Retailers need to start capitalizing on mobile's greatest opportunity - influencing in-store sales. It will supplement investments and efforts that retailers have undertaken to improve sales and profitability. As such, 5 features will be top of mind for retailers this year: 1. Behavioral messaging 2. Location-based messaging 3. Analytics 4. In-store navigation 5. Inventory integration

1. MOBILE RETAIL:
Using mobile to influence in-store sales

2. CUSTOMERS FIRST
Reaching out
Getting customers in the store
of phones sold today are
smartphones
How can you target this
growing group of potential
customers and draw them
in-store?
Most consumers take their
phones with them
everywhere they go...
By creating a mobile
experience that
complements customer
behavior...
...allowing retailers to contact
them anywhere, anytime
...instead of trying to
change it
Sources: Cognizant, 2012; Marketing Charts, 2012

3. RETAIL LANDSCAPE
Retailers have only begun to address the mobile channel
83%
YOY mCommerce sales almost
doubled in 2012
of surveyed retailers
have at least one mobile
offering
mCommerce: percentage of
total eCommerce sales
2011
2012
5.2%
9.2%
mCommerce: total sales
67%
49%
66%
2011
2012
Mobile Web
Android
iPhone
$10.5B
$20.85B
Sources: Forrester, 2011; Deloitte, 2012

4. OPPORTUNITY
of retailers surveyed state that the
objective of mobile is to increase
revenue in the digital channel
But…92% of retail volume occurs
in physical locations
MOBILE-INFLUENCED STORE SALES VS. MCOMMERCE AND ECOMMERCE SALES
2012
2016
$12B
$31B
mCommerce (remains at 3%)
$158B
$327B
Mobile influence on store sales
(increases by 26%)
$226B
$689B
eCommerce sales (decreases by 26%)

5. This year, retailers will start capitalizing on mobile’s greatest
opportunity: influencing in-store sales. It will supplement the
investments and efforts that retailers have undertaken to improve
sales and profitability.
5 FEATURES
will be top of mind for retailers this year:
1. Behavioral Messaging
2. Location-Based Messaging
3. Analytics
4. In-Store Navigation
5. Inventory Integration

6. BEHAVIORAL MESSAGING
Send messages directly to customers based on how they use your app
BEST USE CASES
BEHAVIOR ADDRESSED
WHO USES IT?
•
•
1-800-Flowers
Victorias’s Secret
HauteLook
Michaels
Walgreens
Groupon
•
•
Promote products/offers related
to app touchpoints used by
customer
Deliver timely, relevant
information (sales, promotions)
Pre-purchase, during, and postpurchase interaction
•
US consumers spend an average
of two hours per day on their
mobile phones
Canadians spend
2.8 hours per day and 222 times
per month on their smartphone
Sources: McKinsey & Company, 2011; Ipsos, 2012

7. LOCATION-BASED MESSAGING
Target customers with location-relevant messaging
BEST USE CASES
•
•
•
Establish geo-fences to push offers,
deals, and coupons based on
proximity to store (e.g., $1 coffee at
Starbucks, flash sales at Aritzia)
Can trigger unique interactive
experiences (e.g., in-app betting at a
sports game)
Build customer loyalty - offer
exclusive offers to targeted customer
segment
BEHAVIOR ADDRESSED
•
Mobile coupons are redeemed
10 times as often as traditional
coupons
•
4% of consumers receive
mobile coupons from stores
close to them, but 40% are
interested in receiving them
WHO USES IT?
McDonald’s
Heineken
Marks & Spencer
Tesco
Sainsbury’s
Sources: Graphic Mail, 2012; Mercator Advisory Group, 2011; Location Based Marketing Association, 2011

8. ANALYTICS
Interact with customers based on cart analytics
BEST USE CASES
•
•
•
Interact with customers while they
shop
•
Offer personalized promotions
and deals based on what they
have in their shopping cart
•
Analyze items in cart to push
them to relevant products
around the store
Augment customer behavior - offer
alternative ways for consumers to
explore and shop
Increase browsing time by notifying
customers on the best time to line up
for checkout (based on cart size)
BEHAVIOR ADDRESSED
WHO USES IT?
•
Walmart
Target
Kohl’s
Gilt
•
54% of people who use their
smartphones in the store are looking up
other local stores’ pricing, while 53% are
looking for online pricing
46% of consumers have used their
phone to get product information while in
a store
Sources: Mobile Marketing Daily, 2012; Mobile Commerce Daily, 2011

9. IN-STORE NAVIGATION
Provide item locations and an optimal shopping path
BEST USE CASES
•
•
•
BEHAVIOR ADDRESSED
WHO USES IT?
Customers create in-app shopping lists
and app recommends optimal shopping
path
Location triangulation can be used to
offer coupons on additional products:
•
Complementary (PB and J),
proximity (same aisle), new and
never tried
Massive data channel for retailers to
analyze buying patterns and time spent in
location
•
Used to optimized aisles and
product placement (IKEA trip
mapping)
•
aisle411
Walgreens
Price Chopper
•
•
A survey commissioned by aisle411
discovered that nearly 84% of US
shoppers have difficulty finding
products on store shelves
More than 20% of shoppers leave the
store without their full purchase intent
85% of consumers surveyed who used
a retailer’s native app or site actually
made a purchase that day, compared
to only 64% who didn’t use the
retailer’s app or site
Sources: Deloitte, 2012; Mobile Commerce Daily, 2012

10. INVENTORY INTEGRATION
Enable salespeople to close deals by having immediate access to alternative suggestions
BEST USE CASES
•
•
•
•
Customer sees a product they like
in-store and wants to see alternative
sizes
Recommendation engine for
employees to offer products if initial
choice is out of stock
If product is out-of-stock, can close
the sale in-person and ship it to the
customer’s home
Improved analytics for retailers track in-store product requests that
are hard to monitor
BEHAVIOR ADDRESSED
•
73% of shoppers with smartphones
prefer to reference their mobile device
while in- store rather than ask a sales
associate for help
WHO USES IT?
Aldo
Apple
Source: internet Retailer, 2010

11. CONCLUSION
This year, mobile’s greatest opportunity will be influencing in-store sales. By
implementing a mobile strategy that embraces customer’s current behavior,
retailers can engage their customers anywhere at any time and draw them instore.
Retailers who wish to capitalize on the investments they’ve already made to
improve sales and profitability should follow these five trends:
1.
2.
3.
4.
5.
Behavioral Messaging
Location-Based Messaging
Analytics
In-Store Navigation
Inventory Integration

12. Tell us how we can align to your success.
Contact us at info@pivotallabs.com
For more information, please visit: www.pivotallabs.com

13. SOURCES
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Deloitte. (2012). The dawn of mobile influence: Discovering the value of mobile in retail. Retrieved from http://www.deloitte.com/assets/DcomUnitedStates/ Local%20Assets/Documents/RetailDistribution/us_retail_Mobile-Influence-Factor_062712.pdf
Forrester. (2011, June 17). Mobile Commerce Forecast: 2011 to 2016. Retrieved from http://www.forrester.com/Mobile+Commerce+Forecast
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