1. THE "SHOPPING" MINDSET OF THE MOBILE CONSUMER
The
Shopping
Mindset
of
the
Mobile
Consumer
5/11/2011

2. Housekeeping
Dial-in Information:
Phone (312) 878-0218
Access Code: 371-062-926
Audio PIN: Provided after web login
Webinar ID: 848962262
• All slides will be available after the webinar
• All registrants will receive a copy of the full report
this week.
2

3. Today’s Presenters
Lauren Freedman Christian Friedland
President CEO
the e-tailing group Coffee Table
www.e-tailing.com www.shopcoffeetable.com
3

4. Today’s Presentation
I. The Merchant Speaks: Highlights from the
e-tailing group’s 2011 Merchant Survey
II. The Mindset of the Mobile Shopper
III. The Coffee Table Opportunity

5. Coffee Table
The iPad’s First Catalog Marketplace

6. The Voice of Cross-Channel
Merchandising
Straight talk from “in-the-trenches”
online merchandising experts
§ 16 years e-commerce consulting
§ Author, It’s Just Shopping
§ 50+ years traditional retail and
catalog experience
§ Fortune 500 client projects
ranging from strategic planning,
merchandising, marketing, to
technology development and
messaging
§ Cross-category projects spanning
specialty retail to departments
§ Proprietary research studies on
mystery shopping, merchandising,
mobile and consumer behavior

7. I. The Merchant Speaks
Highlights from the 10th Annual
e-tailing group Merchant Survey

8. Profile of 200 Survey Respondents
Merchants of all sizes (annual sales)
33% $<$1M to $20M 32 categories of products and services
20% $20M to $100M 40% Apparel/Accessories/Shoes/Luggage/Jewelry
30% $100M to $1B 25% Home & Garden/Home Improvement/
Tools/Appliances/Furniture/Organization
17% $1B to $5B> 15% Sporting Goods/Outdoor Gear
11% Business to Business (B2B)
Senior level participation 10% Consumer Electronics
43% CEO/President/Principal or VP/ 10% Food & Beverages
General Manager 10% Toys/Kids
45% Director, Senior Manager /Mgr 9% Health & Beauty/Seniors
12% Analyst, Specialist, Assistant or 8% Books/Music/Video
8% Computer Hardware/Software/Peripherals
Other 7% Arts & Crafts/Hobbies/Party
7% Gifting/Greeting Cards/Food & Wine
Selling through a mix of channels 7% Office Supplies/Office Furniture
98% Internet 6% Entertainment
78% Email 4% Business Services
52% Store 4% Collectibles
4% Digital/Virtual Merchandise
44% Catalog
4% Educational
36% Mobile 4% Pets
30% Social 4% Travel
7% TV
8

9. Traffic from mobile is reported in the low single
digits
What percent of your traffic comes via mobile browsers
or mobile applications?
More than 5% 9%
3 - 5.0% 19%
2 - 2.9% 10% 28% > 3%
1 - 1.9% 17%
Less than 1% 24%
None 6%
Don’t know 15%
Q34
9

10. Revenue is less than 1% for most retailers
What percent of your revenue comes via mobile browsers or mobile
applications?
More than 5% 1%
3 - 5.0% 9%
2 - 2.9% 7%
1 - 1.9% 13%
Less than 1% 35%
None 14%
Don’t know 21%
Q35
10

11. Mobile investments are mixed with many merchants
just beginning to test the mobile waters
What level of investment will you make in mobile this year?
More than $350,000 6%
$201,000 - 350,000 2%
½ spending
$151,000 - 200,000 4%
$50K or less
$101,000 -150,000 4%
$76,000 - 100,000 6%
$51,000 - 75,000 7%
$26,000 - 50,000 10%
$1 - 25,000 39%
None 22%
Q32
11

12. mCommerce sites are top-of-mind while
iphone apps also see strong penetration
particularly for brand-centric merchants
SMS and Android applications appear next on the horizon
Plan to Em ploy Considering
Which mobile and SMS capabilities does your No Plans to
Em ploy Today in the Next 12 for Future,
company employ or plan to employ? Em ploy
Months Beyond 1 Year
m Com m erce site 25% 34% 22% 19%
Android application 9% 22% 23% 46%
Blackberry application 8% 14% 22% 56%
iPhone application 20% 20% 26% 34%
SMS 14% 22% 24% 40%
Mobile usage w ithin the retail store via associates 5% 13% 18% 64%
Mobile as an opt-in preference via em ail or checkout 10% 19% 24% 47%
Opt-in prom otion codes in print advertising 7% 12% 24% 57%
Q33
12

13. II. Mindset of The Mobile
Shopper Survey
Sponsored by CoffeeTable
iPad’s ecommerce enabled catalog
marketplace

14. Sample Methodology
• Online survey fielded to 1000 consumers in February
2011 where consumers:
Owners
Browsers
Buyers
Phone
830
623
400
– Spent $250 or more online annually Tablet
417
324
282
Which of the following do you own as described below?
Smartphone: A device that lets you make telephone calls, but also adds in
features that you might find on a personal digital assistant or a computer--
such as the ability to send and receive email an
Smartphone
only
52%
Tablet
only
17%
Both
Smartphone
and
Tablet
31%
14

15. Sample - Demographics
What
is
your
age?
Which
of
the
following
best
represents
your
combined
annual
household
income
before
taxes?
25-­‐34
18%
35-­‐44
22%
$25,000-­‐$35,000
7%
45-­‐54
26%
$35,001-­‐$50,000
10%
55-­‐64
25%
$50,001-­‐$75,000
21%
65+
9%
$75,001-­‐$100,000
22%
More
than
$100,000
34%
Prefer
not
to
respond
6%
How
many
children
18
years
of
age
or
younger
do
you
have
living
at
home
with
you?
None
63%
What
is
your
gender?
1
16%
2
14%
Male
43%
3
4%
4
or
more
2%
Female
57%
Prefer
not
to
respond
1%
15

16. I. SMARTPHONE: Topline
• Room for improvement in mobile shopping experience exists as
68% have reported less than a “very satisfied” experience citing
usability, security and connectivity challenges
• Shopping and aggregator app usage is relatively limited
• Mobile’s role in locating stores, products and competitive prices pre-
store visits and while in the store is significant and a “game changer”
relative to shopping behavior
• 64% of smartphone users have made a purchase on their phone
with commodity product (books/magazines, music, tickets) and
clothing/accessories topping the list
• Despite today’s challenges consumers expect to purchase more in
the near future
16

17. 57% of consumers surveyed have downloaded
individual retailer or aggregator services though
usage appears limited
How many shopping apps (from individual retailers like
Best Buy or Target or aggregator services such as
Netflix or iBooks) have you downloaded to your
Smartphone in the past year?
None
43%
1-­‐5
38%
6-­‐10
13%
11-­‐20
4%
20+
2%
Q3 - 830
17

18. Relative to shopping smartphone usage starts
with store locators while 1 in 3 consumers takes
an aggressive stance when researching
We
would
like
to
gauge
your
current
usage
of
your
Smartphone.
How
frequently
have
you
done
each
of
the
Frequently/
OWen
SomeUmes
Rarely/
Never
following
acUviUes
with
your
Smartphone
over
the
past
6
months
prior
to
visiUng
a
physical
store?
Looked up store information (hours, location,
44%
28% 28%
map, etc.)
Checked for sales and specials 40%
20% 40%
Looked for competitive pricing at Amazon 38%
18% 44%
Browse an online store for product of interest 37%
26% 37%
Checked for product ratings and reviews 36%
20% 44%
Looked for competitive prices on products at
32%
23% 45%
retailers online other than Amazon
Checked inventory of a product of interest prior
25%
21% 54%
to making a visit to the store
Look for competitive prices on comparison
shopping engines (PriceGrabber, Shopping.com, 24%
19% 57%
Q4 - 830 etc.)
18

19. Store Locator And Product Pick-Up -44% Freq/Often
19

20. Checked Inventory Of A Product Of Interest Prior To
Making A Visit To The Store-25% Freq/Often
20

21. Checked For Product Ratings And Reviews-36% Freq/
Often
21

22. Sales/Specials-40% Freq/Often
22

23. Looked For Competitive Prices-32-38% Freq/Often
23

24. Consumers also begin to utilize smartphones to
competitive price, compare product and access
ratings and reviews while in store
When
visiting
physical
retail
stores
how
likely
are
you
to
partake
Frequently/
Rarely/
Sometimes
in
the
following
behavior
with
your
smartphone? Often Never
Check
for
product
ratings
and
reviews 26% 23% 51%
Look
for
c ompetitive
pricing
at
Amazon 29% 20% 51%
Look
for
c ompetitive
prices
on
products
at
retailers
online
other
than
Amazon
26% 21% 53%
Look
for
c ompetitive
prices
on
c omparison
shopping
e ngines
(PriceGrabber,
Shopping.com,
e tc.)
20% 18% 62%
Access
promotional
c oupons
for
redemption
at
the
store 31% 20% 49%
Scan
bar
c odes
and
c ompare
prices
to
other
retailers 24% 17% 59%
Scan
bar
c odes
to
learn
more
about
a
specific
product
(product
information,
product
images,
video,
e tc.)
22% 17% 61%
Look
on
a
retailer’s
website
for
product
beyond
what
they
c arry
in
the
store
27% 20% 53%
Check-­‐in
using
ShopKick
to
receive
reward
points
for
visiting
retail
stores
13% 12 75%
Q5 - 830
Make
a
purchase
on
your
phone
at
another
retailer 15% 13% 72%
24

25. Amazon Competitive Pricing via App
29% Freq/Often 20% Freq/Often
25

26. Access Promotional Coupons For In-Store
Redemption Based On Text Sent Via Email Link
31% Freq/Often 26

27. Scan Bar Codes/Compare To Other Retailers
24% Freq/Often
27

28. Scan Bar Code To Learn More About
Specific Product Information
22% Freq/Often
28

29. Check-In Using Shopkick
13% Freq/Often
29

30. Smartphone usability is still awkward (49%) while
credit card security (36%) and connection speeds
(31%) top the list of challenges
What is keeping you from shopping more from your Smartphone?
(Check all that apply.)
Shopping
is
sUll
too
awkward
on
my
phone
49%
Concerned
about
giving
my
credit
card
informaUon
over
a
mobile
connecUon
36%
Slow
connecUon
speeds
or
lack
of
connecUvity
31%
Can’t
get
a
clear
enough
image
of
the
product
26%
Product
informaUon
cannot
be
easily
reviewed
23%
Takes
me
too
long
to
buy
20%
Product
informaUon
is
limited
18%
Feel
that
the
full
product
selecUon
is
not
offered
13%
Retailers
are
not
able
to
customize
my
experience
based
on
my
current
9%
Other
(Please
specify)
12%
Q6 - 830
30

31. Awkward Shopping, Slow Connection & Error Messages

32. Unclear Imagery, Lack Of Or Unwieldy Product
Information

33. Shoppers are evenly divided between heavy
(daily/weekly), monthly and intermittent usage
How frequently do you browse or buy product and
services online using your Smartphone?
Daily
6%
22% Heavy
Weekly
16%
Several
Umes
per
month
17%
28% Monthly
Once
a
month
11%
4
or
more
Umes
per
year
10%
25% Intermittent
Less
than
4
Umes
per
year
15%
Never
25%
Q7 - 830
33

34. 84% will spend somewhat more to about the same
as current levels via smartphone this year
How would you expect your mobile shopping
spending behavior to change for the balance of 2011?
Spending
significantly
more
8%
Spending
somewhat
more
37%
Spending
about
the
same
47%
Spending
somewhat
less
5%
Spending
significantly
less
3%
Q11 - 400
34

35. II. THE TABLET: Topline
• Tablets are perceived as ideal tools for researching products and
browsing followed by purchasing
• Aggregator apps and single retail downloads see limited usage
• Browsing and buying patterns show higher concentration of buyers
in the tablet segment as 68% of tablet owners vs. 48% of
smartphone owners had made a purchase confirming its strong
positioning as a shopping tool
• 78% of tablet browsers and buyers have purchased where favorite
stores were dominated by Amazon followed by Best Buy, eBay and
Target
• Shopping satisfaction is stronger on the tablets than smartphones
• Core capabilities of CoffeeTable are seen as valuable by tablet
owners where browsing favorite catalogs and receiving alerts top the
list
35

36. To date Aggregator Services are the shopping apps
most frequently downloaded to tablets yet they
subsequently see relatively limited usage
How often have you dow nloaded and used the
11-20 6-10 1-5
follow ing types of shopping apps [for your Never
Tim es Tim es Tim es
tablet]?
Aggregator services (Netflix, iBooks) 12% 21% 35% 32%
Com parison shopping engines (PriceGrabber,
Shopping.com ) 11% 15% 23% 52%
Standalone retail stores (Best Buy, Target) 8% 17% 35% 40%
Group shopping (Groupon) 7% 16% 29% 48%
Private sale (Rue La La, Gilt) 6% 11% 16% 67%
Q13 - 417
36

37. Tablets are perceived as an ideal tool for researching
products and browsing followed by purchasing
Strongly
to
Please
provide
your
level
of
agreement
with
t he
following
statements
Somewhat
to
Somewhat
Neutral
regarding
your
iPad
or
Tablet. Stongly
Disagree
Agree
The
iPad/Tablet
is
an
ideal
t ool
t o
research
products
before
m aking
final
purchases 59% 26% 15%
The
iPad/Tablet
is
an
ideal
t ool
for
browsing
m y
favorite
catalogs
and
retailers 56% 29% 15%
The
iPad/Tablet
is
an
ideal
t ool
for
purchasing
from
m y
favorite
catalogs
and
retailers 49% 29% 22%
The
ability
t o
use
m y
iPad/Tablet
t o
interact
m ore
with
t he
product
(zoom,
rotate,
t ouch
for
additional
info)
m eans
I
purchase
m ore
product 40% 31% 29%
The
ability
t o
see
t he
product
better
via
m y
iPad/Tablet
m akes
m e
want
to
shop
m ore 38% 34% 28%
The
portability
of
m y
iPad/Tablet
m eans
I
purchase
m ore
product 32% 33% 35%
I
only
shop
via
m y
iPad/Tablet
when
I
am
away
from
home 28% 23% 49%
Q14 - 417
37

38. Tablet owners appear to use these devices to browse
and buy online more frequently than smartphone
owners
How frequently do you browse or buy products
and services online?
Daily
6%
10%
Weekly
16%
19%
Several
Umes
per
month
17%
19%
Once
a
month
11%
12%
4
or
more
Umes
per
year
10%
7%
Less
than
4
Umes
per
year
15%
9%
Smartphone
Tablet
Never
25%
24%
Q7/15 – 400S/417T
38

39. Tablet owners use these devices to purchase online
more frequently than smartphone owners
How
many
purchases
have
you
made
in
the
past
6
months?
36%
None
22%
18%
1
15%
30%
2-­‐5
39%
9%
6-­‐10
12%
7%
Smartphone
Tablet
>10
12%
Q8/16 – 400/363
39

40. Over 100 different merchants were named as one of the last 3 stores
where purchases were made via a tablet with Amazon, Best Buy, Target,
eBay, iTunes and Wal-Mart topping the lists
What
are
the
last
3
stores
where
you
made
a
purchase
on
your
iPad
or
Tablet?
TOP STORES Store
1 Store
2 Store
3
Amazon 31% Amazon 12% Amazon 6%
Amazon
Best
Buy 9% Best
Buy 10% Best
Buy 5%
Best Buy Target 7% eBay 8% Wal-­‐Mart 4%
eBay 5% Target 5% eBay 4%
Target iTunes 5% Wal-­‐Mart 5% iTunes 2%
Wal-­‐Mart 5% Apple 2% Sears 2%
eBay Apple
Store 3% iTunes 2% Target 2%
Barnes
&
Noble 3% Barnes
&
Noble 1% Apple
Store 2%
iTunes LLbean 2% Border's 1% Barnes
&
Noble 2%
Wal-Mart Kohl's 1% Macys 1% Borders 2%
Netflix 1% Bed
Bath
&
Beyond 1% Home
Depot 1%
Apple App
store 1% Cabela's 1% Kohl's 1%
iBooks 1% overstock.com 1% Groupon 1%
Barnes & Noble QVC 1% Staples 1% iBooks 1%
JC
Penney 1% Gap 1% LLBean 1%
Sears 1% Groupon 1% Macy's 1%
Q17 – 324
Verizon 1% Land's
End 1% Staples 1%
40

41. In which categories did you purchase products or services.
Select all that apply.
Books/Magazines
37%
45%
Clothing
and
accessories
(men’s,
women’s,
kid’s)
26%
37%
Digital
books
24%
30%
Consumer
electronics
23%
28%
Note: Computer
hardware
and
soWware
20%
27%
-The categories purchased Music/DVD/Videos
26%
24%
more with Smartphones are Movies
22%
21%
11%
tickets and food GiWs
and
collecUbles/Flowers
20%
23%
GiW
Card/CerUficates
19%
-Tablet strongholds include Tickets
(movies,
concerts,
theatre)
18%
31%
clothing/accessories, and Toys/Video
games
16%
17%
gifts and collectibles Furniture/Home
and
garden
8%
13%
CraWs/Hobbies
11%
12%
Food
12%
18%
Pet
supplies
10%
10%
SporUng
goods
8%
10%
Health
and
beauty
items
10%
10%
Jewelry/Watches
10%
8%
Luxury
items
5%
6%
Smartphone
Travel
0%
1%
Tablet
Don't
know/unsure
1%
4%
Q9/18– 400/324
Other,
please
specify
1%
1%
41

42. Shopping via a tablet delivers a more satisfactory
experience than shopping via a smartphone
Thinking about your most recent shopping experiences, what level of
satisfaction would you report?
Very
saUsfactory
32%
50%
Somewhat
saUsfactory
41%
38%
Mixed
bag
(someUmes
saUsfactory/someUmes
not
saUsfactory)
24%
9%
Somewhat
unsaUsfactory
3%
3%
Smartphone
Tablet
Very
unsaUsfactory
0%
0%
Q10/19– 400/324
42

43. 69% of tablet owners report that their most recent shopping
experiences via these devices was significantly to somewhat
better than shopping with their smartphones
How would you rate the shopping experience on the iPad
or Tablet versus your mobile phone?
Significantly
beger
39%
Somewhat
beger
30%
About
the
same
17%
Somewhat
worse
2%
Significantly
worse
1%
Don't
shop
on
both
devices
6%
Don’t
own
both
devices
5%
Q19 – 324
43

44. On the Horizon
> consumer comfort with a myriad of mobile
devices
> merchant investment in mobile
> traffic and revenue generation resulting from
mobile
> expectations regarding a seamless shopping
experience

45. ARE YOU READY FOR THE “m”
FACTOR?

46. Chris Friedland
Coffee Table A Real Valuable Product
Real Valuable LLC
The iPad’s Catalog Marketplace http://www.realvaluable.com
46

47. Why We Sponsored the e-tailing group
Research
• Understanding current mobile behavior
• Likes / dislikes of mobile shopper
• Better understanding of what is missing from
current mobile / shopping experience
• The role of tablet in consumer shopping
behavior
47

48. Catalog Marketplace
Coffee Table is a free iPad application allowing users to aggregate
retailers catalogs to a “virtual” coffee table.
48

49. Features a Catalog Store
Users can subscribe to catalogs of brands they are familiar with
and discover new brands through the Coffee Table catalog store
49

50. How it Works
Catalogs users subscribe to are digitally pushed up to
their devices as released.
50

51. And it’s more than just a viewer..
In addition to viewing, users can purchase items in the
catalogs by touching items within the issue to add them to
their shopping cart
51

52. Shop Offline, Buy Online
Coffee Table stores cart level information on the tablet,
allowing users to shop offline and place orders when
online
52

53. Flash Sale Features
Coffee Table allows retailers to push limited duration flash
sales promotions to customers to draw users back into
the catalog to buy
53

54. Easy Integration Requirements
• Coffee Table requires no IT to get started, just:
– A PDF of a retailers catalog
– An excel document containing product specifications
– A contact in the retailers call center
– Will move to EDI integrations once critical mass is reached
54

55. Simple Pay For Performance Model
Open, Setup, and Push Fees waived for early
adopters who participate in our June 1st launch
Cost per Open! Cost per Push! Affiliate Fee!
" " "
$1 per catalog open" $0.20 per push We participate in
(Only charge on first open)! notification to your existing
subscribers" affiliate marketing
program"
n $6.00 per page setup fee for new issues"
n One time $1500 setup and training charge"
55

56. Easy Decision - Lets Get Started
• Extends your reach and visibility
• Predictable ROI
• Easy and Low Cost Implementation
• Email chris@shopcoffeetable.com to get a copy
of an insertion agreement and setup a live demo
with your catalog on Coffee Table
56

57. Benefits
• Leverage existing catalog creative on iPad
• Offer flash sale promotions to subscribers
• Use your catalog as a transactional sales tool
• Get additional brand exposure through catalog
marketplace
• Easier shopping experience through two touch
checkout
57

58. Questions & Answers
Lauren Freedman
lf@e-tailing.com
(773) 975–7280
Chris Friedland
chris@shopcoffeetable.com
(530) 321–7277
58