How about sharing your thoughts on what 2012 will bring?

I’ll start – While 2011 could be called the year eRetailers got interested in mobile and social media, 2012 will likely be the year of the tablet, and … more social media.

As retailers begin to understand how people search, shop, and consume content on mobile devices, the soaring popularity of the iPad (one of the must-have items on people’s holiday wish lists this year), presents new challenges for retailers, as well as for those of us who provide products and services to them, in delivering a compelling shopping experience on the new “fourth screen.”

For tablets like the iPad and Kindle Fire, the requirements for creating user-friendly search and navigation experiences are different than those for the mobile screen. We have more screen real estate to work with when it comes to tablets, which means a better display of product images and an easier-to-use touchscreen. On the other hand, “t-commerce” or “couch-commerce” will require a different experience than what is displayed on a personal computer or mobile screen. Site owners (and companies like ours) need to brainstorm ways to take advantage of the benefits of tablets (like brilliant displays of photos and videos), while keeping navigation streamlined.

For instance, tapping the screen is the standard method of navigation for tablets. However, small text menus – for instance, which you might find in lists of refinements – are hard to tap on without hitting another menu item by mistake. The same goes for buttons that are too close together, or pagination numbers: easy to click on with a mouse, tough to click on with a finger. In addition, as GetElastic reports, tablets are making it possible for website visitors to interact with content in new ways: people can “touch” content, swiping and zooming to choose how they view text and images. This tactile interaction may cause us to discover new ways to present information, new ways to display navigation, and new possibilities for innovative merchandising and SEO.

Users spend lots of time on Facebook, Twitter, YouTube, Google+ and now Pinterest. We can expect that the merging of e-commerce and social media will gain even more prominence in the months ahead. As we’ve discussed before in this blog, site owners have realized that if people are spending more and more time with their friends on social networks, the website search and shopping experience needs to come to the social setting – instead of trying to lure people away from their social networks.

Now, your turn. What are your predictions for 2012?

The use of smartphones and tablets for shopping this holiday was featured among the NRF’s list of the Top 10 trends for 2011. They predicted that half of Americans with smartphones and 70 percent of tablet owners would be using their devices to assist with their shopping.

Now that the majority of holiday shopping has been completed more reports are surfacing about actual usage.  According to IBM’s Black Friday and Cyber Monday Reports, sales from mobile devices were basically three times higher this year than last.  This data, which comes directly from the web analytics of top retailers, shows mobile devices driving from 10 to 14 percent of all web traffic and from 6.6 to 9.8 percent of all sales.

Mobile commerce has clearly arrived. The question retailers now need to be asking is how well are they meeting the needs of this new mobile consumer and what can they do to improve in 2012?

According to Tealeaf’s 2011 Mobile Shopping Experience Report, retailers have plenty of room to improve.  Their analysis of social conversations around mobile shopping found that 41 percent of the chatter voiced frustrations.  These frustrations were most often related to an inability to complete the purchase and problems searching for products.  A negative mobile experience could create even bigger problems for retailers as a Harris Interactive study points out with the finding that 63% of consumers who experience a problem conducting a mobile transaction say they would be less likely to buy from that company via other purchase channels. Ouch!

As you take a closer look at your mobile commerce strategy and initiatives one of the first steps I recommend is to separate smartphones from tablets.  Based on the data around usage and responses to surveys these devices are entirely two different beasts.  Some have even asked the question if tablets should even be considered mobile commerce. Others are coining new names for their use such as Tablet Commerce or T-Commerce.

Smartphones are being used to help shoppers find store locations and check hours.  And once these shoppers get to the store they put their smartphones to work to research products, read reviews, compare prices and fetch coupons.  Tablets on the other hand are primarily used for shopping at home on the couch or in bed.  In addition, tablet shoppers are about twice as likely to complete a purchase than those with smartphone based on the findings in the survey of online shoppers conducted by Equation Research for rich media merchandising company Zmags which produced a nice infographic summary of the results.

How people feel when using these devices also appears to be quite different.  The Zmags survey found that tablet owners felt happy and more excited to shop than those without tablets.  This was a stark contrast to tabletless smartphone and laptop owners who felt impatient, stressed or overwhelmed about shopping.  Further evidence of this impatience is illustrated in this infographic about disappointment of mobile customers created from another Equation Research survey.  A key finding was that 74 percent of mobile users would abandon a site if it didn’t load in five seconds or less.

With this in mind, here are some questions to think about:

1. How will you adjust you mobile commerce strategy to address the needs of these two types of customers?

2. How will this influence the designs of your mobile experiences on smartphones and tablets?

3. What unique content will you create and provide on these different devices?

Let us know your thoughts about these questions and any other comments or questions you have about the split personality of mobile commerce.

Did Mobile Commerce Really Drive the Growth in eCommerce Holiday Sales?

Like I said in my previous blog: This Holiday season was great. According to IBM, who produces two benchmark reports tracking online sales for Black Friday and Cyber Monday, sales increased 33% over 2010 says. And it would seem that we all skipped the nap after our Thanksgiving meals to get a head start on shopping.  Thanksgiving day sales grew by the largest amount, up 39.3 percent with Black Friday up by 24.3 percent and Cyber Monday up 33 percent.

Home goods and department stores saw the greatest gains on Cyber Monday with increases from 2010 of 68 percent and 60 percent respectively.  Looking a little deeper at the data it was interesting to see that both of these categories showed significant gains in their conversion rates.  Home goods retailers were up over 22 percent and department stores saw conversion rate increases of over 16 percent.

Improving conversion rates is a major initiative for every ecommerce exec so the big question on my mind was how did they achieve such strong gains.  Did they offer better deals than last year?  Had they redesign their site to improve usability?  Or, did this increase in conversion have something to do with the surge in mobile commerce activity?

On Cyber Monday, IBM reported that traffic from mobile devices was up 161 percent and mobiles share of total sales had grown by almost 200 percent.  The data from Black Friday showed similar gains and indicated that mobile was responsible for nearly 10 percent of total sales. Conversion rates from mobile were up as well with Cyber Monday showing an increase of 26 percent and Black Friday up by 32 percent.  Mobile commerce clearly had a hand in these conversion rate improvements and since this data was in aggregate, it could have had an even bigger impact on the home goods and department store categories.

These retailers have definitely been making significant investments in mobile initiatives this year.  Just about every major department store has launched new mobile websites and apps for iPhone, iPad and Android.  The improvements were focused on building features to make shopping easier.  For instance, search functionality was enhanced to include refinements and sorting.  The new apps for the most part included the ability to create shopping lists and some like those from Sears, Macy’s, Kohl’s and Target even added the ability to scan QR and barcodes so finding product information was even easier.

Department stores are also at the head of the pack in terms of their mobile site performance.  Sears, J.C. Penny and Walmart are consistently ranked at the top of the weekly Keynote Mobile Commerce Performance Index.  To speed up access, Macy’s and Bloomingdale’s have gone even further by adding free Wi-Fi service this year in most stores.

Aside from the mobile initiatives, I think Free Shipping promotions were another factor that likely led to the conversion rate improvements.  At the end of August, Nordstrom began offering Free Shipping for the majority of items. On Cyber Monday, Macy’s dropped their minimum order value to qualify for free shipping from $99 to $75 and Kohls.com completely eliminated their $50 minimum purchase requirement.

I’m sure an interview with the heads of ecommerce at these major department stores would reveal many more actions they took to improve conversion rates.  Until then, I would love to hear what changes you have made to drive higher conversion rates and find out how that is working out.  Share you thoughts in the comments box below.