Maximising revenue via mobile

Tackling the Challenges inRetail with Technology

Maximising Customer Experience and Revenues Through Mobile Shopping

Dan Hartveld CTO, Mobile Retail Solutions

Former Mobile Lead, Ocado


Mobile Situation

1. Apple App Store April 2010 2. faberNovel – February 2010

• Large changes in mobile technology over the past 2 years

• Cutting edge user interface & processor power, allows users to do the same things as on a PC and more!

• Over 3 Million iPhones sold in the UK since launch June 2008

• 630% growth in sales, Q2 2009

• Other providers racing to catch up

• Downloadable ‘Apps’ allow users to do what they want even without internet access or in bad coverage

• 6 out of the top 10 free iPhone apps are shopping apps 1

• 8 out of the top 10 are retail related 1

• Each app receives 5 – 10,000 downloads a day 2


Mobile Situation• 15% of under 35’s already shop on their phone 1

• 52% use their phone to research products, compare prices, find retailers 1

• More and more shopping apps are being released

• eBay - over $1bn in sales

• Ocado

• Net-A-Porter, Oasis, Next, Nike, Zara, Warehouse, Simply, Miss Sixty…

1. Retrevo.com March 2010


What is m-commerce?

Customers buying products directly from their mobile phone.

(or other handheld device)

Constraints:

• Small Screen Size

• Restricted Keyboard Functionality

• Bad Quality / Unreliable Connectivity

Mobile AppMobile

Website


What does M-Commerce Provide?• New sales avenue to customers

• Customers can shop whenever, wherever

• Find & purchase items in seconds

• Excellent for impulse / boredom shopping

• Retail space with few competitors

• Repeated advertisement to customer base

• Enhanced customer experience

• Excellent marketing tool

• Free publicity


Reasons to go mobile• Increased mobile internet usage

(growing 8x faster than standard internet)

• Increased exposure to customers

• Keep up with competitors

• Appeal to an affluent audience

• Relatively low development cost

• Increased sales

• Opportunities to drive users into local stores

• Appeal to comparison shoppers

• More people have smartphones

• Mobile commerce fits with your business model


Website or App?

Pros:Easily Discoverable

Higher Visibility

More Functionality

Increased User Experience

Customer Retention

Wow Factor (Publicity)

Cons:More Costly than Website

1 App Per Phone Platform

Not Everyone Has An App-capable Phone

Pros:Broader Reach

Quick for 1-Time Access

Easy to Update

No 3rd Party Approval Required

Cons:Connectivity Dependent

Slow & Awkward User Experience

Mobile App Mobile Website


Case Study: Ocado On-The-GoiPhone App – Released July 2009

• 100,000 people downloaded the App in the first quarter

• 30,000 were new, active customers

• Takes over £350,000 per week in sales via mobile purchases

• Continuous growth - Sales have grown by 140% in 9 months

• £1M worth of advertising and publicity

• 4.5% of all sales

• Faster than going to a supermarket

• Add items as soon as you think of them


Apple TV Advert


Three Big Principles

1 Minute Rule• The user should be able to complete a journey through your app within

60 seconds. i.e. Start-Search-Purchase in under a minute.

80:20 Rule • 80% of your user base will use only 20% of your website’s functionality.

Optimize this 20% and hide (or don’t implement) the rest.

No Manual Required• Your user interface must be intuitive enough to use by just looking at it.


Caching• All 25,000 lines are stored on the phone

(~5Mb compressed catalogue)

• Connectivity is a varying scale

• Cached data ensures fast user experience

• ‘Data Snacking’ should be a major focus


Immersive & Visual Browsing• Allow users to explore many products at once

• Hide away ‘bulky’ functions & menus


Personalise

• Recommended products

• ‘Instant’ shopping

• Remember details, preferences / sizes


Unique App Functions• Jotter – allows users to write a list so they can

add items in seconds

• Next Delivery Slot

• Location aware functions

• Address book connection


Seamless Integration• Make your app reflect your site - they’ll be

used together

• Synchronize data where possible

• Do everything you can, behind-the-scenes


Add Mobile to Your Marketing Strategy

1. faberNovel – February 2010

• Discovery – Get into the charts• Short bursts of advertising and publicity

App Store Rating 1:

• Maximize exposure through social media• Give your mobile outlets a purpose


The Future?

• mCommerce is here to stay

• By 2015, $119bn worth of goods and services will be purchased via a mobile phone. 8% of the total eCommerce market 1

• New ways of interacting with your customers are hitting the market all of the time - iPads, eReaders, Google Android, ‘iPhone Killer’ Mobiles

• All devices will access your data in a similar way

• Formulate a common strategy and user experience

• Can’t do everything - target your customers

1. ABI Research, Feb 2010


Thank You

Any Questions?

Presenter:

Dan Hartveld

[email protected]

@mobileretail

Maximising revenue via mobile

Technology

Transcript of Maximising revenue via mobile