mobile retail

1351Presentation to Santa Clara University October 9, 2013

MOBILE RETAILOctober 9, 2013

Joanna Lee Augenbergsabout.me/joannajen415.425.5228


HELLOI’m Joanna. Let’s talk Mobile.


MY STORYA BIT ABOUT ME

MY BACKGROUNDB.S. Business Admin, UC

BerkeleyB.A. Mass Communications,

UC BerkeleyMBA, Tuck School of

Business at DartmouthWPP Inc.

Management Consulting

MY WORKDigital Media – social and

mobile Digital marketing

InnovationConsumer InsightsStrategic Planning

Business Development

MY PASSIONBrand Strategy

New media and TechnologySocial Systems and

StructuresTravel

TeachingOuter space & Under the

Sea


101Mobile Media


MOBILE IS BIGThe mobile market is substantially penetrated with

approximately 6 billion global mobile subscribers (that is roughly 87 percent of the world’s population)

MOBILE IS DISRUPTIVEThe mobile revolution is changing the way people think, feel and

behave. Your success (or failure) in mobile will determine the future of your brand and business.


AsiaMobile internet usage surpassed PC

EuropeAndroid dominates

ME&AFeature phones leapfrog PCs

sUS

Up to 140M Smartphone

LATAMLaggard market

WorldwideTablet shipments surpassed PCs


11.9%

4.5%

37.4%

19.2%

19.4%

DIGITAL LEADS, MOBILE SURPASSES PCMAJOR MEDIA: SHARE OF TIME SPENT PER DAY 2013


MEN ARE FROM MARS, WOMEN VENUSGENDER DIVISION AND IMPLICATIONS

smartphones35%

tablet10%

pc55%

smartphones50%tablet11%

pc39%

*Time spent online along US Internet users, April 2013


WITH REFLECTIONiPAD MASK

Important Information• By 2014, 208M tablets will

be sold worldwide*• 72% of tablet owners make

purchases from their devices on a weekly basis*• Tablets are not as mobile as

smartphones• Tablets are shared devices• Tablet owners demos are

older, more affluent• Design sites specifically to

take advantage of tablet touch screens, orientations, cameras, etc.; Build unique tablet experiences that use rich media and interaction


WITH REFLECTIONiPHONE MASK

Important Information• 87% of the global population

has a mobile phone• 50% of US mobile handsets are

smartphones• 30% of Facebook audience

comes solely from mobile• 60% of Twitter users log in via

mobile device• Apple changed the game but

Android is closing the gap• Mobile retail or mcommerce is

one of the fastest growing areas of mobile media


MOBILE ECOSYSTEMMOBILE CAN MEAN MANY THINGS TO MANY PEOPLE

Mobile

PoS& Payment Retail

Social & Search

Advertising& Mktng

Banking& Wallet

Platforms& Apps

Today we will focus on Mobile Retail but mobile media and technology encompass a large ecosystem of players and possibilities.


MOBILE RETAILNext-Gen Retail: Mobile and Beyond


mobile- NounFinding, discovering, browning, researching, bookmarking, price-checking, comparing, sharing, tracking OR purchasing goods, services and experiences – facilitated in whole or in part by mobile devices(also known as “mcommerce” or “tcommerce”)

shopping, retail, commerce


I’d like to store all my bank and credit card details securelyon my smartphone so I don’t have to worry about carrying

things with me. Why do I need a real wallet when

I could have a digital oneon my phone?

These days I use my laptop mostly at work – but my smartphone goes

everywhere with me. I can lookup information or buy something

the instant it occurs to me, wherever I happen to be then. Honestly, it’s hard to imagine

what life was like before.

A lot of shopping apps have too big of a footprint; they’re too clunky,

intrusive or ad-heavy relative to how much value they deliver. They

need to offer an experience thatjustifies taking up storage

space on my phone.

I’m definitely more efficient. Shopping is just sort of

a background process that’s always running. And I find cool,

niche items that would’ve taken me forever to come

across normally – with way lessstress and virtually no

time wasted.

source: Latitude, December 2012


MOBILE IS FOR MORE THAN JUST OTG

at home

watching TV

on-the-go

commuting/ traveling

in a store

at work

77.00%

59.00%

51.00%

45.00%

36.00%

35.00%

62.00%

60.00%

66.00%

68.00%

65.00%

57.00%

87.00%

77.00%

26.00%

42.00%

21.00%

32.00%

dual owners using tablets dual owners using smartphones smartphone owners using smartphones

IN WHICH SITUATIONS DO YOU USE A MOBILE DEVICE TO SHOP OR MAKE PURCHASE?



ACCORDING TO EMARKETER, SALES IN 2013 FROM MOBILE DEVICES - INCLUDING TABLETS - ARE

EXPECTED TO EXCEED $41 BILLION IN THE UNITED STATES, APPROXIMATELY 16% OF ALL AMERICAN

ECOMMERCE PURCHASES


MOBILE RETAILIntegrating Mobile into Omnichannel Strategy


FRAMEWORKSTAGES OF MULTICHANNEL RETAIL EVOLUTION

CreatePresence

0Align

Fundamentals

1Achieve

Proficiency

2OptimizeOperating

Model

4Leverage

AcrossChannels

3


Create PresenceWHAT ARE YOU WAITING FOR?


63% expect to do more shopping on

mobile devices over the nextcouple of years

2 out of 5have more “me” timeor feel more relaxed.

thanks to being able to shop with mobile devices

60% have used a mobile

device while shoppingIn a store

51%feel very comfortable

making purchases from their mobile devices

80%would be interestedIn a mobile wallet

61%have a better opinionof brands when theyoffer a good mobile

experience



STAGE 0• The goal here is to just BE PRESENT. According to Google:– 85% of smartphone users have searched for local info (and 81% of those have taken

as a result, i.e. visited in person, called a business after searching)– 57% of users say they won’t recommend a business with a poorly designed mobile

site and 40% have turned to a competitors site after a bad mobile experience• Depending on your business, value proposition and relationship with

consumers, your options are:– Build a mobile site– Develop a branded mobile app– Create mobile ads/ creative– Initiate SMS campaign/ program– Leverage SoLoMo partnerships like foursquare– Some combination of the above

• At this stage, awareness and reach metrics to measure include app downloads, site visits, eyeballs/ frequency, check-ins, etc.

CREATE PRESENCE


Align FundamentalsUNDERSTAND TARGET AUDIENCE


STAGE 1• Do your homework; Know your audience. This objective of this stage

is to conduct extensive research on your target market and what they want/ need from mobile platforms:– Who are your customers and who are you trying to reach? – Who will want to engage with your mobile content? – What needs does your audience have?– Why do your customers need information from you in a timely manner? – How will your target audience access your mobile content (which type of handheld

device)?– How will they use your content in their daily lives? – How will you make your mobile content sticky and engaging?

• Brands and businesses should use multiple mobile touch points to connect with consumers on their path to purchase

• Engagement and favorability metrics to measure at this stage include customer feedback (insights), time spent, user reviews, photo/ video uploads, etc.

ALIGN FUNDAMENTALS


Case StudyShopkick is free and available on iPhone and Android devices. When guests walk into their Target store, Shopkick rewards them with “kicks” points. Then as guests shop the store, they have the opportunity to scan products for additional kicks. Kicks can be redeemed for Target gift cards, Facebook credits, dining gift certificates, iTunes downloads, donations to charities, and more. Guests can also receive special in-store deals including coupons and discounts.

Shopkick and Target


Achieve ProficiencySTRATEGY AND SCALE


STAGE 2• The goal of this stage is to achieve operational proficiency and gain scale

in the new channel.• Mobile should be viewed as both a channel and a touch point to incent/

ease purchase, engage customers and deliver relevant, personalized, real-time communications.

• Mobile challenges include:– Scale (in the short term)– User insights are often less accessible– Mobile data is complex– Steep learning curve

• Efficiency metrics to measure include opt-in rates, cost per download/ acquisition, increased foot-traffic, increased basket size, monthly per user visits, in-app clickstream and analytics, etc.

• Can you name a retailer who has built a well-designed app or mobile website that helps to achieve operational efficiency and/or gained scale in mobile channel?

ACHIEVE PROFICIENCY


Case StudyDomino’s mobile app lets customers order more than 1.8B pizza combinations from anywhere and follow their order’s step-by-step progress with the Domino’s Live Pizza Tracker.

Domino’s Pizza


HAVING A MOBILE APP IS NOT THE SAME AS HAVING

A MOBILE STRATEGY


Leverage MobileINTEGRATE ACROSS CHANNELS


STAGE 3• The objective of this stage is to continue reducing costs, increasing

effectiveness and to deploy assets or capabilities developed in mobile into other channels.

• Opportunity lost:– Poor and inconsistent customer experiences, marked largely by a lack of cross-channel

integration, amounts to about $83 billion in lost sales in the U.S. each year, according to a new survey from IBM.

– 49% of US consumers believe the best thing that retailers can do to improve the shopping experience is to better integrate in-store, online and mobile shopping channels, details a survey conducted by Accenture.

– That same Accenture study showed 53% of consumers want to receive unique pricing, automatic discounts, free returns, or pre-sales based on their loyalty/purchase history – across all channels. Similarly, 53% want to be able to earn and use their loyalty rewards in-store, online or on a mobile device.

• Integration metrics to measure include creative content reuse, mobile coupon redemption, SMS click through/ redemption rates, barcode scans, mcommerce checkouts or purchase transactions, etc.

• Can you think of a retailer who has integrated mobile across channels well?

LEVERAGE ACROSS CHANNELS


Case StudyThe Starbucks app generates customer loyalty and drives customer transactions by letting more than 1M coffee-drinking smartphone users locate stores, scan barcodes at PoS, reload their Starbucks Cards and share their locations and favorite drinks via social networks.

Starbucks


OPTIMIZE MODELTAKE TO ENTERPRISE LEVEL


STAGE 4• In this final stage, the objective is to optimize operating models at the

enterprise level.• Mobile needs to be viewed as a priority from the senior levels down.

Here are some questions your organization should be asking:– Is mobile a key metric in your management dashboard?– How often do you review your mobile stats and who is accountable/ responsible?– Who owns mobile analytics and insights? Who’s watching tablet traffic trends,

consumers’ actions on your mobile site, mobile’s inclusion in product launches and campaigns?

– Which decisions would change if key business leaders were given timely mobile data?

– Who monitor your competitions investment and activities in mobile?• Optimization metrics to measure include ROI, customer lifetime value,

YoY mobile budget, user segmentation, time to first mobile conversion/ purchase, etc.

• Pick a company and think how they could better integrate mobile into their channel strategy. How would you optimize mobile for this retailer/ business?

OPTIMIZE THE OPERATING MODEL


Case StudyNordstrom is widely praised in the retail community for experimenting and adopting mobile technology. Not only are iPads available in-store, the mobile app combines commerce, customer service and cross-channel engagement by letting consumers buy products, curate looks, create a wish list, venture in-store for events, call customer service and share their favorite items with their friends via social networks and sms/ email. For Nordstrom, mobile is not just a retail channel or customer touch point. They have progressed to the final stage of retail evolution and begun optimizing the entire enterprise for mobile. Nordstrom senior executives have committed over $150M in back-end infrastructure improvements to better support mobile initiatives and m/tcommerce.

Nordstrom


MOBILE ANALYTICSMetrics and Measurement


MOBILE ANALYTICS• Mobile ROI is the elephant in the room…• AND It’s the primary factor preventing mobile from fulfilling its

promise.

• Digital marketing is renowned for its ability to track and quantify every click and conversion. However, mobile is still a new platform and newer media tactics never get the same rigorous analytics as traditional ones. Moreover the fragmented mobile landscape (OS, manufacturer, app versus web, etc.) and inability to cookie mobile devices further complicates measurement. What’s more, the models we rely on don’t always work for mobile.

THE SITUATION


MOBILE PATH TO PURCHASE(ILLUSTRATION)

Locate store on smartphone

Visit store Do a quick price comparison with her

bar scanner app

Look at competitor sites

Either buy online or pay at physical

register


The traditional model of calculating ROI simply doesn’t

work. There’s a significant loss of data as she moves between

multiple devices and real-world touch points.

We need to develop a NEW model that addresses this problem by

building on what we know about the desktop Web, mobile devices

and consumer purchasing behavior.


FOR EXAMPLE(FOLLOW THE REASONING)

Product details viewed on a smartphone are far more likely to be viewed in-store when the consumer is closer to making a decision, elevating the value of that action

Likewise, it’s logical that a higher percentage of customers requesting store-locator information on a smartphone will visit that store

Assume a reasonable conversion number and average shopping cart value, and you start to have a high-level approximation of value.


https://www.youtube.com/watch?v=EdCFxNvuvSI%23action=share


MOBILE ANALYTICSSample metrics


What is it? Why it matters?

Calculation Sample How to improve

User acquisition cost

This metric will show you exactly how much money you are spending to get one mobile customer.

Compare this number with your other marketing efforts to see how much you are spending to acquire customers.

Total Cost Of Mobile App: $5,000

Number Of App Users: 1,000

$5,000 / 1,000 App Users =$5 Per New Mobile Customer

The more users that download your app, the lower the acquisition cost. Continuously market your app to customers to ensure you continue getting new downloads.

Percent of new leads

This calculation will help you determine how many of your leads were generated from mobile.

Knowing how many leads came from a specific place will help you decide where to focus marketing efforts.

Total New Leads Per Month: 500

Mobile App Leads Per Month: 50Mobile site Leads Per Month: 50

500 Leads / 100 Mobile Leads =20% Of All Leads Were From Mobile

Put items in your app that are redeemable. Making these time sensitive can sometimes encourage immediate action from customers. Ensure the offer is interesting and worthwhile.

User retention rate

You can use this number to see how many customers are coming back to your app (after downloading it).

If customers only use your app only once, you need to know that so you can figure out why then fix the problem.

Number Of App Requests: 20,000

Number Of App Users: 1,000

20,000 Requests/ 1,000 App Users=Average 20 Requests Per User

(the same can be calculated for unique versus repeat mobile web visitors)

You need to make sure your app has great content to begin with, but also refreshing that content and giving users a reason to come back is very important in building mobile loyalty.

Percent of mobile influenced customers

Use this calculation to see how many of your customers made a purchase because of your mobile efforts.

This metric will further help you understand the buying behavior of customers and which ones are using mobile.

Total New Customers Per Month: 200

Customer Who Used Your App: 20Customer Who Used Mobile Web: 20

200 Customers / 40 Mobile Users =20% Were Influenced By Mobile

Like the first metric, you must increase your app awareness. Possibly launch a ongoing marketing camping to ensure all your new and loyal customers are in the know.


MEASURESpecify metrics,

collect data, track and adjust

MOBILE TIMELINEFOR EXECUTION OF STRATEGIC IMPERATIVES

STRATEGYDeliver the right

content to the right person at the right

time

TRIALDon’t be shy

USERSDo your

homework

INTEGRATEDon’t let mobile sit in

a silo

OPTIMIZEChange the model


MOBILE ECOSYSTEMMOBILE CAN MEAN MANY THINGS TO MANY PEOPLE

Mobile

PoS& Payment Retail

Social & Search

Advertising& Mktng

Banking& Wallet

Platforms& Apps

Today we will focus on Mobile Retail but mobile media and technology encompass a large ecosystem of players and possibilities.


BACK TO THE BIG PICTURE…What are other opportunities in mobile that you can think of?


THANK YOU


Q&A

mobile retail

Documents

mobile device

mobile click4mobile

mobile banking

mobile surpassed desktops

worlds population mobile

bigthe mobile market

global mobile subscribers

santa clara university