This is a presentation from a research programme looking at the future role of mobile phones in retail prepared for the Direct Marketing Association and Empirix

1. Mobile & Shopping – what's
going on?
Shopping with your mobile

2. Agenda
• Methodology
• Executive Summary
• Understanding the Gap
• Consumers – v – Business
• Q&A

3. Methodology
• There are always challenges when asking about the future so
we created a couple of scenarios based on a series of
interviews with members of the DMA Mobile Council and
other leading experts.
• We created an on-line survey where you saw a 2/3 minute
film and then answered questions about it.
• 85% watched both films and completed the survey
• UK Survey – around 5500 responses
– 3900 Consumers
– 1600 Professionals

4. Exec Summary
There is a major gap between what Business
can deliver and what consumers want
Consumers want to shop now
Businesses are not ready and are dragging
their feet
Its going to be a more complex world to work
in, where many things break down and service
will suffer

5. Executive Summary
Consumers –v – Business
Understanding the Gap
Consumers Business
Want it now Dragging their feet
Focus on Mobile Sites for Customer Acquisition
Service Quality Issues
Want it free Where is the business case
Save me money Save me money
Security concerns Unsure of the right strategy
Permission based
Relevance
Single Experience Channel by channel related activity

6. Consumers Business

7. Consumers
Want it now
31% of audience are currently accessing the internet by phone and
this is expected to increase.
69% of them saying they used the mobile internet regularly.
Growth in mobile usage of social networks is increasing with
“I use Facebook
35% saying that they often access Facebook from their mobile to make
mobiles arrangements and
get updates 3 or 4
Smartphone sales increased in 2010 and expected to grow 23% times a day. I don’t
over this year** use email”
23 million people shopped via mobile last year***
Female - 35
82% of shoppers say they want new services answered 6 separate
positive indicators
Even the current experience breaks down often 60% UK smartphone users
reported having issues with smartphone features
*Harris interactive Survey March 2011 Smartphones
**IDC
***Glamoo,

8. Business
Dragging their feet
Focus on Mobile Sites for Customer Acquisition
Service Quality Issues
“Things are getting more complicated every day with consumers wanting
things that we are struggling to deliver and I hope I have found a new job
before this stuff really takes over” - Call Centre Manager – Motor (350 seats)
42% say they have a mobile strategy today
82% are working on mobile sites & apps driven by marketing for customer
acquisition for delivery over the next 36 months
94% have no end to end service assurance strategy
57% of organisations stated that they did not have a strategy for mobile today
14% say they have no plans to put a strategy in place
100% think that mobile services will change the way they do
business

9. Business

10. Consumers
Want it free
Consumers expect new services
but are reluctant to pay for them.
87% not even from existing
suppliers
YES
Skype posted a $7m operating loss
in 2010 but still sold for $8.5b
Facebook 0 (free application)
growing (230m users) and with zero NO
data charge from 3UK and other
operators

11. Business
Where is the business case
“Currently we are driven by Marketing 47% of consumers who
not Customer Service. I expect that responded to mobile
mobiles will completely change how advertising went on to make
contact centres work -we are just not some kind of purchase
thinking about it properly and have no The MMA and Lightspeed Research
baseline”…. Director Call Centres Major
Insurer (1700 Seats) All Contact Centre Managers
expect call volumes & call
lengths to change but have no
81% have not yet delivered a full mobile basis yet for resources
strategy business case management
75% not sure how to deal with the cross
channel impacts in writing a business case

12. Business
Save me money

13. Consumers
Save me money Consumers are
very positive
about the new
services

14. Consumers
What we want
• Increasing appetite for mobile shopping
services but on our own terms
“My biggest concern is
that all this stuff won’t
– Relevant actually work properly
– Secure like the self service
– Personal Data Protection checkouts at the
supermarket and that
– Well thought out my data will end up
– Working properly being stolen”
– Saving time
– More convenient
Male - 25
– Free

15. Consumers
QR

16. Business
What we can do
• New services are 18 -24 months away
– Need to reengineer the customer contact strategy
– Focus on Customer acquisition more than service
– Drive to mobile marketing underway & linked to social media
– Mobile will have a significant impact on consumer behaviour over next 24
months but we have to understand how
– Save money
– Upsell more
– Increase First Time Resolution
– Increase Customer Satisfaction
• Monitoring quality is poor at the moment
– No view of end to end monitoring quality
– Major challenge to deliver services that meet consumer expectation

17. Consumers Business
NFC
Near Field Communication
– Consumers have an – Not enough
appetite handsets to deliver
– Concerns about critical mass
security – Concerns about
– Want it now Compliance
– Downloading – Have not defined
location based apps services or budgets
– Think that is coming – Studying what is
now going on in Japan

18. Consumers Business
Customer Experience
“A single experience “Bringing all of these so called
where companies multi-channel services together
remember all my in the way that they have in
transactions and it other markets around the
doesn’t matter if I used world seems like a big
the website or found mountain to climb. Currently I
them on Facebook or am still trying to work out how
phoned them they would to deal with Social Media and
treat me the same. I that’s tough enough”
want to be spoken to
with respect not talked
Contact Centre Manager Central
down to like a child!”
Government (3500 seats)
Male 60

19. Consumers
The future of shopping over the next 3 years
Based on Consumer behaviour over the last 12 months and the responses in the survey
Mobile phones have become a significant Mobile Facebook & Google will play an
part of shopping over the last 2 years and increasing role in shopping as
will play an important role in shopping organisations drive more and more
over the next 36 months promotions onto the mobile web
Free services with increasing number of There will be an increased adoption of
appropriate incentives will become QR Code Marketing linked to mobile
common sites and to the display of product
information
Mobile shopping will include a blend of
new experiences including easy to use, NFC Chipped telephones & services will
remote ordering, self service, automated be ubiquitous
secure payment and personalised
services Faster chips and larger storage capacity
will continue the increasing trend for
Mobile will deliver shoppers an mobile to replace static PC’s
extended relationship that they demand
with suppliers that will save time and be Tablets like the i-pad will also become a
more convenient standard communication tool in
common use

20. Business
The future of shopping over the next 3 years
Based on Business behaviour over the last 12 months and the responses in the survey
The mobile shopper expected to be a key Flash technology based websites will
demographic over the next 36 months challenged be by next generation mobile
friendly web technologies such as
HTML5
Focused activity lags behind consumer
demand but the pace of investment in
this channel is increasing as dramatically Almost all B2B & B2C organisations will
successful results from the early have mobile web as standard within 36
adaptors such as Facebook, Amazon, months
M&S Tesco etc. continue to wow the
market New end to end assurance solutions will
need to be developed quickly as
Although not common place yet the use assurance of service will become a key
of automated self service & payment commercial advantage as consumer
together with QR / Bar codes will have an expectation continues to change
increased role in lowering the cost of
customer service and marketing Faster chips and larger storage capacity
promotion will continue the increasing trend for
mobile to replace static PC’s

21. Consumers Business
Conclusions
There is significant momentum towards a revolution in shopping through the mobile
and tablet underway and its impacted both business and consumers over the last 12
months but there is a gap between consumer expectation and business planning
Some of the services that are being designed really do have the wow factor
The opportunities for the delivery of more focused and personalised service is there
but there are barriers on both sides in relation to the appropriate use of data,
security & cost savings
Making this new world work, integrating it into the contact centre and other
channels, producing the next generation of business cases and customer experience
design, will inhibit the speed of innovation
Most consumers will be shopping with their mobile in some form
regularly in 36 months

22. Contact Info
For more information about the Customer Experience Foundation
contact:
Morris Pentel
Customer Experience Foundation
Tel: +44 (0) 7947 259818
Skype: mopentel
Email: Morris.Pentel@cefstudies.org
Visit our website: - www.customerexperiencefoundation.org
Follow me on twitter - http://twitter.com/morrispentel