Keeping up with the mobile consumer
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Keeping up with the mobile consumer Keeping up with the mobile consumer Document Transcript

  • Keeping Up with the Mobile Consumer2011 Benchmark ReportNikki Baird and Steve Rowen, Managing PartnersSeptember 2011 Sponsored by:
  • Executive Summary In RSRs collective years in the retail industry we have rarely seen a technology act as such a galvanizing force on the retail industry - and in a positive way - than consumer mobile. It is a sea- change in how consumers engage with retailers, for the first time truly bringing together the physical and the virtual in ways that cross-channel efforts to-date have not. And it is relatively inexpensive to experiment with on the part of retailers. But so far, it is a Retail Winners game (those respondents that outperform their peers in year-over-year sales growth).Business Challenges Overall respondents report that they havent yet figured out how to identify and accommodate different customer segments, that they have difficulty coordinating the mobile experience with other channels, and that the consumer technology landscape is evolving too quickly. While that makes for a very challenging environment for developing a mobile strategy, perception of ensuing challenges vary drastically by retailer performance and size. The largest retailers are more challenged by the difficulty of coordinating across channels, while Winners are more likely to focus on a more definable business need.Opportunities Optimism about the channel is widespread. Overall, 51% of respondents say that their mobile sales will grow "significantly" in the next 3 years, and another 42% expect at least some growth, if not a "significant" amount. The top three opportunities have a natural focus on the customer: deeper customer engagement to drive loyalty, the opportunity to drive innovation through mobile offerings, and deeper customer engagement to drive sales. More than twice as many Winners as their peers report that they have been using consumer mobile and either are starting to get an idea of what to measure or already feel comfortable with the results that theyre getting.Organizational Inhibitors Resource challenges top the list of reasons why retailers haven’t seized more of the opportunities they see mobile solutions providing. In ascending order of difficulty, the top-three roadblocks are having the necessary resources to manage all of the available eCommerce and Mobile opportunities, overall budgetary constraints, and difficulty in quantifying Return on Investment. More problematic, however, are the number of retailers who are frozen in their tracks due to the rapid pace at which mobile technologies change. Sixty percent of retailers admit that a single executive, charged with ensuring the customer has a seamless experience across whichever channel – or technology – she chooses to engage is vital to becoming “unstuck.”Technology Enablers Retailers are vaguely ambivalent as to what a strong mobile offering even looks like. While 79% know that a cut and paste version of a full eCommerce site is simply not a viable mobile strategy, the field is split nearly down the middle as to the value of a downloadable app. Though a vast majority of retailers ascribe value to retailer-provided wireless in stores, very few have yet to do anything about it. While technology adoption is still in very early days, twenty three percent of all retailers have budget set aside to ensure that the mobile developments they take on are repeatable across multiple platforms; 21% already have budgeted for mobile capabilities delivered via the cloud (or a Software as a Service model). All retailers recognize that mobile devices, their capabilities, and shoppers’ ii
  • willingness to use them are very difficult to predict, but Winners understand that “the next big thing” in mobile devices – or platforms – may be just around the corner at any given time.BOOTstrap Recommendations mCommerces learning curve will be much shorter, but it will also be more complex - a moving target on the process side, as consumers try to figure out how to best use mobile as part of the shopping process, and a moving target on the technology side, as leaps and bounds in technology constantly change what mobile phones are capable of doing. As a result, we offer the following baseline recommendations, explained in detail at the end of this report: Use consumers to help shape your strategy and make sure what you’ve done works, carefully consider/approach a Customer Experience Officer, rethink wireless, strategize across platforms, and most importantly, don’t be afraid to get in the mobile game. iii
  • Table of Contents Executive Summary .......................................................................................................................... ii Table of Contents ............................................................................................................................ iv Figures .............................................................................................................................................. v Research Overview ......................................................................................................................... 1 Why This Study Was Conducted ................................................................................................. 1 Early Mobile Efforts are a Winners Game ................................................................................... 1 Methodology................................................................................................................................. 3 Defining Winners and Why They Win, and Why Laggards Fail ................................................... 3 Survey Respondent Characteristics ............................................................................................ 3 Business Challenges ....................................................................................................................... 6 The Consumer Made Us Do It ..................................................................................................... 6 Uncertainty Abounds .................................................................................................................... 7 What about the Impact on the Store? .......................................................................................... 8 Opportunities ................................................................................................................................. 10 Engagement, Innovation, and . . . Engagement ........................................................................ 10 Were Working On It ................................................................................................................... 10 Defining Consumer Mobile Capabilities ..................................................................................... 11 Phone-Friendly ....................................................................................................................... 12 Personalized ........................................................................................................................... 12 The Bottom of the List ................................................................................................................ 13 Winners vs. Peers: Day and Night ............................................................................................. 13 The Lowest-Hanging Fruit Gets Picked Quickly ........................................................................ 14 Organizational Inhibitors ................................................................................................................ 17 Mobile Has an Uphill Journey .................................................................................................... 17 The Way Forward ...................................................................................................................... 18 More Players Required .............................................................................................................. 19 Technology Enablers ..................................................................................................................... 20 To App, or Not to App ................................................................................................................ 20 Winners Keep Their Eye on the Ball .......................................................................................... 20 The Wireless Story Continues ................................................................................................... 22 Early Days .................................................................................................................................. 23 Too Soon to Lock In ................................................................................................................... 24 BOOTstrap Recommendations ..................................................................................................... 25 Dont Let Speed or Change Frighten You .................................................................................. 25 Use Consumers to Help Shape your Strategy ........................................................................... 25 Carefully Consider/Approach a Customer Experience Officer .................................................. 25 Rethink Wireless ........................................................................................................................ 26 Strategize Across Platform ........................................................................................................ 26 Appendix A: RSR’s Research Methodology .................................................................................... a Appendix B: About Our Sponsors.................................................................................................... b Appendix C: About RSR Research................................................................................................... c iv
  • Figures Figure 1: Retail Winners See Early Sales From Mobile .................................................................. 2 Figure 2: Winners Cite Mobile Presence More Often Than Peers .................................................. 2 Figure 3: Skating Towards the Consumer Mobile Puck .................................................................. 6 Figure 4: Uncertain End-Users, Business Process, and Technology ............................................. 7 Figure 5: Consumers Just Move Too Fast ...................................................................................... 8 Figure 6: Consumer Price-Check Ignorance ................................................................................... 9 Figure 7: A Whiff of Opportunity for Differentiation........................................................................ 10 Figure 8: A Race Up the Mobile Learning Curve........................................................................... 11 Figure 9: Top Mobile Opportunities Leverage the Phone or Personalization ............................... 12 Figure 10: Payment Types Near the Bottom of the Priority List .................................................... 13 Figure 11: Performance-Based Priorities: Purchasing vs. Promoting ........................................... 14 Figure 12: Fast Progress Against Capability Gaps ....................................................................... 15 Figure 13: Big Spending Plans on Mobile Capabilities.................................................................. 16 Figure 14: Stuck in the Mud ........................................................................................................... 17 Figure 15: Much Help Needed....................................................................................................... 18 Figure 16: Input in Demand ........................................................................................................... 19 Figure 17: Lots of Neutrality .......................................................................................................... 20 Figure 18: Device Sales Dictate Platform Importance................................................................... 21 Figure 19: Wireless Value Drastically Outweighs Adoption and Plans ......................................... 22 Figure 20: Follow the Budget and Plans ....................................................................................... 23 Figure 21: Winners Take the Long View ....................................................................................... 24 v
  • Research Overview Why This Study Was Conducted Consumer mobile. Can you think of a hotter topic in retail right now? In RSRs collective years in the retail industry we have rarely seen a technology act as such a galvanizing force on the retail industry - and in a positive way. You could perhaps argue that eCommerce was such a force, but in many ways it was an isolated initial event - retailers established a separate team, often in a separate building, and tasked them with figuring out "this internet thing." Stores were relatively unaffected by the eCommerce business in the beginning - and stores to this day are where most of the action is, when measured by sales. You could argue that Y2K was a galvanizing force on the industry, but it was not a positive one. Yes, it caused retailers to upgrade their point of sale software and take a fresh look at some very old systems on their books. And yes, in some cases it led to an increase in capability that made some of eCommerce and cross-channel commerce possible today. But it wasnt customer- focused. It was something retailers had to do in order to keep their systems from blowing up when 1999 turned over to 2000. In fact, between Y2K, Sarbannes-Oxley and PCI, its amazing that retailers were able to do anything innovative with the customer experience in the first decade of this century. That is why consumer mobile is so exciting for retail. It is a sea-change in how consumers engage with retailers - for the first time truly bringing together the physical and the virtual in ways that cross-channel efforts to-date have not. And it is relatively inexpensive to experiment with on the part of retailers. Anecdotally, CIOs have said that they can get into the consumer mobile space for the low-low starting price of $15-30,000 for an app. Even better, with all of their regulatory- or emergency-driven investments mostly behind them, retailers are ready and willing to spend some tech money on the customer experience - perfect timing for mobile. But that leads us to the question of this report. Within the retail enterprise is consumer mobile being pursued like eCommerce - a dedicated team, their own building and t-shirt, hundreds of thousands of dollars poured into it? Or is it more like initial social media efforts - the "intern" does it, or a Russian sub-contractor who whipped up a mobile app for pennies on the dollar? Or is it strategic - designed from the outset to be an integrated part of retails cross-channel strategy? And what capabilities are retailers pursuing in their mobile efforts? Are they driving innovation, or are they responding - panic-mode - to a more informed and demanding mobile-engaged consumer? Early Mobile Efforts are a Winners Game There is no doubt that mobile is "hot" in retail right now. In our overall look at cross-channel commerce strategies this year, we found that mobile was by far the fastest-growing channel for 1 retailers. But it is also a Retail Winners game (those respondents that outperform their peers in year-over-year sales growth). Over half of Retail Winners report that they are seeing sales from their mobile channel vs. 37% of their peers (Figure 1). 1 Enabling Buy Anywhere/Get Anywhere: The Future of Cross Channel, RSR Research, July 2011 1
  • Figure 1: Retail Winners See Early Sales from Mobile What percent of your annual sales come from the mobile channel? More than 5% 3-5% Less than 2% None Don’t know Winners 10% 17% 24% 41% 7% Others 5% 5% 27% 55% 9% Source: RSR Research, September 2011Optimism about the channel is not limited to Winners. Overall, 51% of respondents say that theirmobile sales will grow "significantly" in the next 3 years, and another 42% expect at least somegrowth, if not a "significant" amount.However, it is Winners that have made the strongest moves into the mobile channel (Figure 2).Figure 2: Winners Cite Mobile Presence More Often than Peers What Channels do you operate today? Winners Others Stores 83% 86% Catalog 38% 33% Online/eCommerce 72% 81% Dedicated mobile/mCommerce site 31% 10% Mobile SMS campaigns 28% 38% Downloadable mobile app 28% 19% Social channels 48% 48% Source: RSR Research, September 2011Winners outnumber their peers nearly 3 to 1 in the number of respondents reporting that theycurrently operate a dedicated mobile site, and are also more likely to report having a 2
  • downloadable mobile app. Their peers, on the other hand, are most likely to report their mobilepresence is an SMS campaign, rather than something targeted to a smartphone.MethodologyRSR uses its own model, called the “BOOT,” to analyze Retail Industry issues. We build thismodel with our survey instruments. Appendix A contains a full explanation of the methodology.In our surveys, we continue to find differences in the thought processes, actions, and decisionsmade by retailers who outperform their competitors and the industry at large – Retail Winners.The BOOT model helps us better understand the behavioral and technological differences thatdrive sustainable sales improvements and successful execution of brand vision.Defining Winners and Why They Win, and Why Laggards FailOur definition of Retail Winners is straightforward. We judge retailers by year-over-yearcomparable store/channel sales improvements. Assuming industry average comparable store/channel sales growth of six percent in 2010 compared to 2009, we define those with salesabove this hurdle as “Winners,” those at this sales growth rate as “average,” and those below thissales growth rate as “laggards” or “also-rans.” It is consistent throughout much of RSR’s researchfindings that Winners don’t merely do the same things better, they tend to do different things.They think differently. They plan differently. They respond differently.Laggards also tend to think differently. They may have spectacular vision, but often fail onexecution. They may forget the power and breadth of choices today’s customer has. They fail tore-invent themselves when it becomes obvious their existing business model is no longerworking. They don’t change their business processes in an effective manner, and so they eithereschew technology enablers, or don’t gain expected Return on Investment on those they DO buy.In good times, they skate by: in tough times these weaknesses come back to haunt them.Survey Respondent CharacteristicsRSR conducted an online survey from June-September 2011 and received answers from 83qualified retail respondents. Respondent demographics are as follows: • Job Title: Senior Management (e.g., CEO, CFO, COO, CIO) 23% Vice President 13% Director/Manager 44% Internal Consultant 15% Staff/Other 8% • 2010 Revenue ($ Equivalent): Less than $50 million 24% $51 million - $249 million 16% $250 million - $499 million 8% $500 million - $999 million 12% $1Billion to $5 Billion 30% 3
  • Over $5 Billion 10%• Year-Over-Year Comparable Store Sales Growth Rates (assume average growth of 3%): Worse than average 12% Average 31% Better than average – single digit growth 40% Better than average – double digit growth 17%• Headquarters/Retail Presence: USA 47% 56% Canada 4% 36% Latin America 8% 20% UK 6% 20% Europe 14% 26% Middle East 0% 6% Africa 6% 8% Asia/Pacific 16% 26% 4
  • • Primary Category: Apparel, Footwear and/or Soft home 18% Consumer Electronics 10% General Merchandise and Hard Goods 14% Groceries 20% Hardware and Construction 2% Drugs 7% Jewelry and Accessories 2% Home Furnishings 4% Music, Books and Entertainment 4% Prepared Food 4% Fuel (Petrol) 0% Auto Parts 2% Miscellaneous Services 0% Other 20% 5
  • Business Challenges The Consumer Made Us Do It According to survey respondents, the primary reason they are addressing a consumer mobile strategy is because they see that consumers are already there and using it as part of their shopping experience (Figure 3). Figure 3: Skating Towards the Consumer Mobile Puck Top 3 Mobile Business Challenges Winners Others Consumers are using mobile as part of their 92% shopping experience and we need to be there 81% Were seeing significant online traffic from 42% mobile sources and need to respond 29% Mobile technology is moving too quickly; we 38% cant keep up 48% Store sales are getting cannibalized; mobile can 38% help 33% Our competitors dont have a mobile strategy 31% 24% Our competitors have a mobile strategy and 23% we need to respond 33% Mobile price comparison at the shelf is hurting 4% our business 24% Source: RSR Research, September 2011 But while respondents clearly indicate that consumer need is overwhelmingly the biggest business challenge they face, there are some big differences in perception of the business challenges beyond that first clear one. Retail Winners are more likely to focus on a more definable business need - that they are seeing the traffic on their online site increasingly come from mobile devices. They are also slightly more inclined to feel that store sales are getting cannibalized, while simultaneously seeing an opportunity - that their competitors have not yet figured out their mobile strategy. Laggards and other peers, however, are six times as likely to say that mobile price comparison is hurting their business (more on that below), as well as ironically noting that their competitors have a mobile strategy and they need to respond. More troublesome is the overall challenge for both Winners and their peers in struggling with the fast pace and "wild west" feel of the consumer technology landscape - citing the speed of change in consumer mobile technology as a top-three business challenge. The largest retailers in our survey report something of a double-bind: fully 50% of retailers with revenue greater than $1 billion say that mobile technology is moving too fast to keep up, but 45% 6
  • of these respondents also report that their competitors have a mobile strategy and they need torespond.Uncertainty AboundsUncertainty is not limited to the largest retailers. When it comes to identifying the top challengesto creating a differentiating mobile experience, overall respondents report that they havent yetfigured out how to identify and accommodate different customer segments, that they havedifficulty coordinating the mobile experience with other channels, and again that the consumertechnology landscape is evolving too quickly (Figure 4). In other words, "we dont know whatconsumers want, we cant get organized internally to deliver it, and by the time we do, consumershave moved on." That makes for a very challenging environment for developing a mobilestrategy.Figure 4: Uncertain End-Users, Business Process, and Technology Top 3 Challenges to Mobile Differentiation Winners Others Understanding and accommodating how different 64% customer segments engage with us 60% Difficulty coordinating with other channels to 60% create a seamless cross-channel experience 60% The consumer technology landscape evolves too 44% quickly 25% Consumers privacy concerns over how we collect 36% or use data 15% We don’t know what the customer perceives as 28% valuable/differential 30% The transparency - competitors can see and copy 16% innovations too easily 25% Consumer expectations limit how quickly we can 16% innovate 20% The technology is not advanced enough to create 12% the kind of experience wed like to offer 10% We dont want to do what our competitors are 12% doing 5% Source: RSR Research, September 2011The largest retailers - those over $1 billion in revenue - are more challenged by the difficulty ofcoordinating across channels. This is understandable to some degree - these retailers havelarger investments in a larger status quo - especially with the existing investment made ineCommerce channels. Its also much rarer for a CEO to put a stake in the ground and say "wemust do this" at this level than at a retailer in the $250 million or less range - where the CEO ismost likely the primary owner of the business as well.At the smaller retailers, $250 million in revenue or less, the pace of technology change is far morethreatening, which is also understandable. They dont tend to have the cushion to experiment thatlarger retailers do, even when the going-in investment is tens of thousands of dollars. 7
  • These complex challenges carry through to our pulse on retailers general philosophy andapproach to a mobile strategy. Overall, respondents agree that the consumer has evolved sorapidly that retailers have little choice but to have a mobile presence (Figure 5).Figure 5: Consumers Just Move Too Quickly Mobile Philosophy - Statement Agreement Strongly agree Agree Neutral Disagree Strongly disagree The customer has evolved so rapidly that we 35% 43% 13% 6% 3% are forced to have a mobile presence Mobiles impact/best uses are not yet fleshed 24% 57% 9% 9% 1% out We have completely different goals for mobile 9% 37% 35% 16% 3% shoppers than eCommerce shoppers Source: RSR Research, September 2011They also pretty strongly agree that mobiles impact or best uses have not yet been fleshed out.However, we also found that retailers that are already selling via mCommerce (those thatreported any sort of mobile sales) were much less likely to agree with this particular statementthan peers. In other words, they are finding that theyre already on the learning curve andgathering important information about how consumers want to use the mobile channel - and whatretailers can do to best position themselves to meet those needs.What about the Impact on the Store?All of these challenges are well and good, but one of the main findings from our cross-channelstrategy research was that retailers are increasingly concerned about cross-channels impact on 2the store. Mobile only exacerbates these challenges by exposing the inconsistencies betweenonline and store, whether in pricing, product information, or even product availability.So how do retailers perceive how their mobile business challenges are impacting the store? Tosome degree, they see it as a non-issue, with 25% of respondents reporting that they haventseen any mobile price comparison going on in their stores, and another 9% say that theycompletely ignore the impact of mobile price comparison at the shelf.However, these numbers have fallen significantly from our research of a scant eight months ago,when we focused specifically on the impact of price transparency on the retail enterprise. At thattime, 43% of retailers said that they had yet to experience the joys of consumers using their 3phones to check competitive prices on items at the shelf.2 Enabling Buy Anywhere/Get Anywhere: The Future of Cross Channel, RSR Research, July20113 Optimizing Price in a Transparent World, RSR Research, April 2011 8
  • stWhile we delve more deeply into the topic in our recent store research, The 21 Century Store:The Search for Relevance, we did ask in this survey whether retailers were turning to employee-facing technology to respond to this more mobile-savvy consumer. We found that retailers, for themost part are still ignoring the topic (Figure 6).Figure 6: Consumer Price-Check Ignorance What is the best policy for store employees to contend with mobile-informed consumers? Winners Others 40% Not yet an issue 32% Encourage employees to utilize their own 13% devices in stores 9% Provide mobile devices to 17% store/department mangers 18% 23% Provide mobile devices to all employees 27% Source: RSR Research, September 2011However, an interesting trend is emerging - here, Winners slightly edge out their peers inreporting an interest in leveraging employee-owned devices to meet the information challengesthat mobile-armed consumers are presenting in stores (13% vs. 9%, respectively). But the gap isjust as apparent among retailers who have already achieved some kind of mobile sales - 13% ofthose retailers also report an interest in getting employees to use their own devices to competewith mobile-armed consumers, vs. 9% of those that have not yet achieved any mobile sales. 9
  • Opportunities Engagement, Innovation, and . . . Engagement Retailers report their top three opportunities that a mobile strategy presents to the business, with a natural focus on the customer: deeper customer engagement to drive loyalty, the opportunity to drive innovation through mobile offerings, and deeper customer engagement to drive sales (Figure 7). Figure 7: A Whiff of Opportunity for Differentiation Mobile Opportunities Very valuable Somewhat valuable Not valuable Deeper customer engagement to build 73% 25% 2% loyalty through mobile channels Identify innovative mobile use cases that no 61% 27% 11% one else is doing yet Deeper customer engagement to drive sales 61% 27% 11% through personalized offers Deeper insights into shopper behavior 59% 34% 7% through mobile site or app insights Empower store employees through mobile 41% 41% 18% site or app access in stores Mobile "save the sale" at the shelf 40% 42% 18% Stop the decline in store sales 30% 36% 34% Mobile in-store concierge to alleviate some 27% 44% 29% of the sales burden from store staff Disrupt other retailers by providing a mobile 27% 48% 25% experience that encourages the use of my… Discourage the use of price comparison by 16% 41% 43% offering another mobile option Source: RSR Research, September 2011 Its important to note that there is a certain amount of resignation when it comes to dealing with mobile price transparency - at the bottom of the list in terms of opportunities, only 16% of retailer respondents say that it is very valuable to them to try to use mobile to discourage the use of price comparison at the shelf. Were Working On It In terms of maturity, clearly retailers are early on the consumer mobile maturity curve. This surveys respondents report that for the most part they are working to choose the right components to include in their strategy for consumer mobile (Figure 8). 10
  • Figure 8: A Race Up the Mobile Learning Curve Consumer Mobile Strategy Winners Others We’ve been using it, are already targeting the 12% right audience, and are happy with the results 5% We’ve been using it, know what we are trying to 12% achieve, but need to know how to measure 5% We are working on selecting the right 50% components to our mobile offering(s) 43% We would be willing to experiment if we could 15% measure the impact we are having 14% We are willing to experiment even if we don’t yet 12% know the outcome 19% No plans 0% 14% Source: RSR Research, September 2011However, more than twice as many Winners as their peers (24% vs. 10%) report that they havebeen using consumer mobile and either are starting to get an idea of what to measure or alreadyfeel comfortable with the results that theyre getting. No Winners reported that they had no plans,vs. 14% of their peers.Consistent with the entry price tag to play in consumer mobile, the smallest retailers report beingthe most aggressive in their progress along the maturity curve - 36% of retailers with less than$50 million in revenue say they have been using it and are either seeing benefits now or aredefining the right measures. However, they are also the biggest group to say they currently haveno plans: 18% of these smallest retailers vs. 6% of overall respondents.Defining Consumer Mobile CapabilitiesIf the bulk of survey respondents are still working to identify which capabilities they want toinclude as part of their mobile strategy, then the next logical step is to take a look at thecapabilities they report as being the most valuable. From a long list of possibilities, the top mobilechannel capabilities that present the greatest opportunity for our retail survey respondents includesearch for merchandise, store locator, receive coupons/offers, and access product reviews(Figure 9). 11
  • Figure 9: Top Mobile Opportunities Leverage the Phone or Personalization Mobile Channel Capabilities Very Important Somewhat Important Not Important Search for merchandise 83% 11% 6% Store locator 76% 24% 0% Receive coupons/offers 63% 31% 6% Access product reviews 61% 29% 10% Check order status 55% 35% 10% Access product ratings 54% 38% 8% Redeem coupons/offers 53% 35% 12% Source: RSR Research, September 2011This list can be grouped into two general areas: those that leverage the innate capabilities ofsmart phones, and those that take advantage of the fact that a mobile phone tends to be a fairlypersonal device - one owner per device, in other words.Phone-FriendlyStore locator, access product reviews and ratings are all capabilities that make the most oftechnologies that smart phones tend to come with these days - cameras for scanning, GPS forfinding location, even click-to-call to contact a store directly. The retailer doesnt need to knowanything about the customer in order to provide this information, but a customer with a smartphone will have a much easier time accessing richly detailed information than one with a basic"feature phone."Search for merchandise, while number one in terms of our respondents opportunities, is a littlemore complex. While it may be possible to leverage smartphone capabilities to make productsearch faster - cameras for either barcode scanning or for image identification, for example - if thesearch involves any kind of browsing, retailers need to be very careful. RSR has done otherresearch to evaluate mobile app capabilities and quickly found that browsing on a mobile phonerequires a very well-thought-out approach to categorizing merchandise for browsing, with adeeper hierarchy (letting the user get closer to a limited set of results before presenting 4bandwidth-heavy images), and with more summarized product detail pages that load quickly.PersonalizedIn the other category, personalization, retailers value opportunities that let them reach individualconsumers via their personal devices. Receive offers/coupons, check order status, and redeemcoupons/offers all fall under this type of capability - either through a login on a mobile site or via a"registered" mobile app, shoppers can quickly access personalized information delivered right tothem from the retailer. The only thing to keep in mind with these capabilities is to make sure thatyour companys priorities match up at least reasonably well with your customers. We have4 Answering the Call: Emerging Best Practices in Consumer Mobile, RSR Research, October2010 12
  • found in other areas of consumer research, for example, that consumers much more highly valuebeing able to redeem offers via their personal mobile phones than being able to receive offers.Our survey respondents have the exact opposite priority.The Bottom of the ListThe least important capabilities to our survey respondents (those that received the highestpercent of respondents rating it "not important") include purchasing and redeeming gift cards,viewing the weekly ad, checking loyalty status, and the always-disruptive using barcodes to checkprice or availability (Figure 10).Figure 10: Payment Types Near the Bottom of the Priority List Mobile Capabilities Rated "Not Important" Purchase gift cards 22% View weekly ad 18% Check loyalty status 16% Use barcodes to check price or 16% availability Register/redeem gift cards 16% Source: RSR Research, September 2011Given all of the recent movement in mobile payments, its not surprising that retailers are puttingrelatively less importance on managing electronic forms of payment, including and mostespecially gift cards. However, again, its going to be important for retailers to make sure that theirpriorities (or lack thereof) match up with consumer expectations. If retailers dont provide whatconsumers want or expect, someone else will - as the popularity of mobile apps likeRedLaser have already proven when it comes to scanning barcodes. If shoppers are going todo it anyway, is the retailer better off fighting mobile price comparison, or enabling it - andtracking it, and giving themselves an opportunity to either head it off or at least have a competitiveshot at winning the price-checking shoppers business?Winners vs. Peers: Day and NightLooking at opportunities by retailer performance yields a stark difference between the prioritiesthat Winning retailers assign to certain mobile capabilities vs. the priorities assigned by theirpeers. Winners seem to be laser-focused on opportunities that relate to selecting and purchasingproducts (Figure 11). 13
  • Figure 11: Performance-Based Priorities: Purchasing vs. Promoting Mobile Capabilities That Mobile Capabilities That Non- Winners Value More Winners Value More Winners Others Winners Others Search for 86% 70% Store locatormerchandise 77% 82% Access Receive 48% 67% product coupons/offers 81% reviews 55% Access Redeem 44% 56% coupons/offers product 59% ratings 48% 48% Buy 52% View weekly ad 55%merchandise 45% Use barcodes to 33% 48% check price orClick to call 45% availability 36% Source: RSR Research, September 2011In fact, when you look at the list of capabilities that Winners valued more highly than their peers,you get a basic description of a path to purchase: search for merchandise, access productreviews and ratings, buy merchandise, and if there are any issues along the way, have easyaccess to click to call for help.Non-winners have a completely different list of capabilities that they gave higher priority to, andwith the exception of the store locator at the top of the list, the rest of the capabilities are mostlyabout promoting to consumers: receive and redeem offers, view the weekly ad, price check usingthe barcode (which could be especially powerful when combined with the ability to send offers toa consumers device).Consistent with our past research on cross-channel, we find that Winning retailers are focusedmore initially on what could be considered basic commerce functionality - the minimum neededtoday for a consumer to make a purchase decision. Each of these steps also have a different sortof value proposition when considered as part of a cross-channel purchase - you dont need a"buy" button on the phone to give in-store shoppers access to product reviews. But if the productdoesnt happen to be on the shelf, having that buy button sure helps capture a sale that mightotherwise have been lost.The Lowest-Hanging Fruit Gets Picked QuicklyOverall, retail respondents to this survey report that they are making good progress against thecapabilities they most value. While the biggest gaps are big - search for merchandise and receivecoupons/offers in particular - these gaps are still narrower than many cross-channel capabilitiesthat RSR has evaluated in the past (Figure 12). 14
  • Figure 12: Fast Progress Against Capability Gaps Mobile Capabilities - Value ("Very Important") vs. Current Use Value Use 83% Search for merchandise 35% 76% Store locator 48% 63% Receive coupons/offers 32% 61% Access product reviews 26% 55% Check order status 25% 54% Access product ratings 31% 53% Redeem coupons/offers 29% Source: RSR Research, September 2011Store locator, especially when GPS-enabled, becomes almost a requirement to have available onmobile, but even more difficult capabilities show a surprising amount of progress. For example,check order status and redeem coupons/offers both require a lot of integration with other systems- including POS systems for redemption - and they each have at least a quarter of retailrespondents reporting that they have those capabilities in place today. Contrast that with a littleover half of retail respondents to RSRs cross-channel strategy survey, who report that theycurrently enable buy online/pick-up in store - and that’s something retailers have been chasing for 5at least the last four years.It wont take four years for retailers to double some of the more complex mobile capabilities,either. According to survey respondents, it looks like mobile access to product reviews will bewidely available by the end of 2012, with receiving coupons/offers and search for merchandiseclose on its heels (Figure 13).5 Enabling Buy Anywhere, Get Anywhere: The Future of Cross-Channel, RSR Research, July2011. 15
  • Figure 13: Big Spending Plans on Mobile Capabilities Mobile Capabilities - Investment Plans Budgeted Project Planned, Not Yet Budgeted Access product reviews 28% 15% Receive coupons/offers 23% 19% Buy merchandise 17% 28% Check loyalty status 17% 21% Purchase gift cards 17% 21% Click to call 17% 21% Register/redeem gift cards 17% 17% Source: RSR Research, September 2011In some ways, the massive amount of intended progress reported by retailers is emblematic ofmobile opportunity in retail today: because of retailers experience in eCommerce, their appetiteto take on some of the more complex capabilities available to mobile is larger than it hashistorically been for say, cross-channel or even eCommerce alone. When you couple that with arelatively low cost of entry and a cadre of vendors focused on making that entry even easier andcheaper, one key difference that we expect to see between mCommerce and eCommerce isthat mCommerces learning curve will be much shorter - and the ride that much faster. 16
  • Organizational Inhibitors Mobile Has an Uphill Journey We aren’t surprised to see that resource challenges top the list of reasons why retailers haven’t seized more of the opportunities they see mobile solutions providing. In ascending order of difficulty, the top-three roadblocks are having the necessary resources to manage all of the available eCommerce and Mobile opportunities (a gating factor reported by retailers in virtually all of RSR’s eCommerce-specific research to date), overall budgetary constraints, and difficulty in quantifying Return on Investment. More problematic, however, are the number of retailers who are frozen in their tracks due to the rapid pace at which mobile technologies change (28%, Figure 14). Figure 14: Stuck in the Mud Please identify the top three (3) organizational inhibitors standing in the way of taking advantage of these opportunities: ROI is hard to quantify 60% Budgeting - there is little capital investment available 51% We dont have enough eCommerce/Mobile resources to manage all the available opportunities 40% Difficulty getting IT resources for eCommerce/Mobile projects 37% Mobile technology changes too quickly for us to be able to make solid investments 28% Stores dont understand the mobile, social, or cross- channel opportunities 19% Stores are a higher technology investment priority 19% Our executive team doesnt understand the mobile opportunity 16% We don’t know how to turn data gained from mobile channels into actionable business intelligence 16% The marketing organization does not understand the digital strategies we need to support… 9% Source: RSR Research, September 2011 As we’ve already noted, this rate of change is not going to slow down; in fact, if a brief history of modern technology teaches us anything, it’s that the rate of change will only accelerate at breakneck speed. Consumer adoption is certainly not going to slow, and the technological capabilities of mobile devices and their users are guaranteed to “hockeystick” in an upward direction. For this reason, it is imperative that stores understand the mobile, social, and cross- channel opportunities of mobile technologies – currently, 19% of retailers cite this as an inhibitor to forward progress. What then, do retailers self-identify as some primary means to get past the notion that they can wait to implement mobile solutions until a time when the technology is no longer such a moving target? 17
  • The Way ForwardMuch of the answer resides in a role that does not currently exist in most retail organizations: achief customer experience officer. Sixty percent of retailers admit that a single executive, chargedwith ensuring the customer has a seamless experience across whichever channel – ortechnology – she chooses to engage is vital to becoming “unstuck” (Figure 15). However, theopportunities to get past roadblocks do not stop there.Figure 15: Much Help Needed Please rate the value of the following in overcoming the organizational inhibitors you face to improving the mobile customer experience: An executive tasked with managing and 60% improving the overall customer experience More coordination between selling channels 51% and marketing Solutions that dont burden our IT 47% department More experimentation 37% Third parties to help guide us through a 36% bewildering mobile landscape Investment in a streamlined technology 33% platform or infrastructure Case studies/success stories in my vertical 26% More customer involvement in mobile 24% development programs Source: RSR Research, September 2011More coordination between selling channels and the marketing department are fast becominghot-button issues for retailers looking to embrace more – and better – mobile opportunities (51%,above). This trend has also emerged in our recent eCommerce, Omni-channel, Merchandising,and Store-based research over the past 12 months as an important step to overcome internalbarriers.Further, Retail Winners are even more bullish on utilizing third parties to help guide them throughthe bewildering mobile landscape: 48% of Winners cite high value vs. only 21% of all otherrespondents in employing third party mobile expertise. Yet in a very interesting data point, whileWinners look to third party experts more so than do their competitors, one place they are notlooking to for guidance is from the customer, herself. Only 13% of Winners ascribe value toutilizing more customer involvement in mobile development programs; 27% of average andlagging performers look to glean insight from this type of increased customer involvement.Winners are clearly placing their bets, and the future of their mobile strategy, on expertinformation. As such, Winners perceive that the customer may be just as confused by a future ofhow they will utilize their personal mobile devices in the shopping experience as retailers arethemselves right now. 18
  • More Players RequiredEven though retailers want more coordination with the marketing department than they currentlyhave, in aggregate, our respondents tell us that marketing, and the chief marketing officer inparticular, are appropriately involved to-date in the strategic direction and management of mobile.The same cannot be said for the CIO, eCommerce Executives, and to a lesser degree, the CEO(Figure 16).Figure 16: Input in Demand Who CURRENLTY particpates in the strategic direction and management of Mobile/Who SHOULD increase their participation? CIO 26% 62% Chief Marketing Officer 51% 52% eCommerce Executive 26% 52% CEO 34% 45% Store Operations Executive 40% 38% Chief Merchandising Officer 37% 35% CFO 26% 30% COO 29% 20% Supply Chain Executive 17% 18% Source: RSR Research, September 2011Further, when asked which departments can benefit the most from information gained via mobilesolutions, 82% of survey respondents cite marketing, 68% say customer service, 52% cite store-specific sales, and 50% site online-specific sales.From this data, RSR can decisively suggest that every retail organization consider enacting across-functional team to map out its mobile strategy, comprised of IT, marketing, eCommerce,store operations, and financial line of business executives. In fact, when a chief customerexperience officer has been established, that person becomes an important driver of the strategicconversation. However, absent that role (as is currently the case for most retailers), such a teamis absolutely imperative.Let’s now examine the ways in which technology can help with forward progress. 19
  • Technology Enablers To App, or Not to App So far, we’ve seen that retailers find no shortage of opportunities from mobile technologies. But due to copious resource and infrastructure challenges, as well a pervasive sense that the consumer’s adoption of mobility and its evolving capabilities is moving at a pace too quick to catch, many are still in wait-and-see mode. It should come as no surprise, then, that retailers are vaguely ambivalent as to what a strong mobile offering even looks like. While 79% know that a cut and paste version of a full eCommerce site is simply not a viable mobile strategy, the field is split nearly down the middle as to the value of a downloadable app. In fact, 33% of retailers are entirely “neutral” on their feelings about mobile apps, another 20% completely disagree that it will yield more engagement than a mobile site, and another 47% think it will hold value for their brand offering. Figure 17: Lots of Neutrality Please indicate the degree to which you agree or disagree with the following statements: Strongly Agree Agree Neutral Disagree Strongly Disagree A downloadable app will yield more engagement 9% 38% 33% 19% 1% than a mobile site A cut and paste version of a full eCommerce site 1%7% 12% 51% 28% is a viable mobile strategy Source: RSR Research, September 2011 It is RSR’s strong contention that only those brands who can thoroughly justify frequent (if not daily) interaction with a downloadable application consider it the backbone of their mobile strategy. Consider your brand’s place in the customer’s lifestyle: do your products and services evoke passion in the consumer? What value would she derive from opening – and engaging with – your brand’s application as part of her already-crowded list of daily activities? Only those who can guarantee value from such engagement will avoid being relegated to a back screen/folder – or worse yet – deleted entirely from the consumer’s personal device. Winners Keep Their Eye on the Ball In aggregate, the platforms retailers identify as most important to tackle fall squarely in line with retail sales of mobile devices, as iPhone and Android-driven devices take top honors (92% and 87%, respectively, Figure 18). Because this is the first study of its kind, we do not have year-over- year data available for comparison, but based on the recent spike in Droid sales, we anticipate that Android will only continue to grow in importance for retailers. However, Retail Winners 20
  • disproportionately ascribe higher value to all of the platforms offered to them: 54% selected RIM(vs. 43% of all others), 32% chose Windows 7 platform (vs. 10% of all others), and 29% of RetailWinners (vs. 19% of all other retailers) said they still feel feature phones are important to support.In short, Winners are not backing away from any mobile platforms – wherever and howevercustomers are using mobile phones, Winners feel it is important to be there. This alsoapplies to tablets – 54% of Winners identify tablet platforms as important to support, vs. 38% oftheir underachieving competitors.Figure 18: Device Sales Dictate Platform Importance Which mobile platforms are most important to tackle? iPhone 92% Android 87% RIM (Blackberry) 51% Tablets 49% Windows 7 25% Feature Phones (SMS, very basic mobile 23% web) HP Com 6% Source: RSR Research, September 2011 21
  • The Wireless Story Continues stEarlier this year in our annual State-of-the-Store Report, The 21 Century Store: The Search forRelevance, retailers told us they see vast opportunity to interact with in-store customers infascinating new ways via the consumer’s personal mobile device – both by driving customers tothe store, and in communicating with them once inside. One missing link in this chain has beenhow retailers will engage with consumers via mobile devices - will they rely on cellular networks?Or provide their own public wireless network? Figure 19 confirms that retailers are rapidly movingaway from anticipating that cellular carriers will shoulder most of the burden.Figure 19: Wireless Value Drastically Outweighs Adoption and Plans Which of the following best describes your stance on retailer-provided Wi-Fi in stores? It adds some value 32% It is a must 30% It adds minimal value 16% Its a PCI/data security risk 9% We don’t have stores 7% It adds no value at all 7% Source: RSR Research, September 2011However, just as in our Store Report this year, it is somewhat jarring to see that even though avast majority of retailers ascribe value to retailer-provided wireless in stores, (78% of retailers inthis case) very few have yet to do anything about it. In fact, in Figure 20, below, 56% tell us theyhave no plans whatsoever to fold in public WiFi to their stores. We did not mince our wordsearlier this year – from that report: Quite simply, as it pertains to wireless networking in the store, retailers just aren’t moving quickly enough… they are steadily warming to the fact that wireless devices are driving traffic to the store, but they have become red-hot for tapping those wireless devices’ potential once inside the store, itself. Even further still… they want to use social networking opportunities to engage with consumers while they are in-house. Yet… 30% still have no wireless network – of any kind – available in stores, and only 12% have wireless available for their customers. As anyone who has ever tried to access Facebook during peak hours on a cellular connection will tell you – this just doesn’t cut it. In order to interact with customers in any way via the consumer’s personal device, Wi-Fi is an absolute must. 22
  • And as the widespread advent of 4G networks promise to increase the amount of content-rich data streaming to smartphones at any given moment, many telecommunications experts believe that the bandwith of cellular networks will soon become even more congested, causing cellular connectivity to become less reliable than the 3G networks of today. If this holds true, free Wi-Fi will become an even more compelling reason for customers to shop your stores."Early DaysAcross the board, even when looking at the highest performers, retailers have not done muchwith mobile yet. However, based on the sheer volume of opportunities they’ve already identified inthe Opportunities section of this report, coupled with the amount of budgeted and plannedprojects shown here in Figure 20, we expect that will not be the case when we conduct thisresearch again in 12 months’ time.Figure 20: Follow the Budget and Plans How long has your company been actively involved in the following technology-enabled processes in attempting to improve your Mobile presence? More than 1 year Less than 1 year Budgeted Project Planned, not Budgeted No plans An ecommerce site that can extend to mobile 10% 36% 18% 23% 13% Public WiFi in stores 8% 18% 13% 5% 56% A mobile-specific development provider 8% 21% 18% 21% 33% Downloadable shopping app 5% 26% 5% 31% 33% Mobile-capable content management 5% 33% 18% 33% 10% Device/OS management and maintenance services (to keep up with changing devices) 3% 15% 18% 21% 44% Mobile capabilities delivered via the cloud/SaaS 3%10% 21% 23% 44% Downloadable branded apps (games, lookbooks, etc) 3% 16% 8% 26% 47% Write once/deploy many mobile development platform 3% 23% 23% 23% 28% Mobile PCI certification 15% 18% 18% 49% An advertising agency with mobile experience 23% 15% 21% 41% Source: RSR Research, September 2011Twenty three percent of all retailers have budget set aside to ensure that the mobiledevelopments they take on are repeatable across multiple platforms. And while 21% already havebudgeted for mobile capabilities delivered via the cloud (or a Software as a Service model),another 23% have plans for offerings that leverage such delivery models. 23
  • Too Soon to Lock InBecause retailers are so early in their adoption cycle of mobile solutions, it is important toexamine those technologies which they perceive to hold the most value for them in the nearfuture – particularly for those retailers whose sales are already outperforming the competition(Figure 21).Figure 21: Winners Take the Long View How do you perceive the value of the following technologies? (% Very Valuable) Winners Others An ecommerce site that can extend to mobile 77% 88% Write once/deploy many mobile development platform 73% 35% Mobile-capable content management 64% 71% Mobile PCI certification 45% 38% Device/OS management and maintenance services (to 41% keep up with changing devices) 31% A mobile-specific development provider 36% 25% Downloadable shopping app 36% 47% Mobile capabilities delivered via the cloud/SaaS 27% 35% Downloadable branded apps (games, lookbooks, etc) 27% 19% An advertising agency with mobile experience 18% 31% Source: RSR Research, September 2011Retail Winners are slightly less inclined to envision a future where the eCommerce site is simplyextended out to the mobile channel (77% vs. 88% of all others). In a related notion, they look tooutside advertising agencies with mobile experience less than do their competitors, as well (18%of Winners, 31% of all others). Instead, Winners are much more focused on the ability to writeonce and deploy across multiple mobile platforms than are average and underperformers (73%vs. 35%) – another clear indicator that the best performers take a broader view of what mobilereally looks like as it relates to how consumers use mobility. While all retailers recognize thatmobile devices, their capabilities, and shoppers’ willingness to use them are very difficult topredict, the best retailers understand that “the next big thing” in mobile devices – or platforms –may be just around the corner at any given time; these are not static times, and therefore anymobile offering must be built with an innate flexibility to accommodate whatever trends emerge –and quickly. 24
  • BOOTstrap Recommendations Mobile commerce’s learning curve will be much shorter, but it will also be more complex. Mobile is a moving target on the process side, as consumers try to figure out how to best use mobile as part of the shopping process. But it is also a moving target on the technology side, as leaps and bounds in technology constantly change what mobile phones are capable of doing. The following are some baseline recommendations to optimize your mobile efforts. Dont Let Speed of Change Frighten You Indeed, the retail uses of mobile technologies are still in their early days. Even so, it is safe to predict that uses of new mobile innovations will become deciding factors for some retailers’ ability to thrive, and an accelerant for others’ demise. While significant R&D is still required (much of it will occur on trial and error basis), the good news is that the playing ground is relatively level for retailers of all segments and sizes. Piloting new ideas which capitalize on mobile technologies comes at a much lower price tag than have more “traditional” lessons in eCommerce or store systems experimentation. The key is to at least be in the game. Use Consumers to Help Shape your Strategy While its true that consumers probably would not have given useful feedback for the idea of a Sony Walkman or iPod - or automobile, for that matter - there is still an important role for consumers in developing your mobile strategy. Even though consumers may not be able to tell you exactly what they want in a mobile offering, you should use them to validate that what youve done works. User Interfaces might be different, use-cases might be different, but it’s important to remember that mobile consumers are often operating in a different context than eCommerce consumers browsing from the comforts of home. Laggards currently pursue using the device as a promotional foothold into consumers lives – this is a bad idea. While sorely tempting to try, it is something you can only achieve if you have their trust to begin with. The best way to win that trust is to be useful – which can be established by providing in-store access to product ratings and reviews, or enabling purchase at the shelf of an out-of-stock product. Carefully Consider/Approach a Customer Experience Officer Absent this role in the modern day retail enterprise, retailers will continue to fall short on guaranteeing a seamless shopping experience across channels. We are very confident in this recommendation, based not only on survey responses from myriad current research reports, but also because RSR has recently undertaken several projects to evaluate top retailers’ cross channel offerings: we were thoroughly surprised (and in many cases, let down) by even top- ranked brands’ inconsistencies across such channels as stores, eCommerce, and mobile. The temptation is to "just throw it all into one organization" - headed by a Chief Customer Experience Officer. While this offers some benefits, it also comes with risks. Hence, for retailers who want to approach the idea of implementing a Chief Customer Experience officer, we suggest maintaining realistic expectations for what this person should own and manage, a move away from matrixed organizations, and ensuring that the candidate has enough credibility to wrangle both eCommerce and store operations. 25
  • Rethink WirelessFor those retailers who do operate stores, consumer-owned mobile devices provide endless newopportunities to engage with their customers inside the store’s walls. The caveat here is that tocommunicate effectively, particularly as richer mobile media emerge, retailers must have thewireless infrastructure to engage in the first place. Relying on cellular is not enough in concretebig-box stores and malls. The time is at hand for a hardened rethink of customer-facing andsecure wireless networks in stores.Strategize Across PlatformRetail Winners have spoken: no mobile platform should be left behind. From its inception point,any mobile offering must be built with the flexibility to operate across multiple mobile platformsand devices in order to make best use of already-strained internal resources.Lastly, not all new endeavors will be successful. But consider this: the consumer already wants touse the device she has in her purse; even if a new tactic falls short, she’ll be eager to try it, andwill likely reward you for trying. Certainly, if you dont provide something, someone else will -disintermediating the retailer at their own shelf, in their own store. 26
  • Appendix A: RSR’s Research Methodology The “BOOT” methodology is designed to reveal and prioritize the following: • Business Challenges – Retailers of all shapes and sizes face significant external challenges. These issues provide a business context for the subject being discussed and drive decision-making across the enterprise. • Opportunities – Every challenge brings with it a set of opportunities, or ways to change and overcome that challenge. The ways retailers turn business challenges into opportunities often define the difference between Winners and “also-rans.” Within the BOOT, we can also identify opportunities missed – and describe leading edge models we believe drive success. • Organizational Inhibitors – Even as enterprises find opportunities to overcome their external challenges, they may find internal organizational inhibitors that keep them from executing on their vision. Opportunities can be found to overcome these inhibitors as well. Winning retailers understand their organizational inhibitors and find creative, effective ways to overcome them. • Technology Enablers – If a company can overcome its organizational inhibitors it can use technology as an enabler to take advantage of the opportunities it identifies. Retail Winners are most adept at judiciously and effectively using these enablers, often far earlier than their peers. A graphical depiction of the BOOT follows: a
  • Appendix B: About Our Sponsors Google Commerce Search is a hosted search solution for your e-commerce store that leverages Google’s tremendous search expertise and computing infrastructure to deliver a superior experience that bridges the gap between brick and mortar stores and online shopping. Robust features include a product recommendation engine, instantaneous search results, targeted promotions, smart synonym and spelling detection, and extensive merchandising options. Google Commerce Search works seamlessly on desktop e-commerce sites as well as both mobile sites and apps, and customers who have implemented the solution include General Nutrition Centers (GNC), Westfield Shopping Centers, and Forever 21 among many others. SAP is the leading provider of application solutions for the retail industry. SAP helps retailers of all sizes to understand, anticipate and inspire their shoppers by providing a compelling shopping experience. The SAP® for Retail solution portfolio provides specific solutions for retail companies in the food, fashion and hardlines businesses. The solution portfolio is built around understanding the shoppers, or Shopper Insight, and consists of building blocks that cover the areas of Merchandise Lifecycle (including planning, merchandise lifecycle pricing and promotion management); Supply Chain (forecast & replenishment, supply chain planning and execution); Shopper Experience (workforce management, customer loyalty and a portfolio of POS solutions); and Corporate Operations (finance and human resources). Learn more about SAP at http://www.sap.com/retail/. b
  • Appendix C: About RSR Research Retail Systems Research (“RSR”) is the only research company run by retailers for the retail industry. RSR provides insight into business and technology challenges facing the extended retail industry, providing thought leadership and advice on navigating these challenges for specific companies and the industry at large. We do this by: • Identifying information that helps retailers and their trading partners to build more efficient and profitable businesses; • Identifying industry issues that solutions providers must address to be relevant in the extended retail industry; • Providing insight and analysis about a broad spectrum of issues and trends in the Extended Retail Industry. Copyright© 2011 by Retail Systems Research LLC • All rights reserved. No part of the contents of this document may be reproduced or transmitted in any form or by any means without the permission of the publisher. Contact research@rsrresearch.com for more information. c