Mobile commerce growth is continuing apace, with huge numbers of consumers now browsing, sharing and buying through their mobile devices.
Our latest Payments Landscape Report shows that only 40% of businesses have optimised their sites for mobile, potentially decreasing conversion rates.
Sage Pay together with partner & mobile commerce expert MoPowered will presented a webinar on the importance of having a mobile strategy for your business.
2. Are you ready for the mobile revolution?
Agenda
17 July 2014Are you ready for the mobile revolution? 2
11.00 – Introductions
11.05 – Mobile Payments(Sage Pay)
• What is a mobile payment?
• Trends in mobile payments
• The importance of mobile payments
11.15 – Are you ready for the mobile revolution? MoPowered
• Mobile Channel Overview
• Challenge 1 – Monetising the Mobile Channel
• Challenge 2 – Understanding the Options: Build vs Buy?
11.35 – Q & A
3. Are you ready for the mobile revolution?
Introductions
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4. Are you ready for the mobile revolution?
Your presenters
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Donna Dobson, Senior Manager
– Sage Pay
Ali Wood, Channel Manager
– MoPowered
Jim Rudall, Sales & Marketing Director
– MoPowered
5. What is a mobile payment?
Mobile optimisation
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6. What is a mobile payment?
Near field communication
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7. What is a mobile payment?
Mobile apps
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8. What is a mobile payment?
Mobile wallets
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13. The Challenges of Going Mobile
What to consider when deciding on your strategy
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Ali Wood and Jim Rudall MoPowered PLC
14. Areas of Focus
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• Mobile Channel Overview
• Key Challenge 1 – Monetising the Mobile Channel
• Key Challenge 2 – Understanding the options: Build vs. Buy?
15. Mobile is the New Channel
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23%Mobile commerce
accounted for 23%
of UK e-retail sales
in Q2, 2013
52%Said that a bad mobile
experience made them less
likely to engage with a
company again
M-commerce
is set to
quadruple
By 2017
40%have turned to a
competitor’s site
after a bad mobile
experience.
Smartphone users
are spending twice
as much time
using mobile
internet as they
are for making
calls
Google
Google
O2
Forrester
IMRG
“We haven’t actively
pushed customers onto
mobile, they’ve adopted
these devices willingly for
their convenience and
ease of use.” Shop Direct
16. Global Internet Use
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According to this data global mobile internet use is expected to overtake
traditional desktop and laptop internet use this year.
"Mobile use is growing faster than all of
Google's internal predictions."
- Eric Schmidt, Google
17. The MoPowered PLC story
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2007 2009 2012 2014+
120 customers
across mobile
web/apps/tabletDeveloped the
MoPowered
m-commerce
Platform
Additional in-App
commerce
functionalityPioneered Mobile
Banking
“MoBank”
18. The Essence of the Mobile Challenge
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A Web site designed for
the small screens of
mobile phones. When a
request from a mobile
browser is made, the user
is redirected to the mobile
version for a significantly
better user experience.
19. The Next Journey
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Before
Difficult to
view, browse, checkout
After
Easy to shop
and purchase
21. So much to do so little time…
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Key Objectives:
• Increase traffic
• Increase conversion rate
• Reduce abandonment
• Create a great user
experience
22. How are your customers engaging with you?
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23. Key Challenge 1 – To Monetise your Mobile Channel
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• Radically improve the user experience
• Less is more
• Optimised for touch gesture
• Clear call to action
• Faster speed and performance
• Convert browsers into buyers
• Checkout optimisation
• Tokenisation
• E Wallets
24. Merchants spend ££ on branding & acquiring traffic…
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Paid
Display
Paid Search
Affiliate
Sponsorship
Earned
SEO
WOM
Buzz
Viral
Owned
Websites
Mobile
Blogs
Social Accounts
ROI
Traffic acquisition spend
“For every £80 spent on
acquisition only £1 is spent
on conversion.”
Forrester Research
Poor mobile UX and UI
equals low:
• Engagement
• Conversion rates
• Average order value
• Retention3%
25. Mobile payments
Mobile Channel Abandonment
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Mobile shopping basket attrition rates are
around 97% - Google
By not having a mobile site retailers are
losing traffic they have already paid for
26. Focus on page load performance
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Every 100ms delay costs 1% of sales
(Amazon)
“There’s a direct correlation between page load speed and conversion”
Andy Harding (Executive Director, Multi Channel @ House of Fraser)
27. Mobile payments
Key Challenge 2 – What are the choices - Build vs. Buy
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The on going debate
28. Mobile payments
What works?
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Mobile users want different things
– information or action
Dedicated mCommerce sites load
quickly and convert better
Responsive design allow users to
access more content blog and
other information but are clunky.
For information / content sites
responsive design is a good approach
29. What are your options?
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Responsive Design Mobile Platform
• Built & Supported by 3rd Party
• SaaS minimises investment
• Mobile specific design and
development expertise
• Built For Purpose mobile UI/UX
• Radical Improvements in
Performance
• Uplift in all Ecommerce KPIs
Seen as best fit for Ecommerce –
majority of major retailers continue to
invest in mobile platforms
• Delivered In House/By Partner
• Cheap(er)
• Reflects lack of mobile expertise
and development experience
• Sub-Optimal UI and Navigation
• Poor Performance (speed/UX)
• Drop in Customer Engagement
• High cost of ongoing support
Seen as applicable to “content” sites –
not fit for ecommerce purposes
31. Platform Improves Performance on Mobile
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94 calls
1.3 MB data
32. Platform Improves Performance on Mobile
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“A 1-second delay in page load time equals 11% fewer page views, a
16% decrease in customer satisfaction, and 7% loss in conversions.
(In dollar terms, this means that if your site typically earns £10,000 a
day, this year you could lose £250K in sales)”
• 74% of users will abandon after waiting five seconds for a mobile
site to load.
• 57% have experienced problems when accessing a mobile site.
• 46% would not return to a poor performing site
33. Significant Increase in Customer Engagement
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• Average Order Value
• Revenue Per Session
• Pages Per Session
• Bounce Rates
• Ave Time On Page
• Transaction Volumes
+35%
+15%
+19%
-15%
+18%
+16%
34. Examine the ROI
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Q4 Unique Visitors 115,287
Mobile traffic 9% 10,376 Other traffic 81% 104,911
Mobile conversion 0.25% Desktop conversion 1.5%
Average desktop basket £232.81Average mobile basket £196.82
Mobile sales (current) 26
MoPowered conversion rate 0.75%
Current sales revenue £5,105
MoPowered generated revenue £15,316
Incremental revenue £10,211
35. Summary
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• Ensure whatever solution you select allows you to test and learn
• Be thinking mobile first but always with the mind that mobile is a
separate channel
• A mobile specific approach will ensure you make the best of the
opportunity and are prepared for what’s around the corner
• Turn frustrated browsers into happy buyers through speed and
performance improvements
• Develop navigation on mobile which is contextual and follows best
practice
• Tailor your checkout to the mobile experience
36. A foundation to harness the future mobile opportunity
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Push Notifications
GPS iBeacon
Basket Abandonment Mobile Wallets Mobile Marketing
37. Thank you and Q&A
Donna Dobson
Senior Manager – Sage Pay
www.sagepay.com
donna.dobson@sagepay.com
Ali Wood
Channel Manager
www.mopowered.co.uk
Alexandra.wood@@mopowered.co.uk
Jim Rudall
Sales & Marketing Director
www.mopowered.co.uk
Jim.rudall@mopowered.co.uk
Hinweis der Redaktion
Thank you and welcome to the Sage Pay & MoPowered webinar – are you ready for the mobile revolution?
Here you will see the agenda of how todays webinar will run.
Firstly you will hear from myself Donna Dobson on what a mobile payment is? Is there any difference between online and mobile payments, and what are the recent trends in mobile payments.
I’ll then pass you over to Ali Wood & Jim Rudall from MoPowered who’ll provide expert advice on developing a successful mobile strategy
Commentary around Sage Pay
So very quickly, here’s a look at your presenters today. As just mentioned I’ll be kicking things off, and then I’ll hand over to Ali and Jim from MoPowered, who’ll take you through what you need to consider when designing your mobile strategy
So let’s now take a look at mobile payments.
Mobile optimisation means enabling your customers to easily browse your website from their mobile phone. This is the easiest and cheapest way for a retailer to encourage mobile customers, and shouldn’t be confused with that of a mobile app. I’m sure you’ve all tried to buy something online and given up because navigating through a non optimised website is frustrating. So a non optimised site can potentially mean lost sales.
Our latest Payment Landscape Report (which we’ll email you after the webinar) showed that 40% of businesses have optimised their site for mobile. As you’ll see later in the presentation the amount of traffic to websites via mobile devices is on the increase so ignoring this could potentially lead to a decrease in conversion and therefore sales.
So another form of mobile payment is NFC, or contactless, which may sound surprising. You may think this is only relevant to those who have a bricks and mortar store, but no, currently NFC is used heavily in card present payments for low value transactions e.g Visa Paywave, and MasterCard PayPass. Although a lot of the new smartphones contain chips that can be programmed to hold credit and debit card details this has not yet been embraced by consumers. But this is likely to change in the future with more and more merchants accepting contactless payments and the card-schemes and the mobile operators heavily pushing consumers to move in this direction.
Note – a successful business according to the PLR is those with revenue growth of more than 21% than the previous year
One of the findings from our Payments Landscape Report is that 44% of successful businesses have a mobile app. I mentioned earlier that having your site optimised for mobile is not the same as having a mobile app.
For example, unlike a website; choosing, and installing an App implies a degree of loyalty from your customers. When looking into the App market, it’s important that you choose a payment provider that offers the flexibility to create that seamless mobile checkout. As on the web, you’ve got to collect payment on secure payment pages. Good practice would be to either break out into a secure webpage or ideally use single click payments, similar to the Amazon experience, otherwise known as Tokens, rather than accept payment directly through an App.
While now’s a great time for businesses to think about optimising their website for mobile and developing apps, there’s a couple of things to remember. There’s no point jumping on the mobile bandwagon with an app if it’s not suited to your business.
A good example of getting this right is Topshop. They have the perfect target market to launch an app. But they’ve been really clever about it. Customer’s don’t want to scroll through hundreds of thousands of products, it’s just not viable and mobile networks aren’t that good. So instead they use their app to attract people back to their website by just showing a few pages of recently added products. This fits in with their brand as well, as cutting edge, up to date fashion so they have a constant turnover of products on show via their app.
The benefits of building a mobile app are:
- Provide a truly multi-channel offering
-Increase loyalty and engagement from customers via special offers and discounts
- Simple way to purchase on the move
-Brand awareness and standing out from competitors
-Communicate with customers anytime, anywhere
-Provides a constant visual reminder of your brand
-and a good Revenue generator
For the purposes of todays webinar we are talking about a consumers making a card payment via their mobile phone – perhaps on an optimised website, on a mobile application .
Mobile Wallets are probably the most hotly contested area of mobile payments, wallets use a software that extract existing payment systems (such as credit cards, bank accounts and mobile bills) into smartphone apps and allow users to store and control their online shopping information, like logins, passwords, shipping address and credit card details, in one central place.
Examples range from credit/debit card wallets, such as Visa’s V.me and Google Wallet, to in-app payments like person-to-person payments such as Barclays PingIT and the PayPal mobile app.
Ultimately the use of wallets will require a change in consumer behaviour, and this is often a slow process. The fact that none of the wallets interlink, forcing a customer to download multiple apps, may yet prove a barrier to the wider acceptance of this technology.
Finally, before handing over to MoPowered I just wanted to run through some of the latest stats on mobile payments, just to reiterate the importance of mobile as an ecommerce channel. Something that can’t be ignored!
This statistic is from econsultancy (Sept 2013)
Why is this important? Well, the Centre for Retail Research & RetailMeNot Inc (known as Mycoupon.com in the UK) also conducted research into online spending.
They found that online orders made using mobile technology (smartphones and tablets) in 2013 were 8.0% of all online sales in Europe . This refers to the final transaction (ordering & paying). But it’s estimated that between one third and 45% of retail website visits may be carried out on mobile devices.
In 2014 they expect online retail sales made via mobiles to grow in the UK by 62% to a total of £7.92 bn. This is equivalent to 17.6% of UK online retail sales. Sales using tablets will grow by 100% (to £3.10 bn) and smartphone retailing is expected to grow by 44.3% to £4.82 bn.
The main point highlights the growing importance of m-commerce at a time when many retailers are still struggling to develop effective, user-friendly mobile sites and apps - so the importance of mobile commerce cannot be ignored.
There are now more mobile phones in the world than people
The main point highlights the growing importance of m-commerce at a time when many retailers are still struggling to develop effective, user-friendly mobile sites and apps - so the importance of mobile commerce cannot be ignored.
There are now more mobile phones in the world than people
The main point highlights the growing importance of m-commerce at a time when many retailers are still struggling to develop effective, user-friendly mobile sites and apps - so the importance of mobile commerce cannot be ignored.
(51%) hadn’t made a purchase using their smartphone in the previous six months, which shows that there is still huge potential for m-commerce sales to continue rising as a proportion of total online sales.
The main point highlights the growing importance of m-commerce at a time when many retailers are still struggling to develop effective, user-friendly mobile sites and apps - so the importance of mobile commerce cannot be ignored.
some sites receive more than 30% of traffic from mobile devices,
Mobile devices accounted for 23.2% of total ecommerce sales in Q2 2013, up from 11.6% in the same period last year.
(51%) hadn’t made a purchase using their smartphone in the previous six months, which shows that there is still huge potential for m-commerce sales to continue rising as a proportion of total online sales.
40% of shoppers consult 3 or more channels before a purchase, compared to 10% in 2002.
29% of UK smartphone owners have made a purchase using the mobile web
69% of tablet owners make a purchase on their device every month,
I’ll now pass you over to MoPowered to take you through how to best devise your mobile strategy
Thank you for your time today. I am now going to hand you back to Peter who is going to take any questions…..