How One-Touch Payment May Solve Retail’s Mobile Challenge

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PayPal recently released a one-touch payment method that aims to make the checkout process simple on mobile devices. The e-commerce company is one of many to attempt to tackle the mobile commerce problem. Despite solutions like this, mobile shopping has yet to hit a critical mass. Consumer frustration is to blame. Not enough retailers are making the online checkout process simple, and that frustrates on-the-go consumers with limited time to shop. The slow growth in mobile revenue is encouraging retailers to seek out improved methods to solve their mobile retail problem. The question becomes: are these solutions working?

According to a new study from email service provider Yesmail, the answer is yes and no. The number of mobile orders driven by email is up 40 percent in just one year, indicating that mobile commerce adoption has grown tremendously. However, the same study also found that mobile repeat purchases driven by email were down 40 percent in Q2 2014. This contrast indicates that consumers are purchasing on mobile more frequently than last year, but they may not be brand loyal when they make purchases on the go. This suggests that the mobile user experience is lacking in some way; otherwise, it would be natural for consumers who never step away from their smartphones to shop with them.

Furthermore, the mobile user experience is not encouraging consumers to spend. According to Yesmail’s report, revenue from mobile purchases has increased 10 percent in the past year. While this is a positive change, revenue is not keeping up compared to the number of mobile orders. In fact, the average order value of mobile purchases has declined 30 percent since last year. The key takeaway from this: consumers are buying more frequently on mobile devices, but they’re not making high-value or repeat purchases.

Again, disconnect between mobile revenue and orders can be attributed to a poor mobile customer experience. Retailers should combat the mobile revenue issue now in preparation for the holidays. Here are four ways to engage on-the-go consumers and make mobile shopping simple:

 

●      Use responsive design throughout the purchase cycle. Not only should marketing emails be optimized for the mobile screen, but so should websites, starting from landing and product pages, to checkout pages.

●      Reward Your Mobile Readers. With half of consumers checking email exclusively on mobile devices, all retailers should offer discounts and rewards via email that consumers can redeem exclusively through their mobile device online or in-store. This encourages mobile customers to either purchase from their device or stop in a store, which integrates the online and offline customer experience.

●      Use cookies. Cookies enable a faster checkout process because they store customer information on the mobile site. Autofill customer information saves time and makes it easy to fill in password and contact information.

●      Offer alternatives. Offering multiple payment methods makes checkout easier for on the go shoppers. Because of frequent credit card breaches, many customers are wary of entering credit card information on their mobile devices. By offering secure payment methods such as PayPal or Venmo, brands can eliminate that concern.

Getting mobile subscribers to click on emails is more difficult than getting those on PCs to click, so it should not come as a surprise that the same holds true for mobile purchases. With that said, as mobile becomes universal, it will also become imperative for retailers to capture the mobile consumer. By following these best practices, marketers set their brands up for success.

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