Make An App For Winning Retail Mobile Strategies

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Make An App For That:
Strategies For Winning Retail
Mobile Strategies

Altimeter Group Webinar #appforthat
March 2, 2012

Chris Silva
Industry Analyst, Mobile

Smartphones And Tablets Are Where
Users Turn When Shopping

© 2012 Altimeter Group

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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.


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People can’t buy smartphones fast enough

iPhone 4s: 4M
devices in its first
weekend, bests
Kinect as fastest
selling device ever!


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Smartphone Ownership Continues Meteoric Rise

The new mobile
customer is
overwhelmingly a
smartphone customer.


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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.


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We’re Seeing These Shoppers Grow Rapidly
U.S. Online Holiday Spend: 2011 vs. 2010 Overall Holiday
Spend (Nov.1-Dec. 26)
Thanksgiving Day (Nov. 24)
35274

Black Friday (Nov. 25)

Millions ($)
26% YOY increase 30591

Thanksgiving Weekend (Nov. 26-27)

Cyber Monday (Nov. 28)
22% YOY increase 2011 2010
Green Monday (Dec. 12)
15% YOY increase
2011
Free Shipping Day (Dec. 16) 2010

2011 saw gains on
Week Ending Dec. 25
every major
0 500 1000 1500 2000 2500 3000 shopping day over
Millions ($) 2010.
Source: Comscore, Q4 2011


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If You Build It… They’re Already There

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.

Why Many Are Lagging In The
Race


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Not All Brands Are ―Flying High‖
Altimeter Identified 3
Phases Of Mobile
Maturity, Which One
Does Your
StrategyFeel Most
like?


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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.


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The Second, Choosing The Right App

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.

ENGAGE


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Different Apps Serve Very Different Purposes

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.

ENRICH


Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253

What Winning Looks Like

2011

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Engage: Sephora-To-Go app serves up the
ultimate palate of engagement

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!


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Engage: Home Depot designs multi-channel QR code
campaign to aid the considered purchase— online and
off

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.


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Engage: GE’s Moodometer helps you find just the
right bulb


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Enrich: Overstock.com develops mobile app to
promote, complete with scratch-off daily coupons


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Enrich: Taco Bell joins forces with MTV to offer
exclusive sneak-peak award show music and video
content

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.

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Enrich: Redbox’s 10 Days of Deals mobile campaign
drives mass awareness, engagement, sales

Using multiple channels
to drive awareness:
• 1.5 million texts in 10 days
• 400,000 unique participators
• 200,000 new Redbox
customers


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Enrich: Tesco customers scan and purchase
goods in virtual subway supermarkets

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%.


Focus On Goals, Path Then App

2011

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Next steps: Where Are You Now?

 Where are you today?

 What is your endgame?

 What should the app be?


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Next Steps: What Is The Business Seeking?





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Next Steps: Building The Best Tool





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Choosing strategy
 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


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THANK YOU

Chris Silva
Industry Analyst, Mobile
csilva@altimetergroup.com
makemobilework.com
Twitter: 802dotchris

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ABOUT US
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
info@altimetergroup.com.

Make An App For Winning Retail Mobile Strategies

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