2. Amazon CEO Jeff Bezos jolted the world when he shared his vision
of delivering products ordered online in less than 30 minutes
to any location using autonomous drones. Apple activated its
groundbreaking iBeacon device in 254 retail stores across
the United States;1
this tiny device gathers data about the
exact location of a consumer in a store, enabling retailers to
deliver onsite promotions targeted to their specific interests.
And eBay joined forces with three retailers to launch "digital
storefronts" in San Francisco that enabled holiday shoppers to
purchase goods from “shoppable windows,” pay for products
on their mobile devices and coordinate free home delivery.
With more than six billion mobile subscriptions active around
the world,2
the retail ground is shifting. Mobile technologies
such as 3G and 4G networks, Machine-to-Machine (M2M)
solutions, Wi-Fi, and location and behaviour-based data
analytics are dramatically changing how consumers make
decisions, engage brands and purchase products. Success in
this new retail world demands business strategies that
leverage mobile innovations. These technologies are no
longer the sole domain of the Chief Information Officer; they are
now essential tools in the Chief Marketing Officer’s arsenal.
Executive
Summary
The 2013 holiday season
underscored the revolutionary
change afoot in the retail sector.
Retail leaders such as Amazon,
Apple and eBay captivated
consumers with exciting
innovations that will enhance
the shopping experience both
today and tomorrow.
1 http://www.zdnet.com/apple-launches-ibeacon-in-254-stores-to-streamline-shopping-experience-7000024026/
2 Source: International Telecommunications Union, February 2013
3. They unleash new opportunities for merchants to increase personalization, productivity and profitability. They
also pose big questions about how to capitalize on the many benefits of this technology. Bombarded with
options and uncertain about how to begin, retailers may defer decision-making, or worse, take no action at
all. Risk-averse merchants will be left behind as bolder leaders embrace mobile-enabled shopping.
This white paper aims to provide critical insight and help merchants:
• Understand the mobile-enabled retail landscape and the new connected customer;
• Explore key opportunities presented by mobile solutions in the retail sector, and how they can
help deliver a more personalized and positive customer experience, as well as boost retailer
productivity and profitability;
• Learn how these technologies are being applied in the Canadian and global retail markets; and
• Offer recommendations on how retailers can use mobile technologies to gain competitive
advantage, improve decision-making and increase return on marketing dollars and achieve
greater results.
With aggressive American and European retailers entering the Canadian market, the time to develop
a mobile strategy and exploit wireless capabilities to increase competitiveness—and sales—is now.
“Today, customers walk through our doors with smartphones that constantly stream data,
and directly influence the path to purchase. This is just one facet of the sea change in the
shopping landscape. As a retailer, we recognized that we must adapt to this new digital
reality, or be left behind. Every merchant, large and small, can embrace mobile technologies
to enhance business performance and customer experience. A key to success: trusted experts
who can help retailers find the right solutions, and guide implementation.”
Eugene Roman, Senior Vice President,
Information Technology and Chief Technology Officer, Canadian Tire
2
4. In our highly connected world, there are almost as many
mobile subscribers as people on earth.3
Ninety-one percent
of the global population owns a mobile phone and 56
percent owns a smartphone.4
Nielsen reported in 2013
that many global smartphone owners use their devices to
look at and often purchase products, conduct price
comparisons and read product reviews that directly influence
their buying decisions.5
The world will become more and more connected. The
“Internet of Things” (IoT) and the Machine-to-Machine (M2M)
technology behind it connect sensor-based objects, enabling
them to talk to each other and take action without human
intervention. Within the retail sector, this technology is already
beginning to improve supply chain management, the shipment
and distribution of goods, wireless payment and digital
signage. By 2020, it is estimated that 50 billion sensor-based
devices will be connected across the planet, revolutionizing how
we discover, experience and purchase products.6
The way we shop will continue to evolve. Exploratory window
shopping is not as prevalent as it once was. Today’s informed
consumers know what they want, where to find it and how to
1/ The
New Retail
Landscape
Demands
New Business
Strategies
Mobile and digital technologies
are radically transforming the
retail landscape.
The New Retail Reality: A Few Facts and Figures
• Seventy percent of smartphone users plan to use their device for
online shopping in the coming year (International Data Corporation, 2014)
• Global mobile transaction volume is expected to experience
an average of 35 percent annual growth between 2012 and
2017, and achieve a market value of $721 billion with more
than 450 million users by 2017 (Gartner, 2013)
• In the 2013 holiday shopping season, more than $16 billion was
left on the mobile table due to abandoned mobile shopping carts
(Jumio, 2014)
3 http://www.slideshare.net/wearesocialsg/social-digital-mobile-around-the-world-january-2014
4 http://www.digitalbuzzblog.com/infographic-2013-mobile-growth-statistics/
5 http://www.nielsen.com/us/en/reports/2013/mobile-consumer-report-february-2013.html
http://www.cisco.com/web/about/ac79/docs/innov/IoT_IBSG_0411FINAL.pdf
3
5. get the best price. The retail experience is
being shaped by the abundance of data that
is always available on consumers’ mobile
devices. Retailers must leverage this
connected world to provide an irresistible
in-store shopping experience, from pre-sale
to post-sale, to maximize repeat business,
referrals and revenue generation opportunities.
The most successful merchants will engage
customers using their preferred modes of
communication, target deals to their specific
interests, help them get what they need as
quickly as possible and motivate them to
purchase again soon. This is giving rise to
gamification, learning and entertainment as
criticalelementsoftheshoppingexperience.
Technology is bringing in-store and online
customer experiences together. Savvy retailers
are leveraging mobile technologies to engage
consumers as they shop in Wi-Fi-enabled stores.
This allows merchants to interact with
customers who subscribe to digital promotions
or opt in to loyalty programs, by pushing out
time-limited offers or promoting items of
particular interest on digital signage. Location
and behaviour-based data analytics help
retailers gather the right customer information
for optimizing sales and generating revenue.
“It is our responsibility to drive the use of wireless technology within the retail sector to create
a better experience for our customers--and to build a better bottom line. There are many
ways for retailers to seize the mobile opportunity in cost-effective ways. This includes the
development and promotion of dynamic and consistent content across all channels--from
communication in-store to mobile apps, web, text, email and social media. A majority of
customers walk into a store or restaurant with a smartphone--requiring no capital
investment from retailers. Merchants need to integrate this channel into all in-store activities,
and take advantage of this captive marketing opportunity.”
Chris Covell, CIO, Boston Pizza
4
6. What This Means for Retailers: New
Customers, Pain Points and Path to
Purchase
The New Mobile-Assisted Shopper
7 http://www8.gsb.columbia.edu/globalbrands/m-shopper-research
Figure 1: Types of Mobile-Assisted Shoppers: Showrooming and the
Rise of Mobile-Assisted Customers; Columbia Business School; September 2013
5
Today, retailers compete more aggressively than
ever for sales, positive brand awareness and
customer loyalty. Deep customer knowledge,
including purchase patterns and dynamics, is
key. In 2013, New York’s Columbia Business
School examined 3,000 shoppers in the U.S.,
UK and Canada to gain insight into how and
why consume rs use the ir mobile de vice s in-
store . The study ide ntifie d five unique kinds of
mobile -assiste d shoppe rs7:
Wireless technology is transforming retail
transactions. With the emergence of the mobile
wallet, secure pin and chip point of sale (POS)
terminals, and RFID tags that provide real-time
product information, customers and merchants
alike will enjoy a more seamless purchase process.
Wireless technology also helps consumers find
what they want and checkout more quickly and
e fficie ntly. It re duce s custome r frustration and
lost sale s opportunitie s. But this te chnology is
more than simply conve nie nt. It e nable s
comme rce to happe n anywhe re and e ve rywhe re .
Consume rs will soon be able to scan a barcode
in-store , purchase an ite m and coordinate
shipping to any location with a fe w taps on
the ir mobile de vice .
7. The study also ide ntifie d the top thre e
re asons mobile -assiste d shoppe rs buy in-store
e ve n afte r finding the same product che ape r
online :convenience, urgency and immediacy.
Moreover, Columbia researchers found that 55
percent are willing to sign up for a loyalty
program to gain benefits on their smartphone
while in-store. It is important for retailers to
assess the mobile-assisted shoppers they serve to
develop the most impactful marketing strategies.
Separating Fact from Fiction: The Threat
of Showrooming
The increasing use of mobile devices by connected
shoppers has prompted growing concern about
showrooming. Despite the hype, an IBM study
recentlyfoundthatthisisnolongeroneofthebiggest
threats to stores. While showrooming contributed to
nearly 50 percent of online purchases in 2012, this
number dropped to 30 percent in 2013.8
Columbia’s research also showed that only 25
percent of mobile-assisted shoppers are likely to be
swayed by competitor price. In fact, mobile-assisted
shoppers will often use a mobile device to access
the retailer’s own website while in-store to gather
additional information about a product or service
(such as reviews and ratings). Retailers should
therefore provide a cohesive in-store experience
that takes advantage of all channels, to help capture
these prospective sales.
In addition to a mobile-enabled website,
many retailers are increasing the strategic role
and value of the physical store to combat
showrooming. For example, many merchants
are now combining mobile content and in-store
activities such as free classes and information
sessions, complimentary beverages, price
matching programs and special deals. Traffic and
customer loyalty can be radically improved through
strategic marketing that merges the physical and
digital on-site experience.
Eliminating Barriers on the Path to Purchase
When developing and adopting a mobile strategy,
retailers should focus on creating a seamless path
to purchase. From the customer perspective, trust
remains one of the major barriers to the adoption
of mobile-assisted shopping. Users continue to
express concern about the storage of credit, debit
and other financial and personal information in
a mobile device that could be stolen or hacked. A
2012 Google study also identified several “usability
and experiential” factors that undermine consumer
adoption of mobile shopping technologies. This
reinforces the importance of creating relevant
content, rapid download time and user-friendly
applications targeting in-store customers.
The mobile revolution is also reconfiguring the
retail environment to stimulate greater in-store
traffic and create a highly differentiated experience.
For example, sporting goods stores may combine in-
store digital displays, mobile content and social media
that link marketing strategies to upcoming games
and competitions, local sports rivalries and
community events.
8 http://www.cnbc.com/id/101320824
6
8. Thetemporarypop-upshopisanotherphenomenon
that is capitalizing on mobile solutions. Retailers
such as JCPenney, Holt Renfrew, Microsoft,
Sephora and Gap are launching configurable
stores with dynamic themes, product offerings
and ambiance. Many of these merchants rely on
wireless solutions to promote products via digital
signs, as well as track inventory and facilitate
payment.
It is essential for retailers to invest in developing
a mobile-enabled workforce. To continually
enhance in-store customer service, stores such
as Nordstrom, Burberry, Apple and Shoppers
Drug Mart are equipping their employees with
smartphones and tablets. Sales representatives can
now quickly access product information (such as
sizing, materials or videos) or help customers find
goods that are unavailable in-store.
Byaccessingthestore’smobilewebsiteorbackroom
inventory, associates and consumers can peruse
these virtually endless aisles to locate products
of interest and explore other offerings. In addition
to boosting productivity and achieving greater
sales conversion, a mobile-enabled workforce also
increases employee and customer satisfaction.
This helps build loyalty on both sides of the retail
equation, minimizing the cost of employee turnover
and maximizing sales revenue and profitability.
How can retailers use mobile technologies to reach
the connected consumer, address key challenges
“M2M technologies are truly enabling the transformation of the retail sector. Wireless solutions
such as mobile broadband payment systems and Wi-Fi systems are enabling merchants
to capture customers and sales beyond the traditional bricks and mortar. Retailers are
increasingly meeting new customers at community events, launching ‘pop-up stores’ in
parks, street markets and campuses, and in doing so, providing customers the ability to
complete purchases wherever they may be. Pop-up retail stores require the ability to quickly
set up and process secure credit card payments, and manage inventory. Mobile broadband
payment systems make this possible--enabling commerce just about anywhere.”
Graeme Harfman, Director,
Product Line Management, Sierra Wireless
7
9. and create an exceptional in-store customer experience that
drives sales? This paper provides merchants with an overview
of mobile solutions that provide competitive edge in our rapidly
changing retail landscape.
Omni-Channel Strategy: Creating a Consistent
In-Store and Digital Customer Experience
With the increasing availability of wireless connectivity and the
growing list of new smartphone capabilities, the connected
consumer can explore products, availability, ratings, reviews and
promotional offers—with a tap on their wireless device while
walking by or visiting a store. This data is almost limitless and is
readily available across social media outlets, mobile-enabled
websites and apps. The convergence of mobile technologies and
these customer engagement platforms provides many new ways
for retailers to reach customers in-store.
“Omni-channel retailing” enables customers to enjoy a consistent
and integrated experience across all shopping channels in
the mobile, digital and in-store environment.9
Shoppers
receive the same messages, source the same inventory and
make purchases whether shopping in-store or online using a
computer or mobile device. As outlined in Figure 2, there are
many digital, mobile and in-store touchpoints that influence
the customer shopping experience and path to purchase.
2/ Seizing
the Mobile
Opportunity
for Competitive
Advantage:
Personalization,
Productivity and
Profitability
Creating a Highly
Personalized Customer
Experience that Drives Sales
9 http://www.retailcustomerexperience.com/articles/sxsw-preparing-for-the-new-omnichannel-customer-experience/
8
10. How does omni-channel marketing benefit retailers? It drives greater profitability. Research conducted by
IDC Retail Insights shows that omni-channel shoppers spend between 15 and 30 percent more than multi-
channel shoppers10
and exhibit strong brand loyalty, often influencing others to patronize and purchase
from a brand. To be truly effective, retailers must have a 360-degree view of their customers and
consistently cater to their specific needs and interests.
Leveraging the Right Customer Data to Drive Sales and Brand Loyalty
Customers communicate and interact with brands in different ways using different devices. It is essential for
retailers to understand the specific preferences, attributes and purchase history of their customers, and then
put this information to work across all customer touchpoints. There is a host of new technologies that allows
merchants to gather and analyze data on consumer location and behaviour. These can help retailers
segment and target prospects and customers based on shared demographic and behavioural patterns, as
well as maximize sales opportunities at each stage of the shopping process. So, what technologies are
currently available to retailers?
Today, M2M-enabled Radio-Frequency Identification (RFID) tags, geo-fencing and other location-
based services (LBS) give retailers new customer insight, from simple store traffic patterns to customer
preferences
10 http://www.bizreport.com/2009/10/have_you_met_the_omni-channel_shoppers.html#
9
Figure 2: Touchpoints influe ncing the
customer shopping experience.
11. and shopping habits. When these behavioural
attributes are combined with other subjective
consumer insights, a retailer and its brands can
orchestrate targeted campaigns that drive greater
sales. Provisioning product and
promotional information relevant to the
customer when, where and how they want to
receive it is critical. This requires a sound
approach to the acquisition, management and
tracking of customer information from different
touchpoints.
A Customer Relationship Management (CRM)
system can provide comprehensive data-driven
and evidence-based insight into current and
prospective customers, and help develop more
effective marketing strategies. To ensure merchants
reap the greatest benefit, CRM must amalgamate
from all touchpoints, devices and media to create a
comprehensive view of the customer. This includes
purchase history, social media, retail subscriptions,
purchase preferences and text and email activity.
Many retailers are now experimenting with the
creative application of CRM and data analytic
technology. For example, physical retail stores
can now be outfitted with RFID sensors to create
digital customer touchpoints. These location-based
devices can create a more interactive customer
experience, while gathering real-time data on
customer location and shopping behaviour. They
also enable retailers to push timely and relevant
offers, enticing customers to “buy now,” while also
cultivating longer-term brand loyalty. This may be
achieved by delivering coupons to their mobile
“While we’ve only just scratched the surface with Mobile Shopper, the opportunities we see
with this platform are exciting and have the potential to transform our business. The Smart
Wi-Fi solution we offer today is a bonus for mall visitors, and allows us to gather critical
insights to solve real business challenges. We now have a better understanding of customer
traffic in areas of the mall and peak times of day, so we can design more relevant and
personalized marketing and engagement activities.”
Lyle Goodis, Vice President of Corporate Marketing, RioCan
10
12. devices as they browse in a particular section, offering dynamic pricing on a particular product via in-store
digital signage or engaging customers through interactive displays. The goal is to use customer location-
based data to drive sales at the moment of greatest purchase opportunity.
In February 2014, Rogers Communications launched a mobile customer engagement solution designed to help
retailers better capitalize on such opportunities. RioCan, Canada’s largest shopping centre owner, has
be e n first to trial the Roge rs Mobile Shoppe r
solution, which includes Smart Wi-Fi, in select
Ontario shopping centres. Mobile Shopper
combines a wireless network connection with
mobile applications to deliver relevant content, such
as daily offers and promotions, to customers who
opt in via their mobile device.
RFID tags are being used in-store by more and
more retailers, like Bon-Ton,11
to instantaneously
provide customers with product information.
Merchants can use these devices to track
which marketing displays and products are
generating the greatest customer interest and
sales conversion rates. They also enable real-
time inventory monitoring and management,
from warehouse to store.
Geo-fencing technologies are helping retailers gather
timely information and engage prospective customers in more personalized ways. Geo-fencing uses GPS or RFID
to define virtual geographical boundaries in a defined location.12
Retailers can use it to set up “triggers” so that
when an opted in mobile shopper enters or exits these perimeters, they receive promotional messages, special
offers and discounts via email or text. For example, Pizza Hut UK set up a geo-fence perimeter within a half-mile
radius of each of their 340 locations. When consumers travelled through a half-mile radius of one of these
restaurants, they received anSMSpromotionontheirmobilephone.Duringthe15monthsPizzaHutexecutedtheir
mobilemarketingcampaign,theyfounditwas142percentmoreefficientinincreasingincrementalsalesthanother
marketingchannels,4.4timesmoreeffectivethanTVadsand2.6timesmoreeffectivethanonlineads.13
In 2013, the Bon-Ton department store
used Near Field Communication (NFC) RFID
tags to transform shoes on the retail shelf
into mobile marketing channels. With just a
tap of a smartphone to the RFID tag in the
shoe, shoppers learned whether the store
had the shoes in the desired size, colour
and style. If it was not available, the
shopper was guided to the nearest store
with the shoe in stock, or the company’s
mobile commerce site. Bon-Ton has
deployed hundreds of thousands of RFID
tags to more than 30 stores to date.
11 http://www.retailsolutionsonline.com/doc/bon-ton-it-investments-inventory-and-e-commerce-improving-0001
12 http://whatis.techtarget.com/definition/geofencing
13 http://www.tatango.com/blog/30-mobile-marketing-case-studies-you-need-to-bookmark/
11
13. Digital signage can capture the
imagination and the impulse buy.
Digital signs allow merchants to
dynamically adapt advertising
content (from videos, images
and messaging to social media
and more) to appeal to specific
in-store customers, and increase
the probability of purchase. This
interactive medium is helping
retailers like 7-Eleven14
boost sales
of advertised products. Luxury
brands such as Gucci and Burberry have deployed interactive digital displays in flagship stores enabling
customers to browse through runway fashions with a swipe of the screen, or watch fashion shows live in-
store and place product orders on their smartphone. Digital signage also helps merchants create a more
memorable and engaging customer experience, as well as a leading-edge store environment.
Free Guest Wi-Fi and Mobile Apps: Retail Table Stakes
FreeguestWi-Fiandmobileappsarenowtablestakesforthecompetitivemerchant.FreeguestWi-Filetsconsumers
use their devices while shopping in-store without incurring data fees. Consumer devices are also
guaranteed to operate everywhere in-store, minimizing the disruption that often occurs in low-coverage
areas. As well as enhancing the customer experience, these networks can help retailers deliver product
information to mobile devices through shelf tags and QR codes, gather real-time consumer behaviour data and
digitallyengageshoppers.
Rogers Communications is collaborating with Colony Networks, a cloud-based network software company,
to equip retailers with robust Wi-Fi and data analytic capabilities. Colony’s hosted Wi-Fi intelligence platform
allows firms to gather information about customers and passersby from Wi-Fi access points. Retailers can
track customer traffic and electronic habits, identify and resolve flow bottlenecks in the store and make
informed marketing decisions that drive sales and customer interaction. Guest Wi-Fi can also help retailers
turn mobile apps into effective promotional and engagement tools. Maximum ROI may be achieved by
rewarding customer loyalty with coupons and in-store offers, enabling key tasks such as the development of
an electronic grocery list, or creating entertaining or gamified in-store experiences.
7-Eleven deployed digital plasma signs in 46 stores across
Denmark to advertise key products, increasing:
• Average turnover by 30%
• Coffee sales by 30%
• Energy drink sales by 32%
• New soft drink sales by 109%
• 59% in Danish pastry sales
• 319% in sales of a new phone card
14 http://www.miradamedia.com/industry-3-studies.php
12
14. Enhancing Customer Efficiency and Satisfaction:
Mobile Wallet and Secure Chip and Pin Payment
The mobile payment system is an innovation
of the retail revolution that lets consumers use
their smartphone to make payments quickly and
securely. Users simply upload credit and debit card
informationtoanonlineaccount,linkittothemobile
wallet application and swipe their mobile device
across a retailer’s point of sale terminal to complete
a sales transaction. Mobile wallet transactions can
often be completed in less than 30 seconds, reducing
customer frustration around long checkout lines.
Brand loyalty programs can also be integrated
directly into the mobile wallet and payment process.
In addition to offering instant rewards as a customer
pays for their purchase, retailers can digitally track
data such as offer redemption, customer location,
spend per visit, purchase history and sales to date.
Like other information captured by the retailer’s CRM
system, this information can be used to enhance the
customer relationship, increase loyalty and drive
future sales.
“Today, it is essential for retailers and restaurants to provide reliable in-store mobile access as
part of the customer experience. Guest Wi-Fi is no longer a perk; it is a fundamental element
of the store. It attracts and maintains customers, creating greater sales opportunities. It also
facilitates brand engagement. For example, at Boston Pizza, we are developing new gamified
apps that entertain guests, deliver a fun in-restaurant experience, and help build loyalty.
Without robust Wi-Fi, our guests can’t use the app at the table, causing the marketing
strategy-- and desired business results--to fall short. Although Wi-Fi imposes a cost on
retailers, it is an investment that delivers a high return.
Chris Covell, CIO, Boston Pizza
13
15. A Case Study: Canadian Tire—A Global and Mobile Retail Leader
For more than 90 years, Canadian Tire Corporation, Limited (CTC) has been a part of the cultural fabric
of this country. The company started as a one-store operation in 1922 and now employs tens of
thousands of people from coast-to-coast. CTC and its corporate banners (Canadian Tire, Partsource, Gas+,
FGL Sports, Mark’s and Canadian Tire Financial Services) provide customers with the products and
services they need for everyday life in Canada.
The company, which originally focused on automotive parts and service, has shifted its gears towards
innovation and technology. If you ask Eugene Roman, he will tell you Canadian Tire is still committed
to being an “auto mobile” leader—a retailer that is “automatically mobile.” It is a commitment he
delivers on every day. As Senior Vice-President, Information Technology and Chief Technology Officer
Roman is leading this transformation across all banners.
Recognizing digitization as a critical factor in its future success, Canadian Tire is harnessing the power of
wireless technology to revolutionize every facet of its business and customer experience. It is a culture shift
that spans inventory management, employee training and store design, and every customer
touchpoint. Roman calls it an “E-Tail” transformation. This is not e-Commerce—it’s “Extreme Retail.” As
the company charts this new frontier, it is serving as leader in the retail industry.
14
16. According to Roman, Canadian Tire’s “E-Tail”
strategy comprises three key focal points: the
mobilization of customer experience, workforce
and supply chain. It is an ambitious vision, one that
requires the company to establish a solid
foundation on which to build and execute a bold
strategy that includes:
•
A high density network that enables robust Wi-Fi
and intelligent in-store intercommunication;
•
A $50 million cloud computing centre in
Winnipeg that links to a mini-cloud centre in each
of its nearly 1,700 retail and gasoline outlets;
•
A digital asset and content management system
with a trans-media engine that serves as the
backbone of the corporate website and all
backend supply management systems; and
•
Unwavering commitment across the entire
organization, from the Board to the front line.
With these fundamental elements in place,
Canadian Tire is well positioned for mobile action.
“It is important to deliver a consistent and engaging
customer experience across all channels—in-store,
online and on mobile devices,” says Roman. “In
support of this objective, we established RD teams
with more than 300 top developers, 10 technology
development and gaming labs, and strategic
partnerships with external engineering experts and
SMEs. This investment enabled us to develop a new
website, mobile apps and data analysis solutions.
We are also digitizing our store floor. For example,
we are deploying shelf tags that enable customers to
scan barcodes in the aisle using their smartphones;
self-serve kiosks, and digital screens and touch walls
from 10 to 40 inches for product promotion. We also
have two lab stores where we are experimenting
with more technology, and evaluating response.”
Canadian Tire is also investing in the development
of a mobile workforce. “We are equipping in-store
teams with ‘employee-facing mobile devices’ such as
smartphones and tablets. This enables associates to
source all required product and service information
within three seconds from any point in the store. As
opposed to walking to a terminal to verify product
price, location and availability, employees can
now gather this information directly from a hand-
held device. This includes online product demos,
videos and games. This not only increases service
quality and sales opportunities, it boosts employee
satisfaction.”
What’s perhaps even more impressive is that the
company has achieved this progress within
21 months. As Canadian Tire establishes itself
as a wireless retail leader, the corporation is
already seeing the impact of its strategy on its
customers, employees and bottom line. “The
productivity gains alone justify this investment,”
says Roman. One thing is clear: “extreme
retailing” delivers extreme value in the
automatically mobile store.
These advancements will create new
customer touchpoints, personalized shopping
experiences and paths to purchase—as well as
greater opportunities for retail profit.
15
17. Technology Prediction:
The Smartphone Will Morph into an Intelligent Server
“Retailers are finally viewing the smartphone as an intelligent server. Semantics?
No. The phone needs to be less of a ‘crackerjack’ container that serves as a
repository of millions of sundry digital applications, and more of a truly intelligent
device that performs as a server that can manage our world through smart
profiling and Application Programming Interfaces. As retailers, we must start
thinking about connecting our shopper’s phone to the Internet of Things (IoT) -
our things: our store, products and Point of Sale. We must consider our ‘store as
the APP’ with Wi-Fi, Beacons and MAC address opt-in. For years, retailers have
invested in bricks and mortar. It is time to return to the practice of expanding the
services and function of the store, and not window dressing the digital phone.
The consumer’s phone can activate the store, trigger location specific events,
and serve as the communication layer--but the store is where the retailer needs
to invest. This is what I call the physical app store.”
Gary Schwartz, Senior Vice President, DealNet Capital Corp; CEO, Impact
Mobile; Author of The Impulse Economy, and Fast Shopper, Slow Store
18. Registered Wireless Identities: Providing Greater Command
and Control of Mobile Information
In early 2014, Washington, DC-based firm Wireless Registry Inc.
launched the first global registry for wireless names.
Individuals and companies can register wireless names,
associate content to these names and provide meaning when
they are detected15
. This type of registry could enable retailers
to assign a name and profile to their wireless network,
seamlessly interact with all types of sensor-based devices within
their vicinity and create a central repository for its identity,
brand and content.16
It will also allow consumers to establish a wireless profile
linked to their smartphones and other mobile devices, and
register preferences that define what mobile information they
receive. For example, by registering favourite coffee shops,
clothing stores and restaurants in a wireless profile, users could
automatically receive the latest information, product offers
and deals as they enter these merchants’ wireless spaces.17
A
wireless registry puts greater information management control in
the hands of the consumer. As such, subscription-based
membership and opt-in loyalty programs will become critical to
retail marketing strategies.
Haptic Technology: Putting Retailer and Consumers in
Virtual Touch Wirelessly
Haptics is the science of applying touch sensation and control
to interaction with computer applications. By using special input
and output devices (such as joyticks, data gloves or other
devices), users can receive feedback from computer
applications in the form of tactile sensations in the hand or
other parts of the body.18
Well known as the innovation that
underpins smartphone touch screens and multi-sensory
gaming consoles, haptic technology enables a user to feel as
though they are physically interacting with virtual objects.
3/ What’s Next?
Transformative
Technology of
the Future
Over the next three to five years,
the retail sector will experience
even greater transformation
as M2M-enabled technologies,
applications and services
continue to evolve.
15 http://www.prnewswire.com/news-releases/the-wireless-registry-launches-worlds-first-global-registry-for-wireless-names-240222411.html
16 http://www.theimpulseeconomy.com/
17 http://www.theimpulseeconomy.com/
18 http://whatis.techtarget.com/definition/haptics
17
19. In the next few years, this technology will enable retailers to add new sensory dimensions to the
customer experience. For example, in-store and online customers could use their smartphones to
virtually feel the texture of clothing, the shaft of a golf club or hockey stick, the softness of a children’s toy or
the suppleness of a purse or baseball glove. In March 2014 at the World Mobile Congress Conference,
Fujitsu launched a new tablet that simulates the smoothness or roughness of an object.19
Despite the
advantages presented by haptic technology, many merchants are unaware of its potential application in
retail.
Wearing Mobile Technology Well
Wearable technology (such as smart glasses, watches, shoes and clothing) is generating a lot of
buzz among consumers. Featuring sensors, advanced electronics, computing power and wireless
technologies, connected clothes and accessories process and share data, and perform designated
tasks. For example, the Google Glass™ wearable computing device resembles a pair of sunglasses
with a tiny smart device embedded in the upper corner of the lens. It features a touchscreen, camera and
display that work together to act on voice commands, such as taking photos or acquiring traffic
information. The Pebble™ Smart Watch lets users receive texts and email, make calls, take photos, track
activities and upload apps. The shipment of wearables is expected to exceed 19 million units in 2014,
and skyrocket to 111.9 million units in 2018.20
This trend is prompting some brands to integrate wearables
into their omni-channel marketing strategy; for example, Kenneth Cole recently developed a new Google
Glass app for the launch of its new cologne.21
19 http://www.thisisnumero.com/2014/03/06/fujitsu-reveals-haptic-tablet-at-mobile-world-congress/
20 http://www.idc.com/getdoc.jsp?containerId=247318
21 http://www.businessinsider.com/kenneth-cole-promotes-fragrance-with-glass-2014-3
18
20. Mobile technology offers retailers another way to engage with
customers who are shopping in-store. How can Canadian retailers
capitalize on the opportunities presented by mobile technologies?
• Increaseknowledgeofcurrentandprospectivecustomers
by gathering new information about client preferences
and shopping habits, and putting this data to work in
marketing strategies;
• Assess current marketing strategies and use customer
datatoincreasetraffic,attractandretainloyalcustomers,
and drives sales; and
• Engage experts to explore, develop and implement
mobile solutions and strategies that address customer
and business needs, and deliver results.
Increase Knowledge of Current and Prospective Customers
When considering how to integrate mobile technologies into
a retail business model and marketing strategy, it is essential to
first determine:
• How customers engage your company today and how
they would like to engage tomorrow;
• What they value most in a shopping experience; and
• What influences their shopping decisions.
4/ How Can
Retailers Seize
This Mobile
Opportunity?
Adopting new technology
is an investment but the
benefits are numerous.
19
21. Assess Existing Marketing Strategies, Channels
and Business Models
When considering how mobile technologies could
help achieve business objectives, retailers must
assess the efficacy of current marketing strategies,
business models and customer engagement
mechanisms in light of the mobile-assisted shopper.
This helps retailers identify key opportunities,
stumbling blocks and pain points. Questions to
consider:
• What marketing strategies and tactics
drive the greatest results today?
• What experience do you create for
customers? Is this experience consistent
across channels?
• Could mobile technologies be employed to
enhance the in-store customer experience?
Collaborate with an Expert
When exploring mobile solutions, it is important for
retailers to collaborate with experts who can provide
trustedguidanceontechnologiesthatmeettheneeds
of the organization and its customers. In Canada,
Rogers Communications works with retailers to help
themcapitalizeonmobilesolutionsthataddresstheir
specificbusinessobjectivesanddrivebusinessresults.
As Canada’s leading diversified communications and
media company, Rogers is introducing innovations
to improve customer experience, as well as boost
retailer productivity and profitability. The company is
pleased to help retailers:
• Assess their requirements and clientele,
and develop a complimentary business
case analysis;
• Propose mobile solutions that target
key opportunities and challenges, and
generate high return; and
• Workcollaborativelywithmerchantsonthe
adoption, implementation and integration
of these technologies into their business,
and accelerate the delivery of results.
In addition to Rogers, Canadian retailers also have
access to Wavefront, Canada’s Centre of Excellence
in Wireless Commercialization and Research (CECR).
Wavefront aims to accelerate the growth and
success of wireless companies by connecting them
with critical resources, partners and opportunities,
to drive economic and social benefits for Canada.
To learn more about how Rogers and Wavefront
can help you develop a mobile strategy
that increases the competitiveness of your
retail business, please visit http://enterprise.rogers.
com/on/en/industry-expertise/retail or contact
Nathan Robinson, Business Development Manager,
Wavefront (1.416.571.3083 or nathan.robinson@
wavefrontac.com).
20
22. • Nikolas Badminton, National Digital Strategist and Advisor
• Derek Colfer, Head of Mobile Innovation, Visa Canada
• Chris Covell, Chief Information Officer, Boston Pizza;
Former Chief Technology Officer, Best Buy;
and Former Vice President, Technology Infrastructure, Indigo
• Ian S. Cruickshank, Sales and Marketing Executive,
Digital Strategist and Partner, Chasm
• Graeme Harfman, Director of Product Line Management,
Sierra Wireless
• Tim Hayden Tim Hayden, CEO of TTH Strategy;
Co-Author of The Mobile Commerce Revolution (Pearson, 2014)
• James Maynard, President and CEO, Wavefront
• Eugene Roman, Senior Vice-President,
Information Technology and Chief Technology Officer,
Canadian Tire Corporation, Limited
• Gary Schwartz, Senior Vice President, DealNet Capital Corp;
CEO, Impact Mobile; Author of The Impulse Economy, and
Fast Shopper, Slow Store
Wavefront would like to extend
sincere thanks to the following
leaders who contributed their
expertise and insight to the
development of this paper:
A special thanks to our sponsor:
Rogers Communications helps businesses of all
sizes across Canada leverage the opportunities that
come from enabling their people, assets, customers
and networks to connect anyplace, anytime. Our
expanding portfolio of solutions helps businesses
mobilize their workforce, monitor their fixed and
mobile assets, manage their networks and suppliers,
and build customer loyalty. We also offer a full suite
of professional and managed mobility services to
ensure every implementation is successful and every
solution expertly managed on an ongoing basis. All
our enterprise solutions and services are backed by
our award-winning Business Care.
www.rogers.com/enterprise
Acknowledgements
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