Business Insider Intelligence forecasts that mobile commerce (m-commerce) payments will make up 7% of US retail sales in 2023, accounting for $387 billion, up from 2% and $105 billion in 2017. Companies will need to boost mobile conversion to cash in on this growth, as only 5% of overall mobile shoppers make a transaction compared with computer users’ 9%, according to a study from Qubit. Respondents said they’d complete more mobile purchases for these top two reasons: if browsing was faster and easier, and if it was easier to find exactly what they want.
FORECAST: US m-commerce payments volumeBI Intelligence
Luxury brand John Varvatos found that its performance was hurting because consumers couldn’t find what they were looking for. Over the past year, the company discovered that its add-to-cart rate was sliding while its mobile conversion was “relatively nonexistent,” VP of digital and e-commerce Mark Gallagher toldInternet Retailer. These issues indicated that consumers were struggling to find products they wanted, especially on mobile.
The company streamlined its mobile navigation to great success. By working with Fluid, an e-commerce design company, John Varvatos found that consumers were leaving the site before they got to the brand’s actual inventory because there were too many steps, so the companies changed the site to allow customers to see products in two clicks instead of three.
Fluid also helped John Varvatos display key categories to drive traffic and sales to them. It made a tab for leather rather than having it as a filter, for example, and prioritized T-shirts, one of its best-selling categories, to give it more visibility. These changes, which were implemented in April among others, helped boost John Varvatos’ mobile sales during its Memorial Day sales event, with mobile revenue rising 55% year-over-year (YoY) and mobile conversion jumping 22% YoY.
Improving the mobile experience through areas like navigation can bolster sales through other channels too. Mobile activities like browsing and research influenced 19% of revenue through sales on a computer in 2017, up from 10% in 2016, according to Qubit’s study.
The effect is particularly relevant for John Varvatos, as 24% of fashion sales through computers were influenced by mobile in 2017. But all types of brands and retailers would do well to make their mobile experience as easy to use as possible, as it enables consumers to find what they’re looking for, which can lead to sales through any number of channels.