trends & best practices: mobile and the in … · trends & best practices: mobile and the...

WINTER 2016

TRENDS & BEST PRACTICES:

MOBILE AND THE IN-STORE EXPERIENCE IN RETAIL

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

MACRO TRENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

SHIFT THE EXPERIENCE . . . . . . . . . . . . . . . . . . . . . . 26

STORE MODE . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

2 | Trends & Best Practices: Mobile In-Store Experiences In Retail

CONTENTS

Over the past six months, we have spent a lot of time exploring

mobile as it relates to the in-store experience at brick and mortar

retailers today—from the customer’s point of view.

We spoke to executives at major U.S. retailers who expressed their

interest in providing enhanced in-store experiences to shoppers via

mobile devices—and recognized the potential that those devices

hold—but struggled to understand what their shoppers really wanted

and needed, and what might ultimately impact their bottom line.

With this is mind, we set out to provide retailers with information,

insights and expertise around mobile in-store experiences that

would align with their business goals. To accomplish this, we did

three things. First, we fielded an original survey to understand what

shoppers want out of a mobile in-store experience. Second, we built

a Mobile Maturity Model to help retailers recognize what they are

providing their shoppers today. And finally, we performed over 100

evaluations of mobile in-store experiences currently available at

major retailers across the country.

Our survey findings uncovered that 82% of high-income shoppers

said an improved mobile in-store experience would make the

shopping experience better. And 74% of millennials said they would

actually spend more money at a store that provided an improved in-

store experience on mobile.

We believe that mobile in-store experiences have the ability to transform the industry.If you’d like to see the full summary of our survey results or our

Mobile Maturity Model, you can download them here. In addition to

those resources, the results from all of the retail assessments we

conducted are posted online, here.

Throughout this process and evaluation, we have seen several trends

and best practices emerge. That’s what we’ve outlined here—and we

look forward to seeing what the rest of 2016 holds.

INTRODUCTION


www.dminc.com/retail-mobility

LIQUID EXPECTATIONS As today’s consumers engage with brands that provide seamless

user experiences (like Uber, where your ride comes to you and

is paid for in a simple click), they are beginning to expect the

same level of ease, simplicity and delight from every brand

they interact with. Brands that do not

meet these expectations will see their

customers quickly move on to other

brands that do.

Compared to established and complex

companies, startups are at an advantage

for delivering these seamless user

experiences. Many established retailers

are struggling to adapt to these new

expectations.

Screenshot taken February 8, 2016

RECOMMENDATIONS & PERSONALIZATION

As technology gets more advanced and the ability to access

and understand vast amounts of data increases, the ease at

which brands are able to customize content,

recommendations and more also increases.

Consider Netflix, where 75% of content

viewed is actually recommended to the user

via Netflix’s powerful algorithm. Or Stitch

Fix, where 100% of products purchased

are recommended via a combination of big

data and human intelligence. But when you

consider brick and mortar retail stores, there is

little to no personalization or recommendation

that occurs between the brand and the in-

store shopper. In the year ahead, we believe

growing expectations for customization of

product assortments and experiences will

drive retailers to focus on increasing in-store

personalization. This personalization will be

best delivered via consumer mobile devices

and associate clienteling applications.

MACRO TRENDS


UNDER UTILIZED

CONSUMER MOBILE DEVICES ARE THE SINGLE MOST

TECHNOLOGY IN BRICK AND MORTAR STORES TODAY.


Brick and mortar is in the midst of dramatic transformation. How to

stay relevant and justify the costs of physical locations in a world that’s

increasingly digital? The opportunity exists to leverage the devices currently

used only for ecommerce to help transform the in-store shopping experience.

Retailers can harness the value of mobile technology to help the in-store

experience feel more like the online experience, making it more relevant to

today’s connected consumer.

FROM UNGUIDED > Impersonal

> Dependent on the Store Hours

> Waiting in Line

> Dependent on Store Associate Guidance

TO GUIDED > Welcoming

> Personalized

> Empowering

> Convenient

> Shareable

> Relevant


SHIFT THE EXPERIENCE

STORE MODE2016 WILL BE THE YEAR OF


OUR PREDICTION FOR 2016After reviewing and scoring 100 top U.S. retailers on the

mobile in-store experiences they are providing to their

customers, several trends and standout applications

emerged. The majority of retailers who scored highest on our

assessment were working towards something referred to as

“Store Mode.” In addition to offering ecommerce functionality

through an app, these retailers unlock additional features

when a shopper is in one of their physical stores. This is

designed to aid and improve the in-store shopping experience.

Whether these features are housed in a completely separate

app, or are built on top of the ecommerce application, we

believe this is a strong solution for achieving the in-store

experience shoppers want. If done thoughtfully, these

enhancements have the power to reverse the declining

in-store sales retailers are struggling with today.

WHAT IT WILL INCLUDEOur survey research unveiled the six key areas shoppers find

most valuable and feel would improve their in-store shopping

experience if available. They are:

> PRICING

> PERSONALIZATION

> INVENTORY

> STORE GUIDANCE

> REVIEWS & ADVICE

> REWARDS & CHECKOUT

This report will outline retailers who have had success

implementing functionality within these categories.

The scores and reports on each of the 100 brands we

evaluated are available on our website:

dminc.com/study-retailers

STORE MODE


WALMARTWalmart makes checking the price of an item, comparing the price to other products, identifying the savings Walmart provides and taking advantage of their price guarantee seamless and pleasant. As the world’s leading retailer, whose business model is centered around discounts, it’s no surprise they have invested in making this component of their app flawless.

TAKEAWAY: Inform your shopper how to save the most—simply & easily.

Screenshot taken October 7, 2015

Customers want the ability to easily look up or compare pricing. They also want to see pricing that is specific to them.

STORE MODEPRICING

HOME DEPOTHome Depot has linked in-store advertising, promotions and discounts with its inventory via mobile. When viewing a specific item within the application, the sale price matches what the store is offering. Home Depot also has a barcode scanner, which makes it simple for shoppers to view product and pricing information. Home Depot’s app also helps shoppers locate items inside their preferred store and allows users to compare products side-by-side.

TAKEAWAY: Provide consistent pricing across channels and make it easy to compare similar products. Screenshot taken January 27, 2016


STORE MODEINVENTORYCustomers want the ability to check inventory at nearby stores and online, so they can take action based on that information.

AMERICAN EAGLEAmerican Eagle is one of the only retailers that allowed its shoppers to reserve items via its mobile app in specific physical locations—giving them the power to try on and purchase an item at the their convenience. The link between specific store location and inventory was impressive, and any technological gaps in inventory are buffered by an SMS texting confirmation program.

TAKEAWAY: Technology might not be perfect—implement confirmation layers to ensure customer satisfaction.

Screenshot taken November 6, 2015

WALGREENSWalgreens’ app allows shoppers to see whether or not a specific location has an item in stock. The barcode scanning feature provides in-store pricing and inventory information, with a seamless connection to online inventory and price information.

TAKEAWAY: Strive for seamless connection between in-store and online inventory. Screenshot taken December 1, 2015


STORE MODEREVIEWS & ADVICE

SEPHORASephora is one of the few retailers beginning to use Store Mode. With a wide variety of products for sale, Sephora offers a significant amount of content, including suggestions and robust product reviews. One thing that sets Sephora apart from the rest is their “IQ” feature. With fragrance, color and skincare IQ, they use technology to help shoppers understand their products, as well as find new products based on their preferences and complexion.

TAKEAWAY: Use preferences and data to help drive shoppers to new product selections. Screenshot taken January 27, 2016

SAKS FIFTH AVENUESaks does a nice job of making product reviews readily available and readable, as well as supplementing product information with video content. For example, when viewing a shoe, shoppers are able to watch a 360° video of the shoe, or dive deeper into related content, like a video about the designer or brand.

TAKEAWAY: Know your audience and give them more information about whatever is important to their decision-making process.

Screenshot taken December 1, 2015

Customers want easy access to product/brand information, customer reviews and even varying degrees of “expert” advice.


STORE MODEPERSONALIZATIONCustomers want their shopping experience tailored to them based on their profiles and past behavior.

NORDSTROMNordstrom’s app provides product suggestions, recommendations and “inspiration” based on past purchases and items on a shopper’s wish list. The retailer does a good job of making the app feel personalized and help its shoppers dive deeper into Nordstrom’s wide variety of inventory.

TAKEAWAY: Use information you already have about users to provide recommendations and content.

Screenshot taken January 26, 2016

KOHL’SKohl’s was the only retailer we reviewed that prompted users to unlock “Store Tools” when approaching a physical store. When shoppers open the app while in-store, they are again encouraged to use Store Tools to enhance their experience.

TAKEAWAY: Know when your shoppers are in your store and guide them to a better experience. Screenshot taken December 1, 2015


STORE MODESTORE GUIDANCECustomers want the in-store experience to be more like the online experience, with plenty of guidance for maximum efficiency.

NEIMAN MARCUSThe robust directory and contact system featured in Neiman Marcus’ mobile app is a unique and desirable feature, especially for its target audience of high-income shoppers. While this feature is not specific to the in-store shopping experience, it allows customers to contact experts (via phone, text, email or FaceTime) for assistance at any time.

TAKEAWAY: Give customers easy, convenient access to experts and customer service reps.

Screenshot taken November 5, 2015

TARGETTarget provides the best store guidance functionality of any retailer we have seen to date. Items you add to your shopping list are automatically connected to inventory, along with a map of the store closest to a user at any given time—no zip code input needed.

TAKEAWAY: Help shoppers quickly and easily find exactly what they’re looking for nearby.Screenshot taken December 1, 2015


STORE MODEREWARDS & CHECKOUTCustomers want shorter checkout and return lines, as well as straightforward, automated loyalty programs.

WALGREENSWalgreens is included again, since its loyalty program does a fantastic job of visualizing points and making rewards easy for shoppers to redeem. The Balance Rewards Summary lets shoppers know how much more they need to spend in order to earn rewards or discounts.

TAKEAWAY: Make rewards programs easy to understand and have users work towards goals.

Screenshot taken October 5, 2015

GIANT Giant Foods’ “Scan It!” app was designed to provide the ultimate in-store grocery shopping experience. This app allows shoppers to walk around the store, scan items they add to their cart, and check themselves out. This is one of the best, most tailored experiences we have seen to date.

TAKEAWAY: Reduce as much friction as possible between browsing and checkout. Screenshot taken February 8, 2016


FOR MORE INFORMATION AND ADDITIONAL RESOURCES, PLEASE VISIT DMINC.COM/RETAIL-MOBILITY

CONTACT US TO LEARN MORE:SALES@DMINC .COM | DMINC .COM

Throughout 2015, retailers made significant strides in providing their shoppers with valuable mobile experiences. However, it will be important for retailers to understand whether or not those improvements are affecting the bottom line.

Mobile in-store experiences have the potential to enhance the shopping experience and increase sales. The mobile channel serves as a complement to other digital and ecommerce channels, which are designed for shoppers at home or on the go. As retailers move deeper into the space, they’ll need to design in-store experiences that align with the needs of their particular customers. It is critical to know which segment of your audience you are building these experiences for, and then build for that segment, rather than any shopper you may attract. This will be key to driving usage, engagement and business results.

Mobile will unlock a richer, more streamlined shopping experience in 2016—if retailers approach it thoughtfully.

CONCLUSION

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