducing call center volume, as well as provide customers with an additional on-demand contact channel, the carrier also provides a SMS-based customer self-service program that allows their customers to obtain basic account information, such as minutes/data used, account balance, and upgrade eligibility.  The SMS-based service provides users with on-demand access to their accounts 24/7 with a simple request, where the back end system of the Operator automatically retrieves the information required and instantly provides the requested information.

Results:

Users are able to reach out to their carrier with specific requests and retrieve information instantly via an incoming SMS alert, at no additional cost.  The reduction in incoming calls also saves the company millions of dollars per month, and allows customer service reps to focus on more complex customer problems. Additionally, customers are engaged in a 2-way communication with the carrier initiated by them on their own time, place and based according to their needs.

 

2. Reducing Installation Appointment No-Shows

Problem:

Let’s say a large cable/satellite provider employs a large installation and repair workforce made up of both employees and contractors.  Installation and repair services are scheduled via phone, with email and outbound voice calls made to confirm the appointments the day before.  A typical installation appointment costs this company in excess of $50 just for the technician to arrive at a customer’s house.  If the customer is not at home for his or her appointment, the cable/satellite provider is losing money in three ways: (1) the $50+ for the technician’s trip; (2) the opportunity cost of the technician not performing an installation where someone is actually at home, and (3) the lost revenue from the new customer not yet having their service activated.

Solution:

By implementing an SMS-based reminder service, the cable/satellite provider is able to reach more people with appointment reminders, and allow for easy confirmation or re-scheduling–also engaging them in a two-way conversation. The SMS reminders are more effective because they reach a greater percentage of customers in an instant and less-cluttered manner compared to email. In addition, SMS are opened and read 98% of the times received, with a 90-second response rate compared to 90 minutes from emails.

Results:

By reducing no-shows by just 10%, the company is able to save over a million dollars per year, provide a more reliable service, minimize the time needed to install/service a new or an existing client and further engage its subscribers, setting up values for a long lasting partnership.

 

Incorporating SMS into your customer service communication channel increases responsiveness and provides consumers with information when and where they need it. Consumers can trigger the communication during their own personal time, making SMS an ideal communication channel for customer support interactions.

Taking under consideration the above examples, implementing the right mobile strategy to the right audience can increase your overall profitability and engage consumers with your brand through simple, yet vital SMS communications. It may not be a direct sales tool, but it will have a significant impact on the overall cost reductions and sets the tone for an effective and well-structured loyalty program.”

 

How to Effectively Overcome The Showrooming Trend – 8 Ways in Keeping Your Aisle Shoppers Engaged

It has been a while since my last post on the Mobile Marketing & Advertising Stand, but trust me, it was a very good reason. 

The past month I have been researching and working on a piece for Mobile Showrooming and the tactics that retailers and marketers need to employ to effectively overcome such barrier and engage their shoppers in physical stores. My piece was selected and publish yesterday by Business Insider under “8 Ways To Engage Shoppers From Mobile To Aisle”. 

You may find the full article here, but I will give you a sneak preview of what I had to say on the subject. 

“Many retailers seem to believe that the rise of “showrooming” — when consumers use a brick-and-mortar store to evaluate merchandise, but actually complete their purchases online at the lowest available price - represents a serious threat to their business. “

“There are a number of ways in order to prevent such activity. The following tactics can help you transform smartphones into a powerful channel to engage in-store customers in so many new ways: 

• The Social Network into the in-store experience
• Use QR codes to provide onsite-only offers and information
• Support your stores with a mobile website
• Create interactive ad placements around merchandise
• Drive in-store traffic with mobile coupons
• Make full use of SMS
• Offer personalized pricing and lists
• Deliver the right offers at the right place with geofencing“ 

We are all well aware that some of the above tactics have been employed numerous times by brands and retailers in an effort to drive additional sales and leverage the well established engagement  with their consumers, but the products or the solutions do not always change. When employed effectively, they serve as the tools to a successful mobile strategy – the kind that will take a brand to the next level. 

To access the full article and read more on the “8 Ways To Engage Shoppers From Mobile To Aisle” please visit Business Insider. 

 

Mobile Payments

Background Overview & The Market

Mobile Payments is a revolution waiting to take over the transactional world as we know it. It roots back in the early days of mobile marketing when mobile Operators were selling ringtones and mobile wallpapers through their WAP platforms or via the SMS technology. Lately, and with the growth of the increasingly advanced smartphone technologies, it has evolved to something greater, something that users could really benefit and change the way the conduct transactions for both physical and virtual products.

So what really defines mobile payments? Mobile payments is not just another mobile commerce transactional mean, it is an alternative payment method instead of using the usual cash, check or credit cards users pay using their mobile phones and/or their phone bills to pay for products and services. According to a research conducted by IE Market Research global mobile payments have surpassed the $40 billion mark and are expected to grow as close to $1 trillion by 2016, showing that there is a rapidly increasing interest in the use of mobile devices as mobile plans as core transactional means.

However, to reach the next level towards a standard payment method rather than a minor exception, we should not ignore all the structure around mobile payments that is carried out. Overall, adoption of mobile financial services is context-driven meaning that a “one size fits all” approach does and will not work in such industry. In order to develop successful mobile payment services, marketers must have a clear understanding of its context and find a service that best suits its context. Differentiation between markets must occur in terms of the overall proposition behind mobile financial services. Consumer needs and perceived obstacles and benefits that shape the mobile ecosystem, along with technological developments all need to be taken into account.

But what is keeping such opportunity from evolving into something broadly used? A study found that 25% of American consumers are willing and happy to make mobile payments but they are concerned regarding the device’s and the SMS securities, barriers that be overcome by investing time. Mobile marketers will have to address such challenges during 2012.

Implementation

The ability to pay via mobile is seen as a major differentiator for US consumers when it comes to staying loyal into a Bank or an Operator. Mobile payment is being adopted all over the world in different ways. But what are the specific transactions involved in mobile payments. According to a Global Consumer Telecommunications Survey, some of the most common transactions include:

• Merchandise purchases
• Bill payments
• Mobile money transfers
• Purchase of digital products
• Transportation payments and ticketing

The mobile payments industry is a complex one. There are several types of mobile payment implementation methods, such as wireless transfer or contactless point of sale payments. To enable mobile payment services there are various technologies, for example Near Field Communication or SMS. Combinations of technologies and business models add up to a large variety of mobile payment services.

There are four primary models for mobile payments:

• Premium SMS based transactional payments: Such service is used when consumers are required to send a payment request via an SMS text message to a dedicated short code. In such method a premium SMS charge is applied to the customer’s phone bill received at the end of the month. As soon as the payment has been received by the mobile Operator the retailer or merchant involved in the transaction is informed of the success process of the payment and can then release the paid for goods. In such transaction a typical
• Direct Mobile Billing: Such mobile payment solution is heavily used in various Asian countries and mostly when users make online purchase. Prior to check out users are asked to send a keyword to a short as with premium SMS payments in order to receive a pin and a one-time password, to increase security. The transaction is later charged directly on the customer’s phone bill and not as an SMS message as with the Premium SMS transactions
• Mobile web payments: Often confused with mCommerce, mobile web payments enables consumers to make purchases and complete transactions through a mobile application or a web page using their mobile line to make a payment. Such particular mobile payment application has a number of benefits such as: Follow-on sales, High Customer Satisfaction and Ease of use.
• Contactless NFC (Near Field Communication): NFC is used mostly in paying for physical purchases made in retail stores. Consumers use a special mobile enabled phone wave their phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly.

Business Benefits & The State of The Market

It is a fact that the popularity of m-payments is rapidly increasing throughout the Asian market where advancement in technologies flourish due to the early adoption nature of the consumers. Businesses enable users to complete transaction towards their products and services through mobile technologies or through the existing carriers.

Merchants around the blog, and more specifically in the western world, are beginning to see the advantage of mobile payments as an additional source of revenue and a great potential to their business in a sluggish global economy. Part of the effort to increase the acceptance of such solution is enabling merchants with the technology to receive this method of payment from customers. Industry-wide efforts are underway to develop standards as the technology spreads throughout the world.

Businesses are provided with the opportunity to engage their consumers even further. By using their mobile device or mobile line to make purchases businesses are able to profile their consumers taking the whole busing experience in a more personal communication, able to provide customized solutions and shape more personalized offers. All the above can be tracked and shaped by the client’s purchasing behavior, likes, preferences and potential needs. Therefore there is a great potential for mobile CRM and loyalty campaigns to be undertaken in the near future.

More and more retailers are incorporating POS technologies like NFC to their transactional means. Technologic companies have evolved with Google, PayPal and Amazon being the first out of a number to come. In addition to that, text based companies are also making a great impact on the expansion of mobile payments in the western world like Text2Pay.

 

Our Purchasing Habits Go Mobile

A couple of weeks ago, August 1st, I was asked to provide my thoughts on how do users shop these days and whether mobile has affected our purchasing decision factor.

The result was an analysis I conducted and was posed on Velti’s blog under the title “Decisions, Decisions… How Mobile Influences The Purchasing Decision Process”. The full post can be found here, but here are some key points of the article:

“With the fast advancement in mobile technology and U.S. smartphone penetration at 47%, more and more users are incorporating their mobile device in at least one stage of their overall purchasing decision process. The process of go-back-home-and-get-on-your-PC-to-do-some-research, is long gone. Hail mobile where users are able to “window shop” and make the purchase anytime and anywhere.

One in five users who conduct mobile price match research made their most recent purchase from an online or mobile store, rather than a physical location.  41% of those consumers who used their mobile phones to assist in their product research said they made a purchase directly on their smartphone. 46% said they researched an item on their smartphone then went to a store to finalize the transaction while 37% said they looked up an item via smartphone then made the purchase through the brand’s online website or other online retailer.”

More on Velti’s blog.