Originally posted on Fox Business
Irked by a brick-shaped wallet or get a charge from being the first of your friends to adopt whiz-bang technology? You might be a candidate for a mobile wallet.
A mobile wallet is a payment system that uses an app on your smartphone linked to a credit card, debit card or prepaid card to make payments in person at a physical point of sale. At their core, they're an extension of digital wallets, or online payment systems such as PayPal that store your payment information for online purchases. But these are used in brick-and-mortar stores.
A survey in January of almost 1,500 smartphone owners by Chadwick Martin Bailey, a Boston-based consumer research firm, found 16% of respondents had used a mobile wallet in the previous six months. At this point, it's likely that regular mobile-wallet users are substantially outnumbered by the 14% of Americans who believe Bigfoot is real.
But that hasn't stopped a mix of startups and established companies from putting forward a number of mobile wallets, including Google Wallet; Isis, a joint venture of AT&T, T-Mobile and Verizon; Square Wallet; and startup LevelUp.
A variety of apps
While all these apps allow you to make a purchase at a point of sale, they all work a little differently.
Mobile wallets. Google Wallet and Isis, two well-known examples, use a special gizmo included in many smartphones called a near-field communication, or NFC, chip. To use it, you just start up your phone, select the card you want to use, and tap the phone against a MasterCard PayPass terminal. Unfortunately, NFC chips haven't found their way into one of the most popular lines of smartphones on the market: Apple's iPhone.
Picture-based mobile wallets. Square's mobile wallet is the primary example, and these types allow you to make an order and pay for it via the mobile-wallet app. The merchant identifies you by your user profile picture and gives you the purchases. The catch is, the merchant must be using Square's payment system, which makes the list of places you can use it short in many areas.
QR, or Quick Response. These code-based mobile wallets, such as LevelUp, complete a purchase by having users scan the code provided by the retailer. Like picture-based systems, this requires merchants to have the necessary software and hardware, limiting its adoption.
Regardless of how exactly they work, security is a big worry for consumers. In the Chadwick Martin Bailey study, 73% of consumers who don't plan to adopt mobile wallets cited security as a reason they haven't tried them.
"The other barrier to adoption is making sure that consumers have confidence in the safety and security of their data," says Denee Carrington, a senior analyst at Forrester Research Inc.
"We all hear stories every day about cyberattacks, and consumers are right to be wary of how their payment credentials are being stored and used and passed around," she says.
John Breyault, vice president of public policy, telecommunications and fraud at the National Consumers League, says that fear may be a bit overblown. Unlike a conventional wallet full of plastic, smartphones can be locked with a PIN, so thieves may not be able to access it. And even if they can, many smartphone providers allow you to remotely shut down your phone if need be.
If thieves do manage to charge purchases to your mobile wallet, a lot of the same protections consumers have when they make conventional card purchases also apply to mobile-wallet transactions, Breyault says.
"If you are linking a credit card or a debit card to your mobile-wallet account, then you're still pretty well-protected by federal rules that require things like allowing you to charge back fraudulent purchases," Breyault says.
However, a mobile wallet that is linked to a prepaid debit card may not enjoy the same legal protections, Breyault says. If a fraudulent mobile-wallet purchase drains your prepaid debit card, your bank may not be legally obligated to restore the funds as they would with a conventional debit card, he says.
Carrington says concerns about consumer protections may be moot if mobile wallets never catch on. And that won't happen until mobile-wallet providers convince both merchants and consumers there's something in it for them.
"Consumers have a really great alternative today in using a plastic card to swipe," Carrington says. "It is reliable, it is pretty quick, it works pretty consistently. People know how to use it, and there is not really trouble with the sort of adoption or having the right equipment."
That's not to say mobile wallets don't have potential. Done correctly, they offer a number of benefits for consumers.
Integration of loyalty programs. Instead of having to keep a hole-punch card or other loyalty card in your wallet, a mobile wallet could work with a merchant to automatically keep track of your purchases.
Coupons. Mobile wallets can receive electronic coupons and automatically transmit information about them to merchants' payment systems.
Skipping the checkout line. Mobile wallets can give customers the ability to order and pay electronically, potentially allowing them to skip the checkout line during high-traffic periods.
Money management. Mobile wallets could be integrated with money-management software to tell you in real time whether something you want to buy will bust your budget or if there's a cheaper alternative.
All that could be put together in a way that's compelling for consumers, Carrington says. It just hasn't happened yet on a scale large enough to be a must-have for consumers.
"There are a lot of things that have to happen for adoption to ramp up in the marketplace," Carrington says. "Some of that has to do with merchant acceptance, consumer awareness and, quite frankly, value for both the merchant and the consumer."
Originally published in All Car Tech
The lightbulb killed the gas lamp. The DVD killed the VHS tape. And now, the world is preparing for the death of another invention past its prime: the standalone GPS device.
We've been expecting this funeral for some time. Google Maps' debut on smartphones was a bad omen, and each new travel app has been another nail in the standalone's coffin. We've bade a long, lingering goodbye to hardware from manufacturers like Garmin and TomTom, and it's about time to call up the pallbearers.
The death knell for GPS units has officially been sounded by marketing powerhouse Chadwick Martin Bailey. CMB asked 1,461 adults across the U.S. about their technology habits. What researchers found was that owners of smartphones and tablet computers are using them in place of many devices they've traditionally relied on.
For example, nearly half of all tablet owners said they now watch movies on their tablets, instead laptops, notebooks, or portable DVD players. (More alarming for cinema owners: 34% said they'd stopped going to the movies altogether.)
The statistics are equally grim for standalone GPS units: among people who own smartphones or tablets, 80% said that they use those devices for getting around. And nearly all -- 89% -- said that they're using other mapping and directional resources less.
Specifically, among people who own a GPS unit as well as a smartphone and/or tablet, 38% said that they were using the GPS unit less than in the past because they preferred to use their mobile devices. Add to that the booming rate of smartphone adoption and the fact that over 25% of U.S. adults are considering a tablet purchase, and the future looks bleak, indeed.
But this shouldn't be too surprising. After all, standalone GPS units are very limited. Like CD players, portable DVD units, and other single-function items, GPS units serve one purpose, and one purpose only. It only makes sense that such devices would be supplanted by roving computers capable of doing many things -- and of being adapted to do others.
This news might indirectly offer a few more clues as to what Garmin is unleashing this Wednesday. We'd almost bet the farm that it has something to do with app expansion or a new concierge service, since that's clearly what's trending in the marketplace. We'll give you the full report later this week.
originally published in Marketing Daily
Tablets and iPhones are fundamentally changing the way people get their entertainment, and they may eventually make that DVD player, GPS and other single-use electronic devices obsolete.
According to a new survey of more than 1,400 consumers by research agency Chadwick Martin Bailey (CMB), people are using their smartphones and tablets for a variety of entertainment outlets, from games to watching movies and television. According to the research, more than half of smartphone and tablet users play games on their device. As a result, nearly two-thirds of tablet owners are using other devices (particularly portable gaming devices) less for this purpose.
Similarly, two-thirds of tablet owners are using their devices to watch feature-length movies. With further tablet adoption, the stand-alone DVD player may become obsolete, says Chris Neal, vice president of CMB's tech and telecom practice. With just over a quarter (26%) of U.S. adults saying they expect to purchase a tablet in the coming year, that development could come relatively quickly, he says.
"As people get more tablets, these devices are an endangered species," Neal tells Marketing Daily. "Those specialty devices do one application really, really well. Now you've got a device that does multiple things."
Even worse are the prospects for stand-alone GPS systems. According to the research, 80% of tablet and smartphone owners have used their devices for mapping and directions. Of these users, nearly 90% of them said they're using other methods such as a standard GPS less. "Some, like TomTom have already placed their bets and said they're not a device manufacturer anymore they're making software only," Neal says. "It will be one of many [GPS-type] apps on an iPhone or iPad."
For every downside, however, there is an upside. On the whole, the increasing prevalence of tablets is leading to more content consumption overall, the agency reports. "The majority of tablet owners are watching full-length movies, TV shows in addition to standard web videos," Neal says. "It's carving into standard TV time a bit, but it's increasing the amount of time people are watching in general, which is good for media companies."
originally posted in examiner.com
A recent study of over 1,400 U.S. consumers conducted by Boston-based custom research firm, Chadwick Martin Bailey found that smartphones and tablets are not only more popular than ever, they are replacing relatively new technology like portable gaming systems as well as devices that have long resisted substitution like TVs and laptops.
The increase in quality and capabilities of mobile devices has sparked major changes in consumer habits. For example: over half of smartphone and tablet users play games on their device and two-thirds of these people are using other devices less for gaming (particularly portable gaming systems).
Additionally, nearly two-thirds of tablet owners have used these devices to watch feature-length movies. As tablets become more mainstream, the data indicate that stand-alone DVD players will go the way of the horse and buggy.
“The increasing ubiquity and capabilities of smartphones, tablets and the mobile networks that support them is having enormous implications for the entertainment and consumer electronics industries,” says Chris Neal, Vice President of Chadwick Martin Bailey’s Tech and Telecom Practice. “Content owners and advertisers of all stripes stand to benefit, while many specialty device manufacturers will need to course correct if they haven’t already.”
Not all consumer behavior changes are a zero-sum game, however. Overall consumption of entertainment, like watching videos on YouTube, social networking, and watching TV and feature length movies has increased as a result of increased smartphone and tablet ownership.
Everyday activities have also felt the effects of the mobile device revolution: 80% of mobile device owners have used their device for mapping and getting directions. Among these users, 89% say they’re using other methods like stand-alone GPS devices less.
The study also looks at behavioral differences by gender, age, income, region, and device ownership. The research also takes a pulse on likely future trends: for instance, 26% of US adults claim they are considering buying a tablet in the coming year.
In March, as part of Chadwick Martin Bailey’s ongoing Consumer Pulse research program, we asked approximately1,400 consumers to tell us how they use their smartphones in stores. CMB's senior consultant Jeff McKenna discusses how parents are relying on smartphones to simplify the shopping experience, and what retailers can do to take advantage. Read the full article published in Toy Book here.
Originally published by Katie Deatsch in Internet Retailer.
Smartphone owners are realizing the power of the mobile app to both gather information about products and services and save, a new poll from Chadwick Martin Bailey and iModerate Research Technologies finds.
A poll of 1,491 U.S. adults finds of those who have used a smartphone app or mobile browser while shopping, 44% have used a bar code scanning app such as RedLaser or ShopSavvy that lets them compare prices and learn more about products and services in stores. 38% have used a discount or deal app such as those from Groupon or LivingSocial that offer deep discounts, typically on local goods.
Location-based shopping apps such as foursquare and shopkick came in last among the shopping-related apps mobile shoppers employed, with 13% reporting using them.
The research also finds nearly a quarter of smartphone owners use their devices to make a purchase. 23% of all adults polled who own smartphones say they have bought with the devices. Men buy more often from their smartphones than women at 27% and 19% respectively. By age, those under 35 buy via mobile the most at 28%, while 23% of those 35 to 49 do so and 10% of those 50 and over say they use their devices to make a purchase.
When it comes to the most popular device for purchasing, the iPhone ranks first with 41% of owners saying they buy with their iPhone. Android follows with 25%, while 11% of BlackBerry owners say they buy with their mobile device. More than 70% of iPhone owners use their device in some form while shopping, the highest percentage of any mobile device.
“Marketers, retailers and manufacturers need to stay ahead of the curve and proactively prepare and implement a mobile shopping plan,” the study says.
While it says marketers are just scratching the surface of mobile, it predicts a few trends for the future of mobile shopping. Some marketers may fight the ability to compare prices from smartphones in stores by offering store-branded goods that can’t be found anywhere else, by bundling products, or by having customers customize and build their own products, making it difficult to truly compare prices, the study states.
Others will embrace mobile apps and use them to improve the shopping experience by informing shoppers of pricing specials and key product benefits, by offering mobile shopping and wish lists, and by delivering rewards and broader and deeper product information via mobile.
“In all cases, retailers and manufacturers must prepare in-store associates to recognize mobile shoppers and empower them to address the inevitable questions about price, features and availability,” the study says.
Originally published by Brian Quinton in Chief Marketer.
More than half of smartphone users look to their phones for some kind of help while shopping, according to new research from market research firm Chadwick Martin Bailey. And while the majority of those aren’t yet buying anything via smartphone, they are whipping out those phones closer than ever to the point of sale, giving marketers a new tool to use in converting to a purchase—and something new to worry about in fending off competition.
The research, conducted in January among almost 1,500 U.S. consumers by CMB and iModerate Technologies, found that shoppers under 35 are much more likely than their older counterparts to use a smartphone while shopping. Among the under-35 crowds, 67% said they use their device while shopping, compared to 51% for those 35 to 49 and only 33% for those 50 and older.
Most often, two-thirds of respondents said, the take out those smartphones to do comparison sh0pping for products or services (66%), followed by finding the nearest store location (58%) and checking for available discounts (58%). Further down the list are reading online reviews (49%), studying up on a rival’s product or service (46%), checking stock availability (38%) or accessing a quick comparison of product/ service features (37%). Over the whole survey group, CMB found, only 23% have actually made a purchase via their smartphone.
These strategies vary somewhat by gender, with women much more likely to check for discounts (64% compared to 52% of men) and males more likely to read reviews than women (54% to 44%) and to compare features on a smartphone (42% to 32%).
The survey found that 41% of iPhone owners said they have made a purchase from their smartphone. That contrasts with 25% of Android users who said the same and only 11% for Blackberry users or those with other smartphone models.
Buying over a smartphone also varies by age and gender. Among those under 35, 28% have made a purchase over their phones. That rate drops to 23% for those 35 to 49 and to 10% for those 50 and over. More than a quarter of the men polled (27%) have bought via a smartphone, compared to under one-fifth (19%) of women.
As for what respondents are buying from their smartphones, the majority of transactions (46%) have been entertainment content, including music, movies and TV shows. But 39% of those polled have conducted banking over their smartphones, and 29% said they have bought electronics. A quarter of respondents (25%) reported that they have taken part in online auctions via their handsets, and almost as many said they have used their smartphones to book travel reservations or buy travel services (25%) or to buy apparel (23%). Only 8% of those surveyed said they had bought personal care products on a smartphone, and only 7% cited app purchases. Five percent said they had bought restaurant gift certificates or made food or beverage purchases using their smartphones, and 1% of respondents said they had bought automobiles.
By a large proportion, men outpaced women in buying electronics over their smartphones (44% compared to only 5%), while women were much more likely than men to have shopped for clothing (38% compared to 14%).
Asked what apps they were most likely to open when using their smartphones to shop, respondents most often cited scanner apps for 2D barcodes or QR codes (44%), followed by discount apps such as Groupon or LivingSocial (38%). And customer review apps such as the one from Consumer Reports (31%). Branded store apps were name by 26% of those polled, and 22% pointed to product comparison apps. Only 13% said they were likely to open geo-location apps such as Foursquare, Gowalla or Shopkick.
The survey found that female smartphone users are more likely than men to use discount apps (43% to 33%), and that men are somewhat more prone to use review apps than women (34% to 28%).
Smartphone ownership has grown in the last year and is expected to increase as prices come down and more mobile users trade up. A recent study by comScore found that there were now 65.8 million smartphone users in the U.S. in the three months ending in January 2011, an increase of 8% from the previous three-month period. And marketing research firm eMarketer has projected that smartphones will make up 43% of the U.S. market by 2015.
That makes understanding how to attract and retain smartphone users all the more crucial for shopper marketing, concludes the CMB survey. “Given the strong growth in smartphone ownership, everyone dependent on the in-store experience—from retail to product manufacturers—must take advantage of opportunities these devices provide for generating sales and improving the customer experience,” CMB senior consultant Jeff McKenna said in a release. “Along with designs for packaging, displays and signage, we will see smartphone-based communication as a necessary element of retail planning.”
The survey concludes that marketers can pursue one of two strategies in integrating smartphone shopping use. Those who want to attract such mobile shoppers can roll out useful branded applications that integrate features like shopping and wish lists, link to shopper rewards programs, or offer better, more detailed product information. Or they can make comparison shopping difficult by relying more heavily on store-branded products or creating bundles of branded products that other retailers might not match.
“In all cases, retailers and manufacturers must prepare in-store associates to recognize the ‘mobile shopper’ and empower them to address the inevitable questions about price, features and availability,” the report concludes.
One interesting sidelight of the CMB survey is the extent to which smartphone users are ignorant of the degree of privacy their data enjoys when they use a mobile app.
For instance, the survey found that 68% of respondents believe that the companies creating mobile apps must have privacy policies to cover data transmitted over those apps. Fifty-one percent said that users can clear tracking cookies on a mobile phone just as they can cookies on PC browsers. And 33% believe smartphone apps can’t access a unique identified that will reveal such personal information as the user’s age, gender or location. And almost half of respondents (49%) said smartphone apps do not share personally identifiable information without their awareness or consent.
In fact, none of those beliefs are correct.
Originally published in eMarketer.
There are 73.3 million US smartphone users in 2011, eMarketer estimates, and many are turning to their phones to help them shop. A study conducted in January by Chadwick Martin Bailey and iModerate Research Technologies revealed that more than half of 1,400 consumers polled reported using their smartphones to assist them with shopping. The research found that more than 70% of iPhone owners report using applications or their smartphone’s web browser to help them while shopping in-store, and 41% are making purchases directly from their phones.
According to the study released in March, 66% of respondents used their smartphones to conduct price comparisons on a product or service and 58% used them to find the closest store locations. While 41% of those polled said they had made purchases from their smartphones, just 17% said that making a purchase was their reason for using a smartphone.
This data is in line with comScore findings, also from January, which identified the top three mobile shopping activities for US smartphone users: finding nearby stores (49%), comparing prices prior to shopping (46%) and researching product details (44%).
Research from Accenture on retail shopping apps found that consumers considered those that offer money-off coupons (42%) and the ability to view current in-store specials (36%) most useful. But somewhat in line with Chadwick Martin Bailey and comScore, driving directions to the store (33%) was the third most useful function according to those polled.
Originally published in JCK.
More than half of smartphone-owning consumers use now use devices to enhance their shopping experience, according to a new study from Chadwick Martin Bailey and iModerate Research Technologies.
The study found that 23 percent of smartphone owners have made a purchase on their device, with the majority taking place on an iPhone. In addition, over 70 percent of iPhone users reported they use applications or the phone’s Web browser to assist them while shopping in-store.
The study found key differences by gender: Women are more likely to use their smartphones to find discounts, while men are more likely to check online reviews.
Originally published by Aaron Baar in MarketingDaily.
The smartphone is changing the retail experience. More than half of smartphone owners use their handsets to assist them while shopping in-store, according to a report from Chadwick Martin Bailey and iModerate Research Technologies.
"As someone who uses [a smartphone for shopping], I'm not surprised by the results," Jeff McKenna, a senior consultant for Chadwick Martin Bailey, tells Marketing Daily. "What's surprising is that it reaffirms what I had expected so strongly."
The most-used apps on smartphones while shopping are barcode scanners, which are used by 44% of consumers, while 38% use a discount app (like Groupon or LivingSocial) and 31% use the Web browser to access review sites.
Not surprisingly, the use of smartphones while shopping is highest among the youngest demographic. Among those under 35, 28% have made purchases with a smartphone, compared with 23% of 35- to-49-year-olds and 10% of those 50 and over. Women are also more likely to use their phones to find discounts, while men are more likely to use them to check online reviews.
Nearly a quarter of consumers have purchased an item through their smartphone (a figure that increases to 41% among iPhone owners). The top smartphone purchases are entertainment choices such as music, movies and TV shows (46%), followed by banking (39%), electronics (29%) and online auctions (25%).
"Given how people are using these smartphones so close to the shopping experience, and how close it is to the transactional experience, [retailers] need to be paying attention to it," McKenna says. "Similar to the social media phenomenon, and how companies are working out how to handle it, this is a similar area."
The two options for retailers, McKenna says, are to either combat the smartphone shopping by creating exclusive deals and products (or by offering more house brands, which can't be compared to other retailers) or embrace it by empowering employees and stores with more information to close sales in the aisles. "At this point, retailers may be actually fighting it, because it's not very easy to do," McKenna says.
Either way, retailers are running the risk of falling too far behind consumers when it comes to smartphone shopping. "I can't say they're in denial, but the fact that we haven't seen much exploration into [smartphone shopping], tells me retailers have not been proactive about it," McKenna says. "Developers are quickly responding to unmet and underlying needs ... and retailers and brands are not necessarily thinking about those needs and being proactive about them."