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Maximising revenue via mobile

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

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

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