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© RapidValue Solutions
Retail Mobility Usage Statistics
Date: 14th October 2014
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Retail Mobile
Applications
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A Snapshot of Retail Mobile Applications
A snapshot showing the
areas of retail where
mobile apps are used.
(Source: TCS)
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Mobile Sites are the topmost
priority for retailers with 90.9%
stating they are looking to invest
in this area.
Retailer Investment Plans
Source: Computerweekly
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Why Retailers are Investing in Mobile Apps
1. Coupon sites get 88% of their traffic from mobile devices. Source ComScore
2. When consumers visit online retail sites like Amazon, eBay and Etsy on mobile devices, 80% of the time
it’s through an app. Source ComScore
3. Mobile commerce will generate $34.2 billion by the end of 2014, up from $21 billion in 2012. Source
ComScore
4. Mobile payments will amount to $90 billion in the coming years. Source Forrester Research
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Current Status of Technologies in the Retail Business
Mobile payments is
a technology that is
currently in focus
with 68.8% retailers
looking to invest in it
in the near future.
Source: Computerweekly
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Current and Future Functions of Customer Facing Mobile Apps
Source: emarketer
83%
79%
74%
69%
67%
49%
43%
87%
82%
81%
65%
73%
62%
65%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Customer communications
Customer Service/support
Product communications / brochures
Facilitate transactions (purchase order/ account lookup)
Brand engagement
Event support
Annual reports/announcements
Current Future
A survey conducted by Forbes Insights and Adobe found that most companies were using customer-facing apps
for the below reasons. The most common use of mobile apps was to communicate with customers, named by 83%
of respondents.
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Mobile Trends
in Retail
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Trend 1 : In-Store Location Awareness
Source: RetailTouchpoints
Thanks to Bluetooth Low Energy (BLE), a technology that lets Bluetooth 4.0 devices such as PayPal Beacon,
RapidValue rBeacon, and iBeacon communicate with smartphones, retailers will be able to send tailored notifications
to each shopper’s device, depending on where they are in the store.
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Trend 2 : Brand Experiences as Apps
Source: RetailTouchpoints
Apps have started becoming part of the user’s daily life. Successful retail apps create a daily experience that will
reinforce a brand’s core values to current and potential customers.
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Trend 3 : Creating Loyalty with Rewards
Source: RetailTouchpoints
Popular mobile apps have features that allow customers to earn and redeem loyalty rewards through their phones or at
physical locations. Phones are being launched with preloaded retail apps.
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Trend 4: Context Awareness
Source: RetailTouchpoints
A lot of context marketing is being done through mobile apps. Retailers can leverage customer locations and local
information to deliver automated contextual messages to customer’s phones.
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Trend 5: In-Store innovations
Source: RetailTouchpoints
Retailers have implemented mobile devices directly into the in-store shopping experience. From personal check-outs to
in-store personalized marketing mobile technology is set to revolutionize shopping experience.
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ROI
from Retail Apps
(Case Studies)
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Case Study 1: BMW
BMW increased conversion by 30% for customized snow tires by sending images, video, sound files and text
messages for customized snow tire offers.
Source: themobileretailblog
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Case Study 2: Caritas Home care
Boston-based home healthcare agency used mobile health devices to enhance communications and data collection
with its 150 mobile clinicians. Caritas documented how the mobile devices were able to save 19,200 hours or 98
hours per clinicians per year. Although Caritas didn’t release salaries of clinicians, if we estimated $50/hour, which
would be conservative, Caritas saved $960,000. If the devices were $100 each for 150 clinicians at $15,000, which
would also be conservative, the ROI would be 64-to-1.
Source: themobileretailblog
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Case Study 3: Dunkin Donuts
Dunkin Donuts increased store traffic by 21% using SMS campaign offering mobile coupons.
Source: themobileretailblog
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Case Study 4: Harley-Davidson
Wanted to maintain visibility with current customers and add new customers and revenue through a holiday
promotion. They sold HD related merchandise through a Route 66’s mobile club. Communications of the 12 Days of
Christmas campaign were promoted through a mobile social media campaign. Sales increased 250% on helmets;
16% on leather jackets and there were significant increases in holiday dealer traffic which was also an objective.
Source: themobileretailblog
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Case Study 5: McDonalds
McDonald’s designed a ‘restaurant finder’ app to enable consumers to find a late-night McDonald’s (open post 11pm).
The app was downloaded 1,300,000 times and delivered an ROI of 2:1..
Source: themobileretailblog
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Case Study 6: Petco
At Petco Mobile coupon redemption outnumber online coupon redemption by 5 to 1.
Source: themobileretailblog
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Case Study 7: Pizza Hut
Pizza hut created a mobile optimized website. By the end of the first week after going live, the site accounted for 10%
of all online orders increasing at a rate 60% each week..
Source: themobileretailblog
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The Next Big
Technologies
in Retail
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A look at Augmented Reality
• 30% mobile subscribers will use AR at least once in a week
• 864 million smartphones will have AR technology enabled in them by the end of 2014.
• 2.5 billion mobile AR apps are going to be downloaded by 2017
• $600 billion expected revenue generated from AR by 2016
Source: momentagroup
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Internet of Things
• IoT world is growing at a breathtaking pace – from 2 billion objects in 2006 to 15 billion in 2016 to a projected 200
billion by 2020. (Source: Intel)
• 10% of all IOT investments are made by Retailers (Source: IDC retail insights)
• IoT product and service suppliers will generate incremental revenue of more than $300 billion in 2020.
(Source: Gartner)
Source: momentagroup
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Omnichannel Retailing – Why it is taking off?
• 71% – Amount of consumers who cited the ability to view inventory information for in-store products as important
or very important.
• 50% – Amount of consumers who expect to buy online and pick up in-store.
• 39% – Amount of consumers who are unlikely or very unlikely to visit a retailer’s store if the online store does not
provide physical store inventory information.
• $1.8 trillion – The amount of online and web-influenced retail sales that Forrester expects by 2017, up from $1.3
trillion in 2013.
• 73% – Amount of consumers who stated that they are likely or very likely to visit a local store if the retailer
provides in-store product availability information online, compared with 36% of customers who would visit a store
if no inventory information was available online.
• 25% – Amount of consumers who said that they use store pickup so they can collect their orders on the day they
purchase them (thus avoiding the wait for shipping).
• 10% – Amount of consumers who simply find it more convenient to pick up from a store than have items shipped
to their home.
• 56% – Amount of consumers who have used their mobile device to research products at home with 38% who
have used their mobile device to check inventory availability while on their way to a store and 34% who have used
their mobile device to research products while in a store.
Source: business2community
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Omnichannel Retailing – Why it is taking off? (Contd.)
• 45% – Amount of consumers who expect sales associates to be knowledgeable about online-only products.
• 69% – Amount of consumers who expect that store associates be armed with a mobile device — in order to
perform simple and immediate tasks such as looking up product information and checking inventory.
• 27% – Amount of consumers who would be very likely to leave and visit another retailer’s store if a product is out
of stock with 21% who would buy online from a different retailer and 21% who would simply hold off buying the
product.
• 45% – Amount of consumers who would take up an in-store associate’s offer to ship an out of stock product to the
consumer’s home for free.
• 93% – Amount of surveyed retailers who cited that enabling ship-from-store had resulted in a positive or
significantly positive uplift in online revenue.
• 77% – Amount of surveyed retailers who cited that enabling ship-from-store had reduced or significantly reduced
their fulfillment costs.
• 88% – Amount of surveyed retailers who cited that enabling ship-from-store had improved or significantly
improved their customer satisfaction metrics.
Source: business2community
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Thank You
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About RapidValue
RapidValue is a leading provider of end-to-end mobility solutions to enterprises worldwide. Armed with a large team of experts in mobility consulting and application development, along with experience delivering global projects, we offer a range of mobility services across industry verticals. RapidValue delivers its services to the world’s top brands and Fortune 1000 companies, and has o�ces in the United States and India.
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