If you happen to be one of the 6.4 billion smartphone users worldwide (80% of the world’s population), you understand how your daily routine depends on it. Checking your inbox and scrolling through the news feed have become our new habits, having multiple video calls with colleagues throughout the day, and social media before bed—most people have their phones around them all the time.
What’s more, people also use smartphones to save time—paying for food delivery or doing online shopping have become common practices. That’s where m-commerce steps in and helps users make their online transactions more convenient.
In this article, we’ve expanded on the difference between m-commerce and e-commerce and handpicked the latest stats and trends in mobile commerce to help you monitor customer behavior and make strategic improvements on the fly.
What Is M-Commerce All About and Why Should You Use It?
Innovative m-commerce technologies enable customers to scroll through online stores and place their orders without laptops or desktop computers. We use smartphones to order a new outfit sitting in a taxi on your way home or buy courses on your favorite learning platform.
Apart from shopping, m-commerce is a great way to use online banking, manage your bills, and pay for numerous services with your mobile device.
But still, how is m-commerce different from e-commerce? Electronic commerce enables customers to buy online using their computers, while m-commerce involves the use of mobile devices. It’s uncomfortable to use laptops on the move, making it challenging to conduct transactions fast and efficiently.
What’s more, mobile commerce allows retailers to interact with consumers in a more personalized way. User-friendly push notifications, AI integrations, one-click checkouts, and various payment options provide customers with personalized shopping experiences, motivating them to become repeat customers.
In addition to personalized shopping experiences, mobile commerce is also an extra marketing channel. With special prices and free shipping for app users, mobile-only offers, coupons, and promo codes, such apps can go viral and leverage their customer base much faster.
We shortlisted the core benefits of using m-commerce for e-commerce businesses:
Mobile commerce sales are predicted to hit $3.56 billion by the end of this year, which means this shopping channel is likely to stay even after the pandemic is over.
With a more straightforward checkout process, personalized push notifications, and convenient online transactions, customers are more encouraged to make purchases using their mobile devices.
So if you want to satisfy customer needs and generate more revenue, building an app for your retail business is a must-have to stay afloat in such a saturated market.
Enhanced Customer Experience
Intuitive navigation inside an app, social media integration to share feedback, and personalized push notifications encourage customers to use such apps again and again.
Equipped with a user-friendly app, it’s much easier to grab your customers’ attention by providing them with a personalized buying experience and seamless user journey.
Extra Marketing Opportunities
With an e-commerce app, you have an opportunity to reach your customers directly and integrate your solution with social media platforms. You can encourage your audience to share feedback, communicate with each other, and spread the word about your company.
When your app goes viral and becomes popular with your audience, you can monetize it by placing in-app ads to drive more revenue.
Mobile analytics can provide you with lots of insights into customer browsing history, patterns, and user behavior.
This data can be used to boost customer retention and provide your audience with more unique and personalized offers like segmented promotions and recommended products.
This sophisticated mobile analytics will enable you to target your consumers with relevant offers that are more likely to convert.
The Latest Trends in Mobile Commerce to Follow in 2022
Did you know that businesses save up to 30% in customer support costs with the help of AI-powered chatbots? Such a solution is a great way to optimize resources and provide consumers with high-quality service.
Chatbots can be used to answer customers’ queries 24/7, help them find certain products, resolve simple issues, and even place an order.
These smart assistants can mirror human-like communication and discern customers’ needs, making it much easier to provide users with a personalized experience and keep them engaged.
Dominos uses a smart chatbot to help customers choose a pizza, re-order any of their previous purchases, and estimate the delivery time without leaving a Messenger.
One-click ordering enables m-commerce apps to store customers’ data in their profiles so they don’t have to re-enter this info manually. It will save your customers’ time and boost your sales.
It’s annoying for a user to re-enter their name, address, and card info every time they want to buy in your store. As a result, mobile has an average cart abandonment rate of 85.6%. Using one-click ordering, customers save their time, so this m-commerce trend is going to stay with us.
With Amazon’s one-click ordering, consumers can choose a default shipping address and payment method.
What’s more, if a customer wants to buy five goods at once, the company won’t charge them for shipping five times. Instead, it will group these orders together to reduce shipping costs.
Progressive Web Apps
A progressive web app is a technology that enables users to “install” a website on their smartphones and use it as an app. PWAs behave like native apps and require less space on mobile devices.
These apps also provide users with such benefits as instant updates, push notifications, offline access, and short loading time. A customer can install an app from the web browser and access it from their device’s home screen.
Starbucks’ PWA was built to let customers look through the menu and place their orders on the go even without a stable Internet connection.
This responsive and fast PWA feels and behaves like a native app and provides customers with content-specific animations, nutrition information, and customizable orders.
Voice shopping enables consumers to use virtual assistants like Siri and Alexa to buy online. Since 71% of customers prefer to use voice search instead of text, businesses can benefit from using this mobile commerce future trend. With voice shopping, customers can place their orders while cooking dinner, waiting for a taxi, or taking a walk.
Consumers use voice commands to search for a specific product, track their orders, add items to a shopping list, and make transactions.
M-commerce statistics show that voice shopping is estimated to reach $40 billion in the upcoming year. Thus, if you don’t want to fall behind, optimizing your app for voice search has become a vital practice to keep your business afloat.
Walmart enabled customers to voice shop with the help of Siri and Google Assistant. To activate this feature, users just have to say “Talk to Walmart” to their virtual helper.
This solution enables customers to fill a shopping cart with groceries, apply a promo code, set up delivery time, and proceed to checkout.
Augmented reality isn’t limited to gaming Businesses benefit from interactive experiences built with AR to showcase their products and let customers try them on before making a purchase.
Augmented fitting rooms are used to try on different clothing combinations or furniture recommendations.
Buyers can make sure this bed will fit into their interior. AR has become a fantastic tool to boost customer experience and change the entire concept of shopping.
The AR app market is expected to reach $15.5 million by 2022 so it’s time to start following this m-commerce trend to outpace your rivals and generate more revenue.
Warby Parker built an app that allows customers to try on an extensive range of glasses without leaving their homes. Before making a purchase, users can also share their selfies with friends, which increases engagement and brings more users to the app.
Thrilling M-Commerce Stats to Check Out
- M-commerce market size is predicted to hit $3.6 billion by the end of 2021.
- About 89% of grocery shoppers use their mobile devices while visiting physical stores.
- Mobile accounted for 68% of paid search click share in Q2 2021.
- In 2020, mobile commerce revenue in the US reached $339 billion.
- Almost 80% of users have bought online using their mobile devices within the last six months.
- Mobile commerce sales are predicted to jump up to $432.2 billion by 2022.
- More than 51% of users prefer mobile web apps to other shopping channels. Customers claimed web apps are convenient and have consistent UI.
- Voice commerce sales are expected to generate $40 billion by 2022.
Mobile Commerce Examples: 3 Companies Dominating the Industry
One of the largest educational platforms worldwide, Coursera helps users hone their skills in various areas, from physical science to humanities.
Coursera has 87+ million students and collaborates with such leading companies as Google, IBM, Intel, and Microsoft. The company also partners with Duke University, Eindhoven University of Technology, Yale University, Copenhagen Business School, Berklee College of Music and more.
Students can enjoy both free and paid video courses, get certificates, and even earn a college degree at home.
Coursera managed to bring its robust desktop UX to the mobile application, which let students from developing countries learn without limits. As a result, 20% of students use Coursera only on mobile devices. With $293.5 million of annual revenue generated in 2020, the company is expected to grow its value for years to come.
This huge retail corporation takes mobile shopping to the next level by offering exclusive features to app users. Customers can save gift cards to their smartphones and use them at checkout.
With special offers for mobile users and services like curbside pickup, Target’s Q1 sales grew by 23% to $24.2 billion.
App users can also scan the barcode to apply all their special offers, from gift cards to RedCard exclusives to save on their purchases.
The app also enables customers to order with Drive Up, allowing them to wait for their orders in a car.
Sephora is a renowned chain of cosmetics stores that allows all makeup addicts to try on hundreds of products from the comfort of their own homes. Virtual Artist is a sophisticated app equipped with faсial recognition technology.
The app scans customers’ faces to ensure accurate product placement. Then, users can browse hundreds of makeup products and try on a certain foundation or lip gloss.
Apart from this feature, users can compare swatches, match their makeup to the most suitable outfits, and recreate the latest makeup trends.
It’s a great way to encourage consumers to stay home during the pandemic and let them interact with their favorite store online.
Stay Aware of the Hottest M-commerce Trends with LITSLINK!
Mobile commerce growth shows no signs of stopping in 2022. Thus, it’s crucial to adapt your business to changing customer needs. Whether you need to enrich your app with a smart assistant or want to build a sophisticated PWA, LITSLINK is here to help!
With our app development agency, it’s much easier to build scalable and recognizable m-commerce solutions and ensure your users enjoy secure and convenient online transactions, one-click ordering, voice shopping, and intelligent chatbots.