Czech.soto_fall2012_mobilecommerce

CZECH - SOTO / ANALYZING TRENDS - TIM STOCK - FALL 2012 / MOBILE COMMERCE

WHAT IS THE FUTURE OF MOBILE SHOPPINGFOR MILLENNIALSIN THE US?


HYPOTHESIS

previously

> sought and trusted opinions from experts (one “specialized” individual)

> shopped @ one particular store for everything

> different perception on value


HYPOTHESIS

previously now

> sought and trusted opinions from experts (one “specialized” individual)

> shopped @ one particular store for everything

> different perception on value

seek information < sourced from reviews posted by individuals

with like interests

do not shop @ one < store; constantly on the

hunt for a better value (beyond brick & mortar

stores)

enter a physical < storefront as a means

of research


KEY FORCES

58% of mobile shoppers are age 18-34

31% research a purchase on their device before buying it in-store

Over 100 million smartphones in 2012

200 million by 2016

INFLUENCE MORE BANG

FOR YOUR BUCK

$$$

federal reserve mobile device report

CODE: INVOLVEMENT


KEY FORCES

One in five “mobile price matchers” ultimately made their most recent purchase from an online store, rather than a physical location

(cell phones as a tool for online price matching)

only 54.3% of young adults aged 18-24 have a job(It’s the lowest rate since the government started keeping records in 1948)

ECONOMYCODE: CONVENIENCE

31% want to track their finances on a daily basis


KEY FORCESINTERACTION

33% would like to receive promotions and offers based on their current location

consumers looking for better experiences for their money

CODE: FLEXIBILITY

bespoke shopping; more stores tending to needs of the consumer

48% of consumers conceded they use their mobile devices to look up product ratings or to find promotions


TRENDSSHOWROOMING

> Millennials use the store to try on merchandise, experience technology, and get hands-on feel of what it is they’re buying.

> However, the actual purchase is often made online, which causes brick and mortar stores to miss out on crucial sales.

> The hassle of downloading one app for every store is tedious and represents an additional barrier to entry.


TRENDSSHOWROOMING

swarm

radialpoint

“Swarm, a new Web app, will help brick-and-mortar retailers combat online competition by offering users good deals in real time.” - Digital Trends September 2012

This app helps stores to offer in-store technical support to shoppers, especially in the busy holiday season. Business can sign up and sales assistants can use an on-site diagnosis to assess and resolve customer problems. It can decrease the number of product returns and exchanges.


TRENDSCROWDSOURCING

> Users can filter for nearby and friend advice, giving them a balanced opinions from their trusted peers and input from individuals with like-interests.

> Besides being based on social recommendations, they use their own algorithms to organize information from the user’s shopping behaviors.

> It also revolves around being able to access information at any given moment.


TRENDSCROWDSOURCING

nara

mouthee

“Nara ... is currently focusing on restaurant recommendations in a limited number of U.S. cities. In the long run, though, as Nara founder and CEO Thomas Copeman told me last week, the company hopes that its algorithms will be able to analyze all of the web and filter information based on the user’s personal interests and preferences.” - TechCrunch June 2012

“Chicago-based Mouthee is today officially debuting its website and iOS application, which allow users to quickly share reviews of local restaurants and hotels, as well as movies, music and books.” - TechCrunch October 2012


TRENDSGAMIFICATION

> All about playing the field, trying to get the best deal for your money and only allotted a certain amount of time before it ends. This is the game of mobile shopping tied to in-store shopping.

> Mobile apps adopting steroidal flash and bidding sales.

> Game design techniques in non-game contexts.

> Geo-rewards program using NFC (near field communication)


TRENDSGAMIFICATION

saga

gospotcheck

decide

“Saga keeps track of where you are, how you got there and who you’re with -- all without you having to check in. The app uses senors already embedded in your phone to record your whereabouts -- and suggests places you should visit based on your previous destinations.” - Mashable August 2012

“(Decide) tells you when a product was released, gives pricing history and predicts whether or not prices are likely to drop again. Based on that info, the app tells you if it’s a good time to buy that product or not. Decide.com, the website on which the apps are based, recently added a price-guarantee feature, too.” - CIO Blog November 2012

GoSpotCheck, which allows just about anyone -- from field merchandisers to someday a company’s non-sales employees or a brand’s shoppers and Facebook fans -- monitor what happens in stores. - AdAge November 2012


TRENDSINSTANT GRATIFICATION

> Deliver goods bought online from retailers who have brick & mortar stores within 10 miles of the delivery address that use messengers at existing courier services.

> The combination of local and mobile offers great advantages to businesses.

> Check in at store & then provide customers with coupons for immediate use.

> Instantly gratifying delivery of goods and/or services.


TRENDSINSTANT GRATIFICATION

shutl

walgreens

“Shutl, the London-based startup that promises to enable the delivery of online purchases within minutes of sale, has secured $3.2 million in funding that it plans to put toward its upcoming debut in North America.” - TechCrunch October 2012

“Time is of the essence in mobile commerce. Mobile shoppers are not kicking back browsing the web—typically they’re looking for something, and want it fast. Walgreens Co. is wasting no time in getting to a subset of its shoppers. Consumers who check in at a Walgreens store via the foursquare mobile social network instantly receive a coupon for a special offer. What’s more, the coupon can be scanned directly from the smartphone, mobile functionality that puts Walgreens far ahead of the pack.” - Internet Retailer March 2012


SUBCULTUREHYPERLOCAL-NESS

“Millennials feel hyper-connected to both their local neighborhoods as well as to the world at large.”

Millennials have a local-awareness and interest in the well-being of their immediate surroundings so they value small and local businesses.

- Kantar Media SRDS

being able to have your product(s) within a short given time. Balance of real, authentic,

meaningful experiences & the feeling of empowerment.


SUBCULTUREHYPERLOCAL-NESS

square register

ebay now

“... Square will continue to eye partnerships with large brick-and-mortar stores and brands to power mobile payments and loyalty. But there’s a point to be made that the major opportunity may not be with the large brands like Starbucks but with the multitude of small to medium sized chains across the U.S. and beyond. These are regional stores that have two or more locations, but aren’t as big as the larger national chains...” - TechCrunch December 2012

“the eBay Now same-day delivery service could be a game changer for retail.” - Digital Trends November 2012


INSIGHTS & OPPORTUNITIES

Engage Millennials online and off. Allow them to co-create and have two-way dialogue. Entertain them with great content. Provide value as they do expect something in return from brands. They want quality experiences, products and direct engagement from brands. - PSFK


INSIGHTS & OPPORTUNITIES

macy’s in-store gps

ribbon

aurasma

“Ribbon is launching today with a simple concept: Make digital payments easy no matter the platform. To do so, the company has developed a one-page checkout system that lets anyone sell whether on Facebook, Twitter, on the web, email, and in the future, Pinterest, YouTube, and elsewhere.” - TechCrunch November 2012

“Macy’s has added a new feature to its iPhone app that provides indoor turn-by-turn directions for its massive flagship location in New York City’s Herald Square, courtesy of Meridian, the software startup behind an indoor GPS platform.” - Mashable November 2012

“The Aurasma app... allows a user to point his or her smartphone or tablet at an enabled page and obtain a large degree of additional information.” - QR Code Press December 2012


CLIENT PROFILEVISA

“Visa Inc. (Visa) is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries and territories to fast, secure and reliable electronic payments.” - BW

shopkick 2011 square 2011 V.me 2012

rewards-based app

invested $$ into technology

shortcut to make quick online payments and provide other billing and shipping info securely


CLIENT INSIGHTFUTURE OF VISA cashless

societymobile

payments are more

streamlined, flawless, secure,

& reliable

catering to the ubiquity of technology

& crowdsourcing of informationapps are

more minimal & simplistic

more humanistic UX in technology for

both mobile devices and brick & mortar

storesmore mobile

payments x

integration of hyperlocal-ness


CLIENT INSIGHTFUTURE OF VISA

For many years Visa has been a reliable and leading global payments company. It’s time for them to seek service design consultancy

so that they could explore alternative ways of elevating the experiences that the

consumers of today and tomorrow, want and need.

Czech.soto_fall2012_mobilecommerce

Documents

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mouthee czech soto

findpromotions czech

mobile price matchers