how mobile is changing shopper behaviors

Phuc.Truong@mobext.com

How mobile is changing

shopping behavior: Retailer Strategies in a Mobile

World

by Arthur Policarpio

Head of Mobext

Asia-Pacific

The world’s largest mobile marketing agency network

23 offices worldwide and growing

Full-Service Mobile Marketing Agency

Welcome to the Smartphone Age

4

5

Can you guess who this man is?

CLUE #1

He’s richer than..

7

CLUE #2

The company he built in 2009 is

worth more than..

6

The top corporations in the Philippines

6

5

6

The world’s future billionaires

will be in mobile

This is the world we

live in now...

© Mobext 2012 mobext.com © Mobext 2012 mobext.com

5 Key Strategies

1.Multi-Channel Shopping

2.Dominate Search

3.Invest in Mobile Social

4.Enhance the In-Store Experience with Mobile

5.Mobilize Your Loyalty Programs

16

# 1 The Multi-Channel Shopping

What is a store?

The store is now a multi-channel experience

• Make 4 more trips each

month than non-mobile user

• Spend 40% more than the

average shopper

Walmart’s mobile app users...

In-store mode

• See what’s new & on sale

• Create shopping lists

• Scan and Go

Out-of-Store mode

Check items in-store Check inventory + delivery

12% of

app-aided

sales

happen during the

app’s in-store

mode

Kate Spade Saturday:

Reinventing “Window Shopping”

Shoppable catalogues with mobile

© Mobext 2012 mobext.com © Mobext 2012 mobext.com

Domino’s Pizza UK App = Store in

Your Pocket

27

© Mobext 2012 mobext.com © Mobext 2012 mobext.com

Results

28

500,000 downloads

in 6 months

£3.4 million incremental revenue

Target: 50,000 Target: £100,000

Best mCommerce

Campaign

• GOLD, Campaigns

Effectivity

•SILVER, Industry Awards

•SMART Special Award

McDonald’s Ang Pao Coupons

Reinventing Couponing

THE CHALLENGE:

•They are lost, torn,

and left lying around

• Limited reach

Coupon Clutter

SOLUTION

ANG PAO MOBILE

COUPONS

• On-demand coupons

• Available anytime,

anywhere

Register Choose Redeem

Social Amplification

McDelivery Mobile Site = annual sales of an above

average McDonald’s Store

“Our mobile efforts are

making a direct impact on

our business.” Margot Torres, Senior Vice President for

Marketing, McDonald’s Philippines

#2 Dominate Search

Mobile search will surpass desktop

Searches done on mobile

lead to immediate

conversion

Source: Google & Nielsen

A Snippet of Keywords

76,500 monthly searches for keywords associated with supermarkets and items they carry. 25% of the searches come from mobile

No One Has A Significant Share of Voice

No one has significant share of voice

Sample Search Results for Appropriate Queries

Missed opportunity

Create smarter search ads

Google’s Enhanced Campaigns

Enhance the search

experience

Click-to-call Location extension Deep linking

# 3 Social = Mobile

84

68 62 61

Word of Mouth Websites TV ads Print ads

What do you trust?

Nielsen “Global Survey of Trust in

Advertising, 2013

32

SOCIAL = MOBILE

Kellogg’s Instashop

53

Allium Restaurant : Pay with a Post

54

COMODO:

The Instagram Menu

Nordstrom on Pinterest

Most followed brand,

with 4.4 million followers

in-store integration of

social “voting”

#SaksIn6 : Recreating in-

store tutorials in 6 seconds

Saks Fifth Avenue on Vine

The Home Depot on Vine

9

The new frontier in social: Mobile messaging

15

South China

Airlines

Online Booking

Uniqlo catalog

Your New Online Storefront

42

Fruits

43 Health Insurance

44

WeChat Vending Machines

16

New York Apartment - $13M

10

Stickers

1 billion stickers/day

$66M revenue

11

Mobile Coupons

13

Flash Sales

“Social Commerce” via Facebook

Buy a Product by Commenting “Sold”

Crowdsourcing product search:

“The Hunt”

500,000++ monthly visits

# 4 Enhance the In-Store

Experience with Mobile

Source: Cisco, 2013

84% of smartphone users use their mobiles while in-store

Source: Google Shopper

Marketing Council 2013

37 © Mobext 2012 mobext.com

From “push girls” to consultative sales

assistants

37 © Mobext 2012 mobext.com

38 © Mobext 2012 mobext.com

39 © Mobext 2012 mobext.com

Kate Spade iPads in Store

SHOPKICK:

Earn points just by walking in-store

#1 Shopping app

$800 M Sales

delivered to

partners

70 million Product scans

7 million gift cards

redeemed

*More frequent and prolonged usage than

physical retailers’ own apps, including

Starbucks, Walmart, Walgreens, and

Safeway

How big is Shopkick?

Neiman Marcus:

Personal Mobile Concierge

24

This tiny device can disrupt your industry

# 5 Mobilizing Loyalty

“The ultimate in marketing is

marketing to the individual and customizing

products to the individual.”

34

Source: Cisco, 2013

36

Consumer Database System

STEP 1: Build Database

70

Opt-In Call-to-Action in All Media

37

Time Spent

Geography

Purchase

History

Social

Sharing

STEP 2: Segment Customers

38

STEP 3: One-to-One Communications

39

40

Demographics

Purchase History

Social Media

Browsing History

Customer Loyalty Data

Co-creating products

Choose design Customize Buy

Personalize your Uniqlo

Will mobile eventually obsolete

traditional loyalty cards?

Deals Rewards Freebies

Are you ready for the future of retail?

© Mobext 2012 mobext.com © Mobext 2012 mobext.com

Summary

1.Multi-Channel Shopping

2.Dominate Search

3.Invest in Mobile Social

4.Enhance the In-Store Experience with Mobile

5.Mobilize Your Loyalty Programs

94

94

Managing Director

Mobext Asia-Pacific

arthur.policarpio@mobext.com

+639175694375 @art_policarpio (Twitter)