Keynote for Exxon Mobil Retailer Conference

1. Mobile & Retail
Retailer congress ESSO Norge
Trond Bugge, april 2012

2. Send ESSO to 2065

4. 2010
2000

5. 2020
NS
IO
IMPACT
AT
CT
X PE
E 2010
TIME
2000
SOURCE: PAUL SAFFO

6. 3 main trends and 12 sub-trends
grown out of 8 pathways
DEMATERIALIZATION MOBILITY NETWORKING VIRTUALIZATION CONVERGENCE
PRODUCT INTELLIGENCE INTERACTIVITY GLOBALIZATION

7. Accelerating development of
smart mobile devices
MORE WIDELY
DISTRIBUTED
SMARTER SPEACH
RECOGNITION BETTER AND
AND MORE
MORE VISIBLE
ACCESSIBLE
LOCATION-
IMAGE
DATA, ALSO
RECOGNITION
INDOOR
BROADER
DISTRIBUTION
OF HYPER
RELEVANT
OFFERS
DEMATERIALIZATION MOBILITY NETWORKING VIRTUALIZATION CONVERGENCE
PRODUCT INTELLIGENCE INTERACTIVITY GLOBALIZATION

8. Smarter and more
accessible image
recognition
• Gigantic opportunity for mcommerce
More to read:
http://www.forbes.com/sites/jenniferhicks/2012/03/05/image-
recognition-technology-goes-shopping/
http://m.intomobile.com/2012/01/27/ebay-motors-app-gets-
image-recognition-iding-cars/
Ideas:

9. More widely
distributed
speech
recognition
• Faster search for products or deals
More to read:
http://www.emarketer.com/Mobile/Article.aspx?R=1008898/
http://www.zdnet.com/blog/microsoft/microsoft-making-big-
speech-bets-with-windows-8-bing/10303
Ideas:

10. Better and
more visible
location-data,
also indoor
• 58% have located a retailer on mobile
• 34% have searched store inventory on mobile
• More efficient physical shopping
More to read:
http://www.forbes.com/sites/jenniferhicks/2012/04/08/web-
analytic-tools-for-physical-spaces-indoor-positioning-takes-
shape/
Ideas:

11. Growing
distribution of
hyper-relevant
mobile offers
• Mobile ad spend worldwide is predicted to be US$3.3
billion in 2011 sky rocketing to $20.6 billion in 2015, driven
by search ads and local ads
• 28% of Smartphone owners have used a mobile coupon
More to read:
http://mobithinking.com/mobile-marketing-tools/latest-mobile-
stats
Ideas:

12. Rapid growth in usage of mobile
internet and applications
GREATER MORE SPACE FOR GEO-
POSSIBILITIES TO SOCIAL SHOPPING
MAKE PRE- & EXPERIENCES
POST PURCHASE GREATER
RESEARCH OPPORTUNITY
TO REWARD
CUSTOMERS
LOYALTY -
ON THE GO
GREATER OPPORTUNITY TO
INSTRUCT USERS IN THEIR
USE-CASE SETTINGS
DEMATERIALIZATION MOBILITY NETWORKING VIRTUALIZATION CONVERGENCE
PRODUCT INTELLIGENCE INTERACTIVITY GLOBALIZATION

13. Increasing
opportunities to
make pre- and
post purchase
research
• 82% have used their mobile to help with shopping in-store
• 69% have used their mobile to get more product info
More to read:
http://www.thinkwithgoogle.com/insights/facts/media-
platform/
Ideas:

14. More space for
geo-social
shopping
experiences
• 91% of mobile internet access is to socialize,
compared to 79% on desktop
More to read:
http://tag.microsoft.com/community/blog/t/
the_growth_of_mobile_marketing_and_tagging.aspx
http://www.clickfire.com/mobile-check-ins/
Ideas:

15. Greater
opportunity to
reward customers
loyalty - on the go
• 15% of all lunch box purchases at ICA stamped digitally
More to read:
http://smartaremobil.idg.se/2.14476/1.428708/ica-to-go-
lanserar-nfc-koncept
http://blog.neolane.com/conversational-marketing/11-startling-
stats-customer-loyalty-loyalty-programs/
Ideas:

16. Greater opportunity
instruct users in
their use-case
settings
More to read:
http://mobithinking.com/mobile-marketing-tools/latest-mobile-
stats
Ideas:

17. Fast forward convergence of
physical and virtual worlds
WIDER RAPID
ADAPTION OF MORE MOVE
CONTEXT- SENSORS TOWARDS
BASED RELATED MOBILE
SHOPPING SHOPPING COMMERCE
EXPERIENCES
IPAD HAVE
BECOME
THE # 1
SHOPPING
DEVICE
DEMATERIALIZATION MOBILITY NETWORKING VIRTUALIZATION CONVERGENCE
PRODUCT INTELLIGENCE INTERACTIVITY GLOBALIZATION

18. Wider adaption
of tag-based
shopping
More to read:
http://mobithinking.com/mobile-marketing-tools/latest-mobile-
stats
Ideas:

19. More sensors
related
shopping
experiences
More to read:
http://www.psfk.com/publishing/future-of-retail
Ideas:

20. Rapid growth of
mobile payment &
commerce
• PayPal currently has more than 17 million customers regularly
making a purchase through their mobile phone, up from the eight
million it reported in June.
• Groupon reports that2011. of it offers where purchased via a mobile
device in December
25%
• U.S are going to be around 15 billions in mobile commerce in 2012
More to read:
http://www.richrelevance.com/insights/mobile-shopping/
Ideas:

21. iPad has WHAT ARE MOBILE SHOPPERS BUYING?
IPAD IS KING.
The top revenue-producing items, based on gross sales, differ by platform: the top revenue driver on the desktop
become the
side is gift cards, while on the two-thirds of all mobile shopping cards hold a monetary value of $100, while the
Nearly iPad side it is large-screen TVs. The gift sessions take place on iPads,
accounting for nearly nine-tenths of mobile shopping revenue. Further,
average pricepoint for the TVs is $310.
iPad shoppers have the highest AOV, tend to purchase higher-cost goods, and
Top Revenue-Producing Items, Desktop/Laptop vs. iPad
convert at higher rates than other mobile shoppers.
#1 mobile Desktop/
Laptop
Purchased on Desktops/Laptops:
iPad
Other
Mobile iPads:
Purchased on
shopping
Gift Cards TVs
Avg. order
value is 50% higher
on iPads vs. other
device
mobile devices ...
$153 $158 $104
... but unit sales
per order are
lower.
6.9 3.0 4.3
RichRelevance Shopping Insights™
Not surprisingly,
Source: RichRelevance Data; US Sites: January 2012 – March 2012.
RichRelevance report March 2012: Mobile account for nine avg. price per
percent of shopping sessions compared to Web shopping. item tends to
be higher for iPad
However, mobile’s share of shopping revenue increased to 4.6
percent in May 2012, which is up from 1.9 percent in April 2011. WHEN DO THEY SHOP? purchases. $22 $53 $24
IPad shoppers’ share of sessions peaks on the weekend, with proportionately more desktop shopping on Wednesday.
The iPad makes up 64 percent of mobile shopping sessions, and iPad conversion
In general, iPad shoppers prefer to shop in the evenings, with nearly half of all iPad shopping occurring between 5PM
other iOS devices accounted for another 17 percent. and midnight. rate is nearly
thrice that of other
Although there have been significant advancements in Google’s mobile devices.
iPad Share of Sessions2.3% 1.5%Share of
0.5% iPad Sessions
Android and Microsoft’s Windows, specifically around tablets,
other operating systems only made up 19 percent of shopping by Day of the Week by Time of Day
sessions.
DAY SUN PM N
12 MID IGHT AM
In addition to controlling mobile commerce, the iPad is also driving
bigger digital shopping baskets. SA
TUR
7.6%
DA
Y Checkout
9PM: 9.5%
6.8%
4A
8PM
Per the study, the average iPad order value is $158 compared to RichRelevance Shopping Insights™
M
MO
$153 on desktop devices. However, desktop commerce had
FRIDAY
higher unit sales per order with 6.9 units compared to the iPad 3AM: 0.4%
NDAY
5.0% 5.8%
with 3 units. This shows that iPads are being used primarily to
purchase bigger-ticket items.
4.6% 5.1%
Specifically, the study found that the most expensive items Source: RichRelevance Data; US Sites: March 2012. Conversion rate based on percent of sessions resulting in a purchase.
Y
4.3%
M
8A
purchased on iPads were televisions. Gift cards made up the TU
DA
4P
M
ES
largest portion of Web items sold.
RS
D
U
AY
TH
The iPad had a conversion rate of 1.5 percent compared to other
mobile devices with a .5 percent conversion rate, showing the lead WHAT ARE MOBILE SHOPPERS BUYING?
WEDNESDAY 12 NOON
opportunities that retailers have to entice iPad shoppers. RichRelevance Shopping Insights™
The top revenue-producing items, based on gross sales, differ by platform: the top revenue driver on the desktop
Source: RichRelevance Data; US Sites: December 2011 – March 2012.
side is gift cards, while on the iPad side it is large-screen TVs. The gift cards hold a monetary value of $100, while the

22. RETAIL WILL TRANSFORM INTO AN OMNI-CHANNEL
EXPERIENCE WITH MULTIPLE TOUCH-POINTS
MORE SPACE FOR GEO- RAPID
GREATER
GROWTH OF MORE MOVE
MORE WIDELY POSSIBILITIES TO SOCIAL SHOPPING
DISTRIBUTED EXPERIENCES CONTEXT- SENSORS TOWARDS
MAKE PRE- &
SMARTER SPEACH BASED RELATED MOBILE
POST PURCHASE GREATER
RECOGNITION BETTER AND SHOPPING SHOPPING COMMERCE
AND MORE RESEARCH
MORE VISIBLE OPPORTUNITY EXPERIENCES
ACCESSIBLE
LOCATION- TO REWARD
IMAGE
DATA, ALSO CUSTOMERS
RECOGNITION
INDOOR LOYALTY -
ON THE GO IPAD HAVE
BECOME
GREATER THE # 1
BROADER OPPORTUNITY SHOPPING
DISTRIBUTION TO INSTRUCT DEVICE
OF HYPER USERS IN THEIR
RELEVANT USE-CASE
OFFERS SETTINGS
RAPID FAST FORWARD
ACCELERATING GROWTH IN CONVERGENCE
DEVELOPMENT THE USE OF OF PHYSICAL
OF SMARTER MOBILE AND VIRTUAL
MOBILE DEVICES INTERNET & WORLDS
APPS
DEMATERIALIZATION MOBILITY NETWORKING VIRTUALIZATION CONVERGENCE
PRODUCT INTELLIGENCE INTERACTIVITY GLOBALIZATION

23. TIME TO EXPERIENCE THE NIRVANA?

24. Think Mobile on your Ecosystem

26. Hope this inspired you...!
Trond Bugge, april 2012, trondbugge@me.com, +46 735324022