Mobilizing The Shopping Experience: Tips for Building Relevant mCommerce Relationships

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This webinar is designed to help retailers move off the sidelines offering how-to tips for: …

This webinar is designed to help retailers move off the sidelines offering how-to tips for:

* Getting started with mobile
* Getting buy-in for mobile apps in the store

Industry analysts have predicted that retailers that get in early and learn what their customers want from their mobile experience will drive the evolutionary curve of mobile shopping. Those who sit on the sidelines watching will quickly find themselves too far behind to catch up with any competitively differentiating capabilities.

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  • 1. Your GoToWebinar Attendee Viewer is made of 2 parts: 1. Viewer Window 2. Control Panel Type your question here
  • 2. John  Stelzer   Director Retail Industry Marketing   Sterling Commerce an IBM Company Andrew  Gaffney   Editor Retail TouchPoints  
  • 3. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 4 © 2010 IBM Corporation
  • 4. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 5 © 2010 IBM Corporation
  • 5. Mobile Phone Penetration Is Extensive 82% Of U.S. adults own mobile phones1 96% Of multi-channel consumers own mobile phones2 234 million U.S. consumers ages 13 and older used mobile devices in Q2, 20103 1 Source: Pew Research Center’s Internet & American Life Project and The Nielsen Co. survey: April 29-May 30, 2010 2 Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 3 Source: US Consumer Survey; The Nielsen Co.; July 2010 6 © 2010 IBM Corporation
  • 6. Smartphones Are A Significant Portion Of Mobile Phone Usage 53.4 million U.S. consumers own smartphones1 Smartphone Ownership2 46% 54% Own A Smartphone Plan To Buy A Smartphone 1 Source: US Consumer Survey; The Nielsen Co.; July 2010 2 Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 7 © 2010 IBM Corporation
  • 7. And, Smartphone Adoption Is Accelerating Source: eMarketer Inc. Source: The Nielsen Co. 8 © 2010 IBM Corporation
  • 8. John Stelzer – Director Retail Industry Marketing 09/22/10 Mobilizing The Shopping Experience Editable Text Editable Text Editable Text © 2010 IBM Corporation
  • 9. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 10 © 2010 IBM Corporation
  • 10. Retailers Are Rapidly Embracing The New Mobile Channel 73% 20% Of U.S. retailers are in the Of U.S. retailers have some process of evaluating the mobile type of mobile initiative in place channel   10% Have already widely implemented a strategy   24% Are expanding their strategy rapidly   39% Are in pilot programs   20% Are evaluating their mobile strategy   7% Do not currently plan to pursue a strategy Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 11 © 2010 IBM Corporation
  • 11. The Revenue Contribution Of The Mobile Channel Will Grow Rapidly $23.8 billion Projected U.S. mCommerce revenue (in 2015) 8.5% Of all U.S. eCommerce revenues (in 2015) 20% Of global mobile commerce revenues (in 2015) Source: Coda Research Consultancy & ABI Research 12 © 2010 IBM Corporation
  • 12. Mobile Sites Are A Common Approach For Retailers Embracing mCommerce Deployment Of Mobile Retail Sites Mobile24% sites retail 36% Deployed Plan To Deploy < 1 Year 40% Not Planning To Deploy < 1Year Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 13 © 2010 IBM Corporation
  • 13. The Majority Of Retailer Mobile Tactics Are Focused On Selling What mobile tactics are you using today and planning to use in one year? Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 14 © 2010 IBM Corporation
  • 14. And, Planned Retail Mobile Investments Are Focused On Selling Where are you focusing the bulk of your spending on mobile initiatives? Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 15 © 2010 IBM Corporation
  • 15. But, Retailers’ Top Reasons For Pursuing The Mobile Space Are Quite Different What are the main factors that drive your mobile channel efforts? Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 16 © 2010 IBM Corporation
  • 16. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 17 © 2010 IBM Corporation
  • 17. Consumers’ Current Uses Of Mobile Phones Provide Insight Into Their Preferences For Mobile App/Site Capabilities Source: Internet Retailer; September, 2010 18 © 2010 IBM Corporation
  • 18. Consumers Are Increasingly Adopting And Using Mobile Apps The average adult mobile phone user has 18 apps on their phone1 Average Apps Per Smartphone User2 Dec. 2009 Aug. 2010 iPhone 37 40 Android 22 25 Blackberry 10 14 1 Source: Pew Research Center’s Internet & American Life Project and The Nielsen Co. survey: April 29-May 30, 2010 2 Source: The Nielsen Company Apps Playbook; Sep. 2010 19 © 2010 IBM Corporation
  • 19. The Most Popular Consumer App Downloads Signal Consumer Preferences For Further Smartphone Use Entertainment Convenience Shopping Shopping Source: The Nielsen Company 20 © 2010 IBM Corporation
  • 20. Even When Focused On “Shopping” Capabilities, Consumers Want Convenience Capabilities Over The Ability To Purchase A Product 44% 46% 36% 17% Coupons Find A View Info Compare Store On Phone Prices A recent Compete study found that product research (price comparison, reading ratings and reviews) was the most common mobile shopping-related activity conducted by smartphone users.1 Source: ROI Research, Inc. & Microsoft, “Future of Mobile”, Nov. 2009 1 Source: Read Write Web; “More Smartphone Users Now Use Their Phones to Shop Online”; 1/4/10 21 © 2010 IBM Corporation
  • 21. Most Consumers Are Still Not Comfortable Purchasing Products Using Their Mobile Phones 69% Are not comfortable making a purchase on their mobile phone. Top 5 Inhibitors To Purchasing More Via Mobile Phones 1. Cannot connect to the internet with my mobile phone   40%   2. Difficult to use, because the screen is too small   34%   3. Difficult to visualize what the product looks like   31%   4. I don't think it's secure   28%   5. Interacting with the retailer's website via the mobile phone is too slow   22%   Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 22 © 2010 IBM Corporation
  • 22. Interestingly, All Solutions For Removing Increased Purchase Adoption Impediments Were Security Based Top 5 Changes That Would Make You More Comfortable Making Purchases Via Mobile Phones 1. Option of using PayPal   45%   2. Knowing that the mobile phone app does not store your credit card information   39%   3. Mobile phone only shows a truncated credit card number (only shows last 4 digits 23%   online & on the mobile phone   4. Being asked to provide your 3-digit security number on your credit card when 22%   paying with a credit card   5. Viewing the retailer app's security policy   20%   Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 23 © 2010 IBM Corporation
  • 23. Consumers Showed Interestingly Different Inclinations To Purchase Via Mobile Phones Based On The Mobile Platform Used 267% Increased incidence of an iPhone user using their device for mobile shopping more than any other smartphone user Source: The Yankee Group Research 24 © 2010 IBM Corporation
  • 24. As Interested In Selling Via The Mobile Channel As Retailers Are, It’s Important To Note That Consumers Do Not Want To Be Sold To How comfortable are you having retailers send you advertising/promotions via your mobile phone? Receiving Proactive Promotions 30% Not Comfortable 70% Comfortable Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 25 © 2010 IBM Corporation
  • 25. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 26 © 2010 IBM Corporation
  • 26. Consumers Are Clear About What Would Incent Them To Use Retailer Mobile Apps/Sites More Frequently Top 6 Capabilities Consumers Would Most Like To See In A Branded Retailer Mobile App 1. Look up and verify product availability at a particular store location   62%   2. Ability to look up the price of an item while in the store   57%   3. Find nearest store location   49%   4. Ability of retailer to proactively notify you via your mobile phone about the status of 48%   outstanding orders   5. Ability to locate an OOS item at an in-stock location, purchase it, and have it 46%   shipped to you or held for pickup   6. Ability to access user product reviews while in the store   46%   Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 27 © 2010 IBM Corporation
  • 27. And, Consumers Expect Seamless Integration Between The New Mobile Channel And Retailers’ Existing Channels To what extent do you expect consistent shopping and brand experiences across the various channels that you can shop for a certain retailer (e.g., Web, store, call center, and mobile)? Expect A Seamless Experience 15% Expect A Seamless Cross-Channel Experience 85% Do Not Expect Channels To Be Integrated Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 28 © 2010 IBM Corporation
  • 28. This Is Very Troubling Given How Few Retailers Have Completely Integrated Their Mobile Channel With Their Other Channels Source: Forbes Insights; “Retail’s Mobility Imperative – A Measured Approach To The Emerging Channel”; April, 2010 29 © 2010 IBM Corporation
  • 29. Balancing Consumer Preferences With Retail Objectives Is Critical To Consumer Adoption Of Mobile Retail Offerings Customer Increased Convenience Sales 30 © 2010 IBM Corporation
  • 30. Agenda Proliferation Of Mobile Phone Usage How Retailers Want To Use Mobile Access To Consumers How Consumers Want To Use Their Mobile Phones How To Bridge The Gap Between Retailer Goals And Consumer Preferences A Sample Scenario For Bridging The Gap 31 © 2010 IBM Corporation
  • 31. Retailers Have An Opportunity To Apply Mobile Capabilities To “Kill Two Birds With One Stone” Question • What everyday occurrence in the world of retail brick-and- mortar business offers an opportunity to apply mobile capabilities to: 1.  Speak to retailers’ objectives to use the mobile channel to increase sales and 2.  Enable retailers to address consumers’ preferences for increased convenience via mobile capabilities? Answer •  Recovering from—or avoiding—stock-outs 32 © 2010 IBM Corporation
  • 32. Retail Out Of Stocks (OOSs) Remain A Significant Scourge To Consumers   Consumers experience OOS on 17.8% of their shopping trips 1   The average consumer spends 20% of each shopping trip looking for—or waiting for store associates who are looking for—out-of-stock items 2   53% of consumers admit that they consciously shop at fewer retailers courtesy of current economic conditions 3 –  But, the retailers with whom they still shop are the ones with which they feel the greatest loyalty 3   Upon experiencing a stock-out4 –  1 in 3 consumers frequently leave the store without purchasing additional items (1 in 10 always do this) –  1 in 3 consumers frequently leave without purchasing any items –  43% leave the store and look for the item at a competitor –  33% purchase the item at the competitor –  40% of affected consumers will make fewer trips to the OOS retailer (chain wide) 1 Source: IHL Group “What’s The Deal With Out-Of-Stocks”; 2008 2 Source: “A Comprehensive Guide To Retail Out-of-Stock Reduction In the Fast-Moving Consumer Goods Industry”; Thomas W. Gruen, Ph.D. and Dr. Daniel Corsten; 2008 3 Source: Fleishman-Hillard Research Survey, “The Multi-Channel Shopping Experience”; January 2009 4 Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 33 © 2010 IBM Corporation
  • 33. Recall Clues That Consumer Preferences Provided Regarding Avoiding—Or Recovering From—The Inconvenience Of Retail OOSs   How consumers would prefer to use mobile capabilities while shopping: –  #3 Preference: Verify item availability in stores (26%)   Most important use of mobile phones while shopping –  #1 Preference: Checking product in-stock availability (28%)   Top 6 capabilities consumers would most like to see in a retailer-specific mobile app/site: –  #1 Preference: Look up and verify product availability at a particular store (62%)   Importance of being able to determine in-stock availability of product –  66% consider it Important to Very Important   Ability of a retailer’s mobile app to enable the consumer to locate an OOS item at an in-stock location, purchase it, and have it shipped to them or held for pickup –  46% of consumers selected this as important to them   The ability of a store associate to be able to locate an OOS product at an in-stock location and have the product: shipped to the customer, transferred to the customer’s home store, or held for customer pickup at the in-stock location –  72% consider it Important to Very Important Source: Survey “Cross-Channel Brand Interaction: 2010 Consumer Preferences”; Sterling Commerce/Demandware; Sep. 2010 34 © 2010 IBM Corporation
  • 34. Multiple Goals Can Be Achieved Applying mobile capabilities for avoiding—or recovering from—retail stock-outs provides a recipe for achieving retailer goals (i.e., selling), appealing to consumer preferences (i.e., for increased convenience), and funding future mobile initiatives (i.e., that leverage consumer adoption). 35 © 2010 IBM Corporation
  • 35. Store Associate Mobile – Associates assisting customers Access Check View View Product Product Inventory Fulfillment Availability Information Levels Options 36 © 2010 IBM Corporation
  • 36. Store Associate Mobile – Associates assisting customers Companion View Product Description Specifications Promotions Or Substitute Details Items 37 © 2010 IBM Corporation
  • 37. Store Associate Mobile – Associates assisting customers Select Pick And Hold Contact In- Fulfillment Ship To Home For Customer Stock Store If Method Pickup Low Inventory 38 © 2010 IBM Corporation
  • 38. Store Associate Mobile – Associates assisting customers View Access/Collect Edit Cart Provide Unique Customer Customer Content Order Identifier Order Information 39 © 2010 IBM Corporation
  • 39. Store Associate Mobile – Associates assisting customers Check Track/Verify Outstanding Order Pick Orders Completion 40 © 2010 IBM Corporation
  • 40. Order Management Mobile Framework – Consumer Convenience Instant  access  to:   Product  informa.on/special  offers   Product  availability   Purchase/Fulfillment  op.ons   Order  tracking   Complete  order   with  mul6ple   fulfillment  methods   Search  for   Order  is  ready  and   product  and   wai6ng  when  consumer   product   arrives   informa6on   Check  availability   loca6ons   Choose  preferred   fulfillment  method(s)   41 © 2010 IBM Corporation
  • 41. Conclusion   Mobility is undeniably the next major Retail channel   Retailers want to increase sales via this new channel   Consumers want increased convenience from the mobile channel   Retailers must offer consumer convenience to incent consumer adoption and use of retailer- specific mobile apps/sites   Applying mobile capabilities (whether in the hands of store associates and/or consumers) to recover from or avoid retail OOSs provides the highly promising potential to boost sales while increasing consumer convenience and satisfaction   Regardless, any retailer mobile commerce offering must successfully address consumer awareness, adoption, and use in order to be successful 42 © 2010 IBM Corporation
  • 42. Your GoToWebinar Attendee Viewer is made of 2 parts: 1. Viewer Window 2. Control Panel Type your question here
  • 43. Download this PowerPoint Presentation: http://www.retailtouchpoints.com/mobileshopping