Retailers are increasingly shifting their point-of-sale to mobile devices in response to the growth in smartphone adoption and the need to create seamless shopping experiences across all channels. What are the challenges, and how the brick-and-mortar stores should ride this trend to provide consumers with an unforgettable in-store experience by benefiting from the essential mobile devices that every consumer carries? This POV will address these issues and provide guidance to retailers for building their in-store mobile experience.

1. THE
MOBILE PLAYBOOK
MOBILE AND MORTAR
UNLEASHING MOBILE TO BUILD AN
UNFORGATTABLE CONSUMER
EXPERIENCE IN STORE
MARCH 2013

2. About this POV
R etailers are increasingly shifting their point-of-sale to mobile devices in
response to the growth in smartphone adoption and the need to create seamless
shopping experiences across all channels.
What are the challenges, and how the brick-and-mortar stores should ride this trend
to provide consumers with an unforgettable in-store experience by benefiting from
the essential mobile devices that every consumer carries?
This POV will address these issues and provide guidance to retailers for building
their in-store mobile experience.
2

3. Table of Content
4 SHOPPING ON SMARTPHONES IS A REALITY
6 CONSUMER JOURNEY HAS BEEN DISRUPTED
8 WINNING STRATEGIES AND TACTICS FOR BRICK-AND-MORTAR STORES
14 BEST PRACTICES
3

4. 79% of users rely on Smartphones to help with
shopping
79% 70% 74%
Use phone for shopping related Use phone while shopping in- Of smartphone shoppers made
activities store a purchase as a result of using
smartphone
Source: The Mobile Movement Study, Google/Ipsos OTX MediaCT, 2012
4

5. It’s specially true when it comes to in-store
shopping
53%
45% 39%
of men use 38%
smartphones in-
store to check
of all consumers prices at other
use smartphone for of women use of walk-outs, when
stores
in-store product
research and
smartphones in-
store to check
shoppers leave
without making a
12%
browsing prices at other purchase, were
influenced by
stores
smartphone usage Checked other 8%
online retailers
Checked
Source: InsightExpress availability at other
stores
5

6. Consumer journey has been
disrupted

7. Mobile has made the consumer journey no
longer predictable
Now
Before
Search information Search
on line, read information on
Search information reviews, download mobile on the go
on line, read coupons
reviews, download
coupons
1 2 3
1 2 3
Ask friends’ Order on mobile Shopping in store,
opinions and pick up at
Ask friends’ Shopping in redeem coupon
before store
opinions before store, redeem shopping
shopping coupon
Compare prices
Ask friends Shop on mobile,
on mobile while in
opinions on use mobile
store and buy
mobile coupon in store
somewhere else
7

8. Wining strategies and
tactics
What should retailers do improve their in-store
experience by using mobile?

9. Before getting started, you need to think about…
1 2
Understand your search And establish them on your
traffic from mobile and mobile & tablet
tablet commerce enabled
sites and apps
• Mobile search will generate 27.8
billion more queries than desktop • Yes you need both site and app!
search by 2016 – BIA/Kelsey report 2012 And on both smartphone and
• More than half of Smartphone tablet!
searchers purchase – Google/ Ipsos • They also need to be commerce
2012 enabled.
• You should capture all traffic from
SEO, SEM, mobile display, PR and
social campaigns
9

10. Winning strategy & tactics
Engage and communicate with customers from the moment they enter
the store to the time they leave
Convince
Catch Them Keep Them
Them
Catch shopper’s attention Active research, making Exit the store
when they walk in decisions, check out
Use in-store facilities and To persuade in-store Build an on-going
assets to promote your shoppers, help them make relationship with your
mobile destinations, and immediate purchase customers via mobile,
catch shopper’s attention by decisions and facilitate encourage advocacy and
engaging with them in every purchase process when repeat purchase all through
possible way on mobile they are ready to buy via mobile
mobile platform
10

11. Catch them!
Catch shopper’s attentions when they walk in and
wander around
Priority Time To Innovation Investment
Market
Priority Actions:
Deploy Wi-Fi in your store
Promote your mobile 1 Deploy Wi-Fi in-store
destinations in-store
Mobile offers and deals I: 2 Promote your mobile
check-in rewards destination in-store
Mobile offers and deals II:
location based coupons 3 Offer check-in badges /
Provide in-store map to rewards
help user navigate
Very Low Low Medium High Very High
11

12. Convince them!
Assist them in make immediate shopping decisions
and facilitate purchase process via mobile
Priority Time To Innovation Investment
Market
Create mobile wish list
Provide 3rd party neutral
Priority Actions:
user reviews
Provide product and price 1 Create mobile wish list
comparison tool
Provide more product info 2 Provide 3rd party neutral
via QR/AR technologies user reviews
Redeem mobile coupons
3 Provide product and price
User tablet and iPod for in-
store sales force to engage comparison tools
with customer
Offer buying/ booking on
mobile for pick up in-store
Offer mobile check out
12 Very Low Low Medium High Very High

13. Keep them!
Build on-going relationship and encourage advocacy
via mobile
Priority Time To Innovation Investment
Market
Sign up for membership to
receive offers, points,
birthday / festival gifts, etc
Priority Actions:
Like us or tell a friend on
social media 1 Sign up for membership
Rethink email
2 Tell a friend on social media
Fill out store survey / send
thank you message
Send mobile exclusive
3 Rethink email
offers
Collect points for mobile
loyalty program
Offer to send a mobile gift
card
Promote store events on
mobile
Very Low Low Medium High Very High
13

14. BEST PRACTICE
14

15. Catch Them > Mobile Location based coupons
Point Inside offers JC Penny Micro-LBS based mobile
coupon distribution and customized message
Point Inside’s micro-location and
indoor mapping technologies
brings location-based services into
the store, letting retailers know which
section and aisle their customers
are in.
Combined with understanding of the
customers’ purchase intents from the
shopping list, purchase history and
Point Inside’s engagement
technology, retailers such as
JCPenny can now connect
customers with highly relevant
messages while they are inside the
stores.
15

16. Convince Them > Tablet for in-store sales force
Neiman Marcus’s sales associates recognize their
customers on tablet when they walk in
Neiman Marcus launched
an app which seamlessly
connects shopper and
sales associate. The
customer highlights their
favorite items and preferred
associate, and the associate
is alerted in-store when the
shopper enters. They can
instantly see the customers
favorite items along with a
Facebook photo for easier
recognizability.
16

17. Convince Them > Offer mobile Checkout
Nordstrom allows customers to checkout on mobile
Mobile checkout will cut down on wait
times for not only buying, but can also
be used to track past purchases and
inventory information.
Nordstrom leapfrogged the industry by
equipping its sales associate with iPad
and iPod touch in-stores, to deliver a
customized experience as well as check
out service.
17

18. Keep Them > Sign up for membership to receive
offers, points etc. via mobile alerts
Target, Clinique and Victoria Secret offer SMS,
coupon, store event alert
Signing up for e-statement via mobile
after shopping is a natural transition from
online to the smartphone empowered
consumers today.
Target allows users to sign up for text
message coupon alert via its mobile app.
Victoria Secret allows users to sign up for
SMS, email as well as store offers and
events from mobile.
18

19. Keep Them > Ask to fill out a store survey or send a
thank-you message
Wholefoods sends mobile store survey to better
understand customer feedback
Upon leaving the store, retailers can
send customers a notification within the
branded app that could include an
invitation to an exit survey, a loyalty
promotion or even a simple “thank you”
for visiting the store.
Wholefoods partnered with Digby to
send in-store smartphone shoppers
store survey, helping the company
better understand consumer feedback
on a store basis.
19

20. Lucy Lee
Strategy Director
llee@phonevalley.com