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Mobile Performance KPIs and Best Practices

A Customer-Driven Commerce Whitepaper from MarketLivecopy

wwwmarketlivecom

insightful commercecustomer driven commerce

WHITEPAPER

Mobile Performance KPIs and Best PracticesMarketLive Inc

Since 1995 MarketLive Inc has been the leading provider of eCommerce technology and services that help

fast-growing companies successfully sell goods and services online Designed to meet the unique requirements

of catalogers retailers direct marketers and manufacturers the extensible MarketLivereg eCommerce Suite and

MarketLiversquos best practices-based Intelligent Sellingreg methodology enable merchants to enhance their customersrsquo

experience online while dramatically improving acquisition conversion and retention rates

The MarketLive platform is the most retail-targeted fully featured customizable eCommerce solution on the market

today MarketLive powers many successful retail eCommerce sites including Armani Party City Perricone MD Sport

Chalet Sundance Helzberg John Deere Title Nine Intermix and others

FOR MORE INFORMATION ABOUT THIS WHITEPAPER CONTACT MARKETLIVE INC

marketlivecom

877-341-5729

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Mobile Performance KPIs and Best Practices

The global proliferation of mobile devices has given consumers unprecedented freedom and flexibility to shop when where and how they choose

Smartphone and tablet engagement with brands and retailers continues to surge as more people enjoy the convenience of researching products comparing prices and receiving special promotions all while untethered to their desktops

Smartphone usage grew 25 percent in 2014 and by the end of 2015 more than 2 billion people will own and use these increasingly powerful devices at least once a month

Though from a smaller base tablet ownership is growing at an even faster rate than smartphones at least in the United States soaring 30 percent last year

While there will continue to be vigorous debate about which platform holds the most promise for the future of mobile commerce itrsquos clear that combined they are rapidly changing how shoppers relate to and interact with a wide variety of merchants

Mobile is now the default shopping medium with more than 75 of online engagement with retail brands occurring on mobile devices

Thatrsquos a staggering figure for an industry that just a few years ago was fundamentally focused on and built around the optimization of the desktop e-commerce site

The trend is even more pronounced among young consumers For a third of millennials aged 18 to 24 mobile is their sole online touchpoint

Many retailers have embraced this new reality and are driving the transition from E-commerce to M-commerce by investing in robust mobile sites apps and content and making ldquomobile firstrdquo their organizationrsquos mantra

But there remains significant room for improvement if merchants hope to fully capitalize on the opportunities created by this transitionMobile conversions remain an abysmal 1 less than half the rate of desktop sites and fully 70 percent of the carts opened by mobile shoppers are ultimately abandoned Of course easier-than-ever access makes it easier than ever for shoppers to bail before a sale

Even so the disparity between shoppersrsquo use of mobile devices to access brands and how often they use them to purchase the products theyrsquore interested in is remarkable

Despite two-thirds of online shopping taking page on smartphones and tablets just 11 percent of online purchases are consummated on mobile devices

Thatrsquos a massive gulf one that this whitepaper aims to help merchants bridge by suggestion some best practices and KPIs for mobile commerce

The first section will cover the mobile device as a shopping and buying environment in its own right with strategies and metrics for improving mobile engagement conversion revenue

The second will address mobile as the crossroads of multi-touchpoint shopping and ways to track and improve usage of mobile-to-store and in-store mobile

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All merchants have their own unique history product mix customer base and value proposition But one thing they all face to varying degrees is a commerce landscape that is literally being upended by shoppersrsquo embrace of mobile devices Those merchants who follow their customers into this brave new mobile world will find themselves rewarded with loyalty and robust revenue growth

Optimize mobile devices

Go ldquomobile firstrdquo The first best mobile practice merchants would be wise to embrace is the concept of going ldquomobile firstrdquo From a design perspective that means abandoning the top-down approach of building mobile sites that are little more than shrunken or slimmed down versions of the desktop site

This approach has shown time and time again to fall short frustrating users with slow load-times and search and navigation tools not optimized for small-screen touch enabled environments Instead a mobile-first approach prioritizes the mobile experience and then then using a single base of code that automatically adapts to the size shape and capabilities of the consumerrsquos device or browser adds functionality and content more suitable for the desktop environment

While itrsquos been around for a few years this responsive design approach is gaining traction as the shift to mobile is accelerating

But a mobile-first mindset can have many other expressions than just responsive design which requires a significant investment Integrating mobile metrics into the dashboard and building mobile sites and apps so their performance and usage can be easily tracked are just two examples

Master mobile metrics The more touchpoints merchants create for their customers the more data theyrsquore going to need to understand whorsquos using them on what types of devices and what their experiences are

For desktop sites KPI standbys such as total visits time on site and conversion exit and bounce rates if properly contextualized offer decent insights into customersrsquo interaction with desktop sites and raise red flags for performance issues

In the multi-touchpoint world however more granular data is needed to ensure merchants have as holistic a view of their customersrsquo experiences as possible To this end itrsquos crucial that mobile sites and apps are built with the capability to gather track and segment data in ways that help merchants better understand who their customers are and pinpoint the precise root of performance issues Strategies include

bull Segment by device Merchants should be able to view performance not only by the categories of smartphone tablet and desktoplaptop but also by specific device type Such granular data can inform responsive design criteria for example or help pinpoint the source of slow mobile load time to a single device and carrier

bull Track returning customers Imagine you visit for the first time a small shop not far from your home have a nice chat with the shopkeeper purchase something and walk out Now imagine you return to the same shop the next day to pick out something else and the same shopkeeper acts like theyrsquove never seen you before Thatrsquos what its like for users of desktop and mobile sites that canrsquot distinguish between first time visitors return shoppers and loyal patrons Theyrsquore like shopkeepers

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with short-term memory loss Building in the capability to recognize past visitors and customers -- whether with cookies loyalty programs or other techniques -- allows merchants to tailor their shopping experiences appropriately

bull Understand latency Once retailers can identify return customers counting and tracking the number of visits and time between them can offer insightful information With customers in the multi-touchpoint world encountering brands multiple times using multiple devices before making a purchase itrsquos important for merchants to try to track activity beyond a single session or even a single day Knowing how long it takes shoppers to make a purchase can inform the effectiveness of and help tailor promotional campaigns

bull Consider load timeperformance Nothing turns off mobile users than a slow-loading site Close to three-quarters of consumers expect mobile pages to load in five seconds or less Failure to meet this expectation isnrsquot merely a matter of consumer frustration A one-second delay in mobile page-load time produced an 83 increase in the bounce rate and a 35 reduction in conversion rate To speed things up switch to responsive design or scrupulously streamline mobile sites with fewer or lower resolution photos and simple landing pages

Make checkout a breeze Just as important as making sure mobile sites launch quickly merchants need to vigilantly streamline their mobile checkout processes

Though still a small percentage over total sales mobile revenues grew to 25 of all revenues derived from mobile visits in 2014 according to data from the 2014 MarketLive Performance Index

Thatrsquos a strong showing and evidence that shoppers are overcoming their security concerns about purchasing over mobile devices

To continue improving on that trend merchants need to make the mobile checkout process as frictionless as possible That means removing any unnecessary steps Online behemoth Amazoncom has trained shoppers to be able to purchase items with one click and theyrsquoll soon lose all patience for sites that require them to fill out out multiple fields

To streamline mobile checkout merchants should consider

Implementing social login Research shows that consumers appreciate the option of being able to login using their Facebook Twitter Google+ or other social media account According to marketing firm Monetate 40 of shoppers prefer using social login to creating an account on the eCommerce site

While a speedy checkout is the primary benefit merchants should connect social login with functions across the site from wishlist creation to sharing products to saving cart contents for later reference

MarketLive merchant Title Nine offers shoppers the ability to save cart contents and enables social login that requires nothing beyond a username and password to activate

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This tactic also creates opportunities for merchants to access their customersrsquo social login profiles and even friends with their permission If managed properly these can prove to be a treasure trove of information about shoppers from their birthdays professions interests and friends

Reminder services that incorporate social login usersrsquo friend feeds are an innovative way to tap into these social networks Amazoncom not only lets shoppers know which Facebook friends have birthdays coming up soon but also makes gift recommendations based on friendsrsquo prior purchases and history of product ldquolikesrdquo on Facebook

Heed privacy concerns While merchants should take advantage of social loginrsquos potential to unlock user profile information they must also heed privacy concerns and proceed with caution Shoppers are wary of surrendering too much information while exploring shoppingrsquos digital frontier with 88 saying ldquothere are too many technologies tracking and analyzing our behaviorrdquo and 86 saying ldquoconsumers have lost control of their privacyrdquo mdash thatrsquos 11 higher than the global average Nearly three in four US consumers say remarketing and personalized ads are ldquocreepyrdquo And on mobile platforms 42 of consumers say accessing their geographic location is an invasion of privacy

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To allay concerns about privacy transparency should be the norm and merchants should prioritize what data they need to track key metrics Once theyrsquove convinced shoppers to engage as registered site users merchants can request further information incrementally

Offer payment alternatives Just as social login speeds the check-out process so too can offering multiple alternative payment options whose popularity continues to soar as shoppers seek ways to skip entry of credit card data and eliminate checkout steps

Technology researcher Forrester estimates US consumers made $52 billion in mobile payments in 2014 and forecasts they will ramp up their mobile spending over the next five years to $142 billion a 173 percent increase In addition to the convenience and security alternative payments offer the increase will be due to intense competition in the space PayPalrsquos dominance of the space is being challenged by heavyweights like Visa and MasterCard whose Visa Checkout

and MasterPass options allow users a simple checkout process linked through their credit cards ApplePay and Google Wallet whose contactless payment solutions promise to unify the online and in-store payment worlds and AmazonPay which facilitates order fulfillment using all the payment and shipping data already entered into a users Amazon account

With so many new payment options until therersquos a shakeout in the crowded field it might be wise for merchants to promote which they offer before the final phase of checkout so shoppers know upfront their exit will be swift HSNcom promotes the availability of PayPal from product pages by including a ldquocheckout with PayPalrdquo link alongside ldquoadd to cartrdquo

Closely track app performance Building a separate mobile app is an increasingly popular approach to engaging with customers and increasing brand loyalty Once an app is installed on a mobile device instant access is never more than a tap away But apps canrsquot just be thrown out there for downloading and forgotten They require regular updating monitoring to understand how customer are using them and whether theyrsquore performing as expected

Forrester took a deep dive into the metrics merchants need to follow to keep their mobile apps on track and found that they fall into three categories Business metrics such as average revenue per user click-through rates for ads and tracking revenue based on device type are all examples of key KPIs for mobile apps Engagement metrics help measure increased product awareness brand identification and customer loyalty by providing feedback on how different groups of people use a mobile app Forrester found

Useful metrics include the percentage of people who downloading an app and actually use it how frequently and how long they use it and how they rate it Finally technical metrics can track performance data such as crashes bugs and average load times and can even gather contextual data such as location speed temperature and direction (Measuring Mobile Apps November 2014)

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Mobile at the crossroads

While online sales have historically been seen as a threat to brick-and-mortar retailers the ubiquity of mobile devices has created huge opportunities that can help retailers drive sales at physical stores as well

In this way mobile devices have become the crossroads of multi-touchpoint shopping allowing users to make online purchases directly with their devices or directing them to a store down the road to pick up what theyrsquore afterMobile strategies better to integrate the mobile and in-store environments include

Make store locators prominent on mobile Shoppers often visit mobile sites and apps not because theyrsquore interested in making an online purchase but because theyrsquore trying to find a physical store Store locators that use either zip codes or GPS location data are a basic but important tool for helping shoppers quickly find the physical location closest to them and drive retail foot traffic

Use inventory look-up tools When a search of a mobile site reveals the item to be out-of-stock online its availability in stores if possible should be clearly communicated If a merchantrsquos site doesnrsquot have that capability at the very least mobile sites should direct shoppers to stores if the item isnrsquot a Web exclusive Promoting in-store pickup for people who donrsquot want to wait for shipping and in-store consultations with salespeople are other ways to drive mobile-to-store traffic

Once shoppers are in the physical stores donrsquot expect them to put away their mobile devices Anyone whorsquos spent any time on the showroom floor recently has observed the way shoppers

consult their devices about the individual items right in front of them whether checking competitorrsquos prices or accessing deeper product details and descriptions

Retailers should capitalize on shopperrsquos strong connection to their mobile devices even when theyrsquore standing in an store by

QR codes Using QR codes on signage is one way to track how store shoppers access online product information and keep them from wandering off to a competitorrsquos site in search of the details the seek Some QR codes scanners are linked to the store inventory and can tell shoppers the quantity size and color currently in stock of the product scanned Retailers can also reward customers with coupons and special offers when they scan QR codes creating a sense of loyalty

Empowering floor sales staff to consult online resources including coupons and discount offers and even to assist with online order placement is another way to help engage in-store customers The ability to quickly access relevant product information and connect shoppers with discounts via any available touchpoint builds trust and credibility

In-store redemption of digital coupons Increasingly merchants are including coupons redeemable in-store in email promotions which shoppers can present on their mobile devices at checkout in retail outlets Last year fully 55 of consumers said they planned to access promotional codes and coupons on their smartphones while in-store during the holiday season giving merchants have a ripe opportunity to gain insights into which promotions drive sales across touchpoints

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Keep an eye on iBeacons iBeacons are the Apple brand name for a micro-location technology in mobile apps that is transmitted using Bluetooth Low Energy (BLE) The signals can be transmitted between compatible devices but also from in-store hardware known as beacons Macyrsquos has recently been experimenting with the technology Customers who enter the store with the Shopkick app installed on their iPhones are alerted about sales promotions and items that might interest them

E-receipts Though it doesnrsquot require a mobile device to accomplish offering to send a receipt via email gives merchants the opportunity to invite further interaction ndash and an email address they can connect to other online activity via analytics and the CRM database

Beyond the in-store environment there are numerous ways merchants can reach out to mobile users including

Text messages marketing Developing a short message service or SMS can help merchants reach the broadest possible mobile audience Fully 81 of cell phone users send and receive text messages compared with 60 who browse the Internet on their devices and 50 who download apps the Pew Internet amp American Life Project found This near-universal usage extends globally and even to those using the most sophisticated mobile phones in Europe for example 90 of consumers armed with an iPhone still report using text-messaging frequently (Forrester Research The State Of Mobile Technology For Marketers October 2014) Limited-time alerts post-purchase notifications and in-store purchase support are just a few of the ways SMS technology can be effectively utilized

Site-to-social activity Merchants should equip their eCommerce and mobile sites with ldquoLikerdquo and ldquoPinrdquo buttons that make social sharing seamless and then track usage of those tools They should also keep an eye on in-social purchasing opportunities Both Twitter and Facebook are experimenting with native purchasing tools that would enable brands to add a ldquobuyrdquo button to product-related posts -- giving merchants a far more direct route to monetizing social media than previously possible In the meantime merchants can experiment with in-Facebook purchasing via apps that enable direct sales of gift cards and other products

Conclusion Putting mobile first will keep retailers in front of the competition

The mobile shopping revolution presents significant challenges for merchants as they try to adapt to and meet their customersrsquo ever-changing and increasing high expectations for seamless shopping experiences across touchpoints With a mobile-first mindset willingness to experiment and relentless focus on metrics merchants should be able to not only strengthen their relationships with existing customers but bring billions of new ones around the globe within reach

customer driven commerce

FOR MORE INFORMATION

wwwmarketlivecom

HEADQUARTERS

MarketLive Inc

617 B 2nd Street

Petaluma California 94952

877-341-5729

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