Simply put, Mobile commerce is also sometimes referred to as m-commerce which involves shopping through a mobile device (mostly smartphone), and all transactions are performed over a mobile device. It mostly aims to enhance CX on smartphones which will eventually drive higher conversion rates and revenue. Typically, m-commerce is classified into three categories, mobile shopping, mobile finance, mobile payments, and digital wallets.
Understanding Mobile commerce
The phenomenal growth of mobile devices and the ease of internet access is dominating the new generation and is the reason behind m-commerce. As more and more customers are switching towards m-commerce (mobile commerce), it’s the next step in the evolution of eCommerce. It’s no secret that customers prefer to shop on mobile phones and put all of the retail world at consumers fingertips. They get the convenience of shopping from anywhere and anytime and get easy access to customer support via a simple text.
Types of Mobile Commerce
M Commerce helps in Mobile Shopping:
The mobile device plays a significant role in the success of mobile shopping. But what a customer expects today is an omnichannel experience. They want their brands to be available on their preferred channel. For instance, if a customer scans a QR code in a retail store, they can do the shopping on Viber Chatbot and continue their shopping.
M-Commerce helps in Mobile Banking:
Mobile banking is also popularly known as “Net Banking,” which is like online banking. Financial institutes, especially banks, use both SMS, apps, and chatbots to send out alerts and account activities. With the help of the WhatsApp Chatbot, customers can view their account balance, bank statement, fund transfer, review loans, and many other transactions by just communicating via WhatsApp in real-time.
M-Commerce helps in Mobile Payments:
Mobile payment is an alternative to the traditional channels of payments such as cash, cheque, and credit/debit cards which are also known as Mobile Money Transfer, mobile money, or m-payments. Due to physical distancing, customers prefer to use contactless payments, and that is where mobile payments come in handy.
Benefits of using Mobile Commerce
Better User Experience:
UX is one of the most critical components when customers are purchasing via smartphones and tablets. Personalization also helps to provide a unique and relevant user experience to the customers. For example, if a customer wants to buy a product from a mobile website and with the WhatsApp Chatbot button, they can initiate a conversation over WhatsApp. This makes a conversation between customer and brand fast and convenient.
Provides a Seamless Checkout Process:
When a person buys from a traditional website, it takes a bit longer time to complete the transaction. But on the other hand, if a customer does the marketing via Viber Business Messages, then all the lengthy checkout process is minimized and provides a seamless check-out process. With a great purchasing experience, your brand is bound to attract more customers and have a high chance of turning your existing customers into repeat customers.
Newer Channel to Reach Out to Customers:
Traditional websites have been there for many years, but mobile apps would be a different experience for a customer to purchase. All the functionalities that a typical website has can be given a mobile app, like the search feature, product prices, resources section, and many more. The push notifications added with discounts can help you increase your sales. All the tailor-made functionalities are available that will let you target your customers.
Mobile Commerce: Disadvantages
Customers have a lot of concerns with the safety of their private information, and sometimes they are not ready to share it with the brand. For instance, for online payments, brands ask for a credit or debit card number and bank account details, and many customers have trust issues with sharing personal information with a brand.
If a customer is purchasing online, they need an internet connection to complete the transaction. There’s a penetration in internet service still in rural areas. We see a lack of smartphones and internet connections. Without a proper relationship, your customer will not be able to view the mobile design, and the brand might miss the selling opportunity.
The mobile transaction which is done to buy any product may add up shipping costs. But setting a minimum for free shipping and low cost for shipping the products will encourage buyers to continue shopping and will increase the number of sales.
The Future of Mobile Commerce:
We all know that the future of mobile commerce looks positive and more promising. It’s going to attract more retailers, and we will see more m-commerce apps in the future. The chatbots are gaining more attention there will be more integration seen in mobile banking. Mobile accessibility is changing the behavior of consumer habits. The shopping experience remains the same on mobile devices as compared to brands’ websites. In fact, more they get more new features and personalization while using mobile apps.
Brands are optimizing m-commerce has enhanced their shopping experience. And with minimal effort, customers can purchase the right product and enable them to complete their purchase in one go. Smartphones are an inseparable part of our lives now, and the capability that m-commerce holds in the future is unremarkable to change consumer shopping habits. To make your m-commerce more dynamic and wish to deliver better CX, our experts will help you out.