Mobile commerce is “sky rocketing” according to the latest Ecommerce Quarterly study from Monetate. It has uncovered the most dramatic changes in mobile commerce to date, with mobile traffic growing by 120%, over the past year, overtaking traffic from tablets. By comparison, tablet traffic grew by 35% and desktop traffic remained flat.
While mobile traffic has increased, revenue driven by mobile transactions remains low. Monetate’s EQ2 shows that while mobile devices are now responsible for 16 percent of all ecommerce traffic, they continue to drive less than four percent of revenue. Moreover, a mobile customer’s visit to an ecommerce website has a 50 percent higher bounce rate, a 30 percent lower add-to-cart rate, and is 10 percent more likely to abandon cart.
However, there are indicators that revenue from mobile devices is on the rise. Once mobile customers are ‘ready to buy,’ they do it far faster than tablet or desktop customers (page views to purchase – mobile: 21.3; tablet: 35.4; desktop: 34.5). Mobile customers who navigate directly to ecommerce sites were more than twice as likely to complete a purchase than customers arriving from a search engine, and they were nearly three times more likely to convert than those who came through an advertising channel.
“Mobile commerce traffic is increasing dramatically as consumers become more comfortable shopping via mobile. It’s getting easier too, with increased screen sizes and mobile payment systems,” said Lucinda Duncalfe, CEO, Monetate. “But the low conversion rates imply that brands need to create more relevant, personalized mobile experiences to take advantage of the opportunity. Leaders will drive new revenue by delivering the right, personalized, experience for mobile consumers.”
In addition to ecommerce data, the EQ2 offers ‘takeaway’ advice for marketers and insight from thought leaders in the industry, including technology entrepreneur Gary Vaynerchuk and Jay Henderson, Strategy Director, IBM ExperienceOne.
“It’s safe to say that 2014 is the breakout year for mobile – at least from an ecommerce standpoint – but to really capture the tremendous opportunity, companies will need to rethink their mobile strategies, starting with assessing the customer and the customer’s context,” said Jay Henderson, Strategy Director, IBM ExperienceOne, and contributor to Monetate’s EQ2 2014. “It’s a fairly complex process that involves reworking sites, using data to improve navigation and deepen connections, and personalizing the mobile presence.”
The EQ2 also captured data on the social mobile commerce landscape, finding that while social drives just .12 percent conversion with an average bounce rate of 61 percent, social mobile customers have the highest average order value ($106.12) of any mobile customer segment. Still, social mobile commerce lags far behind other channels.