Mobile Strategy for Retail - Moving Beyond Consumer Apps

Welcome. @propelics

We will begin at 1:02pm EDT!

Mobile Strategy for Retail: Moving Beyond Consumer Apps June 13th, 2013

Propelics Background – About Us

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•  15+ year track record •  Fortune 500 clients •  Global experience •  100% focused on mobile

for the Enterprise •  San Jose, Boston,

Pittsburgh

Propelics creates mobile strategies and world class Apps for the Enterprise.

Trusted by companies like yours:

•  Enterprise Mobile Strategy Services Enterprise Mobile Strategy Mobile App Portfolio Mobile App Scoping & Planning IT Readiness for Mobility BYOD and MDM Strategy Innovation through visualization Center of Excellence Creation

•  Mobile Advisory Services Mobile Mentoring Executive Education Speaking Engagements

•  Mobile App Development UX Design Onshore and Offshore App Development Mobile App Architecture Prototype Factory

What We Do

Eric Carlson: Propelics Partner

Eric is a seasoned leader with a keen eye for emerging technologies. He is well respected in both technical and businesscircles, due to his ability to match up the right amount of technology "geekiness" with business understanding to craft truly unique solutions.

As a seasoned executive, with startups through successful exits to his name, Eric has the experience to advise companies on the discipline and objective approaches that are needed to turn ideas into reality.

#mobilestrategy"

[email protected] @ericjohncarlson

Agenda!

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•  Market Trends & Objectives for Retailers Today •  Effective Use Cases for Retailers

•  How to Quickly Establish a Mobile Strategy

•  Q&A

Missed your topic? propelics.com/lets-talk!

Mobile will create a fundamental shift in how retailers run their business.

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•  The Early Days •  Shopkeeper 1:1 relationship with consumers

•  Small stores, small # of skus, personal recommendations

•  Self Service Retailing •  Mini-warehouses of product choice, decision making shift

•  Tremendous efficiencies, passive role in product selection – less consumer interaction

•  Placement of items and path of shoppers dictated lift

•  Active Retailing

The Shifts of Retailers

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Identifying Methods for Technology to:

•  Provide a better understanding of what consumers want as they come through the door

•  Provide store associates the ability to use all corporate available information to assist these customers

•  Ensure store layout, product placement, and behind the scenes services are in alignment with customers quickly finding & buying

Our Objectives in Active Retailing

Q: How do we truly leverage mobility?

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Mobile is changing how consumers interact with retailers (in-store or not).

Mobile Use Will Accelerate Source: StatCounter Global Stats, 5/13. Note that PC-‐based Internet data bolstered by streaming

The Methods of Interaction Are Changing

Source: Google, Mobile In Store Research, May 2013

82% of shoppers use search engines when researching in-store!

1in 3 shoppers use their

smartphones to findinformation instead of

asking store employees.

Source: Google, Mobile In Store Research, May 2013

The App Reboot

Retailers are identifying where consumer mobile apps fit into their strategy

•  Rush to App delivery created poor representation •  m. showing higher eCommerce usage (8% à 11%) •  Strategic Alignment to In-Store Strategy? •  Customer or experience differentiation? •  Turn “showrooming” into an advantage? •  Why will they use it?

Source: ComScore, June 2013

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Self-Service Thinking: •  In-store navigation / shopping lists / coupons •  As a key to loyalty / rewards program •  Gift registry creation or fulfill •  Self-checkout / Mobile wallet Active Retailer Thinking: •  Using alternative channel browsing and interest history

to produce in-store recommendations/incentives •  Consumer paths in-store •  Is this enough to build a rewarding in-store experience?

Rebooting the Consumer App

To Be Continued…

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Stimulus! Share Exposed! Times per Trip! Seconds per Exposure!

End aisle display! 100%" 15.5" 5.8"

Free-standing display! 100%" 9.0" 4.0"

Display bins! 97%" 4.2" 3.3"

Floor ads! 91%" 2.9" 2.4"

Product pallet! 85%" 2.1" 4.9"

Shelf ads! 62%" 4.9" 2.5"

Coupon dispensers! 50%" 3.9" 3.0"

Store staff! 6%" 1.5" 45.0"

Video or interactive displays!

3%" 8.0" 2.5"Source: Inside the Mind of the Shopper, Herb Sorensen

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Display bins! 97%" 4.2" 3.3"

Floor ads! 91%" 2.9" 2.4"


Shelf ads! 62%" 4.9" 2.5"


Store staff! 6%" 1.5" 45.0"



Mobile is creating opportunities for store associates to rebuild trust with customers.

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Provide store associates the ability to use all corporate available information to assist these customers

•  Ending the information divide between customer online and in-store personas

•  Closing the physical dividebetween the associate and theinformation required

At the Point of Interaction

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•  Customer Steward – Stock & product information, check customer orders, order store-to-store or store-to-home, gift registry, loyalty sign-up

•  Efficiency – Mobile PoS (line breaking), perform check-out in-aisle, paperless receipts

•  Communication – Weekly, daily, real-time notifications, VOIP, augmenting the store portal

•  Notifications – Truck at dock, corporate to employee alert (safety, closures)

•  Employee – Self-service, training, HR processes

Common Use Cases for Associates

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Display bins! 97%" 4.2" 3.3"

Floor ads! 91%" 2.9" 2.4"


Shelf ads! 62%" 4.9" 2.5"


Store staff! 6%" 1.5" 45.0"



Mobile has the ability to significantly change how we manage and support retail stores.

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Ensure store layout, product placement, and behind the scenes services are in alignment with customers quickly finding & buying

•  Permanently out of the back room and on the floor

•  Ensuring we’re able to efficientlyperform store support processes – reducing non value-add tasks

Managing the Store and Employees

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•  Store Objectives – End cap and shelf layout, seasonals, augmented reality, store audits, QA/QC

•  Efficiency – Mobile PoS (line breaking), visibility to customer requests, associate app monitoring & request for help

•  Communication – Communication to staff/DM/corporate, finding people for open shifts

•  Notifications – Manager to employee alerts (safety, closures)

•  Employee – Associate on-boarding, training & certifications

Common Use Cases for Store Managers

Example: Family Dollar

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•  Poor utilization, non-actionable data •  Version 1 was to “App the current

process” •  Less utilization than paper •  Enhancements:

•  User Experience •  GPS, image capture •  Differences in status

•  85%+ utilization •  Data spurring

Store Ops engagements

Example: Family Dollar

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•  Store Information – Store inspector, hours, contacts, location, services, status

•  Store Analytics – Visibility to staffing, store performance dashboards, audit actions

•  Store Objectives – Auditing and compliance (multiple)

•  Communication – Communication to staff/corporate •  Employee – Associate and store management on-

boarding, training & certifications

Common Use Cases for District Managers

We’re Just Getting Started.

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•  Store Specialists – Additional audits, store communication and coordinating visits

•  Real Estate – Regional and site surveys and identification, share and annotate CAD with Store Dev

•  Store Development – “Store in a Box”, program management, vendor scheduling/communication, CAD annotation, photo capture, fixture order/change

•  Merchandising – In-store QC, Quick info on Lot #, status reporting, store visit reports, market basket pricing, competitor pricing, vendor contacts

Opportunities Throughout the Process

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•  Loss Prevention – View negative transactions (refund, void), field audit, pool point adjustments, audio/video recording of LP cases, alarm activity, access in-store camera

•  Manufacturing/QA – Process management, audits, QA/QC (a whole other webinar)

•  Distribution Centers, Logistics, Business Continuity, Product Development, Supply Chain, HR, Finance

Opportunities Throughout the Process

Where To Begin?

Business Drivers

Market Opportunity

Innovation Strategy & Alignment

Mobile Strategy & Prototype: Approach

Action Plan

Recommend

Use Case Risk

Analysis

Use Case identification

Innovation through

visualization

Business &

IT Roadmap

Stage I: Direction Setting

Stage II: Ideation, Assessment, Risk Analysis, Visualization

Stage III: Roadmap & Next Steps

App Portfolio

Mobility Strategy: Details

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•  Define the Vision •  A Day in the Life – Visits with key roles/associates/etc. •  Business Metrics

•  Associate experience •  Business model simplification •  In-store customer efficiency •  Supply chain action response time •  etc.

•  Innovation Environment •  Disruptive change and opportunity within mobile •  Review of market trends •  Retail specific innovation •  Innovation from other industries

•  Innovation influence •  Primary: Employees, distributors, suppliers, leadership, partners, etc. •  Secondary: Customer interaction via associate channel

Mobility Strategy: Details

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•  Identification of scenarios •  Ideation Framework •  Simplification of process •  Elegance in customer interactions •  Reduction of complexity – data,

requirements •  Primary business value

driver and actor for each scenario •  Associates •  Store Manager •  District Manager •  Executives •  LP, Merch, Specialists... •  etc.

Ideation Framework

Scenario Matrix – Ranking

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Building a Roadmap of Mobile Opportunities!

-  Impact to Core Metrics!-  Process Innovation!

-  Readiness!-  Level of Effort!

App Portfolio

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Scenarios à Groupings à Modules à Applications

Prioritization of Apps & Functionality!

Mobile strategy for consumers is just the beginning.

Propelics Kickstarts

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Propelics Special Offer

Free 1 Hour Mobile Advisory Call

[email protected] 888-405-2820

Mobile App Roadmap Kickstart

Mobile App Scoping & Planning

Mobile Center of

Excellence

Mobile App Rapid

Prototyping

IT Readiness for Mobile Kickstart

Prototype Factory

Thank you (Q&A)

@propelics

•  Innovation Focus

•  Engaging Process

•  Mobility Centric

•  Experience Across Industries

•  Enterprise Solutions

•  Advisors, Strategists, Implementers

•  Strategy at the Pace of Mobility