Mobile commerce returns tricky for retailers

Mobile commerce returns tricky for retailers

Summary: Mobile commerce technologies are heavily touted, but retailers are likely to struggle with returns. Why? Mobile devices are used more to assist shopping instead of closing a deal.

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TOPICS: CXO, E-Commerce, Mobility
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The move toward mobile commerce, or m-commerce, is way more about information than transactions---at least for now, according to Gartner.

Speaking Sunday at the Gartner Symposium and ITXpo, Gartner analyst Miriam Burt had a presentation on how retail chief information officers should prioritize mobile technologies as a way to drive revenue.

Mobile commerce is a key topic given many tech giants are pitching their wares as a revenue-driving cure. Meanwhile, e-commerce and retail are two areas characterized by a lot of enterprise innovation.

Last week in e-commerce: At Walgreens, slow and steady wins the tech race | The future of retail is dynamic pricing. So why can't we get it right? | Does your company's web site need responsive design? | At Tory Burch, a clear-eyed focus on the customer | Mobile commerce ramps, takes larger slice of shopping pie

The biggest takeaway from Burt was that return on investment is tricky for retailers---especially when most consumers aren't going to close a transaction via their mobile devices. The top shopping uses for smartphones revolve around finding stores, checking prices and researching products. As a result, CIOs won't be able to connect revenue directly to mobile.

By 2017, top retailers expect 76.5 percent of sales to come through stores, 14.6 percent via e-commerce and 6.5 percent through mobile, according to a Gartner survey. Overall, mobile is more gateway than sales engine.

Burt noted there are some wins for CIOs chasing mobile as long as technologies map to the customer sales process. Think mobile point of sale terminals being prioritized over payments via smartphones.

Simply put, the chart below indicates that there is no low-hanging ROI fruit with mobile and retailers.

mobile roi gartner chart

Topics: CXO, E-Commerce, Mobility

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  • Retail and Mobile

    Interesting analysis on mobile commerce. Mobile technology has changed the consumer shopping experience and can drive retail sales better than any other media. Retailers should provide secured payment modes to gain the confidence of the customer . I work for McGladrey and there’s a whitepaper that readers of this article will be interested in, it offers great insight into the future of the retail and the consumer products industry @ http://bit.ly/18Skei5
    joelazer