The 80-20 Rule in Mobile Commerce

A new look at mobile power users finds that they spend a disproportionate amount of time using apps compared to average users.

For purposes of the data analysis by SessionM, power users were defined as the third of people responsible for the most in-app actions on the company’s rewards-based network.

These power uses accounted for most (78%) of the total time spent in apps.

This reminds me of the old 80-20 rule, where 80 percent of a given activity is done by 20 percent of the people, among various other iterations.

This makes me wonder if mobile commerce is now at the 80-20 stage, where 20 percent of the high-level activity is being done by a relatively small percentage of users.

We do know from various research reports that a large percentage of mobile users at least try different things.

For example, more than half (52%) of consumers used a mobile device to book travel in the last 90 days, according to a recent report from JiWire.

Another study found that a large percentage (85%) of smartphone owners use their mobile device to compare information about companies, products and pricing before making a purchase. The research by Kentico also found that mobile users have a low threshold for satisfaction, with 44% saying they wouldn’t return to a website that wasn’t mobile-optimized.

But many of the studies around mobile commerce tend to measure what is done on the device but not necessarily how frequently.

As a result, a study might show that a large percentage of people have, say, shopped using a mobile device but not necessarily if it has become part of their regular behavior.

There clearly are many power users in the market (and you know who you are), who leverage mobile to the max. They scan for price matching, tap into deals based on location and download and delete apps to suit current needs and desires.

They continually see and extract the value from their smartphone and tablet. And then there is everybody else.

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OMMA mCommerce, July 15, New York. MasterCard, Bank of America, Giant Eagle coming. Here’s the AGENDA.

Tags: mcommerce, mobile
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5 comments about "The 80-20 Rule in Mobile Commerce".
  1. Pete Austin from Triggered Messaging , May 30, 2013 at 8:01 a.m.
    So the 33% of people who use apps most are responsible for 78% of the use time. The only surprise is that this figure is much lower than one would have expected from the 80:20 rule (80% is used by the top 20%). Any idea why?
  2. Juliette Cowall from Godwin Plumbing & Hardware , May 30, 2013 at 8:12 a.m.
    " ... 44% saying they wouldn’t return to a website that wasn’t mobile-optimized." Does this mean that 56% would return to a website that wasn't mobile-optimized?
  3. Chuck Martin from Chuck Martin , May 30, 2013 at 11:14 a.m.
    I had the same initial reaction, Pete, but the researchers simply selected a percentage that happened to be a third rather than, say, 20%.
  4. Chuck Martin from Chuck Martin , May 30, 2013 at 11:18 a.m.
    Presumably that is the case, Juliettte, though that 44% said they would never return. The majority (52%) also said they would not return often if not optimized.
  5. tenoras balsas from Digital Revealed , June 3, 2013 at 2:21 a.m.
    Mobile is future, definitely! And there are new mobile commerce apps like http://www.keapo.com that are free for sellers and buyers, and allows selling products directly from a mobile device