How  can  mobile  be  used  to  enhance  the  point  of  sale?

gene@thecollectivefactory.com

This  research  collabora-on  between  Carat  and  Microso4  sought  to  define  the  

structure  of  consumers’  paths  to  purchase  and  how  different  touchpoints  play  

a  role  in  shaping  decisions  as  to  where  and  what  to  purchase.    19,000  

shoppers  in  17  countries  were  queried  on  their  most  recent  shopping  

occasions  in  four  key  retail  categories:    apparel,  quick  service  restaurants,  

groceries  and  home  electronics.  

A  fi4h  category,  Home  Improvement  Centers,  was  done  in  the  US.

NEW  SHOPPER  JOURNEYS:  

MethodologyPhase  I  :  Inves+ga+ve  Qualita+ve  Research

Shopping  diary(mix  of  paper  &  video)

Individual  depth  interviews

Shop-­‐Alongs

Step  1 Step  2 Step  3

Study Overview

MethodologyPhase  II  :  Global  Quan+ta+ve  research

USA  samples

USA

n=2,680

European  samples

Italy

n=1,118

Germany

n=1,012

Spain

n=1,031

UK

n=1,141

France

n=1,063

Asian  samples

Taiwan

n=1,073

China

n=1,546

Japan

n=1,015

India

n=1065

Hong  Kong

n=1,032

Singapore

n=1034

‘Americas’  samples

Canada

n=1089

Brazil

n=1,023

Mexico

n=1,006

Argen+na*

n=581

Colombia*

n=493

A 20-30 minute online survey amongst shoppers from 17 countriesEach respondent answered questions about two different categories

Study Overview

MethodologyThe  Five  Retail  Ver+cals  Inves+gated

1,039

Home ElectronicsCell Phone

962

Clothes, Shoes& Accessories

1,088

Home Improvement

1,124

Quick Service

Restaurants

1,147

GroceriesPersonal Care

US Sample

Total US Sample: 2,680

Last six monthsLast month

(min $30 spend)Past six months Past month Past week

QualifyingCriteria

(Recency)

Study Overview

§ Discount  coupons  used  more  o\en  § Price  more  important  than  brand/quality

Hierarchy  of  Shoppers’  New  BehaviorsHierarchy  of  ta

c7cs  fo

r  cop

ing  with

 the  recession

More Advance Purchase Research

Seeking Better Value

Using Different Channels

Reduced Volume

Word-of-Mouth

§ More time looking for special promotions § Visiting a number of retailers to find best deal § Reading online forums/ consumer websites

§ Discount stores § More online shopping § More online auctions§ Mobile

§ Fewer visits to retailers

§ Peer reviews - 1:1 and through social media

Old  models  no  longer  adequately  describe  what’s  happening

Awareness

Purchase

ConsideraIon

8

It’s  not  linear.    It’s  a  dynamic  process.

con$nuous  itera$ons

53%*Built  up  List

66%*Refine  List

From Paths to Journeys: The New Shopper Paradigm

‘Post-­‐tailing’‘Retailing’‘Pre-­‐tailing’

Need  State Research PurchasePost  Purchase

WOM  Feedback  Loop

In-­‐storeresearch

35%used mobile in store before making

a new purchase

Adding  Value  Through  Coupons

Manufacturer Retail

versus

It’s easy for retailers to do mobile couponing... Not so easy for

manufacturers

Manufacturer

Coupon  Sherpa

Coupons  Are  Popular  With  Younger  Demo

source: Forrester | North American Technographics Benchmark Survey 2009

Do  you  receive  coupons/promo7ons  AT  LEAST  MONTHLY  on  your  cell  phone/smartphone  or  handheld  wireless  device?

For  What  Products  Do  They  Want  Coupons?

I  would  not  be  interested  in  receiving  discounts  on  my  cell  phone

Restaurants  (e.g.,  McDonald’s,  SUBWAY,  Applebee’s

Drinks  (e.g.,  Coca-­‐Cola,  Starbucks

Household  Products  (e.g.,  dishwashing  liquid,  all-­‐purpose  cleaner)

Personal  care  products  (e.g.,  shampoo)

Music  or  DVDS

Snacks  (e.g.,  candy  bars,  chips)

Fashion/apparel

Events  (e.g.,  concerts,  movies)

Travel/air

Car  Maintenance  and  repairs

0% 18% 35% 53% 70%

11%

15%

18%

18%

21%

27%

14%

23%

23%

30%

56%

8%

9%

11%

12%

12%

12%

13%

14%

17%

23%

70%

US  mobile  Owners US  mobile  owners  ages  18-­‐24

source: Forrester | North American Technographics Benchmark Survey 2009

But  How  Do  Delivery  OpIons  Stack  Up?Discover Collect Hold Match Redeem

Mobile  (SMS)

Mobile  (bluetooth)

Mobile  Web

Mobile  Applica+on

Paper  (FSI)*

Paper  (rebate)

Online  (FSI)*

Online  (rebate)

Email

Loyalty  programs

source: Forrester | North American Technographics Benchmark Survey 2009

If your a retailer there is no trouble: It’s a manufacturer issue

Coupons  -­‐  How  They  Work  -­‐  A  Simplified  Overview

PAIN POINTS

Brandissues

Coupons

Brandreimburses

retailer

Hardware  Issues

2D  Scanner

Web  IntegraIon  Issues

Summary

What’s  A  Mule?

The  Receipt

Mostly  =  

The  Receipt  Mule

Consumer  Flow

Consumer Buys a

XXX

Consumer gets

receipt

Receipt has Dynamically generated Pin Code

Consumer texts back

Pin Code to Short Code

Code Verified and

discount added to

loylaty card

The  End  Dilemma

The  End  Cap  Mule

Converting a static experience into:

POS  IntegraIon  Required

Pin Storage / Redemption

and Campaign Management

Mobile Gateway

PIN’s

Verify PIN & begin 2-way conversation

Dynamic PIN provisioning

The  Loyalty  Card

A  Few  Retailers  To  Pilot  With

Summary

• Gene  Keenan• gene@thecollec+vefactory.com• 415.218.7369