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News and Events
M-Commerce at NRF's
Wednesday, Jan. 12, 2011
One of the main topics at the NRF 100th Annual Convention (Retail's Big Show) in New York this past week, was m-commerce. By 2012 more than 50% of all sales will be mobile-enabled in some way. The challenge that retailers have to overcome is how to integrate this new channel successfully.
In the seminar “Using Mobile Payments to Increase the Base of Contactable Customers” by Richard Crone, CEO& Founder of Crone Consulting argued that the use of mobile payment is the key to connecting to more customers. The rule is- The One Who Enrolls, Is the One Who Controls. The main goal of retailer is to move a customer from anonymous to contactable, to hopefully make them a loyal customer. If you can get customers to integrate your App through their whole shopping experience, they will be contactable for the retailer.
Customer usually use mobile to locate stores, research prices, or to find coupons and reviews. Mobile is an enabler channel- it is included in almost every other channel. Consumers use it increasingly in their in-store shopping experience. For example, when shopping in a mall the customer can use his smart phone to locate the store, to compare prices or to read product reviews. Barcode scanning has increased 700% last year. However, once the customer is in a store, Crone argues, that the cross- channel self-service has to be optimized. This is achieved by motivating the customer to pay through their mobile. As the rule is, The One Who Enrolls, Is the One Who Controls, mobile payment increases mobile engagement with that retailer.
M-Commerce has to be a customer driven model, and redefines the 4 P’s.
Place- Locator app, In-store locate products
Promotion- customized to area, demographic
Preference- customization of recommendations, coupons
Payment- easy mobile payment!
The integration of mobile allows the retailer to customize the customer’s shopping process through their whole purchasing journey. They key is to get customers enrolled…which is achieved through mobile payments!