Businesses, meet SoLoMo. No, SoLoMo is not a hipster New York City neighborhood. SoLoMo – shorthand for social-local-mobile marketing – is the newest face of e-commerce, and it’s poised to revolutionize consumer spending habits in 2013.
Traditionally, businesses face two challenges: increasing consumer traffic and influencing spending decisions at the point of purchase. SoLoMo addresses these challenges by integrating e-commerce with mobile marketing, local search, and social media.
Mobile search now accounts for 12 percent of all search engine traffic. While this percentage may seem small, mobile searchers are highly primed customers immediately in need of a service or product. This is especially true for local SEO mobile searching. Google’s Our Mobile Planet Study found that 94 percent of smartphone owners search for local information. 78 percent of smartphone owners use their smartphones in-store, comparing prices and researching products or services. Shoppers already carry mobile devices everywhere they go. When they need an immediate service, they turn to their mobile devices to find it.
Mobile ecommerce is also exploding. According to a new report from BI Intelligence, nearly one out of every three U.S. consumers use their smartphones to make purchases. Following year-on-year quadrupling in mobile ecommerce traffic, Bank of America predicts revenue from smartphone and tablet retail spending will reach $67.1 billion in 2015.
Mobile payment solutions such as Square and Google Wallet have already made it possible for any business to process payments – no cash register or credit card machine required. Next-generation mobile payment apps are taking SoLoMo even further. These apps are not merely transaction tools, but also full service shopping apps that integrate social media into the virtual shopping experience. For example, Passbook uses ticketing, coupons and loyalty rewards to connect consumers with brands.
In 2013, enhanced location targeting for local SEO searches will help businesses bring consumers directly into their stores and offices. In-store mobile marketing will nudge indecisive buyers towards a specific service or product. And integration with social media will let shoppers read service reviews and share experiences with their social network.
Businesses must position themselves to take advantage of these major changes in consumer spending. Is your company ready?
