Mobile Commerce Part II: Increasing Adoption

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1 Mobile Commerce Part II: Increasing Adoption Merchant & User Behavior

2 Today we will look at two aspects of adoption - Consumer Adoption - Merchant Adoption The two silos above would be examined from some basic on-ground research that was conducted. We will specifically be discussing the behavioral aspect of adoption. Most of these elements can be applied to any mobile commerce market. This presentation will only discuss the Consumer Adoption aspect of Mobile Commerce.

3 While much emphasis is provided to post-sales personas, pre-sales personas are immensely crucial when it comes to the early stages of adoption. Two basic questions: - Who is your buyer? (classify them into multiple groups) - Who do they transact with? (their transaction circle)

4 Who is the Buyer? Some basic questions about the buyer would be to assemble a Buyer s anatomy: Age, Sex, Martial Status, Income Bracket, etc. these are the easy questions. The important questions are not being asked. The next 3 slides show a sample of the questions that we asked.

5 Who is the Buyer? - Their definition of e-commerce / m-commerce? - The types of payment instruments they have? - Number of Bank Accounts they have? - Phone(s) Make/Model - Featured vs. Non-Featured Phone - Apps installed - Frequently used Apps? - Local vs. International Apps? - Frequency of Phone use (including weekends)

6 Who is the Buyer? - Payment & Banking Apps installed on the phone? - Biometric features on the phone? - NFC enabled or not? - Contents of their Wallet (not the phone, but actual physical wallet)? - How many payment cards they carry? - Loyalty cards? - Coupons or other membership cards?

7 Who is the Buyer? - Most frequently used payment card? - Average Cash carried? - Most used mechanism for getting cash? - Frequency of use of Mobile/Internet Bank Apps? - What do they use these apps for? Balance inquiry? - Missing features (in their own opinion)? - Have they ever paid using social media? ? - Comfort level & speed at which they use their phone? - How much SMS vs. Instant Messaging they do?

8 Who is the Buyer? - Though our sample size was small (84 people), the questions were plentiful, about Side notes taken during the survey were averaging about words, with some important aspects of their persona, recorded.

9 Who Do They Transact With? - Having gathered the personas, it was equally important to know who these buyers were interacting (transacting with). - The transacting circle could be online, offline or a mix. We did not differentiate between the three choices. The next two slides briefly spell out the questions we asked to know of their transaction circle better.

10 Who Do They Transact With? - List all the entities they can remember interacting and paying within the last 30 days. - Helping the buyer think and reach further back, payments like tuition fees, club memberships, vacation travels, etc. - Group all the payees (grocer, salon, school/education, fuel, family, friends, loans, credit cards, doctor, domestic help, etc.)

11 Who Do They Transact With? - Created a pie chart of how and where their money went when they paid out. The pie charts varied for each socio-economic class. - Not surprisingly, they had very little in common when comparing different income brackets - Similarities between different buyers of the same social economic class were plenty. - Determine frequency, amount and if available (time) when such payments were made.

12 After analyzing the results for the very first time we could VERY accurately define who the multiple personas were. Who they are, who they interact & transact with. The who, how, when, where and why were essentially answered.

13 Having a near fingerprint of how each of your Buyer looks like (from a behavioral point of view) allows payment providers and merchants to make informed decisions on their service offering. Many mistakes can be course-corrected once detailed performa are available. A majority of the merchants and payment providers are behind the curve when it comes to spending time, money and resources on Buyer s persona. Improved Persona Visibility = Better Decisions + Higher Success Ratio.