Mobile SHOPPER MARKETING

Venky Shankar, Suresh Ramanathan, Mirella Kleijnen, Ross Rizley, Shawn Morrissey, and Steven Holland

Agenda

• What is mobile shopper marketing?• The influence of mobile in shopping

cycle• Top issues in mobile shopping• Organizing framework/Approach

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What is Shopper Marketing?“Shopper marketing describes the planning and execution of all marketing activities that influence a shopper alongand beyondthe path-to-purchase, from shopping trigger to purchase, consumption, repurchase, and recommendation stages” (Shankar 2014)

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The Shopping Cycle

© 2010 Venkatesh Shankar. All rights reserved. 4

Evaluation

Motivation

SearchCategory/Brand/

Item/Channel Decision

Store Choice

Store Navigation

Purchase

Repurchase Consideration

Scope of Mobile

• Connected device, in-motion, converged channel/device

• Friction-reducing medium • Allowing CRM, voice of customer, product set• Part of SMACIT• Doing things, making decisions on the move

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Scope of Mobile

• Contextual: Location, Time, Weather• Emotional connect• Browser independence• Shopper convenience-predictability• Problem solving and solution-centric• Goal fulfillment (utilitarian/hedonic)

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Areas with Most Mobile Influence

• Data proliferation• Visualization tool • Sustainable competitive advantage• More knowledge about shopper• Repeat buying vs. first-time buying• Enhancing experience• Feedback mechanism• Realtime emotional solver

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Mobile Influence

• Leverage tactical information• Predict behavior• Be an intelligent agent• Replenish products• Customize offers when permission is granted• Enable Cross-category experience

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Mobile Influence

• B2B2C—partnering, using API (Uber, Amazon, 7 Eleven)

• Distribution + Shopping centers• Disrupt shopping practice• Amazon lockers• Identify shopping abandonment and fix it• Data capturing

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Top Issues

• Assortment across channels• Realtime/Dynamic pricing• Attribution• Digital yield/ROI • Conversion metric• Engagement• App overload (App within App)• Associates’ role in leveraging mobile influence

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Top Issues

• Influence employee journey (Well-armed shopper)– Leverage voice of the associate (VOA)– WIFM orientation of the associates– Employee gamification

• Is mobile making shopper deal prone?• Are retailers fulfillment arm of Google?• How much does shopper want firm to know

about her?11

Top Issues

• How are you adapting to the changing environment (mobile, shopper needs)

• Changing the urgency of change• How to target and personalize in a relevant

and meaningful way---offer—context & timing• Price of asking customer the information she

wants to share• Dynamic (time, location, weather)

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Top Issues

• Value of data• Intelligent recommendation systems• Leverage volume, velocity, variety, veracity• Leverage big data—value extraction, capability• Using data for anticipatory solution (voluntary

information, past patterns)• Making offers relevant/valuable• Modeling—what to be done with the data

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Top Issues

• Quickly learn and adapt• Keep up with the pace of device changes• Deliver a rich experience in a device-agnostic

world• Security in a networked world• Mobile chips and transmission• Network effect (link to AHA, Jenny Craig)• How to instant gratify a fully instrumented

shopper14

Top Issues

• Help create the dream concierge• Build trust through B2B partnership• Enhance execution capability (Amazon locker,

Lids/Macy’s NFL merchandise, Sunglass hut)• Data ownership in partner initiative• Virtual currency (Coke MyCokePlus, China’s

QQ)

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Top Issues

• Mobile payment• US/Europe/International differences• Allocation issues• Intelligent avatar/Dream concierge—

knowledge based system/expert system

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Other Research Issues

• Role of mobile to activate, dynamically trigger change to multiple goals

• Mobile’s role in shopper engagement• Shopper-created offerings/experiences• Enable serendipitous discovery of purchase• Mobile device design (form factor, responsive

design) affecting path to purchase

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During

ConsiderationChoice

(Brand/Cat./Channel)Experience

After

Post-purchase sentiment

Repurchase consideration

Advocacy/WOMRecommendation

Before

MotivationSearch

Discovery

Organizing Framework

MobileDeviceMediumTechnologyActorUsage/TouchExposure, EngagementEmotionLocation/Time/ContextRole of Manufacturer/Service Provider

Acquisition/RetentionStory TellingGeofencing/BeaconSearch/BundlingDisplay/FunctionalConversion/DisruptionData Capture, Analysis, Execution of Insights

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Organizing Framework

Thank You !

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