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

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The list of social, mobile, and now local apps, gadgets, games and networks that have become part of most consumers’ lifestyles is virtually endless. And all of them affect shopping behaviors. ......

The list of social, mobile, and now local apps, gadgets, games and networks that have become part of most consumers’ lifestyles is virtually endless. And all of them affect shopping behaviors. Social networks have become legendary for their ability to influence purchasing decisions. Price-hunting on smartphones is standard operating procedure for most shoppers, and location-based services are beginning to attract nearby shoppers – often times right out of one store and into another down the block with a more compelling offer.

Caught in the middle of these transformative behaviors is the retail store. Our stores truly are under siege.

This presentation looks at how stores can fight back by leveraging these tools to engage, entertain, and transact more business with more shoppers.

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  • 1. Stores Under Siege:The Rise of SoMoLo ShoppingLessons Learned from Early Attempts toEngage these Savvy Shoppers#CommerceInMotion
  • 2. What is aSOMOLOShopper? #CommerceInMotion 2
  • 3. SOCIALMOBILELOCAL #CommerceInMotion 3
  • 4. 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
  • 5. Where Are These“SoMoLo” Shoppers? #CommerceInMotion 5
  • 6. They’reEverywhere… #CommerceInMotion 6
  • 7. 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
  • 8. “Tools of the Trade”The Latest SoMoLo Trends andtheir Impact on the Store#CommerceInMotion
  • 9. Smart Devicesare Everywhere50Bworldwide by 2020 *Cisco 50% of Americans will have a Smartphone by the holidays *Nielsen #CommerceInMotion 9
  • 10. (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
  • 11. 17B downloads in 2011 *ForresterApps, Apps& More Apps #CommerceInMotion 11
  • 12. Cracking the Code #CommerceInMotion 12
  • 13. 14M US mobile users scanned a QR code in June 2011 *Comscore 6.2% of total mobile audience #CommerceInMotion 13
  • 14. Location, Location,Location65MAmericans use mobile or sociallocation-based services*Pew Research 55% of Smartphone users #CommerceInMotion 14
  • 15. photo circa 1937Augmenting Reality #CommerceInMotion 15
  • 16. Increasing Traffic 12.2M Shopping Reviews #CommerceInMotion 16
  • 17. creates “infinite” shelf spaceBringing The Shelf to Life #CommerceInMotion 17
  • 18. 3-D Imagery Delivers(Big) Visual Impact 700M media impressions for one night event in London and New York *F@st Company #CommerceInMotion 18
  • 19. 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
  • 20. CountlessConversationsSwirl… BRAND THE CONVERSATION PRISM …on a -Brian Solis & JESS3 Plethora of Platforms #CommerceInMotion 20
  • 21. 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
  • 22. Stores Are STORES BRANDUnder Siege #CommerceInMotion 22
  • 23. 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
  • 24. m-Commerce: Relentless Growth U.S. m-Commerce Sales ($US Billion) Source: Barclays Capital $2.9 $5.3 $8.8 $14.0 $21.0 $28.7 2010 2011 2012 2013 2014 2015 #CommerceInMotion 24
  • 25. t-Commerce: Compelling Early Numbers the average iPad conversion rate is 7x iPad shoppers purchase that of smartphone devices *Shopatron Dual owners buy on mobile twice as often as single owners. “Duals” made >20 mobile purchases in the last year. 50% more than traditional web users *Shopatron #CommerceInMotion 25
  • 26. s-Commerce: Explosive Growth Looms U.S. s-Commerce Sales ($US Billion) Source: Booz & Co. $1.0 $3.0 $5.0 $9.0 $14.0 2011 2012 2013 2014 2015 #CommerceInMotion 26
  • 27. Daily Deals: Here to Stay U.S. Daily Deal Revenues ($US Billion) Source: BIA/Kelsey $.87 $1.25 $1.73 $2.34 $3.08 $3.93 2010 2011 2012 2013 2014 2015 #CommerceInMotion 27
  • 28. Social Gaming: Already a $1B Business 2011 Social Gaming Revenues Advertising Lead Gen $192M Virtual Goods $653M $248M 2010: $856M 2012: $1.32B *eMarketer #CommerceInMotion 28
  • 29. The Bottom Line? Share of Wallet WillContinue to Shift Online U.S. Online Retail Forecast ($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
  • 30. Analysts forecast a2.2%Decline in store trafficduring 2011 holiday season*ShopperTrac Foot Traffic Under Siege #CommerceInMotion 30
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. The Good News:A SoMoLo ShowcaseInteresting and Successful Examplesfrom Around the World#CommerceInMotion
  • 35. 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
  • 36. 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
  • 37. 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
  • 38. 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
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. Customers haveembraced thecampaign… First 2 Weeks 650 Photos 8,000 Followers #CommerceInMotion 42
  • 43. 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
  • 44. SoMoLo Salespeople = LIFT 63% larger transactions 33% more repeat visits 3.5x annual spend *Raymark #CommerceInMotion 44
  • 45. 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
  • 46. 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
  • 47. 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
  • 48. 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
  • 49. 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
  • 50. 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
  • 51. 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
  • 52. Lessons LearnedInsights and Ideas#CommerceInMotion
  • 53. 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
  • 54. “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
  • 55. “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
  • 56. What if…Polaroid hadcreatedInstagram?*Jon Thomas, Storytelling 56
  • 57. What if…Dole hadcreated FruitNinja?*Jon Thomas, Storytelling 57
  • 58. What if…Whole Foodshad createdFarmVille?*Jon Thomas, Storytelling 58
  • 59. About Commerce in Motion CommerceInMotion.com A thought leadership program developed by/targeted to supply chain and retail executives #CommerceInMotion 59
  • 60. A Framework for Commerce in Motion Executive’s Guide to Commerce in Motion now available online 60
  • 61. RedPrairie All-Channel Commerce #CommerceInMotion
  • 62. Questions?David.Bruno@RedPrairie.com#CommerceInMotion