Mobility In Retail Today: Connect With Customers To Drive More Revenue

Mobility
In
Retail
Today:

Connect
With
Customers
To

Drive
More
Revenue

Presented by
Session sponsored by

#CCSeries13
About
CCS
2013

ü 9 Webinars, 4 Days
ü Sessions covering Mobile,
Social, Store Ops,
X-Channel, and more
ü Featuring industry
analysts and consultants
ü Free for Retail executives
www.retailtouchpoints.com/connected-consumer-2013

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Today’s
Panelists

Jon Stine
Director,
Cisco Consulting Services
Cisco Systems
Andrew Gaffney
Editorial Director
Retail TouchPoints
MODERATOR
Bob Friday
VP and CTO,
Wireless Networking Group
Cisco Systems

© 2013 Cisco and/or its affiliates. All rights reserved. 7© 2013 Cisco and/or its affiliates. All rights reserved. 7
Mobility in Retail Today
Connect with Customers to Drive More
Revenue
Jon Stine
Director, Cisco Consulting Services
May 20, 2013
Bob Friday
VP and CTO, Wireless Networking Group

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
1
2
3
Smart Mobility and Retail:
Where’s the Value, and Why?
•  Yes, they’re shopping with
smartphones. Especially Gen Y.
•  15% CAGR US Smartphone shoppers,
2012-2015
No surprise.
•  Approach Mobility as a critical
element in cross-channel strategy.
•  What you must win: mobile research,
especially in store.
What
decisions will
you influence,
and when?
•  The most-desired by shoppers
•  Three value opportunities
1.  Decision influence
2.  Transaction / payment
3.  In-Store behavior analysis
Get ahead
of it now

9
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015
Total
Source: eMarketer, 2012
By 2014
99.4M mobile
subscribers using phones
to shop
38% of all US >15 years
95% of those will be
using smartphones
US Smartphone
Shoppers
Number of US Shoppers (M)
In 2012
11% smartphone percentage
of total US E-Commerce
revenue
In 2012
1.1% smartphone percentage of
total US retail revenue
Source: ComScore, 2013 Source: Cisco Consulting, 2013; National Retail Federation, 2012
Who and How Many? 15% CAGR for US
Smartphone Shoppers, 2012-15

Percentage of respondents doing now or interested in doing
Source: Cisco IBSG, 2012
Eight in Ten
Digital Mass
Market
97%
PC at
home
47%47%
Tablet at
home
TV screen
in store
46% 46%
Phone
in store
Phone at
home
Phone on
the go
48%54%
Touch-
screen in
store
64%96% 95% 90%93%
Über Digital PC at
home
Tablet at
home
Phone on
the go
Phone at
home
TV screen
in store
98%
Phone
in store
79%
Touch-
screen in
storeOne in Ten
Who and How Many? Smartphone Shopping
the Norm for Über-Digitals
MOBILE AT THE MASS TIPPING POINT

§ 40% research in the store, purchase online
§ ≈ 1/3rd shoppers using smartphones to shop
§ 11% don’t shop without them
What’s the Impact?
How Do You Catch and Keep?
Source: Cisco IBSG primary research, 2012; Forrester, 2012; National Retail Federation, 2012
Service–SupportTransact
The
Shopping
Journey
Online
(all screens)
Store
Call Center
CATCH
AND
KEEP

The
Dangerous
Transi.on

Online
(all screens)
Research—DecideAware
65% 90%TODAY’S STRATEGIC ISSUE
Channel
Preference
RESEARCH
ONLINE
STORE-BASED
REVENUE

What’s the Impact? The Evolution of the
Cross-Channel Journey Continues
USA ‘11: Do It Now / Interested
Source: Cisco IBSG, 2011-12 Doing now Interested
Search Buy USA ‘12: Do It Now / Interested
PC Store 65% 17%57% 17%
Store
Online
PC
40% 19%38% 19%
Mobile
Online
PC 33% 13%26% 18%
Doing now Interested
Mobile Store 29% 17%24% 21%
Kiosk Store
18% 30%
Click ‘n Collect
19% 27%
+ 21% YOY
+ 27% YOY

13
By 2016
52.3% US retail revenues
influenced by or transacted
thru internet
4X more influence than transactions
Up to 34% of segment
revenues influenced or
transacted by smartphones
Sources: Forrester 2012; Deloitte, 2013
Nearly Half of the
Apparel Digital
Commerce Thru
Smartphones
*Source: Research and Markets, 2012; forecast of US apparel retail revenues of $396.93B in 2016
What’s the Impact? Smartphones to
Influence or Purchase 20% Retail Dollars

14
2012
61% mobile subscribers most
likely to use the smartphone
in the store
53% on the way to the store
It’s all about
Right-Now
Decision-Making
Sources: : Deloitte, 2012; Cisco IBSG, 2013
Smartphones Influence Immediately

15
2011
44% of mobile research is in
the store
Of those who researched in
the store . . .
43% visited same-store site
40% visited diff-store site
38% visited a price
comparison app
How Do You
Catch and
Keep?
Source: iConsumer, 2011, Cisco IBSG 2013
The Key is Winning In-Store Research

Investing in Store Mobility:
Most-Desired Concept Overall Retail
How do you prefer to access
information
on your mobile device?
§  21% mobile web
§  12% mobile app
§  20% either way
2012 Cisco “Catch and Keep” Digital In-Store
Concept Survey, US Respondents
Tested six digital concepts, including
automated in-store pick-up, tablet-
based assistance, in-department
interactive screens to assist selection,
and personal mobile shopper.
Top-Ranked Overall:
Personal Mobile Shopper
Use mobile device in store to get offers
and coupons; scan product code for
online product information, ratings,
reviews, etc.
Source: Cisco IBSG, 2012-2013

17
Her

Store

Remote

Control

Mobile

Web

Access

Mobile

Purchasing

Store

Finder

Personal

Entry

RecogniFon

Text
Alerts

events
*
coupons

Social

Rewards

Personal

Scrapbook

coupons

points
*
looks

lists

Product

Availability

Sourcing,
Fit

Go-‐Withs

Store

Way-‐Finding

Financial

Wallet

TRAFFIC

ANALYSIS

ONLINE

INTEGRATION

ONLINE

INTEGRATION

INTERACTION
WITH

PHYSICAL
PRODUCT,

FIXED
SCREENS

Investing in Store Mobility:
A Vision for Mobile Transformation

© 2013 Cisco and/or its affiliates. All rights reserved. 18
Mobile Voice Mobile Data
Wi-FiCellular

© 2013 Cisco and/or its affiliates. All rights reserved. 19Source: Cisco Visual Networking Index 2011
Each user
to generate about
/ month
(Comparedto63MBtoday)
Nomadic and Indoor
of the time
users
are within Wi-Fi
coverage
Mobile data
to grow
2015
2010
About
Will be video
Mobiledatagrowrate
overfixedIPtrafficgrowth

Convergence of Wired, Wi-Fi and Cellular
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2010 2011 2012 2013 2014 2015
Fixed/Wi-fi (39% CAGR) Fixed/Wired (24% CAGR) Mobile Data (92% CAGR)
46.1%
46.2%
7.77%
32% CAGR
2010–2015
Petabytes/Month
Source: Cisco Visual Networking Index (VNI) Global IP Traffic Forecast, 2010–2015 (Wi-Fi History)
2007

19out of 20smartphones support Wi-Fi
50%of
smartphone usage is
already on Wi-Fi
2010 2011
0%
50%
100%
23%
50%
80% of the time users
are within Wi-Fi coverage
Mostly nomadicuse
Sources: Cisco Visual Networking Index, 2011; Bango Inc.,
February 2011; North Carolina State University, Cisco IBSG 2011

Connected
Consumer Experience
SP Mobility Enterprise
Mobility

Location Analytics?
Location-Based Services?
Multichannel Strategy?

• Location Accuracy is a distribution: Avg., Std. Deviation, Tail
• While UWB is very accurate, it is an overlay
• The pure indoor client technologies are a threat but …
• Fingerprinting is approaching its limits
Network Assisted Location

802.1x/802.11i
Next Generation Hotspot
802.11u
Pre Association
Pre Authentication Local Service Discovery
Reliable Secure Seamless Profitable
Wi-Fi authentication
experience on par
with Cellular
Cellular / Wi-Fi
roaming user
experience
Encrypted Wi-Fi user
experience
Mobile Context
Aware platform
EAP-SIM, EAP-
TLS, EAP-TTLS
Roaming
Encrypted Wi-Fi Link
ENGAGEDETECT CONNECT
$
Next Generation
Hotspot

Guest Presence Guest Access Guest Experience
Three Stages to Engagement
Mobile device
detection,
registration
Seamless,
secure
Wi-Fi onboarding
Location-based
content and
services
EngageDetect Connect

Retail
Transforming Shopping Experience with Personalized Wi-Fi Services
•  Pre-Authentication:
Network Services
Discovery on
the Device
3G

•  Local Services
Discovery
Wifi
Shops
Dining
Services
Mall Map
Local Services
Retail

Wifi
Shops
Dining
Services
Mall Map
Local Services
Shops
Retail
Discovery

Local Services
Somemall.com/shops
CLOTHING
Cotton On
Country Road
RJM
Pumpkin Patch
Victory Jeans
See More…
RJM
Retail
Discovery

Mall Promenade
Featured Search ServicesAmenitiesMap
Victory Jeans:
20% OFF entire store!
Retail
•  Turn-by-Turn
Indoor Navigation
•  Location-based
Web Engagement

Mall Promenade
Hello Dan,
Welcome back to RJM!
Launch App
Cancel
Retail
•  Turn-by-Turn
Indoor Navigation
•  App “Wake-Up”

Featured Search Map ServicesAmenities
Product Locater
Promotions
Preferences
Store Map
Retail
•  Personalized App

Welcome Product Search
Men’s Sweaters
Search
Retail
•  Integration with
Product
Databases

•  Turn-by-Turn
Navigation
Based on Location
RJM
Fitting Rooms
Menswear
Women’s
Activewear
Retail

RJM
HOT DEAL!!!
Buy One Men’s T-Shirt,
Get One Free
Retail
•  Location-Based
App Engagement

RJM
Fitting Rooms
Menswear
Women’s
Activewear
Retail
•  Turn-by-Turn
Indoor Navigation

Lowestprice.net
LowestPrice.net
Logan Wool Sweater
Find it!
Compare Prices Instantly!
RJM Price Match
Guarantee.
Buy Now!
Retail
•  Web-Based
Engagement

RJM
Jeana, your preferred RJM
Sales Associate, will be
with you in 2 minutes.
Retail
•  Shopper’s
Location for
High-Touch
Engagement

RJM
Thank you for your
purchase. Your
receipt is saved to
your wallet.
View Receipt
See promotional
information from our mall
partners
Retail
•  Integration with
App-Based Mobile
Payment Systems

Cisco Connected Mobile Experiences
www.cisco.com/go/cmx
Cisco Internet Business Solutions Group
www.cisco.com/go/IBSG
Cisco Retail
www.cisco.com/go/retail

Bob Friday
bofriday@cisco.com
Jon Stine
jostine@cisco.com

Thank You

#CCSeries13
Q&A

Andrew Gaffney
Editorial Director
Retail TouchPoints
MODERATOR
Jon Stine
Director,
Cisco Consulting Services
Cisco Systems
Bob Friday
VP and CTO,
Wireless Networking Group
Cisco Systems

#CCSeries13
Thank
You

For
Joining
Us

www.retailtouchpoints.com/connected-consumer-2013
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Media
for
Retail:

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“Posts”
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Mobility In Retail Today: Connect With Customers To Drive More Revenue

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