Developing a mobile strategy

How to make the most of new online opportunities

3 Executive summary
4 The mobile opportunity
5 A strategic approach
7 Mobile transactions
9 Key takeouts
10 About the author
Contents
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Consumers can now conduct research, interact with
companies, check prices and make purchases instantly,
wherever they are, 24 hours a day.
The implications of this shift are signicant for corporates.
Businesses need to put mobile at the centre of their online
activities, assess its impact on their value proposition
and develop accessible mobile sites. We examine how
businesses can develop an effective mobile strategy and
assess the rapidly developing mobile payments landscape.
Smartphones are everywhere: more than half of UK adults own one and global
sales of the devices recently overtook those of traditional mobile phones for
the rst time.
Executive summary
A cross-platform presence
Website users are demonstrating an increasing tendency
to switch devices when conducting online searches
according to Google, 67% of search sessions in all
industries start on mobile and nish on a desktop.
Even when consumers dont complete purchases via
mobile and they are showing a greater willingness
to do so its a vital part of the research process. In the
business-to-business arena, time-poor executives are
using mobile to research businesses and services or simply
to nd a companys phone number and make a call.
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When you sit on a train or bus and see people checking
their emails, browsing the web or accessing Facebook or
Twitter on their mobile phones, it can be hard to believe
that Apple only launched the iPhone in 2007.
An increasingly smart UK
Today 51% of UK adults own a smartphone, according
to communications regulator Ofcom, and that rose to
70% among 16-24 year-olds. A recent report by market
research rm IDC found that 216.2 million smartphones
sold worldwide in the rst quarter of 2013 accounted for
more than half of all mobile phone sales for the rst time.
Its a rapid shift and one that will only be accelerated
by the roll-out of 4G networks across the UK, Europe and
the US.
The implications for corporates as well as parts of the
public sector are signicant, particularly in consumer-
facing industries such as retail and utilities. The ability to
access the internet on the move is making consumers
increasingly demanding; they expect to be able to nd
information, communicate with companies and make
purchases instantly, 24/7, wherever they are.
The increasing ubiquity of smartphones means that businesses need
to put mobile at the heart of their online activities.
As a result, businesses need to put mobile at the centre
of their online activities. Companies cant predict what
device someones going to be using, says Alistair Dent,
Head of Pay-Per-Click at e-marketing agency Periscopix.
If Im at home, I might have two devices in front of me,
plus my smart TV and my computer. Its almost a random
chance which ones going to be at hand when I want to
perform a search.
Changing attitudes
Kate Eves, Industry Manager at Google, believes
companies are increasingly realising the opportunities and
challenges that mobile presents. One to two years ago,
when we talked to the businesses we worked with, they
would say: Why should I invest in mobile? Now theyre
asking: How should I invest in mobile? Some businesses
still need to consider what it could mean for them
indeed, Barclays recent report reveals that only 44% of
businesses that are online have a specic mobile strategy.
The mobile opportunity
51%
Proportion of UK adults who
owned a smartphone in Q1 2013.
Source: Ofcom
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So how can corporates develop an effective mobile
strategy? The starting point is to look at how they
currently sell to, and communicate with, their customers.
If, for example, youre a retailer and all your sales are
currently happening on the high street, a mobile strategy
could provide an additional sales channel and revenue
stream, explains Ruairidh Roberts, Industry Manager
at Google.
Businesses that already get a lot of online visits from
user searches will denitely want a good mobile
proposition to improve their search performance and
increase click-through rates, which will generate
additional sales opportunities.
Roberts cites eBay and Amazon as examples of
organisations that have developed very successful mobile
propositions. They have really got to grips with their app
proposition and mobile sites; they are thumb-friendly,
have good navigation and offer very similar experiences
to desktop so people know their way around.
Good research and an assessment of your current digital sites are the starting
points for an effective mobile strategy.
A strategic approach
Checklist: Key steps to developing a mobile strategy
Identify how mobile could enhance the way you currently communicate with,
and sell to, customers
Assess how mobile changes your value proposition; it can bring both
opportunities and threats
Do your research. Analyse how mobile users are navigating your current website
and then build your strategy around this, as well as what you think users will want
to do in future
Think about the context in which people are using a device: are they at home,
at work, or commuting?
Consider using responsive web design to build websites that can adapt to
whether a smartphone, desktop or tablet is being used
If your budget is limited, prioritise the development of a mobile-optimised site
ahead of an app.
A changing value proposition
Next, rms should think about how mobile changes
their value proposition. This can mean new opportunities:
a bar and restaurant, for example, might take advantage
of new apps to allow customers to pay their own bill
(rather than having to wait for it to be brought to their
table) or to send vouchers to a regular customers phone
when they enter the premises.
Businesses should remember, however, that mobile
technology can also bring challenges: Googles research
has found that 58% of men will compare the price of a
product on their mobile while in a store to see if they
could get it cheaper elsewhere on the high street.
It means that your competitors are able to be there
in the store, Eves says.


A key part of the research process is to assess your
current digital destinations and how your visitors are
using them. Eves notes that while many businesses have
analytics packages on their existing websites, they fail to
make use of the resulting data. Look at your analytics
and nd out how much mobile trafc your site is already
Consistency of experience is really
important.
Kate Eves, Industry Manager at Google
getting, she suggests, Then build your strategy around
what customers are doing on your site on mobiles, and
what you think they might want to do in future. This
should be an on-going process that continues once a
mobile proposition is up and running.
Often businesses have a website that has been developed
for desktops and laptops (and possibly tablets) but isnt
optimised for mobile devices, meaning that users may
struggle to navigate the site or give up altogether. As a
result, companies are increasingly using responsive
web design to create sites that adjust to the device being
used. Consistency of experience is really important,
says Eves.
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Start with a site
Of course, many businesses may have limited budgets to
invest in mobile. In this case, Eves and Roberts agree that
organisations should look to develop a mobile-optimised
site ahead of an app.
While apps are good for providing a specic, shortened
experience for a particular audience or user need, a new
version must be created for different operating systems
such as iOS and Android. In contrast, a mobile site offers
a broader range of content and is based around one
infrastructure that will also provide more data to inform
future strategy.
Dent, Periscopix, argues that businesses also need to think
about how the context in which a person uses a device
may affect their browsing and purchasing behaviour.
Somebody on a mobile device in rush hour is probably a
commuter; somebody on a tablet in the evening is probably
at home; while somebody on a desktop at 1pm may be at
work on their lunch break. Each one may be using the same
keywords to search, but their needs could be different.
He adds: If one has a different conversion rate from
another in terms of generating sales, thats a strong sign
about which one is a research context and which is a
purchasing context, assuming that youre making it equally
easy to complete the action you want. You can then use
that data to optimise your online marketing expenditure.
58%
Men who compare the price of
a product on their mobile while
in a store to see if they could get
it cheaper elsewhere on the
high street.
Source: Google
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The rapid pace of change in mobile is underlined by
consumers increasing willingness to use their devices to
complete transactions. According to IMRG CapGemini,
sales of 7.5bn were made through smartphones and
tablets in the UK in 2012. Their share of all e-retail sales
averaged 12% over the year triple the level of 2011
and reached 20% in the rst quarter of 2013.
Theres still work to do in this area, however. Research
conducted for mobile and web payments company Jumio
shows that 66% of consumers in the US who have
shopped with their smartphone or tablet have failed to
complete a transaction owing to obstacles encountered
during the checkout process, which ranged from excessive
complexity to concerns over security.
Todays consumers see mobile not just as a research tool but as a quick and
convenient way of making payments.
Mobile transactions
7.5bn
Total UK retail sales made via
smartphones and tablets in 2012.
Source: IMRG CapGemini
typical display and print advertisements do not feature a
direct response element. This means that the impact of
advertising is difcult to measure and sales conversion
is fragmented.
Providing mobile solutions
In response to these issues, Barclays has introduced two
new payment functionalities within the Barclays Pingit
app. The buy it proposition bridges the gap between
advertising and sales by allowing consumers to buy
directly from any form of digital or printed collateral,
simply by scanning a QR code. The mobile checkout
functionality collapses the m-commerce process into
three easy steps, enabling a secure and consistent
mobile-optimised checkout experience.
Walters explains: Were trying to provide solutions to
help corporates interact with consumers. The easier they
make it for the consumer, the faster they get paid and
the better the customer experience. With such a strong
response in the market, Barclays Pingit can allow forward-
thinking corporates to enhance their mobile strategy and
engage with their consumers on another level. We
recognise that our corporate customers face a large
number of fast-developing challenges and our absolute
aim is to help them achieve their ambitions.
Simple and secure
Making payments from smartphones as simple, efcient
and secure as possible will be essential to sustain mobile
growth and generate further opportunities for business.
Thats certainly the philosophy that has underpinned
the development of the Barclays Pingit app, according
to Mike Walters, Head of UK Corporate Payments at
Barclays. We started by looking at the needs of our
corporate clients customers, he explains. Our approach
to mobile payments is very much based on the idea that
the consumer market and consumers access to,
and use of, technology is changing very quickly.



Barclays Pingit allows anyone, not just Barclays customers,
to use their smartphone to make payments direct from
their bank account by entering a ve-digit pin. Originally
developed by the retail banking division, the app can now
be used by corporates looking for a low-risk way to enter
into mobile commerce.
He adds: Weve learned how important it is to be specic
about what were trying to achieve. Weve been really
clear and crisp about what each release does and focused
on making the app as simple as possible for consumers
and corporate users.
So far Barclays Pingit has been downloaded 1.8 million
times. The average value of transactions completed via
the app is 75, and some consumers use it to make the
maximum 15,000 payment to corporates. Walters says
that consumers trust in banks to move their money
has been a big enabler for this growth and has allowed
Barclays to create a secure and reliable environment
where people can complete transactions with a wide
range of different businesses.
According to Walters, mobile commerce has grown by
250% in the last two years; this growth is reected in
the corporate uptake of the app.
Many of the payment solutions in the market today have
not been optimised for an m-commerce environment
and this is reected in high abandonment rates within
mobile checkouts. There is also a lost opportunity where
1.8 million
Total downloads for the
Barclays Pingit app.
Source: Barclays
To read more about Barclays Pingit
for corporates, click here
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Were trying to provide solutions to help
corporates interact with consumers.
Mike Walters, Head of UK Corporate Payments at Barclays
To nd out more about how we can help you, visit
barclays.com/corporatebanking, or contact your Relationship
Director on 0800 015 1921
*
.
Key takeouts
Rapid growth in sales and use of smartphones is making customers more demanding: they
increasingly expect access to information on mobile devices and instant communication
with businesses
Businesses are now asking how they should invest in mobile rather than why
Mobile needs to be integral to everything that you do online nearly half of all online
businesses have a specic mobile strategy. Do you?
Mobile can change a businesss value proposition, creating both opportunities and threats
Organisations with limited budgets should prioritise the development of a mobile-optimised
site, using any existing web analytics data to assess users needs
Mobile has particular implications for retailers: 58% of men compare prices on their mobiles
when shopping in store
Barclays development of its Barclays Pingit app, which allows customers to send and
receive payments using their mobile phone, makes it well placed to offer help and support
on mobile commerce.
*To maintain a high quality of service, your call may be monitored or recorded for training and security purposes. Calls to 0800 numbers are free of charge, when calling from a UK
landline. Charges may apply when using a mobile phone or when calling from abroad. Lines are open from 8am to 6pm Monday to Friday.
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Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority
(Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered ofce at 1 Churchill Place, London E14 5HP.
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Jane Galvin
Head of Mid-Corporates, London
Jane Galvin is Managing Director and Head of London
Mid-Corporate Banking. Jane has held a variety of roles
at Barclays for over 25 years within both the retail and
corporate environment. She possesses a wealth of banking
experience and has led senior teams through challenging
times. Jane is focused on shaping the future growth of
the key mid-corporate banking market in London and
additionally has responsibility for the wider UK strategy.
Prior to this role, Jane was Head of Professional Services
for Corporate Banking and led a team of Directors in the
UK and US, working in partnership with rms to support
their global strategies.
Jane is a regular speaker at events on a variety of topics
from law rm nancing to women on boards.
M: 07775 543645
E: jane.galvin@barclays.com
About the author