[Slides] Make an App for That: Strategies for Winning Retail Mobile Strategies, by Chris Silva
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This document discusses strategies for retailers to develop successful mobile apps. It notes that smartphones and tablets are increasingly used for shopping and over 2/3 of smartphone users bring their devices to stores. Examples are provided of engaging mobile apps from companies like Sephora, Home Depot, GE, Overstock, Taco Bell, Redbox, and Tesco that drive user interaction, transactions, and sales. The presentation emphasizes starting with clear business goals and choosing the right mobile strategy and app type to align with those goals. It outlines initial steps for retailers to assess their current mobile capabilities and determine the best path forward.
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[Slides] Make an App for That: Strategies for Winning Retail Mobile Strategies, by Chris Silva
- 1. 1 Make An App For That: Strategies For Winning Retail Mobile Strategies Altimeter Group Webinar #appforthat March 2, 2012 Chris Silva Industry Analyst, Mobile
- 2. Smartphones And Tablets Are Where Users Turn When Shopping © 2012 Altimeter Group
- 3. 3 Over 2/3 of smartphone users took them to the store with them this past holiday. They spent on average $71 per order when purchasing on their smartphones. © 2012 Altimeter Group
- 4. 4 People can’t buy smartphones fast enough iPhone 4s: 4M devices in its first weekend, bests Kinect as fastest selling device ever! © 2012 Altimeter Group
- 5. 5 Smartphone Ownership Continues Meteoric Rise The new mobile customer is overwhelmingly a smartphone customer. © 2012 Altimeter Group
- 6. 6 Tablets are quickly following Apple’s iPad sold at a rate of 14.8/hr on Black Friday 2011. The pile – if stacked – would be measured in miles. © 2012 Altimeter Group
- 7. 7 We’re Seeing These Shoppers Grow Rapidly U.S. Online Holiday Spend: 2011 vs. 2010 Overall Holiday Spend (Nov.1-Dec. 26) Thanksgiving Day (Nov. 24) 35274 Black Friday (Nov. 25) Millions ($) 26% YOY increase 30591 Thanksgiving Weekend (Nov. 26-27) Cyber Monday (Nov. 28) 22% YOY increase 2011 2010 Green Monday (Dec. 12) 15% YOY increase 2011 Free Shipping Day (Dec. 16) 2010 2011 saw gains on Week Ending Dec. 25 every major 0 500 1000 1500 2000 2500 3000 shopping day over Millions ($) 2010. Source: Comscore, Q4 2011 © 2012 Altimeter Group
- 8. 8 If You Build It… They’re Already There More than 50% of adults are buying on smartphones today, more than 2/3 have the device in-store, still many aren’t being served. © 2012 Altimeter Group
- 9. Why Many Are Lagging In The Race © 2012 Altimeter Group
- 10. 10 Not All Brands Are ―Flying High‖ Altimeter Identified 3 Phases Of Mobile Maturity, Which One Does Your StrategyFeel Most like? © 2012 Altimeter Group
- 11. 11 The First Step Is Choosing The Right Path Look complicated? It’s not but needs to be undertaken carefully to get on the right path. © 2012 Altimeter Group
- 12. 12 The Second, Choosing The Right App Engage strategies can provide product information, post-purchase support, or help to provide a presence for retailers and brands with a fully online presence. The focus is on bringing shoppers closer to the brand to drive interaction, not just spend. ENGAGE © 2012 Altimeter Group
- 13. 13 Different Apps Serve Very Different Purposes These strategies are focused on driving transactions and measured in total purchases, purchase size or frequency, and purchase-per-store metrics. The ROI model is simple — drive purchases and grow the business. ENRICH © 2012 Altimeter Group
- 14. Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253 What Winning Looks Like © 2012 Altimeter Group 2011
- 15. 15 Engage: Sephora-To-Go app serves up the ultimate palate of engagement Sephora-To-Go designed to be the Go-To • ―Try on‖ products virtually • Watch expert tutorials and product demos • View Sephora staff ―obsessions‖ • Scan in-store barcodes and QR codes • Access >1m+ ratings and reviews • Fully integrated with Sephora Beauty Accounts • Locate the nearest Sephora via GPS • And more! © 2012 Altimeter Group
- 16. 16 Engage: Home Depot designs multi-channel QR code campaign to aid the considered purchase— online and off Home Depot’s campaign spans online and offline media, in-store signage, local events, and more. Once activated, shoppers can access how-to videos, product demos, relevant accessories, buying guides, project guides, even make a purchase. © 2012 Altimeter Group
- 17. 17 Engage: GE’s Moodometer helps you find just the right bulb © 2012 Altimeter Group
- 18. 18 Enrich: Overstock.com develops mobile app to promote, complete with scratch-off daily coupons © 2012 Altimeter Group
- 19. 19 Enrich: Taco Bell joins forces with MTV to offer exclusive sneak-peak award show music and video content As a sponsor of MTV’s Video Music Awards, Taco Bell seized the opportunity to engage customers directly with the product by promoting MTV’s; The campaign yielded nearly a half million scans in a mere 4 weeks. © 2012 Altimeter Group
- 20. 20 Enrich: Redbox’s 10 Days of Deals mobile campaign drives mass awareness, engagement, sales Using multiple channels to drive awareness: • 1.5 million texts in 10 days • 400,000 unique participators • 200,000 new Redbox customers © 2012 Altimeter Group
- 21. 21 Enrich: Tesco customers scan and purchase goods in virtual subway supermarkets Customers scan QR codes to purchase products for same day delivery while in the subway. More than 10K consumers visited using their smartphones. New members rose by 76% after the first implementation and online sales increased by 130%. © 2012 Altimeter Group
- 22. Focus On Goals, Path Then App © 2012 Altimeter Group 2011
- 23. 23 Next steps: Where Are You Now? Where are you today? What is your endgame? What should the app be? © 2012 Altimeter Group
- 24. 24 Next Steps: What Is The Business Seeking? Where are you today? What is your endgame? What should the app be? © 2012 Altimeter Group
- 25. 25 Next Steps: Building The Best Tool Where are you today? What is your endgame? What should the app be? © 2012 Altimeter Group
- 26. 26 Choosing strategy Know thyself • What is the status of mobile today, is this .5 of strategy or iteration 4.5? What have you learned, where are resources allocated? Business goals • Focus on end goal, enrich and engage can coexist, but should not necessarily do so from the start; • What metrics matter, go beyond downloads to look at active users, cross channel pull through, segmented sales metrics. App design • Four models are most popular in mobile today among winners doing things differently, there will be more; • Novelty of Experience is most important, solve actual – not perceived – user problems © 2012 Altimeter Group
- 27. 27 THANK YOU Chris Silva Industry Analyst, Mobile csilva@altimetergroup.com makemobilework.com Twitter: 802dotchris
- 28. 28 ABOUT US Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.
Notas do Editor
- Image source: http://en.wikipedia.org/wiki/File:Android_robot.svgData source Nielsen, 2011 (http://dk.nielsen.com/site/documents/appconsumerbehaviourpatterns.pdf)DATA SOURCE FOR SECOND BULLET:http://success.adobe.com/en/na/programs/digital-marketing-insights.html?s_cid=%2043341According to data from Adobe, smartphone users spent an AOV (Average Order Value) of $71 when purchasing on their smartphones. This is relative to $111 on a tablet and $96 on a traditional computing device (PC, laptop)
- Image source: AP Images (http://www.businessinsider.com/iphone-4s-lines-2011-10)
- DATA SOURCE: Nielsen pdf Q4, 2011http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDgQFjAD&url=http%3A%2F%2Fdk.nielsen.com%2Fsite%2Fdocuments%2Fappconsumerbehaviourpatterns.pdf&ei=S7PVTvCxOqqhiAKvgry7Cg&usg=AFQjCNF6YH3Gkc7Tm9V3VyqZBEsNSDPsfASource for old graphic: Data source, Nielsen Q4, 2011, http://blog.nielsen.com/nielsenwire/consumer/more-us-consumers-choosing-smartphones-as-apple-closes-the-gap-on-android/
- Image source, MacLife: http://www.maclife.com/article/news/ipad_production_hits_25_million_month
- http://www.comscore.com/Press_Events/Press_Releases/2011/12/Heaviest_Week_in_U.S._Online_Holiday_Shopping_Historyhttp://www.businessinsider.com/online-shopping-jumps-164-pct-on-christmas-day-2011-12
- Sephora dominates mobile. http://www.youtube.com/watch?v=clUABxAAQikhttp://www.brandingbrand.com/services/appshttp://www.mobilecommercedaily.com/2012/01/12/sephora-is-most-competent-in-mobile-among-prestige-brands-studyFull list of features:Stay up-to-date on the latest launches and brandsSee what products Sephora’s staff is obsessed with and whyWatch expert tutorials and product demosScan in-store product barcodes and QR codesAccess to 1m+ ratings and reviewsGet and give advice on FacebookGet reminders to replenish productsFully integrated with Sephora Beauty Accounts (membership perks program) Shop and purchase directly in the app Locate the nearest Sephora via GPSRemember past purchases for easy reference “Try on” products in different colors/ stylesTags: #mobile#retail #cpg#engage#jessica
- http://www.scanlife.com/en/gl-case-studies?view=details&id=30http://mashable.com/2011/03/22/mobile-barcodes-home-depot/The ChallengeThe Home Depot wanted to give customers more dynamic information on all of their products from a variety of different media. It turned to QR Codes as a flexible tool, and needed a centralized code management platform to work across multiple divisions within the organization.The Scanlife SolutionThe Home Depot has deployed hundreds of codes from the platform on media like newspaper circulars, in-store signage, local events, and more. Each of the codes link to relevant content based on the product the customer is scanning with options like video demos, useful tips, and even an option to “buy it now.”Tags:#mobile #Qrcodes#retail #cpg#engage #enrich#multichannel#jessica
- SOURCE:http://itunes.apple.com/us/app/ge-moodcam/id369181839DATE: July 5, 2011Change the mood of a photo with the GE MoodCam™! Take a picture of a room (or any scene!), then watch the mood change as you shift the lighting using the GE Moodometer™. Learn how to create the look at home, and even save a shopping list for a quick, easy way to find the right light bulbs in the lighting aisleTags:#cpg #manufacturing #utility#mobile#thoughtleadership#engage #enrich#jon
- http://www.mobilecommercedaily.com/2010/01/22/overstock-uses-iphone-app-to-increase-mobile-commercehttp://www.internetretailer.com/2011/11/14/one-million-ipad-shoppers-overstockcom-launches-apphttp://www.padgadget.com/2011/11/14/overstock-com%E2%80%99s-o-co-app-now-available-on-the-ipad/When 7% of a retailer’s unique monthly visitors are on iPads, it’s a safe bet it’s time for an iPad app. That’s why Overstock.com Inc., also known as O.co, has today released an iPad app that gives consumers using the mega-popular tablets access to the e-retailer’s complete inventory. With the O.co app, Overstock customers can seek out fantastic deals and with just a couple of finger taps, purchase brand name products at up to 70% off. This successfully improves upon the mobile website, with a clean, dual-column browsing layout featuring large pictures and product ratings.Social networking is one new element that’s present in the O.co app. Users who find a good deal can share it with their friends and family on Facebook and Twitter.Searching for a specific item is a simple task, with filters for top sellers, review ratings, price, and new arrivals. The app takes advantage of multi-touch gestures like pinch-to-zoom, swiping, and infinite scroll. It also provides access to Overstock.com’s customer care team for help with product questions and other information.Each day Overstock.com customers can access a Loft-O lottery game, giving a chance to win special discounts towards purchases.The app enables Overstock.com customers to search, browse and purchase products. It opens with a splash of imagery, five rotating hero shots atop the home screen. A bar on the home screen includes buttons to navigate by all product categories, search all products and sign in to an O.co account.Two key features of the app are “infinite scrolling” and social sharing, says Sam Peterson, senior vice president of marketing at Overstock.com. Infinite scrolling is a term used by tablet site and app developers to describe the feature that enables a shopper to swipe down on the screen and continue to see product after product without the need to refresh the screen. That’s different from e-commerce sites, which present search results divided into pages, requiring a shopper to click to a new page for more results.Another feature, Lott-O, a virtual scratch coupon, is undeniably fun: Each day, users are presented with a full screen of the familiar gray found on scratch-off lottery tickets. Rubbing your finger across the screen rubs the gray off, revealing a discount code underneath. Come back to Lott-O later on the same day and the same code will still be there, with your finger marks still in place.Tags: #retail #ecommerce#mobile #tablet#engage #enrich#jessica
- http://www.mobilemarketer.com/cms/news/content/10656.htmlhttp://www.internetretailer.com/2011/11/09/tasty-promotion-nets-more-420000-qr-code-scanshttp://www.dmnews.com/qr-combo-taco-bell-and-mtvs-vmas/slideshow/509/#2BACKGROUND:Taco Bell teamed up with MTV and mobile barcode developer Scanbuy to help customers “Feed the Beat” in the six weeks leading up to the VMAs on Aug. 28. QR codes printed on VMA-themed packaging, specially designed by Draftfcb, provided access to exclusive sneak-peak preview music and video content on a mobile website. “Taco Bell is a sponsor of the VMA Awards on MTV, so they wanted to reward their customers with exclusive content by engaging directly with the product,” said David Javitch, vice president of marketing at Scanbuy. RESULTS:70,000 is the number of times each week over a six-week period this summer consumers scanned a two-dimensional bar code on the side of a Taco Bell product to get exclusive MTV content. During a six-week period this summer consumers who bought a large drink or meal at Taco Bell scanned a two-dimensional bar code on the items 427,994 times, making the Taco Bell/MTV promotion the biggest single campaign this year for Scanbuy Inc., the company that provided the codes.Notes from Chris’ briefing: Taco bell and MTV promo, code on a soft drink cup, scan code, see choice of videos that are are up for video f the year, click, watch vote. 500k votes in 4 week period. Tag:#mobile#foodbev #media #entertainment#teens#engage#jessica
- Redbox shows mobile coupons work. The 10 Days of Deals campaign was unprecedented, proven in the results:- Over 1.5 million texts generated in 10 Days of Deals campaign- Over 400,00 unique customers participated in 10 Days of Deals- Over 200,000 new redbox customersContributing to business results of:- 34% growth in revenue year-over year (Q2 2011) - 55 million monthly rentals, up to 40 rentals per second May 2011 to presentDigital success of redbox:- Over 4.5 million iPhone app downloads- Tripled the number of Android app downloads in 2Q 2011, for a total of over 2.1 million Android app downloads since the launch in February- More than 3.1 million Facebook fans- Acquired over 3.7 new email customers in 2Q 2011 to result in over 30.5 million email subscribers in total- More than 2.7 million SMS subscribersSource: http://groundswelldiscussion.com/groundswell/awards2011/detail.php?id=693http://www.signalhq.com/customer-solutions/case-studies/redboxhttp://blog.signalhq.com/2011/08/03/redbox-equals-relationships-plus-rentals/Tags:#mobile#entertainment #media #mutlichannel#engage#jessica
- http://www.youtube.com/watch?v=nJVoYsBym88&feature=player_embedded#at=76http://www.huffingtonpost.com/2011/06/27/south-korea-virtual-supermarket_n_885150.htmlRemoved from bubble: Tesco put images of products and QR codes in subways. Customers would scan and purchase these products for same day delivery. “So, Tesco Homeplus created a virtual store in Seoul subway stations in which the displays and merchandise are exactly the same as the stores. Customers scan the desired product with their smartphone and it then appears in their online cart. The products will be delivered to their door ‘right after you get home.’”[1]http://www.adobomagazine.com/cannes/wp-content/uploads/2011/06/Direct-Gold-KR.jpgMobile web stats…http://www.singleboundcreative.com/2011/05/infographic-the-mobile-web/June 27, 2011 (Updated Nov. 16, 2011)#foodbev#retail#mobile#asia#enrich #jaimy