Finding the Silver Bullet for Retail Mobility

Finding the Silver Bullet For Retail Mobility
August 16, 2012

The State of Retail Mobility

Shannon Warner
Cognizant
Shannon.Warner@Cognizant.com

What’s cooking?

Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 3 3

Mobility is having a profound impact on
consumers’ lives

Source: Telenav 2011


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 – Cisco


In fact, smartphone and tablet adoption rates
surpass that of any other technology in recent
human history!


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 2012


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?



It is thus no surprise that mobility is
already mainstream in retail

Source: Cognizant Research


Retailers have however adopted a scatter-
shot approach to which mobile platforms
they support



Retailers offer a broad range of features…



…Retailer mobile apps have fallen short of
customer expectations



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 10th
Source: Cognizant/RIS 2012 Shopper Study Store’s tablet 11th


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 can't 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


Although help from a live person is most
preferred, shoppers are beginning to consider
mobile assistance while shopping

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 chat


Shoppers want personalized experiences
while
in-store
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 2.26



…But shoppers are skeptical about sharing
information, including using geo-location
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 1.82



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?



Despite challenges, success can be achieved
by taking a comprehensive, 360 degree view
of mobile

1
Move fast
Else your customers and competition will leave you behind

2
Establish an enterprise mobile strategy
Piecemeal, scatter-shot approaches just don’t work

3
Don’t be afraid to experiment and innovate
Avoid a “Me-Too’ approach; look for experiences for your unique context

4
Future proof your mobile offerings
Invest in processes and technologies that are flexible and scalable


Practical Mobility in Retail - Design for Success

Chris Dean
Kony Solutions, Inc.
chris.dean@kony.com

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 worldwide


Change Once, Change Everywhere

Effort New Functionality
Add Security Alternative
Solutions

Add Languages

Update Features
Custom App + Mobile Web
OS Update
40% – 70% TCO Savings

Time

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 notice

Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 24
24 24

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 app


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-device


Gamification & The Changing face of Apps

How long to reach 1 million users ?

AOL took 9 years

Facebook took 9 months

DrawSomething took 9 days


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 storage

Copyright © 2012 Kony Solutions, Inc. CONFIDENTIAL 28 28 28

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


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 Customers

Questions?

 More information on www.kony.com/resources
 www.kony.com
sales@kony.com


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