Sage Pay Webinar - Are you ready for the mobile revolution?

WebinarAre you readyfor the mobile revolution

?

Are you ready for the mobile revolution? 2

Are you ready for the mobile revolution?

Agenda

17 July 2014

11.00 – Introductions

11.05 – Mobile Payments(Sage Pay)• What is a mobile payment?• Trends in mobile payments• The importance of mobile payments

11.15 – Are you ready for the mobile revolution? MoPowered• Mobile Channel Overview• Challenge 1 – Monetising the Mobile Channel• Challenge 2 – Understanding the Options: Build vs Buy?

11.35 – Q & A



Introductions

17 July 2014



Your presenters

17 July 2014

Donna Dobson, Senior Manager – Sage Pay

Ali Wood, Channel Manager– MoPowered

Jim Rudall, Sales & Marketing Director– MoPowered


What is a mobile payment?Mobile optimisation

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What is a mobile payment?Near field communication

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What is a mobile payment?Mobile apps

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What is a mobile payment?Mobile wallets

17 July 2014


Mobile paymentsThe current trends

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17 July 2014Are you ready for the mobile revolution? 10

62%

£7.92 bn

100%

£3.10 bn



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The Challenges of Going MobileWhat to consider when deciding on your strategy

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Ali Wood and Jim Rudall MoPowered PLC


Areas of Focus

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• Mobile Channel Overview

• Key Challenge 1 – Monetising the Mobile Channel

• Key Challenge 2 – Understanding the options: Build vs. Buy?


Mobile is the New Channel

17 July 2014

23%Mobile commerce accounted for 23% of UK e-retail sales

in Q2, 2013

52%Said that a bad mobile

experience made them less likely to engage with a

company again

M-commerceis set to

quadruple

By 2017

40%have turned to a competitor’s site

after a bad mobile experience.

Smartphone users are spending twice

as much time using mobile

internet as they are for making

calls

Google

Google

O2

Forrester

IMRG

“We haven’t actively pushed customers onto mobile, they’ve adopted

these devices willingly for their convenience and

ease of use.” Shop Direct


Global Internet Use

17 July 2014

According to this data global mobile internet use is expected to overtake traditional desktop and laptop internet use this year.

"Mobile use is growing faster than all of Google's internal predictions."

- Eric Schmidt, Google


The MoPowered PLC story

17 July 2014

2007 2009 2012 2014+

120 customers across mobile

web/apps/tabletDeveloped the MoPowered

m-commerce PlatformAdditional in-App

commerce functionalityPioneered Mobile

Banking

“MoBank”


The Essence of the Mobile Challenge

17 July 2014

A Web site designed for the small screens of mobile phones. When a request from a mobile browser is made, the user is redirected to the mobile version for a significantly better user experience.


The Next Journey

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BeforeDifficult to

view, browse, checkout

AfterEasy to shop

and purchase


Mobile paymentsLeading Brands are Still Learning

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So much to do so little time…

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Key Objectives:

• Increase traffic• Increase conversion

rate • Reduce abandonment• Create a great user

experience


How are your customers engaging with you?

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Key Challenge 1 – To Monetise your Mobile Channel

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• Radically improve the user experience

• Less is more

• Optimised for touch gesture

• Clear call to action

• Faster speed and performance

• Convert browsers into buyers

• Checkout optimisation

• Tokenisation

• E Wallets


Merchants spend ££ on branding & acquiring traffic…

17 July 2014

PaidDisplayPaid SearchAffiliateSponsorship

EarnedSEOWOMBuzzViral

OwnedWebsitesMobileBlogsSocial Accounts

ROI

Traffic acquisition spend

“For every £80 spent on acquisition only £1 is spent on conversion.”

Forrester Research

Poor mobile UX and UI equals low:

• Engagement• Conversion rates• Average order value• Retention3%


Mobile paymentsMobile Channel Abandonment

17 July 2014

Mobile shopping basket attrition rates are around 97% - Google

By not having a mobile site retailers are losing traffic they have already paid for

Focus on page load performance

17 July 2014Are you ready for the mobile revolution? 26

Every 100ms delay costs 1% of sales (Amazon)

“There’s a direct correlation between page load speed and conversion”Andy Harding (Executive Director, Multi Channel @ House of Fraser)


Mobile paymentsKey Challenge 2 – What are the choices - Build vs. Buy

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The on going debate


Mobile paymentsWhat works?

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Mobile users want different things – information or action

Dedicated mCommerce sites load quickly and convert better

Responsive design allow users to access more content blog and other information but are clunky.

For information / content sites responsive design is a good approach


What are your options?

17 July 2014

Responsive Design Mobile Platform

• Built & Supported by 3rd

Party

• SaaS minimises investment

• Mobile specific design and

development expertise

• Built For Purpose mobile

UI/UX

• Radical Improvements in

Performance

• Uplift in all Ecommerce KPIs

Seen as best fit for Ecommerce –

majority of major retailers

continue to invest in mobile

platforms

• Delivered In House/By

Partner

• Cheap(er)

• Reflects lack of mobile

expertise and development

experience

• Sub-Optimal UI and

Navigation

• Poor Performance

(speed/UX)

• Drop in Customer

Engagement

• High cost of ongoing

support

Seen as applicable to “content”

sites – not fit for ecommerce

purposes


Platform Improves Performance on Mobile

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17 July 2014

94 calls

1.3 MB data



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“A 1-second delay in page load time equals 11% fewer page views, a 16% decrease in customer satisfaction, and 7% loss in conversions. (In dollar terms, this means that if your site

typically earns £10,000 a day, this year you could lose £250K in sales)”

• 74% of users will abandon after waiting five seconds for a mobile site to load.

• 57% have experienced problems when accessing a mobile site.

• 46% would not return to a poor performing site


Significant Increase in Customer Engagement

17 July 2014

• Average Order Value

• Revenue Per Session

• Pages Per Session

• Bounce Rates

• Ave Time On Page

• Transaction Volumes

+35%

+15%

+19%

-15%

+18%

+16%


Examine the ROI

17 July 2014

Q4 Unique Visitors 115,287

Mobile traffic 9% 10,376 Other traffic 81% 104,911

Mobile conversion 0.25% Desktop conversion 1.5%

Average desktop basket £232.81Average mobile basket £196.82

Mobile sales (current) 26

MoPowered conversion rate 0.75%

Current sales revenue £5,105

MoPowered generated revenue £15,316

Incremental revenue £10,211


Summary

17 July 2014

• Ensure whatever solution you select allows you to test and learn

• Be thinking mobile first but always with the mind that mobile is a separate channel

• A mobile specific approach will ensure you make the best of the opportunity and are prepared for what’s around the corner

• Turn frustrated browsers into happy buyers through speed and performance improvements

• Develop navigation on mobile which is contextual and follows best practice

• Tailor your checkout to the mobile experience


A foundation to harness the future mobile opportunity

17 July 2014

Push Notifications GPS iBeacon

Basket Abandonment Mobile Wallets Mobile Marketing

Thank you and Q&A

Donna Dobson

Senior Manager – Sage Pay

www.sagepay.com

[email protected]

Ali Wood

Channel Manager

www.mopowered.co.uk

Alexandra.wood@@mopowered.co.uk

Jim Rudall

Sales & Marketing Director

www.mopowered.co.uk

[email protected]

Business

Sage Pay Webinar - Are you ready for the mobile revolution?