Mobile First Mentality

M O B I L E F I R S T M E N T A L I T Y | T U R N I N G B R O W S E R S I N T O B U Y E R S


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“ T H E B E S T E V E N T T O M E E T W I T H

T H E R I G H T P E E R S W I T H I N M Y

I N D U S T R Y . M O B I L E S H O P P I N G

D E L I V E R S S O L U T I O N S ,

I N N O V A T I O N A N D I D E A S T H A T

S I M P L Y C A N ’ T B E M I S S E D ”– P H I L I P W A R D ,

H E A D O F E X P E R I E N C E A N D D E V E L O P M E N T,

C A R P H O N E W A R E H O U S E



TABLE OF CONTENTS

INTRODUCTION

PART 1 | BUSINESS GROWTH & INVESTMENT

PART 2 | IT’S REALLY APPENING

PART 2 | MOBILE TACTICS

ABOUT WBR DIGITAL

ABOUT MOBILE SHOPPING



INTRODUCTION

PARTICIPATION BY JOB TITLE

GEOGRAPHICAL PARTICIPATION

Mobile is very much front of mind for retailers today. It’s an efficient way to shop, and, enabled by greatly enhanced computing power, is now also an increasingly successful sales channel.

Where phones and tablets were once used mostly for window shopping, today the percentage of transactions completed via mobile is steadily increasing. However, many retailers are still perfecting the mobile strategies required to turn browsers into buyers.

Will Mobile finally be first?

Leading up to the Mobile Shopping 2017 conference, we wanted to dig into how the mobile-first agenda is affecting growth and shaping wider business strategy.

To find out, we interviewed 100 leading executives including heads of E-Commerce, Heads of Mobile and Heads of Digital at some of the biggest retailers across Europe. You can see the results in the following pages.

tUK 80%tFrance 7%tSwitzerland 3% tGermany 3%tItaly 2%tBelgium 1%tDenmark 1%tIreland 1%tLuxembourg 1%tNetherlands 1%

Chief, Lead,Senior Product

Owner: Mobile, Apps

30%

Director/Head of:Mobile, M-Commerce,E-Commerce, Multi-

channel, Omni-channel, UX, UI

70%



P A R T 1

B U S I N E S S G R O W T H

& I N V E S T M E N T



Have you successfully achieved a mobile-first mentality in-house when working on digital designs?

Mobile is clearly critical for retailers, 41% believe they have implemented a mobile-first mentality with a further 49% ‘working on it’.

It’s hard to over-invest in inmobile, as usage, particularlyamong 16-24 year olds, isconsistently on the rise.

Retailers not only need to invest in tech that supports seamlessinteractions, but also need tochange their internal cultureto put mobile at the forefrontof everything they do. If not, they risk being left behind.

Yes

41%

No

10%

Stillworking

on it

49%



How much of your digital budget is spent on m-commerce optimisation?

More than half of retailers are spending a minimum of 21% of their digital budget on optimising m-commerce. Mobile is clearly critical to a successful omnichannel proposition. To succeed in today’s environment, brands need to ensure that they consider the mobile influence at every step of the way.

y0-5% 0%y6-10% 10%y11-20% 33%y21-30% 36%

y31-40% 20%y41-50% 1%y51%+ 0%



The top six mCommerce challengesSTRUGGLING TO TRACK CUSTOMER ONLINE BEHAVIOURCustomers now readily use multiple touch points on the path to purchase, so it can be hard for retailers to understand which device or channel is the best to communicate offers. This applies in particular to millennials, who are native multichannel shoppers.

LACK OF IN-HOUSE MOBILE TALENTBusinesses are striving to implement a mobile first mentality. But creating the most attractive and efficient mobile experiences means having the right people working behind the scenes. To achieve this, retailers are now looking for ways to make their companies more attractive places for graduates to start a career.

STRUGGLING TO DRIVE UP MOBILE CONVERSION RATES Until now smartphones and tablets have been primarily been used to research potential purchases, with the final transaction happening on the desktop. This is now starting to change. However, friction rates at the check out on mobile devices remain high, so retailers must make the payment as safe, secure and seamless as possible if they want to increase mobile conversion rates.

TECHNOLOGY AND SYSTEMSThe speed of mobile evolution far exceeds the rate at which retailers can update their existing systems. Companies with heavy legacy systems are looking for the best ways to integrate or to bolt on new technologies that can help drive mobile sales. However, this must be managed carefully, as it has the potential to cause a lot of friction and possibly even end up hindering the purchase.

COMPANY CULTURAL MIND-SETRetailers can find it hard to convince board members about the ROI of mobile. For one thing, it is often seen as an influencer on the path to purchase and rarely a converter. On top of that, few people have really nailed down an attribution model which can correctly weight the influence of mobile. Challenging these kinds of presuppositions amongst the upper echelons of management is fundamental to staying ahead of the pack, and winning new business amongst millennials.

PAYMENT OPTIONSPayments should be at the core of mCommerce strategy, but getting this crucial stage of the checkout journey right is easier said than done. One big challenge for retailers is taking account of cultural preferences when it comes to payment options – and while a German shopper may prefer an invoice, an Indian might like to pay in cash. Being sensitive and nimble enough to respond to these local preferences is the key to success.

01

02

03

04

05

06



Have you implemented responsive design on your mobile websites?

Do you plan to increase your investment in mobile over the coming year?

Clearly, the move to responsive design is a big priority or retailers, not least because Google prefers responsively designed websites. Getting this done is especially important for retailers who seek to aggressively drive sales on mobile.

80% of retailers are planning to increase their investment in mobile over the coming year. Mobile is continuing to rise in importance, and further investment is needed for many retailers if they are to most effectively capitalise on changing shopper habits.

Yes

47%No

8%In progress

45%

Yes

80%Unsure

20%



P A R T 2

I T ’ S R E A L L Y

A P P E N I N G



Do you have a mobile app?

If yes, how many mobile apps do you have?

Most major retailers have at least one app to support their business initiatives and to connect more effectively with their customers. However, an app is not necessarily a panacea – 25% of respondents don’t consider a mobile app to be the right fit for their business.

Y E S 7 5 %

2 5 %

7 %

5 5 %

2 8 %

1 1 %

1

2

3

4 +

N O



What type of app do you offer?

Just over half of the retailers we surveyed offer at least one hybrid app. Hybrid apps are built using both web technologies and native app code – which then match with the specific device in use. They are increasingly popular with retailers due to the wealth of data they can provide, data which can be used to improve and optimise marketing strategy and execution.

Progressive web a

pp

Native app

Hyb

rid a

pp 28%

20%52%



What percentage of your total digital sales does your mobile app and website contribute?

It’s not surprising that in-app purchases are increasing as a percentage of digital sales. A growing number of consumers prefer mobile apps to traditional websites.

0-10% 2%

10-30%

30-50%

50-70%

70%+

50%

36%

12%

0%



P A R T 3

M O B I L E T A C T I C S



What percentage of drop-offs are you currently experiencing at checkout on mobile?

Nearly half of retailers expect between 30% and 50% of their mobile baskets to ultimately be abandoned. This can be for a number of reasons, from a perceived lack of payment options, to the fact that a lot of consumers still don’t fully trust mobile sites. Payments via a mobile device need to be fast, convenient and seamless to inspire customers to complete a purchase, and keep coming back for more.

0-10% 2%

10-30%

30-50%

50-70%

70%+

37%

46%

15%

0%



84% now have, or are planning to add, an in-store mode to help customers on their mission around the store. In-store modes can help shoppers to do things like check the availability of stock, and guide shoppers around the store. This is great for retailers, as not only can they use this to draw attention to promotions, they can also target them more effectively with personalised recommendations.

Yes

47%

No

16%

We will be adding this function

37%

Do you have an in-store mode on your mobile offering to help your customers on their mission around your store?



How effective have relevant and personalised notifications been in bringing your shoppers back to your store?

Ultimately the final judge of whether notifications are relevant and personalised is the customer. A customer-centric approach to relevant and personalised messaging must be in-line with the customers’ shopping goals.

tVery effective 11%tEffective 49%tHas had little impact 32%tNot effective 3%tWe’ve not tried it 5%



How many payment options do you currently have for your shoppers on mobile?

Over half of retailers are providing more than four payment options. Retailers are realising that in order to serve the needs of their global customer base, they need to offer culturally recognisable payment options to shoppers locally.

1

2%

2

14%

3

29%

4+

55%



Are your store associates using mobile devices in-store to help make shopper recommendations?

Today’s shoppers are more informed than ever, they’ve probably researched their purchase before even walking into your store, and may even know more about that product than your staff do. Giving your store staff access to technology helps them get ahead of the game, and puts them in a strong position to advise, and ultimately to close the sale.

90% of retailers either have already, or are in the process of letting store associates use mobile devices to assist their customers more effectively.

Yes

64%

No

10%

We arein the processof introducing

mobile in-store

26%



Are you using location-based services to send offers to customers who are nearby the store?

Location-based services can help in-store retailers drive footfall by sending relevant offers to customers on the go. This enables them to tap into sales from opportunistic shoppers who are on-the-move or nearby.

89% are either already using location-based services, or are looking to introduce them.

Yes

54%

No

11%

We are looking at introducing location based service

35%



Are you currently using third-party platforms to advertise your products and offers on mobile?

Using third-party platforms can help retailers to reach a wider customer base and broaden their demographic reach. It can also help to reengage existing customers. This tactic is especially useful for reaching millennials, who are always on the lookout for a good digital offer.

yYes 68%yNo 1%yWe are starting to explore 31%

using third party platforms



About Mobile Shopping

Key Agenda Highlights

Mobile sales are forecasted to increase by 85% in Europe whilst desktop sales dither comparatively at just 11%. Where are you investing to capitalise on this new mobile first landscape?

Retail, travel and finance digital leaders are aware that to attract and retain customers they need to define and implement innovative mobile strategies to optimise and personalise the customer journey.

Mobile Shopping - Europe’s No.1 forum for defining the roadmap to mCommerce success within your multichannel world - offers digital leaders a collaborative platform to make customer centric mobile strategy and technology decisions.

The Rise Of Mobile Mobile success story: How we leveraged mobile as part of an omni-channel approach and increased our sales by over 100% across all touch points

Eliminating Internal Roadblocks Moving towards a mobile first mentality: What is the best approach to achieving an internal mind-set shift from designing for desktop towards priori sing mobile?

Adopting Customer Centricity Taking an emotional approach to customer engagement: How to tap into the psyche of your customers to drive mobile sales and increase brand loyalty

Mastering Mobile Design Merging digital with physical experiences: How to leverage mobile to seamlessly bring the best of both online and offline worlds into your store

Driving Engagement Moving away from the one size fits all approach: How can you provide your shoppers with personalised online experiences to successfully up-sell and cross-sell relevant products and services

Making The Right Investments Keeping up-to-date with future mobile innovations: Which types of new personal mobile devices are expected to revolutionise mobile shopping experiences and should be considered in your current investment plans?

Being Discovered On Mobile Establishing a winning digital road-map for driving traffic: How to unlock the full potential of your m- commerce platform as part of your omni-channel approach to ensure you are being found by mobile

browsers

Proving Mobile ROI Cross channel attribution: How to evaluate direct and indirect ROI from mobile to further build the business case for more related investments from the board

Easing The Path To Purchase Moving towards a one-click checkout process: How to design a mobile check out UX that drastically reduces cart abandonment

Exceeding Customer Expectations Enabling human interaction on mobile: How can you use chat bots to help exceed mobile shoppers expectations across the full buying process?

Rewarding Loyal Shoppers Rewarding your customers on the go: How to design an appealing mobile loyalty scheme that keeps your mobile shoppers coming back for more

With a focus on end to end mobile functionalities, you will walkaway with all the insights you need to build a world class M-Commerce offering:



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Data & Analytics

Mobile First Mentality