A report from the Economist Intelligence Unit
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The
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© The Economist Intelligence Unit Limited 20141
The new retail: From mobile aspirations to business results
Preface 2
Exec...
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The new retail: From mobile aspirations to business results
Aboutthis
repo...
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The new retail: From mobile aspirations to business results
A proliferatio...
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The new retail: From mobile aspirations to business results
Shortly after ...
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The new retail: From mobile aspirations to business results
Pew Research C...
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The new retail: From mobile aspirations to business results
“Consumers are...
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The new retail: From mobile aspirations to business results
Chambers, foun...
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The new retail: From mobile aspirations to business results
Commitment and...
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The new retail: From mobile aspirations to business results
Market leaders...
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The new retail: From mobile aspirations to business results
The second di...
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designed to a...
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The new retail: From mobile aspirations to business results
tools, EIU su...
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The new retail: From mobile aspirations to business results
Mobile techno...
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The new retail: From mobile aspirations to business results
Appendix:
Sur...
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The new retail: From mobile aspirations to business results
To what exten...
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The new retail: From mobile aspirations to business results
Major
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...
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The new retail: From mobile aspirations to business results
Which of the ...
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Positively Ne...
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The new retail: From mobile aspirations to business results
How would you...
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The new retail: From mobile aspirations to business results
Positive
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General manag...
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The new retail: From mobile aspirations to business results
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The new retail: From mobile aspirations to business results

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Mobile devices and apps have become a fixture in consumers' lives. How do retailers engage?

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The new retail: From mobile aspirations to business results

  1. 1. A report from the Economist Intelligence Unit Sponsoredby Frommobile aspirationsto business results The new retail:
  2. 2. © The Economist Intelligence Unit Limited 20141 The new retail: From mobile aspirations to business results Preface 2 Executive summary 3 Introduction: A shopping mall in the palm of everyone’s hand 4 Consumers lead, retailers sluggishly follow 6 Easier said than done: Moving from theory to practice 7 Commitment and execution 8 Focus on customer value 10 Conclusion 13 Appendix: Survey results 14 Contents 1 2 3 4 5
  3. 3. © The Economist Intelligence Unit Limited 20142 The new retail: From mobile aspirations to business results Aboutthis report The new retail: From mobile aspirations to business results is an Economist Intelligence Unit research report, sponsored by AT&T. Our thanks go to all survey respondents and interviewees for their time and insight. The report was written by Peter Moustakerski and edited by Christine Emba. The findings and views expressed in the report do not necessarily reflect the views of the sponsor. March 2014 The survey, conducted in September and October 2013, reached 156 respondents in the retail sector: 30% from North America, 29% from Asia- Pacific, 27% from Western Europe, 6% from the Middle East and Africa, 5% from Latin America and 3% from Eastern Europe. Respondents filled a variety of functional roles—40% were in general management, while 15% were in finance, 12% in strategy and business development, and 11% in marketing and sales, among others. Twenty-six percent of respondents were CEOs, presidents, or managing directors, 16% were SVPs, VPs or Directors in Merchandising, and 33% were SVP, VP or Director-level in other roles. Who took the survey?
  4. 4. © The Economist Intelligence Unit Limited 20143 The new retail: From mobile aspirations to business results A proliferation of powerful and functionality-laden mobile devices has transformed the way that people live and function. The ubiquity of mobile devices has had a particularly strong impact on the retail sector, as customers and employees increasingly use and depend on their mobile devices throughout their shopping experience. This mobile penetration is transforming shopping behaviours, as well as how retailers define success. In order to determine how retailers are responding to the rise in mobile-empowered consumers, The Economist Intelligence Unit, on behalf of AT&T, conducted a survey of over 150 global executives from around the world. Key findings include: l The mobile transformation is solidly under way in retail, and consumers are leading the charge. As of January 2014, 91% of Americans owned a mobile phone, and 55% had a smartphone. According to our survey, 39% of respondents say that customers use mobile devices “extensively” or ”often” while shopping. Thirty percent of respondents have seen major behavioural shifts in customers attributable to mobile device usage, while 25% have observed similar shifts in their employees. l Integrating mobile is crucial to delivering a quality omni-channel experience. Deploying mobile devices and fostering a culture of usage and innovation are seen by 84% of retailers as important to a strong omni-channel experience. To do so effectively, however, retailers must be able to integrate their theoretical ambitions with practical execution. In our survey, respondents who perceive their companies as “practical” leaders or early adopters—those who not only aspire to use but actually adopt mobile technologies and integrate them throughout their company—are more likely to report above-average success across the board. l The most effective mobile tools for retailers focus on consumer value. Consumers respond more favourably to sophisticated, narrowly targeted and higher-value-add tools, such as mobile coupons (75% of retailers believe they have generated a positive response from customers), geo-targeted advertisements and promotions (74%) and product search apps (72%). Retailers’ next generation of mobile technologies will be designed to address specific customer needs and pain points, integrate the customer experience across sales channels and create previously unexplored sales opportunities. Executive summary
  5. 5. © The Economist Intelligence Unit Limited 20144 The new retail: From mobile aspirations to business results Shortly after taking over as head of marketing at Max Brenner—a chain of chocolate-themed cafés and candy boutiques—Stacey Paul took note of one particular metric: as many as half of all users were accessing the company’s website on their mobile devices. However, the newly redesigned site did not have key mobile features such as pinch-and- zoom or swiping between pages. “We had to rethink our strategy,” says Ms Paul. “The world is quicker and smaller, and your life is now on mobile. Retailers need to answer that call.” Hence one of her first decisions as the company’s top marketing executive was to redraw the website and optimise it for smartphones and tablets using the latest in mobile Internet design and functionality. The growing digital retail turnover is increasingly happening on the go. The significant penetration of mobile devices into the lives of everyday consumers is transforming shopping behaviours. As Ms Paul points out, consumers’ daily activities are increasingly reliant on mobile phones and tablets— how they shop is no exception. According to the Introduction: A shopping mall in the palm of everyone’s hand1 Q Source: Economist Intelligence Unit survey, October 2013. Strong impact Moderate impact Weak impact No impact Don’t know/ Not applicable Pre-purchase: Discovery and awareness Pre-purchase: Decision to purchase Pre-purchase: Comparison and selection Purchase: Decision to upgrade/increase purchase Purchase: Shopping experience Post-purchase: Fulfilment and delivery experience Post-purchase: After-sales service and support experience Post-purchase: Decision to repeat purchases/customer loyalty and advocacy How will the use of mobile devices impact the following stages of your customer’s purchasing lifecycle? Please select responses on a scale from ‘Strong impact’ to ‘No impact’. (% respondents) 47 38 6 3 5 24 58 10 5 3 41 42 6 7 4 26 45 18 6 6 33 43 15 4 5 29 38 19 10 3 30 36 17 13 4 31 40 15 9 5
  6. 6. © The Economist Intelligence Unit Limited 20145 The new retail: From mobile aspirations to business results Pew Research Center, a US think-tank, as of January 2014 91% of the US population carries a mobile phone, 55% have a smartphone and 42% own a tablet computer. Young people and wealthier, more-educated consumers are even more connected to their smart mobile devices—they do about one-quarter of their shopping online and one-third of them use their phones for online research when deciding whether to visit a brick-and-mortar store or a restaurant. This mobile shopping trend is expected to accelerate—according to the 2014 Mobile 500 report published by Internet Retailer, mobile commerce in the US will grow 63% to reach US$34bn by the end of 2014, up from US$21bn in 2012. These trends are holding across retail industries, even in retail banking and brokerage. “Today, 12% of our daily average revenue trades come through mobile,” says Paul Zettl, managing director of retail marketing and digital media at TD Ameritrade, a US online broker. Customers can use its mobile app from their smartphones or tablets to check balances, access investment research and place trade orders. This rapid and on-going evolution has put large amounts of information and powerful mobile- technology tools at the fingertips of ordinary people, resulting in the emergence of a culture that will forever transform how people plan and do their shopping. Results from an Economist Intelligence Unit (EIU) survey of more than 150 retail executives worldwide, conducted in October 2013, confirm that consumers are increasingly relying on their mobile devices during their shopping experiences—39% of respondents say that customers use them “extensively” or ”often” while shopping. The growing prevalence of mobile devices is expected to affect every stage of retail shopping, though the awareness and comparison stages of a customer’s purchasing lifecycle should experience the greatest impact. Overall, mobile technologies will have a positive effect on customer engagement and key business metrics that matter to retailers’ business performance. Ultimately, mobile technologies are widely expected to benefit the two most important objectives for retail operators: profitability and customer experience. The trick for retail operators will be to transform their strategies to reap these benefits. ❛❛ The world is quicker and smaller, and your life is now on mobile. Retailers need to answer that call. ❜❜ Stacy Paul Head of marketing Max Brenner
  7. 7. © The Economist Intelligence Unit Limited 20146 The new retail: From mobile aspirations to business results “Consumers are leading the way in mobile shopping, and retailers are struggling to catch up,” says Ms Paul of Max Brenner. Our survey data support her assertion—respondents to our survey see significant cultural and behavioural shifts both among their retail customers and employees as a result of increased mobile device usage. The new reality of mobile technology has influenced business drivers touching everyone in the organisation, from corporate office to shop floor. Providing an integrated, seamless shopping experience across digital and physical channels has continued to be a challenge for many retailers. The delivery of such an omni-channel experience is an important strategic goal across the retail industry. “It is what customers have come to expect—the confluence of their online and in-store experience with our brand,” says Claire Consumers lead, retailers sluggishly follow2 Q Source: Economist Intelligence Unit survey, October 2013. Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Don’t know/ Not applicable Volume of footfall or traffic Rate of traffic-to-sale conversion Average sale/check amount Customer loyalty metrics Number of times inventory turns per month Inventory loss due to theft or waste Seasonal/peak period demand management Operating profit margins at the store level Corporate overhead costs Impact of mobile device and application use on different business drivers for retail organisations Please select responses on a scale from ‘Very positive impact’ to ‘Very negative impact’. (% respondents) 23 41 24 3 9 14 50 25 1 10 19 28 43 3 8 23 43 26 1 8 15 28 44 2 12 14 14 56 1 15 17 33 37 3 1 10 24 28 30 7 10 18 26 38 7 1 11
  8. 8. © The Economist Intelligence Unit Limited 20147 The new retail: From mobile aspirations to business results Chambers, founder and CEO of Journelle, an upscale lingerie retailer in the US. Yet many retailers still struggle with the challenge of co-ordinating customer experiences across channels, and many haven’t been completely successful. Twenty-four percent of EIU survey respondents rate their company’s success in creating an omni-channel experience as “somewhat” or “well below average” compared with that of their peers. Why are many retailers failing to realise their omni-channel goals or even catch up with the rest of the field? What separates the organisations that succeed from the rest of the pack? In our survey, we analysed two levels at which companies embrace mobile technology: “theoretical”, which reflects the leadership’s stance and the company’s stated position with regard to using mobile technology to achieve its strategic goals, and “practical”, which reflects the organisation’s actual use of mobile devices and apps to serve customers. Our data show a strong connection between a retailer being either a theoretical or a practical leader in embracing mobile technologies and successfully implementing an omni-channel strategy—respondents who see their companies as frontrunners in the mobile space (either in theory or practice) are much more likely to report that they are enjoying above-average success creating a high-quality omni-channel experience. More than one-third of our survey respondents believe that their company is a theoretical leader— that is, their company and its leadership team have a positive, encouraging attitude towards the use of mobile devices to engage customers and drive business results. At the same time, however, actual use of these technologies tends to lag behind the operators’ theoretical aspirations. This gap between theory and practice highlights both the challenge and the opportunity for retailers as they transform themselves into omni- channel players, and underlines the need for the strategies that we describe below. Easier said than done: Moving from theory to practice Source: Economist Intelligence Unit survey, October 2013. Success by “practical” and “theoretical” mobile technology leaders in creating an omni-channel experience, compared with that of industry peers (% respondents) Well above average Somewhat above average Average/On par with peers Somewhat below average Well below average We do not focus on the development of an omni-channel experience “Theoretical” leaders and early adopters “Practical” leaders and early adopters 36 34 36 39 27 27 0 0 0 0 2 0
  9. 9. © The Economist Intelligence Unit Limited 20148 The new retail: From mobile aspirations to business results Commitment and execution 3 Market leaders excel at motivating and mobilising their workforce to create an in- house app culture of their own. For many retailers, in-store sales still dominate their revenues; thus, investing in the development of new digital channels may seem less urgent. Such thinking leads to a lack of top-down leadership commitment to new mobile channels, which in turn affects the buy-in of the rest of the organisation. In addition, mobile channels still account for a relatively small portion of revenues, and the cost of developing and maintaining a high-quality omni-channel experience can be significant. “Merging the information from different databases is a real challenge,” says Ms Chambers of Journelle. “Customers expect to walk into your store and pick up merchandise that they placed in their online cart the day before. But we can’t see what’s in their online cart, and sometimes don’t even stock the same merchandise in our stores.” If retailers are to succeed as omni-channel players, they must meet two challenges. First, they have to develop the leadership commitment—the theoretical aspiration—to use mobile technologies across sales channels to achieve their strategic goals. Second, they need to find the focus and stamina—the practical execution capabilities—to follow through on their commitment and complete the complex tasks required to transform themselves into omni-channel operators. These tasks include integrating information from multiple systems and databases, co-ordinating marketing content across customer touch-points and revamping operations to support product merchandising and fulfilment across different channels. In our survey, respondents who perceive their companies as “practical” leaders or early adopters—those who not only aspire to adopt but also actually go forward to adopt mobile technologies and apps—are more likely to report above-average success across the board. Q Source: Economist Intelligence Unit survey, October 2013. To what extent has the use of mobile devices and applications led to a cultural and behavioural shift at your organisation in the past 3 years? (% respondents) Major change Moderate change Minor change No change “Practical” leaders and early adopters Followers 52 16 41 47 5 29 2 6
  10. 10. © The Economist Intelligence Unit Limited 20149 The new retail: From mobile aspirations to business results Market leaders are much more likely to report that their employees “extensively” or “often” use mobile devices to serve customers or that mobile technologies have led to a major or moderate behavioural shift among their employees. These retailers excel at motivating and mobilising their workforce to create an in-house app culture of their own and thus are able to respond to customers’ expectations when it comes to using mobile devices throughout the shopping lifecycle. “Our mobile development team is embedded in the product team,” says Mr Zettl of TD Ameritrade. He points out that having marketers who keep up with the latest mobile capabilities, along with app developers who understand the marketing strategy and customer needs, is critical to the success of mobile strategies. “Our strategy is to help our clients trade more intelligently,” says Mr Zettl, “and building a ‘mobile-first’ platform is the industry holy grail we are striving to reach.” Practical mobile app and device leaders also see greater impact of mobile technologies on a customer’s shopping journey, and they deploy more advanced and value-added services to their customers to maintain loyalty. Most important, they report significantly higher benefits from mobile technology on all their key business metrics and, ultimately, on their company’s bottom line. Q Source: Economist Intelligence Unit survey, October 2013. Has mobile device use had a positive impact on the following business drivers for your organisation? (% respondents) Customer loyalty metrics Rate of traffic-to-sale conversion Operating profit margins at the store level Volume of footfall or traffic Season/peak period demand magangement Corporate overhead costs Average sale/check amount Number of times inventory turns per month Inventory loss due to theft or waste “Practical” leaders and early adopters Followers 86 57 84 63 80 45 73 65 73 44 70 33 66 43 64 37 48 20 ❛❛ Building a ‘mobile first’ platform is the industry holy grail we are striving to reach. ❜❜ Paul Zettl Managing director, retail marketing and digital media TD Ameritrade
  11. 11. © The Economist Intelligence Unit Limited 201410 The new retail: From mobile aspirations to business results The second dimension that underpins the omni- channel success of leaders goes beyond whether they have the commitment and capabilities to adopt and use the latest mobile technology tools. Rather it matters what they do with these technologies and how well they deploy them to solve pressing customer problems. The widespread penetration of mobile devices and the proliferation of free or low-cost mobile applications have presented consumers with a plethora of tools designed to address their slightest need. The realm of consumer retail shopping in particular has been flooded with tools and applications that target every step of the purchasing process. Most, if not all, are aimed at making parting with cash anytime and anywhere as easy—and even fun— as possible for consumers. The mobile tools most widely deployed by retailers today tend to focus on one primary sales channel rather than functioning across channels. The most common tools include a company-branded mobile website or app (used by 65% of total survey respondents.) and social media software (53%). The next generation of mobile tools will be Focus on customer value 4 Q Source: Economist Intelligence Unit survey, October 2013. Which of the following mobile device technologies and applications are currently used by your company to serve your customers? (% respondents) Company-branded mobile app/website Customer WiFi Social media software (eg, monitoring, engagement and analytics) Big data analytics (eg, WiFi/Cellular) Mobile point-of-sale/payment Click & reserve functionality Digital signage and in-store communications Customer collaboration solutions (eg, customer profile, live chat/support) Self-serve kiosks “Practical” leaders and early adopters Followers 82 66 80 54 52 56 68 51 61 40 73 27 55 29 50 28 50 24
  12. 12. © The Economist Intelligence Unit Limited 201411 The new retail: From mobile aspirations to business results designed to address specific customer needs and pain points, integrate the customer experience across sales channels and create previously unexplored sales opportunities. The Nieman Marcus mobile app, for example, combines customer service and collaboration with store staff. The luxury retailer’s app allows customers to bookmark certain items and then connect by e-mail, text or phone with sales staff in a nearby store. “Mobile customers behave differently from shoppers who are online or in a physical store,” says Ms Paul. “They have less time and are acting with a specific purpose in mind.” Thus customers expect mobile apps to be simple, easy to navigate and geared towards achieving a specific, relevant objective. Industry leaders and early adopters listen to pressing customer needs and respond with simple, user-friendly and useful apps and services. US retailer Wal-Mart, for example, realised that some of its recession-hit customers had smartphones and wanted to shop online, but did not have credit cards with which to place orders. To allow these customers to use their preferred channel, Wal-Mart began to let customers place orders online and then come into a bricks-and-mortar outlet to make payment in cash. “Following the customers to where they want to go is key,” says Ms Chambers of Journelle, “and giving them a valuable service, such as pulling up their past purchasing history or the ability to pick up or return in the store goods they purchased online.” This distinction between mobile leaders and followers is evident in our survey results—leaders are much more likely to offer their customers click-and-reserve capabilities or use mobile point-of-sale payment systems. For instance, US supermarket chain ShopRite is testing a mobile app that allows customers to scan items on their smartphones as they place them in their shopping carts and then use their phone to check out, thereby bypassing crowded checkout lanes. Among mobile marketing tools, the most common are e-mail communication, social media integration and text messaging. Yet these traditional digital methods are not necessarily the most effective way to reach new customers or cement existing relationships. When asked about consumers’ response to different mobile marketing Q Source: Economist Intelligence Unit survey, October 2013. Which of the following mobile marketing tools and strategies do you currently utilise to engage your customers? (% respondents) Email communication Social media integration Text messaging/SMS Store locator apps Product search apps Geo-targeted advertisement and promotions QR codes Mobile coupons Mobile shopping card/payment apps Mobile video advertisements “Practical” leaders and early adopters Followers 82 81 70 64 80 57 77 49 75 45 66 41 70 38 68 32 48 16 41 15 ❛❛ Following the customers to where they want to go is key. ❜❜ Claire Chambers Founder and CEO Journelle
  13. 13. © The Economist Intelligence Unit Limited 201412 The new retail: From mobile aspirations to business results tools, EIU survey participants rate e-mail and text messaging as least appealing. More sophisticated mobile marketing tools such as geo-targeted promotions (used by 45% of survey respondents) and mobile coupons (39%) are also gaining ground and tend to generate greater customer engagement. The Hijack app by Guatemalan footwear retailer Meatpack uses GPS technology to detect when users are in competitors’ stores. Customers receive a message with a discount that starts at 99% and drops by 1% every second, meaning that the faster customers arrive at a Meatpack retail store, the higher a discount they will receive. In addition to generating significant marketing buzz, the app reportedly “hijacked” 600 customers in a single week. Consumers respond more favourably to such sophisticated, narrowly targeted and higher-value- add tools. According to participants in our survey, mobile coupons are most welcome, followed by geo-targeted advertisements and promotions, and product search-and-compare apps. And when it comes to marketing tools, industry leaders in mobile deployment are much more adept at using high-value-add tools such as store locator apps, QR codes and geo-targeted ads and promotions. “Targeting is key,” says Ms Paul. “Your marketing message can’t be broad anymore, which is why geo-targeting is a must—it’s expected.” Best-in-class mobile tools provide both the speed and convenience mobile consumers crave, as well as content and interactions that are specifically targeted to their preferences and thus relevant to their needs. ❛❛ Targeting is key. Your message can’t be broad anymore. ❜❜ Stacey Paul Head of Marketing Max Brenner
  14. 14. © The Economist Intelligence Unit Limited 201413 The new retail: From mobile aspirations to business results Mobile technology will continue to play an increasing role in improving the consumer retail experience and unlocking new revenue opportunities for retailers. For the foreseeable future, consumers will likely set the speed, direction and expectations of the app culture revolution and retailers will do their best to keep pace and realise the business benefits. Accordingly, retailers will need to rethink their strategies to incorporate and prioritise the new mobile channels. They will need to communicate these new attitudes both internally and externally, and mobilise their leadership and rank-and-file employees to execute the transformational initiatives that will lay the groundwork for their omni-channel success. In-store employees will be especially critical to this transformation. Companies should enable those on the front lines with the necessary tools and training to develop a supply-side culture that meets the new needs of an increasingly mobile-savvy consumer. Finally, retailers will need to become far better listeners to their customers. Rather than taking a one-size-fits-all approach, they must navigate the clutter of apps and tools now available and prioritise those that address specific needs and problems— such as convenience, speed of transaction, individually tailored offerings and promotions—if they are to remain fresh, relevant and indispensable in the minds and hearts of consumers. Conclusion 5
  15. 15. © The Economist Intelligence Unit Limited 201414 The new retail: From mobile aspirations to business results Appendix: Survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses. Overall, how would you characterise your company’s position with regard to utilising mobile devices and apps in achieving its strategic goals? (% respondents) Industry leader and innovator of mobile technologies Early adopter of cutting-edge mobile technologies Early follower of proven mobile technologies Late follower of established mobile technologies Not a follower of proven or established mobile technologies Don’t know 12 24 28 26 10 0 How would you characterise your organisation’s use of mobile devices and apps in serving your customers? (% respondents) Industry leader and innovator of mobile technologies Early adopter of cutting-edge mobile technologies Early follower of proven mobile technologies Late follower of established mobile technologies Not a follower of proven or established mobile technologies Don’t know 10 18 30 31 10 1
  16. 16. © The Economist Intelligence Unit Limited 201415 The new retail: From mobile aspirations to business results To what extent are your employees using mobile devices and apps to serve their customers throughout their shopping journey? (% respondents) Extensively/always Often Sometimes Rarely Not at all Don’t know/Not applicable 16 25 34 18 6 1 To what extent are your customers using mobile devices and apps to fulfil their shopping missions at your retail stores? (% respondents) Extensively/always Often Sometimes Rarely Not at all Don’t know/Not applicable 10 28 36 18 4 4 Major change Moderate change Minor change No change Don’t know Cultural shift among your employees Cultural shift among your customers Behavioural shift among your employees Behavioural shift among your customers In your opinion, to what extent has the use of mobile devices and applications led to a cultural and behavioural shift at your organisation in the past 3 years? Please select responses on a scale from ‘Major change’ to ‘No change’. (% respondents) 28 42 21 8 1 27 42 21 8 2 25 42 22 8 2 30 35 27 5 3
  17. 17. © The Economist Intelligence Unit Limited 201416 The new retail: From mobile aspirations to business results Major change Moderate change Minor change No change Don’t know Cultural shift among your employees Cultural shift among your customers Behavioural shift among your employees Behavioural shift among your customers To what extent will the use of mobile devices and applications lead to a cultural and behavioural shift at your company in the next 3 years? Please select responses on a scale from ‘Major change’ to ‘No change’. (% respondents) 40 43 12 4 1 35 42 17 5 1 43 38 15 4 39 38 17 5 1 Which of the following mobile device technologies and applications are currently used by your company to serve your customers? Please select all that apply. (% respondents) Company-branded mobile app/website Customer WiFi Social media software (eg, monitoring, engagement and analytics) Big data analytics (eg, WiFi/Cellular) Mobile point-of-sale/payment Click & reserve functionality Digital signage and in-store communications Customer collaboration solutions (eg, customer profile, live chat/support) Self-serve kiosks Other 65 60 53 51 44 37 34 33 29 2
  18. 18. © The Economist Intelligence Unit Limited 201417 The new retail: From mobile aspirations to business results Which of the following mobile device technologies and applications not currently used by your organisation will be implemented in the next eighteen months? Please select all that apply. (% respondents) Customer collaboration solutions (eg, customer profile, live chat/support) Mobile point-of-sale/payment Self-serve kiosks Digital signage and in-store communications Social media software (eg, monitoring, engagement and analytics) Click & reserve functionality Company-branded mobile app/website Big data analytics (eg,WiFi/Cellular) Customer WiFi Other None of the above 26 22 21 20 20 19 13 13 9 1 19 Which of the following mobile marketing tools and strategies do you currently utilise to engage your customers? Please select all that apply. (% respondents) Email communication Social media integration Text messaging/SMS Store locator apps Product search apps Geo-targeted advertisement and promotions QR codes Mobile coupons Mobile shopping card/payment apps Mobile video advertisements Other 82 63 62 54 51 45 44 39 23 21 1
  19. 19. © The Economist Intelligence Unit Limited 201418 The new retail: From mobile aspirations to business results Positively Neutral Negatively Don’t know/ Not applicable Geo-targeted advertisement and promotions Store locator apps Product search apps QR codes Text messaging/SMS Email communication Social media integration Mobile coupons Mobile shopping card/payment apps Mobile video advertisements How have customers responded to the mobile marketing tools and strategies used by your organisation? Please select responses on a scale from ‘Positively’ to ‘Negatively’. (% respondents) 74 20 1 4 57 41 2 72 24 4 52 42 1 4 56 35 5 3 57 35 6 2 66 29 2 3 75 20 5 69 22 8 59 41 Strong impact Moderate impact Weak impact No impact Don’t know/ Not applicable Pre-purchase: Discovery and awareness Pre-purchase: Decision to purchase Pre-purchase: Comparison and selection Purchase: Decision to upgrade/increase purchase Purchase: Shopping experience Post-purchase: Fulfilment and delivery experience Post-purchase: After-sales service and support experience Post-purchase: Decision to repeat purchases/customer loyalty and advocacy How will the use of mobile devices impact the following stages of your customer’s purchasing lifecycle? Please select responses on a scale from ‘Strong impact’ to ‘No impact’. (% respondents) 47 38 6 3 5 24 58 10 5 3 41 42 6 7 4 26 45 18 6 6 33 43 15 4 5 29 38 19 10 3 30 36 17 13 4 31 40 15 9 5
  20. 20. © The Economist Intelligence Unit Limited 201419 The new retail: From mobile aspirations to business results How would you rate your company’s success in creating an omni-channel experience compared with that of your industry peers? (% respondents) Well above average Somewhat above average Average/On par with peers Somewhat below average Well below average We do not focus on the development of an omni-channel experience 14 29 28 19 5 6 In your opinion, how important is the deployment of mobile devices and apps to the creation of an omni-channel experience? (% respondents) Highly important Moderately important Minimally important Not important at all Don’t know 47 37 10 1 4 Very positive impact Somewhat positive impact No impact Somewhat negative impact Very negative impact Don’t know/ Not applicable Volume of footfall or traffic Rate of traffic-to-sale conversion Average sale/check amount Customer loyalty metrics Number of times inventory turns per month Inventory loss due to theft or waste Seasonal/peak period demand management Operating profit margins at the store level Corporate overhead costs What impact has the use of mobile devices and apps had on the following business drivers for your organisation? Please select responses on a scale from ‘Very positive impact’ to ‘Very negative impact’. (% respondents) 23 41 24 3 9 14 50 25 1 10 19 28 43 3 8 23 43 26 1 8 15 28 44 2 12 14 14 56 1 15 17 33 37 3 1 10 24 28 30 7 10 18 26 38 7 1 11
  21. 21. © The Economist Intelligence Unit Limited 201420 The new retail: From mobile aspirations to business results Positive effect No effect Negative effect Don’t know/ Not applicable Your company’s bottom line Your customers’ shopping experience In your opinion, over the next 3 years, will the use of mobile devices and apps have a positive or negative effect on your company’s bottom line and your customer’s experience? Please select responses on a scale from ‘Positive effect’ to ‘Negative effect’. (% respondents) 75 18 3 5 82 14 1 3 Please select the retail sub-sector your company belongs to. Select the one response that best reflects the classification of your company. (% respondents) General merchandiser Department store Supermarket Superstore/discounter Convenience store Specialty retailer: footwear and apparel Specialty retailer: personal care or health and beauty merchandise Specialty retailer: household goods Specialty retailer: home improvement merchandise Specialty retailer: consumer electronics Other specialty retailer Catalogue or online retailer Other retailer 8 8 8 1 3 17 8 6 5 5 13 7 9 In which country are you personally located? (% respondents) United States of America United Kingdom Singapore Australia, China, India, Japan, South Korea Brazil, Germany, Italy, Romania, Spain Canada, France, Saudi Arabia, United Arab Emirates Argentina, Denmark, Hong Kong, Switzerland, Austria, Belgium, Finland, Ghana, Ireland, Israel, Kenya, Latvia, Lithuania, Malaysia, Mexico, Poland, Portugal, South Africa, Sweden, Taiwan, Turkey 28 8 5 4 3 2 1 North America Asia-Pacific Western Europe Middle East and Africa Latin America Eastern Europe In which region are you personally located? (% respondents) 30 29 27 6 5 3 $500m or less $500m to $1bn $1bn to $5bn $5bn to $10bn $10bn or more What are your organisation’s global annual revenues in US dollars? (% respondents) 52 15 17 6 10
  22. 22. © The Economist Intelligence Unit Limited 201421 The new retail: From mobile aspirations to business results General management Finance Strategy and business development Marketing and sales IT Human resources Supply-chain management Procurement Information and research Operations and production Risk/Security Customer service Other What is your main functional role? (% respondents) 40 15 12 11 6 4 4 3 2 1 1 1 1 CEO/president/managing director CFO/Treasurer/comptroller CIO/CTO/Technology director CMO/Advertising officer/ Experience officer Other C-level executive SVP/VP/Director, Merchandising SVP/VP/Director, Distribution SVP/VP/Director, Finance/accounting SVP/VP/Director, Other Which of the following best describes your title? (% respondents) 26 10 5 3 7 16 6 9 18
  23. 23. © The Economist Intelligence Unit Limited 201422 The new retail: From mobile aspirations to business results Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper. Cover:Shutterstock
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