Q1 2015 Resource/Ammirati Mobile Intelligence Report

Tracking Mobile Features and Functionality of America’s Leading Retailers in Q1 2015

§  Overview of the current industry development and penetration of mobile sales and marketing

§  Up-to-date competitive actions in tactical and specific

mobile executions

§  Inspirations for mobile marketing strategy and tactics

Delivered May 2015

MOBILE INTELLIGENCE REPORT

CATCHING UP WITH CONSUMERS’ EVOLVING BEHAVIORS

Mobile statistics such as traffic and revenue continue to climb for retailers, and while those numbers should now be cause for concern with retailers who haven’t prepared themselves for the mobile wave (46% of Fortune 500 websites are still not mobile-friendly1), consider these stats around mobile usage.

The 10 biggest mobile messaging apps have more than 3 billion users. WhatApp handled more than 7 trillion messages last year, about 1,000 per person on Earth.2 US adults spend close to 3 hours per day on mobile devices, surpassing television in terms of engagement time.3

BREAK AWAY FROM THE DESKTOP MENTALITY

Mobile is dominating certain aspects of consumers’ lives, yet retail experiences continue to lag consumer expectations. Getting to a great mobile experience can be a challenge for a variety of reasons, including the reliance on desktop thinking that permeates most organizations because of entrenched skill sets of staff and historical performance numbers used to set budgets.

CONNECTING MOBILE AND EVERYTHING ELSE

In an omni-channel world, those two issues continue to hold most retailers back from creating breakthrough mobile experiences that resonate with audiences and drive topline sales across all channels. Leaders will begin to look at the context of the journey and partner with the appropriate companies to meet the rising mobile opportunity.

MOBILE USAGE CONTINUES TO RISE

2

1: eMarketer 2: The Economist 3: Flurry

WHAT’S IN THIS REPORT

3

Summary of Quarterly Audit Results Highlights from quarterly audit of NRF Top 50 retailers and select other leading retailers

Best-in-Class Retailers Deep dives on best-in-class mobile experiences among brands and retailers

In-Focus: Mobile Messaging Exploring in-market executions of mobile focused messaging and communication

Selected Retailer Audit Results Detailed results by brand and retailer for Q1 2015 mobile monitoring

4

8

12

23

p a g e

p a g e

p a g e

p a g e

AUDIT HIGHLIGHTS Summary information on key features and functionality from mobile experience audit of 114 retailers.

Learning From Other Retailers

The following mobile audit summary and in-depth assessment

found in the Appendix is a quantitative look at features and functionality in use by the NRF Top 50 retailers and select other companies. This portion of the audit does not attempt to provide an assessment of quality or strategic alignment with the retailer’s goals or customers. Instead this section will provide a snapshot of features that retailers employ within their mobile ecosystem.

Categories for the mobile audit

Apps: This section tracks attributes found in the retailer’s core smartphone app. Typically, this is a commerce-enabled mobile application. Sample functionality tracked includes availability of apps on smartphone platforms, use of push notifications and integration of in-store modes.

Websites: This section tracks attributes found in the retailer’s mobile website (m.com or responsive) found on tablet and smartphone. Sample functionality tracked includes integrating omni-channel cart, availability of wish list functionality and ability to view loyalty.

Mobile Communication: This section tracks email and SMS messaging from retailers to customers focusing on unique features found, including use of MMS and application of personalization.

SUMMARY AUDIT HIGHLIGHTS

5

Retailers Tracked

Free People Gap Giant Eagle

Gilt Good Neighbor

H&M H-E-B Henri Bendel

Hobby Lobby Hollister

The Home Depot IKEA J.Crew

JCPenney Jo-Ann Stores

Justice Kate Spade Kmart

Kohl’s Kroger Lane Bryant

La Senza LOFT

Lord & Taylor Lowe’s Lululemon

Macy’s Marshalls

McDonald’s Meijer Menards

Michaels ModCloth

Neiman Marcus New York & Co. Nordstrom

Office Depot Olive Garden

Patagonia PetSmart PINK

Publix REI

Rite Aid Ross Stores Safeway

Saks Fifth Avenue Sears

Sephora Sherwin-Williams ShopRite

Staples Starbucks

Stop & Shop Subway Supervalu (Cub)

Target The Body Shop The Limited

T.J. Maxx Toys“R”Us

Trader Joe’s True Value Ulta

Urban Outfitters Victoria’s Secret

Walgreens Walmart Wendy’s

White House | Black Market Whole Foods Market

Williams-Sonoma Yum! KFC Yum! Pizza Hut

Yum! Taco Bell Zappos

7-Eleven AAF Exchange Abercrombie & Fitch

Ace Hardware Albertsons

Aldi Amazon Ann Taylor

Anthropologie Apple Stores

Babies“R”Us Banana Republic Barnes & Noble

Bath & Body Works Bed Bath & Beyond

Belk Best Buy Bi-Lo

Big Lots BJ’s Wholesale Bloomingdale’s

Burberry Burger King

Chick-Fil-A Costco Crate & Barrel

CVS Dick’s Sporting Goods

Dillard’s Dollar General DSW

Dunkin’ Donuts Express

Fab Family Dollar Stores Food Lion

Foot Locker Forever21

BOLD designates NRF Top 50 Retailer

KEY FINDINGS FROM MOBILE AUDIT

6

Of the 114 retailers tracked, 86 have an iOS app and 71 have an Android app available for download; both were up two over the previous quarter.

iPhone App Android

Phone App

86

114

71

114

Search for Stores Using Location in App

79

81

Store Finder in App

80

81

Of the 81 retailers with an app and physical stores, 79 facilitate search through location; 80 of 81 have a store finder feature available.

2

86

Only 2 of 86 retailers with an app have Search by Voice integrated into their apps

Search by Voice in App

15 of 84 retailers with an app on either platform had a version of a mobile wallet available to aid shopping.

15

84

Mobile Wallet in App

KEY FINDINGS FROM MOBILE AUDIT

7

Nearly all retailers have a mobile optimized site, but only 19 of the 114 use responsive or adaptive techniques.

Mobile Optimized Website

Responsive Website

108

114

19

114

Write Ratings and Reviews in App

24

47

Write Ratings and Reviews in Mobile Web

38

66

Just over half of retailers with ratings and reviews allow users to write ratings and reviews on mobile touchpoints.

93%

Of all push notifications sent by retailers in Q1 2015, 93% were tied to a sale, promotion or offer.

Promotion Based Push Content

Just under half of retailers tracked have implemented an SMS program.

51

114

Retailers with an SMS Program

DEEP DIVES Leaders in mobile selected based on high-quality delivery of mobile experiences across web, app and mobile communications.

BRIGHT SPOTS

•  Highly visual experience. Product images are prioritized over text. Fast and streamlined app experience

•  Inspirational and full-screen product images

•  Well designed and fast mobile website

Breaking new ground on app design

ZARA

9

MISSED OPPORTUNITIES

•  Emails not fully optimized for mobile

•  Could leverage stores and omni-channel in a more effective manner

New Approaches to Layout

Gone is the classic hamburger icon; Zara places navigation under header images on the home page of the app with an omni-present search bar. On product pages, users scroll through product images with Info, Add (to cart) and Price as consistent callouts.

iOS App Android App iPad App Android Tablet App

Mobile Email

Mobile Optimized Site

SMS/ MMS

Checkout and Omni-Channel Features

Products added to Shopping Bag appear as a visual list with product image, size, description and price for cleaner, easier navigation. The app does include a barcode scanner or manual entry of barcodes for use at home or in-store.

PHONE APP RANKINGS

377

202 i0S App Store Ranking

(Lifestyle Category)

Average App Rating

Google Play Ranking


BRIGHT SPOTS

•  Subtle navigation augments the shopping experience without being obtrusive

•  Emails upgraded to include scannable coupon codes for in-store use

•  Good starter iPad app to engage customers with longer form content

Subtle navigation elements improve ease of use

BLOOMINGDALES

10


•  User experience could be more clear in guiding users

•  Could better leverage screen real estate by using larger product images

App Navigation and Omni-Channel Use

The subtle navigation in the app helps reduce the clutter on the smartphone screen and improve usability. The ability to save offers for future in-store use enables an omni-channel experience.


Mobile Email


SMS/ MMS

Menu and Filters

Mobile web provides a range of filters to help users narrow down options, including promotions and purchase preferences.

PHONE APP RANKINGS

394



Average App Rating

Google Play Ranking

(Shopping Category)

Shoppable iPad Catalog

The iPad catalog provides an engaging and shoppable experience for customers to browse through large images and read extended content while they shop.

BRIGHT SPOTS

•  Personalized product configurator

•  Step-by-step guidance

•  In-app utility tools

•  Visually appealing interface with large, vivid imagery

Personalized product selection and utility

SCOTTS

11


•  Emails not fully optimized for mobile viewing

•  Omni-channel and commerce could be more powerful

•  Website and content approach outside of app is confusing and hard to navigate

Personalized Utility

Users can create a personalized lawn care plan based on location, lot size and real-time weather updates. The app also features a weed identifier feature that allows users to submit photos via email for product recommendations.


Mobile Email


SMS/ MMS

Content Tailored to Users

Personalized product recommendations include detailed application instructions.

PHONE APP RANKINGS

59



Average App Rating

Google Play Ranking


IN-FOCUS: MOBILE MESSAGING

A Shift In Communication Channels Toward Mobile

Mobile devices have dramatically impacted the way marketers reach and influence potential shoppers. Email, a consistently high revenue driver for retailers, still outperforms other traffic drivers to sites (see top right). And email open rates and clicks are already mobile dominated (see graph on page 20). The shift to mobile as an influential channel is here, but beyond email, other mobile communications are making an impact including SMS/MMS and Push Notifications. As retailers become more mature with their mobile experiences, and mobile operating systems continue to innovate and improve the customer

experience, mobile will further distinguish itself as a critical channel for direct communication with and response from customers.

Work To Be Done

While the shift may be here, the reality is that many of these experiences continue to struggle. Push and SMS usage statistics are limited, and as consumers will attest, interruptions on mobile without relevance to the consumer are annoying. Brands and retailers need to push ahead with better experiences, vendors and solutions to generate more impactful results from mobile communications.

MOBILE COMMUNICATION

13 Image via Flickr by Jason A. Howie

Source: ExactTarget

Source Average Order Value

Email $172.99

Direct Navigation $123.84

Search $114.84

Social $100.97

Unknown $156.44

Source: Monetate

52% of users enable push notifications on their phone

54% of consumers have opted in to receive text messages from a brand

Source: Localytics

EMAIL IS NOW A MOBILE TOUCHPOINT

14

Source: Experian

Mobile Devices Represent Over Half of Email Opens and Clicks Yet our research shows that most retailers are not truly mobile smart; instead, they still show desktop tendencies on mobile touchpoints.

Consider how customers discover messages and actions desired from engagement

FRAMEWORK FOR MOBILE COMMUNICATIONS

15

When thinking about high quality mobile communications examples it is important to understand that a successful execution isn’t just about the content of the message. It’s also about paying attention to the customer’s experience prior to receiving the first message and how the customer learns the value of messaging to opt in. Also important: Where the messaging is driving to and how it supports the customer journey. The framework below provides highlights on how to think about the entire messaging experience. And the following pages showcase retailers and brands that deliver on one or more of these steps.

DIRECT

Acquire subscribers and build reach with relevant audiences

§  Promote the program where relevant in order to acquire

desired audience

§  Incentivize and facilitate easy signup

§  Set expectations for cadence and content

§  Activate multiple data sources and

deliver greater message relevance

Deliver on the promise and keep subscribers engaged

§  Craft digestible content specific to the touchpoint

§  Deliver utility that meets expectations: savings, convenience, reminders, guidance, etc.

§  Message using appropriate timing, frequency, context

§  Segment audiences and deliver appropriate messages to each segment

Direct subscribers to take business driving actions

§  Include calls to action that link to desired and achievable

actions

§  Direct subscribers to touchpoints relevant to immediate next steps

§  Think beyond on-device conversion

DELIVER REACH

Best-in-class example of deep linking emails to mobile app for easier app opens

MYHABIT (AMAZON) EMAIL

16

If the app is loaded on a customer’s phone, mobile emails launch a webpage prompt to let customers select where email links will open.

If app is selected, all future emails deep link to a category or shelf page within the MyHabit mobile app.

In this example, the customer could select “WOMEN” in the email and land on that page within the mobile app.

A B C

A B

C

REACH DELIVER DIRECT

✓

Seamless coupon redemption tools extend SMS beyond a simple communications push

DOLLAR GENERAL SMS

Coupon or offer content in SMS links to Dollar General coupon storage center on mobile web for later use.

Coupon center holds all offers available for use on mobile, desktop or in-store.

Customer redeems coupons in-store by simply typing a mobile phone number into a keypad at POS.

A B C

17

A

B

C


✓ ✓

Most comprehensive push strategy to reach audiences shopping across channels

SEPHORA PUSH NOTIFICATIONS

Messaging content, while infrequent, directs the user to useful content on the app and web. Content for Sephora is not overly deal- or offer-driven.

Push messages lead to content experiences on mobile app to learn more about application and use.

Personalized push gives the user more control over frequency and utility, which ultimately reaches audiences with higher relevance.

A B C

18

B


✓ ✓ ✓

C

A

Functionality Currently Offered by Leading OS Platforms

ADDITIONAL MESSAGING INSPIRATION

19

INTERACTIVE PUSH NOTIFICATIONS ABC News integrates the ability to Follow Story or Share into a push notifications; Apple’s iOS supports the ability to enable actions such as Remind Me Later or Download Offer that retailers could utilize to better engage app users.

BEACONS Facebook integrates a small navigational element at the top of the Facebook app only when users are within proximity of a Facebook enabled beacon. Most retailers have yet to integrate meaningful beacons messaging solutions into their apps.

Swipe left

Functionality Currently Offered by Leading OS Platforms

ADDITIONAL MESSAGING INSPIRATION

20

LOCATION-BASED NOTIFICATIONS Apps with location services turned on can provide a prompt to open the app in the lower left hand portion or the screen or through a Passbook notification when the user is physically near a store. Analysts speculate Apple also allows advertising of “Suggested Apps” based on location in this same space even if the app isn’t installed on the phone.

WIDGETS Both Android and iOS integrate widgets that display limited but distinct information in widgets that live on the home screens for Android and on the Alerts and Notifications drop-down for iOS. This example includes a Walmart Value of the Day widget and a Target Add to Shopping List widget.

Swipe up launches app from lock screen

SUMMARY IMPLICATIONS

21

1 Most retailer emails are not Mobile Smart Email is one of the most important marketing tools for retailers. Most emails are opened on mobile devices, yet given this context, most retailers fail to implement email experience that drive omni-channel conversion. Mobile Smart emails don’t just load on mobile; they actually provide a superior mobile viewing and clicking experience.

2 Differences between retailer mobile websites and apps is limited Retailers at large have not greatly differentiated their mobile web from the mobile app experience. In most cases, the two experiences mirror each other as opposed to integrating a more powerful and relevant app experience for a likely more loyal audience.

3 Innovation missing from mobile Retailers lag behind customer adoption of mobile-specific behaviors and trends; this is particularly true for retailers with a brick and mortar presence. This could lead to more and more customers using online pure plays for retail shopping, as these companies continue to advance faster and farther than their omni or brick and mortar counterparts.

4 Mobile messaging lacks creativity Both iOS and Android offer numerous features that retailers have not integrated or promoted. With the Apple Watch and other wearable technologies already in-market, and significant penetration of push notifications, retailers are failing to experiment with useful, utility driven messaging programs and experiences that uniquely address how customers use mobile in their daily lives. Too much is a replication of desktop thinking that falls flat on mobile.

Columbus, Chicago, Cincinnati, New York

Christopher Barcelona Executive Director, Omni Channel [email protected]

About Resource/Ammirati Born digital, Resource/Ammirati is an entrepreneurial marketing agency with 400+ associates across four offices. We help ambitious marketers like Coca-Cola, CVS, DSW, Nestlé, Newell Rubbermaid, North American Breweries, P&G, Pirate’s Booty, Sherwin-Williams, White Castle and Victoria’s Secret build OPEN brands and embrace “everywhere commerce” to accelerate growth. For Press Inquires, Contact: Kristyn Wilson [email protected] For Business Requests, Contact: Brian Heffernan [email protected]

For More Information, Please Contact:

A 25-year veteran of the industry and an original member of Resource/Ammirati's groundbreaking Innovation Lab, Christopher is uniquely skilled at creating digital experiences that work together to fuel omni-channel commerce. His direction has allowed brands such as Victoria’s Secret, Walmart and DSW to open new commerce channels that deliver on brand promises and drive business.

DETAILED MOBILE AUDIT RESULTS

Functionality by a sample of retailers in Q1, 2015

MOBILE APPS | 30 SELECTED RETAILERS

24 Present Not Present Not Applicable or Unable To Access

iPhone

App

Androi

d Pho

ne App

iPad A

pp

Androi

d Tab

let A

pp

Campa

ign/S

econ

dary

App

eCom

merce

In-App

Accou

nt Crea

tion

Social

Login

Greet B

y Nam

e

Stored

Accou

nt Inf

o

Stored

Purc

hase

Hist

ory

Save L

ocal

Store

Use Lo

catio

n to F

ind Lo

cal S

tore

Store L

ocato

r

Find In

Stor

e Fun

ction

In-Stor

e Prod

uct L

ocato

r/Map

In-Stor

e Mod

e

Wish

List

Shopp

ing Li

st

Save f

or La

ter

Regist

ry

Barcod

e/QR S

cann

ing

Search

by Voic

e

Person

alize

d Rec

ommen

datio

ns

Produc

t Con

figura

tor

Acces

s to R

ating

s and

Rev

iews

Leav

e Rati

ngs a

nd R

eview

s

Sortab

le Rati

ngs a

nd R

eview

s

Catalog

/Circ

ular/L

ookB

ook

AR/Cam

era C

olor ID

/Pho

to Filte

r

Mobile

Video/M

usic

Engag

emen

t Con

tent (g

ames

, blog

s, etc

.)

Social

Con

tent In

tegrat

ion

Check

Gift

Card B

alanc

e

Purcha

se G

ift Card

s

Store G

ift Card

s

Pay w

ith G

ift Card

s

View Lo

yalty

Earn Lo

yalty

Redee

m Loya

lty

Receip

t Sca

nning

Mobile

Wall

et

Passb

ook I

ntegra

tion

1-Step

/Exp

ress C

heck

out

Self-C

heck

out/O

rderin

g

Guest

Check

out

Ship to

Stor

e/Pick

Up I

n Stor

e

Pay w

ith S

ervice

(Pay

Pal, et

c.)

Links

to E

xterna

l Merc

hants

Messa

ge C

enter

Live C

ustom

er Serv

ice

Incen

tives

for S

harin

g

Push N

otific

ation

s

Person

alize

d Pus

h

Callou

t to E

mail

Callou

t to S

MS

Callou

t to S

ocial

WALMART

KROGER

COSTCO

HOME DEPOT

WALGREENS

AMAZON

MCDONALDS

APPLE STORE

KOHL'S

MEIJER

GAP

SUBWAY

WHOLE FOODS MARKET

7-ELEVEN

BED BATH & BEYOND

STARBUCKS

PINK

STAPLES

ANTHROPOLOGIE

DICK'S SPORTING GOODS

FAB

FOREVER 21

GOOD NEIGHBOR

IKEA

LORD AND TAYLOR

OFFICE DEPOT

PATAGONIA

SHERWIN-WILLIAMS

ULTA

URBAN OUTFITTERS

MOBILE WEB | 30 SELECTED RETAILERS


Mobile

-Opti

mized W

ebsit

e

Respo

nsive

Site

eCom

merce

Greet B

y Nam

e

Stored

Accou

nt Inf

o

Stored

Purc

hase

Hist

ory

Save L

ocal

Store

Single

Cart

Mobile

Wall

et

Passb

ook I

ntegra

tion

Acces

s to R

ating

s & R

eview

s

Leav

e Rati

ngs a

nd R

eview

s

Sortab

le Rati

ngs a

nd R

eview

s

Callou

ts to

App

Callou

ts to

SMS

Callou

ts to

Email

Callou

t to S

ocial

Mobile

Web

Accou

nt Crea

tion

Social

Login

Use Lo

catio

n to F

ind Lo

cal S

tore

Store L

ocato

r

Find In

Stor

e Fun

ction

In-Stor

e Prod

uct L

ocato

r/Map

Wish

List

Shopp

ing Li

st

Save F

or La

ter

Regist

ry

Person

alize

d Rec

ommen

datio

ns

Produc

t Con

figura

tor

Catalog

/Circ

ular/L

ookB

ook

AR/Cam

era C

olor ID

/Pho

to Filte

r

Mobile

Video/A

udio

Engag

emen

t Con

tent (b

logs,

etc.)

Social

Con

tent In

tegrat

ion

Check

Gift

Card B

alanc

e

Purcha

se G

ift Card

s

Store G

ift Card

s

Pay w

ith G

ift Card

s

View Lo

yalty

Earn Lo

yalty

Redee

m Loya

lty

1-Step

/Exp

ress C

heck

out

Self-C

heck

out/O

rderin

g

Guest

Check

out

Pay w

ith P

aymen

t Serv

ice (P

ayPal,

etc.)

Ship to

Stor

e/Pick

Up I

n Stor

e

Links

to E

xterna

l Merc

hants

Messa

ge C

enter

Live C

ustom

er Serv

ice

Incen

tives

for S

harin

g

WALMART

KROGER

COSTCO

HOME DEPOT

WALGREENS

AMAZON

MCDONALDS

APPLE STORE

KOHL'S

MEIJER

GAP

SUBWAY

WHOLE FOODS MARKET

7-ELEVEN

BED BATH & BEYOND

STARBUCKS

PINK

STAPLES

ANTHROPOLOGIE


FAB

FOREVER 21

GOOD NEIGHBOR

IKEA

LORD AND TAYLOR

OFFICE DEPOT

PATAGONIA

SHERWIN-WILLIAMS

ULTA

URBAN OUTFITTERS

MOBILE COMMUNICATION | 30 SELECTED RETAILERS


SMS Mes

sage

s

MMS Mes

sage

s

Mobile

Offe

rs

Greet B

y Nam

e

Person

alize

d Mes

sage

s

Callou

ts to

App

Callou

t to E

mail

Callou

t to S

ocial

WALMART

KROGER

COSTCO

HOME DEPOT

WALGREENS

AMAZON

MCDONALDS

APPLE STORE

KOHL'S

MEIJER

GAP

SUBWAY

WHOLE FOODS MARKET

7-ELEVEN

BED BATH & BEYOND

STARBUCKS

PINK

STAPLES

ANTHROPOLOGIE


FAB

FOREVER 21

GOOD NEIGHBOR

IKEA

LORD AND TAYLOR

OFFICE DEPOT

PATAGONIA

SHERWIN-WILLIAMS

ULTA

URBAN OUTFITTERS

Mobile

Opti

mized E

mail

Greet B

y Nam

e

Person

alize

d Mes

sage

s

Mobile

Offe

rs

Passb

ook I

ntegra

tion

Callou

ts to

App

Callou

ts to

SMS

Callou

t to S

ocial

WALMART

KROGER

COSTCO

HOME DEPOT

WALGREENS

AMAZON

MCDONALDS

APPLE STORE

KOHL'S

MEIJER

GAP

SUBWAY

WHOLE FOODS MARKET

7-ELEVEN

BED BATH & BEYOND

STARBUCKS

PINK

STAPLES

ANTHROPOLOGIE


FAB

FOREVER 21

GOOD NEIGHBOR

IKEA

LORD AND TAYLOR

OFFICE DEPOT

PATAGONIA

SHERWIN-WILLIAMS

ULTA

URBAN OUTFITTERS