Upload
the-economist-group
View
644
Download
0
Tags:
Embed Size (px)
Citation preview
A report from the Economist Intelligence Unit
Sponsored by
From mobile aspirations to business results
Thenewretail:
© The Economist Intelligence Unit Limited 20141
The new retail: From mobile aspirations to business results
Preface 2
Executive summary 3
Introduction: A shopping mall in the palm of everyone’s hand 4
Consumers lead, retailers sluggishly follow 6
Easier said than done: Moving from theory to practice 7
Commitment and execution 8
Focus on customer value 10
Conclusion 13
Appendix: Survey results 14
Contents
1
2
3
4
5
© The Economist Intelligence Unit Limited 20142
The new retail: From mobile aspirations to business results
About this report
The new retail: From mobile aspirations to business results is an Economist Intelligence Unit research report, sponsored by AT&T. Our thanks go to all survey respondents and interviewees for their time and insight.
The report was written by Peter Moustakerski and edited by Christine Emba. The findings and views expressed in the report do not necessarily reflect the views of the sponsor.
March 2014
The survey, conducted in September and October 2013, reached 156 respondents in the retail sector: 30% from North America, 29% from Asia-Pacific, 27% from Western Europe, 6% from the Middle East and Africa, 5% from Latin America and 3% from Eastern Europe. Respondents filled a variety of functional roles—40% were in general
management, while 15% were in finance, 12% in strategy and business development, and 11% in marketing and sales, among others. Twenty-six percent of respondents were CEOs, presidents, or managing directors, 16% were SVPs, VPs or Directors in Merchandising, and 33% were SVP, VP or Director-level in other roles.
Who took the survey?
© The Economist Intelligence Unit Limited 20143
The new retail: From mobile aspirations to business results
A proliferation of powerful and functionality-laden mobile devices has transformed the way that people live and function. The ubiquity of mobile devices has had a particularly strong impact on the retail sector, as customers and employees increasingly use and depend on their mobile devices throughout their shopping experience. This mobile penetration is transforming shopping behaviours, as well as how retailers define success.
In order to determine how retailers are responding to the rise in mobile-empowered consumers, The Economist Intelligence Unit, on behalf of AT&T, conducted a survey of over 150 global executives from around the world.
Key findings include:
l The mobile transformation is solidly under way in retail, and consumers are leading the charge. As of January 2014, 91% of Americans owned a mobile phone, and 55% had a smartphone. According to our survey, 39% of respondents say that customers use mobile devices “extensively” or ”often” while shopping. Thirty percent of respondents have seen major behavioural shifts in customers attributable to mobile device usage, while 25% have observed similar shifts in their employees.
l Integrating mobile is crucial to delivering a quality omni-channel experience. Deploying mobile devices and fostering a culture of usage and innovation are seen by 84% of retailers as important to a strong omni-channel experience. To do so effectively, however, retailers must be able to integrate their theoretical ambitions with practical execution. In our survey, respondents who perceive their companies as “practical” leaders or early adopters—those who not only aspire to use but actually adopt mobile technologies and integrate them throughout their company—are more likely to report above-average success across the board.
l The most effective mobile tools for retailers focus on consumer value. Consumers respond more favourably to sophisticated, narrowly targeted and higher-value-add tools, such as mobile coupons (75% of retailers believe they have generated a positive response from customers), geo-targeted advertisements and promotions (74%) and product search apps (72%). Retailers’ next generation of mobile technologies will be designed to address specific customer needs and pain points, integrate the customer experience across sales channels and create previously unexplored sales opportunities.
Executive summary
© The Economist Intelligence Unit Limited 20144
The new retail: From mobile aspirations to business results
Shortly after taking over as head of marketing at Max Brenner—a chain of chocolate-themed cafés and candy boutiques—Stacey Paul took note of one particular metric: as many as half of all users were accessing the company’s website on their mobile devices. However, the newly redesigned site did not have key mobile features such as pinch-and-zoom or swiping between pages. “We had to rethink our strategy,” says Ms Paul. “The world is quicker and smaller, and your life is now on mobile. Retailers need to answer that call.” Hence one of
her first decisions as the company’s top marketing executive was to redraw the website and optimise it for smartphones and tablets using the latest in mobile Internet design and functionality.
The growing digital retail turnover is increasingly happening on the go. The significant penetration of mobile devices into the lives of everyday consumers is transforming shopping behaviours. As Ms Paul points out, consumers’ daily activities are increasingly reliant on mobile phones and tablets—how they shop is no exception. According to the
Introduction: A shopping mall in the palm of everyone’s hand1
Q
Source: Economist Intelligence Unit survey, October 2013.
Strong impact
Moderate impact
Weak impact
No impact Don’t know/ Not applicable
Pre-purchase: Discovery and awareness
Pre-purchase: Decision to purchase
Pre-purchase: Comparison and selection
Purchase: Decision to upgrade/increase purchase
Purchase: Shopping experience
Post-purchase: Fulfilment and delivery experience
Post-purchase: After-sales service and support experience
Post-purchase: Decision to repeat purchases/customer loyalty and advocacy
How will the use of mobile devices impact the following stages of your customer’s purchasing lifecycle? Please select responses on a scale from ‘Strong impact’ to ‘No impact’. (% respondents)
47 38 6 3 5
24 58 10 5 3
41 42 6 7 4
26 45 18 6 6
33 43 15 4 5
29 38 19 10 3
30 36 17 13 4
31 40 15 9 5
© The Economist Intelligence Unit Limited 20145
The new retail: From mobile aspirations to business results
Pew Research Center, a US think-tank, as of January 2014 91% of the US population carries a mobile phone, 55% have a smartphone and 42% own a tablet computer. Young people and wealthier, more-educated consumers are even more connected to their smart mobile devices—they do about one-quarter of their shopping online and one-third of them use their phones for online research when deciding whether to visit a brick-and-mortar store or a restaurant.
This mobile shopping trend is expected to accelerate—according to the 2014 Mobile 500 report published by Internet Retailer, mobile commerce in the US will grow 63% to reach US$34bn by the end of 2014, up from US$21bn in 2012. These trends are holding across retail industries, even in retail banking and brokerage.
“Today, 12% of our daily average revenue trades come through mobile,” says Paul Zettl, managing director of retail marketing and digital media at TD Ameritrade, a US online broker. Customers can use its mobile app from their smartphones or tablets to check balances, access investment research and place trade orders.
This rapid and on-going evolution has put large
amounts of information and powerful mobile-technology tools at the fingertips of ordinary people, resulting in the emergence of a culture that will forever transform how people plan and do their shopping. Results from an Economist Intelligence Unit (EIU) survey of more than 150 retail executives worldwide, conducted in October 2013, confirm that consumers are increasingly relying on their mobile devices during their shopping experiences—39% of respondents say that customers use them “extensively” or ”often” while shopping.
The growing prevalence of mobile devices is expected to affect every stage of retail shopping, though the awareness and comparison stages of a customer’s purchasing lifecycle should experience the greatest impact. Overall, mobile technologies will have a positive effect on customer engagement and key business metrics that matter to retailers’ business performance. Ultimately, mobile technologies are widely expected to benefit the two most important objectives for retail operators: profitability and customer experience. The trick for retail operators will be to transform their strategies to reap these benefits.
❛❛ The world is quicker and smaller, and your life is now on mobile. Retailers need to answer that call.❜❜Stacy Paul Head of marketing Max Brenner
© The Economist Intelligence Unit Limited 20146
The new retail: From mobile aspirations to business results
“Consumers are leading the way in mobile shopping, and retailers are struggling to catch up,” says Ms Paul of Max Brenner. Our survey data support her assertion—respondents to our survey see significant cultural and behavioural shifts both among their retail customers and employees as a result of increased mobile device usage. The new reality of mobile technology has influenced business drivers touching everyone in the
organisation, from corporate office to shop floor. Providing an integrated, seamless shopping
experience across digital and physical channels has continued to be a challenge for many retailers. The delivery of such an omni-channel experience is an important strategic goal across the retail industry. “It is what customers have come to expect—the confluence of their online and in-store experience with our brand,” says Claire
Consumers lead, retailers sluggishly follow2
Q
Source: Economist Intelligence Unit survey, October 2013.
Very positive impact
Somewhat positive impact
No impact Somewhat negative impact
Very negative impact
Don’t know/ Not applicable
Volume of footfall or traffic
Rate of traffic-to-sale conversion
Average sale/check amount
Customer loyalty metrics
Number of times inventory turns per month
Inventory loss due to theft or waste
Seasonal/peak period demand management
Operating profit margins at the store level
Corporate overhead costs
Impact of mobile device and application use on different business drivers for retail organisations Please select responses on a scale from ‘Very positive impact’ to ‘Very negative impact’. (% respondents)
23 41 24 3 9
14 50 25 1 10
19 28 43 3 8
23 43 26 1 8
15 28 44 2 12
14 14 56 1 15
17 33 37 3 1 10
24 28 30 7 10
18 26 38 7 1 11
© The Economist Intelligence Unit Limited 20147
The new retail: From mobile aspirations to business results
Chambers, founder and CEO of Journelle, an upscale lingerie retailer in the US.
Yet many retailers still struggle with the challenge of co-ordinating customer experiences across channels, and many haven’t been completely successful. Twenty-four percent of EIU survey respondents rate their company’s success in
creating an omni-channel experience as “somewhat” or “well below average” compared with that of their peers.
Why are many retailers failing to realise their omni-channel goals or even catch up with the rest of the field? What separates the organisations that succeed from the rest of the pack?
In our survey, we analysed two levels at which companies embrace mobile technology: “theoretical”, which reflects the leadership’s stance and the company’s stated position with regard to using mobile technology to achieve its strategic goals, and “practical”, which reflects the organisation’s actual use of mobile devices and apps to serve customers.
Our data show a strong connection between a retailer being either a theoretical or a practical leader in embracing mobile technologies and successfully implementing an omni-channel strategy—respondents who see their companies as frontrunners in the mobile space (either in theory or practice) are much more likely to report that
they are enjoying above-average success creating a high-quality omni-channel experience.
More than one-third of our survey respondents believe that their company is a theoretical leader—that is, their company and its leadership team have a positive, encouraging attitude towards the use of mobile devices to engage customers and drive business results. At the same time, however, actual use of these technologies tends to lag behind the operators’ theoretical aspirations.
This gap between theory and practice highlights both the challenge and the opportunity for retailers as they transform themselves into omni-channel players, and underlines the need for the strategies that we describe below.
Easier said than done: Moving from theory to practice
Source: Economist Intelligence Unit survey, October 2013.
Success by “practical” and “theoretical” mobile technology leaders in creating an omni-channel experience, compared with that of industry peers (% respondents)
Well above average
Somewhat above average
Average/On par with peers
Somewhat below average
Well below average
We do not focus on the development of an omni-channel experience
“Theoretical” leaders and early adopters “Practical” leaders and early adopters
36 34
36 39
27 27
00
00
20
© The Economist Intelligence Unit Limited 20148
The new retail: From mobile aspirations to business results
Commitment and execution3
Market leaders excel at motivating and mobilising their workforce to create an in-house app culture of their own.
For many retailers, in-store sales still dominate their revenues; thus, investing in the development of new digital channels may seem less urgent. Such thinking leads to a lack of top-down leadership commitment to new mobile channels, which in turn affects the buy-in of the rest of the organisation. In addition, mobile channels still account for a relatively small portion of revenues, and the cost of developing and maintaining a high-quality omni-channel experience can be significant.
“Merging the information from different databases is a real challenge,” says Ms Chambers of Journelle. “Customers expect to walk into your store and pick up merchandise that they placed in their online cart the day before. But we can’t see what’s in their online cart, and sometimes don’t even stock the same merchandise in our stores.”
If retailers are to succeed as omni-channel players, they must meet two challenges. First, they
have to develop the leadership commitment—the theoretical aspiration—to use mobile technologies across sales channels to achieve their strategic goals.
Second, they need to find the focus and stamina—the practical execution capabilities—to follow through on their commitment and complete the complex tasks required to transform themselves into omni-channel operators. These tasks include integrating information from multiple systems and databases, co-ordinating marketing content across customer touch-points and revamping operations to support product merchandising and fulfilment across different channels.
In our survey, respondents who perceive their companies as “practical” leaders or early adopters—those who not only aspire to adopt but also actually go forward to adopt mobile technologies and apps—are more likely to report above-average success across the board.
Q
Source: Economist Intelligence Unit survey, October 2013.
To what extent has the use of mobile devices and applications led to a cultural and behavioural shift at your organisation in the past 3 years? (% respondents)
Major change
Moderate change
Minor change
No change
“Practical” leaders and early adopters Followers
52 16
41 47
5 29
2 6
© The Economist Intelligence Unit Limited 20149
The new retail: From mobile aspirations to business results
Market leaders are much more likely to report that their employees “extensively” or “often” use mobile devices to serve customers or that mobile technologies have led to a major or moderate behavioural shift among their employees. These retailers excel at motivating and mobilising their workforce to create an in-house app culture of their own and thus are able to respond to customers’ expectations when it comes to using mobile devices throughout the shopping lifecycle.
“Our mobile development team is embedded in the product team,” says Mr Zettl of TD Ameritrade. He points out that having marketers who keep up with the latest mobile capabilities, along with app
developers who understand the marketing strategy and customer needs, is critical to the success of mobile strategies. “Our strategy is to help our clients trade more intelligently,” says Mr Zettl, “and building a ‘mobile-first’ platform is the industry holy grail we are striving to reach.”
Practical mobile app and device leaders also see greater impact of mobile technologies on a customer’s shopping journey, and they deploy more advanced and value-added services to their customers to maintain loyalty. Most important, they report significantly higher benefits from mobile technology on all their key business metrics and, ultimately, on their company’s bottom line.
Q
Source: Economist Intelligence Unit survey, October 2013.
Has mobile device use had a positive impact on the following business drivers for your organisation? (% respondents)
Customer loyalty metrics
Rate of traffic-to-sale conversion
Operating profit margins at the store level
Volume of footfall or traffic
Season/peak period demand magangement
Corporate overhead costs
Average sale/check amount
Number of times inventory turns per month
Inventory loss due to theft or waste
“Practical” leaders and early adopters Followers
86 57
84 63
80 45
73 65
73 44
70 33
66 43
64 37
48 20
❛❛ Building a ‘mobile first’ platform is the industry holy grail we are striving to reach.❜❜Paul Zettl Managing director, retail marketing and digital media TD Ameritrade
© The Economist Intelligence Unit Limited 201410
The new retail: From mobile aspirations to business results
The second dimension that underpins the omni-channel success of leaders goes beyond whether they have the commitment and capabilities to adopt and use the latest mobile technology tools. Rather it matters what they do with these technologies and how well they deploy them to solve pressing customer problems.
The widespread penetration of mobile devices and the proliferation of free or low-cost mobile applications have presented consumers with a plethora of tools designed to address their slightest need. The realm of consumer retail
shopping in particular has been flooded with tools and applications that target every step of the purchasing process. Most, if not all, are aimed at making parting with cash anytime and anywhere as easy—and even fun— as possible for consumers.
The mobile tools most widely deployed by retailers today tend to focus on one primary sales channel rather than functioning across channels. The most common tools include a company-branded mobile website or app (used by 65% of total survey respondents.) and social media software (53%).
The next generation of mobile tools will be
Focus on customer value4
Q
Source: Economist Intelligence Unit survey, October 2013.
Which of the following mobile device technologies and applications are currently used by your company to serve your customers? (% respondents)
Company-branded mobile app/website
Customer WiFi
Social media software (eg, monitoring, engagement and analytics)
Big data analytics (eg, WiFi/Cellular)
Mobile point-of-sale/payment
Click & reserve functionality
Digital signage and in-store communications
Customer collaboration solutions (eg, customer profile, live chat/support)
Self-serve kiosks
“Practical” leaders and early adopters Followers
82 66
80 54
52 56
68 51
61 40
73 27
55 29
50 28
50 24
© The Economist Intelligence Unit Limited 201411
The new retail: From mobile aspirations to business results
designed to address specific customer needs and pain points, integrate the customer experience across sales channels and create previously unexplored sales opportunities. The Nieman Marcus mobile app, for example, combines customer service and collaboration with store staff. The luxury retailer’s app allows customers to bookmark certain items and then connect by e-mail, text or phone with sales staff in a nearby store.
“Mobile customers behave differently from shoppers who are online or in a physical store,” says Ms Paul. “They have less time and are acting with a specific purpose in mind.” Thus customers expect mobile apps to be simple, easy to navigate and geared towards achieving a specific, relevant objective.
Industry leaders and early adopters listen to pressing customer needs and respond with simple, user-friendly and useful apps and services. US retailer Wal-Mart, for example, realised that some of its recession-hit customers had smartphones and wanted to shop online, but did not have credit cards with which to place orders. To allow these customers to use their preferred channel, Wal-Mart began to let customers place orders online and
then come into a bricks-and-mortar outlet to make payment in cash.
“Following the customers to where they want to go is key,” says Ms Chambers of Journelle, “and giving them a valuable service, such as pulling up their past purchasing history or the ability to pick up or return in the store goods they purchased online.”
This distinction between mobile leaders and followers is evident in our survey results—leaders are much more likely to offer their customers click-and-reserve capabilities or use mobile point-of-sale payment systems.
For instance, US supermarket chain ShopRite is testing a mobile app that allows customers to scan items on their smartphones as they place them in their shopping carts and then use their phone to check out, thereby bypassing crowded checkout lanes.
Among mobile marketing tools, the most common are e-mail communication, social media integration and text messaging. Yet these traditional digital methods are not necessarily the most effective way to reach new customers or cement existing relationships. When asked about consumers’ response to different mobile marketing
Q
Source: Economist Intelligence Unit survey, October 2013.
Which of the following mobile marketing tools and strategies do you currently utilise to engage your customers? (% respondents)
Email communication
Social media integration
Text messaging/SMS
Store locator apps
Product search apps
Geo-targeted advertisement and promotions
QR codes
Mobile coupons
Mobile shopping card/payment apps
Mobile video advertisements
“Practical” leaders and early adopters Followers
82 81
70 64
80 57
77 49
75 45
66 41
70 38
68 32
48 16
41 15
❛❛ Following the customers to where they want to go is key.❜❜Claire Chambers Founder and CEO Journelle
© The Economist Intelligence Unit Limited 201412
The new retail: From mobile aspirations to business results
tools, EIU survey participants rate e-mail and text messaging as least appealing.
More sophisticated mobile marketing tools such as geo-targeted promotions (used by 45% of survey respondents) and mobile coupons (39%) are also gaining ground and tend to generate greater customer engagement.
The Hijack app by Guatemalan footwear retailer Meatpack uses GPS technology to detect when users are in competitors’ stores. Customers receive a message with a discount that starts at 99% and drops by 1% every second, meaning that the faster customers arrive at a Meatpack retail store, the higher a discount they will receive. In addition to generating significant marketing buzz, the app reportedly “hijacked” 600 customers in a single week.
Consumers respond more favourably to such
sophisticated, narrowly targeted and higher-value-add tools. According to participants in our survey, mobile coupons are most welcome, followed by geo-targeted advertisements and promotions, and product search-and-compare apps.
And when it comes to marketing tools, industry leaders in mobile deployment are much more adept at using high-value-add tools such as store locator apps, QR codes and geo-targeted ads and promotions.
“Targeting is key,” says Ms Paul. “Your marketing message can’t be broad anymore, which is why geo-targeting is a must—it’s expected.” Best-in-class mobile tools provide both the speed and convenience mobile consumers crave, as well as content and interactions that are specifically targeted to their preferences and thus relevant to their needs.
❛❛ Targeting is key. Your message can’t be broad anymore. ❜❜Stacey Paul Head of Marketing Max Brenner
© The Economist Intelligence Unit Limited 201413
The new retail: From mobile aspirations to business results
Mobile technology will continue to play an increasing role in improving the consumer retail experience and unlocking new revenue opportunities for retailers. For the foreseeable future, consumers will likely set the speed, direction and expectations of the app culture revolution and retailers will do their best to keep pace and realise the business benefits.
Accordingly, retailers will need to rethink their strategies to incorporate and prioritise the new mobile channels. They will need to communicate these new attitudes both internally and externally, and mobilise their leadership and rank-and-file employees to execute the transformational initiatives that will lay the groundwork for their
omni-channel success. In-store employees will be especially critical to this transformation. Companies should enable those on the front lines with the necessary tools and training to develop a supply-side culture that meets the new needs of an increasingly mobile-savvy consumer.
Finally, retailers will need to become far better listeners to their customers. Rather than taking a one-size-fits-all approach, they must navigate the clutter of apps and tools now available and prioritise those that address specific needs and problems—such as convenience, speed of transaction, individually tailored offerings and promotions—if they are to remain fresh, relevant and indispensable in the minds and hearts of consumers.
Conclusion5
© The Economist Intelligence Unit Limited 201414
The new retail: From mobile aspirations to business results
Appendix: Survey results
Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses.
Overall, how would you characterise your company’s position with regard to utilising mobile devices and apps in achieving its strategic goals? (% respondents)
Industry leader and innovator of mobile technologies
Early adopter of cutting-edge mobile technologies
Early follower of proven mobile technologies
Late follower of established mobile technologies
Not a follower of proven or established mobile technologies
Don’t know
12
24
28
26
10
0
How would you characterise your organisation’s use of mobile devices and apps in serving your customers? (% respondents)
Industry leader and innovator of mobile technologies
Early adopter of cutting-edge mobile technologies
Early follower of proven mobile technologies
Late follower of established mobile technologies
Not a follower of proven or established mobile technologies
Don’t know
10
18
30
31
10
1
© The Economist Intelligence Unit Limited 201415
The new retail: From mobile aspirations to business results
To what extent are your employees using mobile devices and apps to serve their customers throughout their shopping journey? (% respondents)
Extensively/always
Often
Sometimes
Rarely
Not at all
Don’t know/Not applicable
16
25
34
18
6
1
To what extent are your customers using mobile devices and apps to fulfil their shopping missions at your retail stores? (% respondents)
Extensively/always
Often
Sometimes
Rarely
Not at all
Don’t know/Not applicable
10
28
36
18
4
4
Major change
Moderate change
Minor change
No change Don’t know
Cultural shift among your employees
Cultural shift among your customers
Behavioural shift among your employees
Behavioural shift among your customers
In your opinion, to what extent has the use of mobile devices and applications led to a cultural and behavioural shift at your organisation in the past 3 years? Please select responses on a scale from ‘Major change’ to ‘No change’. (% respondents)
28 42 21 8 1
27 42 21 8 2
25 42 22 8 2
30 35 27 5 3
© The Economist Intelligence Unit Limited 201416
The new retail: From mobile aspirations to business results
Major change
Moderate change
Minor change
No change Don’t know
Cultural shift among your employees
Cultural shift among your customers
Behavioural shift among your employees
Behavioural shift among your customers
To what extent will the use of mobile devices and applications lead to a cultural and behavioural shift at your company in the next 3 years? Please select responses on a scale from ‘Major change’ to ‘No change’. (% respondents)
40 43 12 4 1
35 42 17 5 1
43 38 15 4
39 38 17 5 1
Which of the following mobile device technologies and applications are currently used by your company to serve your customers? Please select all that apply. (% respondents)
Company-branded mobile app/website
Customer WiFi
Social media software (eg, monitoring, engagement and analytics)
Big data analytics (eg, WiFi/Cellular)
Mobile point-of-sale/payment
Click & reserve functionality
Digital signage and in-store communications
Customer collaboration solutions (eg, customer profile, live chat/support)
Self-serve kiosks
Other
65
60
53
51
44
37
34
33
29
2
© The Economist Intelligence Unit Limited 201417
The new retail: From mobile aspirations to business results
Which of the following mobile device technologies and applications not currently used by your organisation will be implemented in the next eighteen months? Please select all that apply. (% respondents)
Customer collaboration solutions (eg, customer profile, live chat/support)
Mobile point-of-sale/payment
Self-serve kiosks
Digital signage and in-store communications
Social media software (eg, monitoring, engagement and analytics)
Click & reserve functionality
Company-branded mobile app/website
Big data analytics (eg,WiFi/Cellular)
Customer WiFi
Other
None of the above
26
22
21
20
20
19
13
13
9
1
19
Which of the following mobile marketing tools and strategies do you currently utilise to engage your customers? Please select all that apply. (% respondents)
Email communication
Social media integration
Text messaging/SMS
Store locator apps
Product search apps
Geo-targeted advertisement and promotions
QR codes
Mobile coupons
Mobile shopping card/payment apps
Mobile video advertisements
Other
82
63
62
54
51
45
44
39
23
21
1
© The Economist Intelligence Unit Limited 201418
The new retail: From mobile aspirations to business results
Positively Neutral Negatively Don’t know/ Not applicable
Geo-targeted advertisement and promotions
Store locator apps
Product search apps
QR codes
Text messaging/SMS
Email communication
Social media integration
Mobile coupons
Mobile shopping card/payment apps
Mobile video advertisements
How have customers responded to the mobile marketing tools and strategies used by your organisation? Please select responses on a scale from ‘Positively’ to ‘Negatively’. (% respondents)
74 20 1 4
57 41 2
72 24 4
52 42 1 4
56 35 5 3
57 35 6 2
66 29 2 3
75 20 5
69 22 8
59 41
Strong impact
Moderate impact
Weak impact
No impact Don’t know/ Not applicable
Pre-purchase: Discovery and awareness
Pre-purchase: Decision to purchase
Pre-purchase: Comparison and selection
Purchase: Decision to upgrade/increase purchase
Purchase: Shopping experience
Post-purchase: Fulfilment and delivery experience
Post-purchase: After-sales service and support experience
Post-purchase: Decision to repeat purchases/customer loyalty and advocacy
How will the use of mobile devices impact the following stages of your customer’s purchasing lifecycle? Please select responses on a scale from ‘Strong impact’ to ‘No impact’. (% respondents)
47 38 6 3 5
24 58 10 5 3
41 42 6 7 4
26 45 18 6 6
33 43 15 4 5
29 38 19 10 3
30 36 17 13 4
31 40 15 9 5
© The Economist Intelligence Unit Limited 201419
The new retail: From mobile aspirations to business results
How would you rate your company’s success in creating an omni-channel experience compared with that of your industry peers? (% respondents)
Well above average
Somewhat above average
Average/On par with peers
Somewhat below average
Well below average
We do not focus on the development of an omni-channel experience
14
29
28
19
5
6
In your opinion, how important is the deployment of mobile devices and apps to the creation of an omni-channel experience? (% respondents)
Highly important
Moderately important
Minimally important
Not important at all
Don’t know
47
37
10
1
4
Very positive impact
Somewhat positive impact
No impact Somewhat negative impact
Very negative impact
Don’t know/ Not applicable
Volume of footfall or traffic
Rate of traffic-to-sale conversion
Average sale/check amount
Customer loyalty metrics
Number of times inventory turns per month
Inventory loss due to theft or waste
Seasonal/peak period demand management
Operating profit margins at the store level
Corporate overhead costs
What impact has the use of mobile devices and apps had on the following business drivers for your organisation? Please select responses on a scale from ‘Very positive impact’ to ‘Very negative impact’. (% respondents)
23 41 24 3 9
14 50 25 1 10
19 28 43 3 8
23 43 26 1 8
15 28 44 2 12
14 14 56 1 15
17 33 37 3 1 10
24 28 30 7 10
18 26 38 7 1 11
© The Economist Intelligence Unit Limited 201420
The new retail: From mobile aspirations to business results
Positive effect
No effect Negative effect
Don’t know/ Not applicable
Your company’s bottom line
Your customers’ shopping experience
In your opinion, over the next 3 years, will the use of mobile devices and apps have a positive or negative effect on your company’s bottom line and your customer’s experience? Please select responses on a scale from ‘Positive effect’ to ‘Negative effect’. (% respondents)
75 18 3 5
82 14 1 3
Please select the retail sub-sector your company belongs to. Select the one response that best reflects the classification of your company. (% respondents)
General merchandiser
Department store
Supermarket
Superstore/discounter
Convenience store
Specialty retailer: footwear and apparel
Specialty retailer: personal care or health and beauty merchandise
Specialty retailer: household goods
Specialty retailer: home improvement merchandise
Specialty retailer: consumer electronics
Other specialty retailer
Catalogue or online retailer
Other retailer
8
8
8
1
3
17
8
6
5
5
13
7
9
In which country are you personally located? (% respondents)
United States of America
United Kingdom
Singapore
Australia, China, India, Japan, South Korea
Brazil, Germany, Italy, Romania, Spain
Canada, France, Saudi Arabia, United Arab Emirates
Argentina, Denmark, Hong Kong, Switzerland, Austria, Belgium, Finland, Ghana, Ireland, Israel, Kenya, Latvia, Lithuania, Malaysia, Mexico, Poland, Portugal, South Africa, Sweden, Taiwan, Turkey
28
8
5
4
3
2
1
North America
Asia-Pacific
Western Europe
Middle East and Africa
Latin America
Eastern Europe
In which region are you personally located?(% respondents)
30
29
27
6
5
3
$500m or less
$500m to $1bn
$1bn to $5bn
$5bn to $10bn
$10bn or more
What are your organisation’s global annual revenues in US dollars?(% respondents)
52
15
17
6
10
© The Economist Intelligence Unit Limited 201421
The new retail: From mobile aspirations to business results
General management
Finance
Strategy and business development
Marketing and sales
IT
Human resources
Supply-chain management
Procurement
Information and research
Operations and production
Risk/Security
Customer service
Other
What is your main functional role?(% respondents)
40
15
12
11
6
4
4
3
2
1
1
1
1
CEO/president/managing director
CFO/Treasurer/comptroller
CIO/CTO/Technology director
CMO/Advertising officer/ Experience officer
Other C-level executive
SVP/VP/Director, Merchandising
SVP/VP/Director, Distribution
SVP/VP/Director, Finance/accounting
SVP/VP/Director, Other
Which of the following best describes your title?(% respondents)
26
10
5
3
7
16
6
9
18
© The Economist Intelligence Unit Limited 201422
The new retail: From mobile aspirations to business results
Whilst every effort has been taken to verify the accuracy of this
information, neither The Economist Intelligence Unit Ltd. nor the
sponsor of this report can accept any responsibility or liability
for reliance by any person on this white paper or any of the
information, opinions or conclusions set out in the white paper.
Cove
r: S
hutt
erst
ock
London20 Cabot SquareLondon E14 4QWUnited KingdomTel: (44.20) 7576 8000Fax: (44.20) 7576 8476E-mail: [email protected]
New York750 Third Avenue5th FloorNew York, NY 10017United StatesTel: (1.212) 554 0600Fax: (1.212) 586 0248E-mail: [email protected]
Hong Kong6001, Central Plaza18 Harbour RoadWanchai Hong KongTel: (852) 2585 3888Fax: (852) 2802 7638E-mail: [email protected]
GenevaBoulevard des Tranchées 161206 GenevaSwitzerlandTel: (41) 22 566 2470Fax: (41) 22 346 93 47E-mail: [email protected]