eMarketer Webinar: Cashing In on Mobile Shopping

Presented by:

Noah Elkin

Principal Analyst

#eMwebinar

@noahelkin

F E B R U A R Y 2 3, 2 0 1 2

Cashing In on Mobile Shopping

What Marketers Need to Know About Coupons, Commerce and Payment

Sponsored by:

Agenda

Keeping pace with consumers

Mobile shopping vs. buying

The shopping revolution will be mobilized

Mobile coupons: Paving the way to the last mile

The missing link: Mobile payments

Keeping Pace with Consumers

Mobile is transforming every stage of the purchase funnel

Smart device adoption is driving the transformation

Twitter: #eMwebinar

Growing demand for smartphones and tablets is a global phenomenon

Mobile and web are becoming more synonymous…

…as internet access from mobile devices expands

High daily web access among smartphone users is helping push mobile shopping into the mainstream

When it comes to shopping, tablets are more of a desktop substitute than a smartphone complement

Bottom line: Consumers view tablets as the better tool for researching product and pricing information prior to a store visit. Retailers report similar shopping behavior for tablets and PCs.

Browsers beat apps when it comes to mobile shopping via smartphones

Most major retailers have some mobile strategy.

- 91% of those surveyed by Shop.org and Forrester in May 2011 said they had a mobile strategy either in place or in development, up from 74% in 2010.

But development exists along a continuum.

- 29% had a mature strategy in the process of being refined.

- 28% were implementing or just starting to work on a mobile strategy.

- 34% said they were in the early stages of developing a strategy.

Retailers are working to meet the m-commerce challenge

Twitter: #eMwebinar

M-commerce development among retailers has room for growth

Many retailers’ mobile initiatives remain in the planning stage

Retailers’ mobile presence varies widely by category…

…as do retailers’ m-commerce capabilities

Mobile Shopping vs. Buying

Mobile is more about shopping than buying…for now

Mobile buying will steadily increase, but purchase rates will still lag the desktop by a large margin

Twitter: #eMwebinar

Mobile continues to develop as a vital retail sales channel

In-store shopping via smartphone is a relevant trend, but don’t forget a lot of the actual buying takes place at home

Regardless of where mobile buying occurs,

m-commerce dollars will start to add up

Low-involvement, low-cost items predominate among mobile buyers

Gilt Groupe rides the flash sale wave using a device-agnostic strategy

“A lot of companies are trying to figure out whether mobile revenue is incremental or if it cannibalizes their desktop revenue. I find that it doesn’t matter in the end. Our customers are demanding mobile options and they’re showing it with the revenue numbers. They

want to shop wherever they are. They have a smartphone in their pocket all the time, so we need to be there. Otherwise, they’re going to go somewhere else.”

—Yon FeldmanVice President, Mobile & Global Engineering

Gilt Groupe

The Shopping Revolution Will Be Mobilized

Mobile changes the path to purchase from a set of sequential activities…

Twitter: #eMwebinar

…to activities performed concurrently, with a premium on context and location

Gathering information takes precedence for mobile shoppers

Use information to help drive in-market consumers to stores

Focus on location to the extent that it enables commerce, not status

Remember that in-store shoppers have heightened information needs…

…making the data retailers provide higher value and more actionable

Be prepared for increased competition from better-informed in-store shoppers and more aggressive web retailers

Empowering sales associates is one way to meet in-store shopping challenges

Mobile Coupons: Paving the Way to the Last Mile

Small coupon discounts add up tobig money

Mobile coupons usage is modest but growing rapidly, driven by smartphone owners…

…particularly those smartphone owners shopping in-store

Think about your target audience: Smart device users prefer to receive coupons via email

But SMS is the preferred way to receive coupons among mobile users overall

Twitter: #eMwebinar

Don’t underestimate the engagement potential and speed to market of SMS

“Text messaging is about building a push relationship with the customer where you can send them back-and-forth

messaging over and over again.”—David Wachs, President, Cellit

“The advantage with mobile is speed. We can send out a text alert with a mobile coupon and be

in-market very, very quickly.”—Chris Duncan, Vice President of Marketing, OfficeMax

QR codes can also be an effective trigger for mobile coupons

Deploying QR codes can take advantage of customers’ location and context

“We are using QR codes on shelf tags to alert customers about available coupon offers. Customers scan the code with their web-enabled smartphones and download digital offers right to their Price Plus club card. QR technology allows us to engage our customers not only in the

mobile space but at the store level as well.”—Cheryl Williams

Vice President of MarketingWakefern Food Corp./ShopRite

Consider including coupons in local search listings to better reach in-store mobile shoppers

Tap into the power of location, but tread carefully around privacy and security concerns

The Missing Link: Mobile Payments

Forecasts agree on mobile payments growth but not on how much money is on the table

$86.1B (2011)

$556B (2016)

$246B (2011)

$670B (2015)

Note: figures above are worldwide

Twitter: #eMwebinar

Smartphone and tablet users have a good comfort level with mobile payments

Frequent usage of mobile payments is common among those already sold on the idea

But for most consumers, the value proposition of mobile wallet services is not yet clear

Those most interested in mobile wallet technology fit the typical early adopter profile: young, male and upper-income

Privacy is a major concern all over the world when it comes to mobile payments

Adoption ultimately hinges on benefits, convenience and user experience

“Our customers told us they want a faster and easier way to pay, and Starbucks mobile payment apps are the fastest way

to pay. We deployed this program independent of carriers, handset manufacturers or payment companies so as many

customers as possible can download and use the app.”—Adam Brotman, VP and GM, Digital Ventures, Starbucks

“The best way to get anyone to change their behavior is by making them feel good. Is paying with your cell phone ever going to make you feel like ‘This coffee is better because of

the way I paid for it’? Probably not. We see the mobile payment opportunity as how do we enable people to find their friends, see what they’re doing, share purchases…and things

of that nature.” —Ben Milne, CEO, Dwolla

Be prepared: The last mile is always the longest, hardest…and most expensive

Kony Worldwide

Headquarters7380 W. Sand Lake RdSuite. 390Orlando, FL 32819Tel: 1.321.293-5669 (KONY) Toll free: 1.800.323.9630Fax: 1.650.645.2201

San Mateo

Toronto

New York

Hyderabad

Singapore

BangaloreAtlantaParis

Cologne

www.kony.com

Complete Secure Retail Solution Fully Functional, pre-built Feature Set

Highly Brand-able

Social Media Integration

Configurable and Extensible

Integrated Push Notification of Offers

Full Channel Support Native Mobile Devices

Mobile Web

Tablets

Kony Mobile Retail

Reach All Your Customers

Q&A Session

Cashing In on Mobile Shopping

eMarketer Webinar: Cashing In on Mobile Shopping

Technology

Transcript of eMarketer Webinar: Cashing In on Mobile Shopping

Cashing In On Obstruction

EMarketer Native Advertising Roundup

Miller Square Shopping Center - CREC · Miller Square Shopping Center 13780 SW 56th Street, Miami, Florida 33175 ... 25 The Check Cashing Store 30 GNC 35 Renaissance Hair Salon 40

CASHING IN ON CYBERCRIME

Cashing in on Energy Efficiency

Emarketer Proxxima 2014

eMarketer...eMarketer Source: eMarketer, Oct. 2018 Digital Display Ad spending in select countries, Programmatic* vs. Nonprogrammatic, 2019 see eee billions Sli.32 $7.30 US=S68.62

Cashing in on your craft

Cashing in on convergence

eMarketer Breakfast - 9.28.2011

Emarketer 2013 Online Holiday Shopping Preview

Bank, Check Cashing Lesson

Cashing In On Lead Conversion

Cashing in on Captives

Cashing in on Tar Sands

The Guide to Cashing Savings Bonds - TreasuryDirect€¢ The Guide to Cashing Savings Bonds • The Guide to Cashing Savings ... Verifying the customer’s identity; 4. ... someone

eMarketer Webinar: Lessons from Holiday Shopping 2014—What You Need to Know for 2015

EMarketer CMO Interview Roundup

eMarketer multichannel_marketing—navigating_the_increasingly_complex_customer_journey

Cashing in on Change