As we’re entering the web3 era, we’re on the cusp of a new paradigm. One where consumer needs are predicted in advance, and offers are pushed out proactively for perfect timing. An era of increasing mobile commerce, and endless marketing and sales innovation. Let’s explore some of the exciting opportunities that lie ahead.
THE PUSH ECONOMY: A 25-YEAR-OLD PREDICTION TURNING INTO REALITY
In 1997, Wired magazine published an article predicting the future of ecommerce. The headline of the article was “Push”, and the first line read “Kiss your browser goodbye”. The message of the article was that eventually, the web would transition from the current “pull-model”, into a “push-model”.
A “pull-model” is one where consumers make requests for pages on their primary digital device, and a “push model” is instead a model where vendors send media and “web objects” to a variety of mobile consumer devices.
In the following decades, many jokes were made about this prediction, that for a long time seemed to represent a future so distant it wasn’t even relevant. But time moves fast, and today this prediction no longer seems far-fetched.
With an increasing percentage of the total digital commerce happening on smartphones, we may already have entered the Push Economy. This is why we’ll dive deeper into what this means for ecommerce merchants, and how to best ride on the wave of m-commerce.
IS THERE A DIFFERENCE BETWEEN ECOMMERCE AND M-COMMERCE?
Before we move on, let’s define what m-commerce means and how it differs from ecommerce. Put simply, ecommerce is the umbrella term for selling and buying products and services online, whereas m-commerce (mobile commerce), is a subcategory of ecommerce with a focus on commerce via mobile devices.
And while both models share the goal of selling aided by the internet, there are some significant differences between ecommerce and m-commerce. Many of these differences stem from the fact that the buyer journey looks different depending on what device the customer is using, which means companies need to adapt every part of the sales funnel to optimize it for each channel and journey.
Related reading: Retailers Prioritize Digital Mobile Commerce Strategy – Here’s Why
WEB3 UNLOCKING THE VALUE OF THE PUSH MODEL
While push notifications in all our devices are an integral part of Web2 and have been common for quite some time now, it’s with the onset of Web3 that things are really beginning to get exciting. Because with things like tokens and airdrops, Web3 is unlocking the next level of the Push prophecy, and the commercial value and potential it holds.
We’re on the cusp of a digital revolution, where blockchain, NFTs, and crypto are completely altering the rules of the game. And m-commerce is very much at the center of it all; Forbes is predicting m-commerce-generated revenue to reach $3.56 trillion by the end of 2022.
A NEW LEVEL OF PREDICTIVE PERSONALIZATION
Web1 was mainly an arena built for search. Users would type in their search requests in browsers, and look for specific topics, products, or services. With Web2, the way we were served our options was refined, and our search results were impacted by advertisers and merchants using data and ad spend to make sure we found their offering. Algorithms would amplify our preferences and “help” us find even more of the things we tended to look for.
And with Web3, new technology and tools will keep changing the way we think about marketing, online sales, and how to bring products and services to the consumer. By being one or several steps ahead of consumer preferences, merchants will be able to foresee their customers’ next move and desire, and, yes, push the right offering their way.
According to Statista, American adults spend on average 4 hours every day on their phones. Think about it: 4 hours! That’s a massive portion of the total number of waking hours. And, as cited in Business Insider, retail m-commerce sales hit $359.32 billion in 2021, an increase of 15.2% over 2020.
By 2025, retail m-commerce sales should more than double to reach $728.28 billion and account for 44.2% of retail ecommerce sales in the US. This shows the potential that lies in conquering the m-commerce market and investing in optimizing for mobile as a specific channel.
5 KEY BENEFITS OF M-COMMERCE IN THE PUSH ECONOMY
There are numerous benefits of turning some serious attention to your mobile offering, and ensuring the mobile experience for your customers is on par with the desktop journey. Innovating to build customer experiences that wow your audience is an efficient way to set a brand apart, in ways that no traditional advertising or marketing can achieve.
Customer experience is already one of the most important differentiators in ecommerce, and this may be even more true in m-commerce. From retail shopping to financial services and payment options, the brands that should be taking advantage of mobile CX continue to grow along with the audience.
CUSTOMER EXPERIENCE – CONTENT IS CONTEXT
One thing that makes mobile the perfect vehicle for selling in the “push era” is that we all carry our mobile devices with us wherever we go. A consumer may jump off of a plane in a new city, look for a ride, and need a restaurant or hotel recommendation. And with the right tech, brands can fulfill this request without the consumer even having to search for them.
Brands can use all kinds of data and targeting to tailor SMS and push messages to a device that’s always on hand, always on, and super convenient for the user. Context-relevant push notifications are not even perceived as annoying ads. Instead, when done well, they add a layer of extra convenience to the customer experience.
They help consumers find something the instant they want it. Craving some vegan sushi? Could it be because it was suggested by Resy? Well, just press “order” and have your tofu maki rolls waiting for you when you get home! Providing such tailored experiences allows you to acquire consumer loyalty without having to offer monetary incentives to do so.
Related reading: Seamless Customer Experience – Why It Matters and How To Deliver
OMNICHANNEL – COMPLEMENT YOUR EFFORTS
Between your website, brick and mortar store, app, marketplace presence, and mobile shopping site, you can truly meet customers where they are, always. An m-commerce experience is an extremely important piece of the omnichannel buyer journey puzzle that is likely to include price comparisons, brand comparisons, and services comparisons (think free shipping, loyalty, and discounts). Not to mention that a true omnichannel experience is very beneficial for your SEO, Google prefers and rewards sites optimized for mobile.
Our partner, Attentive—the most comprehensive text message marketing solution—analyzed anonymized data from over 4,000 brands over Cyberweek 2021. The results validated the rising impact of m-commerce as over $830M in revenue was generated from text messaging during Cyber Week alone. Automated messages drove an average 34.6% conversion rate, while campaign messages—like flash sales and discounts—yielded close to a 9% conversion rate. Brands that leverage Attentive, like Rebecca Minkoff and Supergoop! saw sharp increases in frequency, conversion rates, and ultimately average order value.
Related reading: Omnichannel Strategy & Investments in Mobile Commerce
PAYMENT OPTIONS – INTRODUCE NEW METHODS
What may already seem like an endless array of different payment options, will only keep expanding with web3. The trend toward contactless, single-page checkout, and one-click payment options is morphing into a crypto and blockchain shopping wonderland where pre-identified customers can check out from any channel in mere seconds. This means reduced friction, which, as we all know, means increased conversions.
We’re entering the era of BUY IT NOW, where our devices will already know who we are, where our money (or crypto) is stored, and how to make seamless transactions between us and our merchants of choice. Specifically, those merchants who offer the smoothest, smartest, and fastest journeys. With cryptocurrencies and new methods of asset transfer being introduced daily, payment options will continue to expand.
Related reading: Ecommerce Growth Through Flexible Payment & BNPL
SOCIAL COMMERCE – ALL ON ONE DEVICE
Including social media in your m-commerce strategy allows your customers to seamlessly receive your marketing messages, share your content with their friends, and buy your products in-app with just a swipe. Again, reduced friction leads to increased conversions.
The emerging brands that were quick to connect with young audiences through platforms like TikTok and Instagram, such as Aviator Nation and Aerie, are already reaping massive rewards. When consumers are able to press “buy” in the same second they fall in love with an item in their feed, it goes without saying that sales cycles are significantly shortened, and overall sales are increased.
Related reading: What is Social Commerce? Strategy & Tactics for 2022
INNOVATION – TEST ON THE SMALL SCREEN
M-commerce can also be a great sandbox for testing out marketing ideas, new functionality, and your latest CX and UX hypotheses. While redesigning your website consistently to test new CX or CRO strategies may not be feasible, making changes to the mobile experience that you’re offering consumers often is. Codes, coupons, loyalty clubs, and review requests are incredibly well suited for being pushed through social media in an SMS. The possibilities are almost endless and the lessons learned while experimenting are invaluable.
Just keep in mind that having robust back-end systems in place is essential. For example, if page speed starts to suffer on mobile, you can change the amount of content or assets that you serve. And a content system like AEM can mitigate and direct traffic to your consumers at an organized and manageable pace. With quality PIM and optional buying processes, your ability to shift when conversion is in question is greatly simplified.
Related reading: PIM DAM Integration—Key to Multi-channel Content Management
HOW VAIMO CAN HELP
At Vaimo, we’re experts in all things ecommerce and m-commerce. We work daily with brands, retailers, and manufacturers all over the world to build winning omnichannel experiences. We’d love to help you take your m-commerce to the next level and build a customer experience that gives your brand a competitive edge. Get in touch with our team of experts to learn how we can help you optimize your ecommerce experiences and help you stand out from your competition.