Finding the Silver Bullet for Retail Mobility

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Cognizant and Kony bring to you some provocative perspectives on how to build a unified business and IT strategy and approach to future-proof retailer mobile investments given that Smartphones have permanently changed how consumers manage their lives, including how they shop. We believe there’s a better way for retailers to squeeze value out of the interactive touch points they have with shoppers via Smartphones. It is time retailers moved beyond the basics and create value-added mobile experiences. Key takeaways-
• How mobility has altered consumers’ behavior
• How the top 100 retailers have responded to customer mobility
• Practical principles for building successful retail mobile strategies
• Go-to-market options and learnings from other industries

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  • Source: http://www.cartoonstock.com/directory/s/smartphone.asp
  • Source: Telenav Survey
  • Source: http://www.technologyreview.com/business/40321/
  • In a typical month, how often do you use the following resources to help you make informed purchase decisions of products in the following category(s)?
  • ~3 minKony’s Change Once, Change Everywhere abilities give you significantly better TCO than building it yourself You get the best of both worlds: the time to market and stability of buying, with the flexibility and agility of custom development Plus, you’re future proofed: we let you focus on your product roadmap, rather than device fragmentation Source: Gartner
  • ComScore Mobile Lens Data (http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/)
  • Here the 70/30 rule applies to maintaining 70% of the parent brand look-and-feel and identity, but reserving 30% to be new and innovative, and different
  • Finding the Silver Bullet for Retail Mobility

    1. 1. Finding the Silver Bullet For Retail MobilityAugust 16, 2012
    2. 2. The State of Retail MobilityShannon WarnerCognizantShannon.Warner@Cognizant.com
    3. 3. What’s cooking?Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 3 3
    4. 4. Mobility is having a profound impact on consumers’ lives Source: Telenav 2011Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 4 4
    5. 5. Fueled by the smartphone, mobile devices are becoming the screen of choice for customers Today 7.3 Billion Vs. 10 Billion Estimated global population in Estimated number of smartphones 2016 and tablets worldwide by 2016 – United Nations – CiscoCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 5 5
    6. 6. In fact, smartphone and tablet adoption rates surpass that of any other technology in recent human history!Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 6 6
    7. 7. Unprecedented adoption is forcing retailers to embrace mobility to stay relevant to their customers We asked retailers… What is the impact of the following factors on your consumer mobile strategy? Source: RIS / Cognizant Survey, March 2012Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 7 7
    8. 8. Retailers are embracing mobility initiatives with an unaccustomed speed We asked retailers… What option best describes your approach to bringing your mobile offerings to market? Source: RIS / Cognizant Survey, March 2012Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 8 8
    9. 9. It is thus no surprise that mobility is already mainstream in retail Source: Cognizant ResearchCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 9 9
    10. 10. Retailers have however adopted a scatter- shot approach to which mobile platforms they support Source: Cognizant ResearchCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 10 10
    11. 11. Retailers offer a broad range of features… Source: Cognizant ResearchCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 11 11
    12. 12. …Retailer mobile apps have fallen short of customer expectations Source: Cognizant ResearchCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 12 12
    13. 13. Shoppers like to use digital resources to make purchase decisions, but not mobile and tablet apps Chart Title Store’s website 3.0 2.5 2.0 1.5 1.0 Other Internet 0.5 Consumables Store’s mobile searches and - smartphone app Specialty websites Rank order of resources used to make purchase decisions for specialty products Other Internet searches and websites 1st Store’s tablet Store’s website 2nd Print materials 3rd Information provided on product packaging 4th Television 5th Shelf signs or interactive product displays 6th Friends and family 7th Store associates 8th Social media 9th Store’s mobile smartphone app 10thSource: Cognizant/RIS 2012 Shopper Study Store’s tablet 11th Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 13 13
    14. 14. Retailers are threatened by 3rd party mobile apps as 5% of shoppers use their mobile phone to find product elsewhere. We asked shoppers… What do you do when you cant find what you want? 9% Leave the store and look for the same product elsewhere Leave the store and look for the same product during a future visit 20% Ask an associate to help you locate 49% the right item Purchase an alternative item available in that store Use your mobile phone to identify 6% the product elsewhere Check the retailer’s in-store kiosk (if 5% available) 11%Source: Cognizant/RIS 2012 Shopper Study Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 14 14
    15. 15. Although help from a live person is most preferred, shoppers are beginning to consider mobile assistance while shopping We asked shoppers… When you need assistance while shopping, how likely are you to use the following customer service options?” Call customer service # 4.00 3.50 3.00 Go to in-store customer Social media page 2.50 service desk 2.00 1.50 1.00 18-33 0.50 34-45 - 46-64 65 and over Mobile text message Online chat Mobile chat Video chatSource: Cognizant/RIS 2012 Shopper Study Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 15 15
    16. 16. Shoppers want personalized experiences while in-store We asked shoppers… When shopping for specialty products, how much would each of the following techniques to personalize your shopping experience influence your shopping choices, if available? - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Special treatment in the store based on loyalty 3.44 Offers delivered in a store that are personalized 3.17 Acknowledgement of status as a highly valued customer while in the 3.15 store Website recommendations based on other products you searched for 2.91 E-mails with personalized messages 2.88 Website recommendations based on products others have searched 2.76 for Personal greeting in the store 2.72 Offers delivered via a mobile phone that are personalized 2.26Source: Cognizant/RIS 2012 Shopper Study Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 16 16
    17. 17. …But shoppers are skeptical about sharing information, including using geo-location We asked shoppers… How willing are you to share the following information with stores in order to have a more personalized shopping experience? 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 Information tracked by loyalty number 2.89 Name, address, e-mail for website account 2.69 E-mail collected at point of sale 2.60 Phone number collected at point of sale 2.26 Have cookies placed on your computer to allow tracking 1.86 Locations you are at tracked using geo location service on 1.83 your phone Information tracked by credit card number 1.82Source: Cognizant/RIS 2012 Shopper Study Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 17 17
    18. 18. The ever evolving and complex mobile ecosystem is a key challenge in developing a compelling mobile offering What are the primary challenges your company faces to succeed with its customer-facing mobile strategy? Source: RIS / Cognizant Survey, March 2012Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 18 18
    19. 19. Despite challenges, success can be achieved by taking a comprehensive, 360 degree view of mobile1 Move fast Else your customers and competition will leave you behind2 Establish an enterprise mobile strategy Piecemeal, scatter-shot approaches just don’t work3 Don’t be afraid to experiment and innovate Avoid a “Me-Too’ approach; look for experiences for your unique context4 Future proof your mobile offerings Invest in processes and technologies that are flexible and scalableCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 19 19
    20. 20. Practical Mobility in Retail - Design for SuccessChris DeanKony Solutions, Inc.chris.dean@kony.com
    21. 21. Kony Overview Markets: Multi-Channel Enterprise Application Platform Financials: Multi-Channel B2C & B2E Apps 6X growth over last 2 years Multi-Channel Application Management 2010 2011 2012 Verticals: Financial Services |Travel | Retail | Automotive Healthcare | Utilities | Telecommunications Manufacturing | Oil & Gas | Media & Entertainment | Transportation Employees: From 200 to 950 employees Customers: Over 1 billion end user sessions annually More than 60 blue-chip deployments 2010 2011 2012 Deployed in 38 countries 2007 2008 2010 2011 2012 2015 Founded Launch Cash Flow Positive 4X Topline Growth 275% ACV Growth $500M Company Kony Mobile App Management Kony Apps Feature Complete, Extensible, Configurable Offices: KonyOne Platform Write Once, Run Everywhere From 2 to 10 offices worldwideCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 21 21
    22. 22. Change Once, Change EverywhereEffort New Functionality Add Security Alternative Solutions Add Languages Update Features Custom App + Mobile Web OS Update 40% – 70% TCO Savings Time Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 22 22
    23. 23. Mobile Retail Design
    24. 24. Mobile Web vs. Native – Industry Avgs  More channels = more customers  Mobile web represents half of all traffic  Native apps together also represent half of traffic  Adding any channel permanently increases visits – some customers will still only interact with you in a particular channel  Conversion rates vary by channel  iPhone native apps 30% more than mobile web  Rates likely to dramatically change with short noticeCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 24 24 24
    25. 25. Mistakes in Mobile Retail  Not solving pain points for the consumer  Starbucks, for example, was reducing in-store POS times, not maximizing loyalty card adoption with its app  Siloed mobile efforts  Consumers – loyalty or not – want a ‘joined-up’ experience across channels, and want to interact with you the way they want, not the way you want  Under-resourced team  Mobile isn’t going anywhere. ‘Well, let’s try it and if it doesn’t work at least we tried’ is not a strategy  Transactional or Informational ?  Driving consumers to transact is often incompatible design-wise with a brand awareness/informational appCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 25 25
    26. 26. Mistakes in Mobile Retail (cont’d)  Poor Design  Apps are important but are currently being designed and deployed poorly by a many retailers  Reasons for regular and ‘sticky’ engagement are few  Gamification elements missing  Loyalty programs are chunky  Basic, Intermediate, Advanced ‘tickles’ and rewards  Few mobile-specific, well integrated campaigns  Consuming campaigns and offers should be seamless across all digital channels  Disconnected experiences across channels  Consistent information, experiences and ‘remember me’ lacking. Apps different device-to-deviceCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 26 26
    27. 27. Gamification & The Changing face of Apps How long to reach 1 million users ? AOL took 9 years Facebook took 9 months DrawSomething took 9 daysCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 27 27
    28. 28. Design Principles for Personalization  Look-and-feel – 70/30 rule  Implement visual appeal  Color coding, visual clues, icon usage and branding  Homogenous design principles  Keep it simple - Less text, single way to do things, intuitive navigation/flow  User awareness – Maintain context ; remember me, minimize user entry  Preferences  Let user create customized experience  Template preferences based on user type – defaults  Temporal/Spatial/User awareness – Date ; Time ; Location ; User ; User type ; User’s process step  Local data storageCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 28 28 28
    29. 29. Release Options and Challenges Big Bang – mobilize all or most desktop web features at launch  Market changing during development  Complexity risks delays  Risk releasing nothing Agile – quickly release a ‘table stakes’ mobile version  Initial release risks becoming the only release  Maintenance challenges cannibalize innovation  Device variations increase complexity  Offering could fall behind Wait and See – watch and learn from your competitors prior to investment  “Fast followers” difficult to catch up  Difficult to leapfrog the competition  Hard to gain experience  Make similar mistakes as early movers  Lose customers Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 29 29 29
    30. 30. Kony for Retail
    31. 31. Kony Mobile Retail  Complete Secure Retail Solution  Fully Functional, pre-built Feature Set  Highly Brand-able  Social Media Integration  Configurable and Extensible  Universal Integration  Internationalization Ready  Full Channel Support  Native Mobile Devices  Mobile Web  Tablets Reach All Your CustomersCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 31 31 31
    32. 32. Questions?  More information on www.kony.com/resources  www.kony.com sales@kony.comCopyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 32 32 32
    33. 33. Thank you

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