European consumer attitudes to mobile commerce

Key barriers and opportunities

UK, France and BeNeLux A consumer research study commissioned by ATG

ATG Research Report | October, 2009

Survey Background
ATG sponsored an independent research in three key European markets to find out how and why customers shop with their mobile devices (m-commerce). Participants were asked about current habits and attitudes towards m-commerce, likely purchases and factors that would encourage them to use m-commerce in the future. The research surveyed 2,103 consumers in the UK, France, and Belgium, Netherlands and Luxemburg (BeNeLux) in September 2009.

Research Highlights Research shows that interest in m-commerce is rising. As more consumers upgrade to smartphones, there is clear potential for certain goods and services to be sold via m-commerce.
Todays consumers are increasingly using their mobile phones when making buying decisions, researching products, sharing information with friends and making purchases. But what makes them buy? And, likewise, what puts them off? For companies looking to tap into this emerging market, this research should help define how to best include mobile as part of an integrated commerce strategy. The research shows that while m-commerce is still in its infancy, interest in m-commerce is rising. As more consumers upgrade to smartphones, they want to do more while they are on the move. There is clear potential now for certain goods and services to be sold via m-commerce. However, for this potential to be realised a variety of barriers must be addressed by mobile operators, handset manufacturers and retailers alike. Consumers say clearer pricing for mobile browsing and more affordable smartphones with larger screens would boost usage rates. Respondents also think secure and easy payment services should be a key priority for retailers., Below is an outline of the key findings. Adoption rates are steady:

37% of consumers surveyed have tried m-commerce 33% of the market in France called m-commerce an enjoyable and easy way to shop compared with 23% in the UK
and just 3% in BeNeLux

11% of respondents have tried m-commerce but find it a difficult way to shop

Certain goods and services appeal to mobile shoppers:

31% of purchases in the UK are for cinema and theatre tickets 30% of purchases in France go towards train and plane tickets 45% of purchases in BeNeLux are used towards takeaways 28% of those surveyed would buy music or DVDs while on the move

Research Highlights
Unclear pricing is the biggest barrier to adoption:

37% of consumers surveyed say unclear pricing guidelines for accessing the mobile internet is most preventing them
from using it

24% say low network service is another key concern 10% say inflexible data bundles are a major worry
Wi-Fi, affordable handsets and bigger screens would boost take-up:

31% of respondents say handset manufacturers should offer more Wi-Fi enabled phones so its possible to connect to
a phone internet connection at no additional cost to make them more likely to shop using their mobile devices

31% of consumers in BeNeLux say more 3G phones will encourage adoption, compared with just 18% in France and the UK 27% of those surveyed think more affordable smartphones would boost uptake 26% of consumers say handset manufacturers should offer phones with bigger screens to enable easier browsing of
the mobile Internet Secure and easy payment services most important for retailers:

37% of consumers say providing secure easy payment services would make them more likely to shop using their
mobile device

25% say mobile-only offers and incentives would encourage them to use m- commerce 22% think retailers should optimise sites for mobile viewing on smaller screens Mobile applications are least likely to convert consumers, with just 15% believing specific applications would make

them more likely to shop from their device

Insights and Recommendations m-Commerce is best managed from one platform that delivers the same seamless experience in-store, online, by phone or even via the mobile Internet.
Mobile commerce is growing in Europe The mobile Internet presents new opportunities for retailers and operators to extend their reach and grow sales for particular products and services. According to Google, there are 490 million mobile Internet users globally, with that number set to increase to 1 billion by 2011. The growing popularity of smartphones such as the BlackBerry and iPhone is also contributing to the rise of m-commerce. In fact, Googles statistics show iPhone users are 50 times more likely to search the Web than those on traditional mobile devices. Consumers increasingly rely on their mobile phones and always looking for new ways to use them while on the move. Mobile is not for everyone With more consumers upgrading to smartphones, the mobile Internet is becoming easier to use. The introduction of 3G makes speeds much faster. However, m-commerce is not a critical channel for everyone. This study shows that m-commerce is most suited to convenience products and services such as travel tickets, music, cinema tickets and takeaways. Mobile should be part of one commerce strategy There is no doubt purchasing patterns are changing and m-commerce will become more common in the future. The opportunity for retailers and the Telco industry is immense but much work is still needed to deliver an enjoyable mobile shopping experience. Retailers need to carve out mobile channels now if they want to stay ahead of the competition. At the same time, operators and handset manufacturers need to work together to offer customers more clarity on pricing and services. What is most important is that customers receive a seamless experience from anywhere, regardless of what channel they choose to shop with. M-commerce is best managed from one platform that delivers the same seamless experience in-store, online, by phone or even via the mobile Internet. A centralised approach ensures control and provides the tools to add new channels all within the same framework. Personalising services and channels for customers based on their changing lifestyles, tastes and nuances will ultimately deliver the type of shopping experience they want.

Survey Results: Profile of Survey Respondents

1. What is your gender?

Male
52%

Female
48%

Male
31%

Female
69%

Male
37%

Female
63%

BeNeLux

France

UK

Survey Results: Mobile Internet Shopping Experience

2. How would you describe your experience of shopping using the mobile Internet?

UK

23.32%

13.58%

63.09% Enjoyable and easy way to shop Tried it but difficult way to shop

France

33.40%

7.71%

58.89%

Never shopped using the mobile internet

BeNeLux

10.89% 2.97%

86.14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Survey Results: Mobile Internet Shopping Experience

3. What types of goods are you/would you be most prepared to buy using the mobile Internet?

UK Music and DVDs Fr ance Plane or train tickets Cinema or theatre tickets Takeaway f ood BeNeLux

0%

10%

20%

30%

40%

50%

Survey Results: Importance/Usefulness of Mobile Internet Commerce Service Features

4. What, if anything, is most preventing you from shopping using the mobile Internet?

BeNeLux
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 28.71% 31.68% 26.73% 12.87%

Inflexible data bundles

Slow network service

Unclear pricing guidelines for accessing the mobile internet

Nothing, I'm completely happy

France
50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 44.66% 21.05% 11.96% 22.33%

Inflexible data bundles

Slow network service

Unclear pricing guidelines for accessing the mobile internet

Nothing, I'm completely happy

UK
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 33.96% 27.35% 31.28%

7.42%

Inflexible data bundles

Slow network service

Unclear pricing guidelines for accessing the mobile internet

Nothing, I'm completely happy

Survey Results: Importance/Usefulness of Mobile Internet Commerce Service Features

5. What could handset manufacturers do to make you more likely to shop using you mobile device?

UK Phones wit h bigger scr eens

More affordable smar t phones Fr ance Offer Wi-Fi enabled phones

Offer phones with 3G capabilit y BeNeLux

0%

20%

40%

60%

80%

100%

Survey Results: Importance/Usefulness of Mobile Internet Commerce Service Features

6. What could retailers do to make you more likely to shop using your mobile device?

BeNeLux
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 35.92% 26.21% 20.39% 17.48%

Develop specific Offer mobile internet Optimise sites for applications for only special offers viewing in a smaller mobile phones and incentives screen

Provide secure, easy payment services

France
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 36.26% 27.67% 21.15% 14.92%

Develop specific Offer mobile internet Optimise sites for applications for only special offers viewing in a smaller mobile phones and incentives screen

Provide secure, easy payment services

UK
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 38.78% 23.95% 14.92% 22.34%

Develop specific Offer mobile internet Optimise sites for applications for only special offers viewing in a smaller mobile phones and incentives screen

Provide secure, easy payment services

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Methodology Responses to the European Mobile Commerce Consumer Survey were generated from 2,103 consumers in September 2009. 1,000 consumers in the United Kingdom and 1,000 in France were surveyed using Toluna Quick Surveys. A further 103 consumers were surveyed in person in Amsterdam as representative of the Belgium, the Netherlands and Luxembourg (BeNeLux) region. About ATG A trusted, global specialist in e-commerce, ATG (Art Technology Group, Inc., NASDAQ: ARTG) has spent the last decade focused on helping the world's premier brands maximise the success of their online businesses. ATG Commerce is the commerce platform and business user application solution top-rated by industry analysts for powering highly personalised, efficient and effective e-commerce sites. ATG's platform-neutral optimisation services can be easily added to any Web site to increase conversions and reduce abandonment. These services include ATG Recommendations and ATGs eStara Click to Call and Click to Chat services. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America and Europe. For more information, please visit http://www.atg.com.

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