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Owning the Decision Point:
The Future of the In-store Mobile Experience

             Steen Andersson, 5th Finger
       Pete Zophy, Jos. A. Bank Clothiers, Inc.
              Tim Katz, Pacific Sunwear
             Sheri Gurock, Magic Beans
Owning the Decision Point:
The Future of the In-store Mobile Experience

                   Steen Andersson
                   5th Finger VP &
                   Co-Founder
Is This In-Store Mobile?
Is This In-Store Mobile?
The AVA in-store iRobot with iPad head
Is This In-Store Mobile?
Is This In-Store Mobile?
Is This In-Store Mobile?
Is This In-Store Mobile?
In-Store Mobile
              In-store mobile is:
              Leveraging the power of mobile’s
              deep consumer relationship to
              connect with shoppers inside
              a bricks and mortar location.

              At 5th Finger, we call this:

              Bricks and Mobile
The role of In-Store in… Apparel…
In-Store Mobile Is Important
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
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
Shoppers Prefer Mobile When Seeking
Further Product Information
How 5th Finger retail client customers prefer to find product details while in-store. (app users)
Mobile Shoppers Love Promotions



  Percentage of
  survey respondents
  that indicated
  mobile app feature
  as a high priority
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)
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.
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.


                                           100 million check-ins in
                                           the first six months
Korea Is Innovating
Asia- Pacific is Ahead
Percentage of mobile subscribers accessing mobile web at least monthly

         47%                            16%
                   43%
                                                                  8%




                              22%


                                                 12%*




                                               Source: Forrester (June 2011)
Mobile Will Be…
Your Wallet                            Your Mobile Associate
Convenience and speed drive purchase   Basket expansion
Questions?


Steen.andersson@5thfinger.com
Mobile Strategy
Pete Zophy, DVP of Ecommerce JoS. A. Bank
Our Path to Mobile
                            Found A
                            Partner


Customers
Asked For It

                  Built a                       Mobile App!
                  Strategic Plan

                 Goal = to build engagement,
                 drive foot-traffic & provide
                 an additional sales channel.
What we have done
JoS. A. Bank Mobile Site   JoS. A. Bank App




                                              Average time
                                              spent in App: 54
                                              seconds
                                              60% of users use
                                              the App 1-2
                                              times per month
What’s Next
Mobile Coupons       In-store Scanning
                    • Product Reviews
                    • Product Details
                    • Act as an Associate
Tips/Lessons Learned
• Mobile is the bridge that • How can we maximize
  connects the Online &       this opportunity
  Retail Channels
Mobile Retail App Deployment

Tim Katz, Sr. Operations Manager
We are explorers of style, creators of culture,
and instigators of fun.
Objectives
                                • Support brand image

                        • Leverage current technology

                    • Efficiently leverage store network

                         • Easy to manage and update

                                        • Cost effective

                                     • Quick to market

The iPad had to show true ROI and be a tool
          our associates would love to use.
Features
• Native App with configurable
  content management system

• E-Commerce Powered by existing
  Mobile Web site

• Nightly updates for optimal
  performance on store network

• Lookbooks, Photos, Videos

The backoffice allows us to communicate with our
associates on a more frequent and personal level
Lookbooks allow us to showcase the
    latest trends and upsell outfits.
If a style or color is not available an associate
can look it up and purchase online
QR codes continue the conversation in a
whole new way
Results and Future Plans
                • Positive Field Adoption and Response

                           • Proved Partner Capabilities

                          • ROI exceeding expectations

                            • Listen, learn and improve


400 Store rollout by holiday and all stores by next year
Questions?
Mobile Commerce & Magic Beans
What is Magic Beans?
• Founded in 2004
• Sells a combination of toys and baby gear
• 4 Boston-area locations (5th store coming soon)
• mbeans.com website has an international
  customer base
• Designed for parents by parents
• Has been named Best of Boston by Boston
  Magazine 4 out of the last 5 years
Wellesley Store
Why Mobile Commerce at Magic Beans?

• Typical shopper is an early adopter with access to a
  smartphone
• Customers are typically more educated about purchases
  and more time-sensitive during in-store trips
• Highly-trained staff under-utilized behind traditional POS
• Tech-savvy company culture – have been connecting
  with customers via blog & social media for over 5 years
Mobile Strategy Benchmarks

Education
Putting information in the shoppers’ hands
Promotions
Provide dynamic, hyper-individualized up-sell and
cross-sell opportunities
Convenience
Skip stressful checkout lines during hectic
shopping periods
The Magic Beans Solution? An App!
Magic Beans Mobile Goal


Empower customers
with mobile solution to
 increase satisfaction
during in-store visits.
Magic Beans App Benefits
• Dynamic mobile application
  for iPhone, Android and
  BlackBerry
• Scan and interact with
  products
• Access ratings, reviews and
  detailed product information
Magic Beans App Benefits
• Receive relevant promotions
  and targeted discounts
• Store account information
  and purchase history
• Checkout without having to
  wait in line
Magic Beans App Full Feature List
• Product information       •Barcode Scanning
• Dynamic cross-            •Location awareness
  sells/upsells             •Advanced digital wallet
• Pricing                   •Digital receipts
• Promotions/offers/deals   •Optimized mobile browsing
• Coupons                   •Maps
• Multi-channel Checkout    •Wish Lists
• Account management        •Social media
• Analytics                 •Rating & reviews feeds
• Customizable dashboard
2010 Holiday Results

  42% of smartphone
 owners chose mobile
self-checkout instead of
   waiting in line at a
Magic Beans during the
     holiday season.
2010 Holiday Results


     12% of all
transactions during
the holiday season
  were completed
   through Magic
Beans mobile self-
   checkout app.
2010 Holiday Results
  60% of consumers who scanned a
product with their smartphone purchased
               that product.
2010 Holiday Results

Shoppers using the
 Magic Beans app
rang up tickets that
averaged 8% more
than register based
   transactions.
The Future of Mobile Commerce
       at Magic Beans!
   Tablet-Assisted Shopping!
Thank you!

  Q&A

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The Future of In-Store Mobile: Driving Engagement and Sales

  • 1. Owning the Decision Point: The Future of the In-store Mobile Experience Steen Andersson, 5th Finger Pete Zophy, Jos. A. Bank Clothiers, Inc. Tim Katz, Pacific Sunwear Sheri Gurock, Magic Beans
  • 2. Owning the Decision Point: The Future of the In-store Mobile Experience Steen Andersson 5th Finger VP & Co-Founder
  • 4. Is This In-Store Mobile? The AVA in-store iRobot with iPad head
  • 9. In-Store Mobile In-store mobile is: Leveraging the power of mobile’s deep consumer relationship to connect with shoppers inside a bricks and mortar location. At 5th Finger, we call this: Bricks and Mobile
  • 10. The role of In-Store in… Apparel…
  • 11. In-Store Mobile Is Important
  • 12. 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
  • 13. 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
  • 14. Shoppers Prefer Mobile When Seeking Further Product Information How 5th Finger retail client customers prefer to find product details while in-store. (app users)
  • 15. Mobile Shoppers Love Promotions Percentage of survey respondents that indicated mobile app feature as a high priority
  • 16. 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)
  • 17. 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.
  • 18. 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. 100 million check-ins in the first six months
  • 20. Asia- Pacific is Ahead Percentage of mobile subscribers accessing mobile web at least monthly 47% 16% 43% 8% 22% 12%* Source: Forrester (June 2011)
  • 21. Mobile Will Be… Your Wallet Your Mobile Associate Convenience and speed drive purchase Basket expansion
  • 23. Mobile Strategy Pete Zophy, DVP of Ecommerce JoS. A. Bank
  • 24. Our Path to Mobile Found A Partner Customers Asked For It Built a Mobile App! Strategic Plan Goal = to build engagement, drive foot-traffic & provide an additional sales channel.
  • 25. What we have done JoS. A. Bank Mobile Site JoS. A. Bank App Average time spent in App: 54 seconds 60% of users use the App 1-2 times per month
  • 26. What’s Next Mobile Coupons In-store Scanning • Product Reviews • Product Details • Act as an Associate
  • 27. Tips/Lessons Learned • Mobile is the bridge that • How can we maximize connects the Online & this opportunity Retail Channels
  • 28. Mobile Retail App Deployment Tim Katz, Sr. Operations Manager
  • 29. We are explorers of style, creators of culture, and instigators of fun.
  • 30. Objectives • Support brand image • Leverage current technology • Efficiently leverage store network • Easy to manage and update • Cost effective • Quick to market The iPad had to show true ROI and be a tool our associates would love to use.
  • 31. Features • Native App with configurable content management system • E-Commerce Powered by existing Mobile Web site • Nightly updates for optimal performance on store network • Lookbooks, Photos, Videos The backoffice allows us to communicate with our associates on a more frequent and personal level
  • 32. Lookbooks allow us to showcase the latest trends and upsell outfits.
  • 33. If a style or color is not available an associate can look it up and purchase online
  • 34. QR codes continue the conversation in a whole new way
  • 35. Results and Future Plans • Positive Field Adoption and Response • Proved Partner Capabilities • ROI exceeding expectations • Listen, learn and improve 400 Store rollout by holiday and all stores by next year
  • 37. Mobile Commerce & Magic Beans
  • 38. What is Magic Beans? • Founded in 2004 • Sells a combination of toys and baby gear • 4 Boston-area locations (5th store coming soon) • mbeans.com website has an international customer base • Designed for parents by parents • Has been named Best of Boston by Boston Magazine 4 out of the last 5 years
  • 40. Why Mobile Commerce at Magic Beans? • Typical shopper is an early adopter with access to a smartphone • Customers are typically more educated about purchases and more time-sensitive during in-store trips • Highly-trained staff under-utilized behind traditional POS • Tech-savvy company culture – have been connecting with customers via blog & social media for over 5 years
  • 41. Mobile Strategy Benchmarks Education Putting information in the shoppers’ hands Promotions Provide dynamic, hyper-individualized up-sell and cross-sell opportunities Convenience Skip stressful checkout lines during hectic shopping periods
  • 42. The Magic Beans Solution? An App!
  • 43. Magic Beans Mobile Goal Empower customers with mobile solution to increase satisfaction during in-store visits.
  • 44. Magic Beans App Benefits • Dynamic mobile application for iPhone, Android and BlackBerry • Scan and interact with products • Access ratings, reviews and detailed product information
  • 45. Magic Beans App Benefits • Receive relevant promotions and targeted discounts • Store account information and purchase history • Checkout without having to wait in line
  • 46. Magic Beans App Full Feature List • Product information •Barcode Scanning • Dynamic cross- •Location awareness sells/upsells •Advanced digital wallet • Pricing •Digital receipts • Promotions/offers/deals •Optimized mobile browsing • Coupons •Maps • Multi-channel Checkout •Wish Lists • Account management •Social media • Analytics •Rating & reviews feeds • Customizable dashboard
  • 47. 2010 Holiday Results 42% of smartphone owners chose mobile self-checkout instead of waiting in line at a Magic Beans during the holiday season.
  • 48. 2010 Holiday Results 12% of all transactions during the holiday season were completed through Magic Beans mobile self- checkout app.
  • 49. 2010 Holiday Results 60% of consumers who scanned a product with their smartphone purchased that product.
  • 50. 2010 Holiday Results Shoppers using the Magic Beans app rang up tickets that averaged 8% more than register based transactions.
  • 51. The Future of Mobile Commerce at Magic Beans! Tablet-Assisted Shopping!
  • 52. Thank you! Q&A