Shopping in Augmented Reality: The Impact of AR on eCommerce

Posted on by Antony
BORN Views
Shopping in Augmented Reality: The Impact of AR on eCommerce

In 2016, Pokémon Go drew millions of individuals around the world into the streets to ostensibly play a game that simultaneously familiarized them with location-based services and augmented reality (AR) technology. 

What was once a gimmick in apps such as Snapchat and Instagram to add real-time special effects, transformations or filters to pics – bunny ears, anyone? – is now big business. 

AR has been on the radar of developers and marketers since 2017, when with a view to making the technology go mainstream, Apple announced its augmented reality framework. Called ARKit, the framework made it easier to develop apps for iOS apps and games. Consequently, the options available to brands have exploded.

Total spend worldwide on AR as well as virtual reality (VR) is expected to have topped USD 18.8 billion in 2020, an increase of 78% over 2019. This is set to rise considerably through to 2024, reaching USD 72.8 billion.1 Consumer mobile AR experiences spending alone is expected to rise from USD 1.38 billion in 2020 to USD 1.93 billion in 2021, before climbing to USD 4.18 billion by 2024.2

Brands as diverse as Gucci and Ikea are using AR technology to enhance their user experience with virtual trials.

Not surprisingly, AR has especially gained traction with beauty and furniture brands as people saw what filters could do to faces. Beauty brands such as Ulta were some of the first adopters of AR. L’Oreal ModiFace develops custom AR hair, cosmetics, and jewelry apps for brands like Amazon, Sephora, and Estée Lauder. Perfect’s YouCam’s 3D face scanning enables virtual makeovers. Samsung’s Bixby Vision uses ModiFace’s platform to let users try on makeup from Sephora, CoverGirl, and Laneige.3

Gucci let customers see what their Ace sneakers would look like on their feet, using technology developed by Wannaby, a Belarus-based startup, whose Wanna Kicks app also showcases other sneaker brands such as Nike, Adidas and Allbirds. Nike’s app can also measure customers’ foot sizes. AR has been a part of Gucci’s marketing mix before. The brand offered a customization service for select sneakers, bag,s and clothing items by equipping stores with a tool that let customers point an iPad or iPhone camera at a real product available in-store, personalize it and then see it in a real-world setting.

Snap, the maker of the Snapchat app, is looking to AR to make its platform profitable and commerce-oriented. Snap said it will be investing in more features to drive customer engagement and as an advertising tool4. Companies such as Target and Dior even have profiles on Snapchat.

Finally, Ikea has offered AR as part of their in-app experience since 2014 but their Place app takes it up a notch with users able to render digital renderings of their furniture in their living room. 

At this point though, while most brands are using AR the way movies use special effects – to enhance the user experience – most brands can’t definitively point to how much AR results in sales. Ulta says they look at AR as a way to ensure brand loyalty5. 

Regular fashion brands haven’t embraced AR as much because there are many ways clothes can look on a person depending on their body shape. ASOS is one of the few brands that have with its See My Fit function allowing users to visualize a dress on 16 virtual models between sizes 4 and 186. 

The future of AR is, to put it mildly, bright. Snap, which made the concept of filters commonplace, is betting on smart glasses, but these are first aimed at developers and creators7. Facebook and Apple are also expected to debut smart glasses for consumers in the next few years.

Besides clarifying business objectives and goals, brands looking to AR tools should choose carefully the kinds of AR tools as well as their licenses, and make sure they are compatible with the devices and operating systems that are in play.

What kinds of AR tools can you choose from? 

  • Location-based tools use GPS or position-detectors to determine current location, then adjust the environment and create objects in it. 
  • Marker-based tools are based on image recognition and the more advanced they are, the better they are able to detect 3D markers and real-life objects. 
  • Superimposition-based AI where objects are overlaid onto a real environment. One good example is IKEA’s Place app. 
  • Projection-based AR are the simplest type of AR and just project holograms onto a surface. 
  • AR codes use the basic idea of QR codes to add interactive content to the world around you. Amazon’s Augmented Reality App, for example, allows you to scan the QR codes on their packing boxes for interactive, shareable experiences.

At BORN, we pride ourselves on human-centered design. If you would like to know more about our capabilities in augmented reality and other forward-looking innovation, click here.

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Footnotes

1.  VR and AR market size, Statista, https://www.statista.com/statistics/591181/global-augmented-virtual-reality-market-size/

2. Consumer mobile augmented reality (AR) experiences spending worldwide from 2019 to 2024, Statista, https://www.statista.com/statistics/1222728/consumer-mobile-augmented-reality-spending/

3. Gucci’s iOS app lets you try shoes on remotely in AR, 26 June 2019, VentureBeat, https://venturebeat.com/2019/06/26/guccis-ios-app-lets-you-try-shoes-on-remotely-in-ar/

4.  How Snap aims to turn augmented reality into a monetization machine, ZDnet.com, https://www.zdnet.com/article/how-snap-aims-to-turn-augmented-reality-into-a-monetization-machine/

5.  Despite advancements, AR struggles to take off in retail, Modern Retail, 22 Jan 2020, https://www.modernretail.co/retailers/despite-advancement-ar-struggles-to-take-off-in-retail/

6. Asos is using AR to promote and sell fresh products in lockdown, The Drum, https://www.thedrum.com/news/2020/05/18/asos-using-ar-promote-and-sell-fresh-products-lockdown

7. Snap Plans Hardware Push With AR Spectacles, Drone, The Information, 30 Mar 2021, https://www.theinformation.com/articles/snap-plans-hardware-push-with-ar-spectacles-drone

eMarketplaces: Unlocking The Value of Platform Economy

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eMarketplaces: Unlocking The Value of Platform Economy

By: Aditya Basu

Unlocking & navigating the platform economy through a nuanced ecosystem strategy are en vogue these days, both in boardroom discussions and consumer preferences. Today, the world’s 6 most valuable companies by market capitalization and around 80% of the world’s unicorn startups operate a digital ecosystem that enables two-sided market dynamics and have gained enormous market share through network effects.

Platform businesses bring together producers, sellers, and consumers in high-value exchanges. Their chief assets are information and interactions, which together are also the source of the value they create and their competitive advantage. One of the classic examples of leveraging the platform economy through achieving critical mass & network effect is through the meteoric rise of Apple’s iPhones between 2007 – 2015. Though Nokia, Samsung, Motorola, Sony Ericsson, and LG collectively controlled 90% of the industry’s global profits in 2006, by 2015 the iPhone singlehandedly generated 92% of global profits by leveraging the power of platforms through a two-sided marketplace strategy.

McKinsey forecasted that 30% of all global economic activity, $60 trillion, will be mediated by platforms and ecosystems in 10 years’ time & Gartner says that “By 2023, at least 70% of the enterprise marketplaces launched will serve B2B transactions.” Yet, only 3% of established companies worldwide have adopted an active marketplace strategy. 

While the platform economy offers the most profitable & lucrative business model, online marketplaces are tough to build and achieve the “Critical Mass.” The classic chicken & egg conundrum, “To attain a critical mass of buyers, you need a critical mass of suppliers—but to attract suppliers, you need a lot of buyers.” 

We are in the midst of a seismic shift in business and society. Understanding platform strategy will be vital to grasp tomorrow’s economic models.

Evolution of Brand Economy: Omnichannel to Ecosystem Play

Today’s customers increasingly expect a seamless, integrated, consistent, and personalized experience with their service providers which current multi-channel models, with their multiple silos of customer contact, are unable to provide. A fully integrated response to these new customer requirements will need to be both customer-driven and omnichannel in nature. As we speak, large conglomerates are struggling with the “IF & HOW” to leverage digital platforms and ecosystem models for their industries. The key CXO challenge today is to create a core platform that can deliver incremental growth along with the new business & operating models around customers, partners & competitors.

Digital marketplaces have been the pulse of the consumer industry, yet many brands struggle to strike the correct chord. The shift in consumer behavior during the COVID-19 pandemic accelerated digitization even further. However, the online marketplace model has persisted, driven by consumers seeking the convenience and broad assortment that marketplaces provide. In fact, online marketplaces now represent 58% of global web sales, totaling more than $2 trillion annually.

Broad Pivots of Marketplace Operations: Strategy to Execution

The typical marketplace model has millions of customers, multiple systems, and complex operations. Any brand trying to enter the marketplace will have to swim through the chaos to ace their digital marketplace strategy. We simplify the Marketplace model from the lens of 5 broad pivots of Marketplace Operator, Enterprise commerce & marketing capabilities, the right partnerships & alliances in Fulfillment, logistics & Financial services along with building a best in class Tech & Data Ecosystem, as depicted in the graphic below.

Our key capabilities encompass our methodology of Imagine, Build and Run; we develop and implement strategies for customers to grow profitably in a borderless, digitally-and-physically connected world. We lead brands from strategy to execution by setting up feasible business & operational models, defining KPIs, setting up integrated applications to enable associates, and finally delivering exceptional customer experience driven by our Stella Framework.

A few notable value drivers on Marketplace implementation include, but are not limited to;

  • Revenue augmentation with multi-channel & cross-border sales
  • Improved customer targeting & analytics through digital marketing, micro-segmentation & social integrations
  • Cross-sell & Up-sell opportunities through tailored pricing, product bundling & increase AoV (share of wallet)
  • Business process optimization
  • Walking the Talk Leadership: Marketplace Implementation across the globe

Walking The Talk Leadership: Marketplace Implementation Across The Globe

Recently we were approached by one of Asia’s largest transportation hubs to become their digital growth partner, to develop & manage its next-generation omnichannel e-Commerce Marketplace for onboarding and tenant management. BORN developed an experience-led Marketplace platform to provide a personalized shopping experience for Sellers (B2B), consumers (B2C), Enterprise users (B2E). The implementation has helped them to optimize marketing effectiveness, improve operational efficiency with faster time to market, accelerate conversions, and enable topline growth through upselling & cross-sell.

For more information in regard to BORN Group’s Marketplace offerings and further case studies, please inquire here.

Assessing The Pillars of Modern Digital Infrastructure

Posted on by Antony
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Assessing The Pillars of Modern Digital Infrastructure

Seeking to better understand customer experience expectations of digital commerce, Avalara commissioned business intelligence platform PSFK to research key trends and technologies along the purchase journey. The resulting five-chapter report features Avalara customers, partners, and thought leaders.

What did we learn?

Consumers expect retailers to have ecommerce and mobile capabilities. Their expectations are high; they bank on researching each stage of the purchase journey online. Real-time accuracy and transparency are essential, as is a seamless experience.

There’s a lot at stake. Global ecommerce totaled more than $3.5 trillion in 2019. By 2023, online retail sales in the United States alone are expected to reach $969.7 billion.

To succeed in this increasingly crowded field, retailers must deliver an exceptional customer experience at all stages of the customer journey, from discovery to post-purchase support. Technology is a key component of success, helping to build trust and therefore loyalty.

Mobile has elevated expectations: Consumers count on retailers to deliver a true omnichannel experience, tailored to them, no matter how they shop. Retailers that sideline mobile risk alienating a growing portion of the market. Mobile sales have doubled since 2015 and are expected to account for 44% of ecommerce by 2024.

In short, retail today must be “digital-first, fluid, and agile,” as the current pandemic has highlighted. In recent months, retailers reliant on physical stores alone were often unable to connect with customers. Those with an established online and mobile presence could meet consumers where they were — at home or on the move.

No matter the circumstances, the more agile a retailer’s overall digital infrastructure, the better the experience for customers passing through these five stages:

  • Discovery
  • ‘Store’ experience
  • Shopper education and assistance
  • Payment and tax
  • Fulfillment and support

Discovery

Consumers shop across all digital platforms in today’s hyper-connected world, including through social channels as well as through Alexa, Google Assistant, or Siri. Managing customer relationships is key. A dynamic outreach with visual search streams and shoppable content helps retailers rise above competitors. 

‘Store’ experience

To convert browsers to buyers, ecommerce retailers need more than an online storefront; the whole shopping experience must be streamlined, secure, and increasingly, curated. An adaptive homepage and social shopping options help provide the experience consumers crave, as does augmented retail. People respond well when given the option to virtually try on products.

Shopper education and assistance

Online shoppers are increasingly coming to expect personalized support at key moments, as they might receive in a brick-and-mortar store. They value well-timed expert opinions. Authentication tools and Artificial Intelligence (AI)-powered chatbots help customers navigate product catalogs and retailers understand when human interjection is necessary.

Payment and tax

Checkout must be seamless on the front and back end. Customers are one step closer to a purchase when their payment information is automatically (and securely) provided. Other best practices include offering one-click purchase options, digital layaway options, and in-cart optimization. Currency conversions aid cross-border sales, as do accurate tax and customs calculations. To foster trust, reveal shipping, tax, and other applicable charges up front.

Fulfillment and support

What happens after a customer clicks “Buy now” is an integral part of the customer experience. Flexible delivery options, including in-store pickup and returns, are a must in the age of near-immediate gratification. AI and machine learning can help streamline logistics and reduce costs. Customer loyalty can be fostered with product setup, ongoing support, as well as programs that encourage customer evangelization.

Exceed expectations

Exceeding expectations is key to successful digital commerce. Gain deeper understanding. Get the report here.

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Welcome to BORN’s Partner series! Through this program we look to highlight thought leadership from our vast array of technology partners. Follow along using the hashtag #thisisBORN and #BORNpartner!

Today, we’re thrilled to call attention to our longtime partner, Avalara. Avalara utilizes the PFSK platform to help assess which components of modern commerce infrastructure are some of the most essential. We hope you get a broad overview in this highlight post and explore deeper at Avalara’s site for the full white paper.

How to Increase Customer Lifetime Value With Visual Product Discovery

Posted on by Antony
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How to Increase Customer Lifetime Value With Visual Product Discovery

The global pandemic prompted a huge shift in consumer behavior — including notable breakdowns and disruptions in customer loyalty. 

As supply chains suffered a shock that restricted inventory and forced long-time customers to look elsewhere, another important transformation was taking place. 

Brands and retailers that hadn’t been focused on their eCommerce presence suddenly went “all-in.” And those that already had strong websites and solid operations in place to serve online shoppers took things up a notch. 

The resulting advancement in customer experience created a new breed of consumers. These shoppers have sky-high expectations from brands when it comes to everything from product recommendations to fulfillment to customer service, and more. 

Building Loyalty in the Post-Pandemic Landscape

Now that the initial “shock to loyalty” is leveling out, the onus is on brands and retailers to create customer experiences that are so intuitive, delightful, and memorable that they’ll entice these new, more demanding shoppers to come back time and time again. 

The brands that invest in keeping the new business they’re seeing in the long-term — or those that crack to code on how to increase customer lifetime value (LTV) — are poised to be at a tremendous advantage in the coming months. Today’s blog post with BORN partner Syte helps illustrate that advantage by going into detail on LTV and how visual product discovery helps win over shoppers. 

LTV is so essential because loyal customers don’t just return to your website more often, they are also more eager to spend with your brand. In fact, 39% of loyal customers will spend more on a product, even if there are other, less-expensive options available elsewhere.

Still, when looking to build lasting relationships with customers, brands and retailers often overlook the most critical element of the customer journey: product discovery. 

After all, if shoppers can’t find what they’re looking for in the first place, why would they come back?

Why Visual Discovery Wins Over Shoppers 

Innovative brands and retailers are increasingly using visual AI to take their product discovery experience to the next level. This emerging technology, which includes image recognition capabilities, allows retailers to pinpoint specific details about each product in their inventory and to use that unique visual data to surface the most relevant items for each shopper. 

Visual discovery tools that leverage AI, including camera search and smart recommendation carousels, enable shoppers to easily find products that suit their tastes, even when they don’t have the right search terms or the time to navigate through dozens of product listing pages. 

Connecting shoppers with their ideal products so seamlessly leads not only to a higher conversion rate but also to a dramatic rise in customer lifetime value. 

In fact, Syte’s data analysis from July-December 2020 found that when shoppers interact with on-site visual product discovery tools — specifically those powered by visual AI — they are more likely to become long-term, high-value customers:

  • Compared to high-intent “add to cart” shoppers, those who engaged with on-site product discovery tools had a 12% uplift in retention rate at the end of a 30-day period
  • The higher retention rate among users of visual discovery technologies also translated to a 19% uplift in customer LTV within a 30-day period, compared to all customers.

These numbers demonstrate that today’s shoppers deeply value brands that help them find what they want intuitively and quickly — and that they see this process as a core element of an improved customer experience. 

Brands that rise to the challenge of creating an outstanding product discovery experience will become a trusted destination for shoppers and drive long-term value from new customers. To learn more about how these solutions impact customer experience and drive business value, take a look at our partner Syte’s blog.

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Welcome to BORN’s Partner series! Through this program we look to highlight thought leadership from our vast array of technology partners. Follow along using the hashtag #thisisBORN and #BORNpartner!

Today, we’re happy to call attention to our visual search partner, Syte, and talk about how they help transform Customer Lifetime Value with effective visual product discovery.

The Clock is Ticking: It’s Time to Leverage Customer Data Platforms

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The Clock is Ticking: It’s Time to Leverage Customer Data Platforms

The period of leveraging third-party cookies is coming to a screeching halt, with new regulations and privacy concerns arising daily. While this may be troublesome for marketers who rely on this data, there are options beyond third-party cookies. The time to migrate to a Customer Data Platform or CDP is now.

The key to effective digital marketing is high-quality customer data. Marketers know the much-discussed phrase ‘know your customer ‘ or KYC goes beyond just knowing their names and what they purchased in the past. High-quality data results in superior engagement and lifetime-value conversations. 

How well do you really know your customers though? Traditionally, organizations have used customer relationship management (CRM) systems operated by salespeople to organize and manage data from customer interactions. For example, a history of a customer’s past purchases would be tracked, or utilized to create a record of potential customers. These are then analyzed to drive sales. 

Further customer-relevant information is stored in other discrete, unconnected systems. Marketing systems and customer service information might only partially appear in CRM systems while unstructured data such as those from delivery platforms, i.e. systems that interact at channel touch points such as email software, webpages, social media or surveys would not be connected to those systems. It was hard to build up and maintain a persona of the customer from all this data that also stayed current. 

Besides demographic and transactional data, you can have behavioral data on the web and mobile from data management platforms (DMP), such as those that serve advertising and are used for retargeting using cookie – information that might expire in 90 days or the cookie’s lifetime – as well as in-store interactions. 

Each of the types of data mentioned above comes with different levels of personalization.

What is a Customer Data Platform?

All the information listed above can now be captured, labeled and stored in a CDP to form a more complete view of the customer to allow for better marketing efficiencies. The CDP Institute defines a CDP as “packaged software that creates a persistent, unified customer database that is accessible to other systems.” 

A CDP not only manages data from a wide variety of customer interactions and combines them with marketing content, but also makes it easier to comply with data protection regulations. This tool is usually managed by a marketing team without much technical support.

Features of a CDP

CDP software must include features such as the ability to;

  • Scour data from all sources, both online and offline, ideally in real time.  
  • Retain all original detail and segment them according to rules.
  • Store data for as long as users want.
  • Build unified customer profiles including identity, attribute and device data, and offer them to marketers in a web-based interface.
  • Integration with external systems to enable activation.

The data from a CDP can then be used to create a 360-degree view of the customer and their journey that is both individual and unique. Such a segmented model leads to superior insights and personalization, and as a result, increased engagement en route to a consistent multichannel user experience. Anonymous users are recognized as loyal customers who interact with the company via their channels of choice. 

CDPs could take the form solely of data assembly, including; campaigns (data, analytics and customer treatments) and delivery (data platforms, analytics, engagement and message delivery). They must have the ability to send segments and segment instructions to other execution tools for the execution of campaigns, mobile messaging and other channel activity. Some may even include activation features such as recommendations, optimization and testing.

Advantages of Leveraging CDP’s

Unique view of the customers: A CDP links internal CRM first-party data, second- and third-party data from business partners and providers, offline data, event and activity flows, data from the back office and data on transactions, customer behavior and experience. This granular data creates dynamic and unified profiles that can be updated in real-time.

Agility in decision-making: A CDP’s ability to use real-time information such as user behavior and changing technology trends to stay updated allows an organization to stay flexible and thrive in a dynamic business environment. They can do this by tweaking promotional metrics, pricing strategies, inventory scheduling and optimizing relationships with supplies and partners. 

Democratized business intelligence: The availability of customer data in one centralized platform allows users from different departments, customer touchpoints and cross-channel marketing efforts to have access to the same data.

Increased operational efficiency: CDP’s allow organizations to be more competitive – with centralized information at the push of a button, ready-to-use integrations and real-time analytics, they reduce the time between getting insights and using them to make decisions that impact the bottom line. 

A better marketing and user experience: A CDP combines operational data from the back office with front office and experience data. On the basis of permissions given, companies can offer their customers a personalized experience that is tailored to their needs and wants at the right time via the preferred channel.

Reliable data protection: A good CDP automatically recognizes the purpose for which data is recorded and sets the course for a holistic data protection strategy. Collected information is only added to the customer profile if the required declaration of consent is available. With the third-party cookie falling in importance and increased regulatory oversight of data collection, it’s expected that 1 in 4 CMOs will invest in consent and preference management software in 2021. Customers can trust that their data is optimally protected.

Choosing the right CDP for your business: CDP’s are already a key part of many marketing automation tools. With a tsunami of data expected from the Internet of Things applications, they are going to become its beating heart.  

To narrow down your choices, start with an audit of your marketing goals and current systems inefficiencies such as the state of your data. Then, identify the features of a CDP that will help you reduce those inefficiencies and achieve those goals.

Peer-to-peer review site G2 has an overview of the most popular CDPs, a list which includes Segment, Exponea, SAP Emarsys, Listrak, Tealium, Optimove, Adobe Experience Manager, and Salesforce Interaction Studio.

As experts in the CDP space, we at BORN would love to connect for an exploratory session to evaluate your current and future marketing technology strategy.

How to Leverage Technology to Improve CX and Build Loyalty

Posted on by Antony
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How to Leverage Technology to Improve CX and Build Loyalty

What turns a browser into a customer, and a customer into a repeat customer? It may be as simple as listening and helping shoppers find what they want. That can be done face-to-face in a brick-and-mortar store. For online sellers, it requires technology.

Though brick-and-mortar retail stores have reopened nationwide, the coronavirus (COVID-19) continues to drive record online sales. July’s ecommerce sales were lower than June’s, but still up 55% year over year. Adobe Analytics expects online sales for the year to surpass 2019 online sales by October 5, 2020. For many consumers, including some who didn’t shop online before the pandemic, ecommerce is still the best option.

To capture new customers and retain old ones, retailers must provide the essentials: easy browsing, a secure ecommerce store, seamless checkout, and trackable delivery. Yet today’s savvy consumers often want more. They like to see themselves wearing your products. They may want to connect with a sales associate — like they do when shopping in person.

It can all happen online with the right technology. Chatbots powered by artificial intelligence (AI), authentication tools, and curation services can help customers navigate product catalogs. When a shopper needs more detailed assistance, human experts jump in.

Business intelligence platform PSFK examines how technology helps shape customer experience in its Digital Commerce Playbook. Key findings on the importance of customer education and assistance are summarized below and all statistics are attributed to this study;

Help them find what they want

Customers value clear information, well-timed input, and expert opinions. That’s hard to offer when consumers are anonymous, but increasingly, online shoppers are letting themselves be known. About 58% of millennials are willing to share personal information in order to get attuned product recommendations. And 36% of customers (not just millennials) expect a company to be able to provide “relevant recommendations for additional products and services after a single purchase.”

It would take an army of sales associates to offer that sort of personalized shopping experience for all browsers. Fortunately, AI-enabled support can assist with the early stages, narrowing down choices and gleaning preferences. If more personalized help is needed, it can gather information to share with human successors.

Be there for them

Consumers want to feel connected, perhaps now more than ever. Prior to the pandemic, 72% of consumers aged 18–64 said their overall customer experience would be better if they could text with a live agent in real time — too many of us have spent too many hours of our lives caught in endless cycles of automated help lines that provide no answers. Offering different, more human ways to connect can give you a competitive edge. 

Authenticate

Consumers want access to human help, but they also want assurance the products they’re buying are authentic. And unfortunately, the rise of marketplace sales was accompanied by an increase in counterfeit products. More than 70% of products purchased from marketplaces annually are counterfeit, and consumers spend almost $0.5 trillion annually on counterfeit goods.

Marketplaces are aware of the problem and working to stem the tide of counterfeit sales. Meanwhile, customers need assurance they can trust retailers. You can provide that via AI verification and blockchain tracking, among other tools.

In short, people like supporting businesses they can trust. They respond to ecommerce stores that curate selections to their taste and provide personalized assistance. It’s what they expect when they shop in person, and they’re coming to expect it online. Retailers that can fulfill those expectations are likely to outperform those that don’t.

Want more key insights about how technology can improve consumer engagement? Get the report from Avalara. 

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Welcome to BORN’s Partner series! Through this program we look to highlight thought leadership from our vast array of technology partners. Follow along using the hashtag #thisisBORN and #BORNpartner!

Today, we’re thrilled to call attention to our longtime partner, Avalara. Through this insightful piece, we hope you gain an understanding of what types of commerce technology can lift customer experience and bring loyalty to a brand.

BORN Group’s Guide to Mobile eCommerce

Posted on by Antony
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BORN Group’s Guide to Mobile eCommerce

Mobile eCommerce or m-commerce is the purchasing of goods and services via mobile devices. You might have thought of mobile phones as being the main device used, and you wouldn’t be wrong. However, there are two devices that fall under this category – smartphones as well as tablets. Tablets sales are still increasing year-on-year and are often not given as much consideration when it comes to builds, while smartphones have been a transformative component of the eCommerce industry and are a main consideration as we develop digital strategies for our clients1.

Key m-commerce statistics

  • M-commerce is growing rapidly and is being driven largely by mobile-first economies in emerging markets. In South Korea, for example, a country that adopted mobile early, 65% of online transaction volume now comes from mobile traffic3. 
  • 76% of customers use mobile devices to purchase because it saves time4.
  • 53% of visitors will abandon the mobile site if it takes more than three seconds to load5.
  • Salesforce reports that 75% of customers want consistent experiences across multiple channels (web, mobile, in-person, social) and 73% will likely switch brands if they don’t get it6. 
  • 70% of users abandon their carts on eCommerce websites while up to 85.65% of those on mobile websites do so. Extra costs and steps till checkout were some factors cited7.

Mobile versus desktop eCommerce

Even as research finds that consumers order more from desktops than from their mobiles, mobile phones still dominate as the source of web traffic. In some segments, such as fashion, more than 75% of traffic comes from mobile devices. However, conversion rates are lower on mobile (0.6%) when compared to desktop (1.3%)8.

Mobile optimization vs mobile apps

Since they store data locally on your smartphone, dedicated apps work up faster than mobile websites. However, there are many steps that customers need to take to search, download and use an app, and thus many more opportunities to abandon the process. App development also uses a lot of resources as the experience has to be rich and rewarding beyond the initial download. Besides websites optimized for mobile, developers these days are turning to progressive web apps which are websites that function like apps.

Design for M-commerce

Any unnecessary steps that take up time till checkout should be eliminated in m-commerce. Fewer steps equals higher conversion rates. 

It’s not enough to reformat your product catalog. Sephora, for instance, included researchers, product and marketing managers as well as developers not to mention customer feedback in its app redesign9.

A small screen compared to a desktop means less real estate, so here are a few more things to keep in mind:

Smart and visual search: The search function is probably the most important feature on a mobile-optimized website. The ability for high-intent visitors to find, categorize, view, and eventually buy the product is contingent on it. Visual trends are also key in the space – text is less important on mobile than high-quality images and video, and repurposing user-generated content is another way to up the visual quotient of your site10. An example is on Lush, whose mobile-optimized website is deeply visual with a rolling feed of social-media-worthy product images. It also has a prominent search bar offering not just the product as well as articles related to it. Visual search tools allow users to search for products using images.

Gestures and thumbs: Smartphone-specific gestures such as scroll, swipe and tap can be used to increase user-friendliness on your website or app. Keep in mind that the part of the screen that your thumbs sweep across is the most valuable space, so buttons critical to the customer journey shouldn’t be on top or too close together at the bottom.

Navigation, carts and pop-ups: It’s essential to think through your information architecture. Keep menus up top and easy to access, carts and number of products there in view at all times and pop-ups to a minimum.

One-click checkout: The feature popularized by Amazon is becoming commonplace on mobile sites and apps. It requires shoppers to enter their payment information once, so that they can use the one-click option to check out without having to re-enter it. 

Speed: Your customer experience correlates very closely with how fast your site or app is. Every second you can shave off is crucial. Google is famous for citing the ‘speed budget’, or a way to optimize site or app speed11.

M-commerce trends 

With the global smartphone numbers at three billion and growing every day, the proportion of eCommerce sales via mobile devices is only set to increase12.

Here are some exciting developments in m-commerce that will be keeping developers and brand managers busy in the foreseeable future. Some trends in eCommerce in general also apply to mobile. 

Omnichannel: With features such as location-based services, barcode scanning and push notifications, retailers can extend the user experience across all their customer touchpoints. 

Personalization: As with the general trend in eCommerce towards personalization, tailored and user-centric content and communications in m-commerce is not just becoming more popular but imperative.

Social commerce: One way to make the experience personal is to integrate key aspects of the social Web that customers are used to – interactions and recommendations from friends, groups, voting, comments and discussions – before and after the purchase. Integrations include pushing purchase information to social feeds or leaving reviews on forums. Moreover, social media sites such as Facebook, Twitter, Instagram and Pinterest have all introduced shoppable posts that let shoppers make purchases without having to leave the platform

There are other trends though that are specific to mobile because of the features that smartphones and tablets offer.

Voice shopping: Every smartphone sold these days is equipped with tools such as Alexa and Siri. Moreover, 28% of US households have a smart speaker and that number is expected to rise to 75% by 202513. Voice optimization of your website to make sure your products can be found and purchased in a simple flow using voice commands is becoming a standard feature.

AI, VR & AR: Artificial intelligence (AI), augmented reality (AR) and virtual reality (VR) make it easier for customers to imagine using your products and services. They help replicate the in-store experience in many ways. Amazon offers a ‘see how it looks’ feature. Mobile chatbots are another simple way for customers to ask a question and for a website to funnel customers to the product or answer they are searching for.

Mobile payments: The rise of various digital payment intermediaries such as PayPal, Google Pay and Apple Pay are changing the game in m-commerce. The use of cryptocurrencies is ramping up as PayPal and Venmo now accept all cryptocurrencies for payment14 – but ever more present is the use of mobile or digital wallets to pay for purchases that ensure the security of user details and save even more time. 

As a whole, the array of opportunities that m-commerce can provide for a commerce brand is infinite. For a tangible example of BORN’s work in mobile commerce, check out our case study for Nestlé Gerber here.

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Footnotes

1. Tablet shipments grew in 2020, Apple still dominant, gsmarena.com, https://www.gsmarena.com/tablet_shipments_grew_in_2020_apple_still_dominant_at_number_1-news-47634.php

2. Mobile E-commerce is up and Poised for Further Growth, Statista, https://www.statista.com/chart/13139/estimated-worldwide-mobile-e-commerce-sales/

3. E-commerce worldwide – Statistics & Facts, Statista, https://www.statista.com/topics/871/online-shopping/

4. The state of personalization in mobile commerce, XP2 by Dynamic Yield, https://www.dynamicyield.com/article/50-most-important-dynamicyield-personalization-stats/

5. Google Data, Global, n=3,700 aggregated, anonymized Google Analytics data from a sample of mWeb sites opted into sharing benchmark data, March 2016, GoogleData, https://www.thinkwithgoogle.com/consumer-insights/consumer-trends/mobile-site-load-time-statistics/

6. Customer Expectations Hit All-Time Highs, Salesforce, https://www.salesforce.com/research/customer-expectations/

7. Cart abandonment statistics, Sleeknote, https://sleeknote.com/blog/cart-abandonment-statistics#1

8. 2020 Global Digital Growth Benchmarks for Fashion Marketers, Insider, https://useinsider.com/report/2020-global-digital-growth-benchmarks-for-fashion-marketers/

9. How Sephora gave its app a customer-first makeover, ThinkwithGoogle.com, https://www.thinkwithgoogle.com/marketing-strategies/app-and-mobile/app-user-experience-redesign/

10. The State of Mobile E-Commerce Search and Category Navigation, Baymard Institute, https://baymard.com/blog/mobile-ecommerce-search-and-navigation

11. How speeding up your mobile site can improve your bottom line, ThinkwithGoogle.com, https://www.thinkwithgoogle.com/marketing-strategies/app-and-mobile/mobile-page-speed-data/

12. Number of smartphone users worldwide from 2016 to 2021, Statista, https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/

13. Smart speaker household penetration rate in the United States from 2014 to 2025*, Statista, https://www.statista.com/statistics/1022847/united-states-smart-speaker-household-penetration/

14. PayPal and Venmo will offer and accept cryptocurrency for all online payments, theverge.com, https://www.theverge.com/2020/10/21/21527288/paypal-cryptocurrency-support-buy-sell-venmo-bitcoin