Mobile at RetailGlobalShop 2012

Molly Garris | Digital Strategy Director | Arc Worldwide

Bryan Gailey | VP Retail Design Director | Arc Worldwide

Hi - I’m Bryan Gailey and I’m Molly Garris and we’re here to today to tell you a story. We call it “A

Stranger Comes to Town”.

a story?business

This is a story about Mobile, Retail, and Shoppers. Is it a business story?

or triangle?love

Or is it a LOVE TRIANGLE?

Both...

LOVE

DESIRE

PO

WE

R

WINNERS

MONEY

LO

SE

RS

FRIENDSHIPS

SATISFACTION

This story is both.

This is a story of love and desire. Friendships made and torn apart. Winners and losers. Power.

Money. and Satisfaction.

you’re in it.

What’s more, you’re in it. Our question is, where will you end up when each chapter is written?

(cue ominous dramatic music)

Our story opens with two characters: a Retailer and his beloved shopper

“I’ve got what you need baby...”

Their relationship is good, but not always stable. And our Retailer is always trying to find new ways

to keep her love.

Then one day, a stranger comes to town - he calls himself Mobile!

He has powers and capabilities that make him the big new player on the block. (click) He tempts

the Shopper with exciting, new ways to get what she wants from her favorite brands and stores.

He's a flirt.

Always.

24-seven.

And he’s ALWAYS with her. 24-seven. He even sleeps over at her house!

And . . . to make matters worse, he even shops with her, accompanying her into the Retailer’s own

store!

And with the help of the seductive Amazon Price App, he could transform that store into a mere

product showroom, where she, the Shopper, could touch, test and try things on, but then purchase

them somewhere else entirely!

Because of Mobile, what happens in retail no longer stays in retail.

So because of Mobile, what happens in retail no longer stays in retail. (Molly makes a snarky

remark . . .)

An awkward

ménage à trois!

Because of this, the Retailer, the Shopper and Mobile find themselves in an awkward menage a

trois!

“If I could just wrap up my entire store in tin foil, I could block his signal...”

The Retailer tries to think of smart, traditional tactics to romance his shopper and keep her. (click)

He thinks - “If only i could wrap my store in tin foil . . . then this whole problem would go away . . .”

Other retailers, noticing that their Shopper being promiscuous, try to do the same.

Their friend Target, had just taken some bold action. Target, in a letter to suppliers, threw down a

gauntlet. “What we aren’t willing to do is let online-only retailers use our brick-and-morter stores as

a showroom for their products and undercut our prices . . .” Target then talked to suppliers about

creating exclusive product and competitive pricing . . .

work?Would it

Would it work? Perhaps. But this was a new kind of battle.

It would take new kinds of weapons to win. And it would take a new strategy.

“Frenemy?”

The retailer thinks: “Mobile is my enemy. But . . . he can also be my friend. Is he my new

frenemy?”

“he’s just a tool”

The retailer continues to think, “I must engage him, and make him work for me. After all, he’s just a

tool.

“he’s a tool of passion”

But my shopper is passionate about him - that’s how he lures her.

“I must work that to my advantage”

The retailer was determined to find an upper hand and work it to his advantage.

“I can help you”

Soon, the retailer feels something vibrating in his pocket - it’s his phone . . . it’s Mobile. Mobile is

calling to offer his help. He’s not such a bad guy after all -

“sure, I’m just a tool”

“Sure”, Mobile says, “I’m just a tool, . . .

“but I am alwayswith your shopper”

but I’m always there with your beloved shopper . . . . every step of the way”

8actsshopping

of

“And since I'm always with her, here’s our plan - and here are my eight acts of shopping. There’s:

Help Her Prepare, Invite Her Inside, Show Her Around, Help Her Decide, Encourage Her to Share,

Make the Transaction Easy, Make Sure She’s Satisfied, and Invite her Back. Each one of these

steps provides opportunities to speak passionately and differently to your shopper and make sure

she’s yours.”

Help her prepare

First, there’s Help Her Prepare - in the old way of doing things this was making a list or clipping

coupons out of a circular. And you can even do these kinds of things in the notepad on your phone

- but it’s still basically just a list - how can we add make your shopper passionate about her

shopping list?

Allow shoppers to browse the Weekly Ad,

create a shopping list and manage coupons

When it comes to grocery shopping, she rarely leaves the house without her list and coupons.

Retailers like Kroger know how easy it is to forget the list and coupons and have built an app that

allows her to browse the weekly ad, create her shopping list and even add deals to her Kroger

card, all saving her time, money .. and piece of mind that she won't forget her list!!

The list making process may not

necessarily start on a mobile phone –

consider your shopper’s journey.

And while Kroger has the perfect on-the-go solution, Target has been thinking about the shopper

journey a bit differently. They realized that with the uptick in tablet adoption, many shoppers start

their journey 'leaning back' - maybe browsing Target's Weekly Circular on their tablet. With the

Target tablet app, shoppers can begin building lists - weekly trip, Bridal Registry, etc. and once they

get into the store, they have the same lists sync'd to their phone. With the Target app or mobile site,

they can see all of their items and even identify if a product is in stock and where it's located inside

the store.

Invite her inside

The next step in her shopping progress, or act, is to “Invite Her Inside” - think of a sandwich board

on the sidewalk or a roadside sign - the most basic way to invite her inside is to tell her where you

are located and hope she’s interested. McDonald’s does this basic function on their store-finder

app. But how can a retailer take this to the next level and give her something more than just an

invitation?

Reward shoppers for coming into

your store or for trying clothes on.

Sure, you can invite her in with a 'BIG SALE' sign but modern techniques are starting to emerge.

For example, American Eagle Outfitters has partnered with an app called ShopKick. When

Shopkick users open their app, they see which stores are around them and while stores, like

American Eagle, will reward them for walking into the store. Even more, shoppers who try on

clothes at American Eagle can scan a barcode in the fitting room to earn even more rewards.

Invite shoppers

into your store when

they come within

a certain distance

from your store.

Or forget opening an app and to locate rewards. Some retailers are sending the rewards to right to

shoppers via text message.

Once a shopper has opted into the program, technology called 'geo-fencing' allows retailers to

trigger these text messages when shoppers come within a certain distance to the store. Let's watch

a quick video of how this works for DDR properties ..

Cool, right? Even better:

Placecast, the company powering the technology:

53% of participating shoppers have visited a specific retailer after receiving a location-based alert

22% of consumers reported making a purchase after receiving an offer

That is amazing participation, though we can credit them to being very far down the purchase

funnel since they are nearby and likely in the shopping mindset.

Show her around

The third act of shopping is to Show Her Around - to make sure she knows where to find things

when she’s inside. Traditionally, environmental graphics would do the trick for this - and even

though they communicate to the shopper, they rarely speak personally to her. How can we make

our shopper feel more personally connected to the retailer while she’s finding her way around the

store?

Give her tools that help her find what she’s looking for

Superstores like Meijers understand the massive layout can make finding items a bit tricky.

Thankfully, apps like Meijer's Find It help shoppers locate products' aisle location and even helps

set a parking reminder.

Plus up that experience with new technology

like Aisle411 that actually maps your shopping list.

The plus up to being able to locate a product in-store is rolling out nationally in the form of an app

called Aisle411. Shoppers can open their app, identify the store they are shopping at and the app

can map her entire shopping list. Additionally, if she's looking for meal items, over 130,000 recipes

are in the app to inspire her .. and of course drive basket size for the retailer.

Aisle411 is doing a great job of helping the shopper truly love both her using her Smartphone but

also the grocery shopping experience.

Use iPad retailing experiences to show her more choices and customized solutions

Another way to 'show her around' is by installing a tablet in-store. For example, Clinique, as shown

here, has installed an iPad retailing experience that helps her identify her skin type and makes skin

care regimen suggestions. This is great for a busy shopping day where she may not be able to

speak with an associate right away.

This is a trend we are starting to see emerge quickly. All Saints, Guess, Eastern Mountain Sports

stores are also piloting iPad solutions that help her style an outfit and identify other additional

colors / sizes or options that may not be in stock at the store.

Help her decide

Our 4th act of shopping, Helping Her Decide, used to rely on an informed salesperson or an

authority, like Consumer Reports. These days, not so much . . . sales associates are stretched thin

and sometimes woefully uninformed . . . and shoppers are less inclined to go to them for guidance -

but shoppers still need help, and, most importantly, they are looking for help that they can trust.

Use technology to make product comparison simple

In the past, stores were able to staff expert associates in each department but with today's

economic challenges, this is becoming less and less of a reality. Best Buy's was an early innovator

on mobile. They added QR codes to each of their in-store product tags. Using the Best Buy app,

shoppers could scan the QR codes of up to four different products and see the products compared

side-by-side. This allowed their shoppers to feel empowered and knowledgeable about not only

choosing the selection on sale but ensuring clarity on features they might gain / loss. Another

example of truly winning her love.

Spend some time in your store or in your

consumers’ shoes to understand their needs.

But what's interesting about Nordstrom, is that they didn't just copy Best Buy's solution. To

understand how their customers shop and what their needs were in the apparel category,

Nordstrom's Innovation Lab spent a week in-store watching people shop for sunglasses. They

quickly developed an iPad solution prototype that would address their shopper insights and

learnings.

Provide customer feedback or

expert tools that help her decide

And while tools can be built for 'Helping her Decide', don't forget to tell shoppers about these tools

while they are in-store. Sephora started placing occasional customer review tags around shelves

that would direct shoppers to their mobile website for more reviews - absolutely great idea! But they

also have other great tools with their app, like the 'Try It On' tool that allows her to view different

OPI nail polish shades against her own skin tone. Again, these are great tools to help her make a

selection if an associate is not available.

Price comparison apps can be an opportunity

I realize that on the spectrum of mobile being a 'Frenemy', most retailers would rank Price

Comparison apps like ShopSavvy and RedLaser as purely the Enemy .. but these can provide

opportunities to both the retailer and the shopper.

Shoppers at Best Buy who scanned an iPad2 around the holidays received a notification about

'Best Buy Buy Back Savings' on a Samsung Galaxy tablet. This is such a smart way to keep price

sensitive shoppers in the store and again, make her love you for showing her a relevant deal.

Encourage her to share

The 5th act of shopping, Encouraging Her to Share, exists because some aspects of shopping are

inherently social. Friends are trusted advisors with whom a shared shopping experience can be a

pretext to meaningful social connections.

Allow her to try on and solicit feedback from a friend or social network

With always-on access to friends / family via text and social networks, shoppers are having a much

easier time soliciting feedback when they are shopping. Converse released an app called The

Sampler that gives shoppers a chance to try different styles of Converse shoes and easily share a

snapshot via email or Facebook.

Create amazing experiences that

she’ll want to tell friends about

Some retailers even allow shoppers to share their shopping experience with friends and family.

Macy's, for example, brought joy to holiday shoppers with their Believe-o-Magic mobile app. By

pointing the app at an augmented reality marker on the store's floor, characters start coming to life

and the app user can snap a picture of the experience. The photo could easily be shared via email

or FB to remember the fun.

Doing something good?

Remind her to spread the word

And it's not always about the product or the retail experience. Retailers are doing great things and

can leverage mobile to spread the word. Walgreen's was donating flu shots to those in need and

reminded shoppers that when they checked in to their store on FourSquare or Facebook Places,

not only would that trigger a flu shot donation on their behalf but it also helped spread the word

about this initiative to their social circle.

Make her transaction

easy

Nobody likes to wait, and basically, nobody really likes to pay either. So Making her Transaction

Easy can lessen a potential pain point of every shopping journey. Express lines, and self check-out

kiosks have helped expedite this process, but any incremental streamlining of this transaction will

make a shoppers experience less painful and more enjoyable.

Make checkout lines a thing of the past

Forget making her wait in a line. Fashion retailer, C.Wonder, has deployed a mobile POS system in

stores. Associates are now free from the cash wrap and can easily assist shoppers around the

store and ring them up with iPod Touch devices.

Forget bringing along loyalty cards

and gift cards

And we're all likely to be clued into the Starbuck's app. Another early innnovator, Starbuck's brought

mobile payments to life by allowing shoppers the ability to load their Gift Cards into the app. Then,

when it's time to pay, they don't need to fumble around their wallet looking for the cards. They can

simply open the app, present their phone and the associate scans their phone to debit the

purchase. Super quick, easy and most importantly - Starbucks visitors love this since they don't

have to carry around their Gift Cards and can easily view card balances on the app.

Soon, she can even

forget about bringing

a wallet along.

Starbuck's is no longer the only way to pay via phone. The mobile payments space is really hot

right now and vendors like Google and Isis are in a race to rollout technology so that shoppers can

leave their wallet at home. That's right - with an app like Google Wallet, shoppers store all of their

credit cards, loyalty cards and deals - making it super easy to pay, earn and redeem. Let's take a

look what some of the early adopters from Macy's, Subway and American Eagle are saying .

While Google Wallet and Isis are in the process of rolling out, it's possible to get involved in pilot

programs to prepare for your savvy shoppers that would like to use this.

Make sureshe’s

satisfied

After her transaction is complete, Make sure she’s satisfied . . . it’s more than just a ritual - do

something that’s relevant and meaningful to help her enjoy her purchases.

Provide product-related content to guide her every step of the way

Retailers like Home Depot earn trust and loyalty from their shoppers by offering an app full of rich

tools. Buy paint at Home Depot and they become your painting partner, providing tools and demo

videos to help make sure your painting project is perfect

and your entire shopping experience is great - keeping her satisfied . . .

Work with brands to create a holistic

experience that lasts beyond the aisle

Or buy Kingsford charcoal at CostCo and you've got an entire BBQ experience.Costco partnered

with Kingsford charcoals to provide the ultimate barbeque experience. By scanning a QR code at

retail or pack, shoppers access a

web experience with grilling recipes, tips and even a Pandora radio station for music to grill by.

Provide ongoing support from deals to recipes

And don't think of satisfaction simply post-purchase, Sam's Club supports shoppers on Twitter with

deals, recipes, new product announcements and of course post-sale customer support. Customers

simply Tweet to @SamsClub with feedback or questions.

Invite her back

And finally, Invite Her Back. Following up and checking back in with your shopper cements the

relationship that you established and keeps you top of mind for her future consideration. An old

school thank-you note used to do the trick, but there are ways to follow up that can be really

relevant and useful for your shopper - helping her out as well as demonstrating that you really care

about her.

Give her a reason to return like a flash deal

or a prescription refill

The Walgreen’s app offers an exclusive mobile coupon that expires in several days, urging her in

store to get the offer.

For prescriptions, they offer text alerts letting you know when your prescription is ready to be

refilled. Simply reply with the word REFILL.

Pilot mobile loyalty programs

to encourage repeat visits

Victoria's Secret earns repeat visits through loyalty efforts like this FourSquare special. After

checking into this VS store three times, she can unlock a special deal.

So, back to our retailer, who has been listening to all of these ideas that mobile has been telling

him . . . The retailer has a revelation! (click) “Before, I thought you were trying to steal my beloved

shopper . . . now, I understand that you can help her to love me even more than before!”

And as long as Mobile’s helping me help her along every step of her shopping journey, I can also

enchant her in ways that delight her senses in the physical world. With tastings, fittings, personal

service and shows - I can engage her with experiences that she can’t find on her phone . . .

So thank you, mobile - I couldn’t have done it without you!

the end.

. . . happilyever after

And so our story ends happily . . . ever after . . . the end.

Thank you.

(Molly asks if anyone has any questions . . . )