Mobile: The Great Connector

RESOURCE INTERACTIVE THINK ABLE MOBILE Introduction: Mobile Comes of Age Mobile technology has drenched our daily lives. From Stat Shot: texting to shopping to socializing to gaming, it’s more than just all the rage—it has become the great connector According to International Data Corporation, smartphone of all channels and touch points (and not just the digital manufacturers shipped 100.9 million devices in the fourth quarter of 2010, while PC manufacturers shipped 92.1 ones). Mobile has become the ever-present cornerstone million units worldwide. Or, more simply put, smartphones of consumers’ lives, enabling new experiences and just outsold PCs for the first time ever.* empowering connections and interactions as never before. Just as the nexus of personal computers and the Internet Source: Read Write Web, February, 2011 1 (with email) changed the way we live and work, this new, revolutionary convergence of smart phones and cloud tablets with apps and high-speed networks is causing a quantum shift in our daily interactions and transactions. The adoption of—and innovation around—advanced mobile devices and services in 2010 was staggering. We expect that pace to dial up exponentially in 2011. In this paper, we take a look at how this fast-evolving channel is changing the world of consumers and how commerce and brands can mobilize for the future to meet consumer expectations. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 2

RESOURCE INTERACTIVE THINK ABLE MOBILE O.P.E.N. Mobile Experience to Meet Consumer Expectations We’ve long proclaimed that brands must open their We believe consumers expect brands to be O.P.E.N. We mindsets and experiences to embrace their socially believe the more open a brand is to consumers by ensuring networked and consummately collaborative consumers. them the following integrated experiences, the more consumers will embrace and buy from that brand: Now, to that brand-opening call, we add another layer: Truly open brands must have open mobile experiences. Why? On-demand—Delivers accessible, self-directed and instantly gratifying experiences. Because consumers are more in motion, more mobile and more demanding than ever before. Therefore, brands must be open around the clock and around the world, energized and optimized for meaningful experiences on major mobile Personal—Facilitates meaningful interaction with platforms and devices. individuals. Engaging—Deepens attachment through relevant emotional experiences. Networked—Taps the exponential potential of individual consumers and online communities. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 3

RESOURCE INTERACTIVE THINK ABLE MOBILE O.P.E.N. Mobile Experience to Meet Consumer Expectations More than the sum of its parts, brand openness must Here are some of the things consumers seek when making an be holistic and expansive enough to meet consumer O.P.E.N. connection with mobilized brands: expectations and be with consumers wherever they are — Usable tools at every inspiration point now and wherever they are headed next. While they may have multiple connected devices (desktops, laptops and — Personalization, localization, and real-time sharing options tablets all at their fingertips as the constant motion of their — Mobile advertising that connects them with the brand, and lives flow), we are certain that the central connection point the brand with them will be their primary mobile device. O.P.E.N. experiences — Experiences that harness unique devices, applications, and can now be delivered across a range of always-connected services to enrich and engage devices that open the door to not only new consumers, but — Commerce opportunities that integrate mobile with social, also to brand loyalists in new ways. web and retail channels In recent years, The Open Brand has been the foundation for rich, relevant, lasting relationships between consumers and brands. Enabling marketing technologies and channel expansions like mobile have accelerated the imperative for brands to ensure integrated, O.P.E.N. experiences. As growth technologies and channels (including mobile, social, virtual and augmented reality) evolve and mature, consumer expectations will continue to heighten and brands will constantly need to be ahead of ensuring O.P.E.N. brand experiences for their consumers. The alternative is irrelevance. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 4

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand The brands that are getting it right started with some basic tenets and knowledge bases that we encourage all our brands to start with: — Knowing your consumers — Knowing yourself, your strategy, your brand — Knowing your competition — Knowing your goals and objectives — Knowing your mobile best practices RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 5

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand Chief marketing officers (CMOs) and brand managers are Profile: Starbucks Gets Wired increasingly aware of mobile’s importance for connecting with consumers. They are talking about mobile and diving Ever since the sound of fingers on keyboards joined the into launch sites and apps as fast as they can. However, cacophony of coffee grinders and milk steamers, Starbucks has been known as a truly wired brand. In 2010, it went the extra only a few brands are really cracking the code. mile for consumers by offering free WiFi, and in January 2011, In this section, we look at some of the other keys to mobile it launched its mobile payment system, enabling smartphones success for CMOs and consumers alike and to act as Starbucks cards for in-store payments, balance- the brands that are getting it right. checking and reloading. Likewise, when consumers opt into mobile campaigns, they may also receive a text-messaged discount if they wander into the geo-fenced range of a store. 01 Integrate Your Strategy—Mobile is a state of being, embedded in the lives of busy consumers. It is not a standalone channel, or a singular marketing tactic. Instead, it Starbucks has long been plugged into its consumers’ multi- channel habits, offering online card management and in-store must work to ensure a brand is creating O.P.E.N. experiences with and for consumers. So, don’t go rushing off on a tactical surfing options for years. Going mobile is just the latest move mission to launch a mobile site or app without first looking in their long-term strategy. at how it plays in your consumers’ lives and with your other channels, and how it mirrors the measure of your brand. That means having a strategy that brings mobile into the fold of your other channels (destination site, in-store, social, etc.) rather than treating it as a stand-alone or orbiting channel. Ensure that all channels blend together to create a seamless brand experience, no matter the media or platform. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 6

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand 02 Create Always-On Experiences—Mobile is different than other channels because consumers can take it with them everywhere they go. It elevates the channel to a new Profile: A Spotless App from Clorox Next time you splash red wine on a new dress, you can level of importance for consumers and brands because the get stain-removal advice on the go from Clorox, through expectation (and the experience) is 24/7. Now that consumers its mobile stain-fighting app. On the spot, you can search can find everything from a clean restroom (via the Charmin- for stains by type or fabric, and get advice on using Clorox sponsored Sit or Squat app) to a great place to eat nearby (with products (where appropriate) or other stain-busters the Urban Spoon app), consumer demands and expectations (like club soda), if they’ll do the job better. The app also now reach beyond the destination site or the bricks-and-mortar enables consumer feedback and lets users add their own store. Mobile creates opportunities to be not just always-on, but always reactive, responsive and available for consultation. Make stain removal tips and rate stain removal guides. Long the most of this ever-present channel by engaging consumers in after many marketing campaigns have faded away, this 24/7 brand experiences that fit into their fast-moving lives. Catch clever, always-on app will still be a stain-fighter’s best up with them at the check-out stand with brief, on-brand games friend (and Clorox, a trusted source for cleaner clothes). and polls (like Gain’s “Get a Sniff of Me” quiz and Laundry Personality profiler). Excite them with the immediacy and evanescence of mobile flash sales. Or meet them at the airport gate with geo-targeted features about stores and sales in the city where they’ve just landed. The bottom line: Be as mobile, as swift, as on-the-move and in-the-moment as your consumers are by serving on-brand experiences that match their mobile lifestyles. Stat Shot: 82% of consumers say they access their smart phones while shopping.* Source: “Get Ready for the Mobile Shopper,” InsightExpress.com, July, 2010 1 RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 7

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand 03 Mobilize for Commerce and Connectivity—The “e” in “ecommerce” has evolved from its original meaning (electronic) to one infused with a more mobile joie de vie: Blackberries, applying its famed 1-click checkout to the mobile model for quick and easy purchasing by on-the-go consumers. “everywhere.” And nowhere is “Everywhere” Commerce more And then there’s eBay, which, according to TechCrunch, reached evident than in the mobile universe. Mobile commerce is making $1.5 billion in sales with its growing stable of mobile apps and its mark in multiple ways: Not only is it allowing consumers services, and whose stated goal for 2011 is to double that amount to buy directly from mobile websites and apps, but it is also of sales. By subdividing particular interest areas such as fashion serving as the connective tissue that powers purchasing, as well and automotive for easier and faster mobile browsing, eBay as sharing for decision support, in other channels. This kind has created personalized experiences that speak directly to its of O.P.E.N. mobile commerce connectivity isn’t just a “nice to consumers, and, in turn, drive sales wherever those consumers are. have” concept for brand futurists: It’s already happening, and happening quickly, as mobile aligns with other channels to Profile: In-Store Meets Smart Phone shape more compelling commerce experiences than they could individually. Beyond social, mobile is becoming the glue that binds other channels together to form engaging O.P.E.N. experiences. Amazon and eBay, two of the brands that drove the original For instance, retail locations are discovering that a ecommerce revolution, are also a leading the way in Everywhere smartphone can work just as well–if not better–than a credit Commerce. Amazon consumers purchased an impressive $1 card for on-the-go shoppers. billion worth of products via their mobile devices in one year, and its number-one-selling product in 2010 was the Kindle Starbucks consumers are some of the first to pay for a eBook reader (which itself is an ecommerce mobile device, latte via mobile app, but other brands and retailers aren’t allowing for easy purchase and download of eBooks—but only far behind. Several companies, including Visa, are testing from Amazon). The Kindle is a testament to the enchanting Near Field Communication (NFC), a short-range, high- power of mobile devices to free the consumer for roaming frequency wireless technology for secure data exchange. at will without losing touch with what matters. Walk through In November, 2010, Verizon Wireless, AT&T, and T-Mobile any park or airport and you’ll see more and more people announced plans to offer NFC-based service by 2012. And enjoying an eBook versus an old-school page-turner. But the the iPhone 5 and iPad 2, as well as new generations of staggering sales enjoyed by Amazon don’t end with the Kindle. Google’s Android platform phones, are rumored to utilize The company drove its mobile numbers to the stratosphere by NFC, allowing many retailers and consumers to exchange launching apps for the iPhone, iPad, Android devices and currency and goods with the click of a smartphone. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 8

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand 04 Optimize for ROI—Savvy brands view mobile as a new type of canvas, not simply a smaller replica of their existing brand landscape. Rather than shrinking your brand to Stat Shot: 51% of consumers say they’d purchase more if more mobile sites fit in your consumers’ back pockets, develop an optimization were optimized.* strategy to make it shine brightly in the evolving space of smartphones and tablets. Optimization for mobile takes brands Source: Brand Anywhere and Luth Research, eMarketer Digital Intelligence, October 2010 1 farther, faster, by creating compelling experiences that inspire fresh consumer interactions, exploration and transactions. Ensure that your site and apps are fully optimized for the mobile space by following these tips: — Remember that mobile is not the Web, so optimize for faster load times with lighter graphics and a streamlined (one- or two-click) user experience. — Make the most of mobile’s unique “brand in the hand” capabilities with tools and apps that inspire real-world sampling (the way the Sherwin-Williams ColorSnap app does) and in-store decision-making (as does the Weight Watchers PointsPlus Finder app). — Tap the power of tablets to serve up everything from eye- catching e-catalogs to floor-walking sales associate tools. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 9

RESOURCE INTERACTIVE THINK ABLE MOBILE Mobilizing Your Brand 05 Engage with Apps and Ads—A truly O.P.E.N. brand incorporates engaging experiences that help define its optimal level of openness. As with optimization The Great Big Christmas Book app allowed shoppers to browse hundreds of the hottest holiday toys in an immersive shopping experience. Using virtual stickers, vs. miniaturization for interaction and transaction, brands kids could flag the toys they love and add them to a virtual must envision the mobile experience as an entirely new wish list. The app allowed parents to share those gift lists opportunity to create experiences uniquely suited to the with family and friends via email and text. An in-store mobile environment. Mobile apps and ads that engage and savings section and store locator made finding the best inspire, without simply replicating destination site or in-store experiences, earn brands more attention, commerce and word- deals effortless. The Great Big Christmas Book was one of-mouth (or, in today’s social lingo, “sharability.”) Don’t just the hottest iPad apps of the season, turning Toys “R” reinvent the wheel for mobile: Reinvent where that wheel is Us into the next best thing since Santa for time-starved taking your brand. parents. Profile: Tablets + Toys “R” Us = Sales Smartphones aren’t the only mobile devices burning up the airwaves these days. According to Forrester Research, 24 million tablet PCs are projected to be sold in the United States this year, up from 10.3 million in 2010. Resource Interactive and Toys “R” Us tapped into this growing trend for the holiday shopping season. Resource teamed up with the leading toy retailer to create an iPad app that was easy and fun for parents and kids to use together. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 10

RESOURCE INTERACTIVE THINK ABLE MOBILE RI: The Future of Mobile If past is prologue, as Shakespeare wrote, then 2010 set Mixed Reality for Real ROI—Mobile is helping to remake reality, the stage for mobile to soar to new heights, both as a way with virtual reality (VR) and augmented reality (AR) combining of life and a way of commerce. Mobile has now become into mixed reality (MR) experiences that give consumers greater control, visibility and creative input into purchases and experiences. an embedded behavior for millions of mobile consumers Mobile experiences such as Sherwin-Williams Color Snap (which whose lives and devices are always on the go. Up next are allows people to photograph a real-world hue and overlay it on an fast-evolving devices and apps that engage and reshape image of a room at home) are turning the real world into a virtual consumer experiences, changing the face of commerce palette for personal exploration. Likewise, MR experiences are along the way. Here are a few mobile technologies and enabling everything from virtual product personalization (as Puma’s uses that we believe will continue to reshape the mobile Creative Factory does) to simulated dressing rooms. Macy’s “Magic Mirror” system, installed at its flagship store during New York landscape. Fashion Week in September 2010, allowed shoppers to virtually try on clothes with the help of an iPad that “dressed” them with clothes they picked from a program. We expect MR to crop up everywhere, driven by mobile apps and devices that add an instant layer of virtual products to almost any shopping experience. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 11

RESOURCE INTERACTIVE THINK ABLE MOBILE RI: The Future of Mobile Tags Take Off—Mobile tags, also known as QR codes, Stores Turn to Tablets—iPads and other tablets are becoming are already sweeping through stores, allowing shoppers to de rigeur on the sales floor of stores ranging from the Apple compare and share product features and prices at the snap of a Store (of course!) to Old Navy. Tablets are empowering product smartphone. Now tags, including those produced by Microsoft and inventory searching and sampling at stores such as Best (which has its own Quick Response system), are offering ever Buy and The Disney Store, while also mobilizing the sales richer and more engaging information to support the decision force, allowing them to escape from behind the cash wrap to process. Once a consumer has downloaded a free tag reader, finalize consumer transactions (and more effectively up-sell and a snap of a tag (or, in some cases, a plain old bar code) can cross-sell from the floor). We anticipate that tablet kiosks will load up everything from a video from a fashion designer (as soon become as common as promotional displays, creating an does Macy’s Rachel Roy line, tagged by Microsoft) to an instant expansive new way for brands to showcase custom and out-of- sweepstakes prize (as August 2010 readers of Allure magazine stock products, while enlivening the exploration and decision readers discovered when they scanned to win their share of processes for shoppers. $725,000 of free beauty booty). Tags can go anywhere you can leave an imprint, from bus stop displays to cocktail napkins. The result: The entire world is now a potential shopping cart. RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 12

RESOURCE INTERACTIVE THINK ABLE MOBILE Final Thought All of the pieces are in place to turn mobile engagement from a speculative cost into a core element of profitable digital execution strategies. Retailers, consumer products brands, and manufacturers alike are leaping into mobile, sometimes without looking deeply at the increasingly available array of tools and options which are already familiar to many US consumers. By the end of 2011, an estimated one billion people around the world will be connected to the mobile web, and 50 percent of all Americans will own a smartphone. Because of the explosion of web-enabled mobile devices, mobile usage is now on a hockey-stick trajectory: Searches on smartphones and tablets have increased 4x in the last year, and the world of mobile apps continues to engage mobile users in their every waking Connect with Stephen—Make sure your brand isn’t left behind. moment—125 years’ worth of Angry Birds is played every day! Let us help you look before you leap. —The Official Google Blog, Feb 2011. Stephen Burke Vice President, Mobile Email: sburke@resource.com Phone: 614-621-2888 RESOURCE INTERACTIVE | ©2011 Point of View | Mobile 13

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Mobile: The Great Connector

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