Mobility in retail

1. MOBILITY IN RETAIL MOBILITY IN RETAIL A S u p p l e m e n t t o m o b i l e e n t e r p r i s e a n d RI S NE W S Ma g a z i n e Enabling the on-the-go enterprise p r o d u c e d b y C U S T O M E R C E N T R I C I T Y • T A B L E T S • A N A L Y T I C S MOBILITY IN RETAILEnabling the on-the-go enterprise

2. MOBILITY IN RETAIL 3 MOBILITY IN RETAIL RIS GROUP PUBLISHER David Weinand 904.374.8590 dweinand@edgellmail.com RIS SALES Associate Publisher Catherine J. Marder 603.672.2796 cmarder@edgellmail.com Senior Account director Lisa Wallace 904.217.3489 lwallace@edgellmail.com Senior Account director Ashley Ramirez 904.372.4017 aramirez@edgellmail.com Assistant to the Publisher Jen Johnson jjohnson@edgellmail.com EDITORIAL Group Editor-in-Chief Joe Skorupa jskorupa@edgellmail.com Executive Editor Adam Blair ablair@edgellmail.com Associate Editor Nicole Giannopoulos ngiannopoulos@edgellmail.com Mobile enterprise PUBLISHER Dorene Rettas DoreneR@MobileEnterpriseMag.com Mobile enterprise SALES Senior Account Manager: Scott Vetter ScottV@MobileEnterpriseMag.com Assistant to the Publisher Jen Johnson jjohnson@edgellmail.com EDITORIAL Editor in Chief Lori Castle LoriC@MobileEnterpriseMag.com Assistant Editor Stephanie Blanchard StephanieB@MobileEnterpriseMag.com Online VP OF ONLINE MEDIA Robert Keenan rkeenan@edgellmail.com Web Development Manager Scott Ernst sernst@edgellmail.com Director of Lead Generation Jason Ward jward@edgellmail.com Online Event Producer Whitney Ryerson wryerson@edgellmail.com ART/PRODUCTION Creative Director Colette Magliaro cmagliaro@edgellmail.com Art Director Lauren Cloos lcloos@edgellmail.com production Senior Production Manager Pat Wisser pwisser@edgellmail.com Subscriptions 978.671.0449 Reprints: edgellreprints@parsintl.com 212.221.9595 CORPORATE CEO/Chairman Gabriele A. Edgell gedgell@edgellmail.com President Gerald. C. Ryerson gryerson@edgellmail.com Vice President John Chiego jchiego@edgellmail.com CORPORATE Office Edgell Communications 4 Middlebury Blvd, Randolph, NJ 07869 973.607.1300 FAX: 973.607.1395 This is the third year for the Mobility in Retail supplement, and mobility shows no signs of losing steam. In fact, it continues to gain momentum at lightning speed, with customer centricity, tablets and mobile analytics being key areas of growth. Mobile technology serves a dual purpose for retailers, aiding both the employees and customers who consider a mobile device part of their daily lives. Careful planning, execution and device management solutions are the cornerstones of a successful mobile strategy for any retailer. Those who take advantage of the benefits of integrating mobile capabilities into their brand experience will see increased sales and productivity of employees. With mobile, retailers can send customers coupons and loyalty points, access quicker checkout and redeem rewards automatically. Because they are portable, mobile and convenient, tablets are changing the way businesses operate and can save time for employees by providing immediate access to product information, documents, corporate materials and presentations, plus connect workers to each other and to core business processes now made more efficient. To truly see the value of tablets in business, it is critical to build ROI not around the device itself, but what the business is looking to accomplish. This means implementing a holistic solution to achieve these goals, both from an ROI perspective and from ensuring user experience and effectiveness. The spread of mobile technology has also opened up new data-gathering and analytics possibilities for retailers, but for many, turning the new waves of mobile-generated information into useful insights is still very much a work in progress. Analytics opportunities – and challenges – enabled via shoppers’ mobile devices are multiplied when consumers enter, or even come near, a retailer’s brick-and-mortar store. Mobile-enabled analytics can be used to gain a greater understanding of general traffic patterns and customer behavior, but can also be tied to individualized measurements of shopper activity. One thing is for certain, mobility in retail has only just begun, and we look forward to seeing what next year’s mobile evolution will bring. Retail on the GO E D I T O R ’ S N O T E Member Member Printed in the USA F O U N D E R Douglas C. Edgell 1951-1998 Nicole Giannopoulos Associate Editor, RIS News

3. MOBILITY IN RETAIL C H A P T E R T I T L E SMOBILITY IN RETAIL C U S T O M E R C E N T R I C I T Y Striking a balance between the tra- ditional challenges of retail and the ever-evolving mobility space means retailers need to adapt quickly. Mo- bile technology serves a dual purpose for retailers, aiding both the employees, and, in turn, customers who consider a mobile device part of their daily lives. For a sales representative looking to access up-to-date inventory records and product information quickly and without interruption to their customer, it’s crucial to have accurate information stored secure- ly on a device and readily available. Careful planning, execution and the right device management solutions are the cornerstones of a successful mobile strategy for any retailer. Those who take advantage of the benefits of integrating mobile capabilities into their brand experience will see increased sales and productivity of employees. With mobile, retailers can send customers coupons and loyalty points, access quicker checkout, send immediate discounts at checkout, and redeem rewards automatically. Mobility means that associates can spend more time with customers in the store — improving the experience and resulting in higher satisfaction from this personal attention. It can also enable an easier sell (and higher job satisfaction) for associates who have full product information in their hands. Many retailers, including Saks, CVS, Walmart and Sportsman’s Warehouse are roll- ing out capabilities in an attempt to keep up with consumer expectations and reap the benefits of mobility. The Connected Store Saks Fifth Avenue has launched Wi-Fi at all 44 store locations nationwide, as part of a corporate initiative to create a more connected, interactive shopping experience for customers. The network connects shoppers with mobile tools such as the new Saks Fifth Avenue app, which offers fea- tures such as shareable wish lists, fashion look books, event calendars and more. The retailer first launched Wi-Fi at its flagship store in New York City in 2011, and has expanded the avail- PersonalizingcustomerExperienceonthegoRetailers leverage mobile solutions to improve experiential shopping and increase satisfaction. By Nicole Giannopoulos 4 MOBILITY IN RETAIL SEPTEMBER 2013 CVS launches a 3D store on its interactive iPad app

4. MOBILITY IN RETAIL C U S T O M E R C E N T R I C I T Y with the Walmart app and then scan their phone at a self-checkout register to pay. Through analyzing what customers usually buy, the retailer thinks it can automatically compile a list that will come up whenever the shopper opens he app to anticipate what the customer will need. Personalized Shopping There’s no doubt the worst part about shopping is standing in line to checkout. Retailers such as Sportsman’s Warehouse say no more, with the rollout of iPhones and iPod Touches to help reduce checkout times and make shopping more personalized for customers. The devices allow store associates to lookup inventory, scan barcodes and process payments, bringing the checkout to the shopper and eliminating lines. Scanning performance, durability and ease-of-use were key factors that led Sportsman’s executives to rollout 500 devices to workers across its 46 stores, which accurately reads a vari- ety of barcodes, including coupons or loyalty club barcodes increasingly found on the reflective screens of mobile devices. • Mobile Checkout Walmart uses big data around customer’s shopping habits to create shopping lists for them on a mobile app. The retailer will use this to improve the in-store shopping experience as it looks to mobile-influenced purchases outpacing e-commerce sales. “The future of retailing is the history of retailing, one of a personalized interactive experience for every customer delivered through a smartphone,” said Gibu Thomas, Walmart’s global head of mobile. Thomas also noted that in-store buying influenced by mobile was on track to be about twice as big as e- commerce sales by 2016. The retailer’s smartphone app also boosts buying: customers who have the app make more trips to the store and spend as much as 40% more. The app already includes a shopping list function, which can tell customers where to find products in the store, and in the future it may provide relevant digital coupons that can be redeemed via mobile. The retailer is currently trialing a Scan and Go system, allowing customers to scan items as they shop ability to more stores on an on-going basis. Since the initial launch, users have made more than 5,000,000 connections to the in-store network. The Saks Fifth Avenue NYC Flag- ship store is the most popular location for Wi-Fi with more than 1.5 million connections made in this store alone. The retailer has found that shoppers average more than 19,000 connections per day and have exchanged more than 17,000,000 MB of data traffic to date, while debating purchasing decisions and sharing new looks. A 3D Experience CVS launched an interactive app that delivers a digital store experience for customers using iPads. With the new app customers can explore a 3D CVS store and access services, including pharmacy services, ExtraCare coupon center, photo center, MinuteClinic, weekly ads and browse departments. The app is designed to present a fun and interactive pathway to shop CVS and fill prescriptions. “The new CVS iPad app provides the millions of customers who visit CVS.com on a tablet device each month with a virtual feeling of visit- ing their neighborhood CVS/pharmacy from their home or on the go. Our app makes it unbelievably easy for customers to shop, fill prescriptions, manage their ExtraCare accounts and more through a highly personalized experience and 3D realism,” said Brian Tilzer, SVP and chief digital officer for CVS/pharmacy. 6 MOBILITY IN RETAIL SEPTEMBER 2013 The future of retailing is the history of retailing, one of a personalized interactive experience for every customer delivered through a smartphone. – Gibu Thomas, Walmart’s global head of mobile

5. MOBILITY IN RETAIL T A B L E T S I N R E T A I L Portable, mobile and convenient, tablets are changing the way businesses operate and can save time for employees by providing immediate access to product information, documents, corporate materials and presentations, plus connect workers to each other and to core business processes now made more efficient. For sales professionals, who may have about 30 seconds to capture a client’s or consumer’s attention, the “instant on capability” can be critical. And in many cases, specifically when it comes to sales (whether on the store floor or the field) a tablet is a matter of perception. A sales person selling high-tech products, for example, showing up with a box of file folders to make a presentation or walking around the store with a paper catalog is an embarrassment for a supposedly forward-thinking company. And in retail especially, when consumers are hyper-connected, retailers can’t afford to have the customer knowing more than the sales associate. Tablet Market Overview Although Android is the dominant operating system (OS) in smartphones, iPads are currently domi- nating the tablet market, across all verticals. According to IDC, “An- droid-based tablets expanded from 1% of the market in 2012 to 7.4% in 2017.” In addition, “One in every two tablets shipped this quarter was be- low eight inches in screen size. And in terms of shipments, we expect smaller tablets to continue growing in 2013 and beyond,” says Jitesh Ubrani, research analyst for IDC’s Tablet Tracker. So Many Choices Before deploying a tablet solution, what questions do you need to ask? Among the criteria to consider are security capabilities, app ecosys- tems, price point, ease of use, envi- ronment and lifecycle. First, where will the tablet be used? Warehousing, for example, due to its tough conditions, typically require tablets with rugged design and durability. Sales floors do not and can use a consumer-grade device. Or is the end user in marketing or sales and requires a tablet to make pitches or conference room presentations? Does the tablet have to face two environments – inside the four walls and out? How long are the shifts? Will you need an extra battery or additional chargers or vehicle cradles? What peripherals must be supported? Can they be supported by existing Wi-Fi technology? The ease of use is another con- sideration, not in terms of the hardware per se, but in terms of support. Will robust training be re- quired or will employees be able to use tablets and the associated apps immediately? Although the familiar- ity with the OSes has reduced the barrier to introducing new devices, when employees are coming from a cash register or PC experience, many might find it challenging to suddenly switch to a new interface. Regarding security, tablets should include the same gover- nance process and mobile device and application management solutions and policies that the business already uses for smartphones, not the least of which are remote wiping 8 MOBILITY IN RETAIL SEPTEMBER 2013 Transformative TabletsThe role of tablets evolves as capabilities expand to include planograms, inventory, security and more. By Lori Castle when consumers are hyper-connected, retailers can’t afford to have the customer knowing more than the sales associate.

6. MOBILITY IN RETAIL T A B L E T S I N R E T A I L capabilities and trusted network access. This is especially true for regu- lated industries like retail that face compliance. Some devices are currently being built with this in mind, while others will require a solution partner. Finally, what is the plan for main- tenance support plan and lifecycle management? Will the business buy additional devices to keep as spares? How will downtime be handled so as not to lose sales? With smartphones, new devices are typically upgraded every 18 to 21 months. Tablets generally do not have that option. While larger companies might have great relation- ships with carriers that offer good subsidies on smartphones the same is difficult to achieve with tablets. Retail Replacement Tablets are currently used for a vari- ety of business processes and merchandising is one of the functions where an impact is being seen. Tab- lets are ideal to see planograms and product pictures, for distributing content to thousands of workers in the field and for order management. (See PepsiCo Case Study.) From supplier to seller, tablet solutions are replicating the entire format of the retail industry. They enable those on the floor to be more informed and agile — both from a consumer-facing (replacing fixed POS terminals) and internal perspective (connecting the front of store to back of house). 10 MOBILITY IN RETAIL SEPTEMBER 2013 PepsiCo Optimizes Field with Apple and Apps By Lori Castle PepsiCo’s North America Beverages division direct store delivery (or DSD) system, which supports approximately 17,000 distribution routes daily, re- lies on a division of labor — one person focuses on selling and merchandising, one on delivering and one providing weekend merchandising support. “This has helped us create a stronger business over the years and gives our customers added value, but it was challenging getting all parties to com- municate pertinent information in real time to one another since they are all working different shifts in different stores and with different responsi- bilities,” says Brian Spearman, SVP of Go-To-Market and Service, PepsiCo North America Beverages. Outdated Model Recently, the company created two new apps that directly impact its distribution system across the U.S., and issued iPhones and iPads to the employees involved. This deployment changed the way the company sup- plies its approximately 400,000 customers in the U.S. Previously, PepsiCo drivers and merchandisers utilized printed schedules with information on order quanti- ties and tasks to be performed at each outlet. If a store needed to add to or cancel an order, it was a challenge because communicating with the delivery drivers was difficult. This mobile initiative has changed all that. “It’s taken an outdated model and brought it up to speed, allowing us to use top technology to better en- sure there are always enough PepsiCo beverages available to consumers. In- novation and productivity are key priorities for our company and this project hits on both,” says Spearman. Field merchandisers in the U.S. (approximately 4,000) are using iPhones and have the “Power4Merch” app to enable them to view schedules and store and display details. Merchandisers are now immediately notified when

7. MOBILITY IN RETAIL T A B L E T S I N R E T A I L Creating Apps Still, a tablet is only a piece of hardware without the apps that run on it and companies need to develop their own proprietary “enterprise- grade” apps to truly enable core processes. For some verticals, like retail in particular, employee and consumer facing apps cross over. When it comes to building apps, the first thing a company should ask is “What is the strategy of deploying the apps? Should I look at multi-platform or should I just look at what I procured?” Additional questions to be asked are “When I add tablets, can I have a single OS across the entire set of infrastructure? Can I then leverage management tools, applications, the computing infrastructure?” One of the the biggest obstacles in the case for tablets is when business apps aren’t being supported. ROI and Beyond To truly see value of tablets in business, you have to create a net new ROI for a net new piece of technology or you have to figure out a way to replace something that existed already as an ROI model. In the store, the case may be quite clear, as tablets are replacing other technology. It is critical to build ROI not around the device itself but what the business is looking to accomplish. This means implementing a holistic solution to achieve these goals, both from an ROI perspective and from ensuring user experience and effectiveness. • 12 MOBILITY IN RETAIL SEPTEMBER 2013 a driver has arrived at a store and can be sure that deliveries are unloaded quickly and displayed correctly. They can also see store details and account information — they start and end their days on the iPhone. Field managers in the U.S. (approximately 2,000) are using iPads and the “Manager’s Briefcase” app, which gives them the ability to coor- dinate and monitor deliveries, schedules and customer contracts; pull up pricing and planograms; and provide electronic versions of all the paper- work and resources they need to manage teams, including store audits, employee coaching forms, and automated notifications to merchandisers. Uncapping Benefits These apps have already been de- ployed throughout the North America Beverages division in the U.S. and are currently being rolled out in Canada. In addition, Spearman says that many groups within the company, including IT and supply chain, are always looking at ways to make the systems more innovative and productive. “This project is a strong example of achieving these goals,” he points out. “We don’t get a lot of game-changers in our industry,” Spearman says, “but iPhone and iPad technology allows for the integration of communica- tion and productivity. We can be more efficient and proactive about prob- lems. The sky’s the limit. We’re very excited about it.” PepsiCo’s North America DSD system supports 17,000 Routes and 400,000 customers. Tablet solutions are replicating the entire format of the retail industry.

8. MOBILITY IN RETAILM O B I L E A N A LY T I C S mobile device’s make and model; the operating system it uses; its screen size, and the resolution it offers. Any or all of these variants can affect key metrics such as site visits, time spent on the site, pages viewed, content that’s accessed and actual conversion rates. Analytics opportunities — and challenges — enabled via shoppers’ mobile devices are multiplied when consumers enter, or even come near, the four walls of a retailer’s brick-and-mortar store. Mobile-enabled analytics can be used to gain a greater understanding of general traffic patterns and customer behavior, but can also be tied to more granular, individualized measurements of shopper activity. Solutions are available that track the signals emitted by customers’ mobile devices. This type of passive tracking is made anonymous so that no individual or personally identifi- able information about the device’s owner is collected. Instead, by tracking movement within a brick-and-mortar location, these solutions provide insights into store layouts, merchandising, signage and displays and staffing levels. By using sensors located throughout the store that can be adjusted The spread of mobile technology has opened up new data-gathering and analytics possibilities for retailers, but for many, turning the new waves of mobile-generated information into useful insights is still very much a work in progress. In the mobile commerce area, retailers realize the importance of getting a handle on the specifics of the customers’ experiences as they use their own smart mobile devices. While the actual dollar amount of purchases made directly via smartphones and tablets remains small compared to both online and store sales, it’s on the rise. More impor- tantly, while mobile conversion rates may lag those in other channels, the shopper’s mobile experience is playing strong roles in building engagement and overall loyalty to a brand. The thinking is that if retailers offer a mobile experience that appeals to their customers, they are more likely to make purchases via other channels, either digital or physical. To create the kind of experience that continues to appeal to a customer base with rapidly changing tastes, retailers need to constantly monitor key metrics around shoppers’ mobile usage — whether it’s through the retailer’s own app or a mobile-optimized website. Mobile-specific segmentation characteristics should include the SEPTEMBER 2013 MOBILITY IN RETAIL 13 Mobile-Enabled AnalyticsMobile analytics provide a better understanding of traffic patterns, customer behavior and shopper activity. BY ADAM BLAIR Walgreens delivers and tracks coupon redemption via mobile beauty app Pretty In My Pocket (PRIMP).

9. MOBILITY IN RETAIL chases to the consumer’s PRIMP profile via technology offered by Sparkfly, a mobile POS redemption platform. The Shopkick app, provides rewards to consumers in the form of “kicks” and includes retail partici- pants such as Target, Macy’s, Best Buy, Bath & Body Works and Urban Outfitters, enables measurement based on consumers’ actions in relation not only to the retailers but the products they offer. Users earn “kicks” for simply being present within a participat- ing store, but also for browsing and interacting with products, making purchases at the stores, and now making purchases from directly within the Shopkick app itself. Technologies that interact with mobile devices are also capable of providing clues about customer behavior. Electronic shelf labels from Pricer that include QR codes allow customers to “like” and “comment on products via their social media networks. The retailers and brand provide shoppers with more information about the product by direct- ing them to online content such as a Facebook page, the brand’s website or a YouTube video. Targeted benefits and discounts can be offered to shoppers who share their opinion while in the store. For their part, the retailers and brands can receive immediate feedback when testing new products, as well as information about marketing strategies and potential audiences for the products. • conversion rates for each offer. If retailers have individual information about their shoppers, derived from a customer loyalty program, they can also measure the impact of offer types and marketing messages on different customer segments. For example, Walmart is using analytics based around data from customers’ usual shopping habits to create suggested shopping lists for them. (See Customer Centricity page 4) Customers who have the Walmart app make more trips to the store and spend as much as 40% more than other shoppers. The interaction and analytical tracking doesn’t have to be done through a retailer’s own app. Wal- greens is piloting a program that launches, delivers and tracks launch, delivery and redemption of coupons for specific products from L’Oreal Paris, all the way to the brick-and- mortar store’s point-of-sale. Product coupons are delivered through a mobile/social beauty app, Pretty In My Pocket (PRIMP), and the coupons can be redeemed at Walgreens and Duane Reade locations in New York City. Because the coupons have individualized barcodes, the trading partners can connect itemized pur- to track different configurations (for example, a wide field for traffic within an entire department or a limited, narrow field to measure the impact of an end-cap display), these solutions can track variables such as where customers go first when they enter a store, how long they stay in particular departments, and when checkout lines begin to grow too long. Many retailers have also made investments in offering free Wi-Fi access to shoppers within their stores. Analytics can be applied to those shoppers that take advantage of the service, noting those that stay on the retailer’s own website or those that move to others — another strong potential indicator of showrooming activity. For those shoppers that use a retailer’s mobile app or website, and opt in to programs that the retailer offers, there are opportunities to gain a clearer picture of individual customer activity and how it relates to purchase patterns. When retailers send text messages, coupons or other location-based, real-time offers to shoppers based on their proximity to the store or to a specific part of the store, they can (and should) measure the response and 14 MOBILITY IN RETAIL SEPTEMBER 2013 the shopper’s mobile experience is playing a strong role in building engagement and overall loyalty to a brand. M O B I L E A N A LY T I C S

10. thank you to our sponsors A S u p p l e m e n t t o m o b i l e e n t e r p r i s e a n d RI S NE W S Ma g a z i n e p r o d u c e d b y AirWatch is the largest Enterprise Mobility Management provider in the world with over 1,400 employees globally. More than 8,000 companies trust AirWatch to secure and manage their mobile enterprise. With market-leading solutions for mobile security, device, email, application and content management, we simplify enterprise mobility. http://www.air-watch.com/solutions/retail?cid=70150000000nuRU Hughes provides Retailers managed network solutions that enhance the customer experience and increase employee satisfaction while streamlining operations to reduce costs and increase revenues. Hughes delivers high-performance secure--PCI compli- ant--networks, along with managed VoIP, WiFi, video training and digital signage solutions that can power your store of the future today. www.business.hughes.com Kronos helps organizations of all sizes unlock opportunities — hidden within their workforce processes — to control labor costs, minimize compliance risk, and improve workforce productivity. Our easy-to-own time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics solutions, along with strategic services, provide complete automation, high-quality information, and deliver the experience our customers expect. www.kronos.com MaaS360 by Fiberlink is the trusted enterprise mobility management solution to over 4,500 customers worldwide, delivering comprehensive security and management for applications, documents, email, and devices. Instantly web accessible, MaaS360 is easy to use and maintain, backed by the most responsive support and the best user experience in the industry. www.maas360.com SAP helps companies of all sizes mobilize their customer experience, their stores, and their entire value chain. Empower your workforce with mobile solutions for optimiz- ing in-store operations and improving service. Personalize the customer experience – in the store or on the go – leveraging technology that can influence purchasing decisions, anytime and anywhere. Experience Retail without Boundaries. Experience SAP. www.sap.com From mobile selling to omni-channel engagement, Starmount’s next generation retail solutions help retailers have more personalized, relevant, and dynamic interactions with customers — from point-of-interest to point-of-sale. Starmount works with a di- verse client base of leading retailers around the world, such as Pep Boys, Urban Outfit- ters, and Perry Ellis. Visit www.starmount.com.

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