/// How $10 Million Can Lose You $250 Million
Image copyright Ilin Sergey Every company is seeing a rise in mobile traffic, but often can’t figure out why direct revenue from mobile isn’t increasing at a rate proportional to traffic. While mobile still represents a seemingly small percentage of overall revenue — generally between two percent and 10 percent depending on the business — the growth rate is impossible to deny. A recent study by IBM found that mobile commerce grew by 31 percent in Q1 of 2013, outpacing all e-commerce at 20 percent and in-store at 3.7 percent. Any statistician will tell you that percentages are only as good as their perspective size, coercing many marketing strategies to focus on other “channels.” However — to be blunt — mobile is not a channel. It begins, reinforces and sometimes completes all channels. By not understanding the influence that mobile devices exert in all revenue centers, any company is susceptible to losing revenue at 25 times that of direct mobile revenue. Applying research from a March 2013 Deloitte study , mobile can influence traditional in-store purchases by an astounding 17x. In addition, BloomReach’s internal data anonymously connecting mobile and Web usage on the same merchant shows that mobile can influence a desktop e-commerce channel by up to 7x. So, hypothetically, a company that loses $10 million in yearly mobile revenue that provides poor mobile experiences stands to lose $70 million from desktop revenue and an additional $170 million from in-store purchases — totaling a whopping $250 million. Think it’s not possible
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How $10 Million Can Lose You $250 Million
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