Is Mobile Commerce Taking Over Ecommerce?

A chart based on US Census Bureau and Comscore data was published by Business Insider. It shows Mobile Commerce growing three times faster than Ecommerce overall.

Is Mobile Commerce taking on "classic" Ecommerce?

Is Mobile Commerce taking on “classic” Ecommerce? Source.

The numbers behind it are very interesting:

  1. mobile commerce is on the rise and has registered a 48% YoY growth, in the second quarter. It now accounts for $8 billion in online spending.
  2. overall ecommerce (including mobile commerce) grew “only” 15.9% year over year in the second quarter and totals $70.1 billion in online sales.

However…

Stop betting on (just) mobile. We’re not there yet.

Smartphones and tablets have brought forth a revolution in computing and social interaction. Unfortunately for overenthusiastic mobile-only fans, mcommerce usage is lagging behind mobile device adoption.

If you look at the chart above you’ll see there’s a  linear growth in mobile commerce. Not a hockey puck growth. Not even an accelerated growth.

Even more – ecommerce accounts for only 5.9% of all retail. Mobile commerce itself is just 11.4% of ecommerce. This means mobile commerce, however ambitious is pretty much insignifiant. It accounts for just 0.67% of total US retail.

Smartphones and tablets are extremely popular. Mobile commerce – not so much.

And hey – it’s not the fact that people don’t like smartphones. Oh no. People love smartphones:

Growth in smartphone penetration in the US.

Growth in smartphone penetration in the US. Source.

 

 

They also love tablets. Almost 42% of all US adults own at least a tablet. Remember – this is a product that went on sale only 4 years ago, when Apple introduced the iPad. In just 4 short years, the tablet has become a virtually ubiquitous computing item for US adults.

Tablet penetration among US adults. Source.

Tablet penetration among US adults. Source.

So – people are buying mobile devices like crazy. PC sales are dropping yet the mobile commerce is just 0.67% .Why?

The short answer - there is no mobile commerce. 

Mobile is the bridge. It helps connect the physical world to the virtual world. The act of purchasing happens on multiple channels. Mobile is not “the future”. It is the present yet the present comes in a form we have not met before – a bridge across channels.

If we take the time to see matters from the consumer’s point of view things are not as black and white as we expect them to be. Few if any consumers think in terms of mobile OR desktop OR brick and mortar. The consumer will spend time in a B&M store, browse the web to search for the right products, do a little showrooming to find the be best pricing. In the end, the whole purchasing experience stretches across channels and some are more popular than others.

But the customer has only one perspective where channels blend in. The omnichannel perspective. To provide the ecosystem for this perspective, the new retailers will try to understand and implement omnichannel retail because mobile, however massive, is just a piece of the puzzle.

Top 5 Alternatives to Google Analytics, for Ecommerce

Say you’re running an online store. Chances are you are using or plan on using Google Analytics. It’s free, it’s popular and there are tons of info out there to help you get started and optimize your sales stream.

But there are downsides too. First one – Google already knows a lot about you and your customers. You might want to keep some things discreet, right?

Second – Google Analytics is an one-size-fits-all type of product. Sure, it has plenty of features but chances are you’re likely to get lost in some of those features. Even if you don’t get lost, you’re likely to spend a lot of time digging through somewhat useless data, while at the same time, missing out on very important bits of information.

Third – real time reporting is pretty limited, if you’re running the free version. Once you get over 10 million views you’ll have to switch to the paid version, costing you north of $150 000. But then you can also try some more advanced reporting tools.

Of course, there are plenty of traffic analytics tools out there. Some have really great interfaces and features. But as an online shop owner or manager, you have to look at what works best for your store. Have a look below:

1. Mixpanel

Mixpanel Funels

Mixpanel Funnels

Mixpanel is great choice for small and mid-sized business that sell. Whether we’re talking about an online retailer, a hotel selling reservations or an iPhone game developer selling game upgrades - it is a great tool.

Even the way Mixpanel tracks actions and charges users is a great fit for online retailers. Ecommerce sites don’t really need too much intel on page views. What really matter are actions – the number of times sometimes has clicked the “buy” button, the number of times users download a brochure or the number of Google Ad visitors that turn into customers.

Mixpanel calls these actions data points, and this is a great news for startups and mid-sized businesses.

It’s tailored around five basic functions:

  1. Segmentation – allows for better understanding of user behavior and splits user groups according to actions.
  2. Funnels – you might be familiar with funnels from GA. But once you get to know Mixpanel’s take on the funnels, it seems that something has dramatically changed. Funnels can be added on the fly and viewed retroactively, easily.
  3. Retention – it’s not just how much you sell, but also – who keeps coming back.
  4. People – unlike GA’s confusing take on users, Mixpanel builds profiles ecommerce store owners can understand. The system collects data that can be browsed individually or segmented. One great feature is the notifications option, where you can mail, send SMS or push notifications to users, based on automated or manually segmented profiles.
  5. Notifications – mentioned above, it is a great tool that improves the analytics platform, allowing you to also communicate directly to consumers.

Pricing

Pricing is free for less than 25 000 data points and it can go up to $2000 / month, for companies with more than 20 million data points.

 

2. GoSquared

The redesigned GoSquared app

The redesigned GoSquared app

GoSquared is a great piece of engineering and with its redesigned interface – easy to use. It serves over 40k businesses and it has a special area developed strictly for ecommerce owners.

When it comes to ecommerce, GoSquared packs a lot of power in a simple interface. Just like most other applications on this list, it puts a strong emphasis on the targeting users as potential customers and tracking their actions and behavior.

The Metrics work toward providing clear insights on how revenue is doing. The analytics tool provides info on social media influence on sales and data on best performing products.

One really useful set of tools is what GoSquared calls Predictive Analytics. Previously discussed on Netonomy.NET, predictive analytics can mix past and present data to determine possible outcomes in the future. It can be used to predict traffic, sales or best selling products, to name a few.

GoSquared also mentions their ability to send Differentiated Reports, based on specific team member’s needs. One for the CEO, one for the marketing team, one for the … well, you get the idea.

But if there is something that really sets GoSquared apart – this is the Developer API. Using this, developers can build truly dynamic online stores, that respond to customer behavior and profile. From info on previous purchases, location, language and others, online stores can be set to respond to specific customer needs.

Pricing

Pricing can be configured here and starts at $32 / mo for 100k pageviews and 100 transactions. It can go north of $640 / mo for more than 10 million pageviews and more than 10k transactions. You can test the application in a 14 days trial.

 

3. FoxMetrics

analytics-foxmetrics

Foxmetrics has some nifty features when it comes to ecommerce and online retail related options. It is light and easy to set up, it works on both web and the mobile and it is focused on helping you increase conversions.

Although Foxmetrics is not 100% focused on ecommerce related (they also provide support for online publishers), it does have some great features you can use:

  1. People – using this section you can understand customers and their actions and can sync this data into company CRM software;
  2. Ecommerce – Foxmetrics provides support for useful KPI’s and advanced reporting dashboards. Using customer data, it can build  product relationships, shopping cart reports and can respond with automated actions;
  3. Subscription is an useful tool for companies working with periodic purchases. The product can report user data, conversion and churn rate, as well as detailed info on separate plans;
  4. The Marketing and Triggers options allow for personalized marketing and response, based on referral and user actions.

Pricing

Although Foxmetrics does not provide a free option, it does provide a 14 day trial to test the features. Plans range from $50 to $120 per month and beyond, for enterprise users. However, as an ecommerce user, you’ll be stuck with the $120 plan.

 

4. Woopra

analytics-woopra

Woopra  is a great way to understand your customer and their history browsing your store. You’ll be able to get behavioral insights from customers, run advanced or preset analytics reports.

By tapping into Woopra’s Funnel reporting section you can discover bottlenecks in the conversion path.

The product also promises a good segmentation on best performing customer groups and even build segments based on funnels.

Pricing

The pricing starts with a free version that allows 30 000 actions (similar to Mixpanel’s data points). The small business plans range between $79.95 and $1199.95/mo.

 

5. KISSMetrics

analytics-kissmetrics

KISSmetrics follows a simple assumption: you must get to know your users … ahem … customers. That and the fact you should pay attention to their brand name.

The promise KISSmetrics makes is that all your data will be connected to real people, with real actions. Once setup, you can see where people are, what and why they buy your products and in some unfortunate cases, why they don’t.

Features include funnels, cohorts (groups with similar interests), revenue in real time and the metrics you’re familiar from GA. The things that really set the product apart is the data export feature for further analysis and its A/B testing options, both a great fit for customer profiling.

Pricing

Pricing for the KISSmetrics product starts at $150/mo for up to 500 000 events and goes up to $500/mo, when your webstore reaches more than 1 million events. Once you pass the upper threshold, just like all others, you get to negotiate your pricing.

 

Amazon vs Walmart Comparison in one Essential Chart

Two companies have redefined retail in the past 50 years. One is a company founded by Sam Walton in 1962. Mr. Walton opened the first Walmart in Rogers, Arkansas. The other is an Internet company, founded by Jeff Bezos in his small garage in Bellevue, Washington. This second company is Amazon, the largest Internet Retailer.

Both companies went on to be huge successes but in terms of revenue, Walmart has the upper hand. With $469 billion in 2013 revenue and 10700 stores opened worldwide, Walmart beats by far Amazon’s $74 billion 2013 revenue. If you look at the raw data Amazon is no match for Walmart. But pull back just a bit and the picture is changes. By comparing the track records for the two companies an interesting insight becomes clear:

Amazon vs Walmart - 17 years revenue comparison

Amazon vs Walmart – 17 years revenue comparison

The chart above is a comparison in terms of historic revenue. On one hand you have Walmart – the biggest and most successful retailer in recorded history. Employer of 2.2 million people, crusher of markets and destroyer of mom and pop shops. On the other hand you have Amazon, the brave new world of online retail. Both redefined their markets and both are leaders in their respective fields.

But one is unlike the other. See – I couldn’t even put together figures from the first years in Walmart’s history. Walmart’s revenues starts 6 years after the first Walmart opened, in 1968. That’s when the company reached a figure ($12.6 million) comparable to Amazon’s first year with recorded revenue (1996 – $15.7 million). 17 year after the company launch, Amazon registered $74.4 billion in revenue, while Walmart registered “just” $6.4 billion.

Both the trend and evolution show one thing - Amazon is on its way to become the biggest retailer in the world, a type of retailer the world has never seen. This might probably be a good time to reconsider your stock choices.

Top 7 Live Chat Software Vendors for Ecommerce

While customer support is one of the most important aspects of running your ecommerce business, it is also one of the most expensive and hard to manage.

When you’re talking customer support, you probably picture people with headsets in a huge open space, taking phone calls and answering questions. Maybe you picture something a tad relaxed, somewhere along the lines of a Zappos call center. Either way call center involve human resources, technology to set up, management and others. If you think that gets expensive – you are right. Fortunately, there is a growing alternative to this.

Enter the Live Chat Software.

bold-chatIn a recent study by BoldChat customers worldwide responded to the question “Have You Ever Engaged in a Live Chat?”. Results showed that more than half the respondents did engage in live chat, with more 65% respondents in the US saying yes.

prefered-form-communicationAlthough email is still the leading form of communication throughout the world (see left), live chat is catching up really fast , especially in the United States, Canada and Mexico.

One of the most prominent companies to use live chat is UK based  Virgin  Atlantic Airways Ltd. The company reports a 23% conversion rate for customers using its live chat feature. That is approximately 3.5 times higher than the conversion rate for users not engaging in live chat.

Virgin also reports that live chat also tends to increase average orders value, with customers spending 15% when chatting with an operator. Not only is live chat useful when trying to increase sales but it can also boost productivity, with one live chat operator doing the work of 15 email operators.

Who are the top live chat vendors?

If you’ve ever happened to look for live chat support software, you’ve probably stumbled across dozens to hundreds of different solutions. Some of them free, some open source, some paid. To help you get through the noise, I’ve put together a list of 7 of the most reliable live chat software solutions, from the easiest to implement to full-blown enterprise software suites.

The list is based on the clients size and profile, data regarding cost of implementation and solution reliability. Let’s start with number 7:

7. Zopim

zopim

Zopim is probably the youngest company on this list and a very promising one, for that matter. Its live chat application is easy to setup, light and very customizable. It offers a wide array of options and reporting information and can be used to integrate fully with sales operator teams.

The company, based in Singapore, has recently been acquired by Zendesk, a leading customer service solutions provider.

Features

Among its many features, Zopim lists:

  • Visitor visualization
  • Real time visitor info
  • Email chat transcript
  • Multi-device support
  • Visitor webpath tracking
  • Customizable greetings
  • Developer ready API

Pricing

Pricing ranges from free (demo account, one chat agent only) to $20 / agent (unlimited chats, departments, widget customization etc.)

 

6. Website Alive

website-alive

Website Alive features live chat, mobile chat and click to call solutions to retailers. One additional service that stands out is the “Concierge” service that includes the live chat software but also dedicated operators by Website Alive, for retailers willing to outsource customer care.

The Live Chat app is feature packed and allows integration with the “click-to-call” option, allowing customers to ask for support on the phone. Retailers can customize their widget look and feel, aligning it with the store’s branding.

Features

  • Chat transcripts
  • Visitor tracking
  • Invitation Pop-ups
  • Chat collaboration
  • Communication records
  • Call Routing
  • Multiple chat lines
  • Call transfers

Pricing

Pricing starts with the basic pack of $29.95/month, with 2 operators included, and goes up to $97.95/mo for the full pack.

 

5. BoldChat

bold-chat-img

 

BoldChat, a product of Bold Software, features the usual live chat support systems as well as some other, more advanced tools. Among them – multiple customer support interactions, click-to-call services, co-browsing and SMS communication.

In 2012 the company was acquired by LogMeIn, a company focused on providing online support for computer, smartphone and tablet owners. Price tag: $16.5 million.

BoldChat invests heavily in research, some of its resources being available online. The company is focused on midsize to larger online retailers, making it one of the more reliable tools out there.

Features

Among others, Boldchat lists some features targeted at larger online retailers, such as:

  • Cross-domain implementations
  • Passive browsing sharing
  • SMS, Email and Twitter management
  • iPhone app
  • Mobile-aware windows
  • Post-chat survey
  • Salesforce integration

Pricing

Pricing starts at $599 / year / agent.

 

4. Moxie Software Live Chat

moxie

Moxie Software is a provider of integrated customer support systems. It’s enterprise products are integrated and used by companies such as Dell, 3M, Epson, Crocs and others. Its Live Chat system allows text dialogues, co-browsing, reactive chat and proactive chat.

The company extended its products to handle social media requests, mobile browsing, click to call features and others. One very important aspect of Moxie Software is its Knowledge Base support center and self-service applications.

Integrations

The live chat solution can be integrated with company CRM solutions such as Microsoft Dynamics, Salesforce.com or Nuance.

Pricing

Pricing varies by project

 

3. Right Now Technologies (Oracle RightNow)

oracle-right-nowIn 2011 Oracle acquired Right Now Technologies, for $1.5 Billion. At the time Right Now Technologies was handling over customer relationship management systems, as well as call center software, for over 2000 SMB’s. After being acquired, the company was integrated to Oracle and rebranded as Oracle Rightnow Cloud Service.

The division handles live chat, among others for some well known multichannel and online retailers, such as Overstock.com, BeachBody.com and others.

Features

Oracle Rightnow handles many critical aspects of customer service, among which larger companies can find:

  • Live Chat
  • Web Self Service
  • Mobile Live Chat
  • Email management
  • Contact Center integration and software

Pricing

Varies by project

 

2. LivePerson

livepersonLivePerson is one of the leading companies providing online customer care solutions. Its LiveEngage platform integrates live chat, social media, voice, content applications, mobile customer support, CRM software as well as advertising and marketing.

The company boasts more than 1.8 billion web visits observed each month. To handle this kind of traffic, the company also launched LP Insights, monitoring a complex set of customer analytics, such as behavior, sentiments and buying patterns.

Its live chat interactions allow contextual customization, so visitors can have meaningful interactions with operators.

The company handles communication needs for some of the largest online retailing brands, such as The Home Depot, IBM or Virgin.

Features

  • Conversion improvement
  • Cross-channel communication
  • Personalized experience
  • Agent productivity tracking
  • Automated customer offers

Pricing

Pricing ranges from $500 / mo for small and mid-size companies to $5000 – $15000 / mo for enterprise users.

 

1. Oracle Live Help on Demand

Oracle-logoOracle made heavy investments in the ecommerce area. Before Oracle acquired no. 3 on our list, it had already bought ATG (Art Technology Group) for $1 billion in 2010. Recent moves show Oracle Live Help on Demand moves toward integration with Oracle Rightnow. Until that happens, Oracle’s Live Help technology still powers some really big retail brands such as Costco, The Home Depot and Procter & Gamble.

Oracle Live Help features live chat, voice and email integration, providing tools for multichannel integration.

The Live Help solution tracks customers, analyzing data left behind, thus improving chat support by personalizing the experience.

As you can see, whether it is the Live Help solution or the Rightnow environment, Oracle is leading the way in online retail live chat and customer support systems. The others, however, are moving fast, are flexible and companies such as Liveperson are soon to challenge the big red.

 

 

 

4 Easy Ways to Better Understand Your Online Customers

understandingAdvances in technology have been revolutionizing the way businesses are conducted. They are also reshaping the landscape on how companies interact with customers. This is a phenomenon that is clearly observed in e-commerce. E-commerce is not only reducing costs but is also increasing efficiency and expanding possible revenues.

Because the Internet is facilitating interaction, it is now possible to instantly and easily understand online customers. A business need not spend much on doing traditional market research. Here are four easy, fast, and less costly ways to better understand the thoughts, behavior, and attitude of online consumers.

  1. Conduct or check out surveys.

Online surveys or polls are designed to determine thoughts and behaviors of online customers. There are many of such studies that cover your sector or industry. If you prefer results and findings that are more specific to your business, you may commission or conduct the surveys. It can be as simple as asking your customers to fill out simple survey forms online. You may also use the free online survey services that are available across the Internet. Survey results can give you an idea of how your online customers think and feel about your business.

  1. Use Web analytics tools.

To date, there are various Web analytics tools that facilitate better understanding of online consumers. The most common are analytics about specific keywords of key phrases that are most commonly used by consumers when using search engines for finding information or products they need. You can use the information to optimize the content of your own online site so that you can take advantage of opportunities brought about by higher search engine rankings.

  1. Check out customers’ testimonials.

You can find out how consumers think about products and services. Testimonials posted by businesses through their own sites may not be reliable as those could be biased. The best and most credible testimonials come from actual consumers who ventilate and air their rants and raves through online forums, discussion boards, and reviews. Check those out to find consumers’ actual opinions about businesses and products.

  1. Test the market.

This option can be quite risky and costly. It is advisable to check out the first three ways enumerated before finally testing the market. You may launch a small-scale product or service launch to determine if online consumers are really ready and are open to try out innovations and new offerings. Actual sales can be the best indication of what consumers really think. Testing the market can lead to two types of decisions: first to pursue or go on with your business activity and second, to stop what you are doing because the market is not yet receptive.

Author: Richard Fisher

About the author:

Richard has been involved in the online marketing industry for several years. After spending time working on user experience optimisation, Richard is now a strategist at Infinity Technologies, one of Australia’s leading ecommerce digital agency.