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Shopper Showrooming: Retailer Strategies in a Smartphone World by Arthur Policarpio Head of Mobext Asia-Pacific

Shopper Showrooming: Retailer Strategies in a Smartphone World

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In his Shopper Marketing Asia 2014 talk, our CEO Arthur Policarpio discuss showrooming and reverse showrooming. He also gives strategies on how retailers can respond by integrating mobile in the shopping journey.

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Page 1: Shopper Showrooming: Retailer Strategies in a Smartphone World

[email protected]

Shopper Showrooming: Retailer Strategies in a Smartphone World

by Arthur Policarpio Head of Mobext Asia-Pacific

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The world’s largest mobile marketing agency network

21 offices worldwide and growing

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3 [email protected]

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

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Amazon Push for Showrooming

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Smartphone Growth = Showrooming Explosion

Source: TNS Global 2013

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Who are the Showroomers?

Source: TNS Mobile Life 2013

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Why do they Engage in Showrooming?

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Retailers Fight Back

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But reverse showrooming, in fact, is a bigger trend

Source: Accenture 2013

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What is reverse showrooming?

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Source: Krillion, 2013

Majority use their smartphones for research prior to purchase

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What are consumers searching for on mobile?

Source: Google 2013

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Digital Has Transformed the Shopper Path to Purchase

Then

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Now

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How should retailers respond?

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STRATEGY #1: Invest in mobile + social to drive

word-of-mouth marketing

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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

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Time spent on mobile social > desktop

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Asia leads mobile-social use

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What are retailers doing on social media?

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Walmart on Facebook

Most followed retailer, with over 34 M fans!

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“My Local Walmart” Facebook program

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Nordstrom on Pinterest

Most followed brand, with 4.4 million followers

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in-store integration of social “voting”

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#SaksIn6 : Recreating in-store tutorials in 6 seconds

Saks Fifth Avenue on Vine

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STRATEGY #2: Integrate mobile across all media to

drive in-store visits and trial

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Bring catalogues to life: IKEA

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IKEA Augmented Reality catalogue

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Unlock exclusive content: Macy’s Backstage Pass

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Macy’s Backstage Pass

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Target: Get gift ideas anywhere with QR

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Get in-store deals with mobile coupons

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STRATEGY #3: Dominate Search

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Mobile search will surpass desktop

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Searches done on mobile lead to immediate conversion

Source: Google & Nielsen

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Create smarter search ads

Google’s Enhanced Campaigns

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STRATEGY #4: Invest in location-based marketing

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Google Map ads

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

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Mobile points customers to your direction

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

mobile ads

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2014: The Year of the Beacons?

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How do iBeacons work?

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STRATEGY #5: Invest in your own

mCommerce site + app

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

Walmart‘s mobile app users...

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In-store mode

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

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Out –of-Store mode

Check items in-store Check inventory + delivery

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

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Scan and Go

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STRATEGY #6: Mobilize your loyalty program

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SHOPKICK: Earn points just by walking in-store

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#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?

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CONCLUSION

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Integrate Mobile in the Shopper Journey

AWARENESS

TRIAL

CONSIDERATION

PURCHASE

LOYALTY

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Mr. Arthur Policarpio Managing Director

Mobext Asia-Pacific

[email protected] +639175694375

@art_policarpio (Twitter)