When Paul Skeldon commented in 2011 that “M-commerce is, frankly, commerce on steroids” he surely couldn’t have expected such a rush for customers to buy via mobile devices. Recent figures from CapGemini for the year to the end of March 2012 show that m-commerce has grown a staggering 254% and now a staggering 38% of smartphone users have purchased using their phone.
Whilst average conversion rates have doubled from 0.7% to 1.4%, the average conversion rate for desktop-based purchasers is still at 4.13% – purely because many e-commerce operators have not yet implemented an m-commerce solution. These figures are skewed, however, as the report only focuses on the top 100 U.K. e-tailers and not the many tens of thousands of e-commerce sites that have as yet become m-commerce players are witnessing much lower conversion rates.
The evidence is clear; having mobile-enabled commerce can greatly increase sales volumes given that Affiliate Window saw that 11.2% of all traffic and 7.3% of sales through their network came via mobile devices. Taking those figures as indicators, adding m-commerce to your customer acquisition strategy should, at the most pessimistic level, double your conversion rate. In doing so, a typical 100,000 visitor site should instantly add 140 sales per month. But don’t take our word for it, the Internet Retailer report suggests “retailers with m-commerce sites say once an m-commerce site is offered, conversion increases significantly.”
Despite the evidence (pdf) highlighting that smartphone sales outstripped those of PCs for the first time last year, many retailers are still yet to confirm the size of the issue. To establish this simply visit your analytics provider. If it’s Google Analytics then you can simply find this by clicking “mobile” in your right hand menu, and then “Overview”:
You should then see as a screen detailing the volume of traffic from those on Mobile devices. For those with simple “goals” set up you should be able to see your conversion rate and for those with the ecommerce module set up you should be able to see the £ value of sales via mobile devices and then compare to non-mobile. For one particular retailer the figures show a significant difference between their conversion rate, and value per visitor from mobile and non-mobile.
Again taking the pessimistic view that we could double your mobile conversion rate, this retailer would expect an increase of £43k in revenue over a month. Compare that to our average costs of£70/m, this figure just cannot be ignored. Even for iPhone visitors alone the retailer could expect a £6k/m increase in revenue and our costs would have been recouped in the first day.
If you are interested in doubling your mobile sales let us know and we’ll show you how.