Phuc.Truong@mobext.com

Shopper Showrooming: Retailer Strategies in a Smartphone World

by Arthur Policarpio Head of Mobext Asia-Pacific

The world’s largest mobile marketing agency network

21 offices worldwide and growing

3 Phuc.Truong@mobext.com

Full Service Agency

DEVELOPMENT SITE & APP MEDIA PLANNING

& BUYING EMERGING TECHNOLOGIES

SOCIALLOCATION DISPLAY/RICH MEDIA

VIDEO/GAMES

SEARCH

SMS/IMAGE RECOGNITION

AUGMENTEDREALITY

QR/2D/BAR CODES

MULTIPLATFORMAPPS

Amazon Push for Showrooming

Smartphone Growth = Showrooming Explosion

Source: TNS Global 2013

Who are the Showroomers?

Source: TNS Mobile Life 2013

Why do they Engage in Showrooming?

Retailers Fight Back

But reverse showrooming, in fact, is a bigger trend

Source: Accenture 2013

What is reverse showrooming?

Source: Krillion, 2013

Majority use their smartphones for research prior to purchase

What are consumers searching for on mobile?

Source: Google 2013

Digital Has Transformed the Shopper Path to Purchase

Then

Now

How should retailers respond?

STRATEGY #1: Invest in mobile + social to drive

word-of-mouth marketing

SOCIAL MEDIA = MOBILE

945 M active monthly mobile users (out of 1.23 bn total monthly users) 53% of total revenues coming from mobile

*(Facebook 2013 Q4 report)

75% monthly active users coming from mobile 65% of revenues come from mobile

*(Twitter 2013 Q43report)

¾ of all usage comes from mobile

Time spent on mobile social > desktop

Asia leads mobile-social use

What are retailers doing on social media?

Walmart on Facebook

Most followed retailer, with over 34 M fans!

“My Local Walmart” Facebook program

Nordstrom on Pinterest

Most followed brand, with 4.4 million followers

in-store integration of social “voting”

#SaksIn6 : Recreating in-store tutorials in 6 seconds

Saks Fifth Avenue on Vine

STRATEGY #2: Integrate mobile across all media to

drive in-store visits and trial

Bring catalogues to life: IKEA

IKEA Augmented Reality catalogue

Unlock exclusive content: Macy’s Backstage Pass

Macy’s Backstage Pass

Target: Get gift ideas anywhere with QR

Get in-store deals with mobile coupons

STRATEGY #3: Dominate Search

Mobile search will surpass desktop

Searches done on mobile lead to immediate conversion

Source: Google & Nielsen

Create smarter search ads

Google’s Enhanced Campaigns

STRATEGY #4: Invest in location-based marketing

Google Map ads

• Reach customers searching for businesses like yours on Google Maps • Click-to-call and tap for directions

Mobile points customers to your direction

McDonald’s Extended Hours: Driving business to late-night stores through

mobile ads

2014: The Year of the Beacons?

How do iBeacons work?

STRATEGY #5: Invest in your own

mCommerce site + app

• Make 4 more trips each month than non-mobile user • Spend 40% more than the average shopper

Walmart‘s mobile app users...

In-store mode

• See what’s new & on sale • Create shopping lists • Scan and Go

Out –of-Store mode

Check items in-store Check inventory + delivery

12% of online sales from the app happen during the app’s in-store mode

Scan and Go

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STRATEGY #6: Mobilize your loyalty program

SHOPKICK: Earn points just by walking in-store

#1 Shopping app

$800 M Sales delivered to partners

70 million Product scans

7 million gift cards redeemed

*More frequent and prolonged usage than physical retailers’ own apps, including Starbucks, Walmart, Walgreens, and Safeway

How big is Shopkick?

CONCLUSION

Integrate Mobile in the Shopper Journey

AWARENESS

TRIAL

CONSIDERATION

PURCHASE

LOYALTY

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Mr. Arthur Policarpio Managing Director

Mobext Asia-Pacific

arthur.policarpio@mobext.com +639175694375

@art_policarpio (Twitter)