3 Executive summary 4 The mobile opportunity 5 A strategic approach 7 Mobile transactions 9 Key takeouts 10 About the author Contents 2 of 10 3 of 10 Consumers can now conduct research, interact with companies, check prices and make purchases instantly, wherever they are, 24 hours a day. The implications of this shift are signicant for corporates. Businesses need to put mobile at the centre of their online activities, assess its impact on their value proposition and develop accessible mobile sites. We examine how businesses can develop an effective mobile strategy and assess the rapidly developing mobile payments landscape. Smartphones are everywhere: more than half of UK adults own one and global sales of the devices recently overtook those of traditional mobile phones for the rst time. Executive summary A cross-platform presence Website users are demonstrating an increasing tendency to switch devices when conducting online searches according to Google, 67% of search sessions in all industries start on mobile and nish on a desktop. Even when consumers dont complete purchases via mobile and they are showing a greater willingness to do so its a vital part of the research process. In the business-to-business arena, time-poor executives are using mobile to research businesses and services or simply to nd a companys phone number and make a call. 4 of 10 When you sit on a train or bus and see people checking their emails, browsing the web or accessing Facebook or Twitter on their mobile phones, it can be hard to believe that Apple only launched the iPhone in 2007. An increasingly smart UK Today 51% of UK adults own a smartphone, according to communications regulator Ofcom, and that rose to 70% among 16-24 year-olds. A recent report by market research rm IDC found that 216.2 million smartphones sold worldwide in the rst quarter of 2013 accounted for more than half of all mobile phone sales for the rst time. Its a rapid shift and one that will only be accelerated by the roll-out of 4G networks across the UK, Europe and the US. The implications for corporates as well as parts of the public sector are signicant, particularly in consumer- facing industries such as retail and utilities. The ability to access the internet on the move is making consumers increasingly demanding; they expect to be able to nd information, communicate with companies and make purchases instantly, 24/7, wherever they are. The increasing ubiquity of smartphones means that businesses need to put mobile at the heart of their online activities. As a result, businesses need to put mobile at the centre of their online activities. Companies cant predict what device someones going to be using, says Alistair Dent, Head of Pay-Per-Click at e-marketing agency Periscopix. If Im at home, I might have two devices in front of me, plus my smart TV and my computer. Its almost a random chance which ones going to be at hand when I want to perform a search. Changing attitudes Kate Eves, Industry Manager at Google, believes companies are increasingly realising the opportunities and challenges that mobile presents. One to two years ago, when we talked to the businesses we worked with, they would say: Why should I invest in mobile? Now theyre asking: How should I invest in mobile? Some businesses still need to consider what it could mean for them indeed, Barclays recent report reveals that only 44% of businesses that are online have a specic mobile strategy. The mobile opportunity 51% Proportion of UK adults who owned a smartphone in Q1 2013. Source: Ofcom 5 of 10 So how can corporates develop an effective mobile strategy? The starting point is to look at how they currently sell to, and communicate with, their customers. If, for example, youre a retailer and all your sales are currently happening on the high street, a mobile strategy could provide an additional sales channel and revenue stream, explains Ruairidh Roberts, Industry Manager at Google. Businesses that already get a lot of online visits from user searches will denitely want a good mobile proposition to improve their search performance and increase click-through rates, which will generate additional sales opportunities. Roberts cites eBay and Amazon as examples of organisations that have developed very successful mobile propositions. They have really got to grips with their app proposition and mobile sites; they are thumb-friendly, have good navigation and offer very similar experiences to desktop so people know their way around. Good research and an assessment of your current digital sites are the starting points for an effective mobile strategy. A strategic approach Checklist: Key steps to developing a mobile strategy Identify how mobile could enhance the way you currently communicate with, and sell to, customers Assess how mobile changes your value proposition; it can bring both opportunities and threats Do your research. Analyse how mobile users are navigating your current website and then build your strategy around this, as well as what you think users will want to do in future Think about the context in which people are using a device: are they at home, at work, or commuting? Consider using responsive web design to build websites that can adapt to whether a smartphone, desktop or tablet is being used If your budget is limited, prioritise the development of a mobile-optimised site ahead of an app. A changing value proposition Next, rms should think about how mobile changes their value proposition. This can mean new opportunities: a bar and restaurant, for example, might take advantage of new apps to allow customers to pay their own bill (rather than having to wait for it to be brought to their table) or to send vouchers to a regular customers phone when they enter the premises. Businesses should remember, however, that mobile technology can also bring challenges: Googles research has found that 58% of men will compare the price of a product on their mobile while in a store to see if they could get it cheaper elsewhere on the high street. It means that your competitors are able to be there in the store, Eves says.
A key part of the research process is to assess your current digital destinations and how your visitors are using them. Eves notes that while many businesses have analytics packages on their existing websites, they fail to make use of the resulting data. Look at your analytics and nd out how much mobile trafc your site is already Consistency of experience is really important. Kate Eves, Industry Manager at Google getting, she suggests, Then build your strategy around what customers are doing on your site on mobiles, and what you think they might want to do in future. This should be an on-going process that continues once a mobile proposition is up and running. Often businesses have a website that has been developed for desktops and laptops (and possibly tablets) but isnt optimised for mobile devices, meaning that users may struggle to navigate the site or give up altogether. As a result, companies are increasingly using responsive web design to create sites that adjust to the device being used. Consistency of experience is really important, says Eves. 6 of 10 Start with a site Of course, many businesses may have limited budgets to invest in mobile. In this case, Eves and Roberts agree that organisations should look to develop a mobile-optimised site ahead of an app. While apps are good for providing a specic, shortened experience for a particular audience or user need, a new version must be created for different operating systems such as iOS and Android. In contrast, a mobile site offers a broader range of content and is based around one infrastructure that will also provide more data to inform future strategy. Dent, Periscopix, argues that businesses also need to think about how the context in which a person uses a device may affect their browsing and purchasing behaviour. Somebody on a mobile device in rush hour is probably a commuter; somebody on a tablet in the evening is probably at home; while somebody on a desktop at 1pm may be at work on their lunch break. Each one may be using the same keywords to search, but their needs could be different. He adds: If one has a different conversion rate from another in terms of generating sales, thats a strong sign about which one is a research context and which is a purchasing context, assuming that youre making it equally easy to complete the action you want. You can then use that data to optimise your online marketing expenditure. 58% Men who compare the price of a product on their mobile while in a store to see if they could get it cheaper elsewhere on the high street. Source: Google 7 of 10 The rapid pace of change in mobile is underlined by consumers increasing willingness to use their devices to complete transactions. According to IMRG CapGemini, sales of 7.5bn were made through smartphones and tablets in the UK in 2012. Their share of all e-retail sales averaged 12% over the year triple the level of 2011 and reached 20% in the rst quarter of 2013. Theres still work to do in this area, however. Research conducted for mobile and web payments company Jumio shows that 66% of consumers in the US who have shopped with their smartphone or tablet have failed to complete a transaction owing to obstacles encountered during the checkout process, which ranged from excessive complexity to concerns over security. Todays consumers see mobile not just as a research tool but as a quick and convenient way of making payments. Mobile transactions 7.5bn Total UK retail sales made via smartphones and tablets in 2012. Source: IMRG CapGemini typical display and print advertisements do not feature a direct response element. This means that the impact of advertising is difcult to measure and sales conversion is fragmented. Providing mobile solutions In response to these issues, Barclays has introduced two new payment functionalities within the Barclays Pingit app. The buy it proposition bridges the gap between advertising and sales by allowing consumers to buy directly from any form of digital or printed collateral, simply by scanning a QR code. The mobile checkout functionality collapses the m-commerce process into three easy steps, enabling a secure and consistent mobile-optimised checkout experience. Walters explains: Were trying to provide solutions to help corporates interact with consumers. The easier they make it for the consumer, the faster they get paid and the better the customer experience. With such a strong response in the market, Barclays Pingit can allow forward- thinking corporates to enhance their mobile strategy and engage with their consumers on another level. We recognise that our corporate customers face a large number of fast-developing challenges and our absolute aim is to help them achieve their ambitions. Simple and secure Making payments from smartphones as simple, efcient and secure as possible will be essential to sustain mobile growth and generate further opportunities for business. Thats certainly the philosophy that has underpinned the development of the Barclays Pingit app, according to Mike Walters, Head of UK Corporate Payments at Barclays. We started by looking at the needs of our corporate clients customers, he explains. Our approach to mobile payments is very much based on the idea that the consumer market and consumers access to, and use of, technology is changing very quickly.
Barclays Pingit allows anyone, not just Barclays customers, to use their smartphone to make payments direct from their bank account by entering a ve-digit pin. Originally developed by the retail banking division, the app can now be used by corporates looking for a low-risk way to enter into mobile commerce. He adds: Weve learned how important it is to be specic about what were trying to achieve. Weve been really clear and crisp about what each release does and focused on making the app as simple as possible for consumers and corporate users. So far Barclays Pingit has been downloaded 1.8 million times. The average value of transactions completed via the app is 75, and some consumers use it to make the maximum 15,000 payment to corporates. Walters says that consumers trust in banks to move their money has been a big enabler for this growth and has allowed Barclays to create a secure and reliable environment where people can complete transactions with a wide range of different businesses. According to Walters, mobile commerce has grown by 250% in the last two years; this growth is reected in the corporate uptake of the app. Many of the payment solutions in the market today have not been optimised for an m-commerce environment and this is reected in high abandonment rates within mobile checkouts. There is also a lost opportunity where 1.8 million Total downloads for the Barclays Pingit app. Source: Barclays To read more about Barclays Pingit for corporates, click here 8 of 10 Were trying to provide solutions to help corporates interact with consumers. Mike Walters, Head of UK Corporate Payments at Barclays To nd out more about how we can help you, visit barclays.com/corporatebanking, or contact your Relationship Director on 0800 015 1921 * . Key takeouts Rapid growth in sales and use of smartphones is making customers more demanding: they increasingly expect access to information on mobile devices and instant communication with businesses Businesses are now asking how they should invest in mobile rather than why Mobile needs to be integral to everything that you do online nearly half of all online businesses have a specic mobile strategy. Do you? Mobile can change a businesss value proposition, creating both opportunities and threats Organisations with limited budgets should prioritise the development of a mobile-optimised site, using any existing web analytics data to assess users needs Mobile has particular implications for retailers: 58% of men compare prices on their mobiles when shopping in store Barclays development of its Barclays Pingit app, which allows customers to send and receive payments using their mobile phone, makes it well placed to offer help and support on mobile commerce. *To maintain a high quality of service, your call may be monitored or recorded for training and security purposes. Calls to 0800 numbers are free of charge, when calling from a UK landline. Charges may apply when using a mobile phone or when calling from abroad. Lines are open from 8am to 6pm Monday to Friday. 9 of 10 Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered ofce at 1 Churchill Place, London E14 5HP. 10 of 10 Jane Galvin Head of Mid-Corporates, London Jane Galvin is Managing Director and Head of London Mid-Corporate Banking. Jane has held a variety of roles at Barclays for over 25 years within both the retail and corporate environment. She possesses a wealth of banking experience and has led senior teams through challenging times. Jane is focused on shaping the future growth of the key mid-corporate banking market in London and additionally has responsibility for the wider UK strategy. Prior to this role, Jane was Head of Professional Services for Corporate Banking and led a team of Directors in the UK and US, working in partnership with rms to support their global strategies. Jane is a regular speaker at events on a variety of topics from law rm nancing to women on boards. M: 07775 543645 E: jane.galvin@barclays.com About the author