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Combat Showrooming with Personalization

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Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from Vibes 2013 Mobile Consumer Report shows that personalization can help retailers combat showrooming. As the holiday shopping season approaches, this research provides insights about the reality of "showrooming 2.0," where the trend of showrooming is now a mainstream shopping behavior that most shoppers are doing. In this presentation, you will learn about: - The current state of showrooming - The explosion of in-store smartphone usage - How personalization drives purchases - Consumer mobile messaging preferences - How to achieve next-level mobile marketing

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2013 Mobile Consumer Trends! Combat Showrooming with Personalization OCTOBER 24, 2013! Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell! Mark Tack, Vice President, Marketing, Vibes @MarkTack! #Showrooming!
2 Methodology Showrooming 2.0 Personalization Mobile relationship management Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
Methodology! 3 Overview §  Vibes partnered with Equation Research to conduct a quantitative research effort to understand the mobile device usage, shopping habits, behaviors and motivations of the connected consumer. Methodology §  Fifteen minute online quantitative survey. §  Respondents recruited via paid national panel sample. §  Fieldwork conducted July 16-18, 2013. Sample § Total n=1,000 § Smartphone owners § Ages 18+ § U.S. residents Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
Showrooming 2.0! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 4
The current state of showrooming! 5 Showrooming — frequency of smartphone use for in-store comparison shopping/purchasing! Net 44%! 17% 26% 20% 19% 12% 7% Every time 
 I shop! Most of
 the time! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential Often! Sometimes! Rarely! Never!
Profile of the showrooming shopper! 6 Children present?! Age! Showroomers! 44.2%! 24.7%! 20.7%! 17.7%! 15.9%! 17.5%! 14%! 9.4%! 6.7%! 18 - 24! Yes 48.2% No 51.8% 23%! 25 - 34! Showroomers! 35 - 44! 45 - 54! 55 - 64! 4.9%! 1.2%! Non-showroomers! 65 or older! Non-showroomers! Yes 38.5% No 61.5% Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000
Smartphone usage in-store explodes! Recent in-store behaviors! 2012 SHOWROOMING BEHAVIOR Showrooming increased 156% in 2013 2013 33%! Compared prices on a competitor’s website! Purchased a product 
 from a competitor! 9%! 11%! Purchased a product from the store’s website after you’d left the store! Researched a product on
 the store’s website! Looked up a product review! Beyond
 Showrooming! 7 Used a company’s app in the store! Scanned a QR Code for product information or an offer! Checked-in using a location-based service (i.e., Foursquare) to get a deal or offer! Sent a text message to 
 join a subscription list! Sent a text message to get more
 information on a product or offer! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 49%! 23%! 24%! 20%! 40%! 31%! 17%! 25%! 27%! 31%! 12%! 19%! 9%! 18%! 10%! 15%! 49%! 2013! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000 2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000
186% increase in new purchases due to in-store text or QR scan! Impact of in-store text/QR scan (31% of total sample)! 186% 47%! 42%! 40%! 14%! I made a purchase I hadn’t planned to because of the information I received! I was going to make the purchase anyway, but felt better about it! 2012 2013 Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 22%! 12%! I was going to make the purchase, but the information didn’t sway me! 5%! 7%! The information dissuaded me from making the purchase! 8
Retailers have a 50/50 shot of combatting showrooming! Action taken after in-store price comparison (49% of total sample)! 47%! 45%! 37% 31% 7%! 10% 8% 6% 6% 1% I made the I used the
 purchase information
 while I was into get a better price store, paying at the store the price that where I was was marked! shopping! I purchased the item online at Amazon! I purchased the item online at a competitor’s website! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 I purchased the item in a competitor’s physical store! I did not purchase the item anywhere! None of the above! 9
Reaching the showrooming shopper! 10 Showroomer vs. Non-Showroomer – Channel preferences! 77.6%! 65.6%! 68.2%! 63.4%! 52.8%! 119%! 53.5%! 34.6%! 35.7%! 24.4%! 15.9%! E-mail! Showroomers App! Facebook! Non-Showroomers Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 Text! Twitter!
Personalization: The anti-showrooming weapon! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 11
The personalization disconnect! 89% of consumers would sign up for mobile messages if they were personalized! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 12 18% of consumers frequently see personalization from retailers and brands!
Personalization preferences! 13 Most important aspects of personalization! 60% Uses your preferences – favorite sizes, brands, shopping categories! 20% Timeliness – when you’re getting 
 ready to purchase that item! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 13% Location – when you’re in the store or around the store! 8% Uses your name!
Building your mobile relationships! 14 What entices you to subscribe to a retailer or brand?! 79%! 70%! 46%! 32%! Incentives or coupons! 45%! 29%! Product info 
 & updates! 2012 2012 Source: Vibes 2012 Mobile Consumer Survey – Source: Vibes 2013 Mobile Consumer Survey – August 2013 August 2012 Base: Total n=1,000 ©2013 Vibes All rights reserved. Confidential Exclusive content! 43%! 27%! Store news 
 & events! 2013 2013! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,00
Maximizing your mobile relationships! 15 What actions would make you unsubscribe from a retailer or brand?! 13% 66% 56% 40% 32% 20% 350% 9% 1% The 
 The Too many The coupon information or incentives messages messages were or updates! wasn’t relevant were not to me! good enough! untimely! I couldn’t personalize the information 
 I received! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 Too few messages! 7% Other! None of the above!
Three standout trends! §  16 Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report shows that personalization can help retailers combat showrooming. 156% increase in showrooming from 2012, and 36% increase in consumers using mobile devices to shop in-store! 89% of consumers want personalization, but only 18% see it frequently from retailers! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 186% year-over-year increase in consumers who make purchases based on in-store text message or QRcode scan!
Mobile Relationship Management! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 17
Mobile relationship management! §  18 Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
Mobile relationship management! Technology! §  Technology is the core of Mobile Relationship Management §  Work with a technology platform that allows you to manage your customer relationships at scale §  Integrated platform that allows you to execute across channels Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 19
Mobile relationship management! Strategy! §  Integrate your mobile marketing strategy into your overall marketing mix §  Mobile should work with your other marketing channels like email, direct mail, in-store and social media §  Apply your CRM strategies to mobile Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 20
Mobile relationship management! Execution! §  Execute based on your current mobile maturity -  -  Run: take a program-based approach -  Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential Walk: take a project-based approach with mobile Fly: true Mobile Relationship Management 21
Mobile relationship management! Data! §  Leverage the data your are collecting to drive engagement with your customers through personalized mobile experiences §  Augment your data with mobile behavioral data to deliver true one-to-one marketing §  Get started! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 22
Mobile relationship management! §  23 Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
2013 Mobile Consumer Trends! Combat Showrooming with Personalization OCTOBER 24, 2013! Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell! Mark Tack, Vice President, Marketing, Vibes @MarkTack! #Showrooming!
25 Thank you!! www.vibes.com • hello@vibes.com 312.753.6330 main • 312.589.6960 sales Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential

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Combat Showrooming with Personalization

  • 1. 2013 Mobile Consumer Trends! Combat Showrooming with Personalization OCTOBER 24, 2013! Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell! Mark Tack, Vice President, Marketing, Vibes @MarkTack! #Showrooming!
  • 2. 2 Methodology Showrooming 2.0 Personalization Mobile relationship management Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
  • 3. Methodology! 3 Overview §  Vibes partnered with Equation Research to conduct a quantitative research effort to understand the mobile device usage, shopping habits, behaviors and motivations of the connected consumer. Methodology §  Fifteen minute online quantitative survey. §  Respondents recruited via paid national panel sample. §  Fieldwork conducted July 16-18, 2013. Sample § Total n=1,000 § Smartphone owners § Ages 18+ § U.S. residents Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
  • 4. Showrooming 2.0! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 4
  • 5. The current state of showrooming! 5 Showrooming — frequency of smartphone use for in-store comparison shopping/purchasing! Net 44%! 17% 26% 20% 19% 12% 7% Every time 
 I shop! Most of
 the time! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential Often! Sometimes! Rarely! Never!
  • 6. Profile of the showrooming shopper! 6 Children present?! Age! Showroomers! 44.2%! 24.7%! 20.7%! 17.7%! 15.9%! 17.5%! 14%! 9.4%! 6.7%! 18 - 24! Yes 48.2% No 51.8% 23%! 25 - 34! Showroomers! 35 - 44! 45 - 54! 55 - 64! 4.9%! 1.2%! Non-showroomers! 65 or older! Non-showroomers! Yes 38.5% No 61.5% Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000
  • 7. Smartphone usage in-store explodes! Recent in-store behaviors! 2012 SHOWROOMING BEHAVIOR Showrooming increased 156% in 2013 2013 33%! Compared prices on a competitor’s website! Purchased a product 
 from a competitor! 9%! 11%! Purchased a product from the store’s website after you’d left the store! Researched a product on
 the store’s website! Looked up a product review! Beyond
 Showrooming! 7 Used a company’s app in the store! Scanned a QR Code for product information or an offer! Checked-in using a location-based service (i.e., Foursquare) to get a deal or offer! Sent a text message to 
 join a subscription list! Sent a text message to get more
 information on a product or offer! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 49%! 23%! 24%! 20%! 40%! 31%! 17%! 25%! 27%! 31%! 12%! 19%! 9%! 18%! 10%! 15%! 49%! 2013! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000 2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000
  • 8. 186% increase in new purchases due to in-store text or QR scan! Impact of in-store text/QR scan (31% of total sample)! 186% 47%! 42%! 40%! 14%! I made a purchase I hadn’t planned to because of the information I received! I was going to make the purchase anyway, but felt better about it! 2012 2013 Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 22%! 12%! I was going to make the purchase, but the information didn’t sway me! 5%! 7%! The information dissuaded me from making the purchase! 8
  • 9. Retailers have a 50/50 shot of combatting showrooming! Action taken after in-store price comparison (49% of total sample)! 47%! 45%! 37% 31% 7%! 10% 8% 6% 6% 1% I made the I used the
 purchase information
 while I was into get a better price store, paying at the store the price that where I was was marked! shopping! I purchased the item online at Amazon! I purchased the item online at a competitor’s website! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 I purchased the item in a competitor’s physical store! I did not purchase the item anywhere! None of the above! 9
  • 10. Reaching the showrooming shopper! 10 Showroomer vs. Non-Showroomer – Channel preferences! 77.6%! 65.6%! 68.2%! 63.4%! 52.8%! 119%! 53.5%! 34.6%! 35.7%! 24.4%! 15.9%! E-mail! Showroomers App! Facebook! Non-Showroomers Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 Text! Twitter!
  • 11. Personalization: The anti-showrooming weapon! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 11
  • 12. The personalization disconnect! 89% of consumers would sign up for mobile messages if they were personalized! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 12 18% of consumers frequently see personalization from retailers and brands!
  • 13. Personalization preferences! 13 Most important aspects of personalization! 60% Uses your preferences – favorite sizes, brands, shopping categories! 20% Timeliness – when you’re getting 
 ready to purchase that item! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 13% Location – when you’re in the store or around the store! 8% Uses your name!
  • 14. Building your mobile relationships! 14 What entices you to subscribe to a retailer or brand?! 79%! 70%! 46%! 32%! Incentives or coupons! 45%! 29%! Product info 
 & updates! 2012 2012 Source: Vibes 2012 Mobile Consumer Survey – Source: Vibes 2013 Mobile Consumer Survey – August 2013 August 2012 Base: Total n=1,000 ©2013 Vibes All rights reserved. Confidential Exclusive content! 43%! 27%! Store news 
 & events! 2013 2013! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,00
  • 15. Maximizing your mobile relationships! 15 What actions would make you unsubscribe from a retailer or brand?! 13% 66% 56% 40% 32% 20% 350% 9% 1% The 
 The Too many The coupon information or incentives messages messages were or updates! wasn’t relevant were not to me! good enough! untimely! I couldn’t personalize the information 
 I received! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 Too few messages! 7% Other! None of the above!
  • 16. Three standout trends! §  16 Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report shows that personalization can help retailers combat showrooming. 156% increase in showrooming from 2012, and 36% increase in consumers using mobile devices to shop in-store! 89% of consumers want personalization, but only 18% see it frequently from retailers! Source: Vibes 2013 Mobile Consumer Survey – August 2013 Source: Vibes 2013 Mobile Confidential ©2013 Vibes All rights reserved. Consumer Survey – August 2013 Base: Total n=1,000 186% year-over-year increase in consumers who make purchases based on in-store text message or QRcode scan!
  • 17. Mobile Relationship Management! #Showrooming! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 17
  • 18. Mobile relationship management! §  18 Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
  • 19. Mobile relationship management! Technology! §  Technology is the core of Mobile Relationship Management §  Work with a technology platform that allows you to manage your customer relationships at scale §  Integrated platform that allows you to execute across channels Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 19
  • 20. Mobile relationship management! Strategy! §  Integrate your mobile marketing strategy into your overall marketing mix §  Mobile should work with your other marketing channels like email, direct mail, in-store and social media §  Apply your CRM strategies to mobile Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 20
  • 21. Mobile relationship management! Execution! §  Execute based on your current mobile maturity -  -  Run: take a program-based approach -  Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential Walk: take a project-based approach with mobile Fly: true Mobile Relationship Management 21
  • 22. Mobile relationship management! Data! §  Leverage the data your are collecting to drive engagement with your customers through personalized mobile experiences §  Augment your data with mobile behavioral data to deliver true one-to-one marketing §  Get started! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential 22
  • 23. Mobile relationship management! §  23 Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.! Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential
  • 24. 2013 Mobile Consumer Trends! Combat Showrooming with Personalization OCTOBER 24, 2013! Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell! Mark Tack, Vice President, Marketing, Vibes @MarkTack! #Showrooming!
  • 25. 25 Thank you!! www.vibes.com • hello@vibes.com 312.753.6330 main • 312.589.6960 sales Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential