taking mobile commerce to the next level
TRANSCRIPT
Taking Mobile Commerce To The Next Level
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Panelists
Debbie Hauss Editor-in-Chief,Retail TouchPoints
MODERATOR
Andrew MorrisHead of Content, Money
20/20
Mike Orlando
CSO, Jumio
Copyright © 2014 Money2020 LLC. All rights reserved. 7
June 4, 2014
Andrew B. MorrisSVP Content & Business DevelopmentMoney20/20
The Path from Mobile Shoppingto Mobile Buying
Setting the Stage
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One key aspect of mobile commerce is thatit is a self-service experience…
Other customer self-service use cases show us that this cancreate both the best and worst experiences with a brand.
Copyright © 2014 Money2020 LLC. All rights reserved.
Customer Self-Service for Bill Payment
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Sources: Morris Advisors Inc.
Enrollments for online bill payment facilitate turning off the paper bill and ultimately engagement in customer self-service on the biller’s web site. If properly implemented, these investments can drive down costs while also increasing customer satisfaction.
Customer Self-Service(“Call Deflection”)
Online Bill Presentment
(“Paper Turn-Off”)Online BillPayment
Cost ofBilling,
Payment& Customer
Service
Customer Satisfaction
Rates
Copyright © 2014 Money2020 LLC. All rights reserved.
Customer Self-Service at the Airport
10
Well-executed customer self-service, such as Delta Air Lines’ airport kiosks and mobile app, save consumers time and create convenient, enjoyable experiences with the brand.
Sources: Delta Air Lines company web site
Copyright © 2014 Money2020 LLC. All rights reserved.
But poor customer-self service is costly!
11
Damage to your brand
Cost to remedy
Lost revenues
Reputational risk
Competitive pressure
Copyright © 2014 Money2020 LLC. All rights reserved.
Key Question
12
Analysts tell us that mobile commerce is growing toa $500+ billion global opportunity…
But why are US consumers doing more shoppingthan buying on their smartphones?
Copyright © 2014 Money2020 LLC. All rights reserved.
Global Growth of Smartphone Ownership
Sources: “Internet Trends 2014,” Mary Meeker, Kleiner Perkins Caufield Byers, March 2014
Global Smartphone Quarterly Unit Shipments & Smartphone Users as % of Mobile Phone Users, 2009-2013
13Copyright © 2014 Money2020 LLC. All rights reserved.
US Smartphone Penetration >80%
Sources: eMarketer
U.S. Smartphone vs. Tablet Penetration 2011-2014
14
Smartphone
Tablet
Copyright © 2014 Money2020 LLC. All rights reserved.
Amazing Things We Do With Our Phones
Sources: Business Today
“10 Things Your Smartphone Can Replace”
15
Universal Remote Business Card Scanner Wi-Fi Hotspot Tape Measure Car Keys
Television Health & Fitness Guide Home Control Wallet Barcode Reader
Copyright © 2014 Money2020 LLC. All rights reserved.
7 Primary Motivations for Smartphone Usage
Sources: “Seven Shades of Mobile” study, conducted by InsightsNow for AOL and BBDO, 2012. In the first phase, 24 users completed a seven-day diary and in-depth interviews.
In the second, 1,051 U.S. users ages 13 to 54 were surveyed, data on 3,010 mobile interactions were collected, and the mobile activities of two-thirds of those users were tracked for 30 days.
To marketers the prospect of reaching shoppers through their smartphones is tantalizing. But mobile doesn’t always mean on the go. New data show that 60% of consumers’ smartphone use happens at home. And users’ most common activity is not shopping or socializing but engaging in what researchers at BBDO and AOL call “me time.”
Seven Primary MotivationsThe reasons consumers use smartphones can be broken down into the goals listed at right, along with the average monthly minutes and percentage of interactions devoted to each.
16Copyright © 2014 Money2020 LLC. All rights reserved.
Global Growth of Mobile Commerce
Sources: PFSWeb 2014
17
With mobile sales worldwide projected to be $626 billion by 2018, sales from mobile devices alone in 2018 could almost eclipse sales from all eCommerce devices in 2013 ($638 billion).
Copyright © 2014 Money2020 LLC. All rights reserved.
% of Smartphone Users that Engage in mCommerce
Sources: PFSWeb 2014
18
Apparel and accessories were by far the most purchased products on mobile. In the U.S. and Europe, 39% of smartphone owners and 54% of tablet owners purchased from this category. Next highest physical good was books (23% smartphone and 29% tablet).Copyright © 2014 Money2020 LLC. All rights reserved.
Smartphone as a Shopping Assistant
Sources: Nielsen Mobile Shopping Report, Q3 2013
Comparing Activities Among Mobile Shoppers
19
Smartphone
Tablet
Copyright © 2014 Money2020 LLC. All rights reserved.
Mobile Buying Happens Mostly on Tablets
Sources: Nielsen Mobile Shopping Report, Q3 2013
Comparing Activities Among Mobile Shoppers
20
Smartphone
Tablet
Copyright © 2014 Money2020 LLC. All rights reserved.
Barriers to Purchases on Smartphones
Sources: “Mobile Commerce Compendium,” eConsultancy, June 2013
Why haven’t you bought anything online using your smartphone?
21Copyright © 2014 Money2020 LLC. All rights reserved.
67.91% Average Shopping Cart Abandonment Rate
Sources: various, as noted above
62.30% according to Fireclick in 2014
69.20% according to Vibetrace in 2013
74.00% according to Barilliance in 2013
67.41% according to Coremetrics / IBM in 2013
78.00% according to AbandonAid in 2013
60.32% according to Triggered Messaging in 2013
74.23% according to SaleCycle in 2013
75.00% according to Listrak in 2013
67.00% according to Comscore in 2012
80.30% according to Rejoiner in 2012
61.85% according to Coremetrics / IBM in 2012
74.76% according to Fireclick / DigitalRiver in 2012
76.00% according to Listrak in 2012
72.31% according to Fireclick / DigitalRiver in 2011
62.31% according to Coremetrics / IBM in 2011
74.76% according to Fireclick / DigitalRiver in 2012
76.00% according to Listrak in 2012
72.31% according to Fireclick / DigitalRiver in 2011
62.31% according to Coremetrics / IBM in 2011
72.00% according to SeeWhy in 2011
71.00% according to SeeWhy in 2010
55.00% according to Forrester Research in 2010
63.68% according to Coremetrics / IBM in 2010
69.38% according to Fireclick / DigitalRiver in 2010
62.14% according to MarketLive in 2009
71.00% according to Forrester Research in 2009
63.19% according to Coremetrics / IBM in 2009
68.00% according to SeeWhy in 2009
62.01% according to Coremetrics / IBM in 2008
61.36% according to Coremetrics / IBM in 2007
59.80% according to MarketingSherpa in 2006
Average: 67.91% abandonment rate
22Copyright © 2014 Money2020 LLC. All rights reserved.
Reasons for Mobile Shopping Cart Abandonment
Sources: Mobify, February 2014
23
Distracting Design The most common reason for mobile shopping cart abandonment is distracting, overwhelming design.
Unreasonably Long Forms Filling out long forms is one of the most dreaded actions for a mobile visitor.
Cumbersome Enrollment Process It’s great to offer users the ability to create an account with your site but a poorly executed enrollment process can cause conversion rates to drop drastically.
Unpredictable Checkout Flow An unpredictable shopping cart is an abandoned one. It creates too much anxiety in any shopper, especially if she’s on the go.
Mobile Checkout Appears Insecure Many mobile users still perceive buying on mobile as a less safe option than desktop.
Not Conducting A/B Testing Since every mobile site is unique, experiment with solving customer experience challenges through A/B testing.
Copyright © 2014 Money2020 LLC. All rights reserved.
Morris
Thank You!
24
Andrew B. MorrisSenior Vice President, Content & Business DevelopmentMoney20/20http://money2020.com/
(770) 686-3727 office(678) 596-5244 [email protected]
Copyright © 2014 Money2020 LLC. All rights reserved.
© 2013 JUMIO, INC. – CONFIDENTIAL
June 4, 2014
Webinar: Taking Mobile Commerce To The Next Level
© 2013 JUMIO, INC. – CONFIDENTIAL
1.4 BILLION SMARTPHONES
1 BILLION PICS PER DAY
200+ MILLIONM-PAYMENTS USERS
It’s time they met
Payments are UbiquitousCameras are Ubiquitous
ABI RESEARCH 2013, 2 EDWARDS ARBITRON RESEARCH 2012 EXTRAPOLATION , GARTNER RESEARCH MAY 2012
© 2013 JUMIO, INC. – CONFIDENTIAL
UX Matters: Mobile customers are savvy and impatient
Long11 fields
Short4 fields
increase in submissions160%
© 2013 JUMIO, INC. – CONFIDENTIAL
Poor Mobile Experience = Customer Abandonment
Too many fields
Too small of a screen and keyboard
Too much time
Poor brand experience
66% of users abandon mobile forms
Are you losing 2/3 of your mobile customers?
© 2013 JUMIO, INC. – CONFIDENTIAL
Jumio Solutions
1. Fastfill: Speeds mobile customers thru sign-up and checkout forms by scanning IDs, extracting data, and form filling
2 . Netswipe: Captures credit card data to speed customers thru payment checkout forms
© 2013 JUMIO, INC. – CONFIDENTIAL
Turn your customer’s smartphone into anID data extraction and population tool
© 2013 JUMIO, INC. – CONFIDENTIAL
Customer scans ID.
Form gets populated.“Scan ID” Button is added.
© 2013 JUMIO, INC. – CONFIDENTIAL
100+ countriesFastfill works with IDs from across the globe.
Jumio’s patented technology offers data extraction from:
Bar Codes or Image Recognition
© 2013 JUMIO, INC. – CONFIDENTIAL
✓ Dramatically increase revenue ✓ Increase customer engagement✓ Create a “wow” customer experience✓ Reduce fraud and chargeback risk✓ Increase customer satisfaction
Credit Card Scanning & Validation
RevenueEngagementSatisfaction
Chargebacks
© 2013 JUMIO, INC. – CONFIDENTIAL
Remove Payment Friction with Netswipe
YOUR MOBILE APP AT CHECKOUT | INTERACTION WITH NETSWIPE SDK
✓Card Validated✓Customer Name filled✓16 digit card # filled✓Expiration date filled✓CVV entered by
customer
Jumio API Activated
Transaction completed
Scan card or key entry options
© 2013 JUMIO, INC. – CONFIDENTIAL
Pay in under 5 seconds
Fast = More Transactions
Key Entry 55 SECONDS
MOBILE PAYMENT ENTRY TIME:
5 SECONDS
Save your customers 50 seconds per transaction
© 2013 JUMIO, INC. – CONFIDENTIAL
Drive Conversion
*RESULTS SHARED WITH PERMISSION FROM TRAVELOCITY
MOBILE APP CONVERSION RATE (%)
Jumio customers enjoy an average 18-33% increase in shopping cart conversion
52%
Key Entry 9%
Average increase 18-33%
© 2013 JUMIO, INC. – CONFIDENTIAL
Flexible and Scalable Platform
OS PLATFORMS:
DEVICES:
INTEGRATION TIME: Minimal developer time. Go live in weeks.
PRICING MODEL: Flexible SaaS model* Month-to-month, annual or multi year terms* Limited or unlimited scans per month plans available
Platform Specs
© 2013 JUMIO, INC. – CONFIDENTIAL
Safe & Secure
✓All data transmitted with 256k bit encryption✓Full redundancy on Amazon EC2 and Rackspace✓Meets local jurisdiction data requirements✓24/7 network monitoring and Help Desk
✓Security management ✓Policies and procedures✓Network architecture ✓Software design accreditation✓Ongoing certification monitoring
We apply stringent PCI protocols to PII data
© 2013 JUMIO, INC. – CONFIDENTIAL
Selected Clients & Recent Awards
2013 Awards
#NextGenMobile
Panelists
Debbie Hauss Editor-in-Chief,Retail TouchPoints
MODERATOR
Andrew MorrisHead of Content, Money
20/20
Mike Orlando
CSO, Jumio
#NextGenMobile
Thank You For Joining Us!Download the slides from this presentation:
http://rtou.ch/nextlevelmobile