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Diary of a Social, Mobile, Local Shopper Adventures from the Cutting Edge of All-Channel Commerce

Diary of a Social, Mobile Shopper Slide Deck

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Patti Harney, Retail Product Strategist for RedPrairie, will discuss her real-world experiences using these apps during the 2010 holiday season.

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Page 1: Diary of a Social, Mobile Shopper Slide Deck

Diary of a Social, Mobile, Local Shopper Adventures from the Cutting Edge of All-Channel Commerce

Page 2: Diary of a Social, Mobile Shopper Slide Deck

Welcome Webinar Attendees  

Your  GoToWebinar  A/endee  Viewer  is  made  of  2  parts:  1.  Viewer  Window   2.  Control  Panel  

Type  your  ques9on  here  

Page 3: Diary of a Social, Mobile Shopper Slide Deck

Follow this webinar on Twitter:

#LiveWebinar.

@RedPrairieCorp @RTouchPoints

Page 4: Diary of a Social, Mobile Shopper Slide Deck

  Launched in 2007

  Over 20,000 subscribers

  To provide executives with relevant,

insightful content across a variety of digital

mediums

Free subscription to our weekly newsletter… retailtouchpoints.com/signup

About Retail TouchPoints  

Page 5: Diary of a Social, Mobile Shopper Slide Deck

Panelists  

Dave Bruno Director Strategic Messaging RedPrairie

Patti Harney Product Strategist RedPrairie

Amanda Batista Associate Editor Retail TouchPoints

Moderator  

Page 6: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved.

Diary of a Social, Mobile, Local Shopper Adventures from the Cutting Edge of All-Channel Commerce

Page 7: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 7

RedPrairie Acquires Escalate

•  Bringing together solutions that integrate and optimize the customer experience, from search to sale to delivery, no matter when, where or how the customer chooses to shop

Page 8: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 8

51% considered information shared on their networks when making a purchase decision --eMarketer

The average consumer mentions specific brands over 90 times per week -Keller Fay, WOMMA

By 2014, 53% of total retail sales will be affected by the Web --Forrester

81% received advice from friends about a purchase through a social site --Click Z

74% who received such advice found it to be influential in their decision --Click Z

Consumers Have Jumped All Over The Social Shopping “Bandwagon”

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 9

Huge Social Networks Have Forever Changed Online Behaviors

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 10

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User Reviews Take Hold

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The Lure of the Crowd Sends Deep Daily Discounts Viral

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 12

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The “Like” Button Becomes Ubiquitous

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 13

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The Crowd Has Spoken

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 14

The Facebook Effect

Over 350,000 sites have already installed Facebook’s like button. ABC News traffic from Facebook rose 250% after Like button. 86% of United States online retailers have Facebook fan pages. 41% of people ‘like’ pages to show friends brands they support. Facebook users spend over 700 Billion minutes per month there. 30 Billion pieces of content are shared on Facebook per month. The average Facebook fan is worth $136.38 to a brand annually. The top 10 brands on Facebook added 115 Million fans in 2010. Facebook added 7.9 new accounts every second in 2010. P&G: 1,000 transactions/hour on the Pampers’ Facebook page. Facebook shoppers have 7%-10% larger shopping carts.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 15

Over 350,000 sites have already installed Facebook like button. ABC News traffic from Facebook rose 250% after Like button. 86% of United States online retailers have Facebook fan pages. 41% of people ‘like’ pages to show friends brands they support. Facebook users spend over 700 Billion minutes per month there. 30 Billion pieces of content are shared on Facebook per month. The average Facebook fan is worth $136.38 to a brand annually. The top 10 brands on Facebook added 115 Million fans in 2010. Facebook added 7.9 new accounts every second in 2010. P&G: 1,000 transactions/hour on the Pampers’ Facebook page. Facebook shoppers have 7%-10% larger shopping carts.

The Facebook Effect

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 16

More and More Retailers and Brands are Jumping on Facebook

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 17

Beyond Facebook

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QR Codes Hit the Big Time

Increase in QR code scans between July & December 2010

of Facebook and Twitter users scanned QR codes 5x in past 12

months

Source: Mobio Identity Systems

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 19

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YouTube Explodes Source: Mashable

YouTube video views per day, as of

May 2010

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Yelp Puts the Crowd (and their Smartphones) to Work

monthly visitors to Yelp

of all Yelp reviews are in the “shopping”

category

Source: Yelp

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 21

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Location Sharing Gains Traction

have used a service that automatically determines their

location

use mobile location services at least once

a week

iPhone owners use location services at least once a week

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The Face of Gaming is Changing

social gamers in the United States

of social gamers are women

estimated annual spend per player

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 23

Tweeters recommend companies/products

53% Monty Python DVD sales growth after launching YouTube Click to Buy

23,000%

18,000 Foursquare users checked in at Target stores on Black Friday

$3.24B Spent on virtual goods in Second Life in 2010

The Numbers Are Beginning to Add Up

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 24

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While Social Shopping May Pose Threats…

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…Social Shopping Also Represents Great Opportunity

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Diary of A Social, Mobile, and Local Shopper

Early Retail Attempts to Monetize the Crowd

$

$

$ $

$

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 27

Introducing Our SoMoLo Shopper…

Patti Harney RedPrairie Product Strategist 25 Years in Retail/Retail Technology

Patti’s Shopping Profile: •  Avid shopper •  Tech savvy •  Always trying new channels, touch points, devices •  Very comfortable with mobility

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 28

Limited-Time Offers and “Daily Deals”

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 29

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Daily Deals Text Messages

•  Signed up for daily text alerts •  Deals available only online •  Limited stock and buying quantities

•  Items may sell out - and often did •  Good savings & free shipping •  Expiration countdown & limited stock

•  Created a sense of urgency

12/31 Daily Deal: Save for a Rainy Day: Women’s Assorted Rain Boots, $17, save 32% http://bit.ly/a9e522 (Stop DD to end) Msg & data rates apply

I didn’t always purchase, but text messages were easy to manage and

filter. I am continuing with these.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 30

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Mobile Coupons at Target

• Register for mobile coupons sent via text •  Linked to a bar code coupon scan at POS

• Cashier & others were unfamiliar; coupon did not scan

• They followed cashier instructions on my phone to complete the sale

I tried again two weeks later, all worked as advertised, and I made the purchase.

I am continuing with these.

Mobile Coupon: Save on Avatar DVD, Video Games, Pet Food, & more. Click Here: http://target.mobi/c?p=DHKX9P5-DKS6B29-IPNTU Msg & data rates apply

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 31

Sampling a Variety of Daily Deal e-Mails

•  Registered for daily deal e-mails on multiple sites >  Great discounts with limited

quantities sold per person >  Some sites provide ability to

personalize offers for notification

>  Expiration countdown & items sold ticker created a sense of urgency and need

I did make some purchases, but I found the e-mails difficult to manage/filter

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 32

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Special Social Offers from a Local Business

• Most offer incentives to refer your friends •  $10 for a referred 1st time buy •  $10 for 3 referrals on a single offer

• Easily post offer to social sites

I posted the offer on FB, and received a $20 reward for two referrals!

Page 33: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 33

Location-Based Services and Marketing

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 34

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The Gap and Foursquare

• Checked in via Foursquare • Was notified of a “Special Here”

• Offered 30% off one item • Mentioned “Foursquare” to the cashier

•  Initially caught off-guard • Provided discount after seeing my phone

I made a purchase when I hadn’t even planned on entering the store!

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 35

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“Special Offers” at Express

•  Checked in via Foursquare •  Alerted to a Foursquare “Special Here”

•  Offer was a notice of “End of Season Clearance”

•  Not an offer unique to Foursquare

I didn’t feel urgency or incentive to buy, so I continued on down the mall.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 36

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Micro-Local (Inside Macy’s) with Shopkick

• Checked in via Shopkick app •  Offered Friends & Family 25% off

• Showed cashier my phone offer and mentioned Friends & Family Discount

•  Not available to all people in the store I did some buying!

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More Shopkick at Sports Authority

• Checked in via Shopkick app • Provided with an offer to spend $100 and get $25 cash card

• To get offer, I showed my phone to cashier • Offer not available to all people in the store

I bought more than I planned in order to reach $100 qualifier.

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Search & Scan with Shopkick at CVS

•  Checked in via Shopkick •  Offers & “Scans” available

•  Find specific items, scan barcode to earn “bucks”

•  Bucks are redeemable for gift cards, donations, FB credits

•  Offers were ads

I struggled to find the specific items, and resulting points didn’t

motivate me to purchase.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 39

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Search & Scan with Shopkick in Grocery

•  Checked in via Shopkick •  “Scans” available

•  Find specific items, scan barcode to earn “bucks”

•  Bucks are redeemable for gift cards, donations, FB credits

I struggled to find the specific items, and picked up every item, but never

put one in my shopping cart.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 40

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Combining LBS and Social Networks at American Eagle

• Multiple ways to motivate people to shop in store • Foursquare – offers upon check-in • Shopkick – different offer upon check-in • Facebook – special deal upon check-in

My niece and I went shopping!

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 41

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Beware of the “Specials Nearby”

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 42

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Gowalla: Sharing Activities, Experiences, and More

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 43

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Fun & the Social Experience at Disneyland

•  Trips, spots, stamps, photos, highlights •  Trips designed for different park experience •  Over 100 virtual pins that visitors can

collect by checking into spots in the park

•  Enriched Disney brand experience •  Ideal for the true Disney guest/collector

Page 44: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 44

Yelp and the Power of the Crowd

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 45

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Yelp – The People Have Spoken

• Registered with Yelp • Checked in everywhere • Read Reviews & Quick Tips • Left reviews for my visits

I referred to & trusted reviews, and they influenced some

purchase decisions.

Page 46: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 46

The Facebook Entry

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Facebook Pays Off for a Local Bakery

• Checked into Facebook • Posted my thoughts on a local bakery that I ‘Like’ • Friends read & commented

The bakery got publicity and I received a thank you in FB with 2 free cupcakes!

Page 48: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 48

The Games People Play

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Gaming – Bringing Reality into the Virtual World

•  Within games, companies are invading the virtual worlds

•  Offering game rewards for specific gamer actions >  Stouffer’s >  McDonald’s >  Farmer’s Insurance >  Amex Centurion Statue >  Megamind Movie Promo

I placed the promo items on my farm and gladly

collected my FV rewards!

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Ad Sponsor Reaps a Good Harvest

•  Playing Farmville with 29M+ other “farmers”

•  Sponsored links offer FV$ rewards for taking action

It worked! I signed up for Netflix and collected 200 FV$

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 51

Gaming & Social Media: Buyer Beware!

•  Facebook: Personalized Sponsored Links

•  Farmville through Facebook: Sponsored Links

•  Clicked on both links looking to order flowers

•  Ads linked to same floral retailer >  Same holiday arrangements >  NOT the same price: $10 higher

through Farmville link

I ordered via the lower-priced link, but felt disappointed by the difference.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 52

QR Codes Bring More Content Mobile to Close More Sales More Often

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QR Codes at Best Buy Enhance Store Shopping

•  QR codes displayed on product shelves

•  Scanned codes and displayed useful product & purchasing information

•  Availability > Specifications > Customer Reviews

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 54

QR Codes in Catalog Add Multimedia

•  Sunday paper ad placed QR codes throughout flyer

•  Scan took me to video ad with limited item details >  No features, no reviews

Not enough information to convince me to spend

$85 on the toy.

Page 55: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 55

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Would You Like to Buy Some Cookies?

• Girl Scouts are now accepting credit card payments via Mophie Mobile for cookie sales

Initial tests show +175% sales, requires less cash on hand, teaches valuable lessons.

Page 56: Diary of a Social, Mobile Shopper Slide Deck

Confidential ©2011 RedPrairie Corporation. All rights reserved. 56

Lessons Learned…

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 57

Lessons Learned from Holiday 2010

1.  You simply have to be there. Everybody else is (or soon will be). And your customers expect it.

2.  Communicate the programs clearly. To customers and employees. Then build in back-up plans.

3.  Design programs that deliver value. Shoppers will engage, but you must reward them with content that helps them shop (and helps you close the sale).

4.  QR Codes can be valuable tools. They make it easy to deliver content to the phone.

5.  Monitor, monitor, monitor! Customers expect fast responses. Don’t disappoint them.

6.  Have tolerance for trial and error. Not everything will work the first time. Count on it.

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Confidential ©2011 RedPrairie Corporation. All rights reserved. 58

Warehouses Suppliers & 3PL Stores

Partners and Affiliates

Integrated Systems/Services

Call Center m-Commerce Pocket Kiosk

Social Shopping Tweet Desk

Store Kiosk Digital Signage

Clienteling Store Portal Brand_A.com

Brand_B.com B2B.com

CONNECTED EVERYWHERE ADAPTIVE ·∙ ·∙ All-Channel Commerce

Payment Processing Tax Address Validation Fraud Check WMS Merchandising

Page 59: Diary of a Social, Mobile Shopper Slide Deck

Q&A  

Your  GoToWebinar  A/endee  Viewer  is  made  of  2  parts:  1.  Viewer  Window   2.  Control  Panel  

Type  your  ques9on  here  

Page 60: Diary of a Social, Mobile Shopper Slide Deck

Thank You You can download the presentation deck by going to:

Dave Bruno Director, Strategic Messaging RedPrairie [email protected]

Patti Harney Product Strategist RedPrairie [email protected]

Amanda Batista Associate Editor Retail TouchPoints [email protected]

Moderator  

http://rtou.ch/Diary_Of_Shoppers