The document discusses the evolving role of in-store mobile technology and engagement. It notes that consumers are increasingly using smartphones to research products, compare prices, and access promotions while shopping in physical stores. Retailers are recognizing the importance of mobile and developing strategies around in-store apps, beacons, check-out solutions, gamification and more to improve the shopping experience and encourage purchases. The use of mobile technology in retail is more advanced in Asia, and continuing to grow rapidly in importance globally.

1. Engaging
In
Store
Experience
that
Generates
Shopping
Excitement
Steen
Andersson,
CMO,
5th
Finger
JJ
Hirschle,
Head
of
Retail,
Google
George
Findling,
Enterprise
Architect,
Crate
&
Barrel
Johann
Huber-­‐GuFerrez,
Strategy
and
Product
Development,
Macy’s
and
Bloomingdales

2. Is This In-Store Mobile?
The AVA in-store iRobot with iPad head

3. Is This In-Store Mobile?

4. Is This In-Store Mobile?

5. Is This In-Store Mobile?

6. Is This In-Store Mobile?

7. Is This In-Store Mobile?

8. The role of In-Store in… Apparel…

9. Consumers Are Already Using It
70% of smartphone owners
have used their mobile while
shopping in-store
-Google Insights, May 2011
• Price Comparisons
• Customer Reviews & Ratings
• Stock Checks
• Check-in
• Coupons
• Access Promotions

10. Price Comparisons Are Happening
Amazon, eBay, RedLaser
and others are providing
retail customers a mobile
solution to research,
compare and purchase while
in-store.
49% of smartphone owners
have used their mobile to
compare prices.
-Google Insights, May 2011

11. Shoppers Prefer Mobile When Seeking
Further Product Information
How 5th Finger retail client customers prefer to find product details while in-store. (app users)

12. Mobile Shoppers Love Promotions
80% Promotions
Special offers
Percentage of
survey respondents Product info
that indicated
mobile app feature Outfit/project ideas
as a high priority
Reviews
30% How to/informational videos

13. They Are Checking-Out Via Mobile
In-store ordering and check-out system via Demonstration of the Starbucks Card Mobile App
iPad at Specialty’s in San Francisco. on a smart phones at the Capital Gallery Starbucks
in Washington, DC. / Garrett Hubbard/USAT
(Paying with Starbucks card)

14. It’s About Convenience
Target Makes Shopping Simpler
Tip Customers over
the threshold to
certainty of purchase.
Scan products in-store
and view product
specifications, features
and read reviews.

15. It’s About Engagement
Shopkick Uses Achievement to Motivate
A retailer agnostic
approach that gamifies
the shopping experience
with offers and deals
provided by brands.
The clever sub-audible in-
store location tool provides
the best 'heads up display'
potential in the market
today as someone walks
around the store.

16. Korea Is Innovating

17. Asia- Pacific is Ahead
Percentage of mobile subscribers accessing mobile web at least monthly
47% 16%
43%
8%
22%
12%*
Source: Forrester (June 2011)

18. Mobile Will Be…
Your Wallet Your Mobile Associate
Convenience and speed drive purchase Basket expansion

19. Business
begins
asking
Develop
tablet
PC
app
for
Partner
with
Shopkick.
for
store
associate
hand
Furniture
Sales
Associate.
Begin
focus
on
mCommerce.
held
devices.
Wireless,
real
?me,
inking.
1998
2000
2007
2009
2010
2011
Launch
GiD
Registry
Kiosk
Launch
mobile
web
site.
Form
Mobile
Steering
with
IR
hand
held
device
Pilot
in-­‐store
communicator CommiLee.
used
by
customer
for
GiD
hand
held
device.
eCommerce
group
to
Registry
crea?on.
execute
mobile
ini?a?ve.
Develop
mobile
strategy.
Hand
Held
and
Mobility
EvoluFon

20. TIMELINES
PHOTOS
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is
an
example
text.
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is
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is
an
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text.
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ahead
an
replace
it
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ahead
an
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it
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ahead
an
replace
it
with
your
own
text.
with
your
own
text.
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your
own
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January
February
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June
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is
an
example
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ahead
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ahead
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ahead
an
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own
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21. TIMELINES
PHOTOS
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is
an
example
text.
Go
ahead
and
replace
it
with
your
own
text.
It
is
meant
to
give
you
a
feeling
of
how
the
designs
looks
including
text.

22. TIMELINES
PHOTOS
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March
May
July
September
November
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own
text.
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own
text.
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own
text.
your
own
text.
your
own
text.
This
is
an
example
text.
Go
ahead
and
replace
it
with
your
own
text.
It
is
meant
to
give
you
a
feeling
of
how
the
designs
looks
including
text.

23. TIMELINES
PHOTOS
3
STEPS
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is
an
example
text.
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an
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text.
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an
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text.
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ahead
an
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24. TIMELINES
PHOTOS
3
STEPS
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is
an
example
text.
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is
an
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text.
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is
an
example
text.
Go
ahead
an
replace
it
with
ahead
an
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it
with
ahead
an
replace
it
with
your
own
text.
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own
text.
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own
text.
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text
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25. TIMELINES
PHOTOS
3
STEPS
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is
an
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text.
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an
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text.
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is
an
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text.
Go
ahead
an
replace
it
with
ahead
an
replace
it
with
ahead
an
replace
it
with
your
own
text.
your
own
text.
your
own
text.
Example
text
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text
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26. TIMELINES
PHOTOS
4
YEARS
(0R
1
YEAR
4X3
MONTHS)
Your
own
sub
headline
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text
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text
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text
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is
an
example
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is
an
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ahead
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ahead
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text.
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ahead
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text.
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ahead
an
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it
with
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it
with
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it
with
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it
with
your
own
text.
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own
text.
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own
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own
text.
2009
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2012
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ahead
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ahead
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text.
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ahead
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with
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with
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it
with
your
own
text.
your
own
text.
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own
text.
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own
text.

27. Timeline
2010
2011
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2011
2012
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2010
2011
2012
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2014
2015
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1
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28. Timeline
2010
2011
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2012
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29. Mobile Search Trends
and
Google Opportunity

30. By end of 2011
over half
of Americans will have a
smart phone
30
Google Confidential and Proprietary
Source: Nielsen March 2010, Morgan Stanley 2010

31. Mobile & tablets are changing
shopping behavior
day
this
59% of 70% of
38% of mobile users used
shoppers abandon their phones for these holiday
as
d. buying something in holiday mobile shoppers
the store based on shopping used their phones to
s
what they looked up last Q4 shop/research
on their phone while in a store
east
uy
eir
in
67% of 87% of
ne consumers shoppers felt
wo or
researched online they could find a
prior to purchase better deal
for at least a week elsewhere
last Q4
Source: Google/OTX Holiday shopping survey, Comscore July 2011, State of economy
31 Google confidential

32. Mobile Is Local & Drives Sales
1 in 3 77%
Contacted a
Searches Have business
Local Intent
32
61% Call 59% Visit
Source: OTX MediaCT Survey, Q4 2010, 5,013 US online respondents

33. Mobile Is The Ultimate Shopping Companion
70%
use
smartphone
in-store
33
Source: Google User Behavior Study 2010 Google Confidential and Proprietary

34. Mobile Sparks In-Store Activities
34% Search
Inventory 38% Look
For
Promotions
34
Source: Google/OTX Consumer Pulse Check, October 5, 2010.
Base: Those who own a smartphone and have started or plan to shop this holiday season
Q: In which of the following ways, if any, do you plan to use your smartphone to do your shopping this Holiday Season?

35. Mobile Shopping Queries Are
15% Mobile Exploding
And 255% Samsung
Galaxy
growth in store locator
searches during week of Apple iPad
Black Friday!
Droid X
Sprint Evo
Android Nexus One
Android myTouch
Blackberry Storm
iPhone 3GS
Android G1
iPhone 3G
iPhone
Palm Pre
---EDGE--- ---3G--- ---4G---
2007 2008 2009 2010
Source: Google Internal Data U.S.

36. 1. Be Discoverable & Drive In
Store
36
Hyper Location
Local Extensions

37. 2. Drive Calls and Action
Site
Links
37

38. 3. Leverage Your Offers
Google Retail

39. 4. Bid By Distance
39

40. 5. Cater to the Tablet User
Tablets Shipments
Growing 4x in 2011
to 61M
Tablet
Conversion
Rates Equal or
Higher
AOV
Higher Then
PC’s
Google Retail
40
Sources: BCG, Business Insider, Citrix, Morgan Stanley, Nielsen, Read It Later

41. Looking
Back
&
Looking
Forward
Johann
Huber-­‐
GuFerrez
Mobile
Strategy
and
Product
Development,
Macy’s

42. A
Look
Back
• SMS
&
MMS
– 4
billion
can
use
SMS
worldwide
– 3.2
billion
can
use
MMS
worldwide
– 2.1
billion
web
users
worldwide
– 280
million
Americans
can
use
MMS
– Text
FLIGHT
to
21534

43. • Just
text
38513
or
tweet
"@AskMacys"
with
a
product
category,
web
ID
or
UPC
number,
and
we'll
text
or
tweet
you
back
details
on
top-­‐
rated
items!

44. Macy’s
By
Appointment
• Text
MBA
to
76274
to
setup
your
appointment
with
a
personal
shopper.

45. Know
Your
Customer:
SMS
&
Social

46. A
Look
Forward
• Sensory
Technologies
– Visual
RecogniFon
– Audio
– Touch
• Register
Free
&
Rise
of
the
Mobile
Wallet
• Geo
(In-­‐Store
&
Out
of
Store)
– Tower-­‐TriangulaFon
– GPS
– Wi-­‐Fi
– Audio
– RFID
&
NFC
– Geo-­‐Fencing
– In-­‐Door
Mapping
&
NavigaFon
• GameficaFon
• Cloud
Based
Apps
vs.
Client
Side
Apps
• Thin
Apps

47. Macy’s
Spring
QR

48. Mobile
Visual
• Download
Shalink
in
the
app
store
• Take
a
picture
and
email
to
jp@shalink.net

49. Mobile
Visual
• Take
a
picture
and
email
to
jp@shalink.net

50. confirm
BANK
request
payment
payment
7 Merchant
2 Bank
NFC, Barcode, Audio,
and more to come,
identify
1 wallet confirmation
confirm 3
payment Payment
6 5
request Processor
BANK initiate
4
transaction
Wallet send
targeted
offers
Consum
er BANK
BestBuy Brands Merchant
Target
Macy’s

51. GameficaFon
Customers choose
which products or
coupons to redeem
Customers are awarded
as their reward.
“Points” based on their behavior
in mobile games and apps. Reward browsing and
redemption happens
in app
Track all transactions
online along with
customer data you
can customize

52. In-­‐Store
Sensory
Engagement

53. confirm
BANK
request
payment
payment
7 Merchant
2 Bank
NFC, Barcode, Audio,
and more to come,
identify
1 wallet confirmation
confirm 3
payment Payment
6 5
request Processor
BANK initiate
4
transaction
Wallet send
targeted
offers
Consumer
BANK
BestBuy Brands Merchant
Target
Macy’s 53