mobile in consumer business - end-to-end consumer experience - deloitte

Mobile in Consumer Business –

Amstelveen, March 22, 2012

End-to-End Consumer Experience

Michiel Peters

Dirk Van Peteghem

© 2012 Deloitte The Netherlands

Mobile commerce is growing rapidly, and retailers need to act quickly to

capitalize on this opportunity

1 Mobile in Consumer Business – End-to-End Consumer Experience

120

75

35

12

2014 2013 2012 2015

Dutch mobile commerce advertising market (€m) (I.)

I. Source: Gartner (December 2011)

Mobile Device Sales to End Users by Device Category,

2008-2015 (Thousands of Units) – Dutch market (I.) 8.000

7.000

6.000

0

2015 2014 2013 2012

5.000

4.000

3.000

2.000

1.000

2011 2010 2009 2008

Smartphones (Premium Communication Devices)

Regular mobile phones (Low-Cost Mobile and Basic Communication Devices)

Mobile Device Users enter a new era...

Smartphones are emerging as the most dominant consumer

technology platform, organisations cannot mention multi-channel

without also discussing mobile

Mobile consumers are no longer just early adopters: They

represent a broad range of consumer segments and have

become part of the mainstream population

Since a significant population of mobile users has not even

reached shopping age, organisations can anticipate that mobile,

and all the capabilities and opportunities it offers, will be top of

mind among retailers in 2012

... and this has implications for e.g. retailers

For retailers looking to remain relevant in this connected

consumer environment, the ability to leverage mobile to deliver

an improved customer experience will be a critical success

factor

However, many retailers are diving in without a clear strategy,

and few have launched an integrated multi-channel experience

Retailers that can deliver an integrated customer experience

demonstrating a clear understanding of consumer preferences

and behaviours across the purchase process will have an

advantage over the competition


Due to new technologies the ‘Consumer Connection’ is evolving to a 24/7

global community and retailers need to act upon


'Consumer Connection' evolution

Past Friends and

Family

1 on 1

conversations

First-hand

knowledge

Local

environment

Fixed time

slots

Future Virtual

networks 1-n broadcasts

All available

information Global 24 / 7

Who How What When 12

6

3 9

Where

155B social connections on Facebook and Twitter

50% of the adults has joined a social network in 2012

40 websites are visited by the average consumer each day4

50% of the Americans has a smartphone in 2012

70% of Facebook & 60% of Twitter users are from outside the U.S.

65 languages are supported by Facebook

300% more media is currently used in comparison to 1960

10M tweets are brand or product related daily

2%-5% is the range of all twitter activity for each hour of the day

9am and 9pm are peak hours on Facebook7


Mobile solutions can deliver an end-to-end consumer experience which is

available anytime, anywhere


Pre-Purchase Purchase Post-Purchase

Mobile

Social

Interaction

Interactions

between

customers or

between

customers and

associates via

social networks

on mobile

devices

Mobile

Marketing

Mobile device as

a marketing

channel,

leveraging

technologies

such as location

based services

to deliver a

uniquely

personalized

experience

Mobile

Product

Discovery

Customers

searching for

products,

ratings, reviews

and price

comparison

whenever and

wherever they

want

Mobile In-

store

Purchase

Customers use

mobile device as

physical

payment device

Mobile Self-

Checkout

Customer using

mobile device to

scan products

for in-store

checkout without

the need for

traditional POS

systems

Mobile

Internet

Purchase

Customers

purchasing

through the

mobile device

with a registered

payment

instrument

Customer

Device

Customers

using mobile to

manage

products or

services

purchased, and

to provide

feedback

Wide range of opportunities:

Additional consumer touch points

Robust and timely customer data

Ability to personalize the shopping experience

Seamless integration of the traditional and e-commerce

channels

As a differentiator of existing e-commerce operations

Other retailers „in your store‟ via mobile product and price

comparisons

Integration with existing business strategies and systems

Overwhelming number of ever-changing opportunities

Less control over the customer experience


Deloitte’s European eCommerce assessed the maturity of European e-

retailers in mobile and online

4

Personalisation &

recommendations

Multi-channel Rich content

Mobile commerce

Social media

integration Globalisation

Extended capabilities

Storefront

Fulfilment

User

experience Product search Catalog

User

management Shopping cart

Shipping &

fulfilment

Shipping

details Manage orders Place orders

Customer

service Payments

Top 200 European e-retailers in 8 sectors were assessed on 17 dimensions and 140 criteria


Mobile commerce is most mature in UK and France

5

Leve

l o

f m

obile

ma

turity

NL SE DE SP IT FR UK TR

Mobile site/app

Share with friends

Mobile store navigation

Mobile barcode scanning

General merchandise and Fashion have the most advanced adoption

Consumer electronics falls behind in mobile capabilities


Top performers in mobile per sector

6

Consumer electronics Fashion General Merchandise

FNAC

France

Topshop

UK

Debenhams

UK

Siba

Sweden

Zara

Spain

Tesco

UK

Mediaworld

Italy

H&M

NL

Argos

UK

Mobile site/

app Mobile barcode

scanning Mobile store

navigation

Share with

friends


Buy or check stock Social sharing Barcode scanning

Mobile best practice

7

Browse catalog View products Remember your size Topshop (UK)


Deloitte supported Avon in making their on-the-go representatives more

successful in selling their products

• The easy-to-use iPhone application sells one item a day until

it is sold out or until the deal is replaced.

• The deal is presented to the iPhone user and with a few

simple taps the purchase is made.

• Orders are automatically submitted to Avon and are delivered

with the representative's next shipment.

• Avon representatives can get daily Avon deals sent directly to

their iPhone or iPod Touch.

• Purchases are secure and password-protected. The app

stores credit card information


Reference: Schwan’s


Defining and delivering the right mobile consumer experience yields

tangible financial results


Revenue

Financial Benefits

of Mobile

Increase

Basket Size

Increase

Traffic

Increase

Brand

Loyalty

Increase

Conversion

Product

recommen-

dation

In-aisle

marketing

Mobile product

search

Targeted/

personalized

couponing

Mobile

checkout

Price

comparison

In-store

navigation

Proximity

marketing

Store-specific

information

Social

marketing

Mobile loyalty

Account

management

Personalization

Costs

Reduce

Labour

Costs

Increase

Marketing

Efficiency

SG&A

Self-checkout

(in-store and

out-of-store)

Product recom-

mendation

Customer

service

Mobile-

checkout

(potentially

lower

interchange

fees)

Social

marketing

Location based

marketing

Personalized

marketing

Example: Mobile shopping tools to drive traffic and increase

conversion:

Example: Mobile shopping tools to drive traffic and

increase conversion:

Customer is near a retail store

Retailer sends a message to the customer letting

him/ her know that the grocery items on his/ her

shopping list are on sale today

Customer is also informed of other related items

that would be of interest

Customers search for items and

discover where item is located in store

Customers can avoid long lines at

check-out by checking out themselves

Mobile payment solutions may lower

interchange fees


Deloitte’s comprehensive mobile service offerings support companies at all

levels of mobile maturity


1 Strategy

Programme Management

Mobile Organisation & Governance

User Experience / Interface Design

Security & Privacy Mobile Sourcing

Mobile IT Integration

2 Implementation

Compliance Performance Management

Mobile Data Analytics

Customer Interaction & Feedback

App Life Cycle Management Mobile Content Management

3 Operations

Customer Behaviour & Needs Mobile Trends Assessment

Mobile Strategy Roadmap Mobile Capabilities Assessment Business Case Development

Competitive Assessment


Deloitte has proven its mobile capabilities for leading clients


Different market analyses on

several segments of the Dutch and

international markets

Online and mobile commerce

market

Including mobile advertising and

couponing

Assessment of NFC developments

and impact on the market

Basis for business cases for

mobile strategy

Market analyses for

Mobile Commerce

Market analysis of Dutch and

international markets for NFC

services, both for payment and

other services

Development of business strategy

and go-to-market strategy

Improved programme control due

to a renewed governance structure

and processes for program

management and intelligent PMO

Execution of programme

management, intelligent PMO and

support for various work streams

Strategy and programme

management

for Mobile Payments

Charity fundraising through mobile

payments in emerging countries

Focus on 3rd party payment

gateways and Telco‟s as payment

method

Modular business case model for

analyzing different scenarios for

accessing these (mobile) payment

methods in different countries

Resulting in which country to

include and a high-level roadmap

to estimate project costs and

guidance for roll-out

Business case development

for Global Mobile Digital

Payment Platform


Recently Deloitte has acquired Übermind and established the lead position

in the Mobile Revolution

January 2012, Deloitte acquired Seatle based company Übermind, an innovative mobile agency

With this acquisition Deloitte strengthens its position in the mobile market with Übermind‟s capabilities

in mobile strategy, engineering, design and creative talent

Übermind is leading mobile agency helping companies using disruptive technologies to create inspiring

and intuitive mobile applications designed to both strengthen brand and transform the business



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mobile in consumer business - end-to-end consumer experience - deloitte

Technology

mobile solutions

mobile tobetween channel

dominant consumer

retailers smartphones

device category

twitter users

purchase process

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