Presentation to the NAKU Conf., Helsinki, May 14, 2014, Dr. Phil Hendrix, immr

1. 1 Helsinki – May 14, 2013 © immr 2013
Is Shopping Broken?
– Presentation to NAKU (Helsinki)
May 14, 2013
Dr. Phil Hendrix
Director, immr and GigaOm Pro analyst
www.immr.org
1 (770) 612,1488
phil.hendrix@immr.org
@phil_hendrix
the Consumer Experience
Based on report:

2. 2 Helsinki – May 14, 2013 © immr 2013
Grading the Retail Shopping Experience†
Consumer Experience (CX) End,to,End
Mobile Impacts on CX†
Consumer Motivations
PEERSM
Strategies
Consumer Expectations
Overview
†
Source: immr Shopping Survey n = 500 U.S. consumers

3. 3 Helsinki – May 14, 2013 © immr 2013
Convenience Stores
Warehouse Clubs
Discount Stores
Grocery Stores
Drug Stores
Department Stores
Consumer Electronics
Home Improvement
Which Stores Are Consumers “Happy” with?
Source: immr Shopping Survey

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Which Stores Are Consumers “Happy” with?
1. Warehouse Clubs
2. Discount Stores
3. Grocery Stores
5. Drug Stores
6. Department Stores
7. Consumer Electronics
4. Home Improvement
Source: immr Shopping Survey *Convenience Stores not tested
Best
Worst

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How Happy Are Consumers with Retailers?
1. Warehouse Clubs
2. Discount Stores
3. Grocery Stores
5. Drug Stores
6. Department Stores
7. Consumer Electronics
4. Home Improvement
On Average:
1 in 4
“Very Happy”
Source: immr Shopping Survey

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1 in 4 “Very Happy”
53% “Very Happy”
vs.
How does that compare to Amazon?
Brick
and
Mortar
Source: immr Shopping Survey

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Why Does this Matter?

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Why is Loyalty So Elusive?

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Discover Choose
Buy
Use
CX = What Consumers Do

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End,to,End Consumer Experience

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End,to,End View of Customer Experience

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CX: Annoyances and Friction,less Aspects
†
Source: immr Shopping Survey

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Mobile Improves Consumers’ Experience

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immr Shopping Study – Pt. 2
20 Mobile Apps
n = 500 Consumers

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Other immr Research Findings
62%
“Try to buy things when
they are on sale, even if
it means waiting”
77%
“Like to shop for
bargains”
58%
“Like to browse in
stores, just to see what’s
new”

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Conclusion

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Consumers’ Motivations
Minimizing
Friction
Time
Annoyances
Uncertainty
Cost
Badoutcomes
Risk
Enabling
Shoulds
Fitness
Savings
Social
Green
Education
Maximizing
Wants
Fun
Food
Acceptance
Avoid, minimize,
or eliminate
“Satisfice” “Maximize”
Entertainment
Recognition
“Good for You”
(Resolutions)

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In the Ideal WorldI.

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Gears Often Aren’t Aligned
Gaps, disconnects and conflicts

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Symptoms of EDD† †
(Engagement Deficit Disorder)
Showrooming
Returns
Churn Rate
Marketing $
Failure Rate
Uncertainty
Time
Risks
Costs
Indifference Regret

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“Terms of Engagement”
Right time
Relevant
Personalized
Rewarding

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Consumer Expectations
What
I Like
Who I
am… Where I
am
What’s
Nearby
What’s
going On
What I
respond to
What I’ve
bought
Where
I’ve been What
I need
Where
I’m going
Source: Dr. Phil Hendrix, How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing
Trusted Business Partners should know…

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Engaging Customers PEERSM
Strategies
†
Securely, with full transparency
Reinforce
Surprise/
Delight
Remove
Frictions
Learn†
&
Adapt

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Digital Signals Key to Personalization

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Using Metaphors to Innovate CX

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Additional Perspectives†
†
Request copies at www.immr.org

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Bio – Dr. Phil Hendrix
Dr. Phil Hendrix
Director, immr
www.immr.org
+1 (770) 612,1488
phil.hendrix@immr.org
@phil_hendrix
Dr. Phil Hendrix is the founder and director of immr, a research and advisory firm focused on
market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He
specializes in helping organizations evaluate and capitalize on opportunities that are new to
customers and new to market. Dr. Hendrix has extensive experience uncovering customer
needs, identifying triggers and hurdles to adoption, and developing strategies that unlock
market opportunities, both B2C and B2B.
As an analyst, Phil focuses on mobile innovation and the implications for companies across
industries. He is a regular contributor at leading industry conferences, including GigaOm’s
Mobilize, Structure:Data, Street Fight (hyperlocal), ad:tech, iMedia Summit, Social Loco and
others. His current work focuses on mobile and its impact on consumer behavior, especially
shopping, M commerce and mobile payment.
As a consultant and advisor, Phil has led significant engagements with startups and Fortune
100 clients in mobile, consumer electronics, and related categories, including financial
services, transportation, insurance and others. He works closely with senior management
and project teams on key issues, including market sizing, segmentation, positioning, and
branding as well as innovation, user experience, and customer retention. Over the course of
his career, Phil has helped clients conceive and successfully launch dozens of new products,
services and businesses.
Before founding immr, Phil was a partner with DiamondCluster (strategy and technology
consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal
with Mercer Management Consulting (now Oliver Wyman). He has held faculty positions at
Emory University and the University of Michigan, where he taught courses in marketing,
research, and buyer behavior for MBAs and executives. While at Michigan Dr. Hendrix also
held a joint appointment as a research scientist in the Survey Research Center, Institute for
Social Research.
Additional information on immr perspectives and reports prepared by Dr. Hendrix is available
at immr and Slideshare, with additional information available at GigaOm Pro.

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immr – Recent and Forthcoming Reports
Drive Revenue and Customer Loyalty by Engaging Mobile and Social Consumers†
Engaging Connected Consumers – Strategies for Brands, Retailers and Local
Businesses†
If Shopping is Broken, Can Mobile Fix it?†
Raising the Bar – Mobile and Customer Loyalty†
Social + Location + Mobile: SoLoMo Analytics and the Transformation of Shopping†
How Consumers Are Using Local Search
Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2
The Promise of Hyperlocal: Opportunities for Publishers and Developers
Tuning into Consumers’ Digital Signals
How SoLoMo is Empowering Consumers, Transforming
Shopping, and Disrupting Advertising and Retailing
Location – the Epicenter of Mobile Innovation †
Forthcoming

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Appendix

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Are Retailers Delighting Consumers?

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Moments of Truth