Maximising revenue via mobile

511 views
459 views

Published on

A presentation MRS CTO Dan Hartveld gave at the 2010 Retail SystemsForum.

Published in: Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
511
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
24
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Maximising revenue via mobile

  1. 1. Maximising Customer Experience and Revenues Through Mobile Shopping Dan Hartveld CTO, Mobile Retail Solutions Former Mobile Lead, Ocado
  2. 2. Mobile Situation <ul><li>Apple App Store April 2010  </li></ul><ul><li>faberNovel – February 2010 </li></ul><ul><li>Large changes in mobile technology over the past 2 years </li></ul><ul><li>Cutting edge user interface & processor power, allows users to do the same things as on a PC and more! </li></ul><ul><li>Over 3 Million iPhones sold in the UK since launch June 2008 </li></ul><ul><ul><li>630% growth in sales, Q2 2009 </li></ul></ul><ul><ul><li>Other providers racing to catch up </li></ul></ul><ul><li>Downloadable ‘Apps’ allow users to do what they want even without internet access or in bad coverage </li></ul><ul><ul><li>6 out of the top 10 free iPhone apps are shopping apps 1 </li></ul></ul><ul><ul><li>8 out of the top 10 are retail related 1 </li></ul></ul><ul><ul><li>Each app receives 5 – 10,000 downloads a day 2 </li></ul></ul>
  3. 3. Mobile Situation <ul><li>15% of under 35’s already shop on their phone 1 </li></ul><ul><li>52% use their phone to research products, compare prices, find retailers 1 </li></ul><ul><li>More and more shopping apps are being released </li></ul><ul><ul><li>eBay - over $1bn in sales </li></ul></ul><ul><ul><li>Ocado </li></ul></ul><ul><ul><li>Net-A-Porter, Oasis, Next, Nike, Zara, Warehouse, Simply, Miss Sixty… </li></ul></ul>1. Retrevo.com March 2010
  4. 4. What is m-commerce? <ul><li>Customers buying products directly from their mobile phone. </li></ul><ul><li>(or other handheld device) </li></ul><ul><li>Constraints: </li></ul><ul><li>Small Screen Size </li></ul><ul><li>Restricted Keyboard Functionality </li></ul><ul><li>Bad Quality / Unreliable Connectivity </li></ul>Mobile App Mobile Website
  5. 5. What does M-Commerce Provide? <ul><li>New sales avenue to customers </li></ul><ul><li>Customers can shop whenever, wherever </li></ul><ul><li>Find & purchase items in seconds </li></ul><ul><li>Excellent for impulse / boredom shopping </li></ul><ul><li>Retail space with few competitors </li></ul><ul><li>Repeated advertisement to customer base </li></ul><ul><li>Enhanced customer experience </li></ul><ul><li>Excellent marketing tool </li></ul><ul><li>Free publicity </li></ul>
  6. 6. Reasons to go mobile <ul><li>Increased mobile internet usage (growing 8x faster than standard internet) </li></ul><ul><li>Increased exposure to customers </li></ul><ul><li>Keep up with competitors </li></ul><ul><li>Appeal to an affluent audience </li></ul><ul><li>Relatively low development cost </li></ul><ul><li>Increased sales </li></ul><ul><li>Opportunities to drive users into local stores </li></ul><ul><li>Appeal to comparison shoppers </li></ul><ul><li>More people have smartphones </li></ul><ul><li>Mobile commerce fits with your business model </li></ul>
  7. 7. Website or App? <ul><li>Pros: </li></ul><ul><li>Easily Discoverable </li></ul><ul><li>Higher Visibility </li></ul><ul><li>More Functionality </li></ul><ul><li>Increased User Experience </li></ul><ul><li>Customer Retention </li></ul><ul><li>Wow Factor (Publicity) </li></ul><ul><li>Cons: </li></ul><ul><li>More Costly than Website </li></ul><ul><li>1 App Per Phone Platform </li></ul><ul><li>Not Everyone Has An App-capable Phone </li></ul>Pros: Broader Reach Quick for 1-Time Access Easy to Update No 3 rd Party Approval Required Cons: Connectivity Dependent Slow & Awkward User Experience Mobile App Mobile Website
  8. 8. Case Study: Ocado On-The-Go <ul><li>iPhone App – Released July 2009 </li></ul><ul><li>100,000 people downloaded the App in the first quarter </li></ul><ul><li>30,000 were new, active customers </li></ul><ul><li>Takes over £350,000 per week in sales via mobile purchases </li></ul><ul><li>Continuous growth - Sales have grown by 140% in 9 months </li></ul><ul><li>£1M worth of advertising and publicity </li></ul><ul><li>4.5% of all sales </li></ul><ul><li>Faster than going to a supermarket </li></ul><ul><li>Add items as soon as you think of them </li></ul>
  9. 9. Apple TV Advert
  10. 10. Three Big Principles <ul><li>1 Minute Rule </li></ul><ul><ul><li>The user should be able to complete a journey through your app within 60 seconds. i.e. Start-Search-Purchase in under a minute. </li></ul></ul><ul><li>80:20 Rule </li></ul><ul><ul><li>80% of your user base will use only 20% of your website’s functionality. Optimize this 20% and hide (or don’t implement) the rest. </li></ul></ul><ul><li>No Manual Required </li></ul><ul><ul><li>Your user interface must be intuitive enough to use by just looking at it. </li></ul></ul>
  11. 11. Caching <ul><li>All 25,000 lines are stored on the phone (~5Mb compressed catalogue) </li></ul><ul><li>Connectivity is a varying scale </li></ul><ul><li>Cached data ensures fast user experience </li></ul><ul><li>‘ Data Snacking’ should be a major focus </li></ul>
  12. 12. Immersive & Visual Browsing <ul><li>Allow users to explore many products at once </li></ul><ul><li>Hide away ‘bulky’ functions & menus </li></ul>
  13. 13. Personalise <ul><li>Recommended products </li></ul><ul><li>‘ Instant’ shopping </li></ul><ul><li>Remember details, preferences / sizes </li></ul>
  14. 14. Unique App Functions <ul><li>Jotter – allows users to write a list so they can add items in seconds </li></ul><ul><li>Next Delivery Slot </li></ul><ul><li>Location aware functions </li></ul><ul><li>Address book connection </li></ul>
  15. 15. Seamless Integration <ul><li>Make your app reflect your site - they’ll be used together </li></ul><ul><li>Synchronize data where possible </li></ul><ul><li>Do everything you can, behind-the-scenes </li></ul>
  16. 16. Add Mobile to Your Marketing Strategy 1. faberNovel – February 2010 <ul><li>Discovery – Get into the charts </li></ul><ul><li>Short bursts of advertising and publicity </li></ul><ul><li>App Store Rating 1 : </li></ul><ul><li>Maximize exposure through social media </li></ul><ul><li>Give your mobile outlets a purpose </li></ul>
  17. 17. The Future? <ul><li>mCommerce is here to stay </li></ul><ul><li>By 2015, $119bn worth of goods and services will be purchased via a mobile phone. 8% of the total eCommerce market 1 </li></ul><ul><li>New ways of interacting with your customers are hitting the market all of the time - iPads, eReaders, Google Android, ‘iPhone Killer’ Mobiles </li></ul><ul><li>All devices will access your data in a similar way </li></ul><ul><li>Formulate a common strategy and user experience </li></ul><ul><li>Can’t do everything - target your customers </li></ul>1. ABI Research, Feb 2010
  18. 18. Thank You <ul><li>Any Questions? </li></ul>Presenter: Dan Hartveld [email_address] @mobileretail

×