How m-commerce is changing the retail landscape for marketers

More and more consumers are looking for bargains and discounts on the go, but have brands caught up?

Retailers can expect 2010 to be another year of struggle, according to a new report from Ovum, but the uptake of technologies such as smartphones has given retailers new hope in reaching and engaging consumers on the go.

New data from Compete has also fueled hopes that 2010 will be the year that m-commerce finally takes off.

Nearly two-fifths of smartphone owners say they have purchased something non-mobile over their mobile phone in the past six months, though many still say they are frustrated with mobile site functionality. And the top shopping-related smartphone activities are still research-based.

More than one-half of smartphone users checked out product descriptions, and many looks for reviews, coupons or better prices. About one-third even bought the item on the mobile channel after seeing it in a store.

Usage of m-commerce features among smartphone users is higher than among all mobile subscribers.

And while retailers will still be looking at how to cut costs, the focus for many in 2010 will be customer engagement and relationships – loyalty is now more important than ever.

The Ovum report, 2010 Trends to Watch: Retail Technology, suggests that retailers should invest in CRM technology in 2010 to build stronger relationships with their customers.

But e-commerce lacks the efficiency in delivery and returns that would provide the same experience as an in-store visit. Therefore, this, along with social networking and mobile phone purchases are two large focuses for the future for retailers. Some retailers and brands have already seen success with these channels including Sccope.

Sccope, the consumer shopping assistant, has launched an iPhone App that brings a combination of prices from the UK’s top 100 retailers (including Amazon, Comet and John Lewis); a bar code scanner to check the best price while shopping, comprehensive product search, and stock and price drop alerts. Sccope updates it prices daily from an independent database provided by NetPrice.

As brands continue to evaluate which mobile opportunities to undertake, it is important to think about how m-commerce can either enhance an existing business or create an entirely new way to interact with consumers.

Retail is an obvious fit for the “enhancement” category simply by extending into the mobile environment. While some brands have left any transaction potential out of their current apps, others, including the likes of Amazon and Pizza Hut (which we’ve written about here before), have  embraced it smartly, and created additional value for their customers.