Maximising revenue via mobile


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

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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. 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