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Mobile Commerce in Today’s Omni-channel World
James LovellEuropean Solutions LeaderIBM Smarter Commerce@jameslovellin/jameslovell71
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© Copyright IBM Corp. 2014. All Rights Reserved.
29th June 2007, our world changed…
• Spanish scientists find fossil evidence of humans living in Europe over a million years ago in Burgos, Spain
• Rebels unsuccessfully try to assassinate Guillaume Soro, Prime Minister of Ivory Coast
• (U.S.) National Football League announces that it will shut down its European operation known as NFL Europa
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Number of technologies consumers desire to
use in the shopping process1
Consumers are more connected than ever
The number of times the average mobile user checks
his or her device per day2
of adult cell phone owners used their devices while in
a store to help with purchasing decisions3
of store sales are mobile influenced4
More than
52% 150 timesMore
than$650B
3 technologies 24%
18%
29%
2 technologies
1 technology
1 IBM, Winning over the empowered consumer : Why trust matters, April 2012. (Study n= 28527 [global] C01 Which of the following would you be willing to use to shop and to make purchases, assuming they are available?)
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Empowered consumers create new engagement opportunities
Tailored Offers
42% want personalized
promotions based on what
they purchase2
Information
58% want to get product
info in-store1
Service32% want directions to
customer service or to an
associate2
29% want to be identified for
help, customer service2
1. Sterling Commerce
2. Institute for Business Value Retail 2011 Global = 30624; IHL
3. Additional Sources: Gartner, Forrester, Nielsen
By 2015, 43% of mobile phone users will have a smartphone… (and of course,
will want to use it at the store).
Convenience
27% want most efficient route
through store2
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Mobile is Mainstream…
Results from IBM Digital Benchmark, Black Friday 2013
UK Christmas Benchmark 2013
51% of site visits came from mobile devices
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Main Players are “Mobilising”
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Mobile presents new opportunities for shopping and engagement
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Mobile inspires us (to buy more)
Get the recipe…
Get the room…
Get the look…
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Mobile makes it easier to browse and shop anywhere, anytime
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Ask for advice
Check advertising
Compare products
online
Go to store
Learn about the
product
Read reviews
Download the app
Check youtube
video Check Facebook Check at
the offline store
Browse the Site
Google the product
SHOP
Mobile has no silos or channel barriers
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Mobile provides utility value
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Retailers APPs Gold Rush: Which one deserves the right to stay?Customer Perspective
• From “Just another APP to shop”…
• …to “This is really helpful to me!”
Retailer Perspective
• Competition is fierce…
• … how to differentiate?
• Do we want mobile to…
• engage customers?
• drive transactions?
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Mobile App Usage
Source: Nielsen (US Only)
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Today’s shoppers prefer direct access to retail websites versus having to download a mobile app
14
Did you download it?
35% Yes
65% No
15% Aware
5% Downloaded
3% Have used
Top uses for mobile devices1: Compare and Negotiate Prices
2: Read reviews
Does the retailer offer a
mobile app?
15% Yes
20% No
65% Not Sure
Are you using it?
60% Yes
40% No
Source: IBV Retail 2013 From Transactions to Relationships: Connecting with a Transitioning Shopper Study n= 23466 Non-Grocery shoppers
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Unleashing APPsInnovate: Take the coupon concept and expand
Virtual Gift Card
Ticket History
Closest Store(Store Locator)
QR- based product info
Store pick-up
Mobile Payment
Locationbased
coupons
Co-shopping
My personal store
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The other face of mobile: Next Generation Clienteling
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Lets Go on a Journey….
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In summary retailers must…
equip employees with modern mobile technologies1
securely process massive amounts of data generated by mobile devices and quickly turn it into actionable insight2
combine cognitive systems & mobile to provide a more natural convergence of digital and physical shopping experience3
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What next for mobile in retail….
..Holdables
..Wearables
..Implantables??
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James LovellRetail Solutions LeaderIBM Smarter Commerce, Europe
[email protected]@jameslovellIn/jameslovell71