MobiU2012 Summit: The 24/7 On-the-Go Consumer by United Airlines
MobiU2012 Summit: Showrooming Study by Deloitte
1. The Mobile Influence Factor
Bobby Stephens, Senior Manager, Deloitte Consulting - @bobbystephens
Jazz Singh, Manager, Deloitte Consulting - @DeloitteDIGI_US
Event hashtag #MobiU2012
Presented by the Heartland Mobile Council
2. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Agenda
• Mobile Growth; Unclear Investments
• Deloitte’s Mobile Influence Survey
- Approach & Methodology
- Mobile Influence Factor
- Detailed Findings
• Predictions for The Future
• Q&A
5. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
…yet retailers struggle to justify investment
Mobile’s Value Mobile Lacks Retailer
+ =
isn’t Clearly Organizational Investment in
Understood Visibility Mobile Remains
Low
82% of Retailers 42% of Retailers 52% of eBusiness
state objective for state mobile Managers state
mobile is to drive strategy falls under they struggle to get
online sales Web/eCom Team budget/resources
Sources: Forrester Research – The State of Online Retailing 2011: Marketing, Social, and Mobile, June 3, 2011
6. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Realmobile’s influencenot in-store conversion
It’s value for retail is on mCommerce..
US mCommerce Sales ($12 Billion)
US Retail Sales ($3.4 Trillion)
Even if 1% of retail sales are influenced by mobile
Mobile Influenced Retail Sales ( $34 billion)
7. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Introducing…
Deloitte’s Mobile Influence Survey
Conducted between March 20-30, 2012
Polled a national sample of 1,041 random consumers
and an additional 1,000 smartphone owners
Data was collected and weighted to be representative
of a U.S. Census for gender, age, income and ethnicity
9. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Survey drove estimate of the “Mobile
Influence Factor” by category…
Own a Use it in
smartphone particular retail
category
Mobile Influence
Factor by Retail
Category
Frequency of use
Total in that category
consumer Use it for store-
population related shopping
Source: Deloitte Survey
10. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
…mobile influence on store sales is already a
game-changing opportunity
US mCommerce Sales ($12 Billion)
US Retail Sales ($3.4 Trillion)
5.1% of sales are influenced by mobile, which means..
Mobile Influenced Retail Sales ( $158 billion)
11. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Mobile adoption differs by category, but once
adopted it is used in 50 – 60% of the trips
Smartphone Shopping Adoption
by Store Category
Electronics
60.9% 8.3%
GM & Department Stores
52.5% 6.7%
Clothing
56.2% 5.9%
Food & Beverage 58.2% 5.7%
Books & Music
57.1% 5.2%
Home Improvement 4.6%
53.5%
Sporting Goods 56.7% 4.7%
Health & Drug 58.4% 4.4%
Furniture 58.7% 3.9%
Office Supply 51.1% 3.1%
Convenience Store 56.0% 3.0%
12. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
~20% of retail store sales will be “mobile
influenced” by 2016
Mobile Influenced Sales ($ Billion)
% Change N/A 43% 40% 39% 32%
% of Total
5.1% 7.1% - 7.5% 9.8% - 10.7% 13.3% - 15.3% 17.2% - 20.6%
Retail Sales
Source: Deloitte Analysis
14. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Showrooming can be an opportunity, if you
can influence customers’ mobile choices
How customers use Call or Text
Smartphones in Store
Search using Search Engine
Non-retailer-specific Mobile App / Site
Retailer-specific Mobile App / Site
Social networking sites /
apps to share product info
None of these
15. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Retailers who provide a tailored experience
via mobile apps stand to gain the most
Retailer-specific Mobile App / site
Social networking sites /
apps to share product info
Call or Text
Search using Search Engine
Non-retailer-specific Mobile App / Site
16. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
Deloitte’s Mobile Influence Factor -
Conclusions
• Retailers are investing in mobile, but yet to have a
industry-wide “business case” to reference
• “Mobile influenced” store sales are the secret sauce for
retailers, not mCommerce
• In Mobile, like in retail, one size does not fit all
• In-store conversion hinges on enabling the right
capabilities AND getting customers to adopt quickly
17. #MobiU2012, @bobbystephens, @DeloitteDIGI_US
The Future of Mobile in Retail...
Mobile form factor will change
Mobile will transform
and continue to blend the lines
the physical store & the
between “online” and
store associate
“mobile”
Mobile
Mobile
Disruption
Disruption Mobile interactions create
Mobile will force the credit
increasingly rich data for
card to go the way of the
retailers to use
personal check
Explosion of Data
Mobile truly shifts the
power of assortment from
retailers to the consumer
Notes de l'éditeur
Investment in mobile, latest happenings from a business perspective around mobile: Private companies in mobile raised $3.9 billion in venture capital in the first half of 2012, which is $1 billion greater than the same period in 2011 (Rutberg & Co) In North America, $800 million was invested in mobile marketing efforts (Interactive Advertising Bureau) Google’s R&D budget - $5.2 bn, Apple’s R&D budget - $2.6bn (Company 10Ks) Smartphone penetration is growing and will reach 176 M users or 54% of the population by 2015 (eMarketer) Average Retailer spend on mobile presence remained less than $50,000 in 2010, although 69% of eBusiness teams planned on increasing investments in 2011 (Forrester)
Consumer adoption and Consumer Use Smartphone penetration is growing and will reach 176 M users or 54% of the population by 2015 (eMarketer) Users are doing more with their mobile devices resulting in bandwidth use increasing 10X by 2015 (Cisco) Analysts expect 30 million iPhones to be sold this quarter ( http://business.financialpost.com/2012/09/14/apple-iphone-5-seen-sold-out-on-first-presale-day-boosting-shares-to-record-high/ )
82% Retailers state objective is to drive online or mobile sales 42% state ownership of mobile strategy falls under Web/eCommerce team 52% of eBusiness managers say they struggle to get the budget or resources for mobile Source: Forrester Research – The State of Online Retailing 2011: Marketing, Social, and Mobile, June 3, 2011
Retailers’ future core customers will be increasingly using smartphones 67% of smartphone owners age 14 to 34 years old have used their devices to shop 48% of smartphone owner claim that device has influenced their purchase decision. This is even more pronounced in the younger population - 55% of smartphone owners 14 to 34 years old say smartphones have influenced their decision
Make a new slide and show the numbers. Once consumers find a use for their smartphone for a particular type of store, they tend to consistently use it for 50 to 60% of their trips. - Smartphones currently influence 5.1 percent of annual retail store sales -- $159 billion in forecasted sales for 2012
Mobile’s influence will continue to grow exponentially over the next four years, driven by: Rising smartphone penetration Increased smartphone use by shoppers (Smartphone use for store-related shopping increases by 40% after the first 6 months of device ownership ) - Decreasing barriers to use (e.g. more stores implementing free wi-fi) - Improved mobile functionality of applications that support the store shopping experience
