kony-cognizant webinar: finding the silver bullet in retail mobility

Finding the Silver Bullet For Retail Mobility August 16, 2012

Shannon Warner Cognizant [email protected]

The State of Retail Mobility

3 Copyright © 2012 Kony SoluJons, Inc. CONFIDENTIAL 3

What’s cooking?


Mobility is having a profound impact on consumers’ lives

Source: Telenav 2011


Fueled by the smartphone, mobile devices are becoming the screen of choice for customers

Today

7.3 Billion Estimated global population in 2016

– United Nations

10 Billion Estimated number of smartphones and tablets worldwide by 2016

– Cisco

Vs.


In fact, smartphone and tablet adopJon rates surpass that of any other technology in recent human history!


Unprecedented adopJon is forcing retailers to embrace mobility to stay relevant to their customers

Source: RIS / Cognizant Survey, March 2012

What is the impact of the following factors on your consumer mobile strategy?

We asked retailers…


Retailers are embracing mobility iniJaJves with an unaccustomed speed

What op(on best describes your approach to bringing your mobile offerings to market?


We asked retailers…


It is thus no surprise that mobility is already mainstream in retail

Source: Cognizant Research


Retailers have however adopted a sca\er-‐shot approach to which mobile pla^orms they support



Retailers offer a broad range of features…



…Retailer mobile apps have fallen short of customer expectaJons



-‐ 0.5 1.0 1.5 2.0 2.5 3.0

Store’s website

Store’s mobile smartphone app

Store’s tablet

Other Internet searches and websites

Chart Title

Consumables

Specialty

Shoppers like to use digital resources to make purchase decisions, but not mobile and tablet apps

Other Internet searches and websites 1st Store’s website 2nd Print materials 3rd

InformaJon provided on product packaging 4th Television 5th

Shelf signs or interacJve product displays 6th Friends and family 7th Store associates 8th

Social media 9th Store’s mobile smartphone app 10th

Store’s tablet 11th

Rank order of resources used to make purchase decisions for specialty products

Source: Cognizant/RIS 2012 Shopper Study


Retailers are threatened by 3rd party mobile apps as 5% of shoppers use their mobile phone to find product elsewhere.

20%

9%

49%

11%

5%

6%

Leave the store and look for the same product elsewhere

Leave the store and look for the same product during a future visit

Ask an associate to help you locate the right item

Purchase an alternaJve item available in that store

Use your mobile phone to idenJfy the product elsewhere

Check the retailer’s in-‐store kiosk (if available)

We asked shoppers… What do you do when you can't find what you want?



Although help from a live person is most preferred, shoppers are beginning to consider mobile assistance while shopping

-‐

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00 Call customer service #

Go to in-‐store customer service desk

Online chat

Video chat Mobile chat

Mobile text message

Social media page

18-‐33

34-‐45

46-‐64

65 and over

When you need assistance while shopping, how likely are you to use the following customer service op(ons?”

We asked shoppers…



Shoppers want personalized experiences while in-‐store

3.44

3.17

3.15

2.91

2.88

2.76

2.72

2.26

-‐ 1.00 2.00 3.00 4.00 5.00

Special treatment in the store based on loyalty

Offers delivered in a store that are personalized

Acknowledgement of status as a highly valued customer while in the store

Website recommendaJons based on other products you searched for

E-‐mails with personalized messages

Website recommendaJons based on products others have searched for

Personal greeJng in the store

Offers delivered via a mobile phone that are personalized

When shopping for specialty products, how much would each of the following techniques to personalize your shopping experience influence your shopping choices, if available?




…But shoppers are skepJcal about sharing informaJon, including using geo-‐locaJon

2.89

2.69

2.60

2.26

1.86

1.83

1.82

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

InformaJon tracked by loyalty number

Name, address, e-‐mail for website account

E-‐mail collected at point of sale

Phone number collected at point of sale

Have cookies placed on your computer to allow tracking

LocaJons you are at tracked using geo locaJon service on your phone

InformaJon tracked by credit card number

How willing are you to share the following informa(on with stores in order to have a more personalized shopping experience?




The ever evolving and complex mobile ecosystem is a key challenge in developing a compelling mobile offering

What are the primary challenges your company faces to succeed with its customer-‐facing mobile strategy?



Despite challenges, success can be achieved by taking a comprehensive, 360 degree view of mobile

1

Move fast Else your customers and compe((on will leave you behind

2

Establish an enterprise mobile strategy Piecemeal, scaFer-‐shot approaches just don’t work

3

Don’t be afraid to experiment and innovate Avoid a “Me-‐Too’ approach; look for experiences for your unique context

4

Future proof your mobile offerings Invest in processes and technologies that are flexible and scalable

PracJcal Mobility in Retail -‐ Design for Success

Chris Dean Kony SoluJons, Inc. [email protected]


Financials: 6X growth over last 2 years

Employees: From 200 to 950 employees

Markets: MulJ-‐Channel Enterprise ApplicaJon Pla^orm MulJ-‐Channel B2C & B2E Apps MulJ-‐Channel ApplicaJon Management

Ver8cals: Financial Services |Travel | Retail | AutomoJve

Healthcare | UJliJes | TelecommunicaJons Manufacturing | Oil & Gas | Media & Entertainment | TransportaJon

Customers: Over 1 billion end user sessions annually

More than 60 blue-‐chip deployments Deployed in 38 countries

Kony Overview

KonyOne Pla=orm Write Once, Run Everywhere

Kony Apps Feature Complete, Extensible, Configurable

Kony Mobile App Management

2010 2011 2012

2010 2011 2012

Offices: From 2 to 10 offices worldwide

2007 Founded

2008 Launch

2010 Cash Flow PosiJve

2015 $500M Company

2011 4X Topline Growth

2012 275% ACV Growth


Change Once, Change Everywhere Tim

e

Effort Alterna8ve Solu8ons

OS Update

Update Features

New FuncJonality

Add Languages

Add Security

Custom App + Mobile Web 40% – 70% TCO Savings

Mobile Retail Design


Mobile Web vs. NaJve – Industry Avgs

§  More channels = more customers §  Mobile web represents half of all traffic §  NaJve apps together also represent half of

traffic §  Adding any channel permanently increases

visits – some customers will sJll only interact with you in a parJcular channel

§  Conversion rates vary by channel §  iPhone naJve apps 30% more

than mobile web §  Rates likely to dramaJcally change

with short noJce

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Mistakes in Mobile Retail

§  Not solving pain points for the consumer §  Starbucks, for example, was reducing in-‐store POS Jmes, not

maximizing loyalty card adopJon with its app

§  Siloed mobile efforts §  Consumers – loyalty or not – want a ‘joined-‐up’ experience across

channels, and want to interact with you the way they want, not the way you want

§  Under-‐resourced team §  Mobile isn’t going anywhere. ‘Well, let’s try it and if it doesn’t work at

least we tried’ is not a strategy §  TransacJonal or InformaJonal ?

§  Driving consumers to transact is ouen incompaJble design-‐wise with a brand awareness/informaJonal app


Mistakes in Mobile Retail (cont’d)

§  Poor Design §  Apps are important but are currently being designed and deployed

poorly by a many retailers

§  Reasons for regular and ‘sJcky’ engagement are few §  GamificaJon elements missing

§  Loyalty programs are chunky §  Basic, Intermediate, Advanced ‘Jckles’ and rewards

§  Few mobile-‐specific, well integrated campaigns §  Consuming campaigns and offers should be seamless across all digital

channels

§  Disconnected experiences across channels §  Consistent informaJon, experiences and ‘remember me’ lacking. Apps

different device-‐to-‐device


GamificaJon & The Changing face of Apps

How long to reach 1 million users ?

AOL took 9 years

Facebook took 9 months

DrawSomething took 9 days


Design Principles for PersonalizaJon

§  Look-‐and-‐feel – 70/30 rule §  Implement visual appeal

§  Color coding, visual clues, icon usage and branding §  Homogenous design principles §  Keep it simple -‐ Less text, single way to do things, intuiJve navigaJon/flow §  User awareness – Maintain context ; remember me, minimize user entry §  Preferences

§  Let user create customized experience §  Template preferences based on user type – defaults

§  Temporal/Spa8al/User awareness – Date ; Time ; LocaJon ; User ; User type ; User’s process step

§  Local data storage

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Release OpJons and Challenges

29

§  Big Bang – mobilize all or most desktop web features at launch §  Market changing during development §  Complexity risks delays §  Risk releasing nothing

§  Agile – quickly release a ‘table stakes’ mobile version §  IniJal release risks becoming the only release §  Maintenance challenges cannibalize innovaJon §  Device variaJons increase complexity §  Offering could fall behind

§  Wait and See – watch and learn from your compe(tors prior to investment §  “Fast followers” difficult to catch up §  Difficult to leapfrog the compeJJon §  Hard to gain experience §  Make similar mistakes

as early movers §  Lose customers

Kony for Retail


Kony Mobile Retail

§  Complete Secure Retail SoluJon §  Fully FuncJonal, pre-‐built Feature Set §  Highly Brand-‐able §  Social Media IntegraJon §  Configurable and Extensible §  Universal IntegraJon §  InternaJonalizaJon Ready

§  Full Channel Support §  NaJve Mobile Devices §  Mobile Web §  Tablets

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Reach All Your Customers


QuesJons?

§  More informaJon on www.kony.com/resources §  www.kony.com

[email protected]

32

Thank you

kony-cognizant webinar: finding the silver bullet in retail mobility

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