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Mobile Business 2016

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Independent publication by 13 / 12 / 2015 # 353 raconteur.net How to keep customers satisfied with mobile 03 Mobile phones are so much a part of people's lives that the user experience cannot afford to disappoint Coming to your small screen soon 06 Mobile marketing can fulfil its potential if small-screen advertising is relevant and engaging Make mine a mobile at the till 05 Mobile payments are set to take off in 2016 triggered by the launch of new effective and secure systems Taking 5 easy steps to being 'appy 08 Most UK employees now use apps on mobile devices for work, boosting their productivity Mobile first and foremost in 2016… UK companies without an effective mobile strategy will fall behind their competitors as smartphones are set to dominate the New Year OVERVIEW NIC FILDES I t was only a few years ago that a chief executive could stand up and point to an overhead projector displaying a PowerPoint presentation to boast the company was now "mobile first". Few would have thought it odd the projector was con - nected to a laptop, which somewhat under- mined the message. That won't wash anymore. The bring-your- own-device revolution, with staff favouring their own smartphones to company issue, flushed out any notion that firms could talk a mobile strategy without really having one. And the world is only moving more mobile, more quickly. Companies ranging from Apple to Uber to ASOS are now totally de - pendent on smartphones and most successful busi- nesses will be those that have been "born mobile" or have managed to trans- form themselves to fit on the small screen. Government figures suggest a third of small businesses have still not tailored their websites to work over mobile. This can have disastrous effects after Google adapted its algorithms in April to prioritise websites that have been optimised for the smartphone screen. The move was dubbed "mobilegeddon" for those companies that have not caught up. The latest Ericsson Mobility Report makes for grim reading for any business hoping to succeed without a defined mobile strategy. There are 3.4 billion smartphones in peo - ple's pockets this year which is 1.2 billion more than last year. That will rise to 6.4 bil- lion by 2021 when 85 per cent of all subscrip- tions will be defined as "mobile broadband". By then, countries including Japan, South Korea and the United States are expected to have forged ahead with commercial 5G launches, which will provide another quan - tum leap in mobile connectivity in terms of speed, capacity and functionality. A truly mobile-first strategy can have as dramatic an effect for many business - es as the introduction of computers. Although the world occasionally tilts back towards older methods – the fervour for vinyl records rather than Spotify subscrip- tions for example – it would take a brave entrepreneur to ignore the potential of smartphones can have both internally and externally. Mike Gregoire, chief executive of CA Tech- nologies, puts this into perspective. "Fifteen years elapsed between the introduction of the personal computer in 1978 and the first internet browser in 1993. From the internet browser to Face - book took only about nine years. And this rate of 'innovation compres- sion' is getting faster," he says. "The first true smart- phones came out in the mid-2000s. It took only five years for the shar- ing economy to appear. You have to catch the wave when it hits – or risk being left behind. The window of opportunity to surf the wave is getting shorter. "History books are filled with tales of big companies that were once stalwarts, but misjudged the rate of innovation compres - sion. Today innovation is incredibly demo- cratic – and fast. And it radiates at an expo- nential pace." Phil Mottram, enterprise director at Vodafone, says many companies remain concerned about cost in signing to take advantage of 4G connectivity, but that is a false economy as customers now expect constant attention and demand for more flexible working practices only set to grow. "Customers' expectations are growing. They increasingly expect round-the-clock, quality service. The proliferation of mobile devices and social media have transformed customers' expectations when engaging with brands. We now operate in a 24/7 en - vironment where speed is of the essence," he says. "If businesses don't keep pace with their customers' expectations, they risk falling behind their competitors and potentially losing business to their more tech-savvy counterparts." EE, the largest 4G network in the UK, argues that 4G has had a more profound impact on the business market than it has with consumers. It says data usage for con - sumers has increased four-fold with more people watching YouTube, Netflix or Sky Go on their phones and tablets. That pales in comparison to businesses where data usage has risen six-fold. Half of those companies – 8,700 at the last count on the EE network – say 4G is now critical to their competitiveness, while two thirds say the faster network has boosted productivity by at least 10 per cent. There is not an industry that cannot ben - efit from an advanced mobile strategy and whole industries have been "disrupted" by the impact of a new generation of business- es which have been born mobile, such as Uber, Airbnb and Shazam. ASOS, for exam- ple, has revealed that 60 per cent of traffic to its website is now from mobiles, with 44 per cent of sales booked on the move. Yet the impact of mobile goes well beyond that of online shopping. Housing compa - nies such as Green Square have used 4G at construction sites to speed up the time it takes to break ground. Traditionally they would have to wait for a fixed broadband connection to be installed. The company believes that up to 2,000 more new homes will be built as a result in 2016. London's Air Ambulance, which uses EE's 4G network, has sliced as much as two minutes off its dispatch times – more efficient but also a matter of life and death in this case. It may feel like a whirlwind keeping up with the smartphone sector with compa - nies confused about whether to develop an app, optimise an existing site and what to do about emerging trends such as ad block- ing. Yet mobile needs to be at the heart of strategy for almost any business, large or small. "We use our pocket-sized devices for working on the go, shopping for shoes, hailing taxis, making sure we don't get lost and posting for our legions of social media followers. We'd be lost without our smart - phones," Vodafone's Mr Mottram con- cludes. "With this in mind, any business that hasn't considered its mobile presence is going to fall behind." Although this publication is funded through advertising and sponsorship, all editorial is without bias and sponsored features are clearly labelled. For an upcoming schedule, partnership inquiries or feedback, please call +44 (0)20 3428 5230 or e-mail info@raconteur.net Raconteur is a leading publisher of special-interest content and research. Its publications and articles cover a wide range of topics, including business, finance, sustainability, healthcare, lifestyle and technology. Raconteur special reports are published exclusively in The Times and The Sunday Times as well as online at raconteur.net The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal liability can be accepted for any errors. No part of this publication may be reproduced without the prior consent of the Publisher. © Raconteur Media Distributed in Published in association with Distributed at STEPHEN ARMSTRONG Contributor to The Sunday Times, Monocle, Wallpaper* and GQ, he is also an occasional broadcaster on BBC Radio. SAM SHAW Freelance writer and editor, she covers a wide range of topics including business, finance, technology and travel. DAN BARNES Award-winning business journalist, he specialises in financial technology, trading and capital markets. HAZEL DAVIS Freelance business writer, she contributes to The Times, Financial Times, The Daily Telegraph and The Guardian. NIC FILDES Technology and communications editor at The Times, he was formerly with The Independent and Dow Jones Newswires. CONTRIBUTORS BUSINESS CULTURE FINANCE HEALTHCARE LIFESTYLE SUSTAINABILITY TECHNOLOGY INFOGRAPHICS raconteur.net/mobile-business-2016 RACONTEUR Publishing Manager John Okell Digital and Social Rebecca McCormick Sarah Allidina Head of Production Natalia Rosek Design Grant Chapman Samuele Motta Kellie Jerrard Production Editor Benjamin Chiou Managing Editor Peter Archer A truly mobile-first strategy can have as dramatic an effect for many businesses as the introduction of computers Share this article on social media via raconteur.net GLOBAL SMARTPHONE CONNECTIONS (BN) 2008-2020 AVERAGE HOURS SPENT ON MOBILE DEVICES A DAY BY AGE GROUP Source: GSMA Intelligence 2015 Source: Salesforce 2014 MOBILE BUSINESS 2016 AVERAGE HOURS SPENT ON SMARTPHONE AVERAGE HOURS SPENT ON TABLET 5.2 hrs 3.7 hrs 3.5 hrs 3.1 hrs 3.4 hrs 3.1 hrs 2.9 hrs 3.4 hrs 2.0 hrs 2.2 hrs Getty images 18-24 25-34 35-44 55+ 45-54 Asia-Pacific Former Soviet states Europe Latin America Sub-Saharan Africa Adoption rate North America Middle East and North Africa 2008 0 1 2 3 4 5 6 09 10 11 12 13 14 15 16 17 18 19 20 4% 6% 8% 13% 20% 28% 31% 44% 50% 55% 59% 62% 65%

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