Tag: mobile commerce website

Mcommerce investment earned back by Crocs in 2 months

| March 10, 2014

The company’s move to create a smartphone specific website has rapidly paid for itself.

According to two execs from Crocs, their recent decision to create a website that was specific for mobile devices such as smartphones and tablets has been a tremendous success, as the mcommerce site was able to earn back the money needed for its creation within a period of only two months.

The channel has clearly shown itself to have tremendous profit potential, when used correctly.

This information was revealed at the “Increasing Mobile Conversion through an Emphasis on Usability and Design” session at eTail West. Also speaking were execs from Skava and the Wyndham Hotel, with Artisan Mobile’s CEO, Bob Moul, acting as moderator. Throughout the discussions regarding the advantages of mcommerce, the global ecommerce mobile product manager from Crocs, Keith Baltus, pointed out that while the conversion rate that is currently generated over smartphones may be quite low at the moment, every little bit goes a long way in terms of elevating the results that are achieved.

The affordability of mcommerce makes it possible for some experimentation.

Baltus admitted that he had felt “pretty conservative” about the forecasts that he was expecting from the mobile commerce website. He felt that there would likely be an incremental revenue increase of about 5 percent per locale per device. That said, he has now seen that they essentially “blew that out of the water”. Within the first two months of having launched the smartphone friendly site, they’d already paid back their investment.Mcommerce - Crocs

Until the new site for mobile shopping was put into place, Crocs had been relying on a desktop site that would render for mobile. However, this latest investment brought a new second website that was dedicated specifically to smartphones and tablets and the effort has caused mcommerce conversion rates to spike. In fact, in some of the company’s Asian markets, there has been an increase of close to 100 percent.

As the discussion continued, Baltus pointed out that conversion over smartphones rose by 50 percent and tablet based conversions received a 10 percent boost. He underlined usability as one of the primary drivers of the improvements that were recorded. Crocs notes that smartphones currently account for 7% of its e-commerce revenue, with tablets accounting for 13% of total e-commerce revenue.

Mobile commerce success doubles at Argos

| October 29, 2013

The company’s online transformation is now a year old and is proving to have been highly worthwhile.

Argos has announced that in the first half of its financial year, its mobile commerce has over doubled and is now representing 16 percent of its total online sales, only one year after having redesigned its entire digital existence.

Approximately 43 percent of all of its sales were made online, illustrating the growing importance of digital.

This figure includes the Check & Reserve service use, which experienced a 124 percent mobile commerce growth over smartphones and tablets, combined. This was led by a new app that was released for both of those devices. Overall, in the multichannel sales experienced by the company are now representing 52 percent of the total sales at Argos. During that period, it represented £899 million in sales.

At the same time, Homebase, an Argos sister company has also seen extensive mobile commerce growth.

Argos - Mobile CommerceWithin the half year period, Homebase saw a growth in its own multichannel sales by 28 percent. Both of those companies are owned by Home Retail Group. Overall, that organization saw a rise in sales of 3 percent, reaching £2.6 billion within the 26 weeks that ended on August 31. This includes the figure contributed by mobile commerce.

At Argos, like-for-like sales increased by 2.3 percent, whereas at Homebase, those sales increased by 5.9 percent. That said, at the same time, there was a 70 decrease in pre-tax profits, which dropped to £14.2 million from having been £46.7 million during the same period in 2012. This is explained because last year the organization was able to benefit from a very large credit of £35 million. This year, it faced a cost of £12.6 million instead of a credit. This had to do with the expenses of its “restructuring actions” such as its digital transformation program.

At the same time, if all of those offline, online, and mobile commerce costs are not taken into account, then the benchmark pre-tax profits brought in £27.4 million, which is an increase of 53 percent over the £17.9 million that was seen last year.