Mobile & Shopping – what's going on?

Shopping with your mobile

Agenda

• Methodology

• Executive Summary

• Understanding the Gap

• Consumers – v – Business

• Q&A

Methodology • There are always challenges when asking about the future so

we created a couple of scenarios based on a series of interviews with members of the DMA Mobile Council and other leading experts.

• We created an on-line survey where you saw a 2/3 minute film and then answered questions about it.

• 85% watched both films and completed the survey

• UK Survey – around 5500 responses – 3900 Consumers

– 1600 Professionals

Exec Summary There is a major gap between what Business

can deliver and what consumers want Consumers want to shop now

Businesses are not ready and are dragging their feet

Its going to be a more complex world to work

in, where many things break down and service will suffer

Executive Summary

Consumers –v – Business Understanding the Gap

Consumers Business Want it now Dragging their feet

Focus on Mobile Sites for Customer Acquisition Service Quality Issues

Want it free Where is the business case

Save me money Save me money

Security concerns Permission based Relevance

Unsure of the right strategy

Single Experience Channel by channel related activity

Consumers Business

“I use Facebook mobile to make

arrangements and get updates 3 or 4 times a day. I don’t

use email”

Consumers Want it now

31% of audience are currently accessing the internet by phone and this is expected to increase.

69% of them saying they used the mobile internet regularly. Growth in mobile usage of social networks is increasing with 35% saying that they often access Facebook from their mobiles

Smartphone sales increased in 2010 and expected to grow 23% over this year** 23 million people shopped via mobile last year*** 82% of shoppers say they want new services answered 6 separate positive indicators Even the current experience breaks down often 60% UK smartphone users

reported having issues with smartphone features

*Harris interactive Survey March 2011 Smartphones **IDC

***Glamoo,

Female - 35

Business Dragging their feet Focus on Mobile Sites for Customer Acquisition Service Quality Issues

“Things are getting more complicated every day with consumers wanting things that we are struggling to deliver and I hope I have found a new job before this stuff really takes over” - Call Centre Manager – Motor (350 seats) 42% say they have a mobile strategy today

82% are working on mobile sites & apps driven by marketing for customer acquisition for delivery over the next 36 months 94% have no end to end service assurance strategy

57% of organisations stated that they did not have a strategy for mobile today

14% say they have no plans to put a strategy in place 100% think that mobile services will change the way they do business

Business

Consumers Want it free

Consumers expect new services but are reluctant to pay for them.

87% not even from existing

suppliers

YES

NO

Skype posted a $7m operating loss

in 2010 but still sold for $8.5b

Facebook 0 (free application)

growing (230m users) and with zero data charge from 3UK and other

operators

Business Where is the business case

81% have not yet delivered a full mobile strategy business case 75% not sure how to deal with the cross channel impacts in writing a business case

47% of consumers who responded to mobile advertising went on to make some kind of purchase

The MMA and Lightspeed Research

All Contact Centre Managers expect call volumes & call lengths to change but have no basis yet for resources management

“Currently we are driven by Marketing not Customer Service. I expect that mobiles will completely change how contact centres work -we are just not thinking about it properly and have no baseline”…. Director Call Centres Major Insurer (1700 Seats)

Business Save me money

Consumers are very positive about the new services

Consumers Save me money

• Increasing appetite for mobile shopping services but on our own terms

– Relevant

– Secure

– Personal Data Protection

– Well thought out

– Working properly

– Saving time

– More convenient

– Free

Consumers What we want

“My biggest concern is that all this stuff won’t actually work properly

like the self service checkouts at the

supermarket and that my data will end up

being stolen”

Male - 25

QR Consumers

• New services are 18 -24 months away – Need to reengineer the customer contact strategy

– Focus on Customer acquisition more than service

– Drive to mobile marketing underway & linked to social media

– Mobile will have a significant impact on consumer behaviour over next 24 months but we have to understand how

– Save money

– Upsell more

– Increase First Time Resolution

– Increase Customer Satisfaction

• Monitoring quality is poor at the moment – No view of end to end monitoring quality

– Major challenge to deliver services that meet consumer expectation

Business What we can do

– Consumers have an appetite

– Concerns about security

– Want it now

– Downloading location based apps

– Think that is coming now

Consumers Business NFC

Near Field Communication

– Not enough handsets to deliver critical mass

– Concerns about Compliance

– Have not defined services or budgets

– Studying what is going on in Japan

“A single experience where companies remember all my transactions and it doesn’t matter if I used the website or found them on Facebook or phoned them they would treat me the same. I want to be spoken to with respect not talked down to like a child!”

Male 60

Consumers Business Customer Experience

“Bringing all of these so called multi-channel services together in the way that they have in other markets around the world seems like a big mountain to climb. Currently I am still trying to work out how to deal with Social Media and that’s tough enough”

Contact Centre Manager Central

Government (3500 seats)

Consumers The future of shopping over the next 3 years

Mobile Facebook & Google will play an increasing role in shopping as organisations drive more and more promotions onto the mobile web There will be an increased adoption of QR Code Marketing linked to mobile sites and to the display of product information NFC Chipped telephones & services will be ubiquitous Faster chips and larger storage capacity will continue the increasing trend for mobile to replace static PC’s Tablets like the i-pad will also become a standard communication tool in common use

Mobile phones have become a significant part of shopping over the last 2 years and will play an important role in shopping over the next 36 months Free services with increasing number of appropriate incentives will become common Mobile shopping will include a blend of new experiences including easy to use, remote ordering, self service, automated secure payment and personalised services Mobile will deliver shoppers an extended relationship that they demand with suppliers that will save time and be more convenient

Based on Consumer behaviour over the last 12 months and the responses in the survey

The future of shopping over the next 3 years

Flash technology based websites will challenged be by next generation mobile friendly web technologies such as HTML5

Almost all B2B & B2C organisations will have mobile web as standard within 36 months

New end to end assurance solutions will need to be developed quickly as assurance of service will become a key commercial advantage as consumer expectation continues to change

Faster chips and larger storage capacity will continue the increasing trend for mobile to replace static PC’s

The mobile shopper expected to be a key demographic over the next 36 months

Focused activity lags behind consumer demand but the pace of investment in this channel is increasing as dramatically successful results from the early adaptors such as Facebook, Amazon, M&S Tesco etc. continue to wow the market

Although not common place yet the use of automated self service & payment together with QR / Bar codes will have an increased role in lowering the cost of customer service and marketing promotion

Based on Business behaviour over the last 12 months and the responses in the survey

Business

Conclusions

There is significant momentum towards a revolution in shopping through the mobile and tablet underway and its impacted both business and consumers over the last 12 months but there is a gap between consumer expectation and business planning

Some of the services that are being designed really do have the wow factor

The opportunities for the delivery of more focused and personalised service is there but there are barriers on both sides in relation to the appropriate use of data, security & cost savings

Making this new world work, integrating it into the contact centre and other channels, producing the next generation of business cases and customer experience design, will inhibit the speed of innovation

Most consumers will be shopping with their mobile in some form regularly in 36 months

Business Consumers

Contact Info

For more information about the Customer Experience Foundation contact: Morris Pentel Customer Experience Foundation Tel: +44 (0) 7947 259818 Skype: mopentel Email: Morris.Pentel@cefstudies.org Visit our website: - www.customerexperiencefoundation.org Follow me on twitter - http://twitter.com/morrispentel