But according to Richard Crone, founder and ceo of Crone Consulting, who spoke to retailers at this week’s BIG Show, there are some mobile payment options that every mobile commerce application should incorporate to increase conversion among shoppers who use their handhelds.
A Shift to Consumer-Oriented Retail
Crone, whose company helps retailers, billers, financial institutions, payment networks, processors, start-ups and investors transform payments from a cost of business to revenue-producing new lines of business, pointed to Best Buy as an example. “On has 3% of Best Buy’s traffic is coming from mobile, but the conversion rate of that mobile traffic is 25% more than its wired website,” Crone said.
One way retailers can meet the needs of these mobile-shopping-ready customers is to create a mobile app with the “4Ps.”
1. Place: The chief use of mobile phones by consumers is to locate a store. “The mantra is no longer ‘location, location, location,’ it’s ‘locate, locate, locate.’ Retailers need to make sure their mobile app gives users a quick way to locate a store.
2. Promotion. “Whether you are a restaurant, boutique, or one of the largest retailers in the world, your customers want information and promotions about your products. An effective mobile app will give them easy access to in-store specials and product descriptions.”
3. Preferences. Mobile provides the ultimate customization for consumers, and with an identifier like a mobile phone, retailers should be able to provide that unique experience. “By initiating a loyalty program across all channels and allowing the user to define their own interactions—whether they’re requesting text alerts or electronic receipts—will improve not just their mobile experience but their cross-channel experience as well.”
4. Payments: Although paying via mobile was the focus of his session, Crone recognized it’s only part of the overall mobile strategy. “Providing mobile payments registration within a retailer’s mobile app triples cross-channel effectiveness. It can help drive mobile engagement with customers, and those customers are ready with 57% of mobile users interested in having mobile payments.”
An effective mobile payment plan will result not just in increased conversions, but gives retailers critical information about their customers– where they are, what they buy and how they want to pay. “This is a key shift in thought from the traditional product-oriented way of doing business to one of customer-orientation,” Crone said.