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Integrated Experiences & the Mobile Shopper: A Research Report @David_Rogers Author Faculty Director, Digital Marketing Strategy Columbia Business School www.davidrogers.biz

Showrooming and the Mobile Assisted Shopper

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I am delighted to release the results of a new global study on the impact of smartphones on shopper behavior in retail stores — “Showrooming and the Rise of the Mobile-Assisted Shopper." — sponsored by Columbia Business School's Center on Global Brand Leadership and loyalty firm Aimia. (Findings reported in BusinessWeek, Time, Inc., The Globe and Mail, Quartz, GigaOm, and IBM Smarter Planet, among many others.) As brick-and mortar stores continue to struggle with the rise of “showrooming” consumers – those visiting a store to see a product, but purchasing it later online – our research reveals concrete steps that retailers can take to entice consumers armed with mobile devices to make purchases inside their store walls. With my co-authors, Matthew Quint and Rick Ferguson, we were able to survey the behaviors and motivations of 3,000 leading-edge consumers in 3 countries, who represent the “omni-channel” future of retail. Our findings contradict many of the common assumptions about the threat of “showrooming”, and reveal five distinct segments of mobile-assisted shoppers. We also identify clear opportunities for retailers to engage and retain these tech-savvy customers. David Rogers -- @David_Rogers Author, “The Network Is Your Customer” Executive director, BRITE conference Faculty director, Digital Marketing Strategy, Executive Education Columbia Business School [email protected] www.davidrogers.biz

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Page 1: Showrooming and the Mobile Assisted Shopper

Integrated Experiences &the Mobile Shopper: A Research Report

@David_RogersAuthorFaculty Director, Digital Marketing StrategyColumbia Business School

www.davidrogers.biz

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@David_Rogers

Books & Publications

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Some companies worked with

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Mobile computing

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• Surveyed 3,000 shoppers

• US, UK, Canada

• All use mobile devices in-store to aid shopping

• Survey fielded Q4, 2012

Global survey of “mobile-assisted shoppers”

METHODOLOGY

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HOW MANYMOBILE-ASSISTED

SHOPPERS ARE THERE?

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M-SHOPPERS AS % OF ALL CONSUMERS

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WHO ARETHE MOBILE-ASSISTED

SHOPPERS?

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26%<30 YRS OLD

MOSTLY NOT MILLENIALS

“Millenials”

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26%30-39 YRS OLD

6%65+ YRS OLD

20%50-64 YRS OLD

22%40-49 YRS OLD

AGE DISTRIBUTION OF M-SHOPPERS

26%<30 YRS OLD

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WHAT ARE THEYREALLY DOINGIN THE AISLES?

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INFO ANDREVIEWS

CALL/TEXT A FRIEND OR FAMILY MEMBER

PRICE CHECKING

WHAT DO M-SHOPPERS RESEARCH IN-STORE?

Regularly (Top 3) Occasionally Almost Never

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NICHE BEHAVIORS, TOO

HAVE YOU EVER DONE THE FOLLOWING WITH YOUR SMARTPHONE WITHIN A STORE?

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NOT JUST COMPETITOR WEBSITES

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SO, ARE ALL M-SHOPPERS “SHOWROOMING”?

30% 45%25%“On the fence” – may opt to buy in-store despite cheaper online

Yes - require price discounts to deter showrooming

Never – always buy in-store once there

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WHY SHOWROOM VS.NOT

SHOWROOM?

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REASONS FOR SHOWROOMING

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REASONS FOR SHOWROOMING

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REASONS NOT TO SHOWROOM

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REASONS NOT TO SHOWROOM

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5 TYPES OF MOBILE-ASSISTED

SHOPPERS

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“Premeditated about lower prices”

1.7x more likely than other M-shoppers to showroom because of online loyalty rewards

58% will showroom for free shipping

EXPLOITERS – 6.1%

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“Calculating, but persuadable”

1.3x more likely than other M-shoppers to compare prices in-store

45% have scanned a QR or bar code in-store

SAVVYS – 12.6%

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“Don’t plan, but always opt for deals”

76% can be swayed to purchase in-store with a price-matching offer

68% can be swayed to purchase in-store with a reward points offer

PRICE-SENSITIVES – 19.4%

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EXPERIENCE-SEEKERS – 31.7%

“Value the best experience, not just price”

are motivated to purchase in-store by exclusive store events

1.2xmore likely than other M-shoppers to contribute an idea to the store

43%

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TRADITIONALISTS – 30.2%

“Prefer the in-store shopping experience”

100% have not showroomed in the past 12 months

1.8x more likely than other M-shoppers to prefer shopping locally

Showrooming?

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5 STRATEGIESFOR RETAILERS

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1. VARIETY OF DISCOUNTS

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Various offers that excite M-shoppers

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2. CONVENIENCE (Omni-Channel)

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Convenience makes in-store purchase more likely

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3. THE RIGHT INFORMATION

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Information makes in-store purchase more likely

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4. SOCIAL ENGAGEMENT

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M-shoppers will engage with stores in #social

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5. LOYALTY PROGRAMS

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Current & future influence of loyalty programs

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Thank you!

[email protected]

Email me to:

• Receive full report

• Hear about future research & events