Retailers missing m-commerce opportunities

Those slow to adopt m-commerce are losing out on potential growth in a slow marketplace, according to multichannel software provider

With recent research saying more and more UK consumers are using their mobiles to shop in the last year, retailers appear to be missing the considerable opportunities to be had in the expanding mobile sales channel, new research suggests.

Currently only 12% of retailers have a mobile commerce (m-commerce) strategy in place, while 88% are not yet capitalising on this sales channel, according to a recent survey conducted by Maginus, multichannel retail software provider.

Laggards miss integration opportunities

Of the retailers with an m-commerce strategy currently in place, only 35% were considering integrating it into their other sales channels, with the remaining 65% not even having considered m-commerce as part of their overall multichannel strategy.

"This new channel to market has created a need for hybrid multichannel," said Russell Dorset, Maginus sales and marketing director. "Retailers need to realise the importance of integrating all sales channels to ensure seamless customer service across the business.

"A standalone sales channel is simply not enough, especially as consumers now expect an integrated service that enables them to purchase an item via their mobile device or online and then take it back in-store."

Even with the apparent slow uptake of m-commerce highlighted by Maginus, it also found that 60% of retailers not using this channel were looking to do so in the next 12 months, suggesting the rate at which this sales channel is growing fast in popularity. Of these retailers, 88% agreed that improved customer service and keeping ahead of the competition were the driving factors behind future adoption, closely followed by increased sales and integrating business process (62%).

Security fears need allaying

However, nearly three quarters (70%) of retailers were concerned about security threats. Although, of those, only 20% were worried to the point where they actually would not adopt it.

Dorset added: "With the proliferation of smartphone devices, the emerging trend of mobile commerce looks set to continue to grow in popularity. With the majority of retailers revenue now generated through e-commerce sales and e-commerce, enabling consumers to purchase goods anywhere at any time, it could fast become the predominant sales channel."

A survey commissioned by Tealeaf, conducted by Harris Interactive and published in April, indicated that 10 million online consumers in the UK made a transaction using a mobile device in the last year. But 83% also said they had experienced problems when conducting such mobile transactions.