DELIVERING HIGH-PERFORMANCE RETAIL APPS

A case study with House of Fraser

Antonio TellaMobile Business Development Manager

Michael LangguthCo-Founder

AGENDA

1.  Introduction to app commerce

2.  House of Fraser’s app journey

3.  Integrating your retail app into Demandware

4.  What is the business case for an app?

5.  What’s next?

APP COMMERCE

APPS DOMINATE MOBILE

APP COMMERCE

$61m app revenue in 2014+90% growth

THE FASTEST GROWING SEGMENT IN ECOMMERCE

$126m app revenue in 2014+91% growth

APP COMMERCE

$260m app revenue in 2014+116% growth

$144m app revenue in 2014+140% growth

Source: Internet Retailer Mobile 500 (2014)

Retail apps capture 42% of mobile revenue for the top 500 retailers, according to Internet Retailer’s 2015 Mobile 500 report.

APP COMMERCE

APP COMMERCE WILL OVERTAKE THE MOBILE WEB IN 2016

APP COMMERCE

HOUSE OF FRASER’S JOURNEY

House of Fraser, the UK’s premium department store

Source:  Deloi,e,  Mobile  Consumer  2014:  The  UK  Cut  

How long is the interval between waking up and looking at your smartphone for the first time?

The first thing in the morning, the last thing at night

40% of UK online sales take place on a smartphone or a tablet

Tablet m.site Mobile Apps

Source: IMRG & Capgemini, Q4 Report (2014)

Why did House of Fraser invest in apps?

Strong sales and organic growth

High engagement

Strong conversion

A multi channel approach

2 x 1.5 x 8 x

Source: House of Fraser

Clear functional, technological and brand benefits:

House  of  Fraser  

So why invest in mobile apps?

A mobile app philosophy at House of Fraser

Some simple principles:

Consistent, native and personalised experience to give every customer a VIP experience

Act as a point of differentiation from other channels and clear use cases over and above other mobile channels

Provide a link between other channels to drive traffic to the app, online and in store

Hous  e  of  Fraser  

Rewind to July 2014

Replicate iPhone functionality

Centrally manage content

Merchandising

Innovate and iterate

The solution, a platform based approach with Poq

Fast and iterative app releases

Full merchandising control

Optimised navigation supporting other channels

API based integration for better stability

Reduced development time

New functionality and technology integration

Strong performance!

The solution, a platform based approach with Poq

Fully functional and branded Android app

9 real-time enterprise grade integrations

Live in under 11 weeks, and just in time for peak trading (October 2014)

We are extremely pleased with the design and functionality of the

app, especially the ability it has given us to innovate on top of a

stable ecommerce platform giving us the flexibility to make changes

to the app without requiring any additional bespoke development.

- Andy Harding, Chief Customer Officer, House of Fraser

Sustaining this over the next 12 months

User centred design as a pillar of the mobile philosophy

Rewarding loyalty and strengthening the customer relationship

Personalised, VIP approach

Pillars for future mobile app development

INTEGRATING DEMANDWARE

SAAS PLATFORMFOR NATIVE APPS

INTEGRATING DEMANDWARE

INTEGRATION POINTS1.  Integrating product related content into the app

Poq Studio Link Cartridge (demandware.com/link-marketplace/poq-studio)

Open Commerce API (OCAPI)

•  Product information (name, price, pictures, variations, etc.)

•  Category information

•  Content (e.g. size guide)

•  Store stock

•  Login / Sign up

•  Account information (order history, bag sync, etc.)

INTEGRATING DEMANDWARE

INTEGRATION POINTS2. Sending orders into DWRE

Bag sync with login for returning users

3. Standard pre-built third party integrations:

a.  Analytics: Google Analytics, Coremetrics, DC Storm

b.  Push notifications with Urban Airship & Mixpanel

c.  Payments: Paypal, Stripe, Braintree

4. Loyalty card number from DWRE and 3rd party CRM

INTEGRATING DEMANDWARE

WHAT RESOURCES ARE NEEDED? 1.  Project manager

2.  Design (in-house, SI, or Poq)

3.  Integration

a.  Technical support: in-house or SIb.  Front end developer for checkout styling and integration (Poq or

in-house)

4.  Content and testing

WHAT’S THE BUSINESS CASE FOR AN APP?

THE BUSINESS CASE FOR RETAIL APPS

Browsing duration rivals desktop

Source: Poq Studio Platform Report (2015)

THE BUSINESS CASE FOR RETAIL APPS

More interaction than any other channel

Source: Poq Studio Platform Report (2015)

THE BUSINESS CASE FOR RETAIL APPS

Conversion rates rivaling desktop

App1.8%

Mobile Website

0.73%

Tablet & Desktop

2.4%

Source: Poq Studio Platform Report (2014)

THE BUSINESS CASE FOR RETAIL APPS

Highest average order value of any digital channel

Source: Poq Studio Platform Report (2015)

THE BUSINESS CASE FOR RETAIL APPS

Conceptual  image  full  bleed  

THE BUSINESS CASE FOR SAAS IN APPS

ECOMMERCE EVOLVED TO SCALABLE PLATFORMS…

IT’S ABOUT TIME MOBILE DID, TOO.

TEST ENVIRONMENTPLATFORM ADVANTAGE

WHY IS THAT IMPORTANT?•  Future proof – innovate with

quarterly releases and partner plugins

•  Focus on retailing – reliable and scalable, market leading solution

•  In-house control – Make changes internally, rather than relying on external partners

WHAT’S NEXT?

What is the future of mobile apps?

Diversification of devices leading to opportunities in new channels

WHAT’S NEXT?

THE FUTURE OF APP COMMERCE

Use the single-customer view to personalize every experience.

Pay with a swipe of your finger in-app and in-store.

Pre-fill login details across the app eco-system.

Your app as the personal shopper in the store.

IN SUMMARY…

Mobile apps provide a gateway to a brands most loyal customers and by optimising this experience it is possible to significantly increase engagement, loyalty and ultimately sales.

Q&A

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