F E B R U A R Y 2 3, 2 0 1 2

Cashing In on Mobile Shopping

What Marketers Need to Know About Coupons, Commerce and Payment

Presented by: Noah Elkin Principal Analyst #eMwebinar @noahelkin

Sponsored by:

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Agenda Keeping pace with consumers Mobile shopping vs. buying The shopping revolution will be mobilized Mobile coupons: Paving the way to the last mile The missing link: Mobile payments Q & A
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Keeping Pace with Consumers

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Mobile is transforming every stage of the purchase funnel

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Smart device adoption is driving the transformation

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Growing demand for smartphones and tablets is a global phenomenon

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Mobile and web are becoming more synonymous

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as internet access from mobile devices expands

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High daily web access among smartphone users is helping push mobile shopping into the mainstream

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When it comes to shopping, tablets are more of a desktop substitute than a smartphone complement
Bottom line: Consumers view tablets as
the better tool for researching product and pricing information prior to a store visit. Retailers report similar shopping behavior for tablets and PCs.

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Browsers beat apps when it comes to mobile shopping via smartphones

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Retailers are working to meet the m-commerce challenge

Most major retailers have some mobile strategy.
- 91% of those surveyed by Shop.org and Forrester in May 2011 said they had a mobile strategy either in place or in development, up from 74% in 2010.

But development exists along a continuum.

- 29% had a mature strategy in the process of being refined. - 28% were implementing or just starting to work on a mobile strategy. - 34% said they were in the early stages of developing a strategy.

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M-commerce development among retailers has room for growth

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Many retailers mobile initiatives remain in the planning stage

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Retailers mobile presence varies widely by category

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as do retailers m-commerce capabilities

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Mobile Shopping vs. Buying

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Mobile is more about shopping than buying for now

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Mobile buying will steadily increase, but purchase rates will still lag the desktop by a large margin

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Mobile continues to develop as a vital retail sales channel

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In-store shopping via smartphone is a relevant trend, but dont forget a lot of the actual buying takes place at home

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Regardless of where mobile buying occurs, m-commerce dollars will start to add up

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Lowinvolvement, low-cost items predominate among mobile buyers

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Gilt Groupe rides the flash sale wave using a device-agnostic strategy

A lot of companies are trying to figure out whether mobile revenue is incremental or if it cannibalizes their desktop revenue. I find that it doesnt matter in the end. Our customers are demanding mobile options and theyre showing it with the revenue numbers. They want to shop wherever they are. They have a smartphone in their pocket all the time, so we need to be there. Otherwise, theyre going to go somewhere else. Yon Feldman Vice President, Mobile & Global Engineering Gilt Groupe

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The Shopping Revolution Will Be Mobilized

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Mobile changes the path to purchase from a set of sequential activities

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to activities performed concurrently, with a premium on context and location

OR

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Gathering information takes precedence for mobile shoppers

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Use information to help drive in-market consumers to stores

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Focus on location to the extent that it enables commerce, not status

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Remember that in-store shoppers have heightened information needs

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making the data retailers provide higher value and more actionable

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Be prepared for increased competition from betterinformed in-store shoppers and more aggressive web retailers

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Empowering sales associates is one way to meet in-store shopping challenges

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Mobile Coupons: Paving the Way to the Last Mile

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Small coupon discounts add up to big money

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Mobile coupons usage is modest but growing rapidly, driven by smartphone owners

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particularly those smartphone owners shopping in-store

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Think about your target audience: Smart device users prefer to receive coupons via email

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But SMS is the preferred way to receive coupons among mobile users overall

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Dont underestimate the engagement potential and speed to market of SMS

Text messaging is about building a push relationship with the

customer where you can send them back-and-forth messaging over and over again. David Wachs, President, Cellit

The advantage with mobile is speed.

We can send out a text alert with a mobile coupon and be in-market very, very quickly. Chris Duncan, Vice President of Marketing, OfficeMax

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QR codes can also be an effective trigger for mobile coupons

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Deploying QR codes can take advantage of customers location and context

We are using QR codes on shelf tags to alert customers about available coupon offers. Customers scan the code with their web-enabled smartphones and download digital offers right to their Price Plus club card. QR technology allows us to engage our customers not only in the mobile space but at the store level as well. Cheryl Williams Vice President of Marketing Wakefern Food Corp./ShopRite

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Consider including coupons in local search listings to better reach in-store mobile shoppers

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Tap into the power of location, but tread carefully around privacy and security concerns

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The Missing Link: Mobile Payments

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Forecasts agree on mobile payments growth but not on how much money is on the table
$670B (2015)
$556B (2016)
$246B (2011)
$86.1B (2011)

Note: figures above are worldwide

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Smartphone and tablet users have a good comfort level with mobile payments

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Frequent usage of mobile payments is common among those already sold on the idea

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But for most consumers, the value proposition of mobile wallet services is not yet clear

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Those most interested in mobile wallet technology fit the typical early adopter profile: young, male and upperincome

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Privacy is a major concern all over the world when it comes to mobile payments

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Adoption ultimately hinges on benefits, convenience and user experience

Our customers told us they want a faster and easier way to

pay, and Starbucks mobile payment apps are the fastest way to pay. We deployed this program independent of carriers, handset manufacturers or payment companies so as many customers as possible can download and use the app. Adam Brotman, VP and GM, Digital Ventures, Starbucks The best way to get anyone to change their behavior is by making them feel good. Is paying with your cell phone ever going to make you feel like This coffee is better because of the way I paid for it? Probably not. We see the mobile payment opportunity as how do we enable people to find their friends, see what theyre doing, share purchasesand things of that nature. Ben Milne, CEO, Dwolla

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Be prepared: The last mile is always the longest, hardestand most expensive

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Kony Worldwide

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7380 W. Sand Lake Rd Suite. 390 Orlando, FL 32819 Tel: 1.321.293-5669 (KONY) Toll free: 1.800.323.9630 1.650.645.2201 Copyright 2011Fax:Solutions, Inc. CONFIDENTIAL Kony

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Kony Mobile Retail

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Q&A Session
Cashing In on Mobile Shopping

Learn more about mobile marketing with an eMarketer corporate subscription.

Recent Mobile Marketing Reports: Mobile Coupons: Offers and Deals Light Up the Last Mile Mobile Barcodes: Trends and Best Practices for Marketers Mobile Travel Takes Off: Emerging Trends and Best Practices for Marketers Smart and Getting Smarter: Key Mobile Device Trends for Marketers Beyond the Check-In: Best Practices for Location-Based Marketing Tablets: New Screens for Marketers Mobile Advertising and Marketing: Past the Tipping Point

Noah Elkin
You will receive an email tomorrow with a link to view the deck and webinar recording. Sponsored by:

Kony

To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com

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