21 Apr 2011

Banks Are Going Mobile

For years people have logged on to their bank's website. In fact three in four consumers have logged on to their bank's (or other financial institution) website. But with the possibility to distribute apps for Android and iPhone the banks have found a new way to service their customers.

Despite the fact that the mobile phones are not used as widely for doing financial transactions as other methods the consumers seem to embraced this possibility. A report by Comscore shows that one in five credit card holders have logged on to their account with their mobile phone. They have done this via a mobile browser or a downloaded mobile application.

Channel usage among mobile phone users      Primary method        All methods used
Go online to my financial institution's web site                  59%                          74%
Call the company on the phone                                         17%                           51%
Logged on via my mobile phone's Internet browser              4%                           16%
Logged on via an application via my mobile phone              3%                           13%
Via text message alerts on my mobile phone                       2%                           13%
Source: Comscore (April 2011)

See also my blog post Banking Is An Online Business.
Download Online Credit Card Report from Comscore.

Banking Is An Online Business

If you think the queue is getting smaller in your bank, you might be right. Credit cardholders are logging on to their account more frequently than few years ago. Last year 76 per cent had logged on to their account which is 5 per cent more than in 2009, according to a Comscore report.

One in five log on to their account at least once a week and 17 per cent log on more than once a week. There is, however, a large group which have never logged on to their account. 24 per cent say they have never logged on to their bank's (or financial institution) web sites but this group is getting smaller. Compared to last this group is 5 per cent smaller.

Frequency of visit to bank's website       2009        2010
Log on more than once a week                     15%         17%
Log on once a week                                     15%         19%
Log on twice a month                                   17%         17%
Log on once a month                                    15%         15%
Log on less than once a month                        8%          8%
Have never logged on to the website             29%         24%
Source: Comscore (April 2011)

See also my blog post The Banks Are Going Mobile.
Download Online Credit Card Report from Comscore.

9 Apr 2011

Half the Population Uses the Mobile Phone when Shopping

Every second consumer in the U.S. uses his mobile phone to help decide which product to buy. And this is before the smartphone has really caught on America. In a study by Leo Burnett & Arc shows that the way we are shopping is forever changing – once again. And you better get in the game because shoppers are beginning to develop preferences for retailers which enable them to use their mobile phone while shopping. But we, the retailers, are not ready, quite yet. How many has a mobile site, an app for iPhone or Android; or even a site scalable for the mobile phone?

The way of involvement is changing
It might seem that high involvement shopping is now done more casually. Or is it? It’s just done differently. When buying expensive products which usually demands more consideration the research is done via the mobile phone on the go. On the other hand, giving an (almost) endless number of opportunities simple tasks are now done with more consideration than we are used to because consumers can customized interactions and experiences. A drink at a bar is not just a drink.

What is m-commerce exactly?
Shopping with the mobile phone can mean a lot of things from searching for a product, comparing products and finding prices. But it doesn’t stop there shoppers do also research benefits, gather information about where to buy it - and then actually buying the product. The shopping experience can also include activities done after the purchase, such as returning or servicing a product, sharing the purchase on Facebook and Twitter. Mobile shopping includes using the phone to facilitate any part of the shopping experience, from looking up a shop address, to reading reviews, sharing photos of the item, tweeting price details or using online shopping tools to help see the product.

How to succeed in m-commerce
If your shop is to become a success in the changing landscape, you must give the shopper a value-added mobile app and website. To reach all types of mobile shoppers, retailers should activate both mobile on the go and mobile in-store interactions. This can be offers on m.website and on Foursquare, Facebook places and related services.

Download the Whitepaper from Leo Burnett & Arc.

3 Apr 2011

Will Facebook Commerce Kill E-commerce?

Does F-commerce (Facebook commerce) mean the end to e-commerce as we know it? According to Adgregate Markets and Webtrends it might just happen. The two companies state that major companies (Fortune 100) are experiencing a decline in visits to their websites. Last year 68 per cent of the top 100 companies were experiencing fewer visits on their websites with an average drop of 23 per cent.

Traffic is increasing on Facebook
At the same time there is an increase in visits to companies' Facebook fanpages in general. In a sample of 44 companies, 40 per cent experienced higher traffic to their Facebook page compared to their website. In this sample 65 per cent (13 companies) of non-e-commerce companies received more unique visits to their Facebook fanpage compared to their website. However, e-commerce companies did better than non-e-commerce companies. 5 companies did have promising Facebook trends and 77 per cent did drive consistent traffic to their websites, although experiencing a decline in annual visits.

Conversion rates
Conversion on Facebook isn’t bad either. Facebook commerce conversion rates range from 2 per cent to 4 per cent which is equal to e-commerce websites which has a 3.4 per cent average according to Forrester and shop.org. The average order value is $104 (£64.5; €73.06) with 24 per cent growth month over month.

What to think and do?
Well, the numbers are there but does this mean that e-commerce will be replaced by F-commerce? Time will tell, but probably not. What it means is that in our struggle to care for both e-commerce and m-commerce (mobile commerce) we just have another channel to tend to: F-commerce. And let’s be honest: It’s great! So if you want to nurture this channel you need as a minimum to have a shop tab on your facebook fanpage giving your customers a shopping experience equal to one you give them on your website.

See Whitepaper from Adgregate Markets and Webtrends.

Women Shop More Frequently but Men Spend More pr Purchase

Women shop more frequently than men and that for the third year in a row. It may sound like a myth but it is not, according Deutsche Card Services (German Credit Card Services) which has investigated around eight million selected transactions on their platform. This is supporting a blog post I made last year about the same topic.

Six out of ten transactions in European online shops are done by a woman. Women might shop more frequently but men tend to use more money per purchase. A man has on average articles worth €93.12 (£82.23; $132,55) in his shopping cart when he makes his purchase. This is €24.47 (£21.61; $34.83) more than a woman usually has. Unfortunately, men are not always happy with their purchase. When shopping for less than €500 (£441,53; $711,7) chargebacks involving men are 0.0926 per cent meanwhile women only account for a third of that. Only when shopping for more than €500 (£441,53; $711,7) do women have a higher return rate.

See press release from Deutsche Card Services.