Dress for Financial Success with Better Mobile Commerce
It’s no secret mobile commerce is huge: it’s projected to exceed three quarters of a trillion dollars next year. What may surprise you is that online apparel shoppers are leading the way! Just a few quick data points:
- In the hours after U.S. Women’s Soccer team won the 2015 World Cup, 2 out of 3 online sales came from smartphones and tablets at Fanatics, a sports apparel retailer.
- 41% of Thanksgiving-through-Cyber Monday sales came from mobile devices for European fashion retailer Yoox Net-A-Porters.
- Mobile sales increased 100% last year for Macy’s – which gets 84% of its revenue from apparel and accessories sales.
- “A little north of 70% of our emails were first opened on mobile” – apparel retailer, Matt Watson, Co-founder at Country Club Prep.
In short, it’s absolutely critical that apparel merchants deliver the best possible mobile commerce experience if they want to maximize sales. What does that involve?
- Mobile-optimized website. Shop.com doubled its mobile conversion rate by migrating to a responsive website design. Responsive is a web format that adapts the viewing experience to the device the consumer is using.
- Offer a mobile app. Mobile app sales soared 68.7% (nearly $25 billion) for Internet Retailer’s “Mobile 500” even though the number of mobile apps increased by just 12.6%.
- Fast checkout. Only 51% of mobile users said they were willing to wait more than two seconds for a web page to load (down from 63% of mobile users just 5 years ago).
A tricky aspect of mobile checkout for apparel retailers is how to balance fast performance against fraud risk. After all, mobile transactions are 2X more likely to involve fraud. Yet despite the higher risk, a number of merchants are actually forgoing steps in their fraud prevention process in order to speed mobile checkouts.
That may work as a stopgap measure, but apparel retailers who want the highest ROI and long-term profitability are adopting mobile strategies that maximize financial performance, including:
- Maximizing mobile revenue
- Fewer false positives. Utilize superior mobile screening technology + artificial intelligence + custom mobile rules.
- Lower mobile cart abandonment. Speed mobile checkout with frictionless or zero-overhead process.
- Minimizing mobile fraud losses
- Better screening. Employ mobile-optimized screening technologies like mobile device ID, mobile geo-location, Buyer Personas, etc.
- Mobile-specific rules. Apply mobile data or insights to optimize screening, reviews and approvals on mobile transactions.
- Reducing operational expense of mobile fraud prevention
- Fewer manual reviews. Resolve 96% to 100% of mobile transactions with automation.
- Integrated platform. Deploy a single engine and process for all transactions — mCommerce, eCommerce, telesales, etc.
Of course, a best-in-class mobile fraud prevention solution like Kount makes implementing these strategies much easier, as it delivers these advanced capabilities required:
- Identify if a mobile device is being used for transaction
- Determine what type of mobile device is being used
- Use geo-location to pinpoint the “real” geo-location of the mobile device
- Determine if the device is a pre-paid device
- Know if the phone number being used is a forwarded number
- Associate other transactions with the mobile device
- Determine if it is a card-present or a card-not-present mobile transaction
If you haven’t updated your mobile commerce fraud prevention process in a while, it may be out of style. And that financial faux pas could cost you dearly. Make sure you dress for financial success with better mobile commerce.