Description
Make an App for That-Strategies for Winning Retail Mobile Strategies
1
Altimeter Group Webinar #appforthat
March 2, 2012
Chris Silva
Industry Analyst, Mobile
Make An App For That:
Strategies For Winning Retail
Mobile Strategies
© 2012 Altimeter Group
Smartphones And Tablets Are Where
Users Turn When Shopping
© 2012 Altimeter Group
© 2012 Altimeter Group
3
Over 2/3 of smartphone users took them to
the store with them this past holiday.
They spent on average $71 per order when
purchasing on their smartphones.
© 2012 Altimeter Group
4
People can’t buy smartphones fast enough
iPhone 4s: 4M
devices in its first
weekend, bests
Kinect as fastest
selling device ever!
© 2012 Altimeter Group
5
Smartphone Ownership Continues Meteoric Rise
The new mobile
customer is
overwhelmingly a
smartphone customer.
© 2012 Altimeter Group
6
Tablets are quickly following
Apple’s iPad sold at a
rate of 14.8/hr on Black
Friday 2011. The pile – if
stacked – would be
measured in miles.
© 2012 Altimeter Group
7
We’re Seeing These Shoppers Grow Rapidly
Source: Comscore, Q4 2011
0 500 1000 1500 2000 2500 3000
Week Ending Dec. 25
Free Shipping Day (Dec. 16)
Green Monday (Dec. 12)
Cyber Monday (Nov. 28)
Thanksgiving Weekend (Nov. 26-27)
Black Friday (Nov. 25)
Thanksgiving Day (Nov. 24)
Millions ($)
U.S. Online Holiday Spend: 2011 vs. 2010
2011
2010
35274
30591
2011 2010
M
i
l
l
i
o
n
s
(
$
)
Overall Holiday
Spend (Nov.1-Dec. 26)
26% YOY increase
22% YOY increase
15% YOY increase
2011 saw gains on
every major
shopping day over
2010.
© 2012 Altimeter Group
8
If You Build It… They’re Already There
© 2012 Altimeter Group
More than 50% of adults
are buying on
smartphones today, more
than 2/3 have the device
in-store, still many aren’t
being served.
© 2012 Altimeter Group
Why Many Are Lagging In The
Race
© 2012 Altimeter Group
© 2012 Altimeter Group
10
Not All Brands Are “Flying High”
Altimeter Identified 3
Phases Of Mobile
Maturity, Which One
Does Your
StrategyFeel Most
like?
© 2012 Altimeter Group
11
The First Step Is Choosing The Right Path
Look complicated? It’s
not but needs to be
undertaken carefully to
get on the right path.
© 2012 Altimeter Group
12
The Second, Choosing The Right App
ENGAGE
Engage strategies can provide product
information, post-purchase support, or
help to provide a presence for retailers
and brands with a fully online
presence. The focus is on bringing
shoppers closer to the brand to drive
interaction, not just spend.
© 2012 Altimeter Group
13
Different Apps Serve Very Different Purposes
ENRICH
These strategies are focused on
driving transactions and
measured in total purchases,
purchase size or frequency, and
purchase-per-store metrics. The
ROI model is simple — drive
purchases and grow the
business.
© 2012 Altimeter Group © 2011 Altimeter Group
Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253
What Winning Looks Like
© 2012 Altimeter Group
Engage: Sephora-To-Go app serves up the
ultimate palate of engagement
15
Sephora-To-Go designed to be the Go-To
• “Try on” products virtually
• Watch expert tutorials and product demos
• View Sephora staff “obsessions”
• Scan in-store barcodes and QR codes
• Access >1m+ ratings and reviews
• Fully integrated with Sephora Beauty Accounts
• Locate the nearest Sephora via GPS
• And more!
© 2012 Altimeter Group
Engage: Home Depot designs multi-channel QR code
campaign to aid the considered purchase— online and
off
16
Home Depot’s campaign spans online
and offline media, in-store signage, local
events, and more.
Once activated, shoppers can access
how-to videos, product demos, relevant
accessories, buying guides, project
guides, even make a purchase.
© 2012 Altimeter Group
Engage: GE’s Moodometer helps you find just the
right bulb
17
© 2012 Altimeter Group
Enrich: Overstock.com develops mobile app to
promote, complete with scratch-off daily coupons
18
© 2012 Altimeter Group
Enrich: Taco Bell joins forces with MTV to offer
exclusive sneak-peak award show music and video
content
19
As a sponsor of MTV’s Video Music Awards,
Taco Bell seized the opportunity to engage
customers directly with the product by
promoting MTV’s; The campaign yielded nearly
a half million scans in a mere 4 weeks.
© 2012 Altimeter Group
Enrich: Redbox’s 10 Days of Deals mobile campaign
drives mass awareness, engagement, sales
20
Using multiple channels
to drive awareness:
• 1.5 million texts in 10 days
• 400,000 unique participators
• 200,000 new Redbox
customers
© 2012 Altimeter Group
Enrich: Tesco customers scan and purchase
goods in virtual subway supermarkets
21
Customers scan QR codes to purchase products for same day
delivery while in the subway. More than 10K consumers visited
using their smartphones. New members rose by 76% after the first
implementation and online sales increased by 130%.
© 2012 Altimeter Group © 2011 Altimeter Group
Focus On Goals, Path Then App
© 2012 Altimeter Group
Next steps: Where Are You Now?
23
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
Next Steps: What Is The Business Seeking?
24
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
Next Steps: Building The Best Tool
25
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
? Know thyself
• What is the status of mobile today, is this .5 of strategy or iteration
4.5? What have you learned, where are resources allocated?
? Business goals
• Focus on end goal, enrich and engage can coexist, but should not
necessarily do so from the start;
• What metrics matter, go beyond downloads to look at active users,
cross channel pull through, segmented sales metrics.
? App design
• Four models are most popular in mobile today among winners
doing things differently, there will be more;
• Novelty of Experience is most important, solve actual – not
perceived – user problems
Choosing strategy
26
27
THANK YOU
Chris Silva
Industry Analyst, Mobile
[email protected]
makemobilework.com
Twitter: 802dotchris
28
Altimeter Group is a research-based advisory firm that helps
companies and industries leverage disruption to their advantage.
Visit us at http://www.altimetergroup.com or contact
[email protected].
ABOUT US
doc_171433635.pdf
Make an App for That-Strategies for Winning Retail Mobile Strategies
1
Altimeter Group Webinar #appforthat
March 2, 2012
Chris Silva
Industry Analyst, Mobile
Make An App For That:
Strategies For Winning Retail
Mobile Strategies
© 2012 Altimeter Group
Smartphones And Tablets Are Where
Users Turn When Shopping
© 2012 Altimeter Group
© 2012 Altimeter Group
3
Over 2/3 of smartphone users took them to
the store with them this past holiday.
They spent on average $71 per order when
purchasing on their smartphones.
© 2012 Altimeter Group
4
People can’t buy smartphones fast enough
iPhone 4s: 4M
devices in its first
weekend, bests
Kinect as fastest
selling device ever!
© 2012 Altimeter Group
5
Smartphone Ownership Continues Meteoric Rise
The new mobile
customer is
overwhelmingly a
smartphone customer.
© 2012 Altimeter Group
6
Tablets are quickly following
Apple’s iPad sold at a
rate of 14.8/hr on Black
Friday 2011. The pile – if
stacked – would be
measured in miles.
© 2012 Altimeter Group
7
We’re Seeing These Shoppers Grow Rapidly
Source: Comscore, Q4 2011
0 500 1000 1500 2000 2500 3000
Week Ending Dec. 25
Free Shipping Day (Dec. 16)
Green Monday (Dec. 12)
Cyber Monday (Nov. 28)
Thanksgiving Weekend (Nov. 26-27)
Black Friday (Nov. 25)
Thanksgiving Day (Nov. 24)
Millions ($)
U.S. Online Holiday Spend: 2011 vs. 2010
2011
2010
35274
30591
2011 2010
M
i
l
l
i
o
n
s
(
$
)
Overall Holiday
Spend (Nov.1-Dec. 26)
26% YOY increase
22% YOY increase
15% YOY increase
2011 saw gains on
every major
shopping day over
2010.
© 2012 Altimeter Group
8
If You Build It… They’re Already There
© 2012 Altimeter Group
More than 50% of adults
are buying on
smartphones today, more
than 2/3 have the device
in-store, still many aren’t
being served.
© 2012 Altimeter Group
Why Many Are Lagging In The
Race
© 2012 Altimeter Group
© 2012 Altimeter Group
10
Not All Brands Are “Flying High”
Altimeter Identified 3
Phases Of Mobile
Maturity, Which One
Does Your
StrategyFeel Most
like?
© 2012 Altimeter Group
11
The First Step Is Choosing The Right Path
Look complicated? It’s
not but needs to be
undertaken carefully to
get on the right path.
© 2012 Altimeter Group
12
The Second, Choosing The Right App
ENGAGE
Engage strategies can provide product
information, post-purchase support, or
help to provide a presence for retailers
and brands with a fully online
presence. The focus is on bringing
shoppers closer to the brand to drive
interaction, not just spend.
© 2012 Altimeter Group
13
Different Apps Serve Very Different Purposes
ENRICH
These strategies are focused on
driving transactions and
measured in total purchases,
purchase size or frequency, and
purchase-per-store metrics. The
ROI model is simple — drive
purchases and grow the
business.
© 2012 Altimeter Group © 2011 Altimeter Group
Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253
What Winning Looks Like
© 2012 Altimeter Group
Engage: Sephora-To-Go app serves up the
ultimate palate of engagement
15
Sephora-To-Go designed to be the Go-To
• “Try on” products virtually
• Watch expert tutorials and product demos
• View Sephora staff “obsessions”
• Scan in-store barcodes and QR codes
• Access >1m+ ratings and reviews
• Fully integrated with Sephora Beauty Accounts
• Locate the nearest Sephora via GPS
• And more!
© 2012 Altimeter Group
Engage: Home Depot designs multi-channel QR code
campaign to aid the considered purchase— online and
off
16
Home Depot’s campaign spans online
and offline media, in-store signage, local
events, and more.
Once activated, shoppers can access
how-to videos, product demos, relevant
accessories, buying guides, project
guides, even make a purchase.
© 2012 Altimeter Group
Engage: GE’s Moodometer helps you find just the
right bulb
17
© 2012 Altimeter Group
Enrich: Overstock.com develops mobile app to
promote, complete with scratch-off daily coupons
18
© 2012 Altimeter Group
Enrich: Taco Bell joins forces with MTV to offer
exclusive sneak-peak award show music and video
content
19
As a sponsor of MTV’s Video Music Awards,
Taco Bell seized the opportunity to engage
customers directly with the product by
promoting MTV’s; The campaign yielded nearly
a half million scans in a mere 4 weeks.
© 2012 Altimeter Group
Enrich: Redbox’s 10 Days of Deals mobile campaign
drives mass awareness, engagement, sales
20
Using multiple channels
to drive awareness:
• 1.5 million texts in 10 days
• 400,000 unique participators
• 200,000 new Redbox
customers
© 2012 Altimeter Group
Enrich: Tesco customers scan and purchase
goods in virtual subway supermarkets
21
Customers scan QR codes to purchase products for same day
delivery while in the subway. More than 10K consumers visited
using their smartphones. New members rose by 76% after the first
implementation and online sales increased by 130%.
© 2012 Altimeter Group © 2011 Altimeter Group
Focus On Goals, Path Then App
© 2012 Altimeter Group
Next steps: Where Are You Now?
23
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
Next Steps: What Is The Business Seeking?
24
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
Next Steps: Building The Best Tool
25
? Where are you today?
? What is your endgame?
? What should the app be?
© 2012 Altimeter Group
? Know thyself
• What is the status of mobile today, is this .5 of strategy or iteration
4.5? What have you learned, where are resources allocated?
? Business goals
• Focus on end goal, enrich and engage can coexist, but should not
necessarily do so from the start;
• What metrics matter, go beyond downloads to look at active users,
cross channel pull through, segmented sales metrics.
? App design
• Four models are most popular in mobile today among winners
doing things differently, there will be more;
• Novelty of Experience is most important, solve actual – not
perceived – user problems
Choosing strategy
26
27
THANK YOU
Chris Silva
Industry Analyst, Mobile
[email protected]
makemobilework.com
Twitter: 802dotchris
28
Altimeter Group is a research-based advisory firm that helps
companies and industries leverage disruption to their advantage.
Visit us at http://www.altimetergroup.com or contact
[email protected].
ABOUT US
doc_171433635.pdf