mobile: location based shopper - patrick moorhead
DESCRIPTION
Changes in consumers and the retail landscape have completely transformed the shopping experience. Technology, social commerce, and especially mobile, are at the center of this change, directly impacting how consumers interact with brands both online and offline. Les comportements changeants des consommateurs et du commerce de détail ont complètement transformé l’expérience d’achat. La technologie, les réseaux sociaux et plus particulièrement les téléphones mobiles sont au cœur de ce changement car ils influencent grandement la façon dont les gens interagissent avec la marque et ce, tant en personne qu’en ligne.TRANSCRIPT
MOBILELBS – Location Based Shopper
6.5secondsthatmatterWhat’s Driving The Mobile/Shopper Alignment? Mobile Dominance Addiction Expanding Transaction Barriers To Entry
Mobile is the #firstscreen
Smartphone Growth
“There are 3 times as many smartphones being activated every minute than there are
babies being born.”
- Hans Vestberg, CEO of Ericsson (March 23, 2011)
(Source: Google - Think Quarterly)
Global Smartphone Penetration
Canada Mobile Penetration
Canada Smartphones
Smartphones In Canada
PC vs. Mobile
(Source: Morgan Stanley Research)
Mobile Computing
(Source: Think Mobile w/ Google))
Time Spent
Mobile Data Explosion
One Exabyte – 1BB Gigs, or 31.25 MM iPhone 4S worth of data.
So by 2016, projected mobile data traffic will equal the amount of storage of 312.5MM iPhone 4S’ – per month.
First Screen, and Second…
> Our job is to influence decisions
> Instinct more important than rational and emotional
> Building bridges to leaders in fields of neuroscience and behavioral economics at Stanford, University of Chicago and Columbia University
Institute of Decision Making
Addiction Symptoms?
The average consumer uses their mobile phone to check weather information 279% more times a month than a PC
3.9x per month 10.9x per month
Source: Nielsen Online, Nielsen Mobile March 2010
Easy is Addictive
Samsung Telecommunications America conducted a survey from Sept. 21-27 2009 in which they polled 300 people in eight markets across the country:Market Polled: Would give up sex for one year over cell
phone:
Atlanta 33%
Boston 31%
Los Angeles 31%
Denver 29%
Washington D.C. 27%
New York 27%
Chicago 26%
Philadelphia 25%
Can’t Live Without It…
Connection is Addictive
The American consumer is more connected and has more instant access to people and information today than any time in history. Losing that access creates disconnect anxiety.
68% of Americans exhibit significantly elevated or occasional
above average levels of anxiety when unable to use their cell phones
or the Internet.*
*Age of Disconnection Anxiety Report, Solutions Research Group March 2008
The Mobile Shopper
“Consumers are using their mobile device more and more to enhance their shopping experience. As we
move forward, consumers are going to be demanding more and more out of their cell phone to really enhance
their lives.”
- Antonia Banuelos - Advertising, IKEA
(Source: From Armed to Charmed)
Action Taken After Search
(Source: Think Mobile w/ Google)
Ever Made A Purchase Decision From Your Smartphone?
(Source: Think Mobile w/ Google)(Source: Think Mobile w/ Google)
Source: Google/Ipsos OTX Mobile Research, November 2010.
Smartphone Use While Shopping
Consumer Behavior
(Source: Wall Street Journal 12.15.2010)
A 10-country study by management consultant
Accenture found that 73% of mobile-powered shoppers
preferred peering into their phones for basic assistance
over talking to a retail clerk.
The Porous Store
Aisle Store Beyond
Aisle
In the aisle, mobile is about connecting with products.
• Search• More information• Price comparison• Consumer reviews• Deals and offers
Store
At the store level, mobile is more about where, when, and why.
• Retailer relationship• Flexible offers• Loyalty• Convenience• Badge & Status
Beyond
Beyond the store, mobile offers unique ways to connect and drive visits and curiosity.
• Alerts & CRM• Loyalty• Advertising• Search
Location.Location. Location.
We’re addicted to now.
Humans are pretty good at long range planning, but when it comes closer to now, we become increasingly irrational in decision making. The phone is an easy solution, converting me into “the blue dot” thus organizing the digital world around me, instantly.
We call it #MeHereNow
Like a Pigeon.
Wall Street Journal – How Future Self Impacts Saving
95%Of Smartphone users actively use
local search.
88% Take Action Within The Same Day.
(Source: Think Mobile w/ Google)
MeHereNow.
Quick Decision – Instant Delivery
(Source: iconoculture)
Groupon Now
$100 now or $200 in two weeks?
We Love Surprises.
Surprises are three times more motivating to humans than expected rewards, and have a much more significant impact on behavior change.
Just ask the kid with the crayons.
Surprise!
Surprises Work.ShopAlerts –
• 52% Lift in purchase intent
• 54% lift in repeat store visits
• 50% lift in search for more information
• 15% lift in more info search on device
• 22% conversion to purchase
• 78% overall consumer satisfaction with receiving offers Your Brand
We’re crazy about missions.
Coffee Bay noticed a 78% redemption rate on their promotional punch cards when they handed out cards with “two free” punches started on them, versus un-punched.
Mobile phone is the ultimate mission device.
Foursquare = Missions
Foursquare is all about missions – big and small – and more importantly, showing off that you’ve completed them.
20MM users a week agree – missions on mobile are awesome.
NFC Growth
“Wireless Mobile Payments to Reach 85% of Point-Of-Sale (POS) Terminals by 2016”
(ABI Research)
Mobile Payment = Growth
Mobile Shopper Spectrum
Consumers & Products
Merchants Carriers & Banks
Wallet Players
Near Field (NFC) & Over The Air (OTA)
NFC – • Secure
Credentials• Swipe pay• Hardware layer• Device to
device• Support of
several apps at once
OTA – • Secured by NFC
element• Works over wifi,
3G etc…• Broader range
of interactions• Enable SSL like
behaviors
Square
Apple – Footloose POS
Mobile Email Growth
“57% of global internet users were more likely to visit a store to buy a particular
product after getting an email marketing message.”
(Source: iContact)
• Event/Promotion awareness• Triggered messages
• sign-up• point-of-sale• mobile device check-in• birthday
• Transactional messages• in-store pick-up notification• paperless invoicing
Email Supports the Shopper Experience
Email is consumed while on the go…
• Nearly 20% of Email communications are read on a mobile device
• Mobile Email usage peaks during the weekend (Saturday)
• Success of Email messaging remains sending the right message at the right time
IKEAEmail Is Going Mobile
(Source: MediaPost)
Best Buy
In-store action
Barriers of Entry
User Experience
84%have conducted a mobile
transaction via smartphone or other device in the past 12
months…have experienced problems.
(Source: Harris Interactive)
User Experience
Security
Security
MOBILE IS SHOPPER MARKETING’S BEST FRIEND.
READY?
Thank you!
patrick j. moorheadSVP – Global Managing DirectorMobile / Shopper MarketingTwitter: @chimediaguy @draftfcb