© 2012 Critical Mass, Inc. All Rights Reserved
About Critical Mass             16                                      Years            700                              ...
It’s no surprise         Mobile is exploding© 2012 Critical Mass, Inc. All Rights Reserved   3
Smartphone penetration is growingOverall - US Smartphone Penetration 55% in July 201270% of new phones are smartphones    ...
Web traffic is going mobileWith tablets, mobile page views are 20% of total viewsMobile installed devices will overtake De...
Search is going mobile (and immediate)Paid mobile and tablet search clicks are now 21%in the consumer goods categoryOn mob...
Transactions are going mobileBuying everything and anything on the phone isgoing mainstream. It started with virtual conte...
Retailers are going mobileBuy.com - 5% of revenue from mobileebay - $10B in mobile sales§  180,000 cars per year§  3 pur...
Mobile and web – overall growthWeb commerce 2011§  7% of retail salesWeb commerce 2012§  16% of retail salesMobile comme...
Building Your Strategy                                                 4 Mobile Pillars for Retail© 2012 Critical Mass, In...
Web vs App© 2012 Critical Mass, Inc. All Rights Reserved   11
Web vs App73% of mobile users prefer web over apps for shoppingApps work – providing native utility value§       Repeat u...
Mobile shoppers love the webMobile web is not just for shopping§  Store finding§  Store hours§  Finding “deals”Cyber Mo...
Mobile web experience - searchConsumers are transferringdesktop behaviors to mobile -but with immediacyMobile search is ev...
Multiple apps for retailers and brands?More than 1 = Major hurdleSecondary apps need a clearpurpose and use caseConsumers ...
Digital         Couponing© 2012 Critical Mass, Inc. All Rights Reserved   16
The state of the mobile couponA digital coupon is…§       Passbook§       SMS§       Groupon§       a picture of a cou...
Mobile coupons – optical vs NFCPassbook is now leading the wayOptical will win near termExample – Starbucks, Target, Walgr...
Mobile coupons – retailers vs brandsRetailers control the systems today: POS and appsTraditional brand/mfr. coupons aren’t...
Showrooming© 2012 Critical Mass, Inc. All Rights Reserved   20
Showrooming is realityShowrooming is…56% of all shoppers say theywill “showroom” this holiday27% say they will likelybuy o...
Guitar Center led the wayMusic stores heard the music…Savvy musicians forcedtotal price matching earlyfor e-commerceBottom...
Best Buy has come aroundThe electronics giant revealedplans to match online prices(including Amazon)© 2012 Critical Mass, ...
Mobile POS© 2012 Critical Mass, Inc. All Rights Reserved   24
New apps and new POS modelsSquare and Uber appsare training mobile users§       Fast§       New interfaces§       Perso...
Retail is moving to mobile POSSmartphones are replacing POSand more (inventory, kiosks, etc.)JCPenney promises to replacea...
Mobile self checkout in happeningUsing your own mobile deviceis the new self checkout lane§       Apple§       Wal-Mart§...
Other Key         Considerations© 2012 Critical Mass, Inc. All Rights Reserved   28
In-aisle promotionsEmbracing the mobile shopper in action§  QR will continue to have slow growth§  NFC is early, develop...
User reviewsReviews are the number twomobile actionReviews on the mobile sitewill draw trafficExpect to see more effort in...
Social and mobile shoppingSocial sharing is actually happening§       Coupons§       Purchases§       Wants§       Adv...
What about mobile payments?It’s really early in the game!A solution in search of a problem?The Digital ID dilemma…A fight ...
Retail and Internet sales taxSales tax is the showrooming secret trigger – for  consumers!3 bills currently in front of Co...
Amazon plans on Internet taxesAdded 18 Distribution Centers in 2012§       40 total in the USStopped fighting and agreed ...
An old dog learns new tricksEvent the USPS is testing same day delivery(starting this month in San Francisco)© 2012 Critic...
What now?         Steps you should take today© 2012 Critical Mass, Inc. All Rights Reserved   36
Be TransparentIt’s impossible to fight smartphones and searchConsumers are looking at prices – Stores must also© 2012 Crit...
Price MatchPrice matching is evolvingas the dominant strategyMatch now to keep the saleBuild out unique offerings© 2012 Cr...
Leverage Mobile CommunicationCommunication is king:SMS, email, PUSHTalk to the customeroutside the store© 2012 Critical Ma...
Experiment with Digital Coupons and PaymentsInvest in digital coupon experiments nowDeveloping real integration takes time...
The future is now© 2012 Critical Mass, Inc. All Rights Reserved   41
SearchThe search starts here…© 2012 Critical Mass, Inc. All Rights Reserved   42
ContextMobile meets the store…© 2012 Critical Mass, Inc. All Rights Reserved   43
AppMobile enhances the store…© 2012 Critical Mass, Inc. All Rights Reserved   44
CouponSealing the deal…© 2012 Critical Mass, Inc. All Rights Reserved   45
PaymentsClosing the loop…© 2012 Critical Mass, Inc. All Rights Reserved   46
In ConclusionBottom line – this is all possible today!§       Growth continues - differently§       Consumers have the p...
© 2012 Critical Mass, Inc. All Rights Reserved                                                 ?                          ...
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The Future of Retail: Shopping Mobilized

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The Future of Retail: Shopping Mobilized

  1. 1. © 2012 Critical Mass, Inc. All Rights Reserved
  2. 2. About Critical Mass 16 Years 700 + Employees 8 Offices 25 + Clients© 2012 Critical Mass, Inc. All Rights Reserved 2
  3. 3. It’s no surprise Mobile is exploding© 2012 Critical Mass, Inc. All Rights Reserved 3
  4. 4. Smartphone penetration is growingOverall - US Smartphone Penetration 55% in July 201270% of new phones are smartphones Smartphone & Feature Phone Penetration, US Mobile Subscribers Ages 18+© 2012 Critical Mass, Inc. All Rights Reserved 4
  5. 5. Web traffic is going mobileWith tablets, mobile page views are 20% of total viewsMobile installed devices will overtake Desktop in 2013Desktop search declined in Sept. for the first time since 2006© 2012 Critical Mass, Inc. All Rights Reserved 5
  6. 6. Search is going mobile (and immediate)Paid mobile and tablet search clicks are now 21%in the consumer goods categoryOn mobile, action is taken within the hour© 2012 Critical Mass, Inc. All Rights Reserved 6
  7. 7. Transactions are going mobileBuying everything and anything on the phone isgoing mainstream. It started with virtual contentinside apps…§  Half of smartphone users use shopping apps§  Average of 41 apps on each phone - up 28% y/y© 2012 Critical Mass, Inc. All Rights Reserved 7
  8. 8. Retailers are going mobileBuy.com - 5% of revenue from mobileebay - $10B in mobile sales§  180,000 cars per year§  3 purchases/sec. on mobile§  >70% of 350M items are “new”© 2012 Critical Mass, Inc. All Rights Reserved 8
  9. 9. Mobile and web – overall growthWeb commerce 2011§  7% of retail salesWeb commerce 2012§  16% of retail salesMobile commerce continuesTo grow 10X faster than web© 2012 Critical Mass, Inc. All Rights Reserved 9
  10. 10. Building Your Strategy 4 Mobile Pillars for Retail© 2012 Critical Mass, Inc. All Rights Reserved 10
  11. 11. Web vs App© 2012 Critical Mass, Inc. All Rights Reserved 11
  12. 12. Web vs App73% of mobile users prefer web over apps for shoppingApps work – providing native utility value§  Repeat use§  Scanning§  List making§  Easier Geotargeting© 2012 Critical Mass, Inc. All Rights Reserved 12
  13. 13. Mobile shoppers love the webMobile web is not just for shopping§  Store finding§  Store hours§  Finding “deals”Cyber Monday shoppers - 2011§  11% visit a retailer site via mobile§  3x over 2010§  this year – 30%???© 2012 Critical Mass, Inc. All Rights Reserved 13
  14. 14. Mobile web experience - searchConsumers are transferringdesktop behaviors to mobile -but with immediacyMobile search is evolving:§  Voice§  In-app§  Context§  Connected search© 2012 Critical Mass, Inc. All Rights Reserved 14
  15. 15. Multiple apps for retailers and brands?More than 1 = Major hurdleSecondary apps need a clearpurpose and use caseConsumers think “web or app?”not “web or which app?”© 2012 Critical Mass, Inc. All Rights Reserved 15
  16. 16. Digital Couponing© 2012 Critical Mass, Inc. All Rights Reserved 16
  17. 17. The state of the mobile couponA digital coupon is…§  Passbook§  SMS§  Groupon§  a picture of a coupon§  a code off the web§  simply showing upAny way you slice it –Consumers love them!Discovery and retention are challenges© 2012 Critical Mass, Inc. All Rights Reserved 17
  18. 18. Mobile coupons – optical vs NFCPassbook is now leading the wayOptical will win near termExample – Starbucks, Target, Walgreens, airlinesNFC is fragmented and evolving more slowly© 2012 Critical Mass, Inc. All Rights Reserved 18
  19. 19. Mobile coupons – retailers vs brandsRetailers control the systems today: POS and appsTraditional brand/mfr. coupons aren’t ready for mobileRetailers are extending their advantagewith loyalty programs© 2012 Critical Mass, Inc. All Rights Reserved 19
  20. 20. Showrooming© 2012 Critical Mass, Inc. All Rights Reserved 20
  21. 21. Showrooming is realityShowrooming is…56% of all shoppers say theywill “showroom” this holiday27% say they will likelybuy online while in the store© 2012 Critical Mass, Inc. All Rights Reserved 21
  22. 22. Guitar Center led the wayMusic stores heard the music…Savvy musicians forcedtotal price matching earlyfor e-commerceBottom line:Commodities compete on price!© 2012 Critical Mass, Inc. All Rights Reserved 22
  23. 23. Best Buy has come aroundThe electronics giant revealedplans to match online prices(including Amazon)© 2012 Critical Mass, Inc. All Rights Reserved 23
  24. 24. Mobile POS© 2012 Critical Mass, Inc. All Rights Reserved 24
  25. 25. New apps and new POS modelsSquare and Uber appsare training mobile users§  Fast§  New interfaces§  Personalized§  Paper-freeStartups, Pay-Pal and evenPOS incumbents are buildingmobile capabilities© 2012 Critical Mass, Inc. All Rights Reserved 25
  26. 26. Retail is moving to mobile POSSmartphones are replacing POSand more (inventory, kiosks, etc.)JCPenney promises to replaceall POS by end of 2013Expect to see “line busters” withmobile checkout this holiday© 2012 Critical Mass, Inc. All Rights Reserved 26
  27. 27. Mobile self checkout in happeningUsing your own mobile deviceis the new self checkout lane§  Apple§  Wal-Mart§  Sears§  Tesco (EU)© 2012 Critical Mass, Inc. All Rights Reserved 27
  28. 28. Other Key Considerations© 2012 Critical Mass, Inc. All Rights Reserved 28
  29. 29. In-aisle promotionsEmbracing the mobile shopper in action§  QR will continue to have slow growth§  NFC is early, developing and expensive§  Gathering shopper info is key© 2012 Critical Mass, Inc. All Rights Reserved 29
  30. 30. User reviewsReviews are the number twomobile actionReviews on the mobile sitewill draw trafficExpect to see more effort ingathering legitimate reviews© 2012 Critical Mass, Inc. All Rights Reserved 30
  31. 31. Social and mobile shoppingSocial sharing is actually happening§  Coupons§  Purchases§  Wants§  AdviceHashtag is the new URL…Social is driving traffic to evensmall stores that embrace mobile© 2012 Critical Mass, Inc. All Rights Reserved 31
  32. 32. What about mobile payments?It’s really early in the game!A solution in search of a problem?The Digital ID dilemma…A fight over fees© 2012 Critical Mass, Inc. All Rights Reserved 32
  33. 33. Retail and Internet sales taxSales tax is the showrooming secret trigger – for consumers!3 bills currently in front of Congress to charge national online sales tax© 2012 Critical Mass, Inc. All Rights Reserved 33
  34. 34. Amazon plans on Internet taxesAdded 18 Distribution Centers in 2012§  40 total in the USStopped fighting and agreed to pay taxes in several states alreadyThe bet is on same day delivery vs. same day pickup© 2012 Critical Mass, Inc. All Rights Reserved 34
  35. 35. An old dog learns new tricksEvent the USPS is testing same day delivery(starting this month in San Francisco)© 2012 Critical Mass, Inc. All Rights Reserved 35
  36. 36. What now? Steps you should take today© 2012 Critical Mass, Inc. All Rights Reserved 36
  37. 37. Be TransparentIt’s impossible to fight smartphones and searchConsumers are looking at prices – Stores must also© 2012 Critical Mass, Inc. All Rights Reserved 37
  38. 38. Price MatchPrice matching is evolvingas the dominant strategyMatch now to keep the saleBuild out unique offerings© 2012 Critical Mass, Inc. All Rights Reserved 38
  39. 39. Leverage Mobile CommunicationCommunication is king:SMS, email, PUSHTalk to the customeroutside the store© 2012 Critical Mass, Inc. All Rights Reserved 39
  40. 40. Experiment with Digital Coupons and PaymentsInvest in digital coupon experiments nowDeveloping real integration takes time© 2012 Critical Mass, Inc. All Rights Reserved 40
  41. 41. The future is now© 2012 Critical Mass, Inc. All Rights Reserved 41
  42. 42. SearchThe search starts here…© 2012 Critical Mass, Inc. All Rights Reserved 42
  43. 43. ContextMobile meets the store…© 2012 Critical Mass, Inc. All Rights Reserved 43
  44. 44. AppMobile enhances the store…© 2012 Critical Mass, Inc. All Rights Reserved 44
  45. 45. CouponSealing the deal…© 2012 Critical Mass, Inc. All Rights Reserved 45
  46. 46. PaymentsClosing the loop…© 2012 Critical Mass, Inc. All Rights Reserved 46
  47. 47. In ConclusionBottom line – this is all possible today!§  Growth continues - differently§  Consumers have the power§  Integrate strategy across channels§  Keep a big picture view of mobile§  Build a mobile and tablet strategy© 2012 Critical Mass, Inc. All Rights Reserved 47
  48. 48. © 2012 Critical Mass, Inc. All Rights Reserved ? Questions? 48

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