Mobile Marketing and Commerce Insights
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This is a presentation that my team at DEG created in collaboration with MEC.
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Mobile Marketing and Commerce Insights
- 1. Mobile 101: Marketing and Commerce Insights 27 February 2014
- 2. The Digital Ecosystem in 2007
- 3. Connected Surfaces Connected Mobile Games Connected Consoles Laptop Desktop Digital Kiosks & Social Machines Digital Out of Home, Theaters, Connected TV Smartphones Image Codes Tablets The Digital Ecosystem in 2014 Wearable Technology Connected Cars
- 6. 62.6 93.1 115.8 140 159.9 178 193.7 207.4 0 50 100 150 200 250 2010 2011 2012 2013 2014 2015 2016 2017 20.2% Half of all Americans own a smartphone 29.7% 36.6% 45% 50.1% 55.4.% 59.8% Smartphone ownership in the US 2010-17 | March 2013 (millions and % of population) Source: 2013 eMarketer, Inc. 63.5%
- 7. 93.9 123.1 143.2 157.1 168.1 178 0 20 40 60 80 100 120 140 160 180 200 2012 2013 2014 2015 2016 2017 29.9% 38.9% 44.9% 48.9% 51.9% 54.6% Nearly a third own a tablet or eReader Tablet ownership in the US 2012-17 | March 2013 (millions and % of population) Source: 2013 eMarketer, Inc.
- 8. Increasingly, our mobile devices are our preferred access points to the web Source: Jumptap and comScore, ―Screen Jumpin‖ September 5, 2013 Time Spent Online Among US Internet Users by Platform and Demographic, April 20 % of total minutes Total 18-24 Males 25-49 Females 25-49 Total 50+ Total PC Smartphone Tablet 41% 55% 59% 49% 39% 50% 9% 35% 10% 11% 12% 16% 50% 25% 39%
- 9. Tablets play a slightly different role, primarily used at home for leisurely browsing and online shopping activities.
- 10. Tablets play a slightly different role Smartphones are used throughout the day and play a key role in making real-time purchase decisions that happen in the store or, most often later online. Purchases on smartphones are increasing but still outpaced by tablets and desktop. Tablets, on the other hand, see peak usage during leisure hours and represent greater engagement with site content as well as more frequent and bigger ticket purchases, hence the term couch commerce.
- 11. "Tablets surpassing portables in 2013, and total PCs in 2015, marks a significant change in consumer attitudes about computer devices and the applications and ecosystems that power them.‖ - Ryan Reith, Program Manager for IDC's Mobility Trackers
- 12. Pew surveyed 2,252 U.S. adults, and found that 34% owned a tablet, up from: – 18% in 2012 – 8% in 2011 – 3% in 2010 Adults ages 35 to 44 own tablets at a higher rate than any other age category Tablet Ownership
- 15. A customer’s mobile context consists of: – Preferences: the history and personal decisions the customer has shared with you or with his social networks – Attitudes: the feelings or emotions implied by the customer’s actions and logistics – Situation: the current location, altitude, environmental conditions and speed the customer is experiencing The Future of Mobile is Context
- 16. Context Drives Device Choices The amount of time we have or need The goal we want to accomplish Our location Our attitude and state of mind
- 17. The Role of Mobile in Retail
- 18. 34% of online traffic & 16% of online sales come from mobile devices Source: eMarketer
- 19. Mobile is often focused on discovery Source: Nielsen 2013 Mobile has a greater impact on indirect commerce (in-store use) while tablets play a deeper role in research and direct commerce.
- 20. Smartphones play a pivotal role in the shopping process 40% of US consumers report using their devices for showrooming, the process of shopping for a better deal or product online while in-store. For CPG brands, smartphone-optimized .com content (brand site, microsites, landing pages) is essential to capturing the attention and intent of these consumers, particularly at point of sale.
- 21. Showrooming, while unsettling for retailers, provides excellent insight into crafting mobile experiences Use of mobile in showrooming To compare prices with another retailer 32 To ask my friends or family what they would recommend buying 16 To take a photo of the product or note down product details to help me remember it for later 22 To look up product information or comparisons 18 To check product availability at another retailer 18 To check if it was easier/more convenient to order the product online 15 To check the range of products at another retailer 14 To receive advice or information from another retailer 8 To purchase the product via an app or website while I was still in the store 7 North America
- 22. Mobile’s New Role in E-Commerce The traditional purchase funnel is being replaced by an “always on” mobile shopping life cycle http://blogs.hbr.org/cs/2013/06/the_mobile_shopping_life_cycle.html
- 23. Mobile’s Influence on Retail Sales Mobile alone will influence $700B in sales by 2016
- 24. The Role of Mobile in Omnichannel
- 25. Retailers Lag Behind Consumers’ Omnichannel Desires • Retailers have to overcome a variety of hurdles to create an omnichannel experience, while have customers have already made the leap. Consumers still make most purchases in a physical store, but they’re hopping from device to device as they gather product information and recommendations before leaving home. Even while in a physical store, many augment their shopping by looking for information via mobile devices. • More than any other technology, smartphones and tablets are changing the shopping experience for consumers, letting them bridge the online and offline experience—even when stores fail to make it easy for them to do so. ―Consumers are a couple of steps ahead of the brand,‖ said Tony King, founder of luxury retail consultancy King & Partners. ―People will check something seven or eight times online before they actually buy … [using] several devices. They are experiencing the brand across all those different channels.‖
- 26. Mobile Coupons Mobile coupons are driving mobile commerce growth
- 27. Mobile Coupons
- 28. Mobile Loyalty Programs/Location Check In Loyalty
- 29. Mobile Checkout
- 30. Mobile Point of Sale
- 31. Mobile Checkout Starbucks averages over one million mobile transactions per week since launching its mobile payment app in 2011.
- 33. Mobile Supported Sales Tesco Subway stores transformed waiting time into shopping time.
- 34. Mobile Wallet
- 36. Mobile sites are best for purchasing products, but mobile apps can be value add, brand relevant content for consumers 80% of smartphone owners want more mobile-optimized product information while they’re shopping in stores. Nearly 50% of shoppers believe they are better informed than store associates. Mobile Retail Apps
- 37. Skullcandy.com
- 39. Mobile App Example – Frank & Oak
- 40. Mobile App Example – Touch of Modern
- 41. The Mobile Commerce Ecosystem
- 42. In Summary … ―The future of mobile is the future of everything.‖ - Matt Galligan, co-founder of SimpleGeo
Editor's Notes
- The objective today’s presentation is to provide a primer on the current and immediate term landscape of mobile, mobile marketing and commerce.
- Remember when accessing the internet was only possible from a desktop computer (with dial-up on a phone-line)?
- Things have certainly changed quite a bit in just 7 years. Consumers have more ways than ever to access the internet. This in turn means that they’re simply more fragmented and harder to reach.
- This is a picture of the scene in 2005 when Pope Benedict was presented to the world in St. Peter’s Square.
- Just 8 years later, this picture is markedly different when Pope Francis was presented in the same exact square. And this image represents how much has changed with mobile!
- Everyone has a cell phone, but now we’re seeing that ½ of all people in the US have a smartphone. This means that they’re able to access the internet whenever and wherever.
- Tablet ownership is at an all time high as well. Giving consumers access in a larger format than their smartphone.
- Due to the on-demand nature of the world we live in, it’s no surprise that people are spending just as much time accessing the web via a mobile device as they do with a PC. Advertisers that are focusing all their digital dollars in ONLINE are missing out on about half the time they could be spending talking to consumers digitally.
- Forrester defines Context as three pieces of important data: PreferencesAttitudesSituation As marketers, we’re likely familiar in honoring the first two (Preferences & Attitudes), but “Situation” comes from data captured in mobile engagements. Examples of data from “situation”: Location data: we could send a message to you based on WHERE you are as a consumer (assuming you’ve opted-in). Altitude: if you’re on a plane or on the ground, we can send you different messagesEnvironmental conditions: if we know that you’re in a rainy location, we could send you an offer for an umbrella. If you’re in a sunny location that day, we wouldn’t send the umbrella offer. Speed: if you’re in a car or train going 90 km/hour, what message should we send that might be different if you’re walking on a street past one of our stores? All of this “situation” data adds a new level of awareness about consumers. And sets the stage for mobile.
- As we have more and more devices, marketers find that consumers shift between devices throughout the day. We see three types of device use: Solo (using one device at the time) Sequential (using a laptop to do price research before going into the retail store, then a handset when in-store) Concurrent (e.g. watching a television while browsing on a laptop/tablet AND texting on a phone) Marketers not only have to pay attnetion to attitudes, preferences and situations. . .but ALSO to device shifting!
- Consumers are spending a lot of time on their mobile devices, but how are their mobile actions impacting overall site traffic? Pretty significant traffic is coming from smartphones and tablets (34%). This means that without a mobile strategy/plan we are potentially missing out on 16% of online sales.
- Mobile devices are used differently depending on the device. The larger format tablets tend to be used more for researching and purchasing, whereas mobile phones tend to be shopping companions while in-store (comparison/price shopping, keeping lists, mobile coupons, etc)
- As previously stated, smartphones are shopping companions, playing a big role in the shopping process. Due to the way that consumers are comparison shopping while in-store it’s extremely important for retailers and CPG brands to optimize their mobile sites to allow for the best possible consumer experience that hopefully can then result in a sale.
- But only 7% said they go on to purchase the product via their mobile phone while still in the store.
- The Set-Up: The Pre-Buy. This is the mobile research phase, as consumers use smartphones and tablets before they even consider going to the store. Mobile is a pull rather than a push medium. Marketers should position information and messages about their products to be pulled by the consumer according to that person's time frame, mind-set, and location.The Move: In Transit. This phase occurs when the consumer is on the way to a store or running an errand. With new location-based capabilities, marketers can leverage information, such as smartphone location and speed, to send highly targeted and relevant messages to consumers who have opted in to receive valuable offers. Marketers will have to create value for consumers, to provide an incentive for them to leave their location "turned on" in any given app.The Push: On Location. This occurs at a brick-and-mortar store. In the early days of the internet, brick & mortar was a detriment to business, since online-only retailers could sell directly to consumers with fewer associated costs. With mobile, brick & mortar becomes an asset. But while some retailers are leveraging the ability to interact, most are still missing the opportunity to identify and interact with mobile shoppers while they are in the store.The Play: Selection Process. This is when customers are near the actual product they may be considering buying. With what is known as proximity marketing, marketers can use various technologies to interact in real time with customers, with the potential even to move to real-time pricing. For example, a number of customers walking by a particular product might receive a real-time offer such as a discount on it. Based on real-time awareness of inventory, the offer could be changed or discontinued before the next group walks by. Consumers already can scan barcodes on products and receive on-the-spot price comparisons with easy-to-use but sophisticated technologies.The Wrap: Point of Purchase. Here is yet another chance to sway the buyer. As businesses adopt more mobile self-checkout options and mobile capabilities are embedded into point-of-sales systems, offers and counteroffers can be presented to consumers during the buying and checkout process.The Takeaway: Post-Purchase. This occurs after the purchase, as consumers exchange photos, videos, and information of their recent purchase and share them via their mobile device with friends and colleagues, soliciting and receiving feedback. The challenge for marketers is to become part of the conversation at this stage.
- Based on recent Deloitte study mobile phones influence 5% of annual retail sales ($159Billion) Deloitte predicts mobile devices’ influence will grow to represent 19 percent of total store sales by 2016, amounting to $689 billion in mobile-influenced sales. By comparison, direct mobile commerce sales will pass the $30 billion mark by that time, according to industry estimates. Nearly half (48 percent) of smartphone owners surveyed who use their devices for in-store shopping say it has influenced their decision to purchase an item in a store, and the study shows that consumers’ smartphone use tends to be highest at or near the point of purchase. More than 6 out of 10 (61 percent) of smartphone owners who use their devices to shop have done so while shopping at the store, and more than half (52 percent) reach for their phones on the way to the store.Smartphone-toting consumers appear more likely to make a purchase than those who do not own one or do not use it to assist in-store shopping. The mobile influence factor is different by category, with electronics, GM, Clothing, and Food topping the list.
- Yet when it comes to implementing this vision, few retailers are accomplishing it. In the same survey, RSR asked retailers the extent to which they had synchronized their channels across different areas of omnichannel strategy. In all 13 areas, less than one in five respondents reported full synchronization. In no area did more than half report full synchronization or full synchronization in progress. Perhaps most notably, only a third of companies had or said they would soon have a fully synchronized customer experience across all channels.
- The number of US mobile coupon users will rise from 12.3 million in 2010 to 53.2 million in 2014, driven by the rapid adoption of smartphones. (Source: eMarketer, 2013)
- Mobile coupons can drive foot traffic back in the storeCould potentially close the loop on mobile to offline purchaseCoupons should not be thought of as a discounting vehicle, but content with an offer
- (Source: Moosylvania, 2013)(Source: Motorola, 2013)
- Adds contextual value by your location
- “Your mobile device will touch every part of your life: it will be your wallet, your identity, your car keys, house keys, communication, social life and far more. All of these technologies already exist, but they will become more pervasive and engrained in everyday society in just a few short years."