Stores Under Siege: The Rise of the SoMoLo Shopper

Stores Under Siege:The Rise of SoMoLo ShoppingLessons Learned from Early Attempts toEngage these Savvy Shoppers#CommerceInMotion

What is aSOMOLOShopper? #CommerceInMotion 2

SOCIALMOBILELOCAL #CommerceInMotion 3

SoMoLo Behaviors and Expectations SOCIAL MOBILE LOCAL Read a Look for Nearby Discuss Review Inventory On Social Sites &Prices Compare Products i Investigate A Use Maps to About this Product Find Stores Share item Info B Group Deals Review Receive Shop through __ __ Shopping 25% Local Social __ __ Lists off Offers Games #CommerceInMotion 4

Where Are These“SoMoLo” Shoppers? #CommerceInMotion 5

They’reEverywhere… #CommerceInMotion 6

Polling Question #1• Which stage of implementation best describes your organization‟s status with regard to SoMoLo shoppers? a) We currently have no specific strategy and/or we are just experimenting with different ideas b) We have a strategy in place and are beginning to execute specific programs designed to engage the SoMoLo shopper c) We have a fully developed strategy and are implementing SoMoLo programs today #CommerceInMotion 7

“Tools of the Trade”The Latest SoMoLo Trends andtheir Impact on the Store#CommerceInMotion

Smart Devicesare Everywhere50Bworldwide by 2020 *Cisco 50% of Americans will have a Smartphone by the holidays *Nielsen #CommerceInMotion 9

(35M and Counting)Tablets Emerge 68% of tablet owners say they have used their tablet to make a purchase *e-tailing Group vs. 48% of Smartphone owners #CommerceInMotion 10

17B downloads in 2011 *ForresterApps, Apps& More Apps #CommerceInMotion 11

Cracking the Code #CommerceInMotion 12

14M US mobile users scanned a QR code in June 2011 *Comscore 6.2% of total mobile audience #CommerceInMotion 13

Location, Location,Location65MAmericans use mobile or sociallocation-based services*Pew Research 55% of Smartphone users #CommerceInMotion 14

photo circa 1937Augmenting Reality #CommerceInMotion 15

Increasing Traffic 12.2M Shopping Reviews #CommerceInMotion 16

creates “infinite” shelf spaceBringing The Shelf to Life #CommerceInMotion 17

3-D Imagery Delivers(Big) Visual Impact 700M media impressions for one night event in London and New York *F@st Company #CommerceInMotion 18

The Games People Play 62M US Internet users play at least one 27% game on a social network monthly *eMarketer of the online audience #CommerceInMotion 19

CountlessConversationsSwirl… BRAND THE CONVERSATION PRISM …on a -Brian Solis & JESS3 Plethora of Platforms #CommerceInMotion 20

Polling Question #2• Which of the following SoMoLo tools do you believe will have the biggest impact on your stores next year? a) Smartphones b) Tablets c) Social networks, apps, and games d) Location-based apps and marketing #CommerceInMotion 21

Stores Are STORES BRANDUnder Siege #CommerceInMotion 22

Online Category Share is Growing ~50% computer hardware and software, music and video, books ~20% electronics, toys, baby products ~15% apparel, greeting cards, party supplies, office products ~10% sporting goods and cosmetics #CommerceInMotion 23

m-Commerce: Relentless Growth U.S. m-Commerce Sales ($US Billion) Source: Barclays Capital $2.9 $5.3 $8.8 $14.0 $21.0 $28.7 2010 2011 2012 2013 2014 2015 #CommerceInMotion 24

t-Commerce: Compelling Early Numbers the average iPad conversion rate is 7x iPad shoppers purchase that of smartphone devices *Shopatron Dual owners buy on mobile twice as often as single owners. “Duals” made >20 mobile purchases in the last year. 50% more than traditional web users *Shopatron #CommerceInMotion 25

s-Commerce: Explosive Growth Looms U.S. s-Commerce Sales ($US Billion) Source: Booz & Co. $1.0 $3.0 $5.0 $9.0 $14.0 2011 2012 2013 2014 2015 #CommerceInMotion 26

Daily Deals: Here to Stay U.S. Daily Deal Revenues ($US Billion) Source: BIA/Kelsey $.87 $1.25 $1.73 $2.34 $3.08 $3.93 2010 2011 2012 2013 2014 2015 #CommerceInMotion 27

Social Gaming: Already a $1B Business 2011 Social Gaming Revenues Advertising Lead Gen $192M Virtual Goods $653M $248M 2010: $856M 2012: $1.32B *eMarketer #CommerceInMotion 28

The Bottom Line? Share of Wallet WillContinue to Shift Online U.S. Online Retail Forecast ($US Billion) 15% 15% 14% 13% 12% 11% Source: Forrester $176 $197 $218 $240 $259 $279 2010 2011 2012 2013 2014 2015 (% of totals exclude grocery) #CommerceInMotion 29

Analysts forecast a2.2%Decline in store trafficduring 2011 holiday season*ShopperTrac Foot Traffic Under Siege #CommerceInMotion 30

55% of Retail associates indicated that shoppers were better connected to consumer information than in-store associates *Motorola Shopper Survey 2011Service Under Siege #CommerceInMotion 31

28% of store visits end with an average of $132 unspent Deal-habituated behavior Smartphones influence Out-of-stocks 39%of all walk-outs *Motorola Limited store associate assistance Long check-out processes *Motorola Shopper Survey 2011Conversions Under Siege #CommerceInMotion 32

Polling Question #3• Which of the following situations is creating the most challenges for your stores today? a) Reduced foot traffic b) Consumers having more knowledge than employees c) Customers shopping competitors on mobile phones inside your store d) Social, mobile, local apps from competing retailers or brands #CommerceInMotion 33

The Good News:A SoMoLo ShowcaseInteresting and Successful Examplesfrom Around the World#CommerceInMotion

Stop & Shop: Smartphone as In-StoreShopping Assistant • In-store shopping app where consumers can scan, shop, tally and check out via mobile device – Integrated w/budgets, shopping lists • Shoppers receive “while they shop” personalized in-aisle offers – Based on past purchasing history Will eventually eliminate the need for custom devices in use today #CommerceInMotion 35

Shopkick: The Store’s New Best Friend? How Shopkick Works • Users see a list of nearby participating stores – “Kickbucks” earned just for entering (no check-in required) • Inside, stores offer rewards for specific shopping behaviors – Scanning a poster or product bar code – Special discounts on specific products – Time-based promotions #CommerceInMotion 36

Shopkick: The Store’s New Best Friend? • 2.3M active users 2,000,000 • 700M product views in year one • 7M product scans in store • Users open the app 14 times a month – Review products from 16 stores each time • Once a Shopkick user is in a store, conversion rates are highOne retailer reports 750,000$50Min measurableincremental revenue Active Shopkick Users Since August 2010 Launch *Shopkick *Mashable 110,000 August 2010 October 2010 January 2011 July 2011 #CommerceInMotion 37

MyTown: Fun, Games, Impressions How to Play MyTown • 4M users build their own virtual towns from actual buildings & businesses – Checking in earns virtual cash • Cash buys virtual properties & products • Property owners collect rent from users who check-in – Properties and products – 35M Branded virtual items consumed every week “Real-World Monopoly” #CommerceInMotion 38

H&M on MyTown: Brand Impressionsand Store Traffic• Whenever near an H&M store, virtual goods from the Blues collection appeared – Players earned points for product check-ins• Players also received offers for real goods available in nearby stores – Points for scanning in-store product bar codes10.6M Impressions · 350,000 Store Check-ins · 700,000 Product Scans #CommerceInMotion 39

Instagram Makes Phone Cameras RelevantWildly Popular Photo Enhancing and Sharing App for iPhone 10M one-tap 1.3M pics shared active users sharing every day #CommerceInMotion 40

Bergdorf Goodman Makes InstagramRelevant to their Store Share Your Shoe Obsession “Isn’t that the secret to the absolute perfect pair? You never know what adventures they hold.” • Photo sharing campaign – Consumers use Instagram to take/edit/post photos of BG shoes in various locales throughout the city • Primary goals: – Promote newly expanded shoe salon – Brand awareness • Geotags map each photo to “Shoes About Town” site #CommerceInMotion 41

Customers haveembraced thecampaign… First 2 Weeks 650 Photos 8,000 Followers #CommerceInMotion 42

Clienteling = SoMoLo Salespeople • Arming sales associates with customer history, product information, CRM tasks, etc. • Ensuring exceptional selling and service – Pre-Sale Personal outreach, appointment setting, visit prep – During Recommendations, cross-sells, wish lists, preferences – Post-Sale Thank You outreach, satisfaction inquiry, next visit planning #CommerceInMotion 43

SoMoLo Salespeople = LIFT 63% larger transactions 33% more repeat visits 3.5x annual spend *Raymark #CommerceInMotion 44

Luminate: Content for 3 Trillion Images Ads, content, social tools overlay online images “image apps" turn static images into dynamic and interactive experiences #CommerceInMotion 45

Luminate: The Dawn of i-Commerce? Publish Tag Shop 4,000 publishers150M visitors/month30B image views/year >100 different merchants: Macy’s *TechCrunch Zappos, Nordstrom, Gap, Pip erlime, etc. #CommerceInMotion 46

Blippar: More than a Blip on A/R Radar A new augmented reality app – with an intriguing twist • Image recognition-enabled augmented reality • Advertisers can now engage consumers without compromising designs with awkward tags and markers – Print ads, store signs/posters, billboards, and product packaging #CommerceInMotion 47

Cadbury Brings “Eye Candy” to the Shelf • Chocolate bars become an interactive, 3D game on the shopper‟s Smartphone • “Qwak Smak” is played directly on product packaging – No markers, no shelf tags • Just point the phone at a Cadbury product and Qwak Players submit Smack will „blipp‟ from wrapper game scores into a drawing for to screen as if stuck to the bar prizes #CommerceInMotion 48

SCVNGR: On the Hunt for Engagement “A Game Layer on Top of the World” • Virtual scavenger hunts – Utilizes LBS to push contextual treks, questions and challenges to game players • Businesses and brands can design custom scavenger hunts catered to their customers and locations – Ongoing – Promotional – Special Events #CommerceInMotion 49

Game On! At Buffalo Wild Wings “Home Court Advantage” • 12-week March Madness campaign • Numerous store-based challenges – Photos of friends, trivia, games • Social integration throughout – Rewards for completing • Extremely popular with customers – 184,000 players at 730 locations • 1,288,000 challenges completed • 30% returned to play multiple times – 100M social impressions – 3.6 years brand engagement in stores *Mashable #CommerceInMotion 50

SHOPBOX: Redefining Local and Mobile? The Far Reaches of Pop-Up Retail • A repurposed bright green shipping container • Completely unattended • Visitors browse items from the giant Intriguing automat‟s plate glass windowpotential for event marketing? – They register on iPads attached to the sides of the container • To purchase, customers text message their order and the products are shipped to their homes #CommerceInMotion 51

Lessons LearnedInsights and Ideas#CommerceInMotion

Key Objective for SoMoLo? Interaction Integration Seamless, collaborative online and offline experiences Notification of offers, opportunities, product lineup changes Alert customers Traffic Relentlessly seek opportunities to improve store traffic Education about products, features, programs Inform shoppers Relationshipsand add value to bring them back Engage, entertain Access when, where, how, and on the devices THEY prefer Be available Community local influencers and advocates to build networks Identify and embrace Transactions (and every salesperson) with conversion tools Arm each channel #CommerceInMotion 53

“Mashops”: the Store’s Best Weapons?Retailers must fight back by creating a mashup ofthe best Web-based and in-store shopping experiences – Interactive digital displays – Video assistants – Internet devices – Social networking technologies – Location-based services – – Salesforce empowerment tools Wi-Fi networks 54% of shoppers surveyed want to try a mashop service in the store *Cisco #CommerceInMotion 54

“Always On” Consumers Require“Always On” Marketing• New paradigm: Marketing = Media• The relevance of Fire and Forget campaigns executed through traditional media will continue to diminish• More and more of marketing‟s time, resources and energy need to be managed in “Always On” mode – Persistent customer engagement – Regularly nurtured relationships – Constant community building – Tireless new customer acquisition #CommerceInMotion 55

What if…Polaroid hadcreatedInstagram?*Jon Thomas, Storytelling 56

What if…Dole hadcreated FruitNinja?*Jon Thomas, Storytelling 57

What if…Whole Foodshad createdFarmVille?*Jon Thomas, Storytelling 58

About Commerce in Motion CommerceInMotion.com A thought leadership program developed by/targeted to supply chain and retail executives #CommerceInMotion 59

A Framework for Commerce in Motion Executive’s Guide to Commerce in Motion now available online 60

RedPrairie All-Channel Commerce #CommerceInMotion

Questions?David.Bruno@RedPrairie.com#CommerceInMotion

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Stores Under Siege: The Rise of the SoMoLo Shopper

by RedPrairie on Oct 19, 2011

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Stores Under Siege: The Rise of the SoMoLo Shopper Presentation Transcript