This document discusses how retailers can use mobile technology to enhance the in-store shopping experience. It outlines challenges like showrooming that retailers face in multi-channel commerce. It then describes various mobile levers retailers can use, such as Wi-Fi, mobile wallets, apps with barcode scanning and social integration. Case studies of Macy's and Target show how they are implementing different mobile levers. The document recommends retailers develop a mobile strategy to provide an engaging customer experience across channels and defend against competitors.

1. © 2012 Karthik Ethirajan, all rights reserved
Mobile Levers to Enhancing “in-store”
Experience for Retail Customers
Karthik Ethirajan
July 2012

2. © 2012 Karthik Ethirajan, all rights reserved
2
Agenda
3. Challenges Retailers Face in Multi-Channel Commerce
4. Mobile Influence on “in-store” Retail Sales
5. Leverage mCommerce Investments
6. Mobile Enabled “in-store” Levers for Retailers (1/2)
7. Mobile Enabled “in-store” Levers for Retailers (2/2)
8. Tapping into mCommerce Ecosystem
9. Case Study 1: Macy’s
10.Case Study 2: Target
11.Next Steps Recommendation

3. © 2012 Karthik Ethirajan, all rights reserved3
Challenges Retailers Face in Multi-Channel Commerce
In today’s multi-channel shopping environment, mobile can be a threat as well as an opportunity for
retail store sales
Retail
Store
Online
 How to get the customers to visit the store ?
 How to get them to buy in the store ?
 How to turn the tide on “showrooming” effect ?
Everyday Challenge Retailers Face
 There are many Smartphone enabled “in-store”
levers available to retailers to improve shopping
experience
 These are some of the same levers needed to boost
mobile commerce
How can mCommerce Enhance
“in-store” Experience ?
2012 Sales ($ in Billion)
Mobile
Multi-Channel Commerce
Source: Mobile Shopping from In-Store, eMareter, Jun 2010; US Online Retail Forecast, Forrester, Mar 2010

4. © 2012 Karthik Ethirajan, all rights reserved4
Mobile Influence on “in-store” Retail Sales
Levers can
enhance
“in-store”
experience
Retail
Store
Online
Source: The Dawn of Mobile Influence, Deloitte, Jun 2010; Mobile Consumer Shopping Preferences, 2010: U.S., Gartner
2012 Sales ($ in Billion)
116
138
158
176
192
0
50
100
150
200
250
2012 2013 2014 2015 2016
Millions
U.S. Smartphone Users
Mobile influence on store sales will increase
from 5% today to 19% by 2016
Smartphone shoppers are 14% more likely to make a
purchase in the store than non-smartphone users
Mobile
 Location / GPS
 App
 Camera
 Wi-Fi
 Sensors
Mobile
Capabilities
 Product Scanner
 Mobile Wallet
 POS Terminal
 Social
 m-Coupons
“in-store”
Levers
Mobile can help engage, immerse and personalize customer “in-store” experience through a myriad
of mCommerce features
Two-third of all Smartphone owners use their mobile while
shopping in a store

5. © 2012 Karthik Ethirajan, all rights reserved5
Leverage mCommerce Investments
Levers can
enhance
“in-store”
experience
Retail
Store
Online
2012 Sales ($ in Billion) Realize synergies between mCommerce
investments to boost mobile channel sales and
mobile-influenced store sales
Many of the “in-store” mobile levers are the same capabilities needed for enabling mCommerce sales
channel
Mobile 10.7%
6.5%
6.1%
2.8%
1.4%
1.4%
79.4%
Use mobile advertising to promote…
Have an m-commerce site
Have an iPhone app
Distribute mobile coupons
Use mobile search ads
Have search apps for other mobile…
Not using m-commerce
M-Commerce Features Offered by US
Multichannel Retailers
Opportunity
Gap
Majority of the retailers do no have ANY mobile
capabilities, pushing shoppers towards using
competitor or price comparison apps
Source: Mobile Shopping from In-Store, eMareter, Jun 2010; US Online Retail Forecast, Forrester, Mar 2010

6. © 2012 Karthik Ethirajan, all rights reserved6
Mobile Enabled “in-store” Levers for Retailers (1/2)
Mobile Levers Consumer Function Market Examples
Wi-Fi Hotspot
• Free in-store broadband connectivity
• Consumers can browse product
videos and user reviews with ease
and convenience
37% of retailers offer Wi-Fi today
with additional 37% planning to
offer within 24 months*
Mobile Wallet
• Store Loyalty card
• Redeem e-Giftcards
• Checkout merchandise
• Keep purchase history
Wal-Mart has teamed up
with credit card
companies & carriers to
form a mWallet solution
Social Integration
• Post reviews on Facebook wall from in-
app
• Award tribute badges to identify and
reward brand advocates
• Other social plug-ins such as Like
button
Beauty retailer has a
mobile optimized site with
over 1 million reviews,
retrievable using SKU
number
Integrated Supply
Chain
• Check product availability
• Buy items unavailable in stores on a
mobile kiosk
• Store pickup
Kmart allows ordering online
and picking up at store the
same day
Source: 2012 State of In-Store Mobility Survey Results

7. © 2012 Karthik Ethirajan, all rights reserved7
Mobile Enabled “in-store” Levers for Retailers (2/2)
Mobile Levers Consumer Function Market Examples
Walmart’s incubator
focused on data mining
and creating a social
profile
Analytics
• Get product recommendation
• Maintain wish list / shopping list
Proximity and
Presence
Detection
• Help locate products
• Push/notify coupons to encourage
impulse buying
• Create a geo-fence
Targeted Offer
Gap offered 25% off coupon
after two store check-in’s
• Get relevant m-Coupons through push
or pull mechanisms
• Add rewards points for checking in
There is a 79% potential
reach of consumers who are
interested in receiving a
location-based coupon or
offer according to Vibes
Media
• Scan barcode to provide product
information
• Provides VAS (e.g., virtual dress fitting
app, m-Coupon app)
Target’s mCommerce app,
among the nation’s first, can
handle barcode scanning,
customer reviews, shopping/gift
list, daily deals, etc.
Multi-function App
• Offer daily deals
• Private sale / preview
Targeted Campaign
Groupon sold 445,000
coupons in one day for
half off a $50 purchase
at Gap

8. © 2012 Karthik Ethirajan, all rights reserved8
Tapping into mCommerce Ecosystem
• Placecast offers mWallet
capabilities and ShopAlerts
when within a geo-fence
• RedLaser offers barcode
scanning APIs
• Social plug-ins such as Like
buttons are freely available
• Escalate offers PocketKiosk
app with many functions
Technology Enablers Service Providers Strategic Alliances
Key Benefit: Provide a viable
content distribution channel
Key Benefit: Marketing
benefits & fill strategic gaps
Key Benefit: Provide turn-key
technology solutions
• App discovery can be greatly
facilitated if national carriers
distribute apps by preloading
them on to devices
• Publishing apps on major
storefronts such as Apple
and Google Play is another
way to distribute apps
• Forging strategic partnership
with major brands effecting
mCommerce such as credit
card companies, Google or
Microsoft
• Retailers can be perceived
as early adopters of this
evolving technology when
they play an active role in
industry consortiums
Mobile Commerce
Project

9. © 2012 Karthik Ethirajan, all rights reserved9
Case Study 1: Macy’s
Engage
Immerse
Personalize
Mobile
Levers
Implementation
Status
Wi-Fi Hotspot
Mobile Wallet
Social Integration
Integrated Supply Chain
Targeted Offer
Analytics
Proximity and Presence
Targeted Campaign
Multi-function App








Targeted campaigns
with m-Coupons
Barcode scanning
Create and manage
gift registry

10. © 2012 Karthik Ethirajan, all rights reserved10
Case Study 2: Target
Engage
Immerse
Personalize
Mobile
Levers
Implementation
Status
Wi-Fi Hotspot
Mobile Wallet
Social Integration
Integrated Supply Chain
Targeted Offer
Analytics
Proximity and Presence
Targeted Campaign
Multi-function App








Log into Facebook
from within Target
app
Choose pallets for e-
Giftcards
Loyalty points from
ShopKick partner app


11. © 2012 Karthik Ethirajan, all rights reserved11
Action Points for Retailers
Next Steps Recommendation
• Put together a mobile strategy for enhancing “in-store” shopping experience
• Pick the mobile levers and customize a suite of mCommerce features as part
of the go-to-market strategy
• Tap into the eCommerce ecosystem and select partners to speed time to
market
Desired Results
• Delight store patrons by providing them with an engaging, immersive and
personalized shopping experience
• Fend off competitors and 3rd party shopping applications
• Drive revenue growth by enabling multi-channel commerce