Mobile Commerce-Concepts,

Benefits, Models and Emerging

Trends in Mobile Apps
Unit-4
Topic-4
 Outline
• M-Commerce and Its Concept
• Benefits & Models of M-Commerce
• Emerging Trends in Mobile Apps

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 Objectives
• To understand the M-Commerce and Its
Concept
• To gain insight about Benefits & Models of M-
Commerce
• To understand Emerging Trends in Mobile
Apps

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 Introduction
The simplest way to describe mobile commerce
would be the buying and selling of products – or
the conduct of commercial transactions and
activities – through telecommunication and other
mobile devices that run or operate on wireless
network technologies.

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 Continued……..
It is safe to say that m-commerce is an upgraded
version of e-commerce. In fact, m-commerce has
been defined as the conduct of e-commerce
activities using mobile or cellular devices. If
business transactions involve the use of wireless
telecommunication networks, then it is highly
likely to fall under m-commerce.

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 Continued……..
While terminologies such as internet banking,
electronic money transfers and online shopping
were very exciting and phenomenal in the past
decade, what excites consumers now is mobile
banking, money transfer via mobile and mobile
bookings among many others.

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 M-commerce vs. E-commerce
Between e-commerce and m-commerce, the latter is the
newer concept, seeing as mobile technology had not
exploded until about two decades after the internet was
able to be used to conduct commercial transactions
using electronic systems.
While e-commerce mainly makes use of computers, and
requires internet connectivity, m-commerce uses mobile
devices such as smartphones, PDAs, tablets and it relies
mainly on an internet connection provided by wireless
telecommunication networks.

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 Continued………….
One of the major advantages of m-commerce over e-
commerce is portability and flexibility. While internet
connectivity is required in e-commerce, that is not the case in
mobile commerce since these devices come with their own
connection to the internet using telecommunication networks.
Since the mobile devices are also smaller and more portable,
users can literally conduct commercial activities anywhere,
even in places with no electricity. This means, that usage of m-
commerce is also broader, thanks to this portability feature.
The rise of m-commerce has certainly boosted e-commerce as
a whole, since users are given more options on the platform
and tools, and a majority of the limitations that they have
encountered in e-commerce do not exist in m-commerce.

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 Benefits of M-Commerce
#1 Faster purchases

Yes, many sites have mobile versions, though apps are generally 1.5
times faster when loading data and search results on mobile devices.
Moreover, there is no need to pull data from a server and so
customers can browse and purchase products faster. As mobile
ecommerce apps offer same functionality as desktop apps, people may
purchase items directly within an app.

M-commerce revenue has been rising at 30-40% rate annually since

2014, and by the end of 2017 is expected to reach $150b total. The
biggest retail app Amazon increased number of customers from 43
million in 2015 to 67 million in 2016. The reason for such
achievements is intuitive mobile browsing, which in turn drives sales
up.

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 Continued……….
#2 Better customer experience
Because it matters. People are well familiar with how smartphones and tablets work,
so they already know how to navigate to desired products in few clicks. In addition to
purchases, customers can share their joy of bought goods with friends, or ask for
advice from community of shopaholics. Smooth customer experience equals better
conversion rates and revenue.
To reach these goals, your online shopping app should be:
• Fast
• Convenient
• Interactive
• Exclusive
From a customer standpoint, the biggest benefit is simplicity and speed. The easier
overall buying process on the app is, the more sales it brings. Add to that exclusive
features (notifications, discounts, etc.), payments and other branded elements and
you’ll have happy customers. By the way, 83% of customers used smartphones inside
real stores to shop, according to Marketing Land.
The effect: convenient shopping, interactivity and ease, improved customer retention.

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 Continued……….
#3 Direct connection to customers (push notifications)
This is something that is impossible with a website. Of course, one may
send email messages about new products or seasonal sales, but that
channel loses badly to direct customer notifications via mobile app.
Push notifications are both instant and unobtrusive at the same time,
that’s a truly nice option for businesses. And one of the major reasons
to have a brand ecommerce app.
Shoppers get such alerts when they open a mobile app, and may get
them even without activating an app. 50% of users like notifications,
and 80% of users say offers and rewards make them more loyal to a
brand. This is personal communication, if you look at it from another
angle, store to customer directly. Most of people perceive informing
about news or discounts as care, and they want exclusive stuff.
The effect: direct alerts about new products, updates, discounts and
promotions. Personal engagement.

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 Continued……….
#4 Tailored content
Based purely on individual preferences and shopping patterns with a
mobile app you can deliver personalized content to customers. And
they love it (if you don’t overdo it, surely). User location, interests,
social media profiles, items viewed, etc. all can be utilized to bring
people what they need.
With a mobile app you can set such preferences based on gathered
customer data. An app then tracks users’ behavior and offers
recommended items in real-time. In most cases, it translates
into higher customer loyalty and outreach. The more specific and
personal, the better. A good example here is The Amazon app. In first 2
years since launch, Amazon mobile app has served 1,000,000
customers.
The effect: better engagement, expanded reach, customer loyalty.

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 Continued……….
#5 Deeper analytics
Knowing your customers equals prosperity in business these days.
Knowing customers demands data, at least very basic information like
age, sex, location, shopping history. Within your mobile app you may
build and set user analytics of various levels of sophistication. It
depends on your business strategy and a budget available to make an
app.
With such data you will understand your target audience much better,
and will be able to increase sales. Names, phone numbers, emails,
buying patterns and lots of other things in store. For
instance, Walmart app that 22 million customers use every month,
uses mobile data, online data and sales data combined to deliver
better customer experience. It is a whole and enormous infrastructure.
The effect: rich customer data, shopping patterns and behavior, trends
and better forecast options.

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 Continued……….
#6 Cost reduction and productivity
By reaching your audience faster with a mobile app you obviously cut
down marketing campaign costs. If an app has social media
integration, users will do their part too in spreading the word. You can
even earn from placing ads within your app later on.
Besides, app development, maintenance and support are
cheaper compared to a web store or other selling points. For instance,
average app maintenance cost is 20% of initial development price. So,
for an app that has costed you $50,000 you would have to spend just
$10,000 annually for support. And with all customer data collected,
you can boost your business up to 40%.
The effect: reducing costs, marketing campaigns more effective,
overall business productivity.

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 Continued……….
#7 Store navigation/geo-location
Mobile apps have a much better competitive (technical) in regard to
marketing opportunities. Front and back camera, scanning codes, positioning
system for location, compass, accelerometer, gyroscope and other build-in
features can be used for commercial purposes. One of the top benefits of m-
commerce solutions is navigating users to nearest stores in their vicinity via
GPS.
This shortens the time for customers to find your store and make a purchase.
When a user is on vacation in Sweden let’s say, and he/she wants to visit one
of the stores of famous IKEA, he can open their app and walk after route
pointers. There’s even an indoor navigation in newest apps. Home Depot app
(iOS/Android) has recently added store maps and aisle (!) maps, with
approximately 40,000 items in each of their stores.
The effect: increased store visiting, more branding options, fun experiences
for users.

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 EMERGING TRENDS IN MOBILE APPS

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 Emerging Trends in Mobile Apps
Cloud Technology Finally Finds It’s Place: No surprises
here. From the average consumer to the tech professional,
everyone has heard about the benefits of cloud technology,
and how it can to change our collective lives. Today, cloud
computing is not only fast, easy to deploy, and inexpensive;
but also makes a good working argument for both large-
scale enterprises and small mom-and-dad joints.
Dropbox, OneDrive, and Google Drive are just the tip of the
iceberg, as in 2018, we can expect new powerful apps which
directly run on the cloud and take minimal space in the
phone storage. Syncing data – working on an app on the
phone and then continuing it from a tablet or desktop will
also see a huge acceptance.

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 Continued………
Enterprise Mobile Apps Get a New Lease of Life: It’s not a
secret anymore that more and more developers are
gravitating towards developing enterprise mobile apps. The
reason being that such apps, which make it easy to keep large
teams connected, as well as track key metrics and KPIs, are
now required by almost every small and large business to
some extent.
43% of the enterprise app developers earn more than $10,000
per month, as compared to the 19% of the developers who
develop consumer-focused apps. Enterprise app stores are
also predicted to become the next big thing, as with more B2B
interaction, a tremendous opportunity will be offered to new
developers.

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 Continued………
IoT will Open New Possibilities: IoT, or the Internet
of Things, is already a $19 trillion industry, and over
the next five years, more than 5 billion people are
expected to be using an IoT-driven technology in
some form or the other. Today, IoT is present in
modern wearable technology, smart thermostats,
smart bulbs, dimmable streetlights, etc.
In the coming year, expect this technology to be
rapidly adopted for mobile application
development, while allowing for more personalized
user experiences across a variety of devices.

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 Continued………
Location-based Wi-Fi Services Become Commonplace:
Mobile location services and Beacon technology are now
starting to blur the boundaries between online and
offline advertising, especially in the retail sector. Apple
had already integrated the technology within iBeacon,
and in 2016 Android followed suit.
In the following years, Wi-Fi will be used for more than
just internet access, as more and more public hotspots
would also double up as location access points. App
developers are also expected to follow suit, by building
apps which take advantage of such location-based Wi-Fi
services.

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 Continued………
m-Commerce to be the Next Great Opportunity: As e-
commerce giants such as Amazon and eBay flourish, the
usage of m-Commerce apps is also expected to increase
in the coming years. With more smartphones featuring
technology such as NFC, Fingerprint recognition, etc.,
using a mobile phone to pay for transactions, amongst
others, will also find ready acceptance. Developers will
also have the opportunity to build m-Commerce apps
which can provide additional functionality to the
consumer. Read our article which describes the models,
benefits, and future trends of mobile payment solutions.

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 Continued………
In-App Advertising and Purchasing Will Grow
Steadily: With a growing number of smartphone
users using their mobile apps to perform mundane,
day-to-day tasks, the revenue generated from in-
app advertising and purchasing is also steadily
increasing. According to the latest figures, in-app
purchasing from mobile devices touched
approximately $9 billion in 2017. In the coming
years, expect application development trends to
move away from simple banners and integrating
advertisements in a fun, non-obnoxious manner for
the end-user.
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 Continued………
Application Security Becomes Necessary: With rapid
technological advancements being made on a daily basis,
application security, as well as general smartphone
security is a major concern. Currently, most of the top
100 apps in the Google app store have already been
hacked, and the picture isn’t that pretty on the iOS side as
well.
Therefore, with Google, Microsoft, and Apple all raising
the stakes and making security a big target for the coming
few years, developers also need to focus on cyber
security and implement new-generation security features
within their apps.

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 Continued………
New-gen Mobile Games See the Light of Day: With
the advancements being made in the field of social
connectivity and cloud technology, now is the time
for developers to focus on games which have an
increased multiplayer focus rather than developing
only single player games.
By developing new-generation games based on the
latest game engines, which also make use of easy
access to cloud technology, developers can push
frequent and rapid updates to enhance the UX.

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 Summary
The simplest way to describe mobile commerce
would be the buying and selling of products – or
the conduct of commercial transactions and
activities – through telecommunication and other
mobile devices that run or operate on wireless
network technologies. Also Mobile Apps have
picked up in recent times.

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 Thank You

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