mobile is the new retail

Webinar: Mobile in Retail > The State of Mobile Commerce

> Shaping the Mobile Retail Experience

© 2016 Swrve Inc.

Today’s Speakers

Sucharita MulpuruVP & Principal AnalystForrester

Martin DoettlingChief Marketing OfficerSwrve

@mdoettling@smulpuru

email

desktop

location

car

offersmailers

wallet

wearable

pos

tv

In a mobile first world, the future of marketing is

about orchestrating a great mobile experience.

The State of Mobile CommerceSucharita Mulpuru, VP & Principal Analyst

March 9, 2016


Smartphones now influence a significant percent of overall sales

$35 $299

977

244

Source: Forrester Research Forecasts; approximately an additional $1.5 trillion is not web-influenced retail at all

$1.6T

Total web-influenced retail sales ($B) in 2015(F), excludes auto and travelWeb sales Web-influenced store sales


As a result, retailers are focusing more on mobile than anything else now

2013 2014 2015Mobile #2 #1 #1

Omnichannel #5 #4 #2

Marketing #7 #3 #3

Site merchandising #1 #2 #4

International expansion #4 #7 #5

Site replatform #9 #5 #6

Rank of priorities for online merchants

Source: State of Retailing Online 2013-2015 (Forrester/Shop.org)


Shoppers shop in many ways on their phonesIn the PAST 3 MONTHS, have you used your mobile phone for any

of the following while you were NOT in a physical store?

Source: North American Consumer Technographics Retail Survey, 2015 (US)

None of these

To check availability of a product in a physical store

To take picture of a product to share with friends or ask for their opinion

To search for a coupon

To read customer reviews of a product

To purchase a product

To look up product information

To compare prices

To locate a nearby store or to check store hours

37%

20%

20%

22%

24%

24%

29%

30%

30%


In-store shopping is very research-basedIn the PAST 3 MONTHS, have you used your mobile phone for any of

the following while shopping in a physical store?


To check out coupons sent to me by a retailer/manufacture

To read customer reviews of a product

To access my shopping list

To locate a nearby store or to check store hours

To access the Internet via guest Wi-Fi

To search for a coupon

To look up product information

To redeem a coupon

To compare prices

11%

13%

14%

15%

15%

16%

17%

20%

21%


That said, more consumers are buying on phonesPhone shopping breakout of smartphone

owners

2011 2015

39%60%

27%

17%34% 23%

Buyers

Browsers

Non-buyers

% of shoppers owning smartphones 54% 86%

• Balanced between genders

• Heaviest buying among Gen Y and Gen X (under 44)

• $150k+ incomes slightly more than average

Source: Bizrate Insights/Forrester Mobile Commerce Studies


Buying on phones is a challenge for manyWhat is your biggest frustration, if any, when shopping online from

your smartphone/small screen mobile device?

I have not been frustrated

Graphics and information are not sized correctly

Pages load slowly

It is difficult to click on exactly what I want

It is difficult to enter information

The shopping experience is limited, unlike on my computer

20%

10%

14%

16%

17%

19%

Source: Bizrate Insights/Forrester Mobile Commerce Studies (2015)


Devices are more fragmented than ever

Base: 9,081 online shoppersSource: Bizrate Insights/Connexity Flash Study, Mobile Apps, September 2015

Apple 52%

Android 34%

Other3%

No data service11%

iPhone 6 models

48%iPhone 5 models

40%

iPhone 4 or earlier

12%

Other Android smartphone

41%

Samsung Note

14%

Samsung S6 models

13%

Samsung S5 or earlier

32%

Percent of consumers owning various devices


Shoppers use the mobile-optimized web for most mobile retail sites

When you have interacted with retailers on your smartphone/small screen mobile device, then which experience do you prefer?

I don't know

Using an app

The mobile optimized version of the standard site (i.e. the site has the same content as the standard website, but is designed to look better

on the phone)

6%

12%

14%

17%

19%

32%

Base: 5,439 recent mobile shoppersSource: Bizrate Insights/Forrester Mobile Commerce Studies


Responsive design is popular with many retailersWhich of the following best describe your company’s

smartphone and tablet device presence?

Other smartphone app

An Android smartphone app

An iPhone app

Some or all pages use a responsive design approach

A special mobile site optimized for smartphones

2%

11%

14%

40%

43%

App

focu

sB

row

ser

focu

s

Source: The State of Retailing Online 2015 (Forrester-Shop.org)


Mobile spend is still modest

*


Shoppers gather a lot of content on other 3rd party sites and resources

<10%

Your mobile site(s)

Search engines, maps, 3rd party

apps, other retailer sites

Your mobile app(s)

~20%

~70%+

Your API strategy can support this

traffic

Source: Forrester Research estimates


Mobile marketing programs are therefore an area of focus

Beacon technology

Check-ins

Mobile messaging (SMS, MMS, push)

Other location based marketing (e.g. NFC)

QR codes or other barcode scanning

Smartphone display ad (banner ads)

Tablet display ad (banner ads)

Paid search campaigns to drive traffic to stores

Mobile email optimization

Paid search campaigns to drive mobile shopping

3%

4%

13%

15%

22%

30%

30%

37%

46%

52%

5%

3%

8%

5%

2%

12%

14%

6%

16%

11%

11%

5%

10%

7%

3%

8%

7%

5%

6%

10%

46%

54%

47%

37%

46%

24%

24%

21%

13%

12%

33%

33%

22%

36%

26%

25%

26%

31%

19%

16%

Currently Use Implement 2nd Half 2015 Implement 2016 or laterNo Implementation Plans NA/Don't know

Do you currently or do you plan to use any of the following mobile marketing tools (i.e. for smartphones or tablet shoppers)?

Source: State of Retailing Online 2015 (Forrester/Shop.org)


85% of time on a mobile phone is spent on apps

84% of customers spend time on one of five apps


What apps people use varies by consumer


A few companies dominate apps


“Borrowing” mobile moments is the best course of action for many


Retailers need to keep in mind how shoppers need information and in what ways

When shopping in a store which source of help would you prefer to use when doing the following?


Checkout/make a payment

Product availability in store

Product availability in other locations

Navigate to a product in the store

Look up price

Product recommendations

Look up product information

Product reviews

23%

19%

21%

27%

20%

34%

24%

33%

45%

38%

36%

33%

28%

24%

22%

12%

15%

23%

23%

19%

26%

16%

24%

17%

17%

20%

20%

21%

25%

27%

31%

38%

No preference Store associate Store device My own device


Store associate support is a good use case for appsWhat would you expect [store associates] to be able to do for you with the mobile

device?


Know that I've entered the store and greet me personally

I do not have any expectations of sales associates equipped with mobile devices

Look up my past purchases and make product recommendations

Look up trend recommendations and product reviews

Perform a checkout for me

Reserve products for me to pick-up at a nearby store

Provide basic information such as return policy or warranty information

Look up inventory at nearby store

Check additional store inventory (when the shelf is empty)

Look up product information

13%17%18%

24%37%

45%47%

55%59%60%


Younger customers also skew more favorably to apps

Source: North American Consumer Technographics Retail Online Benchmark Recontact Survey, 2015

I use apps ex-clusively

I use apps mostly I use nearly an even mix of apps

and browser

I use browser mostly

I use browser exclusively

I have never made any purchases on my mobile phone

9%

20%17% 16%

6%

32%

5%

16% 17%13%

4%

46%

1% 4% 5% 7%2%

80%

18-24 25-34 35-44 45-54 55-64 65 and older

Thinking about how you make purchases on your mobile phone in general, which of the following best describes your use of app versus browser?

Apps dominate for shopping


Considerations› Significant, loyal user bases are conducive to proprietary apps

› Store associates can be one of those user bases; monitoring activities and providing customer information can be valuable use cases for stores

› Unique functionality needed for specific events or activities are well-suited for apps

› Accuracy of data, real-time context and constantly refreshed information are essential for making apps useful

› Speed of retrieving information can be a key value for retail apps

› Richer engagement can happen in-app; better data comes from app usage

› Businesses targeting younger shoppers are likely to benefit more with apps

forrester.com

Thank you

Sucharita [email protected]@smulpuru

mailto:[email protected]

In a first-screen world, your most valuable customers are really never offline.

Now imagine what’s possible. Add period after possible.

“Our customers are always online. In fact, they are

on their mobiles even in the store. For all practical

purposes, in a mobile world, there really is no more

offline.”

Joe Megibow, Chief Digital Officer

email

desktop

location

car

offersmailers

wallet

wearable

pos

tv

It’s a mobile first world, brands must focus on shaping

the mobile customer experience.

Mobile success is to reimagine the mobile experience from the consumer’s perspective.

Swrve isBuilt forMarketers

To shape the mobile experience and to deliver mobile moments

by nurturing, converting and growing each customer relationship

through personalized optimized communications.

Real-time Segmentation & Targeting

Marketing Intelligence Dashboard

Conversation Management

Automation

Dynamic Optimization (A/B & Predictive Marketing)

Monetization LTV

UI/UXNative Content

In-app Messaging

In-appInbox

Push Notifications

THIRD PARTY SYSTEMS

USE

R P

ROFI

LE

Ampl

ify

ChurnEngagement

The Swrve Platform

Instant Multichannel Integration

Swrve Powers the Mobile Experienceof Global Brands.

Shape your customers’ mobile experience and nurture, convert and

grow every mobile relationship.

Retail

59%41%60% of purchases decisions

combine web and mobile use.

http://www.criteo.com/resources/mobile-commerce-report/

MOBILE IS ESSENTIAL IN ALL STAGES OF THE CUSTOMER JOURNEY

“Smartphones played a major role as more people shopped online than in physical stores on Black Friday and over the weekend."

Mobile ruled the 2015 Holiday Retail Season

14% - year-over-year surge of online shopping 27% - mobile percentage of total online sales 57% - mobile percentage of total online traffic 103 million - used their phones to shop while

102 million visited stores

Sources: IBM, Adobe, NRF, MMA (Nov. 2015)

40

DISCOVERYBROWSING

PURCHASERETENTION

LOYALTY

Mobile Web and Mobile Appscomplement each other in the customer journey.

Mobile Web

Mobile App

0

4

8

12

16

20

24

Products viewed per user

Mobile Web

Mobile App

0

4

8

12

16

20

24

Add to Basket (%)

Mobile Web Mobile App0

10

20

30

40

50

60

Purchase (%)

http://www.criteo.com/resources/mobile-commerce-report/

Mobile Apps convert better than Mobile Web

42

Native Experience +Personalization+Context and Location +Control of Customer Journey=Higher Conversion

APPS CONVERT 20% HIGHER THAN DESKTOP

Swrve helps create, deliver and test onboarding messages to activate and engage first-time users.

ONBOARDINGMost of new users abandon

your app in days.

Through Swrve, the marketing team can create, deliver and test a range of first-time user experiences to increase the activation of new users.

It is the quickest way to grow your app business.

Onboard and Activate each new user

Welcome Introductory Tours

Create welcome tour of the app.

Change on the fly without having to update on the App Store.

Video messaging is especially effective.


Tip-OverlaysTip overlay tutorials delivered to users as they first explore the app.

They point out key features right in the context of their use of the app.

Or deliver in the native language of the user.


WelcomeTour

Ask for PermissionMost retail apps need permissions such as push and location to be effective.

Swrve helps you explain to users the value of permissions and lets them make the decision (before calling on the OS).


WelcomeTour

TipTutorials

Day +1 MessagingIn the first days after install, Swrve will reach out to new users yet to be activated.

WelcomeTour

TipTutorials

PermissionRequests


In-App Message

If a user hasn’t taken a core action - e.g. account creation - have Swrve prompt them with in-app messages.Welcome

TourTip

TutorialsPermissionRequests


PushMessaging

Onboarding Variant 1

Onboarding Variant 2

Iterate, A/B Test and Track different onboarding strategies

Funnel Reports track conversion

Campaign Reports track outcomes

Personalization is at the heart of successful relationships.

KNOWeach and every customer

at mobile scale.

52

Know your customers because

personalization matters

78%buy more often

76%buy more products

http://www.digitaslbi.com/Global/ConnectedCommerce2015-Deck-FINAL.pdf

53

Every second Swrve tracks

92,592 user behaviours and decisions,segments and actions in real time.

Just liked Avatars

on website

Opened app just

once

Lifetime Value$458

Lapsing. Not seen >1 month

Abandoned Cart: 2 items

Near Piccadilly store now

Swrve lets you learn everything you need to know about each customer, and make it actionable to marketing.

Data can come from any source, and is up to the second live.

Ingest customer data from any source.

Simple, personal, touch-interactive messaging.

ENGAGEThe best engagement campaigns are ones that add value to the customer.

Two weeks ago Kate liked Aviator Distressed sunglasses on the website.

Optimal Swrve applies the optimal time to reach each customer based on past engagement.

Personal Personally address each customer by first name.

ContextualKnows what each customer likes.

Swrve makes it simple to reach out to each customer.

Swrve makes it simple to reach out to each.

customer

A/B test which message is most effective.

Swrve makes it simple to reach out to each.

customer

Or send in the customer’s native language.

Or you could always leave a message in-app.

Swrve tracks how well each campaign converts.

This one automated campaign will have more impact on your revenues than any other.

RE-ENGAGE68% of people abandon shopping

carts before purchase.

Automated abandoned cart notifications are very effective in re-engaging customers.

Day +1

Day +7

Day +3

Swrve automatically sends to customers who have added products to their cart but failed to check out.

Personalizing abandoned cart messages really transforms conversion.

- Optimal time push- Personalize with first name- Insert the abandoned product name

Set them up once and Swrve will message each person by push or email.

Combine with in-app messages to users with abandoned carts.

Deeplink straight to checkout page.

WinningVariant

A/B test call to action to improve conversion.

Variant 2 - 10% off promotionVariant 1 - Triggered prompt

Use it intelligently and you’ll be rewarded.

LOCATIONOne of the most powerful tools

available to retail marketers.

Creative use of location marketing.Personalized messaging to drive customers to your store.

69

As soon as the consumer enters the store, they receive

the voucher in-app.

70

Combine with CRM and personalization engine of the retailer, with location triggers to deliver contextual campaigns.

71

Alternatively target customers who dwell at nearby establishments - e.g restaurants.

Three examples of Swrve surveying the right customers in the mobile-moment.

CUSTOMER SAT/NPSMeasure and respond to customer

satisfaction at the moment it matters.

Trigger:On leaving the store

Track Customer Satisfaction

Survey just the right users, at the right time.

Swrve compiles all the results.


Trigger:> 30mins use or 1st purchase



Swrve compiles all the results


Trigger:> 30mins use or 1st purchase

Trigger:> 1 month registered user



Swrve compiles all the results

A/B Test native UX, purchase flows, pricing, buttons and call-to-action.

OPTIMIZEUnderstand which mobile interactions

perform best.

A/B Test different native elements of your app.

Swrve will tell you which UX drives more sessions, time in-app, purchases.

Hamburger menu?

Tabbed menu?

• Change the color of a button.

• Edit marketing copy.• Deliver language-

specific call-to-actions.

A/B TestSee what converts best

Know and personally interact with

every customer

in one simple platform.

Meet Swrve Mobile Strategists at these industry Events

Learn More…

Mobile World Congress

Barcelona | Feb 22-25

eTail West

Palm

Springs | Feb 22-25

Mobile Moments

London | March 9

GDC 2016

San Francisco | March 16-18

Adobe Summit

Las Vegas | March 20-24

Microsoft Build

San Francisco | March 30 -

April 1

Oracle MME

Las

Vegas | April 20-24

Salesforce Connections

Atlanta | May 10-12

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