Square Releases “Growth of Mobile and Conversational Commerce Report” Alongside Advanced Features for Square Messages

Rhea-AI Summary

Square's Growth of Mobile and Conversational Commerce Report reveals that 40% of businesses are not leveraging mobile commerce technologies despite rising consumer demand. The report indicates that 98% of consumers prefer mobile interactions, and 30% expect to increase mobile shopping over the next year. Among businesses, 60% utilize mobile commerce, with 53% reporting enhanced customer relationship management. Square's Messages platform has seen a 3X increase in active merchants using it since March 2021, integrating advanced AI features to enhance customer communication.

Positive

• 40% of businesses are missing out on mobile commerce opportunities.
• 98% of consumers prefer mobile communication with businesses.
• 60% of businesses currently use mobile commerce, with 53% reporting improved customer relationship management.
• Square Messages has seen a 3X increase in active merchant usage since March 2021.

Negative

• 40% of businesses are not utilizing mobile commerce despite its benefits.

Findings from Square and Wakefield Research reveals that nearly 40% of businesses aren’t utilizing mobile commerce technologies, despite vast benefits and increasing consumer usage

SAN FRANCISCO--(BUSINESS WIRE)-- Today, Square released its Growth of Mobile and Conversational Commerce Report, revealing the opportunities and challenges businesses face as they expand into new commerce channels. To uncover these insights, Square surveyed consumers and business owners across the U.S. on their behaviors and sentiments, both now and in the future.

Mobile and conversational commerce, such as shopping experiences that are powered on phones, continues to be on the rise among consumers who increasingly expect convenient, seamless interactions with the businesses they frequent — most often from their mobile devices.

• Younger generations are most attuned to using phones to make purchases, with Millennials and Gen Z more likely to prefer texting with a business at 41% and 40% respectively.
• Nearly all consumers surveyed, 98%, want to connect with businesses via their mobile devices, with appointment reminders (66%) and order notifications (65%) being the most common interactions.
• 30% of consumers expect to shop more through their mobile devices over the next 12 months, with 38% of men expecting to increase their mobile shopping compared to 27% of women.

In response to consumers’ growing preference for these commerce channels, 60% of business owners use mobile commerce to connect and sell to consumers, and another 20% are interested in doing so. Though some businesses are still learning how to navigate customer demand for mobile commerce, those leaning in are seeing returns.

• For the 97% of businesses using mobile commerce and reporting noticeable benefits, 53% cite they’re better able to manage customer relationships and 53% note they’re able to save time by automating their business.
• Younger businesses are leading the way as those who have been in business for less than 10 years, 68% are more likely to use mobile commerce. Comparably, companies that have been in business for 10 or more years are only 51% likely to use these technologies.

“Sellers continue to need powerful software that enables them to automate their business and meet the on-the-go needs of modern consumers,” said Saumil Mehta, Head of Point of Sale and E-Commerce at Square. “Mobile commerce technologies are a competitive advantage for merchants to leverage in order to stand out from the noise.”

With these findings in mind, Square continues to build advanced features for mobile commerce tools like Square Marketing, which offers SMS capabilities, and Square Messages, its conversational commerce platform with smart, AI-enabled capabilities. Through Square Messages, merchants are able to quickly and efficiently communicate with customers in a new, professional channel so they can better manage customer correspondences all in one place.

With more than 53M messages sent between sellers and buyers, Square Messages has seen a 3X increase in active merchants using the platform from the end of March 2021 to the end of August 2022. Square Messages has also proven to be a tool that works for merchants of any size and complexity as upmarket businesses represent nearly 20% of the active seller base.

Today, Square is announcing that within Square Messages, merchants have access to advanced AI messaging features. The first, Suggested Replies, saves sellers time by suggesting responses to a customer’s message, helping boost a buyer’s reply rate by 10%. Square Messages also launched Suggested Actions, giving businesses the ability to respond to buyers with one-click interactions, such as a prompt to send an invoice or payment link. To further bring customer correspondence into one place, which saves sellers time and increases sales, Square Messages recently integrated with social media platforms as well. Currently, 40% of inbound messages from social platform integrations are commerce-related, like inquiring about how to pick up an order or cost of services.

“Square Messages has become an essential part of our daily operations. It allows us to quickly correspond with customers regarding upcoming reservations, saving time and eliminating a lot of back and forth,” said JC Cutlip, Financial and Technical Services Director of Oasis Hot Tub Gardens, a multi-location business in greater Michigan. “Fewer and fewer people want to communicate verbally over the phone. Now, our staff can use Square Messages to quickly get a hold of customers, especially those of a demographic who prefer texting over a phone call.”

As Square Messages seamlessly integrates within Square’s ecosystem, merchants benefit from both lead generation and offering an exceptional customer experience by operating all within one platform. Additionally, Square Messages has helped businesses discover new tools within Square for a full suite of technology solutions. For example, 65% of sellers that used payment links in Square Messages were first time users of the feature.

For a full analysis of Square’s Growth of Mobile and Conversational Commerce Report, you can view the desktop version here and mobile version here.

Square Messages is free to use and currently available in the US and Canada. To learn more about Square Messages, please visit squareup.com/messages.

About Square

Square helps sellers more easily run and grow their businesses with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. Square is part of Block, Inc. (NYSE: SQ), a global technology company with a focus on financial services. For more information, visit www.squareup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928005305/en/

Media

press@squareup.com

Source: Block, Inc.

FAQ

What is Square's Growth of Mobile and Conversational Commerce Report about?

The report highlights that many businesses are not using mobile commerce technologies despite consumer demand, revealing that 40% are missing opportunities.

What percentage of consumers prefer mobile interactions with businesses?

According to the report, 98% of consumers want to connect with businesses via mobile devices.

How many businesses currently use mobile commerce according to Square?

The report states that 60% of businesses are currently using mobile commerce to connect with consumers.

What has been the impact of Square Messages on merchant communication?

Square Messages has seen a 3X increase in active merchants from March 2021 to August 2022, enhancing communication efficiency.

What features does Square Messages offer to improve customer interactions?

Square Messages includes AI-powered Suggested Replies and Suggested Actions to streamline responses and improve customer engagement.