tag:www.econsultancy.com,2008:/topics/payments-2 Latest Payments content from Econsultancy 2016-12-02T10:31:15+00:00 tag:www.econsultancy.com,2008:BlogPost/68590 2016-12-02T10:31:15+00:00 2016-12-02T10:31:15+00:00 10 dazzling digital marketing stats from this week Nikki Gilliland <p>This week’s roundup is unashamedly festive, with news about Christmas shopping, social media conversation, consumer trust and more.</p> <p>Don’t forget to download the <a href="https://econsultancy.com/reports/internet-statistics-compendium">Internet Statistics Compendium</a> for more trusty insight.</p> <h3>85% of UK consumers to buy half of their Christmas gifts online</h3> <p>With <a href="https://econsultancy.com/blog/68587-black-friday-cyber-monday-2016-ecommerce-stats-bonanza/" target="_blank">Black Friday and Cyber Monday</a> out of the way, Tryzens has revealed that the majority of UK consumers will shop for Christmas online this year.</p> <p>A survey found that 85% of UK consumers will buy at least half their gifts online, while 56% will shop via their smartphones and tablets.</p> <p>22% of people are also reported to have started their Christmas shopping in October and 33% in November.</p> <p>Lastly, a very eager 5% started way back in January 2016.</p> <h3>Over 50% of top UK sites use at least one content recommendation engine</h3> <p>The New Yorker recently stopped using <a href="http://www.8ms.com/2014/02/20/rise-content-recommendation-engines/" target="_blank">content recommendation engines</a> – or monetization platforms known for their 'Around the Web' suggestions – due to allegations that they potentially support questionable content.</p> <p>However, SimilarTech has found that they are in widespread use both in the UK and US.</p> <p>Over 50% of top media sites in the UK use one or more them, and 75 out of 100 biggest online publications do the same.</p> <p>In fact, going against the assumption that they are going out of favour, the number of sites using content recommendation engines appears to be growing.</p> <p><img src="https://assets.econsultancy.com/images/0008/1992/Number-of-Sites-Using-Taboola-and-Outbrain---Top-10k-sites.png" alt="" width="750" height="364"></p> <h3>Christmas conversation hits social peak on 1st December</h3> <p>New insight from Carat UK suggests we’re less excited about Christmas this year, with a 5% decrease of Christmas mentions on Twitter.</p> <p>However, while figures suggest that 45% of people start to feel excited about Christmas ahead of December, it only become socially acceptable to start posting from 1st December, demonstrated by the fact that Christmas tweets increased by a whopping 65% on the same day last year.</p> <p>As a result of the collective excitement on 1st December people start planning which gifts to buy people, though 46% of shoppers are said to leave present buying to the second half of the month.</p> <p><img src="https://assets.econsultancy.com/images/0008/1991/Social_Christmas.JPG" alt="" width="710" height="385"></p> <h3>Delivery options to determine choice of retailers</h3> <p>According to Shutl, retailers need to rely on more than reputation to ensure sales this Christmas.</p> <p>In a survey of 1,070 online shoppers, 95% said they would consider going to another retailer if a site couldn’t offer a delivery that suited their needs. Likewise, 41% said they’d definitely shop elsewhere if the last mile delivery wasn’t right for them.</p> <p>With 42% of shoppers having higher online delivery expectations than in 2015, the pressure for retailers is on.</p> <h3>Married male millennials are the most engaged consumers, apparently</h3> <p>A study by Affinion has delved into the engagement levels of consumers all over the world.</p> <p>In a Customer Engagement Score of between one and 100, millennials were found to have the highest.</p> <p>Those that were married also reported higher engagement levels, with an average score of 67 compared with 64 in singletons.</p> <p>Likewise, males are the most engaged gender, reporting a stronger bond with their banks and mobile phone providers.</p> <h3>M&amp;S named as the UK’s favourite Christmas shop</h3> <p>New research from Rakuten Marketing has revealed that Marks &amp; Spencer is officially the nation’s favourite Christmas shop, with nearly a third of Brits planning to spend the most there this December.</p> <p>In second position is Boots, and despite a <a href="https://econsultancy.com/blog/68484-the-top-10-most-shared-christmas-ads-of-all-time" target="_blank">strong advertising presence at this time of year,</a> John Lewis comes in third.</p> <p>The survey found that just 27% of British consumers make gift purchase decisions based on a brand’s Christmas TV ad campaign. Instead, 33% say they use retailer websites to source information, and 31% say recommendations from family and friends.</p> <p><img src="https://assets.econsultancy.com/images/0008/1994/M_S.jpg" alt="" width="700" height="466"></p> <h3>31% of shoppers abandon baskets due to complicated payment processes</h3> <p>In a survey of 1,000 UK adults, PPRO Group has discovered that online merchants are failing to offer customers their preferred payment option, resulting in 31% of consumers <a href="https://econsultancy.com/blog/67120-12-ways-to-reduce-basket-abandonment-on-your-ecommerce-site/" target="_blank">abandoning purchases at the checkout</a>.</p> <p>The survey also found that, this Christmas, 61% of consumers will be buying gifts online at home while watching TV, while 13% will shop from their smartphones while lying in bed.</p> <p>Bad news for employers - 17% also admit they will be buying their Christmas gifts online while at work.</p> <h3>UK sees higher online conversation rates than US </h3> <p>The Ecommerce Quarterly report from Monetate has revealed that UK retailers are faring better when it comes to online conversions.</p> <p>It found that the UK is converting more than the US for the second year in a row, taking into account figures from both 2015 and 2016.</p> <p>What’s more, while add-to-basket rates have dropped in the US, the UK’s has steadily increased. </p> <p>Average order value also saw month-on-month improvement in the UK throughout the last year.</p> <p><img src="https://assets.econsultancy.com/images/0008/1993/Monetate.JPG" alt="" width="780" height="142"></p> <h3>User-generated content results in greater consumer trust</h3> <p>A new report by Olapic has found that user-generated images are much more likely to generate consumer trust than those created by marketers.</p> <p>In a survey of more than 4,500 active social media users in the US and Europe, 46% of people said they would place trust in user generated content, with just 27% saying they’d trust content created by brands. Only 5% said they would trust straight-forward advertising. </p> <p>In terms of the preferred forms of user generated content, 52% cited photos as the best, ahead of 27% for video and 12% for written content.  </p> <p><img src="https://assets.econsultancy.com/images/0008/1995/Starbucks_UGC.JPG" alt="" width="750" height="479"></p> tag:www.econsultancy.com,2008:BlogPost/68587 2016-12-01T14:56:00+00:00 2016-12-01T14:56:00+00:00 Black Friday & Cyber Monday 2016 ecommerce stats bonanza Nikki Gilliland <h3>Black Friday 2016 breaks US online sales records</h3> <p>Adobe has revealed that this year’s Black Friday shopping frenzy broke online sales records in the US, with $3.34bn being spent online and a 17.7% increase on sales last year.</p> <p>It also found that retailers who invested in mobile, email and social saw 30% more sales on average than those concentrating on just one or two channels.</p> <h3>Black Friday traffic up 220% on a normal day</h3> <p>Confirming the success of this year’s event is Qubit, which has analysed more than 50m visits from 120 UK and US retailers to discover how consumers reacted.</p> <p>The results show a huge increase in both traffic and revenue.</p> <p>When comparing Black Friday to a normal Friday, it found traffic was up 220%. Similarly, traffic increased 155% on Cyber Monday when compared to a normal sales day.</p> <p>The same goes for revenue, which was up 240% and 380% on the Friday and Monday respectively.</p> <h3>Lego is the top-selling toy</h3> <p>Adobe’s results from Black Friday show that Lego is still a hot favourite this festive season, with Lego Creator Sets coming out as the top-selling toy.</p> <p>This was closely followed by Razor electric scooters, Nerf guns, DJI Phantom Drones and Barbie Dreamhouse. </p> <p>With items under $300 being 20% more likely to sell out, this gives us a good indication of the toys parents need to snap up if they still want to get them in time for Christmas.</p> <p>The five bestselling electronics from Black Friday were Apple iPads, Samsung 4k TV’s, Apple’s MacBook Air, LG Televisions and Microsoft Xbox.</p> <p><img src="https://assets.econsultancy.com/images/0008/1970/Lego.JPG" alt="" width="536" height="345"></p> <h3>Travel companies see greater interest than in 2015</h3> <p>Data from Sojern shows that consumers spent more on travel this year than last, specifically taking advantage of Cyber Monday.</p> <p>On the Monday, there were 32% more searches for flights from the US compared to the week before. </p> <p>Similarly, while 2015 saw an increase in bookings of 9%, this Cyber Monday resulted in a jump of 21%.</p> <p>Out of the most searched for destinations, Italy, Japan and Colombia were in the top 10, while Canada, Haiti and US Virgin Islands were among the most-booked.</p> <h3>Consumers embrace mobile shopping</h3> <p>According to PayPal, Black Friday demonstrated the enormous growth of mobile shopping and its popularity with consumers.</p> <p>On Black Friday, one third of all PayPal payments were made on mobile devices, as PayPal handled $15,507 in payments per second.</p> <p>Cyber Monday resulted in similar activity, with PayPal seeing over 50% year-on-year growth in global mobile payments.</p> <p>Based on the data, it is also expecting more than 40% year-on-year growth in total payments.</p> <p><img src="https://assets.econsultancy.com/images/0008/1972/mobile_shopping.jpg" alt="" width="700" height="370"></p> <h3>Brits more confident in shopping on mobile</h3> <p>While results show that mobile overtook desktop as the most preferred shopping channel overall, data from ChannelAdvisor suggests that Brits are more at ease than US shoppers when it comes to following through on mobile purchases.</p> <p>Throughout the five-day sales period, 75% of shopping searches in the US took place on mobile devices, however, mobile accounted for less than one in two purchases.</p> <p>Meanwhile, despite the percentage of UK shopping searches on mobile platforms being slightly lower, more than three in five sales conversions took place on mobile.</p> <h3>1.2m app installs on Black Friday</h3> <p>Continuing the mobile trend, it seems there was a significant increase in retailers targeting consumers via mobile apps this year.</p> <p>According to Urban Airship, retailers sent 56% more holiday notifications in 2016 than in 2015.</p> <p><img src="https://assets.econsultancy.com/images/0008/1966/App_notifications.png" alt="" width="624" height="469"></p> <p>The big difference this year was retailers embracing targeting, with 88% of notifications being highly targeted to shopper’s locations, preferences and behaviours. Only 12% of messages were broadcast to everyone.</p> <p>The data also shows daily app installs averaged more than 696,000 per day in November, up 24% from the average daily rate in October. </p> <p>On Black Friday itself, there was a peak of more than 1.2m app installs.</p> <h3>Gilmore Girls generates more excitement than Black Friday on social</h3> <p>The latest data from Spredfast shows that there was a huge increase in noise around Black Friday this year, with the event racking up 2.4m mentions on social media - over 1m more than in 2015.</p> <p>However, insight suggests this could be due to more interactions on social overall, rather than direct interest in the shopping event.</p> <p>Despite Black Friday trending in many of these countries last year, the hotly anticipated return of Gilmore Girls, and the hashtag #GilmoreGirlsRevival, came out on top in France, Italy, New Zealand, Ireland and Germany.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">When everyone is hyped for black friday but you've been waiting 9 yrs for this day and it's because the <a href="https://twitter.com/GilmoreGirls">@GilmoreGirls</a> revival is today!!</p> — frayadawe (@frayadawe44) <a href="https://twitter.com/frayadawe44/status/802047855955505152">November 25, 2016</a> </blockquote> <h3>Rise in footfall to UK high streets</h3> <p>Springboard has analysed where UK consumers did their shopping on Black Friday, measuring both online sales and footfall in high streets and retail parks.</p> <p>It found that, while online transactions rose on Saturday by 1.9%, they had dipped by 5.5% on Sunday compared to last year. Footfall also dipped by 0.6%.</p> <p>In terms of the entire weekend, online transactions rose by just 2.3%. </p> <p>Footfall declined by 0.5%, however the 1.4% uplift in footfall to high streets apparently demonstrates the increasing importance of leisure-based trips to retail destinations.</p> <p><img src="https://assets.econsultancy.com/images/0008/1967/Footfall.JPG" alt="" width="780" height="176"></p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/68432-black-friday-2016-how-are-uk-retailers-optimising-search-landing-pages/"><em>Black Friday 2016: How are UK retailers optimising search landing pages?</em></a></li> <li><a href="https://econsultancy.com/blog/68573-seven-examples-of-black-friday-email-marketing-from-retailers/"><em>Seven examples of Black Friday email marketing from retailers</em></a></li> <li><a href="https://econsultancy.com/blog/68577-the-whisky-exchange-increased-prices-on-black-friday-did-it-work/"><em>The Whisky Exchange increased prices on Black Friday: Did it work?</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/68326 2016-10-17T14:54:56+01:00 2016-10-17T14:54:56+01:00 Three brands succeeding in connecting online and offline experiences Ben Davis <h3>Topshop</h3> <p>Topshop's recent '<a href="https://econsultancy.com/blog/68305-runway-to-retail-how-fashion-brands-are-introducing-see-now-buy-now/">Retail to Runway</a>' initiative integrated London Fashion Week (LFW) with the retailer's stores and digital properties.</p> <p>For its young audience, Topshop is truly a multichannel experience (with <a href="https://econsultancy.com/blog/66389-what-does-the-ideal-click-and-collect-service-look-like/">click and collect</a>, free WiFi in store, a social-enabled ecommerce app with barcode scanner), but Retail to Runway took this a step further.</p> <p>The launch played out as follows: </p> <ul> <li>Consumers could watch the Topshop catwalk show livestreamed on Topshop.com and on playback thereafter.</li> <li>Pieces from the show were available to buy immediately in selected stores, online and a pop-up showspace.</li> <li>The Topshop website ran plenty of editorial about LFW and allowed consumers to sign up for updates via email.</li> <li>The Topshop app provided notifications to users of all the LFW news.</li> </ul> <p>The merging of online and offline continues apace at Topshop, with the identity of the website (with its quick turnover of content and integrated social) matching the feel of the Topshop stores.</p> <p>Topshop plans to debut a 100% shoppable range at the next Fashion Week in February 2017, as it makes fashion ever more accessible, both online and offline.</p> <p><img src="https://assets.econsultancy.com/images/0007/9496/Screen_Shot_2016-09-23_at_16.54.29.png" alt="topshop unique" width="615" height="304"></p> <h3>Hilton</h3> <p>Whilst <a href="https://econsultancy.com/blog/68375-airbnb-how-its-customer-experience-is-revolutionising-the-travel-industry/">Airbnb gets the plaudits in travel</a> for a unique UX including its peer review system, Hilton is fighting back.</p> <p>By adding functionality to the Hilton HHonors app, the hotelier is removing some of the more frustrating elements of using hotels.</p> <p>Users can choose a room in selected hotels and check in via the app, unlock rooms with their app's digital key, and book a cab via Uber.</p> <p>Customer service with a smile at the front desk can always be compromised in a busy period, but these app improvements help to empower customers to customise and control their own experiences, beyond the online booking journey.</p> <p><img src="https://assets.econsultancy.com/images/0007/9526/Screen_Shot_2016-09-23_at_17.33.24.png" alt="hilton app" width="615" height="622"> </p> <h3>Starbucks</h3> <p>It's easy to dismiss Starbucks as just another big brand example of great CX - don't they just have plenty of money to throw at digital technology?</p> <p>Such an attitude would do an immense disservice to a brand that has been at the forefront of online/offline experiences for a number of years.</p> <p>Starbucks was the first store to widely offer free Wi-Fi and is, of course, known for letting customers dwell (which has become the default for all coffee shops).</p> <p>The coffee giant nailed mobile payment &amp; loyalty early, with its app that uses a barcode system launching in 2009.</p> <p>A staggering 21% of US transactions take place via the app and in 2015 the brand launched <a href="https://econsultancy.com/blog/66997-starbucks-new-click-collect-app-is-it-any-good/">click-and-collect coffee</a> for those that don't want to wait in line.</p> <p><em><a href="http://www.bloomberg.com/news/articles/2016-03-30/starbucks-takes-its-pioneering-mobile-phone-app-to-grande-level">Chart via Bloomberg</a></em></p> <p><img src="https://assets.econsultancy.com/images/0007/9527/Screen_Shot_2016-09-23_at_18.31.18.png" alt="starbucks mobile sales at 21%" width="615" height="414"></p> <p>Starbucks' digital marketing reaches into stores, too. Just a few initiatives include: </p> <ul> <li>The brand has used location-based app notifications (seen below),</li> <li>Starbucks' famous music playlists are available exclusively to rewards members on Spotify, where users can suggest their own tracks for in-store.</li> <li>An active <a href="https://econsultancy.com/training/courses/topics/email-ecrm/">email marketing</a> and social media programme pushes seasonal specialities and offers to rewards members.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0007/0789/Location-Based-Mobile-Marketing-Example.jpg" alt="starbucks notification" width="350"></p> <p>Overall, Starbucks' investment in stores (<a href="https://econsultancy.com/blog/67085-starbucks-new-london-digital-concept-store-puts-focus-on-customer-experience/">including concept stores</a>) is just as impressive as its investment in its digital capabilities, making it a truly multichannel brand.</p> tag:www.econsultancy.com,2008:BlogPost/68366 2016-10-12T09:46:00+01:00 2016-10-12T09:46:00+01:00 Ecommerce checkouts: What payment options do users want? Nikki Gilliland <p>But what about payment preferences?</p> <p>I’ve recently been questioning whether people do actually care if a site has a one-click buy option.</p> <p>If the process is quick, transparent and easy - does it really matter?</p> <p>According to <a href="https://www.paypal.com/uk/webapps/mpp/stories/media-resources" target="_blank">new research from PayPal</a>, the answer appears to be yes.</p> <p>Here’s a closer look at the stats and the reasons why payment technology is still in demand during checkout.</p> <h3>Changing behaviour of consumers</h3> <p>In a study of 2,000 small businesses and more than 2,000 consumers, PayPal found that there was a stark contrast between retailers’ lack of innovation and the way consumers now browse and shop.</p> <p>Despite the rising popularity of digital wallets, contactless payments and smartphones, 44% of small businesses have reportedly never reviewed their payment methods.</p> <p>As a result, many could be missing out on sales.</p> <p>In fact, mobile shopping could be the biggest factor here, with this area growing at nearly four times the rate of overall online spending in the UK.</p> <p>What’s more, despite a fifth of consumers most frequently buying online using a smartphone, just 17% of small businesses are said to have mobile-optimised websites and just 4% have a mobile app.</p> <p>Last year, we wrote about <a href="https://econsultancy.com/blog/66997-starbucks-new-click-collect-app-is-it-any-good" target="_blank">Starbucks Order and Pay</a> – just one example of a brand using dedicated <a href="https://econsultancy.com/blog/68192-how-can-mobile-payment-actually-improve-customer-experience/" target="_blank">mobile payment</a> app to streamline customer service.</p> <p><img src="https://assets.econsultancy.com/images/0007/9828/Starbucks_Order_and_Pay.JPG" alt="" width="607" height="531"></p> <p>Despite PayPal’s research focusing on smaller businesses, Starbucks is still a good case for what mobile technology can enable.</p> <p>With its in-built wallet and GPS tracker, it makes ordering a coffee as easy as can be.</p> <p>Some might question whether buying a coffee was really that hard to begin with.</p> <p>And they would be right, yet it still goes to show how much value consumers today place on convenience.</p> <h3>Reasons behind <a href="https://econsultancy.com/blog/67120-12-ways-to-reduce-basket-abandonment-on-your-ecommerce-site/" target="_blank">abandoned checkouts</a> </h3> <p>While long-winded forms and surprise delivery charges also contribute, a lack of payment options could be the reason behind many abandoned baskets.</p> <p>According to PayPal’s study, 63% of consumers admit to abandoning an online purchase in the last three months due to being unable to pay the way they wanted.</p> <p>Again, this goes back to convenience.</p> <p>Being able to store your bank details or access a real-time payment method means faster and more spontaneous purchases – without the need to locate or enter in your debit or credit card details.</p> <p>Below are two examples of the payment section on ecommerce sites.</p> <p>Oasis' inclusion of PayPal means I am just a couple of clicks away from completing a purchase.</p> <p><img src="https://assets.econsultancy.com/images/0007/9829/Oasis_PayPal.JPG" alt="" width="750" height="422"></p> <p>While H&amp;M doesn't currently accept PayPal (though it is soon to introduce the feature), it does offer users the chance to save their card details for future purchases.</p> <p>Furthermore, it gives customers the option to pay via an invoice and the chance to defer payment for a month.</p> <p>These aren't necessarily convenient options for first-time customers, particularly on mobile where form filling is a pain, but could encourage repeat purchases from customers who have already setup an account.</p> <p><img src="https://assets.econsultancy.com/images/0007/9830/H_M_checkout.JPG" alt="" width="339" height="832"></p> <h3>Capitalising on new technology </h3> <p>Just as PayPal isn’t the only payment service provider, there are many other companies utilising new technology to offer consumers even more options.</p> <p>Zapp is one such company that has recently caught my eye.</p> <p>It is a mobile payment service like Apple Pay or Pingit, however, Zapp takes away the need for a digital wallet by allowing consumers to buy with their bank’s own mobile banking app.</p> <p>It will be interesting to see whether it takes off.</p> <p>While it does require banks and retailers to partake, the ability to collect greater amounts of data means that it is likely to appeal.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Lloyds, Halifax &amp; Bank of Scotland to launch Pay by Bank app mobile payments. They join Barclays, which is set to launch this Autumn.</p> — Zapp (@ZappPayments) <a href="https://twitter.com/ZappPayments/status/740830433441644544">June 9, 2016</a> </blockquote> <p>For consumers, the ability to view bank details (like account balance etc.) at the point of purchase could be an added incentive.</p> <p>Then again, it could put off those who prefer <em>not</em> to see money leaving their account.</p> <h3>In conclusion…</h3> <p>While there are many factors that can make or break a good UX, this latest research suggests that retailers should not underestimate or ignore payment preferences.</p> <p>As technology advances, so will consumer expectations, meaning that retailers of all sizes should take heed.</p> tag:www.econsultancy.com,2008:BlogPost/67982 2016-06-22T11:47:00+01:00 2016-06-22T11:47:00+01:00 Apple Pay developments herald the era of contextual commerce Prosper Williams <p>The first wave involved migrating offline experiences to a website, while the second involved optimizing website experiences for mobile (Apps).</p> <p>And with recent announcements by Google, Facebook (Messenger) and now Apple, it is clear the third wave will be about optimizing apps for a few core pillar platforms that integrate other products and services into a tightly woven experience. </p> <p><iframe src="https://www.youtube.com/embed/A3r72C4PM1s?wmode=transparent" width="420" height="315"></iframe></p> <p>This is a significant and disruptive transition, not only for technology incumbents, but for traditional businesses and consumers too.</p> <p>Just like we have built policies, processes and competencies around the web and then mobile, organizations will need to do the same for platforms, but with one caveat.</p> <p>These experiences will be delivered in an environment curated and controlled by a third party, and thought will need to be given not only to how we roll out products and services in the future, but how we maintain our relationship with the end consumer, when essentially we are delivering an experience through an intermediary.</p> <p>Whilst the above is game-changing in nature (particular over the medium to long term) as someone employed in <a href="https://econsultancy.com/reports/digital-transformation-in-the-financial-services-sector-2016/">financial services</a>, I believe Apple’s decision to extend Apple Pay to the web browser also has the potential to be pretty significant and in quicker time, too. </p> <h3>Enhancements in experience design </h3> <p>Essentially Apple Pay on the web will give ecommerce players and all digital incumbents a new lens through which to view experience design. </p> <p>Since the first ecommerce site was launched back in 1992, the generic ecommerce interface has hardly changed. We still employ shopping carts, catalogues, panels and web pages.</p> <p>Yet all of our digital experiences outside commerce have changed.</p> <p>From Tinder, to Uber and Airbnb, customer-obsessed startups are providing fast, simple, personal and enchanting user experiences which are driving growth. </p> <p>And with the introduction of Apple Pay for the web, traditional digital incumbents can now deliver streamlined, frictionless user experiences which do the same.</p> <h3>The rise of contextual commerce </h3> <p>By shortening and in some cases eliminating the purchase stage of the conversion funnel, Apple is not just removing the disconnect in the experience customers have from cart to checkout.</p> <p>The company is unlocking opportunities for merchants to seamlessly implement “one click” payment options for the web/mobile web, image-heavy social media sites like Instagram, Pinterest, Snapchat, and brick and mortar locations.</p> <p><a href="http://www.apple.com/uk/apple-pay/"><img src="https://assets.econsultancy.com/images/0007/6342/Apple_Pay.png" alt="" width="800" height="508"></a></p> <p>This change (in parallel with <a href="https://econsultancy.com/blog/65307-five-retailers-using-nfc-and-rfid-to-enhance-shopping-but-do-they-work/">Near Field Communications technology</a> and the adoption of APIs) has the potential to provide a channel agnostic solution that completely condenses what can be an unnecessarily extended customer journey.</p> <p>Giving brands the ability to provide integrated omni-channel experiences in real-time, as consumers discover, evaluate and purchase our products. </p> <h4>Example: Integrated real-time engagements</h4> <p>Imagine being at work, and a colleague has just walked in with the Apple Watch, which you have been thinking about purchasing for some time.</p> <p>Instead of asking her specifics about the device, you tap the watch with your smartphone (both your phone and the watch have NFC-enabled capabilities), and immediately all the information related to the watch, such as price, reviews, similar products, as well as the ability for you to purchase the watch there and then and have it shipped to your home, are communicated to your mobile device. </p> <p><img src="https://assets.econsultancy.com/images/0007/6343/apple_pay_nfc.jpg" alt="" width="848" height="565"></p> <p>As pointed out by thought-leaders such as Noz Urbina, the introduction of Apple Pay for the web will enable scenarios like the above.</p> <p>Encouraging brands not just to think in terms of online and offline, but instead to focus on integrated real-time engagements, as we deliver user experiences, which allow customers to consider, evaluate and purchase our products simultaneously, at any point along the customer journey.</p> <p>And all without the hassles that came along with earlier forms of payment, such as scrawling a signature on a piece of paper, or spending minutes on end registering to a website. </p> <h3>Loyalty </h3> <p>Finally, beyond being just a payment platform, Apple Pay will provide significant value in regards to loyalty, as brands use it as a mechanism for extending <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">customer lifetime value</a>.</p> <p>How many of us have online interactions with brands that bear no connection with in-flight contextual data about us or our ongoing relationships with those brands.</p> <p>Tying this data in with the actual marketing and sales platform is a golden opportunity, and this is what the introduction of Apple Pay for the web facilitates. </p> <p>Ultimately this is an experience that could/should be managed by our financial services providers, but with no legacy systems to build upon I believe Apple, Google, or maybe even Samsung will be most aptly placed to facilitate this relationship. </p> <h3>Conclusion</h3> <p>Payment platforms such as Apple Pay are ushering in a new era of digital experience design.</p> <p>The emphasis will no longer be on optimising each stage of the funnel and driving customers towards the shopping cart, but on using technology to create magical frictionless experiences, taking into account what customers are going to feel and what they would want to share. </p> <p>By simplifying and stripping the friction out of the checkout process, not only does Apple Pay increase the likelihood of conversion, the platform changes the mind-set of digital product owners.</p> <p>This will free us up to really think through what the customer is going to have to experience, in order to unlock a growth partnership with our brands. </p> tag:www.econsultancy.com,2008:BlogPost/67768 2016-04-22T09:41:33+01:00 2016-04-22T09:41:33+01:00 How to gear towards mobile commerce success Georges Berzgal <p>While the US tech giant had already launched Apple Pay for in-app purchases on iOS mobile apps and physical stores last year, this move will make mobile shopping even easier.</p> <p>It enables consumers who shop online using an iPhone or iPad Safari browser to make a purchase at the push of a button with Apple Pay and TouchID.</p> <p>It points to a world where consumers can shop from wherever they are without the frustration of filling out fiddly forms on a phone or having to wait for lengthy security checks processed over slow network connections.</p> <p>Ovum predicts that <a href="http://www.shopsafe.co.uk/news/significant-mcommerce-growth-predicted/11552">2bn m-commerce transactions will take place globally</a> in 2019, 452m more than in 2014.</p> <p><img src="https://assets.econsultancy.com/images/0007/4219/mobile_commerce.jpg" alt="" width="848" height="566"></p> <p>Closer to home, a major tipping point was recently reached.</p> <p>For the first time ever, UK online retail sales made through smartphones and tablets <a href="http://internetretailing.net/2016/03/tipping-point-more-than-half-of-online-sales-made-on-mobile-says-imrg/">exceeded those made over desktop and laptops in Q4 2015</a>, according to IMRG.</p> <p>Figures like this mean that retailers cannot afford to merely ‘experiment’ in mobile or ignore it entirely.</p> <p>And we must be aware that consumers expect us to cater to whatever device they’re using or even the accessories they’re wearing while on the move.</p> <p>In addition, when referring to mobile, we can no longer limit the conversation to phones or tablets.</p> <p>We have to include smartwatches and even the latest car models, featuring screens with access to the internet (e.g. <a href="http://www.apple.com/uk/ios/carplay/">Apple CarPlay</a> or <a href="https://www.android.com/auto/">Android Auto</a>).</p> <p><iframe src="https://www.youtube.com/embed/Ht8yzpIV9M0?wmode=transparent" width="615" height="346"></iframe></p> <p>So what does being mobile-ready entail and require of a retailer? Commerce marketers might want to consider the following:</p> <h3>1. Be mobile responsive</h3> <p>It wasn’t so long ago that all web content was designed with a laptop screen in mind.</p> <p>Today, one of the biggest mistakes a brand can make is not being mobile responsive.</p> <p>Many retailers are now catering to mobile, so if your website and emails aren’t mobile-ready and easy to navigate, customers aren’t going to persevere and will go to a competitor.</p> <p>Research found that if your email doesn’t look good on a mobile device, <a href="https://litmus.com/blog/the-how-to-guide-to-responsive-email-design-infographic">80% of customers will simply delete it and 30% will actually unsubscribe</a> from future correspondence with you.</p> <p>By optimising the look of mobile websites and emails, you will enhance the overall user experience, drive more click-throughs, improve conversion rates, and reduce unsubscribes and spam complaints.</p> <h3>2. Be inclusive</h3> <p>With such a diverse range of mobile devices now available, it’s important to cater to every consumer, whether they’re using the most basic feature phone, smartphone or tablet.</p> <p>Retailers should recognise these preferences and run a multi-part campaign, which sends emails in a text and an HTML version.</p> <p>Many brands also drive substantial value from transaction-based services over SMS, or push notifications in apps.</p> <p>For example, a customer receives an order confirmation via email, followed by an SMS with the expected arrival time or dispatch information.</p> <p>Some brands like to go one step further, using both SMS and email simultaneously to ensure the optimal <a href="https://econsultancy.com/reports/customer-experience-statistics/">customer experience</a>, no matter which device the consumer is using.</p> <h3>3. Adopt a ‘mobile first’ approach to the customer experience &amp; integrate it with the wider business</h3> <p>It’s crucial that mobile is connected to the consumer’s full experience with a retailer.</p> <p>For example, if a consumer responds to an in-store promotion and sends a text in order to receive a discount, the brand needs to acknowledge this and personalise the communication that follows.</p> <p>Initially, this means referencing the shop that the text was sent from in future emails.</p> <p>As more data is collected about the individual, the communications should become more targeted, reflecting device usage, personal preferences and shopping behaviour. </p> <p>Linkages between device usage (mobile, laptop, desktop) should be seamless for the customer. Connect online and offline activities and merchandising.</p> <p>For example, ensure that your high-street stores are aware of any promotions you launch for mobile users.</p> <p>If your stores are unaware of a current campaign and refuse to accept a promotion code, it will result in a very negative experience for the customer.</p> <p>Retailers that are geared up for mobile customers are the ones that are best placed to secure sales.</p> <p>If you are going to invest in mobile, don’t do it half-heartedly.</p> <p>Be mindful that consumers are still using a range of devices and channels to make purchases and continue to cater to the shopping preferences of all customers.</p> <p>Interestingly, we have just polled 2,000 UK consumers about their multi-device shopping habits and found some exciting results which I will share in my next blog post. So stay tuned!</p> tag:www.econsultancy.com,2008:BlogPost/67730 2016-04-12T09:52:00+01:00 2016-04-12T09:52:00+01:00 Fintech startup Mondo provides slick, impressive UX: Review Martin Jordan <p>Just 136 days after its initial alpha launch, the public beta for the <a href="https://getmondo.co.uk/">Mondo banking app</a> launched on 17 March.</p> <p>It launched with an iOS-only app – I’ve been informed the Android version is on its way.</p> <p>Having registered for the app I was immediately put in a queue to wait for my card.</p> <p>Mondo has cleverly incentivised this process by giving each applicant a unique referral link. Every person that subsequently signed up to Mondo off the back of my link enabled me to jump up the queue a few places.</p> <p>My 170 Equator colleagues did me proud and thanks to them I went from position 23,000 to one in under half an hour!</p> <p>Once I reached the top it took 12 hours for the app to activate itself and that’s when I was allowed to add funds.</p> <p>However, rather than using scanning technology for ID, such as passports, driver’s licence , etc. as I thought it might, the app took my details in a traditional fashion. The flash of innovation came in the final stage of setup. </p> <p>In order to open a Mondo account, I would have to transfer a minimum of £100.</p> <p>Though I could have done the transfer manually using my Santander app, instead Apple Pay enabled a seamless bank transfer using only my fingerprint.</p> <p>Well, 10 seconds later, and I had opened a Mondo account.</p> <p><img src="https://assets.econsultancy.com/images/0007/3856/mondo_1.jpg" alt="" width="250" height="444">  <img src="https://assets.econsultancy.com/images/0007/3857/mondo_2.jpg" alt="" width="250" height="444">  </p> <p>After 48-hours, the screen changed to let me register the fact that my card had arrived...</p> <p><img src="https://assets.econsultancy.com/images/0007/3858/mondo_3.jpg" alt="" width="250" height="445"></p> <p>I liked the thick blue envelope and the orangey colour of the card; the sleeve reminded me to protect my number if I did decide to share my adventures in Future Banking.</p> <p>Which of course I did. (#geek)</p> <p><img src="https://assets.econsultancy.com/images/0007/3859/mondo_4.jpg" alt="" width="299" height="400"></p> <p>And I was in! The simple transaction screen details current balance, the day’s spend and recent transactions.</p> <p>I have to give it to Mondo. Its app is clever, it’s lean, there’s no messing about, it’s fully functional and needs no further authentication layer to get in.</p> <p>Once I open the app I can see all my transactions without tapping in another password.</p> <p><img src="https://assets.econsultancy.com/images/0007/3860/mondo_5.jpg" alt="" width="250" height="445"></p> <p>When I buy something with my new Mondo card it’s like any other normal transaction, though at this moment in time it makes use of a Prepay Mastercard debit card.</p> <p>This means that it does not come with a sort code or account code on the card, but it does have a Pin (which was texted to me) and contactless.</p> <p>I was most impressed with my purchase history with Mondo – on one occasion when making an online purchase, the Mondo app registered five seconds faster than the confirmation from the online retailer’s site!</p> <p>And every other transaction has appeared on my phone screen within two to three seconds. Speedy or what?</p> <p>Also, if Mondo recognises a store it will brand the icon next to the payment, and if it can’t it will categorise the item (e.g. ‘Eating Out’ or  ‘Groceries’).</p> <p>It also lets me add notes and photos to purchases, which give me a fuller picture of my spending activities.</p> <p><img src="https://assets.econsultancy.com/images/0007/3861/mondo_6.png" alt="" width="225" height="400"></p> <p>What’s more, I can categorise expenditure. For example, if I classify items as expenses, Mondo can collate these making it easy for me to hand into my boss.</p> <p>Dig a little deeper and I can see all purchases made over a certain amount, by ‘Merchant’ or by ‘Category’.</p> <p>And there’s even a handy graph that lets me track spend and income habits as an easy line graph.</p> <p><img src="https://assets.econsultancy.com/images/0007/3862/mondo_7.jpg" alt="" width="250" height="444">  <img src="https://assets.econsultancy.com/images/0007/3863/mondo_8.jpg" alt="" width="250" height="444"></p> <h3>Other bits…</h3> <p>Like with other banking apps, you can now send money by text. Nothing too novel there but this bit is all secured by Touch ID.</p> <p>You can chat to customer service staff at any time through a conversation window, sending images if necessary. They’re pretty fast at getting back too.</p> <p>They’ll respond through the chat window and through your email.</p> <h3>In conclusion...</h3> <p>Ok, so it’s not a full banking app yet but the platform shows incredible promise.</p> <p>Mondo has thought long and hard about the user experience, maximising the phone’s power where it can, cutting out paper almost completely (you still need the card) and making the interface incredibly intuitive.</p> <p>There are still some simple things Mondo could have done to make it even slicker but it may be working on this or may be stymied by financial regulation.</p> <p>I hope that, in time, it becomes a learning app – learning not just from your own behaviour, but from all users.</p> <p>I enjoy the wit and humour injected into the app and did not feel that it was inappropriate for a serious banking app.</p> <p>In terms of performance, the app is very fast, never stalls and purchases come through incredibly quickly.</p> <p>I think there’s a bright future here. The big banks need to watch this one intently!</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67202-what-s-the-future-for-big-banks-in-a-fintech-world/"><em>What's the future for big banks in a FinTech world?</em></a></li> <li><a href="https://econsultancy.com/blog/66246-are-banking-websites-in-need-of-an-update/"><em>Are banking websites in need of an update?</em></a></li> <li><a href="https://econsultancy.com/reports/digital-transformation-in-the-financial-services-sector/"><em>Digital Transformation in the Financial Services Sector Report</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/66989 2015-10-01T09:38:00+01:00 2015-10-01T09:38:00+01:00 Twitter's 'Buy Now' button: will it work? Ben Davis <h3>China presents a precedent...</h3> <p style="font-weight: normal;">Social proof and user generated content is massive in China. There are a rumoured 200m bank accounts linked up with <a href="https://econsultancy.com/blog/66774-social-media-marketing-in-china-which-platforms-should-you-invest-in/">WeChat</a>.</p> <p style="font-weight: normal;">Social media plays a huge part in validating purchases through peer review and if social networks globally can push into this lifestyle territory, Twitter stands a good chance of succeeding with a commerce function.</p> <h3>But relevance of tweets may be the biggest hurdle for now...</h3> <p>The Twitter commerce team hopes a 'Buy' button supported by an increasing number of ecommerce partners will be part of the advent of distributed mobile commerce. That means we'll eventually be able to buy wherever we are.</p> <p>As issues of connectivity, security and experience are ironed out, mobile commerce is increasing.</p> <p>Social commerce specifically was responsible for sales of $3.3bn amongst the Internet Retailing Social 500 companies in 2014 (according to IR).</p> <p>So, surely Twitter's 'one click' buy button (once your details are saved) makes sense and has the same ease of use that Apple Pay is banking on?</p> <p>Well, the question might not be whether users are ready for mobile commerce, but whether Twitter can target them. Techcrunch reports that in Twitter's Q2 earnings call, interim CEO Jack Dorsey was focused on relevance (with everything else following).</p> <blockquote> <p>On the commerce side it is still super early for this product but a lot of our focus has been around making tweets more relevant and delivering more relevant tweets faster to people and as we do that everything within the action, within the tweet action benefits, including something like commerce...</p> </blockquote> <p>Twitter has claimed a majority of its users follow a brand (in late 2012 it gave the figure as 88%) so Twitter commerce may be at its best when targeting existing customers.</p> <p>Combining the buy button with Twitter's <a href="https://econsultancy.com/blog/65566-how-to-target-your-competitor-s-followers-with-twitter-custom-audiences/">Tailored Audiences</a> feature will no doubt allow retailers to present specific impulse buys and achieve some success.</p> <p>However, the fundamental experience of Twitter is one that may not be conducive to attracting new retail customers.</p> <p>There are certainly no figures attributed to commerce in Twitter's revenue so far (only advertising). It's also worth remembering that Twitter users <em>only</em> represent around 15% of UK and US consumers and this pales in comparison to Facebook.</p> <p>Unless Twitter generates intent (arguably the search function could does this in part) 'buy now' promoted posts represent a stark interruption of a user's feed.</p> <p><img src="https://assets.econsultancy.com/images/resized/0006/7554/twitter_buy_now-blog-flyer.jpg" alt="twitter buy now" width="470" height="267"></p> <h3>But 'Products and Places' hint at the evolution of Twitter into a multistreamed platform...</h3> <p>From June 2015, Twitter has been addressing this problem of allowing users to actively find richer information, on products and places.</p> <p>This trial allows a separate 'product page' when a tweet is clicked showing tweets relevant to you and an associated product you can buy. See below for Twitter's example of The Martian by Andy Weir.</p> <p>This ability to provide richer information within the app will be important to engaging the user and persuading them to buy.</p> <p>In effect, if Twitter can create a separate commerce stream, the user may be able to switch mindsets in the app and view it as a retail rabbit hole, as well as their standard stream of friends and commentators.</p> <p><img src="https://assets.econsultancy.com/images/0006/7555/The_Martian_card_and_page.png" alt="the martian product page in twitter" width="700" height="909"></p> <h3>And purchasing on mobile still makes sense for time-sensitive purchases...</h3> <p>The nature of mobile shopping means we often have the instinct to 'bookmark for later', so we can buy when we have more time and a bigger device.</p> <p>But, as the buying process improves on mobile, it makes sense that time-limited offers (50% off today) and limited edition products (new clothing ranges, gig tickets etc) will be attractive on Twitter.</p> <p>If retailers hone their tactics for social media, offering Twitter-only flash sales, for example, it's more likely they'll attract customers through this medium. </p> tag:www.econsultancy.com,2008:BlogPost/66778 2015-08-03T10:41:23+01:00 2015-08-03T10:41:23+01:00 Why Apple Pay offers brands more than just another payment channel Georges Berzgal <p>In practical terms, this means users can pay by simply holding their device near a payment terminal in-store and authenticating the purchase with their Touch ID.</p> <p>Even purchasing on a mobile device is made simpler by enabling consumers to pay and authenticate with their fingerprint or passcode without having to enter their card number or leave the app.</p> <p>Adding this new functionality to the device that most consumers have on their person at all times is incredibly convenient. But what does Apple Pay offer to brands and consumers beyond just another way to pay?</p> <h3><strong>E-receipts</strong></h3> <p>This is more than just a standard proof of purchase. Customers who adopt new digital payment systems are much more likely to embrace a digital proof of purchase too, offering businesses an opportunity to continue to engage with them.</p> <p>For example, within an e-receipt brands can safely use up to 20% of the available space on an e-receipt for promotional content - whether that’s inviting consumers to interact on social channels, offering them promotions or other items they might like is up to the brand.</p> <p><img src="https://assets.econsultancy.com/images/0006/5787/Screen_Shot_2015-08-03_at_10.39.15.png" alt="" width="979" height="550"></p> <h3><strong>New era for loyalty</strong></h3> <p>As well as allowing people to pay with their mobile phone, Apple Pay is part of the new generation of m-payments services that will incorporate loyalty programmes.</p> <p>With Passbook being renamed as simply ‘Wallet’ in the latest iOS 9 update, users can now link their bank cards and loyalty programmes on their smartphone.</p> <p>This not only allows consumers to ditch some of the cards they currently carry around, but also helps retailers to better understand the consumer to increase customer retention and brand advocacy - ultimately influencing <a href="https://econsultancy.com/reports/customer-lifetime-value/">customer lifetime value</a>.</p> <h3>Improving in-app purchase experience</h3> <p>Apple has simplified in-app purchasing by allowing consumers to make a purchase with a fingerprint, and reports suggest that iOS developers have already seen <a href="http://www.cnet.com/news/apple-adds-retail-credit-and-loyalty-cards-renames-passbook-to-wallet/">checkout rates more than double for applications that include an Apple Pay option</a>.</p> <p>For brands, this is an opportunity to streamline the purchase experience for the increasing number of people that shop on their mobile.</p> <p><img src="https://assets.econsultancy.com/images/0006/5786/Screen_Shot_2015-08-03_at_10.38.52.png" alt="" width="1176" height="694"></p> <h3>Mobile social commerce</h3> <p>As well as streamlining in-app purchases, Apple is reportedly working with Pinterest on what has been described as <a href="https://econsultancy.com/blog/66529-pinterest-enables-ecommerce-with-buyable-pins/">‘Buyable Pins’</a>.</p> <p>Will this be the way to monetise the image-based social network? We’ll have to see, but it’s interesting that Apple Pay will be a part of social commerce.</p> <p>For marketers that use Pinterest already, this could be an interesting option to create ROI from their social media activity. </p> <p>Much has been about the benefits of Apple Pay. Those brands who look beyond m-payments as a simple means of facilitating payments can seize the opportunity to effectively connect their online and offline marketing in order to enhance <a href="https://econsultancy.com/training/courses/creating-superior-customer-experiences">customer experience</a> and drive revenue.</p> tag:www.econsultancy.com,2008:BlogPost/66210 2015-03-17T09:57:00+00:00 2015-03-17T09:57:00+00:00 Q&A: Droplet on the mobile payments market David Moth <p><a href="https://dropletpay.com/">Droplet</a> was launched in Birmingham two years ago and is already being used in 600 businesses in four cities. The app has 18,000 registered users.</p> <p>The business has already raised £850,000, which has been spent on product development and market testing.</p> <p>This new funding round is being <a href="https://www.crowdcube.com/investment/droplet-17239">hosted on Crowdcube</a> and aims to raise £500,000, which will help Droplet expand into 10 new UK cities.</p> <p>Here at Econsultancy we’ve been guilty of buying into the hype around mobile payments, even though consumer interest and adoption was still lagging.</p> <p>For new technology to take off it has to solve a problem, and as yet there’s no pressing reason for people to give up cash and bankcards in favour of a mobile payment option.</p> <p>Droplet’s founders think they’ve overcome this barrier by bundling loyalty services into the app.</p> <p><em><strong>Droplet founders Will Grant and Steffan Aquarone</strong></em></p> <p><em><strong><img src="https://assets.econsultancy.com/images/0006/1060/droplet_founders.jpg" alt="" width="1654" height="1099"></strong></em></p> <p>The payment system itself is free, instead Droplet charges merchants for using the loyalty features.</p> <p>But though the business is ready, are consumers really ready to fully embrace mobile payments?</p> <p>To find out more about the marketplace and this latest funding round, I spoke to Droplet co-founder Steffan Aquarone...</p> <h3>Do you think mobile payments might finally be catching on with consumers?</h3> <p>When sectors tip there’s usually a combination of timely factors.</p> <p>We’ve been through the initial hype cycle and passed the <a href="http://en.wikipedia.org/wiki/Hype_cycle">trough of disillusionment</a>, and we’ve also seen the failure of other tech providers in this space (e.g. Weve, O2 Wallet).</p> <p>However the continued adoption of mobile technologies is an obvious benefit for us, as is the launch of Apple Pay.</p> <p>The latter has been hugely beneficial as it normalises the idea of having money on your mobile and has reassured people around the potential security issues.</p> <p>Finally, for adoption to take off someone has to be the first to crack the go-to-market strategy.</p> <p>We think we’ve done that now, as have Apple in the most basic sense. It’s now down to consumers to feed back their views and vote with their feet.</p> <h3>Why is now the right time for you to go for more funding and expansion into new cities?</h3> <p>We now have a blueprint where we can see how much it will cost to go into new cities, and that can be repeated across the country.</p> <p>We also know that our customer acquisition costs are lower than the amount we make from our merchants, so it’s now a scalable business model.</p> <p><img src="https://assets.econsultancy.com/images/0006/1059/droplet_merchant.png" alt="" width="1270" height="717"></p> <p>In addition to that, we were always of the opinion that the tech had to be about more than just payments.</p> <p>There’s no real problem to be solved just by moving payments to mobile, so it’s by building additional services around it that we’ve found something unique.</p> <p>In product terms we’ve done something that nobody else has done. Droplet is still free to use, and it combines payment and loyalty in one step.</p> <h3>Why do you think you’ll succeed where the big banks have failed?</h3> <p>The addition of a loyalty scheme was the real breakthrough as it ties into existing behaviour patterns, so it’s easier to get people to adopt the app.</p> <p>You don’t even have to pay with Droplet to collect points with it. </p> <p>The problem with a lot of existing loyalty schemes among SMEs is that you don’t really collect any customer data, you’re just giving stuff away to people who would buy from you anyway.</p> <p>The way the app works is that when users go into their favourite coffee shop they are automatically recognised, so their face and avatar appear on the point-of-sale screen.</p> <p>After placing an order Droplet makes the payment, so the user just gets a push notification to say they’ve paid and have also collected their loyalty stamps. </p> <p>The irony is that in the context of the mobile payment market, nobody really cares about the payment.</p> <p>And we’ve proved that because people still loved the app even when we removed payment entirely.</p> <h3>How do you plan to increase adoption as you expand into new cities?</h3> <p>In the past we found that if you put money into social ads you could drive a lot of downloads, and if you had a good product you could get a lot of traction.</p> <p>That has now changed as people seem to be more precious about the space on their smartphones, so they’re less inclined to make a speculative download or try something out.</p> <p>This has made it harder for app startups to drive adoption through digital channels.</p> <p>Instead where we’ve had success is through our merchants.</p> <p><img src="https://assets.econsultancy.com/images/0006/1062/droplet_merchant_1.png" alt="" width="1269" height="708"></p> <p>We did a lot of data analysis among our user base - which, as a startup, I recommend doing as early as possible - and found that people tended to use the app as part of a daily routine.</p> <p>We’ve educated our merchants how to pitch Droplet to their regular customers. It’s a fairly easy sale as the use case is immediate and obvious, and there’s an incentive for the retailer as it removes costs for them.</p> <h3>But how will you get the merchants on board in the first place?</h3> <p>One of the reasons we’re doing the funding round now is that we’ve learned some important lessons about going to market.</p> <p>We now have a template that can be applied to new cities.</p> <p>Basically, having sales teams stomping around pitching for new business doesn’t work. Instead we recruited people who were connected to the local communities who could act as ambassadors.</p> <p>They were able to sign up hundreds of businesses largely through word-of-mouth marketing.</p> <p>Now our whole go-to-market strategy is based on ‘place’ and having that local knowledge.</p> <h3>And how is the funding round going? Why did you choose Crowdcube over the numerous other crowdfunding sites?</h3> <p>Crowdcube basically works like Kickstarter but with shares. We wanted our early adopters to be able to buy a part of Droplet, and more than 100 already have.</p> <p>If you look at the site you’ll see our business plan, a description about where we’re going, and also a request to help us grow.</p> <p><img src="https://assets.econsultancy.com/images/0006/1061/Screen_Shot_2015-03-17_at_08.00.00.png" alt="" width="1988" height="946"></p> <p>So as well as investing money, people have been helping us to open new doors and even recruit new ambassadors.</p> <p>Our new ambassador in Lancaster came about thanks to someone who found us through Crowdcube.</p> <p>The funding round has been a mini digital marketing strategy in its own right, as you have to do a lot of work to get people to come to the page and either invest or share it with their networks.</p> <p>So far we’ve had more than 15,000 views and 1,000 share in six days, and there’s still around 40 days left to go.</p>