MobiU2011 Lecture: ANLT211 Mobile Shopper - Arc Worldwide

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A mobile shopper research study
2011 Leo Burnett & Arc Worldwide
America’s most
important
shopping partner

©2011 Leo Burnett & Arc Worldwide | 2
Before too long, all shoppers are going to become mobile shoppers. The answers about how to win with
mobile shoppers are not about technology. It’s not about mobile sites vs. apps, iPhone vs. Android or even retailers vs. manufacturers.
The answers are found by looking through the eyes of the mobile shopper.
The sheer volume of mobile shopping has increased dramatically
over the last few years, and it is expected to continue growing
at a rapid pace. This growth is largely driven by the increase in
Smartphones. By the end of the year, Nielsen tells us to expect
50% of US wireless subscribers to own one.
With all of these technologically advanced phones in peoples’
pockets and purses wherever they go, the way people shop is
changing. Shoppers are beginning to develop preferences for
retailers that enable them to use their mobile phone to shop, but
retailers are still playing catch-up.
Research conducted by Brand Anywhere and Luth tells us 51%
of consumers are more likely to purchase from retailers that have
a mobile-specific website – but that only 4.8% of retailers actually
have one. And web retailers who have a mobile-specific website
can increase consumer engagement by 85%.
Mobile phones are proving important in-store as well. Accenture
conducted research that shows that 73% of mobile shoppers
favor using their phone to take care of simple tasks in a store,
while only 15% favor interacting with an employee.
There is simply no escaping the reality that
people are using their mobile phones to shop.
While it’s clear that the phone is quickly becoming an important
shopping partner, as we looked around, we found that very little
was clear about when, where, how and why people
mobile shopped.
Goal
Introduce you to mobile shoppers – who they are and how they use
their mobile phones to help them shop.
Shopping, of course, includes many more activities than simply
making a purchase. Shopping encompasses everything from
searching for an item, comparing products, and evaluating prices
– to researching benefits, gathering information about where to
buy it, and actually completing the transaction. The shopping
experience can also include activities done after the purchase, such
as returning or servicing a product. Mobile shopping includes using
your phone to facilitate any part of the shopping experience, from
looking up a store address, to reading reviews, sharing product
photos, tweeting price details, or using virtual shopping tools to help
visualize the product.
Process
We conducted a nationwide quantitative survey interviewing 1800
mobile phone owners. We used these quantitative findings to
identify the different types of mobile phone owners. From this, we
uncovered which types use their phone for shopping and which
don’t; which use it a lot, and which just occasionally; how they
use their phones within the shopping process; in what product
categories the mobile phone is used and in what ways.
We conducted qualitative research with 30 mobile shoppers. These
people used webcams and flip video to share their stories with
us. We also shopped with them as they used their phones in and
around the retail environment. This qualitative research helped us to
better understand why they do what they do; what they like about
the experience, and what they don’t; and what they’ll do in one
category versus another.
About Arc Worldwide
Arc Worldwide is the global marketing services company of the
Leo Burnett Group and a specialist in cross-channel activation.
With expertise in digital, direct, promotion and shopper/retail
marketing, Arc moves people everywhere they move – to
experience, to purchase, to recommend and to return. By
unearthing a deeper understanding of how and why people do
what they do, Arc develops award-winning creative solutions
that measurably impact behavior on behalf of the world’s leading
marketers – including McDonald’s, The Coca-Cola Company,
Procter & Gamble, MillerCoors and many others.
Contact for more information
Molly Garris
molly.garris@arcww.com
For copies of this white paper visit
http://leolens.leoburnett.com/

KEY FINDINGS
Mobile shopping is not one activity, it is many.
Not all mobile activities are created equal.
THE path to purchase is dead.
Now there are MANY paths to purchase.
As mobile changes the way we shop, category
norms may also need to be re-examined.
As mobile shopping moves from a fringe to a
mainstream behavior, we need to look to a small
group of Light Mobile Shoppers whose needs
represent the future role for mobile in shopping.
Shoppers look to retailers first, but they use
manufacturers for specialized support
when they shop.
6
7
8
9
10
Not all categories are mobile shopped
to the same extent and in the same way.
Certain categories deliver a more satisfying
mobile shopping experience than the others.
There is a need for mobile sites and apps.
Many drivers of positive and negative mobile
shopping experiences are similar regardless
of the category shopped.
1
2
3
4
5
Even though half of all mobile phone owners
are mobile shoppers, not all mobile
shoppers are created equal.

The shopping journey is no longer predictable,
linear nor straightforward
The mobile phone is the most proximate shopping option for
people. It’s the “anywhere device” that people always carry with
them. Without the limits of sitting at a computer or stepping in a
store, there are many different triggers for and moments people
will consider mobile shopping. We like to call this a
“shopping blip”.
If you have a few free moments while you’re waiting to pick up
your child after school you might do some “bite-size” shopping
where you’re looking at a Groupon deal of the day. Or maybe
you are in the doctor’s office and just passing the time with some
“down-time” shopping. The mobile phone provides an “always
on” opportunity. Think of it as the 21st century version of
window shopping.
Mobile is forging shoppers’ digital and
analog worlds into one
Before, people would browse a circular at home and bring a
coupon to the store. People searched and used coupons online.
Now, people can browse online, download on a phone, and use
a coupon in-store. Everything can be done at the same time. It’s
not such a sequential plotted path. The mobile phone is allowing
shoppers to extend the steps along the path to purchase beyond
their traditional confines.
Mobile is allowing people to shop on the spot
What once was a planned purchase, now may be less
pre-planned at home. Information is continually gathered and
decisions are altered as people move through the
shopping process.
‘Bite-size’
shopping
‘Down-time’
shopping
Always ‘on’
shopping
They take advantage of
access information and
deals later in the process.
A planned decision to purchase
can be over-turned with the
benefit of more information.
THE path to purchase is dead.
Now there are MANY paths to purchase.
321
Now, people can use their mobile
phones to digitally solicit opinions
from friends and strangers while
shopping in the store.
A planned decision can be over-turned in the store as the
shopper accesses new information. Shoppers are doing their
homework a little more casually.
Before using mobile, shoppers did most of their checking for
product availability before they ever went to the store. Now we
see that there is a large group of shoppers that are shifting this
towards the middle of the shopping process. This trend is also
happening with other activities like using a search engine or
checking a retailer’s website. We are seeing the shift happening
with browsing for coupons too. With the economy the way it’s
been, and the offers we’ve given them to entice them to buy,
we have trained people to continue looking for a deal throughout
their shopping process. And with mobile, they can and do.
21
First, people asked a friend’s
opinion before going to a
store to buy something.
Then, people could
read the reviews or
products online.
They make
shopping decisions
“real-time”
May need to improvise
on-the-spot
watching your
bid on ebay
in the
doctor’s office
deals of
the day
planned decision to purchase
KEY FINDING 1
Give people the access they want, when they want it.
Understand that there are now many paths to purchase. What’s
the user experience if they start their shopping journey on the
mobile site and they are looking for broad information? What
if they visit the mobile site mid-journey looking to see if a
retailer carries a specific brand? Or, what if they’ve made their
product selection and are just looking to score a deal? Each of
these shoppers is looking for something different, but all are
important and need to come away with a positive experience.
Make information available to shoppers in meaningful ways
and important places. Don’t assume you know when your
shoppers will interact with your mobile sites and apps. Make
sure you are creating relevant mobile interactions that can
happen early, mid, late or repeatedly in the process.
IMPLICATION

{ Considered }
{ Casual }
+{ Casual }
{ Considered }
+
Considered becomes casual
Categories that were shopped with great consideration may now
see a more casual approach. For instance when shopping for
appliances, people do their “homework” to shortlist, but often
need to improvise or access more information in-store anyway.
The model they have selected may not be on the floor and now
they need to re-evaluate their choice and learn about a similar
model or a competing brand.
Before, this shopper may have returned home to conduct more
research on the computer or he may have relied solely on in-
store customer service to make his choice. Now he has access
to new information through his phone. This helps shoppers be
a bit more casual about what they need to have in place before
entering the store.
Take Volkswagen for example. They recently launched the GTI
exclusively with an iPhone app. It became the number one
downloaded app in 36 countries. It was an idea that seamlessly
integrated the brand with play and utility for a real measureable
return and it redefined how a car can be sold in the digital age.
People casually browsed for a car just because they could.
Casual becomes considered
The opposite is also happening. Categories that may have gotten
minimal consideration before, now receive more attention. Take
something as simple as getting coffee. It’s no longer just a matter
of walking into a coffee shop. At Starbucks, people can look up
locations, load up their reward card, explore nutritional information
and even pay in select stores.
With gas prices the way they are today, people are giving this
category a lot more consideration as well. The GasBudyy app helps
shoppers find the cheapest gas nearby.
As mobile changes the way we shop,
category norms may also need to be re-examined.
KEY FINDING 2
Think outside of category norms.
If you assume shoppers are well-planned, they may not be.
Be prepared for a more casual, improvised and real-time
interaction. If you think shoppers are not involved - think again
- they may be up for a more engaging shopping experience
than we currently offer.
IMPLICATION

779358300
Heavy Mobile
Shopper
Mobile Activity Index General Shopping Index Mobile Shopping Index
161 118
57
Light Mobile
Shopper
One size does not fit all
So let’s look at a few examples of the difference in activities. 93% of
heavies look up store addresses, hours or locations. Only 47% of
lights do. And interestingly, this is the most commonly done activity
among the light users. That’s quite a gap. But the gap gets bigger.
Looking at shopping apps, we see that 55% of heavies use them
once a week or more – and that 51% of light mobile shoppers use
them once a month or less. When we get to specialized activities
the gap widens even more dramatically. Using gift guides on a
mobile is done by almost 7 times as many heavy mobile shoppers
as light mobile shoppers.
Heavy Mobile Shoppers
Light Mobile Shoppers
Mobile Non-Shoppers
No Mobile Phone
Meet the mobile shopper
When we look at adults 18-64 in the US, we see that 10% don’t
have mobile phones. We also see that an additional 40%, while
owning mobile phones, are not mobile shoppers. Approximately
50% of adults 18-64 in the US are currently mobile shopping.
These people fall into two groups, and there are some real
differences between them. The critical point to note is that a very
small group (around 20% of all mobile shoppers) are driving a
majority of the mobile shopping activity volume.
The gap between heavy and light mobile shoppers is enormous,
and it centers around the nexus of mobile and shopping. Heavies
love their phones. They do things like share photos, download
music and check the news. They also love just plain shopping –
whether it is at home, on a computer, or in the store. AND THEY
ARE REALLY INTO MOBILE SHOPPING. When it comes to
mobile shopping, Heavies index 10 times higher than Lights.
At the most fundamental level, light mobile shoppers have a rather
narrow outlook toward mobile with regard to shopping. They see it
primarily as a mini-portable computer, and therefore primarily use
it in the car and on the go. 62% of light mobile shoppers told us it
was just easier to go online from a computer vs. shopping on
their phone.
In contrast, Heavy mobile shoppers know and use mobile as a
specialized tool for shopping.
10%
10.3%
40.6%
% of Total US Adult Population, Age 18 - 64
Look up store address,
hours or locations
Use gift guides on
mobile
Use mobile
shopping apps
47%
8%
51%
93%
54%
55%
Once a
week
or more
Once a
month
or less
Skew dramatically younger
67% are 18-34 yrs
Polar income levels
- below $40K or over $75K
They are more open-minded
and willing to try more with
their phones
Funnel their lives, including
all their shopping through
their phones
Even though half of all mobile phone owners are mobile
shoppers, not all mobile shoppers are created equal.
KEY FINDING 3
Future growth will come from the light
mobile shoppers.
While heavy mobile shoppers have entirely driven the growth
of mobile shopping thus far, the growth in the future is going
to come from light shoppers who have a very different outlook
toward mobile today. Engaging them, and as a result, winning
in the future, is going to require a very different approach than
what may have attracted the current group of heavy
mobile shoppers.
IMPLICATION
39.1%
57% male
Likely to have
the latest phones
iPhone dominant
Leaders and in-the-know
Limited view of how to use
mobile phone in shopping
40% earn $75K +
Lack of trust
Less into both mobile
and shopping
Handicapped by technology
- BlackBerry and
Android apps
78% have downloaded
an app, only half have used
an app for shopping
52% female
Engrained non-mobile behaviors
27% own a BlackBerry
25% own an iPhone
More likely single
59% have at least
2 shopping apps on phone
More mobile shopping activities,
and in more categories
57% are 25-44 yrs
High correlation between amount a category
is mobile shopped and level of satisfaction
Light Mobile Shopper
Heavy Mobile Shopper
{ 20% of Mobile Shoppers are Heavy Mobil Shopper }
vs.
{ 80% of Mobile Shoppers are Light Mobile Shopper }

779358300
Heavy Mobile
Shopper
113
Mobile Activity Index General Shopping Index Mobile Shopping Index
289305
161 118
57
Light Mobile
Shopper
High Potential
Mobile Shopper
Lights shall inherit the future
From the nearly 40% of light mobile shoppers there is a small
group of people that have the greatest potential of becoming
heavy mobile shoppers.
These High Potentials share a similar level of engagement in
mobile activities and shopping activities with the heavy mobile
shoppers. But they haven’t really converted their shopping
activities onto their mobile phones.
There are several factors that hold them back from converting their
love for mobile and love for shopping into mobile shopping. Quite
simply, they have limited awareness of what the mobile phone can
do with respect to shopping. They get the basics, like search, and
will visit mobile sites. They also check their mail for deals
they’ve received.
Their knowledge of shopping apps is limited. They aren’t even
aware that many of their favorite mobile sites are also available
as easily usable apps. And this is really no surprise when we visit
the Apple app store, for example. There are over 300,000 apps
to choose from. These apps are organized into categories, and
shopping isn’t one of them. There were some apps grouped
together over the holidays, and this may have helped some, but it’s
not typical or permanent.
The phone is a specialized shopping tool
The challenge is to help the next generation of shoppers move
from thinking of mobile as “an inferior substitute for the computer”
to “a tool that helps me save time and money, and enhances my
shopping experience on the go and in the store”. If we look to
Sephora, for example, we see how they are helping shoppers
see the benefits of mobile. In a mailing sent to their current
customer base they communicate that they have a mobile app and
specifically speak to its benefits as a shopping tool, a clear effort to
Not all shoppers are the benefits of mobile
One example of the varied behavior between these two groups is
how they behave when the store is out a product they are searching
for. The high potential heavy mobile shopper abandoned the sale
when she got to the store and they didn’t have the product on
the shelf. Alternately, the heavy mobile shopper jumped on his cell
phone and bought the out-of-stock item from the store’s
mobile website.
Converting these high potential mobile shoppers into heavy
mobile shoppers requires reframing the perception of mobile
for shopping. Because these shoppers aren’t into the novelty
and experimentation, they need to see the functional benefits of
shopping with a mobile phone.
High Potential Mobile Shopper
As mobile shopping moves from a fringe to a mainstream behavior,
we need to look to a small group of Light Mobile Shoppers whose needs
represent the future role for mobile in shopping.
KEY FINDING 4
help this reframing. They are heavily promoting this app in their
store windows and at store shelves.
5.8%
Reframe the perception of mobile for shopping.
Emphasize the functional benefits. Position mobile as a
specialized shopping tool that helps save time and money.
Reinforce mobile’s ability to give more control and an enhanced
shopping experience in the store and on the go.
IMPLICATION
Heavy Mobile Shoppers
Light Mobile Shoppers
10%
39.1%

Mobile shopping is not one activity, it is many.
Not all mobile activities are created equal.
KEY FINDING 5
93%
70%
47%
15%
Look for deals for nearby stores Use gift cards
83%
63%
20%
9%
Leverage existing platforms for the native mobile shopping
behaviors and design proprietary mobile solutions for native
shopping behaviors.
Core mobile tasks: Cover the basics such as optimizing email and
search functionalities with technology vendors such as google.
Core shopping tasks: Create proprietary retailer solutions
based on core shopping behaviors and customized by category.
Specialized mobile tasks: Partner with industry leaders such
as facebook or YouTube.
Advanced shopping tasks: Take core shopping activities and
enhance them within your own platform. Understand that these
shoppers are looking for functional benefits.
IMPLICATION
Look up store address, hours, location Receive, share photos of products
CORE MOBILE TASKS SPECIALIZED MOBILE TASKS
CORE SHOPPING TASKS ADVANCED SHOPPING TASKS
Activities are influenced by mobile and
shopping behaviors
There are some well-adopted activities and others that are
used much less frequently. Some of these activities are highly
influenced by mobile behaviors. Others are strongly influenced by
shopping behaviors.
Mobile shopping activities can be grouped into four quadrants.
At the top of this chart we see activities that are born out of
mobile behaviors. Activities on the bottom of the chart are
derived from fundamental shopping behaviors. Within this
structure there are more adopted and less adopted activities.
The less adopted tend to be more specialized or advanced.
Some activities are done more than others
Stepping back, we see through these four examples how
activities that are basic are most adopted, particularly those
native to mobile. Penetration drops off the most when we move
into the advanced activities derived from native
shopping activities.
Shoppers like to price compare
Retailers need to look at how they provide this capability. In
the absence of a custom retailer solution, shoppers will turn
to an app like amazon price checker or red laser. With these a
retailer risks losing the sale to a competitor. However, Target,
Best Buy and Toys R Us are examples of retailers that have
built a price check feature into their own app. With this, they
have the opportunity to not only provide pricing information but
also provide product information that is seen as valuable to the
shopper and can potentially keep the sale within your store.
Retailers have the opportunity to get their inventory in front of
local shoppers by partnering with Milo, a local shopping search
engine. Milo searches the shelves of local stores to find the
best prices and availability, thus satisfying the need of instant
gratification for shoppers.
CORE MOBILE
TASKS
CORE SHOPPING
TASKS
SPECIALIZED
MOBILE TASKS
ADVANCED
SHOPPING TASKS
More Adopted Less Adopted
Native Mobile Activities
Native Shopping Activities
The Home Depot app is highly
customized to meet the needs of
the do-it-yourself home repair person.
The Target app creates tools that are
helpful broadly across a variety of
categories. For example, when you set
your Target store, the app will tell you if
your store has the item you want in stock
and even what aisle to find it in.
More Adopted Less Adopted
Native Mobile Activities
Native Shopping Activities

Core
Considered
Not Relevant
Locating Product/
Retailers
Comparing
Prices
Finding Coupons/
Offers/Sales
Getting Service/
Support
Using and Giving
Ratings/Reviews
Choosing
From Options
Making ListsOrdering and Paying
Framing OptionsEarning Rewards
Restaurants
49% 49%
25%
7%
41%
25%
12%
2%
Apparel Appliances Average CPG
Look up location, hours, etc.
Make a shopping list
Give a public review or rating
Order for pick up and payment in store
Make a shopping list
Look up reviews and ratings
Scan barcode to compare prices
Look up product information
Receive coupons & sales notifications
Gather ideas and information
Ask opinions from friend/family
Access public opinions
Find coupons and deals
Gather ideas and information
Participate in retailer loyalty program
Tweet for customer support
1
3
2
4
Restaurants
Appliances
Apparel
CPG
6
8
5
7
9
11
13
10
12
14
15
17
19
16
18
20
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Not all categories are mobile
shopped to the same extent
and in the same way.
We looked at mobile shopping in 36 different product and service
categories and observed a remarkable difference in penetration
levels, with some categories like travel being significantly higher
than categories like CPGs. Moreover, the relative gap between
heavy and light mobile shoppers also widened as category
penetration fell. Here you see in depth how those levels vary
for four categories—restaurants, apparel, appliances, and a
collection of CPGs.
There is a range of activity relevance.
We also examined 33 different mobile shopping activities across
the four categories above, and developed a framework for
examining activity relevance based on adoption levels and
activity type.
Some activities are core to a category—they are intrinsic to how
people shop the category and therefore are activities shoppers
have naturally become adapted to doing on their mobile phones
in some form or another. Manufacturers and retailers can offer
mobile solutions that improve the way shoppers are adopting
such activities.
Then there are considered activities that are relevant to the
category but not currently being done on the mobile phone.
The barrier to adoption is often a lack of awareness and
understanding. Once exposed to such activities, shoppers
appreciate their utility and they are open to integrating such
activities into their lives. Developing these types of solutions
offers the greatest potential in changing behaviors and driving
mobile adoption.
Lastly, there are activities that are not relevant to the category and
hence something shoppers will not consider doing on their mobile
phones either. Knowing which activities fall into this group and
de-prioritizing such efforts can allow retailers and manufacturers to
focus on the solutions that matter most to shoppers.
Each category has a unique activity radar.
Where each specific activity falls on this map will depend on the
category being examined, such that each category would have a
unique imprint or “radar.” Some examples of activities for the four
categories examined are shared here.
KEY FINDING 6
Apparel shoppers are very responsive to deals, hence they use
their mobile phones to receive deals notifications all the time. Here
too, shoppers are open to using the mobile phone to get real-time
opinions of friends and family who may not be in the store with
them, even if they may not be ready to use public social networks
to do the same. And, because an in-person store visit is so
important to an apparel shopper to see the product fit and to feel
it, the relevance of public opinions may not have much relevance.
Shopping for appliances is a complex, information-intensive, and
time-consuming process. Oftentimes, the products people find on
the shop floor are different from the products they had shortlisted
in their desk research. Shoppers have shown the resourcefulness
to whip out their mobile phones in-store and access the details of
new products as they encounter them. Using mobile phones to
make a shopping list is a different story, given the limited number
of items people are usually shopping for.
CPGs are truly different and, given their relatively low level of
adoption for mobile shopping, only activities such as searching
for coupons or making lists are something shoppers are currently
doing, and that too in a rather rudimentary fashion. There is
opportunity for retailers and manufacturers to bring some
advanced functionality with mobile apps to these activities and
to move additional items into the shopper’s consideration set.
Some activities are so integral to shopping that their relevance
is evident across multiple categories. Pricing information is
so valuable to shoppers that this is an example of an activity
that shoppers would highly consider doing while shopping for
appliances (given the price tag), for apparel (given the possibility
of finding deals) and CPGs (given the ease).
In contrast, some activities may be well adopted in one category,
but not relevant in another. For example, an activity such as using
your mobile phone to place and order, and then later paying
and picking up in-store is already a core behavior in fast-food
shopping. To create efficiency in their weekly routine behaviors,
CPG shoppers might also consider doing such an activity. But for
appliance shoppers this has little relevance, since they want to
first see the product before they decide to purchase it.In the restaurants category, for example, people use their mobile
phone to locate restaurants and read reviews and ratings—activities
they might have previously been doing on their computers. And
because they use customer reviews and ratings, they are also
open to giving such reviews and ratings themselves. Here, a mobile
phone can provide an effortless and fun way for shoppers to
capture and share reviews real-time so as to avoid losing the review
in the time it takes to get home.
Mobile shopping solutions should be designed category up.
It’s not a one-size-fits-all. Underlying category behaviors are
a good indicator of which mobile shopping activities will play
a prominent role and which will not.
IMPLICATION

Light mobile shoppers have less satisfaction
based on inexperience
We looked at mobile shopping satisfaction in 36 categories. We
see that the satisfaction levels vary quite a bit between heavy
and light mobile shoppers. The horizontal access on this chart
shows mobile shopping penetration. The vertical access shows
the percent of people satisfied with their experience. The dots
represent different product or service categories.
Overall, we see that light mobile shoppers are satisfied in fewer
categories. The category penetration levels tend to go hand-in-hand
with the satisfaction levels. The lower the penetration, the lower the
satisfaction. And in general, the satisfaction levels are lower than
those of a heavy mobile shopper. With heavy mobile shoppers, we
have to take a closer look at satisfaction levels.
Light Mobile
Shopper
Why is it that even within the same level of penetration there are
different levels of satisfaction? Take restaurants. Here we see high
satisfaction levels, even with different penetration levels between
quick service and full service restaurants.
With restaurants, people rely on the comments of others to predict
a good dining experience. Apps like Yelp make it easy to set up
a successful purchase experience with the ability to search for a
Satisfaction with shopping experience
(% Top-3-Box on 10-pt scale)
Product category penetration
(% ever shopped with mobile phone)
Certain categories deliver a more satisfying
mobile shopping experience than the others.
KEY FINDING 7
80
60
40
20
0
80
60
40
20
0
0 20 40 60
0 20 40 60
Heavy Mobile
Shopper
Heavy Mobile
Shopper
0 20 40 60
80
60
40
20
0
place to eat and the opportunity to read reviews from an active
community of locals in the know.
But with something like appliances or apparel, the shopper needs
to walk into the store to view the product. Seeing a washer or
a pair of jeans on a phone will not provide enough information
to make a confident and informed purchase decision. So even
though full service restaurants and apparel share a similar
penetration level, the apparel mobile shopping experience has
many fewer satisfied shopping experiences.
Even with similar usage levels,
people are more satisfied with experiences
in some categories than others
In low involvement categories, you have to deliver exponential
value vs. the required effort to change behavior. For instance,
deliver deals that are only available on the phone, or provide
tools that deliver greater efficiency.
With higher involvement categories, mobile has to add value
by enhancing the necessary in-store experience in order for
satisfaction ratings to rise. For instance, in categories like
autos and furniture, provide ratings and reviews that are easily
accessible in the store to enhance shopping experience.
IMPLICATION

Positive experiences
Generally, people like sites that load quickly and give the essential
information. They like the freedom of accessing information
anywhere. They like discovering new apps or sites that work well,
and when their expectations are exceeded that’s pleasing as well.
Optimize the mobile user experience
Amazon does a great job of optimizing the user’s mobile
experience. On the website, the new customer is asked to create
a lengthy profile about herself and her preferences. But, on mobile,
Amazon realizes the person is on the go and offers a streamlined
experience, so the user is only prompted to fill in basic fields.
Macy’s did a great job of exceeding shopper expectations with
their mobile site over the holidays. They had a special holiday
feature called “Macy’s Believe”. To unlock the magic, the user was
instructed to turn their iPhone horizontal. This unlocked different
content. Macy’s then delivered a page refresh that surprised
shoppers with a fun and unexpected experience.
Negative experiences
When it comes to negative experiences, people are annoyed by
technology bugs. They don’t like getting bounced from an app to
a site because the app isn’t fully useful. They dislike when they are
given information overload or have to opt-in too early in the process.
They also don’t like having their rewards expectations go unmet.
Clearly, performance is critical. Here are some specific
suggestions.
Many drivers of positive and negative mobile shopping experiences
are similar regardless of the category shopped.
KEY FINDING 8
Performance counts
Sites that load quickly
Ability to make a purchase decision regardless of where
you are
Instant access to product, inventory and price information
The excitement of discovering a new mobile activity, app
or mobile site that works well
When experience exceeds expectations
Sites that provide essential information
Technology bugs like slow loading sites, crashing apps,
price scans that don’t work, limited phone reception.
Getting bounced from an app to a website. It’s only half
useful.
Inconsistent information between the store, mobile site
and an app.
Difficulties in narrowing or refining a product search.
Too much information to navigate on a small screen.
Having to opt in and register for an app
before you know if you even want it,
and filling in too many fields of information.
Unmet reward expectations.
:(:(:(:(
TEST across as many handsets, platform and browser
combinations as possible using online testing tools and
preferably, where possible, actual handsets.
CONSIDER limited memory resources and optimize to use the
minimum amount of memory.
REMOVE unnecessary code and features.
LOAD test to measure performance and scalability.
CONSIDER power consumption to conserve phone
battery power.
:(:(:(
:):):):):):)
All this means that it’s important to conduct rigorous Quality
Assurance testing to eliminate bugs, and to ensure you’ve
designed your user experiences for a mobile phone, not a
computer. Provide consistent information across channels, and
surprise and delight mobile shoppers.
IMPLICATION

Mobile sites have their advantages
Mobile sites are necessary. Visiting mobile sites is one of the few
activities that light mobile shoppers do, and shoppers regularly
rely on mobile sites when apps crash. Mobile sites can deliver
real-time information.
The Mobile web has evolved. For phones like iPhone and Android
that use Webkit browsers, enabling retailers and brands to deliver
app-like experiences without the need for an app download.
For other phones that can access the mobile web, similar
experiences can be created to increase engagement.
For example, the Bloomingdale’s mobile website can be viewed
on a Blackberry or an iPhone. But for Blackberry users, the
menus are extended to mimic a scrolling Blackberry user. While
the iPhone site is more compact for quick touch navigation.
These customized experiences help transfer current mobile
behaviors to mCommerce sites.
Mobile web can
bridge shoppers to
more functionality
The Mobile web is great at
achieving the basics but today’s
Smartphones have the ability to do
so much more – like determining
your location with GPS or
capturing images with the phone’s
cameras. As a result, to create app
awareness and nudge shoppers to
the optimized experience, brands
and retailers put banners on their
mobile site for devices that have
an app available.
Retailers and manufacturers need to treat apps
differently than mobile web
Apps have to be treated differently than mobile websites. For
example, Kraft uses their mobile website to deliver basic content
such as recipes. Their app, on the other hand, provides the
opportunity to use a phone’s camera function to take pictures of
food items in the cabinet and add them to a shopping list. Coupons
can be scanned and added to loyalty cards.
Apps have their advantages too
Mobile apps are necessary too. Downloading apps is a common
activity for heavy mobile shoppers. Apps are pre-loaded to their
phones and offer custom information within a touch or two.
And Apps deliver a predictable experience. Apps have their
unique advantages. They can take advantage of the phone’s
functionalities, like the accelerometer or use location-aware
functionality to deliver more customized engagements. Apps are
built for specific platforms, so they can deliver a rich
user-friendly experience.
There is a need for
mobile sites and apps.
KEY FINDING 9
• Eliminates the need for a download
• Easily optimized for search
• Stronger reach
Offer a fluid and functional shopping experience that
recognizes the unique role for both. A strong mobile site
should focus on delivering a simple experience, or shoppers
will navigate elsewhere. Use an app to integrate the phone’s
functionalities to automatically pull GPS coordinates or pull
colors from photos.
Know that shoppers may search for your mobile website or
open your app, without thinking about why they selected one
or the other, so be consistent with information. The heavy
shopper, however, will clearly appreciate the more advanced
customization and fun that your app delivers.
IMPLICATION

Scan for Giada De Laurentis’ Seafood Shrimp
Cocktail recipe or visit Target.com/Giada
for this recipe and more.
Information found on retailer sites isn’t enough
They may go to retailers first and more often, but they don’t find
all that they need so they also have to visit manufacturer sites to
find that information. Rather than risk losing shoppers, provide
important manufacturer information within the retail experience.
Some shoppers told us that with retailer websites they don’t find
the details they need to make a decision. And the information
they are given seems more like an ad. Mobile Shoppers are
looking for a balance of retail and manufacturer data.
Manufacturers and retailers must work together
While retailers have been leading the way with mobile
initiatives, they may not always have access to detailed product
specifications, lists of matching accessories, warranty information
and other data that could influence their purchase.
Here we see Target partnering with Giada to offer exclusive
product. Using mobile, shoppers can scan a QR code found in
a holiday gift guide to access relevant holiday recipes that are
co-branded with Giada. This sits within the Target mobile site for
quick access to other products.
Visit retailer website
Visit manufacturer website
31%
21%
91%
79%
Shoppers look to retailers first,
but they use manufacturers for specialized support when they shop.
KEY FINDING 10
Manufacturers and retailers must work together. Retailers need
to lead, but partner with manufacturers to deliver category-
specific content. Manufacturers that create content that directs
shoppers to a specific retailer offer those same shoppers the
opportunity to have a comprehensive experience that pulls
them all the way through the purchase.
IMPLICATION
L’Oréal partnered with Walgreens by creating endcaps featuring
Youth Code. Often times shoppers are overwhelmed with
product choices in the skincare category. With this display,
shoppers can use their phones to learn more about the product.

Non Mobile Shoppers
0
25.00
50.00
75.00
100.00
000000000000000 000000000000000
567
910
12121314
161616
33
70
97
M
ake/receive
phone
calls
Textm
essaging/SM
S
Picture
M
essaging/M
M
S
Access
the
internet
Send/receive
em
ail
Play
a
gam
e
InstantM
essaging
Look
up
info
using
a
search
engine
Listen
to
dow
nloaded
m
usic
Check
w
eatherornew
s
Look
up
directions
orm
aps
Visitusergenerated
w
ebsites
Share
contenton
usergen.w
ebsites
G
PS
orlocation
based
services
M
obile
banking
orcom
m
erce
Non Mobile Shoppers primarily use their phone
making phone calls and for text messaging.
% who do the following activities at least once a month from their mobile phone
Appendix 1

47
40
32
31
25 24 23 22 21 21 21 20 20 19 19 19
17 16 16 15 15 14 14 13 13 13
11 11 11 10 10 9 9 9 8 8
6
93 94
85
91
93
78
86
84
86
79
73 73
83
81
74
85
82
67
71 70
78
73
64
59
57
68
70
62
58
61
65
63
59
63
54
61
52
0
10
20
30
40
50
60
70
80
90
100
Look
up
store
address,hours
orlocation
Use
a
search
engine
during
yourshopping
process
Receive
notications
aboutin-sto
re
prom
otions/offers
Visita
retailerw
ebsite
(eg.bestbuy.com
)
Look
atprices
on
a
retailers
w
ebsite
Referback
to
retailerem
ails
you
have
saved
Look
up
online
productinform
ation
w
hile
in
a
store
Com
pare
physicalstore
prices
w
ith
online
prices,in
store
Read
custom
erratings
orreview
s
ofa
product
Visita
m
anufacturerw
ebsite
(eg.w
hirlpool.com
,)
Receive/Share
texts
aboutproducts
from
friends/fam
ily
M
ake
a
shopping
list
Look
fordeals
fornearby
stores
Check
on
the
status
ofan
order
Read
custom
erratings
orreview
s
abouta
store
Com
pare
products
from
yourm
obile
phone
Search
elsew
here
w
hen
the
productis
out-of-stock
Calculate
price
com
parisons
fordifferentsize
products
Receive/Share
contentaboutproducts/stores
on
usergen.sites
Receive/Share
photos
ofproducts
from
friends/fam
ily
Check
in-store
availability
ofa
product
Brow
se
coupons
from
yourm
obile
phone
Use
an
app
orm
obile
shopping
application
Use
barcodes
orscanning
to
getpricing
orproductinfo
Use
a
coupon
from
yourm
obile
phone
G
ather/Share
opinions
abouta
product/store
from
friends/fam
ily
Brow
se
store
circulars
from
yourm
obile
phone
Participate
in
a
sw
eepstakes,gam
e
orprom
otion
offer
Place
an
orderahead
oftim
e
to
ensure
a
quickerpick
up
Tweetortextprice
details
to
see
ifthe
dealis
w
orthw
hile
Use
retailercom
parison,selectororcustom
ization
tools
Use
giftcards,rew
ard
cards,orgiftregistries
View
productdem
os
Add
a
productto
a
w
ish
listorfavorites
Use
giftguides
(eg.look
fora
giftunder$100
ora
giftform
om
)
Com
pare
paym
entplan
options
(eg.m
ortgage
calculator)
Utilize
virtualshopping
tools
thathelp
you
visualize
the
product
Some mobile shopping activities are more adopted than others
Appendix 2

0
25.00
50.00
75.00
100.00
Fullserv.restaurants
DigitalcontentEventtickets
Travel
Food
orbeverage
H
otels
orresorts
Books
Bars
and
C
lubsApparel/clothes
C
onsum
erelectronics
Q
uick
serv.restaurants
Banking
services
C
ellphone
Service
Providers
C
om
puterhardw
are/accessories
Sporting
G
oods
H
om
e
Appliances
Furniture
orH
om
e
décor
Autom
obiles
Subscription-based
content
Realestate
G
reeting
cards,flow
ers,orgifts
H
aircare,skin
care,beauty
products
EducationalProducts
C
arInsurance
Skin
care
productsPetsupplies
O
ver-the-counterm
edications
O
ther(please
specify)
Prem
ium
designerjeansC
erealO
ralcare
products
Laundry
detergent
C
arbonated
beverages
Pre-packaged
organic
foods
Energy
drinks
Fem
inine
protection
N
one
ofthe
above
7
3
6
9
7
11
7
6
9
1
15
10
19
16
18
2222
19
18
24
32
25
26
30
39
34
25
47
49
36
4747
4645
52
44
49
20
011222222
4
555
67
7
1010
1112121314
17
21
22
24
25
2626
3636
3738
4141
Some categories are more heavily mobile shopped than others
Appendix 3

It’s just easier for me to go to online from a computer than to shop on my mobile device. 62% 49% 35%
I am usually near a computer so I really don’t see the need to shop from my mobile device. 50% 46% 31%
I think shopping from my mobile phone takes more time than shopping online. 48% 47% 29%
I don’t have very many occasions when I need to shop from my mobile device. 46% 41% 22%
The websites I access on my mobile device are much less user-friendly than the websites I access on my computer. 42% 36% 31%
I really don’t have the need to shop from my mobile phone. 40% 27% 16%
It’s just easier for me to go to a store than to shop on my mobile device. 37% 35% 25%
Once I am actually in a store I have no need to shop from my mobile device. 37% 29% 20%
The screen on my mobile device is too small to see things clearly. 37% 34% 20%
I don’t think shopping from my mobile phone is very convenient. 35% 25% 21%
The websites I access on my mobile device have much less of the same content, features and functionality. 33% 35% 26%
It is difficult to search for products and/or services on my mobile device. 32% 25% 18%
It is difficult to use and/or search for coupons on my mobile device. 31% 28% 27%
I am worried about the security of mobile payment services. 27% 25% 25%
The internet access on my phone is too slow to shop effectively on my mobile device. 27% 21% 18%
I think shopping from my mobile phone would take just as much time as shopping online. 23% 18% 15%
I am not certain that the transaction will be completed while shopping on my mobile device. 13% 15% 14%
I am not certain that my phone number will be kept private while shopping on my mobile device. 12% 6% 16%
None of the above. 9% 17% 20%
Heavy Mobile
Shopper
Light Mobile
Shopper
High-Potential
Mobile Shopper
Mobile Shopping Barriers
Appendix 4
Percent of shoppers who
checked the statement

MobiU2011 Lecture: ANLT211 Mobile Shopper - Arc Worldwide

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MobiU2011 Lecture: ANLT211 Mobile Shopper - Arc Worldwide