Tuesday, March 1, 2011

Chapter VI - Think Mobile


Despite the huge adoption of smart phones in US, a huge percentage of business are not aware of the mobile commerce. According to Google 79% of companies are not prepared for this new boundary in world of the electronic commerce. Mobile is changing everything. Since its always plugged to the Web the device is merging what we use to call digital activity with the real activities. Browsing used to be an online activity we do at home or with our laptops but now, with mobile, its becoming something we do on-the-go and this is a new challenge for companies.


The classic funnel process through purchasing is changing radically. With consumers using mobile to research products, compare prices and interacting with other users along the way, consumers are becoming smart and this is transferring a huge bargain power to the client and once more changing the rivalry forces. Competition must now be aware on how to deal with this empowered consumer.  


Recent data published by Google points out that:
  • 39% use the Internet on their smartphones while going to the bathroom
  • 70% have used their smartphones while shopping in-store
  • 88% of people looking for local information have taken action within a day
  • 82% of smartphone users notice mobile ads
Although the future is still open. Till now mobile is been used as a laptop extension with all the browsing and network capacity. So in the end of the funnel process the transaction is made with a credit card information or through a payment system such as PayPal. But the mobile industry is changing very fast and with the introduction of the mobile payment technology, the reality of electronic transactions will be augmented to a new level.