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What is M-Commerce?

Consumers love to shop. And they are continuously finding new effortless ways to do so, resulting in the next generation of e-commerce.

M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices. In 2011, the US m-commerce sales skyrocketed 91.4 percent from the previous year with sales reaching $6.7 billion, according to eMarketer. This rise indicates that if you’re not focusing on a mobile strategy, you’re missing out on serious potential.

Mobile is a convenience channel. It’s quicker and easier to use the web on a mobile device than on a desktop, especially to perform a web based search because our mobile devices are everywhere we go!

Searchers on mobile devices have a sense of urgency, unlike searchers using traditional search methods on a computer. Microsoft reported that 70 percent of PC search tasks are completed in one week, while 70 percent of mobile search tasks are completed in one hour, this difference directly impacts the growth of m-commerce.

Mobile users are looking for information to help them make buying decisions directly at the point of sale. Out of consumers searching on a mobile device, 88 percent will make a purchase within 24 hours, Microsoft reports. Mobile shoppers want to simply research products and quickly make purchases—M-commerce provides just this!

So what’s the bottom line? M-commerce usage is incredibly on the rise with users making quality dollar amount purchases quickly. There’s not a doubt as to whether or not m-commerce will take off. The question is how you can make the most out of this great mobile opportunity.

Want to start your m-commerce strategy or learn more about mobile offerings? We have a skilled team of developers that can “mobilize” you and boost your sales for 2012. Contact Stellar Blue at info@stellarbluewebdesign.com or
(920) 905-0250 to discuss!

Stellar Blue Crew
Stellar Blue Web Design, LLC
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Mobile Success from Nonprofit to Fortune 500

There’s an old business saying that to be big, think big. So as we continue to explore mobile marketing and m-commerce, let’s take a look at some big brands that have jumped outside the box and grasped the growing use of mobile.

The American Red Cross Haiti Relief – The American Red Cross is a large not for profit organization that has become a household term. They began exploring mobile campaigns in 2005 during the Hurricane Katrina relief. Their result was not what they had hoped for. This was partly due to the fact that 7 years ago, mobile devices like our smartphones and tablets just weren’t that smart yet. But fast-forward to 5 years later and the American Red Cross pursued a mobile campaign again with much more success…

In 2010, a 7.0 magnitude earthquake devastated Haiti. Quickly, the American Red Cross began the Haiti Earthquake Relief Effort. Through a text-marketing plan, the organization generated millions of dollars in donations. The campaign asked mobile users to test HAITI to 90999 to donate $10 for the relief fund. Amazingly, 3 million people gave to the campaign and American Red Cross was able to raise more than $32 million.

The best part? Approximately 95 percent of the donors were first-time donors to the organization. This reveals to us that they successfully tapped into the growing market of mobile users and made it more comfortable for people to make a donation decision from the palm of their hand.

Starbucks Mobile App – Mix people’s passion for caffeine and mobile and you have success. Starbucks has two mobile applications to promote repeat business and entertainment with their brand in mind. Starbucks sharpened its focus by moving away from mass marketing to a one-to-one focus, putting the customer at the center of its marketing efforts. This thinking led to a mobile marketing strategy that is now an integral part of the overall marketing mix.

One of their apps is a holiday inspired, interactive game called Starbucks cup magic. This is just a seasonal app, does not help user on daily basis but is intended to entertain and entice gift purchases.

However, Starbucks’ main app is what we want to discuss.  The main use is mobile payments in store and checking the status of where the customer is in the company’s reward program. This app is more to help customers and to make their Starbucks experience better than what it already was. The app features a drink builder, menus, store locator, MyCard, My Rewards, and so much more. Consumers can load money onto the app's Mobile Card so when they are in Starbucks they can open the app, have the barista scan the bar code and make a purchase. It’s like a perpetual gift card.

Due to this innovation, Starbucks was 2010 Mobile Marketer of the Year. And more currently, the app just surpassed 26 million mobile transactions.

As mentioned, these are big brands. But big brands set the tone and trends for many businesses and organizations to follow. Contact Stellar Blue if you’d like to discuss local company’s success and to see what your potential could be with m-commerce!

Amanda Betts - Marketing Director
Stellar Blue Web Design, LLC
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The Future Growth of M-Commerce!

We are exploring m-commerce. For many of us the concept might still be too new to fully grasp its potential. But let’s look at it in another way. Let’s explore some foreshadowing predictions to create a clearer picture.

For starters, according to the Mobile Marketing Association, there are 6.8 billion people on the planet. 5.1 billion of them own a cell phone, but only 4.2 billion own a toothbrush. So right out of the gate, we already know that as a global society there is a higher emphasis on mobile technology then personal hygiene!

But more seriously, we recognize that 90 percent of Internet consumers use search engines and by 2014, more consumers will access the internet via mobile. So this tells us that our Internet consumer will be using their mobile device more and more to make purchasing decisions. Therefore we must consider ways on how to reach our consumers on their terms.

Below we have combined a series of stats mixed with our professional foreshadowing on how mobile is evolving the way we communicate, operate business, increase profit and so on:

•  US m-commerce sales are believed to grow at a compound annual rate of 55 percent from 2010-15, including 73.1 percent growth expected this year, approximately $11.6 billion for 2012 total m-commerce sales ($31 billion projected 2015!) Mobile is mounting up faster than any other technology seen in the past. This growth is driven by the introduction of tablets and the next generation smart phones, as well as more retailers coming into the m-commerce scene. Undoubtedly the future is bright for mobile shopping.

•  Just more than 33 percent of retailers are now employing a type of mobile strategy and this percentage remains rising as consumers continue using m-commerce as a critical sales channel—and for quality dollar purchases! According to Mashable, the average desktop order in 2011 was $95.19, and the average mobile order amounted to $96.92. “The difference of $1.73 per order may appear small, but that 2% increase in average cart size can dramatically affect a company’s bottom line,” Mashable reports.  

•  Mobile web adoption is happening 8x faster than traditional web adoption in the late ’90s. By 2015, more U.S. Internet users will access the web through mobile devices than through PCs. We bet this is because there will be one mobile device for every person on earth by 2015. This only confirm mobile shopping is catching on worldwide! Globally, m-commerce is estimated to be worth $205 billion by 2016. 

M-commerce is happening NOW--and there’s no doubt that 2012 will be an exciting and profitable year for mobile shopping. Do you want to be apart of this? Start your mobile strategy by contacting our team today! Contact Stellar Blue at info@stellarbluewebdesign.com or (920) 905-0250 and we’ll ignite your mobile marketing!

Ben Benesh -  Mobile Developer
Stellar Blue Web Design, LLC
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