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MOBILE FUTURE
location & context influences frictionless purchases
twitter @johnbatistich
Why do more than 70% of smartphone
owners sleep within arms reach of their mobiles?
wall
Why would we rather lose our
wallet or purse than our mobile?
SO THINK ABOUT…“mobile is the most
important technology
in your lifetime”
kevin bloch cisco
mobile has come a long way over 40 years
mobile disrupts everything: communications,
gaming, entertainment, banking & retail
“there will be more change in how
consumers shop & pay in the next 3
years than we have seen in the last 20”
john donahue ceo ebay
1. ubiquitous mobile connectivity
2. democratisation of production tools
3. access to higher data speed/more storage
technology enabled connectivity
1 billion pcs & 4 billion mobiles
location-based services
mobile & social payments
intelligent vending
3d screens
rising transparency & amplification
increasing collaboration
personalisation
acceleration of everything
hunger for real shared experiences
source: richard watson
takeaways
mobile disrupting behaviour, payment & stores
mobile is the big influencer on purchase
location profiling matters for contextual content
frictionless payment & gifting emerging
learning from nike & burberry
design for mobile first…learn fast/cheap/first
mobile disrupts behaviour
the most powerful influencer on purchases
reach purchaseinfluence
understanding channels
acquire
click & collect
click & return
buy in-store home delivery
in store
online
in store only
web to store
store to web
online only
any owned,
bought or earned
communication
channel(s)
share
share
moments
that influence
reach
influence in-store
purchase in-store
eg: groceries/services
~50%
influence online
purchase in-store
eg: apparel/homewares
~44%
influence online
purchase online
eg: music/books/travel
~5%
influence in-store
purchase online
eg: consumer electronics/footwear
~1%
total retail: influence and purchase
customers have gone beyond multi-channel. they
shop their way in authentic experiences across
your brand across any device anytime
ian jindal internet retailing uk
acquiring
using &
sharing
how does a customer become aware
with your products or services? how
do they gain inspiration?
how does a customer gain knowledge
about our products and those of your
competitors?
where do they go to learn and compare?
how does a customer
transact with your
company? what are the
dynamics of the
purchase process?
how does a customer
take delivery of our
product or service?
what are logistics of
getting it?
how does a customer use our product in daily life?
what do they have to do to take advantage of its
benefits? what are the components of the in-use
experience?
how does a customer interact
with our company post
purchase? what are the
interactions that promote
loyalty and advocacy rather
than frustration and rejection?
buying
find
relationship
(if you want it!)
discovery
a mobile enabled shopper journey
new paths have multi-screen touchpoints
17.9%
68.4%
9.8%
3.9%
0.0%
9.3%
41.8%
38.3%
7.2%
3.4%
1 2 3 4 5
2002
2012
source: conlumino
channels
% of Shoppers
more channels used during
shopping for fashion
technology is slowing things down with more
browsing time driven by more choice
neil saunders conlumino
source: conlumino
52
23
5 3
89
16
4 2
Discovery Search Purchase Acquire
2002
2012
duration of purchase time spent on
process purchasing
0.5 days 83 minutes
3.4 days 111 minutes
Minutes
customer journey stage
more time in discovery with more
content whilst search has got faster
mobiles’ influence closest to
the offline point of purchase
60% 58%
source: deloitte
when are you most likely to use to use your
smartphone for store related shopping trip?
mobile influenced store sales
exceed m & e commerce
mobile-influenced store sales vs mcommerce &
ecommerce sales ($billion)
mobile influence factor to boom
60% 58%
source: deloitte
mobile is the most powerful shopping tool
mobile helps us get the right deal
Source: Monetate
61%
51%
47%
34%
25%
19%
14%
compare prices
promotions/coupons
read reviews
scan barcode
take product photos
call friends/family
contact a business
what do we do on our smartphones
mobile applications are driving
the bulk of engagement
source: monetate
81.5%
18.5%
smartphone users
who spend time
using mobile apps
smartphone users
who spend time using
web browsers
despite an explosion in mobile traffic many
retailers’ website are not mobile optimised
source: monetate
48% retailers who have a mobile
optimised website
mobile optimised user experience
picture source: psfk
location matters
influencing nearby customers
“our coordinates, has the potential to
change all the outputs…where we shop,
who we talk to, what we read, what we
search for, where we go, they all change
once we merge location and the web”
matthew honan wired magazine
70% of mobile searches for shopping
resulted in a purchase within the hour
mobile used to discover what’s nearby
source: monetate
96%
researched a
product or service
on their phones
94%
searched for
local information
90%
acted within
24 hours
70%
called businesses
after searching
66%
visited stores
in person
mobile enabled local shopping will explode when
store inventory data become available
mobile enabled local shopping will explode when
store inventory data becomes widely available
source: contagious
location aware apps providing new utility
Neiman Marcus Alaskan Airlines
but shoppers undecided about sharing
their location to get offers/content
source: monetate
74%
use their devices
to find location
information such
as directions
38%
report interest in
receiving
promotional
messages on their
location
18%
check-in to
locations using
apps like
foursquare
which area did people spend time at? peak times in the store? new or repeat customers?
most frequently used paths in the venue % of shoppers who walk by without entering
location profiling has a big future
source: cisco
connected consumers connected guests connected travelers
 better in-store
experiences
 context rich
promotions
 better informed
purchase decisions
 wayfinding - indoor
maps with featured
attractions
 personalized 3rd party
advertising
 special promotions
 better planning for high
traffic areas
 transportation updates
and indoor directions
 dwell times-based
promotions
retail hospitality transportation
wide of usages for connected customers
source: cisco
mobile disrupting payment
frictionless mobile payment & gifting
http://www.mobilemag.com/2012/08/06/google-wallet-update-pushes-your-cards-to-the-cloud/
http://www.geeky-gadgets.com/square-iphone-credit-card-
payment-system-arrives-in-apple-stores-21-04-2011/
online payment experience
setting new offline expectations
http://www.google.com.au/imgres?q=apple+passbook&num=10&hl=en&tbo=d&biw=1920&bih=1019&tbm=isch&tbnid=HSbYouI6Fz4xgM:&imgrefurl=http://www.paymentobserver.com/tag/passbook&docid=H0r19kQMvg0RvM&imgurl=http://www.paymentobserver.com/wp-
content/uploads/2012/06/Apple_Passbook-paymentobserver.jpg&w=2211&h=1545&ei=PPbEUN-
OJcuZiQfWjoHACA&zoom=1&iact=hc&vpx=445&vpy=129&dur=877&hovh=188&hovw=269&tx=163&ty=133&sig=117778829446237125984&page=1&tbnh=141&tbnw=202&start=0&ndsp=58&ved=1t:429,r:3,s:0,i:93
passbook complies rewards & services
frictionless mobile payment systems
mobile payment ecosystem
is still yet to be defined
mobile redefines stores
store design, merchandising & service are being redefined by mobile
picture source: frog design
“WE ARE LOSING SHARE OF RETAIL”
Context is everything
http://www.theage.com.au/technology/technology-news/virtual-shop-perfect-for-the-young-and-upwardly-mobile-20120215-1t6qa.html#ixzz1mZuBOUuz
''retailers need to
understand that online
shopping isn't
something we just do at
our desktops any more.
we now do it out in the
real world, out on the
streets and often while
we're in-store.‘’ sportsgirl
mobile brings retail to you
Source: Jon Bird
helps you shop your way
mobile is completely destroying our
notion of retail. your customer is now
more knowledgeable than your staff
ian jindal internet retailing uk
Can I help you sir?
No…I have a mobile!
mobile makes sales
staff more informed
mobile enables social connectivity
burberry
the store designed for mobile to enrich the experience
Our new flagship store is trying to recreate the
experience on burberry.com
Burberry
nike
creating a mobile enabled product ecosystem
The purchase of a Nike product needs to be the
beginning of the relationship… So when they buy,
they go home, sign up and they’ve created a link
much stronger than anything we could ever say in
communication. Because it’s the emotional
connection to myself and my friends and we have
now created an entire ecosystem of services that
complement the product
Stefan Olander Vice President Digital Sport Nike
conclusions
mobile disrupting behaviour, payment & stores
mobile is the big influencer on purchase
location profiling matters for contextual content
frictionless payment & gifting emerging
learning from nike & burberry
design for mobile first…learn fast/cheap/first
Photo: Reuters
sources
cisco
conlumino
contagious
deloitte
econsultancy
forester
google
internet retailer
monetate
psfk
square
twitter @johnbatistich

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