Published on March 6, 2014
Shopper Showrooming: Retailer Strategies in a Smartphone World by Arthur Policarpio Head of Mobext Asia-Pacific Phuc.Truong@mobext.com
The world’s largest mobile marketing agency network 21 offices worldwide and growing
Full Service Agency EMERGING TECHNOLOGIES DEVELOPMENT SITE & APP MEDIA PLANNING & BUYING DISPLAY/RICH MEDIA SOCIALLOCATION MULTIPLATFORMAPPS VIDEO/GAMES SMS/IMAGE RECOGNITION QR/2D/BAR CODES AUGMENTEDREALITY Phuc.Truong@mobext.com SEARCH 3
Amazon Push for Showrooming
Smartphone Growth = Showrooming Explosion Source: TNS Global 2013
Who are the Showroomers? Source: TNS Mobile Life 2013
Why do they Engage in Showrooming?
Retailers Fight Back
But reverse showrooming, in fact, is a bigger trend Source: Accenture 2013
What is reverse showrooming?
Majority use their smartphones for research prior to purchase Source: Krillion, 2013
What are consumers searching for on mobile? Source: Google 2013
Digital Has Transformed the Shopper Path to Purchase Then
How should retailers respond?
STRATEGY #1: Invest in mobile + social to drive word-of-mouth marketing
SOCIAL MEDIA = MOBILE 945 M active monthly mobile users (out of 1.23 bn total monthly users) 53% of total revenues coming from mobile *(Facebook 2013 Q4 report) 75% monthly active users coming from mobile 65% of revenues come from mobile *(Twitter 2013 Q43report) ¾ of all usage comes from mobile
Time spent on mobile social > desktop
Asia leads mobile-social use
What are retailers doing on social media?
Walmart on Facebook Most followed retailer, with over 34 M fans!
“My Local Walmart” Facebook program
Nordstrom on Pinterest Most followed brand, with 4.4 million followers
in-store integration of social “voting”
Saks Fifth Avenue on Vine #SaksIn6 : Recreating instore tutorials in 6 seconds
STRATEGY #2: Integrate mobile across all media to drive in-store visits and trial
Bring catalogues to life: IKEA
IKEA Augmented Reality catalogue
Unlock exclusive content: Macy’s Backstage Pass
Macy’s Backstage Pass
Target: Get gift ideas anywhere with QR
Get in-store deals with mobile coupons
STRATEGY #3: Dominate Search
Mobile search will surpass desktop
Searches done on mobile lead to immediate conversion Source: Google & Nielsen
Create smarter search ads Google’s Enhanced Campaigns
STRATEGY #4: Invest in location-based marketing
Google Map ads • Reach customers searching for businesses like yours on Google Maps • Click-to-call and tap for directions
Mobile points customers to your direction
McDonald’s Extended Hours: Driving business to late-night stores through mobile ads
2014: The Year of the Beacons?
How do iBeacons work?
STRATEGY #5: Invest in your own mCommerce site + app
Walmart‘s mobile app users... Make 4 more trips each month than non-mobile user • • Spend 40% more than the average shopper
In-store mode • See what’s new & on sale • Create shopping lists • Scan and Go
Out –of-Store mode Check items in-store Check inventory + delivery
12% of online sales from the app happen during the app’s in-store mode
Scan and Go
STRATEGY #6: Mobilize your loyalty program
SHOPKICK: Earn points just by walking in-store
How big is Shopkick? #1 Shopping app 7 million gift cards redeemed $800 M Sales delivered to partners 70 million Product scans *More frequent and prolonged usage than physical retailers’ own apps, including Starbucks, Walmart, Walgreens, and Safeway
Integrate Mobile in the Shopper Journey AWARENESS LOYALTY TRIAL PURCHASE CONSIDERATION
Mr. Arthur Policarpio Managing Director Mobext Asia-Pacific email@example.com +639175694375 @art_policarpio (Twitter) 56
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