On the Mobile Commerce – What People Browse, Buy and Why?

Data That Every Marketer Needs to Know on Consumers Mobile Usage

There had been several articles written linking mobile usage to e-commerce and why marketers need to not only optimize their campaigns to look good on mobile but actually put mobile and social at its center. In this article, we will explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop), what types of products and/or services they purchase through their phones and which region is the most receptive to mobile commerce.

First, let’s look at the browsing patterns.

How People Are using their Mobile Phones? 

The following infographic from iMomentous shows that consumers play games, socialize, listen to music, browse the web, consume content, even buy content on their tablets. Most of these activities do not necessarily convert or lead to online shopping but mainly for “me-time”.

Ways People Use Their Mobile Phones Onlines

7 Reasons Why People Use their Mobile Phones

In the How People Really Use their Mobile study by BBDO and AOL, data show that 68% of consumers’ smartphone use happens at home. The study shows that 46%, which is highest percentage of usage, goes to “me time” or for activities for entertainment, playing games or simply window shopping for fun. Other activities include self expression, discovery, preparation, accomplishing, shopping and socializing.

What People Do and Search on Mobile Phones

Other activities on mobile include:

- reading reviews
- compare products
- read more information
- view location using maps
- discuss on social networking sites
- make shopping lists, bookmark, pin
- collect loyalty points
- join chats and forums

Complete transaction
- pay online
- buy in-store
- pay online

Mobile Being Used in Purchase Process (Source: The Next Web) 

While most of the activities focus heavily on activities that relaxes and considered to be “me-time”, it doesn’t necessarily mean that these activities do not lead or eventually involve purchasing. In fact, mobile phones are actually used throughout the purchase process researching of products usually takes place.

Mobile Phones Used in Purchasing Process

In fact, a good example is the Chinese smartphone manufacturer Xiaomi which has just sold 150,000 units in under 10 minutes through the mobile chat app, WeChat.

When creating a “mobile strategy”, it’s vital to focus on the thinking on apps, instead of ads.

Here are some insights into mobile shoppers that might surprise you:

  • 84% research purchases at home; 46% research in line at the store
  • 81% respond to ads personalized to their interests or background
  • When at a store, 77% view content unrelated to what they went to the store to purchase

Research says that over 79% of smartphone consumers use their phones to help with shopping, from comparing prices, to finding more product info, to locating a retailer.

In Store Activities of Mobile Phone Users

  • 33% said take pictures,
  • 32% search for better prices,
  • 27% search for reviews,
  • 26% scan a barcode,
  • 23% use a coupon or look for a coupons,
  • 20% use the store application,
  • and 11% pay for a purchase at the register.

Who User Mobile Phones for Purchases: Men or Women? 

Who’s shopping on mobile devices? More than half the U.S. audience is men (52%) and 48% women, with most in the 18 to 44 age range. Nearly half (48%) have an Android smartphone, and 45% own an iPhone. Tablet owners tend to skew more affluent, with more than half with household incomes higher than $75,000, and 47% access retail content.

However, women are more socially engaged in the in-store shopping experience than men.78% of smartphone owners have visited a brick-and-mortar store with the intent to buy, and instead bought the item online. The reason: inadequate information, overwhelming choice and poor assistance choosing products.

 What Goods and Products Do People Buy on their Phones (Source: FBT)

If people really do purchasing transactions on their phones, what exactly do they buy?

What Products Do People Buy on Mobile Phones

 

47% of the the purchase goes to digital content or (ebooks, magazine subscription, access to premium articles / publications) as it tops the list of the items being purchased through mobile.

Other most frequently purchased items through phones include clothing, tickets, daily deals, gift certificates, electronics (surprisingly it’s not the top of the list), food, hotel accomodation, car rentals and airline tickets.

During the holidays, overall e-commerce sales on computers and mobile devices combined grew 14 percent to $42.3 billion, according to comScore.

Biggest Motivators for Using Mobile in Payment Transactions

Overall, the study found that consumers would be more likely to increase their use of mobile commerce services if they had greater choice of payment methods (64%), if mobile payments were accepted by more retailers (51%), received regular order updates (41%) and if they were further incentivized by brands and services (32%).

Biggest Stumbling Blocks to Using Mobile for Payment Transactions 

The study also reveals important insights about what holds consumers back from using more mobile commerce and services. Nearly half of the respondents globally (46%) indicated the hassle of having to enter a lot of personal information, security concerns (45%) and lack of Internet access at the time of transaction (43%) were factors.

“Consumers are now ready and demanding more mobile commerce services, and they also expect to engage with their mobile phones more simply and effectively,” said Anthony Reynolds, senior vice president, Worldwide Mobile Sales and Solutions at SAP.

“While progress is being made, companies must make a collective effort to provide consumers ease of use and benefits for mobile interactions and transactions, such as available technology, security and incentives. On its current trajectory, mobile occupies a tempting combination of an all-in-one communication channel, loyalty card, cash, location tracker and credit card, offering brands and companies the opportunity to connect to consumers either exclusively via mobile or as part of a multi-channel mix.”

As available technology leads to growing levels of sophistication, consumers around the world are increasingly turning to mobile phones as a cornerstone for communication and transactions. Eighty percent of consumers agree that businesses should use any available technology to make life easier for their customers.

Breakdown of Mobile Transactions Per Industry

By 2013, more people will use mobile phones than PCs to get online, according to Gartner. The number of mobile devices is set to more than double in the next years. Worldwide Smartphone and Media Tablet Shipments, 2010-2015:

Research shows that ease of use is a core principle that will accelerate overall user adoption in retail, telecommunications and banking industries.

  • Banking
  • Retail
    • Retail is a key focus of mobile purchases with entertainment services (43 percent), music downloads (40 percent), books or e-books (40 percent) and attire (39 percent) all typical purchases
    • Users are encouraged to buy goods using their mobile phone by lower cost services (29 percent), exclusive offers (25 percent) and coupons (22 percent)
  • Telco
    • Free minutes, texts and Web use (24 percent), personalized services (22 percent) and lower cost services (21 percent) will encourage consumers to use their mobile to check usage data for their mobile account
    • More than half of users (52 percent) agree that their mobile payment activity will increase when they have more confidence in mobile security, with 39 percent requiring more confidence in how to use their mobile as a payment method

Which Region Are the Most Receptive to Mobile Commerce?

According to the SAP Consumer Trends survey, North Americans lag 65% behind other regions in their desire for mobile commerce while emerging countries express the most demand - Asia having the biggest appetite.

While the findings indicate that consumers want more commerce services through mobile phones universally, the drivers or barriers to further adoption of mobile purchasing vary within different countries and industries. Emerging markets such as South Africa, Saudi Arabia and China show a greater pace of change, with 96% of respondents expressing a desire to use their mobile to buy goods or services, compared to 59% in mature markets.

MENA Is The Fastest Growing E-commerce Region (Source: Visa)

Recent study from Visa has revealed the Arab region witnessed an estimated 45% year-on-year increase in sales from $10 billion in 2011 to $15 billion in 2012, making it the fastest growing e-commerce region worldwide.

According to the study, e-commerce transactions across the region reached $15 billion, a rise from the $10 billion concluded the year before. Egypt came first in the entire region in e-sales in 2011 with $3.2 billion while the UAE was next with $2.8 billion in e-sales, the report showed.

These figures and studies only show that more and more consumers are ready to take on their mobile phones for some of the most vital transactions such as online payments, online shopping and even content consumption which will provide marketers better opportunities to serve not ads but actually use these data to create personalized and more relevant experiences to consumers.

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  1. […] There had been several articles written linking mobile usage to e-commerce and why marketers need to not only optimize their campaigns to look good on mobile but actually put mobile and social at its center. In this article, we will explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop) and what types of products and/or services they purchase through their phones.  […]

  2. […] There had been several articles written linking mobile usage to e-commerce and why marketers need to not only optimize their campaigns to look good on mobile but actually put mobile and social at its center. In this article, we will explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop) and what types of products and/or services they purchase through their phones.Mobile Experts? Fibonacci Sequence Seeking Sr iOS Developers for Excellent Companies!  […]

  3. […] There had been several articles written linking mobile usage to e-commerce and why marketers need to not only optimize their campaigns to look good on mobile but actually put mobile and social at its center. In this article, we will explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop) and what types of products and/or services they purchase through their phones. Source: http://ijustdid.org/2013/12/why-mobile-commerce/  […]

  4. […] There had been several articles written linking mobile usage to e-commerce and why marketers need to not only optimize their campaigns to look good on mobile but actually put mobile and social at its center. In this article, we will explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop) and what types of products and/or services they purchase through their phones. Mobile Experts? Fibonacci Sequence Seeking Sr iOS Developers for Excellent Companies!  […]

  5. […] Let's explore more on the psychology as to how people use their mobile phones, what exactly are they browsing (compared to what they already do on the desktop), what types of products and/or services they purchase through their phones, and which region is the most receptive to mobile commerce.First, let’s look at the browsing patterns.  […]

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