Principles of Retailing: E Commerce and Digital Retailing Mobile Commerce Appbased Progressive Web Apps PWAs QR Codes

What This Is

Mobile commerce refers to the buying and selling of goods and services through mobile devices, such as smartphones and tablets. This has become a crucial aspect of retail as more consumers use their mobile devices to shop online, in-store, or through mobile apps. For instance, Sephora's mobile app allows customers to browse products, check availability, and even get personalized beauty recommendations, resulting in a 25% increase in sales.

Key Frameworks & Metrics

• Mobile Commerce Maturity Model: A framework to assess a retailer's mobile commerce capabilities, from basic to advanced. Practical use: Identify areas for improvement and prioritize investments.
• App-based Commerce: Using mobile apps to facilitate transactions, such as Amazon's mobile app. Practical use: Increase customer engagement and loyalty.
• Progressive Web Apps (PWAs): Web-based applications that provide a native app-like experience. Practical use: Reduce development costs and improve user experience.
• QR Code Adoption: Using QR codes to facilitate transactions, such as Walmart's Scan & Go. Practical use: Streamline checkout processes and reduce wait times.
• Mobile Conversion Rate: The percentage of mobile users who complete a purchase. Practical use: Identify areas for improvement in mobile user experience.
• Mobile Average Order Value (AOV): The average amount spent by mobile users. Practical use: Optimize product offerings and promotions for mobile users.
• Customer Acquisition Cost (CAC): The cost of acquiring a new customer through mobile commerce. Practical use: Evaluate the effectiveness of mobile marketing campaigns.
• Customer Lifetime Value (CLV): The total value of a customer over their lifetime. Practical use: Prioritize customer retention and loyalty programs.
• Basket Size: The average amount spent by mobile users in a single transaction. Practical use: Optimize product offerings and promotions for mobile users.
• Inventory Turnover: The number of times inventory is sold and replaced within a given period. Practical use: Optimize inventory levels and reduce waste.

Step-by-Step Process

1. Conduct a Mobile Commerce Audit: Assess your current mobile commerce capabilities, including app-based commerce, PWAs, and QR code adoption.
2. Identify Mobile User Behavior: Analyze mobile user behavior, including conversion rates, AOV, and basket size.
3. Develop a Mobile Commerce Strategy: Based on the audit and user behavior analysis, develop a mobile commerce strategy that aligns with your business goals.
4. Implement Mobile Commerce Solutions: Implement mobile commerce solutions, such as mobile apps, PWAs, and QR code adoption.
5. Monitor and Evaluate Performance: Continuously monitor and evaluate mobile commerce performance, including metrics such as conversion rates, AOV, and basket size.
6. Optimize and Refine: Based on performance data, optimize and refine your mobile commerce strategy and solutions.

Common Mistakes

• Mistake: Ignoring mobile user behavior and preferences.
• Correction: Conduct regular mobile user behavior analysis to inform mobile commerce strategy and solutions.
• Mistake: Treating mobile commerce as a separate channel from other channels.
• Correction: Integrate mobile commerce with other channels to provide a seamless customer experience.
• Mistake: Over-reliance on discounts and promotions.
• Correction: Focus on providing value to customers through personalized experiences, product recommendations, and loyalty programs.

Retail Strategy Tips

• When launching a mobile app, ensure seamless integration with other channels to prevent stock-outs online.
• When implementing QR code adoption, ensure clear and concise messaging to avoid confusion.
• When developing a mobile commerce strategy, prioritize customer experience and loyalty programs.

Quick Practice Scenario

Scenario: A department store has high footfall but low conversion. Which metric would you analyze first and why?

Answer: Conversion Rate. This is because conversion rate directly measures the effectiveness of the in-store experience and can help identify areas for improvement.

Last-Minute Cram Sheet

• Mobile Commerce refers to buying and selling goods and services through mobile devices.
• Mobile Commerce Maturity Model assesses a retailer's mobile commerce capabilities.
• App-based Commerce uses mobile apps to facilitate transactions.
• Progressive Web Apps (PWAs) provide a native app-like experience through web-based applications.
• QR Code Adoption uses QR codes to facilitate transactions.
• Mobile Conversion Rate measures the percentage of mobile users who complete a purchase.
• Mobile Average Order Value (AOV) measures the average amount spent by mobile users.
• Customer Acquisition Cost (CAC) measures the cost of acquiring a new customer through mobile commerce.
• Customer Lifetime Value (CLV) measures the total value of a customer over their lifetime.
• Basket Size measures the average amount spent by mobile users in a single transaction.
• Inventory Turnover measures the number of times inventory is sold and replaced within a given period.
• ⚠️ Omnichannel is not just being present on all channels – it's about a seamless integrated experience across channels.
• ⚠️ Mobile Commerce is not just about mobile apps – it's about providing a seamless customer experience across all channels.