The 2018 mCommerce Index released by Paypal Australia states that almost 90% of Australian businesses that adopted a subscription model experienced an increase in their revenue. In addition to this, they also found out that 72% of Australians were shopping using their mobile phones. However, the research showed that there is also a significant gap between consumer demand for advancement and the willingness and readiness of businesses to engage with mobile payments.
“While subscription services are most popular with younger shoppers, adoption is strong across all demographics and the popularity of these ‘set and forget’ services is paying off for businesses,” says Libby Roy, PayPal Australia MD.
“Despite strong uptake of subscription services, our research found that only one-in-ten Australian businesses (11%) currently offers subscriptions, revealing an opportunity for businesses looking to improve customer loyalty and maintain a recurring revenue stream.”
“As consumer dependency on technology accelerates, so too do expectations of mobile experiences,” continues Roy.
One out of eight shoppers purchased over their mobile phones on a daily basis and 18% of businesses that adopted mobile payments benefited from this and attributed the increase of their sales to this.
“Our research found that nearly half of Australians (47%) are annoyed when a site doesn’t work well on a mobile and almost a third (30%) of mobile shoppers have abandoned a purchase due to lack of mobile-optimisation or because of security concerns (29%).”
The research further added that shoppers’ buying behavior is significantly influenced by social media platforms. 19% of respondents admitted to engaging on window shopping via social media and ended purchasing products using the same platform as well.
Businesses should seriously consider the demand for m-commerce as part of their strategy in order to acquire more customers and remain competitive in an increasingly complex retail landscape. Great customer experience is the key.
Refer to the full article at Marketingmag.com.
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