A new retail channel is looming that will allow consumers to browse the Web and buy at any time and from anywhere, without a wired Internet connection. It is called mobile commerce or m-commerce.
There has been a lot of hype over the "wireless Internet," and the current
generation of wireless devices does indeed provide the ability to access the Internet, but not in the same way as desktop PCs.
First, the bandwidth based on the current North American cellular infrastructure is limited. This means rich content is not practical.
Second, WAP and WML (Wireless Markup Language) are designed to work with cellular phone user interfaces. Graphics are limited and displays are designed to be scrolled vertically rather than like an HTML-based Web page. Also, since most cellular phones do not have a traditional keyboard, entering a long URL can be difficult.
Third, many wireless PDAs offer "Web clipping" as Internet access rather than browsing. "Web clipping" downloads pages from Web sites and reformats them to fit the PDA screen. It converts input forms whenever possible so that users can fill in information and the data is sent back to the Web site in the next synchronization.This, however, is not conducive to interactive ecommerce, where immediate input/output is needed.
Given the limitations of the current technology, it is easy to dismiss the idea of m-commerce. However, developments are underway that will improve functionality and the user experience:
• Currently, when a Los Angeles cellular user travels to San Diego and calls 911, the call is routed back to Los Angeles. But there is a mandate for the development of "e-911" that would track a caller's location and route the call to the local 911 center. This capability will also allow location-centric applications such as real-time information on promotions at nearby stores.
• New wireless infrastructure will enable transmission speeds closer to that of wired systems. New standards like GPRS, CMDA-2000 and 3G, which are being tested in limited areas, are designed to operate at connection speeds of 28,800 bps to 1.5 Mbps (megabits per second).
• New hardware devices with bigger screens and more usable input are coming. Handspring Corp., for example, has an adapter that will turn its PDA into a cellular phone/PDA combination.
• New voice recognition technology that responds to natural speech is creating a new category of voice portal applications. For example, 1-800-4-BEVOCAL allows users to ask for driving directions and locate businesses with just a voice-driven interface.
Considering these developments, retailers need to determine how to incorporate wireless Web technology into their marketing strategy. Here are some tactics:
• Many retailers are already using email for marketing and promotions; adding text messaging would give retailers an additional way to reach the customer.
• Third-party companies such as AvantGo are setting up content channels for wireless PDAs. Retailers can market this to consumers by modifying existing Web content to accommodate the handheld-friendly format.
• Offering WAP-based service will allow customers to conduct business using their phone or other WAP-based devices. If the retailer has an existing telephony-based or voice-response-driven application, converting it to WAP would add value to the consumer experience. Ticket reservations, for example, are very "WAP-able" because the menu structure is designed to use the telephone keyboard.
Kenneth Leung is the director of retail industry marketing with Informix Corp. He can be reached at kenneth.leung@informix.com