Earlier this week Nielsen released a study that found just about a third of smartphone users turn to their device for shopping-related activities. The study, conducted during the third quarter of 2011, gives a good picture of how we’re using smartphones in stores. One thing the study highlights is that while not everyone is using their phone in this way, many more would like to.
Below I’ve combined Nielsen’s results with a primer on how you can get in on the trend of being a savvy shopper with your iPhone(s AAPL) specifically using apps that are available in Apple’s Apple Store.
38 percent are comparison pricing aka “showrooming”
Nielsen found that 38 percent of survey respondents use their smartphone for comparison shopping while in a physical store. This is encouraged by online retailers, and last holiday season Amazon(s AMZN) gave a 5 percent discount on certain products to users who scanned…
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By John Ginovsky
In its December report on the emergence of corporate mobile banking, Celent wrote that “a slew of new devices, cheaper data plans, and faster networks are upon us. Business mobile users have the opportunity to take advantage of rich and powerful mobile banking services, provided their bank has an offering,” Sound pretty good. But the report, “Corporate Mobile Banking: Revolutionizing Cash Management,” authored by Jacob Jegher, also raises red flags about security.
ABA Banking Journal Tech Topics recently spoke with Jegher about the report’s finding, particularly emerging security issues.
Tech Topics: What’s the difference between corporate and retail mobile banking?
Jacob Jegher: Corporate mobile banking isn’t for everyone. It’s meant for a specific profile of user. Retail banking services, what you and I would use, is meant for the masses. Anybody can pick it up and benefit. For example, if you spend your day working in accounts receivable or accounts payable, sitting in front of a computer, you have no use for corporate mobile banking.
But if you’re a senior executive who has decision-making capabilities for the business and you need to act on things on the move, corporate mobile banking is for you. The types of positions that would apply would be CFOs and treasurers, senior vice presidents, and vice presidents who would be in charge of finance or money movement. That would be the key difference.
Following along those same lines, the functionality in the corporate space, whether it’s online or mobile, the bank has to have an entitlements structure hierarchy, or things that require separation of user tasks. If you are an employee in operations, you may have authority to send a wire payment up to $1,000, for example. The moment you cross $1,000, you’re required to get approval by someone else up the chain. The work flow to follow these payment approvals have to be built in. Anything involved in decision-making is key. Payment approvals, positive pay, exception items, those types of things would be really critical to corporate mobile.
TT: Your report warns against an upcoming explosion of fraud attempts as corporate mobile takes hold. What would cause such an explosion?
Jegher: Right now there’s little or no fraud in corporate mobile banking, but there are a few things that would cause it to explode.
The first would be prevalence. If this starts to be adopted by the large financial institutions, there’s a lean towards high-value payments by fraudsters. Folks like you and me, we tend to send low-value payments as consumers. But [corporate mobile may involve] very large high-value payments, [and] access to wire transfer capability. Of course, separation of duties will prevent security challenges. But anything that has high value payments attached to it is attractive to a fraudster. It’s quite dangerous.
Also, just the relative freshness of the mobile channel is something that’s really uncharted as far as fraud goes. There have been some instances in the consumer space, but very little. It’s simply only a matter of time before we see rampant, rampant attempts at fraud as mobile becomes more prevalent, whether it’s consumer or corporate.
TT: What new forms of authentication are more appropriate for corporate mobile banking, and would business customers accept them?
Jegher: The first point I want to make is that authentication alone is pretty much useless. The key for any infrastructure is to have a layered environment with different bits of security, so that in the event that piece A fails or is broken, piece B is a safety net. Authentication alone is not good enough.
As far as authentication itself goes, hard tokens will eventually be a thing of the past. You won’t have the token necklaces some people now wear when they have multiple relationships with different clients. You can have something called a soft token, where you may have an app that runs on a mobile device that provides that one-time pass.
The other option is to forego the whole one-time issue and look at other things. An examples I give in the report is a gesture-based authentication, where in order to authenticate yourself you draw a pattern on the screen by connecting different dots. You can force a user to use a strong pattern by connecting the dots, and that strong pattern is a method of authentication.
Eventually we may get to things like voice authentication, as the use of voice becomes more prevalent in the market.
The question about balancing the burden on the customer versus the security of the solution, those two examples are very nonburdensome. [Customers] are not required to carry any hardware.
Mobile internet usage is doubling year on year
Nokia global leader
Apple king in US and UK
Boston, USA and Dublin, Ireland; Monday, 6th February, 2012: Global internet usage through mobile devices, not including tablets*, has almost doubled to 8.5% in January 2012 from 4.3% last year according to free web analytics company StatCounter. The firm’s research arm StatCounter Global Stats highlights the increasing use of mobile devices to access the internet with market share doubling year on year since 2009 (Table A below).
“While global internet usage through mobiles is still under 10%, the pace of growth is remarkable,” commented Aodhan Cullen, CEO, StatCounter.
StatCounter has also announced that new stats regarding mobile vendors are now available on its Global Stats website. The firm has been compiling and refining these stats for some time and has now made the beta project public. Based on initial research covering all traffic to the StatCounter network, Nokia leads worldwide, most probably driven by its dominance in India. Apple is second globally but leads the US and UK markets. In the UK RIM is second only to Apple.
“Following repeated requests, we’ve decided to make our new mobile vendor stats publicly available,” commented Aodhan Cullen, StatCounter. “As the mobile space is constantly evolving, we keep our detection under constant review.” Anyone wishing to contribute to the detection project can submit feedback using the detect tool: http://gs.statcounter.com/detect
StatCounter (http://statcounter.com/) provides free website traffic analysis. This allows website owners, developers and bloggers to capture website intelligence in real time e.g. number of visitors, visitors by country/region, search terms, popular pages, download stats, exit links and other data.
Global use of mobile devices to access internet
Jan 2009: 0.7%
Jan 2010: 1.6%
Jan 2011: 4.3%
Jan 2012: 8.5%
Source: StatCounter Global Stats
* StatCounter defines mobile device as a pocket-sized computing device, typically having a display screen with touch input or a miniature keyboard.
For individual country analysis go to:
Further information on our analysis is available at:
Tomi Ahonen: Average users looks at their phone 150 times a day!
BY: DUSAN BELIC, INTOMOBILE
THURSDAY, FEBRUARY 9TH, 2012 AT 12:50 AM
During the recent Mobile Web Africa conference in Johannesburg, 3G strategy consultant Tomi Ahonen took the stage to talk about the prospect of mobile technology and how it changes the world. Here are the highlights from his keynote:
Mobile is the fastest way to reach consumers. According to a study conducted in New Zealand, e-mail is read 48 hours after it is sent, while the average SMS is read in four minutes. In other words, SMS is 720 times faster than e-mail in message-opening throughput.
Nokia reported that the average person looks at their phone 150 times a day, or once every six-and-a-half minutes of every waking hour. In Africa, it’s 82 times a day, or every 12 minutes.
After optimizing its website for mobile devices, Tiffany’s sales grew 125%, prompting Ahonen to conclude that there isn’t going to be “one Internet.”
In China, mobile newspapers have converted 39% of their readers to pay for MMS news headlines. The country’s leading mobile operator, China Mobile, has 40 million paying users on SMS- and MMS-based twice-daily headline services of branded newspapers’ headlines.
Finally, Ahonen concluded that mobile is the fastest growing industry ever, going “from naught to $1 trillion in 2010, and is set to double by 2020.”
A recent Aite Group report, “Mobile Fraud: The Next Frontier”, advises financial institutions (FIs) to prepare themselves to fight mobile fraud. The Aite report, based on a survey of 24 global risk executives, states that while fraud has yet to become common through mobile banking channels, cyber criminals likely have mobile banking and mobile payments on their radar, and many FIs lack fraud protection that equally covers both mobile and online banking programs.
“The most surprising thing in compiling this report was that two-thirds of the respondents said they did not have integrated fraud protection between mobile and online channels at their financial institutions,” said Julie Conroy McNelley, senior analyst and fraud expert with Aite Group.
FIs have not yet built multiple layers of fraud protection for their mobile banking programs, because so far they have not noticed a lot of breaches in that arena – but stiffer fraud measures may soon become essential, if history is any guide McNelley says.
FIs experienced a similar situation five years ago when deploying fraud protection measures with online banking programs. Initially, FIs saw relatively low levels of online fraud, but when organized crime threw its weight behind online banking attacks, fraud prevention became a higher priority.
Additional key data from the Aite report:
- 75% of respondents agreed that mobile banking creates exposure to risks that are not yet completely understood because cyber criminals are always developing new attack methods.
- 57% of respondents fear mobile banking service innovations may outpace the ability of risk management and fraud protection tools to protect them.
- Only 37% of respondents have the same fraud protection measures in place for mobile and online banking programs, which is troubling inasmuch as fraudsters typically create attacks that capitalize on the lack of similar protection measures in place when monetary transactions cross channels at the bank.
- 67% of respondents said they are already working on deploying increased fraud prevention technology over the next two years to protect the mobile channel and 25% are waiting to see what kinds of threats emerge; only 8% have no plans to increase mobile fraud prevention technology.
With its real-time mobile alerting capabilities, Clairmail empowers FIs to enlist the customer in the fight against fraud and to fully leverage the mobile channel for fraud prevention, detection and resolution.
Learn more by downloading the Clairmail white paper, Fraud Solution: Leveraging Mobile to Combat Fraud.
- Pete Daffern, Clairmail CEO
This week, Businessweek published a byline article by Clairmail CEO Pete Daffern on mobile banking security and how smartphone technology is reducing the risks. The following is a transcript:
Mobile banking is on the rise, and chances are you’re one of the 52 percent of consumers who have accessed some form of mobile banking in the past six months. Yet perceived security risks remain a hindrance to full adoption of the technology. In truth, accessing your account via your bank’s mobile website or using your bank’s mobile app is as secure, if not more secure, than banking online via PC. Why?
People always know where their phones are: Studies by Morgan Stanley have shown that the average American (91 percent of those surveyed) has his or her cell phone within arm’s reach 24 hours a day. Think about the last time you lost your wallet or credit card. How much time passed before you noticed? Your mobile phone is always on and available.
Your mobile banking “identity” is tied to a specific phone: Done correctly, your mobile “identity” can be linked to a specific device, making traditional “man in the middle” security compromises much less relevant.
Consumers can mitigate fraud in real time: SMS (short message service) and push messages for smartphones allow consumers to help banks monitor for fraudulent transactions as they happen.
Geolocation helps curtail fraud: Smart mobile companies are leveraging the GPS capabilities of smartphones to stop fraud before it happens. If a physical credit card is used hundreds of miles from a
phone’s location, for example, chances are that one or the other has been stolen.
Future biometric-based security: New smartphones are already being released to leverage this sort of capability. The newest version of the Android mobile operating system, Ice Cream Sandwich, uses facial recognition technology to unlock a user’s phone. And Apple’s introduction of Siri on the iPhone is setting the stage for voice recognition capabilities to come.
February 7, 2012
Chris Silva, my colleague at Altimeter Group, released a useful report today that I wanted to share with you here. Mobile is important and I believe you know this. However, when we consider mobile, we often think about the experience when and where it begins. But, we often miss the opportunity to lead a more meaningful journey as it may travel from small screen to larger screens across laptops, desktops and beyond. And along the way, we must now determine our role in this journey to provide information, shape decisions, and influence behavior.
In Chris’ report, he reminds us that 2011 was the year of the mobile consumer. As he notes
2011 saw a surge in mobile users, but 2012 is the year when smartphone owners become the majority of users, currently hovering just below 50% of U.S. mobile phone users. Tablets, too, take center stage with a near 24% CAGR in adoption.
Indeed. Think about all of the events leading up to this moment today and the role your smartphone or tablet played in helping your discover, share, communicate and learn. You might in fact, be reading this on your mobile device now. The reality is that growth in mobile is blinding as consumers break the shackles of their PCs and expand beyond the reach of wifi to keep them connected to information and people anywhere and everywhere. This is an important moment in the evolution of mobile as it no longer simply about communication or smart communication. Mobile is causing a fundamental shift in society where consumers are evolving into connected consumers. This connected mindset is empowering as people take advantage of on-demand access to not just information, but other people, opinions, shared experiences, and a bevy of apps and resources to help make more informed and efficient decisions than ever before.
In Chris’ graphic, we can see just how pervasive mobile is within our increasingly connected society.
– Tablets comprise 7% of population of all mobile devices owners
– Android users spend on average 1.24 hours daily engaging with the device
– 77% of smartphone users put their phone to work while shopping
58% of adults are somewhat or very likely to make a purchase on their smartphone (this will only become standard one day)
One of the biggest areas impacted by this constant change in market dynamics is of course retail. This past holiday season only proved the point. Consumers scanned barcodes or QR codes to check prices nearby and online. And, before they would consider finalizing the purchase, they would ask for a little help from their friends by taking to social networks or review sites to validate decisions.
In his report, Chris observes…
Retailers, to date, have had mixed success targeting these users. While many have achieved success with mobile, a maturity level Altimeter defines as “flying high” with their mobile strategy, many are in a middle ground of maturity, called “hitting turbulence” and many more are still not yet started and highly immature, or still “on the ground.”
Hitting turbulence is indeed the right metaphor. Some of the biggest retailers were caught surprisingly off guard or rigid in their ability to adapt when consumers would ask customer service managers to match prices displayed on the mobile phone. Small screens caused big ramifications as those consumers would instead leave rather than succumb to aging in store policies that, nowadays, work against the retailer. Think about it for a moment. Consumers willingly abandoned what could be a point of purchase because of a policy that doesn’t apply to today’s standards that are driving connected consumerism. Many times, they would spend their savings in gas to purchase elsewhere or online. If this continues, local retailers will simply become the showrooms of the more adaptive and competitive online retailers. And just wait until mobile commerce becomes disruptive.
Avoiding Mistakes and How to Win
But this is not just about matching prices. This is about shaping and steering experiences. From apps, to in store guides and reward systems, to check-ins to payments and beyond. And as we think through how to engage customers on the small screen, especially within the store environment, walking in the shoes of our connected consumers is now part of the job. We are in fact, the consumers we are trying to reach and as such, we must not introduce strategies that are disconnected from the start.
Here, Chris provides a list of common mistakes to avoid.
1. Mobile for Mobile’s Sake. Major retail brands such as Abercrombie & Fitch (A&F) and Longhorn Steakhouse are prime examples of brands rushing to mobile with a focus on the medium and not the end goal of impacting the business (see Figure 2 in the report).
2. Missing the Chance to Target Mobile Users. Another common mistake is not targeting mobile users. For example, Amazon launched a campaign on December 10, 2011, to have users scan products in-store using its Price Check app (see Figure 3 in the report).
Instead Chris shares tips and best practices to help brands and retailers better connect with the connected consumer…
1. Align mobile with other key teams. Winning mobile teams are tightly aligned with marketing loyalty programs (if applicable) and e-commerce teams. For example, Starbucks built its wildly successful application not around revenue or loyalty card adhesion, but instead around ease of purchase.
2. Focus on what the user needs. Mobile strategies should be holistic and remain focused on what users are seeking. Informational apps may seem simple in design, but a solid strategy seeks to solve the “information” problem, not just the “mobile” problem.
3. Allocate the resources necessary to make mobile successful. Allocation of the necessary resources at U.S. pharmacy and convenience retailer Walgreens is at the forefront of everything the company does in mobile. The Walgreens app used the mobile device’s camera to scan a prescription barcode to initiate a refill, is an example of “multichannel lite” activity.
4. Mobile means multiple platforms. One of the few retailers profiled that has built a tablet and smartphone version of its app along with a fully featured mobile website, Zappos, worked many processes in parallel to get its application off the ground.
Everything begins with understanding the maturity of your mobile strategy so that you pinpoint areas where to improve in capabilities and ultimately more engaging and productive experiences…with desired outcomes.
On the Ground. Retailers in this phase of maturity are just beginning their journey into mobile. They’re on the runway, ready for takeoff, but still laying out the groundwork for their mobile strategy in its first iteration. There is much ground to cover, and the potential to fall behind or lose ground to competitors is high.
Hitting Turbulence. Retailers at this maturity phase have jumped into mobile with some of the best intentions but have not realized the revenue or customer interaction gains they hoped to achieve. What is most likely holding them back are that the efforts in these organizations are not clearly focused on serving business needs or actual customer pains.
Flying High. The news is not all bad; we interviewed many successful mobile teams that have attained success with their mobile strategy. Their apps currently provide a positive impact to the business and make interaction and purchasing easier for customers, addressing an actual customer pain.
If 2011 was the year of the mobile consumer, 2012 is the year of the mobile marketer. You are now an architect of experiences that helps the customer journey end in your favor. Use this report to help build a bridge not only between screens, but also to weave engaging, useful and efficient experiences that help customers make decisions in your favor now and over time. Innovation is now an ongoing investment as expectations and device capabilities will continue to evolve in parallel.
Think about the experience and the desired outcome…not just mobile for mobile’s sake. The small screen is a window to decisions, sentiment, and loyalty.
Download it or read it below to learn more about how to deliver remarkable mobile experiences…
Cellhelmet Protects Your iPhone and Insures It, Too
by JANET CLONINGER on FEBRUARY 7, 2012 · 5 COMMENTS
This is another Kickstarter project. The cellhelmet case for iPhone 4/4S (US & Canada versions) from cellpig.com is a TPU case with a difference. This case comes complete with a one-year insurance policy from Global Warranty Group, “one of the nation’s largest and most recognized iPhone insurance administrators”, to repair or replace your iPhone if it is accidentally damaged while in the cellhelmet case. (Water damage is excluded.) Each case comes with two colored inserts to give your iPhone a little personality. You’ll need to pledge a minimum of $40 to get a case. They met about 84% of their funding as of today, and they have 32 more days in the funding period – still time to get one of these cases for yourself.