Mobile Personalization: The New Anti-Showrooming Weapon

Combat Showrooming with Personalization NOVEMBER 6, 2013!

#Showrooming!

2013 Mobile Consumer Trends!

Jack Philbin, Co-Founder & CEO, VibesChairman of the Mobile Marketing Association (MMA) North America!

@JackPhilbin!

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Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential

#Showrooming!

Discussion topics

Showrooming 2.0!

Personalization!

Mobile Wallet!

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Showrooming 2.0!

#Showrooming!

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The current state of showrooming!

Showrooming — frequency of smartphone use for in-store comparison shopping/purchasing!

Every time I shop!

Most ofthe time! Often! Sometimes! Rarely! Never!

7%

17% 20%

26% 19%

12%

Net 44%!

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Profile of the showrooming shopper!

Children present?!Age!

18 - 24!

20.7%!

15.9%!

25 - 34! 35 - 44! 45 - 54! 55 - 64! 65 or older!

44.2%!

24.7%!

17.7%!23%!

9.4%!14%!

6.7%!

17.5%!

1.2%!4.9%!

Non-showroomers!Showroomers!

Non-showroomers!

Showroomers!

Yes 48.2% No 51.8%

Yes 38.5% No 61.5%

Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000

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Smartphone usage in-store explodes!

Recent in-store behaviors!

33%!Compared prices on a competitor’s website!

2012 2013

49%!9%!

23%!

11%!

20%!

31%!

17%!

27%!

12%!

9%!

10%!

24%!

40%!

49%!

25%!

31%!

19%!

18%!

15%!

Purchased a product from a competitor!

Purchased a product from the store’s website after you’d left the store!

Researched a product on the store’s website!

Looked up a product review!

Used a company’s app in the store!

Scanned a QR Code for product information or an offer!

Checked-in using a location-based service (i.e., Foursquare) to get a deal or offer!

Sent a text message to join a subscription list!

Sent a text message to get more information on a product or offer!

2013!Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000

2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000

Beyond Showrooming!

Showrooming increased

156% in 2013

SHO

WRO

OM

ING

BEH

AVIOR

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186% increase in new purchases due to in-store text or QR scan!

Impact of in-store text/QR scan (31% of total sample)!

47%!

I was going to make the purchase

anyway, but felt better about it!

42%!

14%!

40%!22%!

12%! 5%! 7%!

I made a purchase I

hadn’t planned to because of

the information I received!

I was going to make the

purchase, but the information didn’t sway me!

The information dissuaded me from making the purchase!

186%

2013 2012


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Retailers have a 50/50 shot of combatting showrooming!

Action taken after in-store price comparison (49% of total sample)!

I used the information

to get a better price at the store where I was

shopping!


I made the purchase

while I was in-store, paying the price that was marked!

I purchased the item online at Amazon!

I purchased the item

online at a competitor’s

website!

I purchased the item in a competitor’s

physical store!

I did not purchase the item

anywhere!

None of the above!

37%

10%

31%

8% 6% 6% 1%

47%!45%!

7%!

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Embrace, rather than ‘combat’ showrooming!

“Your Ultimate Holiday Showroom”!

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Personalization: The anti-showrooming weapon!

#Showrooming!

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The text message advantage!

Email Open Rates!28.5%

28.5% of Emails are opened according to the Q2

2013 Email Trends & Benchmark report by the Email Institute / Epsilon!

Text

Text Open Rates!97.0%

97.0% of text messages are opened according to Juniper Research, and 90% of those messages are read within the

first 4-6 minutes!

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The personalization disconnect!

of consumers frequently see

personalization from retailers and brands!

89% 18% of consumers would sign up for mobile

messages if they were personalized!

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Personalization preferences!

Most important aspects of personalization!Uses your preferences –

favorite sizes, brands, shopping categories!

60%

Timeliness – when you’re getting ready to purchase that item!

20%

Location – when you’re in the store or around the store!

13% Uses your name!

8%


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Building your mobile relationships!

What entices you to subscribe to a retailer or brand?!

70%!

Incentives or coupons!

2013 2012

2013!Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,00

2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000

79%!

32%!

46%!

29%!

45%!

27%!

43%!

Product info & updates!

Exclusive content!

Store news & events!

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Mobile Wallet Marketing!

#Showrooming!

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Game changing technology for marketers!

§  One in three consumers have used the non-payment side of mobile wallets -  Passbook (launched 9/2012)

-  Google Wallet (launched 9/2013)

§  Both Passbook & Google Wallet mobilize offers/coupons, loyalty cards, boarding passes, etc.

§  Key benefits of mobile wallet -  Convenience -  Location reminders -  Ability to easily update

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The non-payment opportunity for marketers!

The real opportunity for marketers with mobile wallet is in the non-payment arena

It’s the leather! …not the plastic!

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Mobile wallet in action…!

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Seeing is believing… let’s try it out!!

Text STYLE to 84237!

Google Wallet Apple Passbook Other

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Mobile wallet combines time, location and interaction!

User enters within a 100-meter radius of a location !and receives a notification to their phone

Vibes Build-A-

Bear Workshop

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Personalization drives stronger ROI!

INSERT NAME INSERT NAME INSERT NAME

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Mobile wallet has proven to be effective for marketers!

Sample metrics from early Passbook programs:!§  64% more conversions from

Passbook vs. mobile web

§  32% of customers who clicked on the offer redeemed it in-store

§  24% increase in average order value with Passbook

Source: Vibes Passbook Program client metrics

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What is your definition of a “mobile wallet”?!

§  48% of consumers are aware of the non-payment side of mobile wallet

Understanding of what a mobile wallet is

27%!33%!

21%! 19%!

A mobile tool that allows me to both pay for items with

my phone and store information!

A mobile tool that allows me to pay for items directly from my phone

A mobile tool that allows me

to store information!

I have no idea what a mobile

wallet is or what it’s used for

48%!

Base: Total n=1,000

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Which mobile wallet feature would benefit you the most?!

§  85% of consumers would receive some benefit from non-payment mobile wallets

No Benefit

Digitizing paper items

Organizing on your

smartphone

Managing point

balances

Time sensitive

offers Automatically updated items

Location aware alerts

22% 19%

13% 13% 10% 7%

15%

Mobile wallet benefits

85% perceived benefit!Base: Total n=1,000

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§  Email is the most preferred method for receiving mobile wallet content (46%), followed by a retailer text message (20%), and retailer Apps (19%)

Preferred method for receiving mobile wallet content

Email 46%

20% 19% 11% 4%

Text message from the retailer

App from the retailer

Direct mail Mobile banner advertisement

Base: Total n=1,000

How do you prefer to receive mobile wallet content?!

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Quarterly 3%

How often would you like to receive mobile wallet content?!

§  The majority of consumers (55%) would prefer to receive mobile wallet content weekly

Daily 12%

Annually 1%

Never 12%

Monthly 18%

Preferred frequency

Base: Total n=1,000

Weekly 55%

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The mobile wallet advantage – 5 key benefits!

Time-sensitive offers!

Update your mobile offers… frequently!

Personalize, Personalize,!Personalize,!

Location!

Measurement & optimization!

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Three standout trends!

§  Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report shows that personalization can help retailers combat showrooming.

increase in showrooming

from 2012, and 36% increase in consumers using mobile devices to

shop in-store!

of consumers want personalization, but

only 18% see it frequently from

retailers!

of consumers see the benefits of

the non-payment side of the mobile

wallet!

156% 89% 85%


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Mobile relationship management!

§  Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.!

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Get the reports and infographics!

Download the Report and Infographic here http://www.vibes.com/mobilewallet

Combat Showrooming with Personalization NOVEMBER 6, 2013!

#Showrooming!

2013 Mobile Consumer Trends!

Jack Philbin, Co-Founder & CEO, VibesChairman of the Mobile Marketing Association (MMA) North America!

@JackPhilbin!

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www.vibes.com • [email protected] 312.753.6330 main • 312.589.6960 sales

Thank you!!

Mobile Personalization: The New Anti-Showrooming Weapon

Technology

Transcript of Mobile Personalization: The New Anti-Showrooming Weapon