Mobile Playbook 2016

Shopping at Our Customer’s Fingertips CANADIAN TIRE

Summary Mobile is still the main business challenge cited by the majority of retail C-executives.

We are in the age of the customer -the digital customer*

95% of retail target customers are now digital.

65% of retail target customers are Mobile Savvy

28% makes Mobile Purchases. In 2018 this is forecasted to be 50%*

The introduction of mCommerce in Q3 2015 is reflecting the dramatic impact of mobile on Revenues and Sales. Figure 1.

The Playbook provides a quick read of the Mobile Products built for Canada’s biggest and most iconic retailer in 2015 and 2016. A great experience thanks to many awesome and creative team members proudly resulting in a dramatic growth of many business metrics.

. *Source: Forrester Report “Focus on Serving Your Customers in Their Mobile Moments” | July, 2015

Figure 1

JUL O %

mCommerce as % of ONLINE SALES

SEP OCT NOV AUG

THE IMPACT OF MOBILE The Mobile Channel – a Hidden Gem

Canadian Tire’s Digital Future

entered an important new era

since summer 2015.

Mobile Shopping is here and

Customers Love it.

The Only Remaining Competitive Advantage

“Great customer experiences go beyond great products and commerce experiences; it includes all the

moments where we can add great value or provide a service”.

Being in the age of the digital customer, the focus clearly needs to be on providing the best experience possible.

Mobile -savvy customers now want to get what they want in their immediate context and at every moment-of-need. Anytime, Anywhere. At their fingertips.

Customer experience is the only remaining competitive advantage.

Reducing frustation, providing the best customer experience and valuable services on mobile devices is in the core the Mobile Strategy.

Customers want to get things done simple, be served in their moments of need and make their lives easier, not more frustrating.

Mobile Shoppers have different wants and needs than desktop users and we believe this should be reflected by designing for a mobile specifc experience. These mobile experiences are aligned with the online omni-channel customer jurney.

CT introduced user experience testing for a new native app. As a result, we got great feedback. (Figure 2)

Responsive design is not well suited to increase online sales from mobile phones. A/B testing among 1,000 online retailers* shows:

Having a separate mobile website and native app provides up to 400% better sales results than responsive design.

Responsive web design can drop online conversion to 50%.

Responsive web design reduces speed. Mobile websites with over 3 second loading times lead to over 40% increase of people abandoning sites.

*Source: Shopgate “Responsive Design For eCommerce: Don’t Do It!” | 2013

Mobile is not Web !

Figure 2

As a clear consequence online sales have taken by storm. (Figure 1)

Unique monthly app visits grew dramaticaly in the first weeks after introducing mCommerce.

All this was achieved without any promotional and marketing effort.

From serving initially mainly informational content, the focus shifted to serving the customer best-in-class shopping experience in the app. The focus on making transactions simple and easy directly impacted bottom-line.

The App moved in the Top 10 of Shopping Apps in summer 2016.

Facts and figures from research and forecasts (See infographic at pages 3) shows that the launch of mobile shopping was the right next move.

While playing on par to the industry average, bold next moves were required.:

Winning means following an aggresive Mobile Roadmap. A Digital Catalogue with AR and VR experiences added, was launched ! (See next slides)

Mobile 2.0 From informational to transactional When Mobile Commerce was introduced an important milestone was achieved. Now customers were enabled to shop from their mobile devices.

“Mobile moments in the discover, explore and buy stages of the customer journey drive customers

toward transactions”.

Mobile leveraging the latest mobile experiences

The WoW guide, launched at Q2 2016, was the gateway for all Canadian Tire’s eCommerce Channel

Using Augmented Reality from the App, customers are enabled to unlock digital bonus content by hovering over the WoW guide

The Virtual Reality App was the first app worldwide launched by a big box retailer to enable a new way of shopping.

A great team in the Winnipeg lab build a new app allowing to design your own patio and in-app shopping for any products . Ofcourse after virtually experienced the fit in your own virtual backyard using Google’s Cardboard.

Mobile Retail’s greatest opportunity is to help return the store to relevance.

Mobile is by far retailers highest rated business challenge.

In 2015, Canadian Tire has been picking up the challenge ‘to be there’ for customers. The team established a strong organizational foundation, the introduction of first levels of mCommerce and the order and pick-up approach.

In 2016, Mobile apps will drive store’s understanding of the new shopping behaviour: Building more loyalty and driving sales with more personalised and local offers.

To provide location-based services like local store-specific offerings will use latest sensor technology (beacons).

Beacon-triggered messages are best to influence sales by pulling shoppers into the store. By sending messages with great local deals to customers even when they are not in store yet. It will increase in-store traffic, grow basket size and thus boost our local store sales!

Loyalty programs are another important driver.

Beacons and the CT Money program membership can provide exclusive rewards, just by walking into a local store.

The Store as Killer App

A huge component to providing a positive experience is personalization. Mobile devices are the most personal way to interact with customers in a digital environment.

Comscore also found people spend more time in apps than at mobile browsers.

App-data from Comscore tells another crystal clear fact; apps dominate the customer experience.

Two key initiatives were deployed in 2016 to create deeper engagement with our apps:

Mobile Transformation: a large app redesign effort towards a better experience for our Mobile Shoppers.

Shopping and Wish Lists combined with special (mobile-only) offers will fuel customer appetite to spend more app-time.

Use of the best available mobile marketing tools like in-app messaging and push notifications gets it personal with customers.

These are mobile-only tactics to achieve high conversion and drive sales through better check-out, higher order size and real time personal offers.

Let’s get personal

Lets not forget another mobile app achievement. In 2015 associates were equipped with special mobile phones including an employee app to service customers more and better in-store.

Apps with employee-assisted services help customers in-store finding the right products faster.

Adding our mobile x-factor, mCommerce, to our employee’s mobile arsenal to create more employee-assisted selling, is next

B2E2C

Catch is not just another app. It provides services (and value) to people who have angling as (a big part) of their Canadian lifestyle. Those services are now digital or going digital to enhance the avid angling lifestyle.

Catch helps digital business grow in 2 specific ways:

It introduces new and innovative business models for digital interactive services. The social network is the core of the model but Catch goes beyond just socializing between avid anglers.

Catch facilitates a platform where consumers share, collaborate and interact. In the App, customers help other customers and are advocates of the brand (outside-in approach).

These 'Brand Fans’ improve the customer experience, generate content, share idea’s and improve products. The more interaction, the bigger the platform. Ultimately, it results in a better customer engagement with the brand, products and stores.

The Catch app drives innovation, new marketing methods and even productivity gains. It improves new, interactive communications with the digital customer.

Innovation on Digital Interaction

Mobile Playbook 2016 For more information:

MICHAEL VAN DEN BERG Director Mobile Strategy and Mobile Products Michael.vandenBerg@cantire.com