This document discusses how consumer shopping behaviors are converging online and offline as mobile technologies emerge. It outlines how consumers now use their mobile devices to discover products, get opinions from friends, compare prices, create shopping lists, share purchases, and receive coupons. The document also notes that retailers can engage shoppers across the new consumer journey by providing personalized recommendations, incentives, and hands-free payment options using mobile technologies. It encourages retailers to embrace new consumer behaviors and enhance the shopping experience through mobile.
11. • Making and accessing lists
• Soliciting opinions on the spot
• Scanning and tagging products
• Sharing location and purchases
MOBILE BEHAVIORS EMERGING
13. THE TOOLS
• SMS and MMS
• Downloadable Apps
• Mobile Websites
• Check-in Features
• Barcode Scanners
• Augmented Reality
• Digital Out of Home
• Payment Peripherals
15. DISCOVER &
LOCATE
Nearly 1/3 of all smartphone owners surveyed
reported calling or stopping into a local business after
finding it by using a local search application
- Q1 2010 Smartphone Intelligence survey, Compete
16.
17.
18.
19. COMPARE PRICES
Nearly ¼of shoppers use their phone while in a
store to competitively price shop an item
- Sterling Commerce and Demandware, 8/10
30. 40% of smartphone owners have called someone to get
an opinion on an item they are considering purchasing
while in a store. 39% have sent a text and 30% have
sent a picture of the product to solicit feedback.
– Q1 2010 Smartphone Intelligence survey, Compete
OPINIONS
42. - InsightExpress June 2010 Digital Consumer Portrait
Have
them
sent
to
me
via
SMS;
45%
Text
in
to
receive
while
I'm
in
store;
27%
Find
them
myself
using
an
app;
28%
Column1
Have
them
sent
to
m
via
SMS
Text
in
to
receive
while
I'm
in
store
Find
them
myself
using
an
app
How would you like to receive coupons on your mobile phone?
43.
44.
45.
46.
47.
48. RELEVANT &
PERSONAL
77% of
consumers bought
more when online
retailers made
personalized
product
recommendations
36% are more
loyal to retailers
that provide true
personalization in
the shopping
experience
- The E-Tailing Group, 2008
49.
50.
51.
52. PAYMENT$
2/3 are interested in the possibility of using their
mobile phone to scan and purchase items,
enabling them to bypass checkout lines
- Sterling Commerce and Demandware, 8/10
DIGITAL TOOLS ARE MOVING OFFLINE THANKS TO MOBILE, CREATING A GENERATION OF CONNECTED CONSUMERS IN A HYPERLINKED WORLD.
BUT WE DON’T WANT TO FOCUS ON THE TECHNOLOGY HERE, WE WANT TO FOCUS ON THE CONSUMER
TOO OFTEN WE ARE BLINDED BY FLASHY NEW TECH THAT DOESN’T ACTUALLY SERVE CONSUMERS NEEDS, OR DOESN’T TAKE HUMAN BEHAVIOR AND HUMAN PSYCHOLOGY INTO ACCOUNT. A GREAT EXAMPLE IS THE RUSH TO CREATE BRANDED APPS, MANY OF WHICH SIT UNTOUCHED IN THE APP STORE BURIED UNDER ANGRY BIRDS.
SO HERE WE WANT TO FOCUS ON WHAT CONSUMERS ARE ACTUALLY USING WHY THEY ARE USING ITAND HOW TECHNOLOGY CAN BE EMPLOYED TO IMPROVE THEIR RETAIL EXPERIENCES AND MAKE THEM WANT TO COME INTO A STORE
SO LETS START WITH THE BASICS OF HUMAN PSYCOLOGY: WHY PEOPLE SHOP. THEY SHOP FOR LOTS OF REASONS AND HERE ARE JUST A FEW.
Pre-shopping – consumers like to infoload before making purchases and the web puts tons of information at their fingertipsPrivacy – naked, no one staring at you or judging, no snobby salespeopleConvenience – faster, no linesAvailability – bigger supply available, more than one retailerLower barriers – one click, feels like play moneyProcrastination – peak shopping hours are 9-5Temptation – the store windows are in your INBOXONLINE YOU CAN BE WHERE THE CONSUMER IS, ALL THE TIME, RETAILERS ARE GOING IN TWITTER AND FACEBOOK
STILL SOMETHING ABOUT STORES THAT YOU CAN’T GET ONLINEMore prone to discover things that we’re not searching for, more serendipitousShopping can be an emotionally-driven experience, that plays upon all the senses. Store are able to construct an environment that creates emotion, encourages behavior and influences consumers in certain ways. Just think about the smell of coffee at startbucks or fresh bread when you walk by a bakery.
MOBILE IS COMBINING THESE TWO MODES OF SHOPPING AS BITS AND BRICKS ARE NO LONGER SEPARATEONLINE IS NOW EVERYWHERE
WE ARE SEEING ONLINE BEHAVIORS HAPPEN IN THE ACTUAL STORE THROUGH THE MOBILE DEVICETHIS IS A NEW STUDY FROM GOOGLE ON WAYS THAT US SMARTPHONE USERS PLAN TO USE THEIR PHONE FOR HOLIDAY SHOPPING THIS YEAR. AS YOU CAN SEE, THESE ARE ALL THINGS THAT PEOPLE HAVE BEEN DOING ONLINE, THAT THEY CAN NOW DO IN THE STORECOMPARE PRICES IS THE NUMBER ONEREAD REVIEWSLOOK FOR PROMOTIONS OR COUPONSLOCATE A RETAILER SEARCH INVENTORYPURCHASE AN ITEM
BUT THERE ARE ALSO MOBILE-SPECIFIC BEHAVIORS THAT ARE EMERGING THAT WERE NOT DONE AS OFTEN ON THE WEBTHIS IS ALL JUST NEW WAYS THAT CONSUMERS ARE ACTING ON LONGSTANDING NEEDS AND MOTIVATIONS
THIS IS A SAMPLE CONSUMER JOURNEYMIGHT START ONLINE WHERE PEOPLE GET INFORMATION/INFOLOAD, THEN MAP DIRECTIONS TO A PLACE, CHECK IN, SCAN A BARCODE, GET AN OPINION THEN PAY – ALL THROUGH THE PHONE
THESE ARE THE TOOLS THAT CONSUMERS CAN USE ALONG THEIR JOURNEY, WHICH WE’LL TALK ABOUT AS WE GO THROUGH THE BEHAVIORS IN MORE DETAIL BUT AGAIN WE’RE NOT FOCUSING ON THE HOW SO MUCH AS THE WHY
How can retailers engage shoppers along the new consumer journey?They need to embrace the behaviors and use these tools to enhance shoppers experiences.
LOCAL SEARCH IS BOOMINGITS AN OPPORTUNITY TO EXTEND THE STOREFRONT AND HELP PEOPLE FIND YOUR BUSINESSPEOPLE ARE PLANNING LESS IN ADVANCE AND RELYING ON THEIR PHONES FOR ADDRESS-FINDING AND REAL-TIME NAVIGATIONIMPORTANT TO MAKE SURE YOUR SITE IS MOBILE FRIENDLY AND THAT YOUR INFORMATION IS CORRECT ON GOOGLE (PLACE PAGE)
SMS, APPS, MOBILE WEB, ALL PLATFORMS
PEOPLE ARE ALSO CURATING LOCATIONS BY INTERESTS, ONE SUCH APP IS FOODSPOTTING BUILT AROUND PEOPLE’S TENDENCIES TO SHARE PHOTOS OF THEIR FOOD ON TWITTER AND SOCIAL NETWORKS, THIS APP TURNS THAT INTO A VISUAL FOOD GUIDE.PEOPLE SUBMIT PHOTOS OF GREAT DISHES, THEN USERS CAN VIEW THE TOP DISHES NEARBY TO HELP THEM DECIDE WHERE TO EAT.
THE NEW FRONTIER IS INDOOR MAPPING, THESE APPLICATIONS, WHICH RELY ON ALTERNATIVES TO GPS, ALL HELP PEOPLE LOCATE STORES INSIDEEXAMPLES:GATEGURUMICELLOWHATAMAPMALL MAPPOINT INSIDE
YOU CAN SEARCH ONLINE, BUT AN EASIER WAY IS TO SCAN A PRODUCT WITH RED LASER, OR AN APP THAT USES ITS TECHNOLOGY, TO FIND OUT HOW MUCH PRODUCTS COST AT OTHER STORES. YES, THIS IS A SCARY PROSPECT FOR RETAILERS, THE CONSUMER HAS CONTROL, BUT DON’T FIGHT IT. THINK ABOUT HOW YOU CAN USE THESE TOOLS TO YOUR ADVANTAGE OR OFFER INCENTIVES AND ADVANTAGES THAT KEEP PEOPLE IN THE STORE
FOR EXAMPLE, TECCA IS AN APP FROM BEST BUY THAT HAS PRICE COMPARISON AS WELL AS A NUMBER OF OTHER “CONCIERGE” TYPE SERVICES. SO EVEN IF BEST BUY DOESNOT OFFER THE CHEAPEST PRICE, THEY CAN EITHER PRICE MATCH OR ADD VALUE THROUGH OTHER THINGS LIKE INFORMATION, REVIEWS, AND PURCHASING.
CONSUMER ARE GETTING INFORMATION ONLINE BEFORE THEY SHOP, BUT ALSO ON THE SPOT. THEY ARE DOING PRODUCT RESEARCH, READING REVIEWS, AND GETTING RECIPES AND THE LIKE.
KRAFT’S IFOOD APP HELPS SHOPPERS FIND RECIPES WHILE THEY SHOP FOR INGREDIENTS
SOME RETAIL APPS SUCH AS SEPHORA AND THE GAP HAVE INTEGRATED CONSUMER REVIEWS IN THEIR APPLICATIONS.
Target recently put out an app to help shoppers when in Target stores or on Target.com. It features daily deals, barcode scanning, information about products and store location and hours.EMPLOYEES CAN USE THE SAME OR SIMILAR TOOLS ON THEIR PHONES AS WELL TO ASSIST CONSUMERS IN THE STORE. THERE’S NOTHING WORSE THAN A SHOPPER THAT SCHOOLS A SALESPERSON.
THE PHONE IS A MNEUMONIC DEVICE, HELPING US REMEMBER THINGS (DO YOU REMEMBER ANYONE’S PHONE NUMBERS?)
THIS IS ERIN, A COLLEGE STUDENT WE INTERVIEWED, SHE USES HER PHONE TO KEEP SHOPPING LISTS
PHOTO TAKING IS A COMMON WAY TO REMEMBER THINGSARCELIE, ANOTHER WOMAN WE INTERVIEWED, SAID HER HUSBAND WOULD EMAIL HER PHOTOS OF THINGS HE WANTED TO REMEMBER/BUYTHIS INSIGHT LEDAMAZON TO CREATE THEIR REMEMBERS FEATURE WHICH LETS YOU TAKE A PIC AND ITS ADDED TO YOUR LIST
REMIND PEOPLE ABOUT PRESCRIPTIONS, GET A TEXT WHEN ITS READY
PEOPLE RELY HEAVILY ON THE OPINIONS OF THOSE THAT THEY TRUST
Fashism lets you sidestep fashion faux-pas by crowdsourcing other users' opinions. Snap a photo, email it to the site, and get pinged back with comments and ratings from other users. People are doing this anyway—taking photos in stores and sending to friends for thoughts. This site has created a fashion-conscious community to advise you on your wardrobe in real-time.
DIESEL CAMABOUT:In some of Diesel’s retail locations in Spain, the company installed kiosks with cameras. As shoppers try on clothes, they can snap photos and send them to their friends via social networks. Friends can comment and share opinions about the product or style through Facebook.
NORDSTROM’S BP PhotoboothABOUT: Nordstrom’s installed digital screens in the juniors department, BP. These in-store digital photobooths allow customers to try on clothes and take professions quality photos (rather than mobile snapshots). Then shoppers can add graphics and print or email the photos to share with friends. This emphasizes the behavior that already exists on shoppers’ mobile phones in stores.
SOCIAL MEDIA IS BECOMIGN A KEY ASPECT OF MOBILE USEFACEBOOK MOBILE USAGE ROSE 600% LAST YEARIT’S A WAY FOR PEOPLE TO STAY IN TOUCH, SHARE AND CONSUME CONTENT EVEN WHEN THEY ARE AWAY FROM THEIR COMPUTERS (WHICH PEOPLE ARE MOST OF THE TIME)
ONE THING PEOPLE ARE NOW SHARING IS THEIR LOCATION THANKS TO CHECKIN SERVICES FOURSQUARE CLINGSFoursquare has sent out window decals, or clings, to thousands of business owners that they can use to advertise the service and remind people to check in. The clings stick to window storefronts in order to remind people to check in on Foursquare. Whole Foods is one example of a company that has agreed to place the Foursquare clings in 30 of it stores’ windows.FACEBOOK LIKE STICKERSFacebook started sending out "text-to-like" window decals to select local businesses. This is one more for these local stores to get their own social media profiles. Facebook, one of the leaders of the social graph, is making use of SMS, a mobile path that is far more dominant than QR codes.
SWIPELY AND BLIPPY MAKE IT EASY TO SHARE YOUR PURCHASESWHILE THIS IS AN EARLY ADOPTER BEHAVIOR RIGHT NOW, PEOPLE ARE INDEED SHARING WHAT THEY BOUGHT AND WHAT THEY THINK ABOUT PRODUCTS ONLINE, AND WILL DO SO IN A MORE SYSTEMATIC WAY THE FUTURE (WITH CONTROLS OF COURSE)ON THE SOCIAL WEB, SHARING OUR PURCHASES AND EXPERIENCES ARE CATALYSTS FOR CONVERSATION. PEOPLE CONNECT THROUGH OBJECTS. THIS SOCIAL INFORMATION CAN INFLUENCE PURCHSE DECISIONS (CONSCIOUSLY OR NOT)
AMERICAN EXPRESS BUILD SOCIAL CURRENCY ON TOP OF FOURSQUARE, ENABLING PEOPLE TO EASILY SHARE PURCHASES
BARCODE HERO MAKES IT EASY TO SHARE RECOMMENDATIONS ABOUT PRODUCTS THROUGH THEIR APPLICATION, WHICH USES BARCODE TECHNOLOGY….
WE’LL LIKELY SEE MORE RETAILERS TAKING ADVANTAGE OF THE LIKE BUTTON, LETTING CONSUMERS LIKE A PRODUCT THAT THEY SCAN AND SHARE THAT TO THEIR PROFILESLEVI’S LIKESABOUT:Levi’s has integrated Facebook’s functionality into their online store, letting users “like” specific products and share products with their social network. Shoppers can also find “Top-Liked” products across their network. This also allows conversations to develop about Levi’s products on the Facebook site.
4FOOD OFFERS A UNIQUE AND INTERSTING WAY TO SHARE MENU ITEMS THAT THE CONSUER THEMSELVES CREATE. THEY CAN GET FRIENDS TO VOTE ON THEIR CREATIONS AS WELL….ABOUT:4Food is a new restaurant opening in Midtown Manhattan that could be from the future. In addition to serving a Jetson-inspired menu, it builds Internet culture into its core experience, positioning itself as “an Apple store meets Chipotle.” It will offer free Wi-Fi and a 240 square-foot monitor that will stream Foursquare check-ins and Twitter updates.T Did we mention they take your order via iPad? he physical space is designed to encourage this through place-based social media, i.e. digital screens in venues.
SMARTPHONES OFFER MARKETERS A UNIQUE OPPORTUNIT TO INFLUENCE CONSUMERS IN THE VERY MOMENT THEY ARE MAKING PURCHASING DECISIONS.In another study, ¼ of shoppers with any mobile phone believe that receiving specials and promotions such as coupons would be an important use of their phone when shopping- Sterling Commerce and Demandware, 8/10
THIS IS A STUDY FROM INSIGHT EXPRESS THAT SHOWS THAT PEOPLE LARGELY WANT TO GET COUPONS SENT TO THEM VIA TEXT (VS SEEKING THEM OUT)ONE QUARTER WANT TO TEXT INTO GET COUPONS WHILE IN THE STORE, WHICH IS A GOOD OPTION BECAUSE THEY ARE IN THE RIGHT FRAME OF MIND TO BUY, RATHER THAN SENDING PEOPLE TEXTS WHEN THEY ARE NEARBY, WHICH MIGHT NOT BE WELCOME AT THE TIME AND BE PERCEIVED AS SPAM OR ANNOYINGITS IMPORTANT TO ENSURE A POSITIVE EXPEREINCE FROM DISCOVERY TO REDEMPTION, SO MAKE SURE ALL SALESPEOPLE KNOW THE REDEMPTOIN PROCESS
HERE ARE A FEW COMPANIES THAT OFFER MOBILE COUPONS TO CONSUMERS, AND MOST ARE OFFERIG THE ABILITY TO TIE COUPONS TO STORE LOYALTY CARDS, WHICH IS PEOPLE ARE ALREADY ACCUSTOMED TO USING.
APPS LIKE SHOPKICK ATTEMPT TO MAKE BARGAIN HUNTING FUN AND EASYIT GIVES SHOPPERS INCENTIVES IN THE FORM OF “KICKBUCKS” FOR SCANNING ITEMS AND ALERTS THEM TO DEALS IN THE STOREIT HAPPENS THROUGH THIS AUDIO SENSOR THAT TALKS TO THE APPLICATION (THOUGH THIS TECH DOES NOT WORK ON IPDOD TOUCHES, WHICH COULD BE AN ISSUE SINCE THEIR DEMO SEEMS TO BE TEENS)
STARBUCKS IS USING A NUMBER OF PLATFORMS TO DELIVER INCENTIVES, INCLDUIGN THIRD PARTY APPS LIKE FOURSQUARE AND BRITEKITE. USERS GET COUPONS ON FOURSQUARE AND BADGES ON BRIGHTKITE WHEN THEY “CHECK IN” TO A STORE
GROUPON IS AN INCENTIVE PLATFORM THAT OPERATES ON COLLECTIVE BUYING POWER. THE DEAL IS ONLY VALID WHEN ENOUGH PEOPLE OPT IN TO IT. WE’LL SEE THIS TIED MORE AND MORE TO PHYSICAL RETAIL LOCATIONS – ONLY WHEN X NUMBER OF PEOPLE SHOW UP DO THEY GET THE DEAL. IT’S A GREAT WAY TO DRIVE FOOT TRAFFIC AND ENCOURAGE PASS ALONG.FACEBOOK JUST LAUNCHED “DEALS” WHICH ADDSFOURSQUARE AND GROUPON-LIKE FEATURES TO THEIR PLACES SERVICE.According toFacebook, “You'll see a few different types of Deals: individual deals for a discount, free merchandise or other reward; friend deals where you and your friends claim an offer together; loyalty deals for being a frequent visitor to a place; and charity deals where businesses pledge to donate to a cause when you check in.”
COUPONS AND CHECK-IN SERVICES CAN ALL GATHER VALUABLE DATA ON WHO YOUR CONSUMERS ARE – WHO IS GOING TO YOUR STORE. SMART RETAILERS WILL OFFER INCENTIVES FOR REPEAT VISITS, BUT ALSO KNOW WHO THESE CUSTOMERS ARE – THIS PERSONAL TOUCH CAN GO A LONG WAY ESPECIALLY IN AN AGE OF ANONYMITY AND MASS RETAILING.
INDEED THERE ARE LOTS OF WAYS TO CREATE MORE PERSONAL, CUSTOM EXPERIENCES FOR CONSUMERS THROUGH MOBILE .PEOPLE TODAY ARE OVERWHELMED WITH CHOICE, TARGETED DEALS AND RECOMMENDATIONS APPEAL TO PEOPLE. THIS IS NOW POSSIBLE IN STORES.
YELP ALLOWS YOU TO CUSTOMIZE THE CONTENT YOU SEE BASED ON WHO YOU KNOW, IT CAN SHOW REVIEWS FROM JUST YOUR FRIENDS.
IBM AND CISCO ARE DEVELOPING A MOBILE CONCIERGE THAT AMONG OTHER THINGS WILL MAKE SUGGESTIONS BASED ON YOUR SHOPPIGN LIST AND THINGS YOU HAVE BOUGHTPresence, also from IBM, tracks shoppers’ spending habits and makes product recommendations.
Shopwell can create a highly personalized shopping experience. Based on the consumer’s profile, the app is able to intelligently select food types that the individual should or should not have. Everything is fed into a universal dashboard listing "things you want" or "things you don't want." This dashboard is what fuels ShopWell's grocery shopping rating and recommendation system.
In the coming years mobile payments will become more mainstream driven by consumer demand
FOR ONE, THESE WILL MAKE FOR A MORE SEAMLESS CHECKOUT EXPERIENCE ONCE POS GETS SET UP. IT ALSO CAN LET PEOPLE ORDER AHEAD TO SKIP THE LINE. THERE IS ALSO A BIG OPPORTUNITY FOR TEENS HERE – PARENTS CAN PUT MONEY ON THEIR PHONES SO THEY CAN GO SHOPPING ON THEIR OWN (USUALLY TAKES 2 TRIPS NOW, FIRST WITH FRIENDS, THEN PARENTS COME WITH THE CREDIT CARD) AND ALSO TRACK THEIR PURCHASESSTARBUCKS CARD MOBILEStarbucks Card Mobile is an app that produces a virtual Starbucks card with a scanable barcode, allowing customers to literally pay for their drinks from their phones. All you have to do is enter the number from your real Starbucks Card and register it in the app.CHIPOTLE MOBILE ORDERING
WHEN PEOPLE WALK INTO A STORE THEY WILL TURN RIGHT BACK AROUND IF THEY SEE THE LINE IS TOO LONG. EXPERIENCES AT THE CASH WRAP COLOR THE ENTIRE SHOPPING EXPERIENCE.APPLE GETS AROUND THIS BY TURNING EVERY EMPLOYEE INTO A CASH REGISTERSQUARE BRINGS THIS TO SMALL BUSINESS AND LOCAL MERCHANTS
THIS IS A TREND WE WILL CONTINUE TO SEE
WE JUST WANT TO GO THROUGH A FEW OPPORTUNITIES RETAILERS HAVE TO USE MOBILE TECHNOLOGY TO ENHANCE THE SHOPPER EXPERIENCE
SHOPPERS START TO GET ANTSY AFTER 2 MINUTES. HOW CAN YOU MAKE THE PERCEIVED WAIT TIME SHORTER? SINCE EXPERIENCE AT THE CASH WRAP COLORS THE ENTIRE RETAIL EXPERIENCE, THIS IS VERY IMPORTANT. BY CREATING DIVERSIONS AND PROVIDING OPPORTUNITIES FOR INTERACTION , RETAILERS CAN BEND TIME AND MAKE THE WAIT FLY BY.
NO ONE LIKES TO CARRY AROUND PAPER RECEIPTS, THIS CAN MAKE CONSUMER’S LIVES EASIER.
NOW THAT PHONES WILL HAVE RFID AND CERTAIN ITEMS ARE ALREADY BEING SHIPPED WITH RFID TAGS, CAN THIS BE USED TO CREATE A HANDS FREE SHOPPING EXPERIENCE? PEOPLE WILL STOP SHOPPING WHEN THEIR HANDS ARE FULL. THEY WILL BUY MORE IF THEY HAVE A BASKET, BUT STOP WHEN THAT IS FULL TOO. CAN MOBILE HELP CREATE A BOTTOMLESS BASKET? SHOPPERS CAN SCAN ITEMS THEY WANT TO BUY AND THEY WILL BE WAITING FOR THEM AT CHECKOUT.
MOOSEJAW, AN OUTDOOR SURF SKI AND SKATE RETAILER USES IBM TECHNOLOGY TO CREATE A SEAMLESS EXPERIENCE FOR SHOPPERS ACROSS CHANNELS. FOR EXAMPLE, SHARED DATABASES MEAN THAT CONSUMERS WILL GET THE SAME INFORMATION NO MATTER WHAT CHANNEL THEY ARE ON AND INFORMATION IS SHARED ACROSS CHANNELS, FOR EXAMPLE IT CAN TEXT YOU A TRACKING NUMBER, LET YOU POST A PHOTO OF AN ADVENTURE FROM YOUR PHONE TO THEIR SITE, OR SHOW AVAILABILITY AT A LOCAL STORE.