hugh ritzema carter - sevenval e commerceexpo presentation

Digital commerce in a multi-device world Challenges & Success Factors of the ‘New’ Mobile Commerce

London, 02.10.12

2

Agenda

1. Intro

2. Consumer Behaviour

a. Smartphones

b. Tablets

c. Games Consoles

d. Smart TV

3. How consumers are using each device for retail

4. Challenges & Opportunities presented to retailers by the

multi-device world

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Intro Sevenval – A YOC Group Company

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We are Mobile Experts. We’ve got the Technology. We develop your Solutions.

• Mobile technology and

solution provider since

1999

• More than 130

employees in Europe’s

hotspots London, Berlin,

Cologne and Vienna

• Fortune Global 500

companies trust in our

technological expertise

• Implementation of more

than 500 mobile projects

(mobile and multichannel

websites, native and hybrid

apps)

• Creation of mobile projects

from the idea beyond the

launch

• Award-winning mobile

solutions for several clients

• Development of own software

product Sevenval FIT

Technology since 1999

• Aggregation and adaption of

content / services and delivery

on all browser-based

channels

• Long-time experience in

product development with

own software product teams

Expertise Solutions & Services FIT Technology

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Some of our clients

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Customer Journey

Awareness

Transaction

Advocate

Intrigue Attract

Engage Convert

Relationship

Consider

Access to pricing, product

info & reviews anywhere

QR codes linking

ATL to mobile site/ apps

Mobile coupons

within mobile site/

apps

Store locator on

mobile site/ apps

Purchase on mobile

(mCommerce)

Packaging QR codes

linking to mobile

site/ apps, adverts, info

Events, extra content,

competitions via mobile

Newsletter &

latest product

catalogue

on mobile site/

apps

Use social media

on mobile to ‘like’

& recommend

Mobile Media

Add products to

mobile basket or

wishlist

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Consumer Behaviour How internet-capable devices change consumer behaviour

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The Web

comScore 2012

The typical EU consumer spends the equivalent of

1 day (25.9 hours) per month online

Out of 397 million Europeans

3 in 4 visit a retail site

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The Web

THIS IS NOT THE WEB

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The Web

THIS IS NOT THE WEB EITHER

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The Web

THIS IS THE WEB

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The Web

comScore 2012

% of website traffic originated from non-computer devices such as Mobiles & Tablets

1.80%

2.20%

3.00%

5.00%

5.10%

5.60%

6.80%

7.00%

7.50%

Turkey

Poland

Portugal

France

Belgium

Italy

Finland

Germany

Denmark

7.20%

9.00%

9.20%

9.30%

9.70%

10.00%

10.40%

11.50%

16.40%

Austria

Netherlands

Sweden

Switzerland

Spain

Norway

Russia

Ireland

UK

% of websites traffic originated from non-computer devices such as Smartphones & Tablets

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In 2011, 28% of smartphone users in the UK

purchased a product on their phone

Conversion rates on smartphones are 37% lower than on PC

Smartphones

IBM 2012, Adobe 2012

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Furthermore, smartphones are heavily used as a research tool

IBM states that mobile devices shopping

has increased by 138% (2011/2012)

Smartphones

IBM 2012, Adobe 2012

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Smartphones

comScore 2012, IBM 2012, Adobe 2012, Ipsos 2011

This number is bound to increase dramatically thanks to an

increase in optimized mCommerce experiences on offer

IPSOS found out that 51% of customers

are more likely to purchase from retailers

that have a mobile-optimised website

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• 63% state it has changed the way they gather information

• 75% say mobile search makes their life easier

• 32% say they use mobile search more than desktop search

• 49% of mobile searchers made a mobile purchase

Smartphones

Ipsos 2011

So how has the smartphone changed customer’s shopping behaviour?

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Smartphones

10.00%

10.00%

12.00%

13.00%

14.00%

17.00%

Used deal-a-day

Checked product availability

Found coupons or deals

Researched product features

Compared product prices

Found store location

2.00%

4.00%

5.00%

7.00%

10.00%

11.00%

16.00%

22.00%

Checked availability

Found coupons or deals

Researched features

Compared prices

Sent picture to someone

Scanned a barcode

Texted/ called someone

Took picture

On The Go Inside Retail Store

Below is a graph of customer’s shopping activities

on the go in comparison to activities within a retail store

comScore 2012

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Tablets

comScore 2012, Adobe 2012, eMarketer 2011

Apple iPad 2

BlackBerry Playbook

2011 saw the release of numerous tablets across multiple platforms

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Tablets


Tablets don’t replace PC’s or smartphones, but rather complement

Currently 21-50% of retailer’s non desktop traffic is coming from tablets

VS.

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Tablets


Conversion rates on tablet are 20% higher than on desktop PCs

41% of consumers who planned to buy an iPad cited

shopping as their primary reason

Possible reasons:

• Mobility in comparison to desktops and laptops

• Ability to relax on the couch and watch TV while browsing the web

VS.

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Tablets


But it’s worth pointing out that tablet users have very high expectations

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Tablets


• Expect fast online experience similar or better to than on their desktop

• Expect high quality site

• After a poor experience on a tablet 35% of users are less likely to visit

the site on any platform

• 33% are even less likely to purchase from that company all together

after a poor experience on their tablet

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Tablets


Common problems experienced:

• Slow loading times (66%)

• Site crashes (44%)

• Problems with the site

functions (42 %)

• Issues with the site format

(40%)

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Multi-Device World

Ipsos & Google 2012

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Multi-Device World

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Multi-Device World

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Multi-Device World

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Game Consoles

Edit title of presentation

Microsoft has introduced Internet Explore for Xbox Kinect

• Users have full voice control over the browser on the Xbox 360

• Microsoft Smart Glass enables users to scroll around pages, click links,

pinch and zoom

• Users smartphones or tablets function as the remote to browse the web

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Smart TV


”People are buying smart TVs but they want to be able to go the next step.

They want to be able to seamlessly search through Google for any

information that they want to find and they want to interact with it like they

are used to on their tablets or phones. They want to take things to the next

level.”

Ben Law, Marketing Manager Sony UK

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Challenges & Opportunities

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User Experience

Think Multi-Channel

• Add mobile touchpoints

• Incorporate your mobile activities into an integrated digital strategy

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User Experience

Be where your customers are

• Optimise journeys on all devices, operating systems & browsers

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User Experience

Consider, Collaborate & Integrate

• Social Media, Product Reviews & Price Comparison Sites are here to stay

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Fragmentation

Nielson 2012

Android

iOS

Symbian

BBOS

Windows

Other

OS breakdown UK

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Fragmentation

Nielson 2012

iOS & Android Versions UK

iOS 5.x

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Fragmentation

iOS updates

• Within 2 weeks, 62% of the market have moved to the new iOS version

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

All Versions

5.1.0

5.0.1

5.0.0

4.x

3.x

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Technology

Responsive Web Design

• A requirement not a solution

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Technology

39

Technology

HTML 5 standards are incomplete

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Technology

"There's rampant technology fragmentation across mobile

browsers, so developers don't know which parts of

HTML5 they can use”

“HTML5 is promoted as a single standard, but it comes in

different versions for every mobile device”

“Issues such as hardware acceleration and digital rights

management are implemented inconsistently. That makes

it hard for developers to write software that works on

many different phone platforms, and to reach a wide

audience”

Facebook CTO Bret Taylor, World Mobile Congress 2012

HTML 5

• Great, but not a silver bullet

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Technology

Use a framework which guarantees full compatibility with every device,

OS version & browser...

• Implement mobile technology that works with your existing infrastructure

Existing Source

Backend

Frontend

FIT Platform

Site

Editor

FIT

Application

SOAP, XML, RSS JSON, …

HTML, CSS, Java

Script, Images,…

FITML

FITML

Processor

+

Device

Database

FITML

42

Technology Placeholder Subtitle

Payment

• Collaborate with trusted payment providers

• Reduce the number of steps to complete a purchase

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Technology


Future Proofing

Ensure that your mobile technology partner:

• offers a solution that works with your new and existing sources

• offers a solution that works on all devices, operating systems and

browsers

• has the ability to move development in-house

• Provides external support and advice if and when needed

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Customer Journey

Awareness

Transaction

Advocate

Intrigue Attract

Engage Convert

Relationship

Consider

Access to pricing, product

info & reviews anywhere

QR codes linking

ATL to mobile site/ apps

Mobile coupons

within mobile site/

apps

Store locator on

mobile site/ apps

Purchase on mobile

(mCommerce)

Packaging QR codes

linking to mobile

site/ apps, adverts, info

Events, extra content,

competitions via mobile

Newsletter &

latest product

catalogue

on mobile site/

apps

Use social media

on mobile to ‘like’

& recommend

Mobile Media

Add products to

mobile basket or

wishlist

UK Commercial Director

T: +44 207 199 0119

M: +44 7870 600 282

@[email protected]

Hugh Ritzema-Carter

Thank You

hugh ritzema carter - sevenval e commerceexpo presentation

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