Credera Whitepaper - How to Craft a Winning Mobile Retail ...€¦ · How to Craft a Winning Mobile Retail Strategy. How to Craft a Winning ... Follow Up to Reengage Your Customers

The mobile retail world is growing

and evolving at a rapid pace.

Leaders who take the initiative to focus on three key areas of mobile

strategy will improve their

customers’ experience and increase revenue.

What is missing from your mobile

retail strategy?

WHITEPAPER

How to Craft a Winning Mobile Retail Strategy

How to Craft a Winning Mobile Retail Strategy

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“Physical stores are still the primary way people acquire merchandise, and we think that will be true 50 years from now.” This may have resonated when Ron Johnson, Apple’s former senior vice president for retail, said it in 2011, but the world of retail in 2018 is significantly different.1

Online sales surpassed in-store sales in each of the past two Black Friday weekends, and mobile’s share of those online sales continues to increase. According to the National Retail Federation, 63% of smartphone owners consulted their devices when making a purchasing decision during Black Friday in 2017, with 29% actually completing purchases on their mobile device.2 By 2020, mobile sales are expected to account for half of all digital sales, reaching more than $270 billion annually.3

Although there will likely always be a role for traditional brick-and-mortar retail, mobile is well positioned to shape the industry’s future and become a go-to customer-facing channel within the next five years. While this shift will not affect every retail business, the vast majority must prepare for a significant mobile presence.

So, how do you compete in mobile retail? We will answer that question by progressing through the typical mobile customer journey, including customer engagement, shopping and browsing, and closing the sale.

INTRODUCTION

CUSTOMER ENGAGEMENT

SHOPPING EXPERIENCE

CLOSING THE SALE

CONCLUSION

AUTHORS

WORKS CITED

Leverage the Power of Social Media Explore Affiliate MarketingDevelop Effective Direct Marketing CampaignsSynchronize Online and In-Store Experiences

Define the Desired Mobile Experience Design for Your Use Case Differentiate the Mobile Experience Emphasize Stability and Performance

Streamline the Buying Process Incentivize Completing the Sale Follow Up to Reengage Your Customers

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ABOUT US

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WHITEPAPER

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HOW TO CRAFT A WINNING MOBILE RETAIL STRATEGY 2

KEY POINTS

1. LEVERAGE THE POWER OF SOCIAL MEDIA

2. EXPLORE AFFILIATE MARKETING

3. DEVELOP EFFECTIVE DIRECT MARKETING CAMPAIGNS

4. SYNCHRONIZE ONLINE & IN-STORE EXPERIENCES

1. LEVERAGE THE POWER OF SOCIAL MEDIA

What is social media?

More than just a tool for looking up former classmates or getting the news, social media helps people, businesses, organizations, and the occasional spambot build relationships in a virtual space. Social media in 2019 is more than just Facebook and Twitter; Snapchat is now the primary messaging platform for many young Americans, and Instagram and Pinterest are emerging as powerful commerce engines.

Why is social media important?

Social media is ubiquitous (four in five Americans have a profile),4 millennial-driven (millennials spend six hours per week on it),5 and increasingly mobile (nearly 80% of social media time is spent on mobile).6

Social media is also a critical avenue for influencing purchases. User reviews, product photos, and influencer fashion statements all contribute to how consumers view your brand. Social media is impactful because it is personal—when a consumer sees your product, they are seeing it on a feed created just for them.

How can you use social media to drive mobile engagement?

Consumers are spread over a number of channels and networks, so take the time to understand where your customers spend their time on social media. If your customers look for trending fashions, then partner with influencers on Instagram. If your customers look at product reviews, then answer their customer service questions on Twitter or Facebook Messenger. If your customers look to shop, then promote your app with one-click downloads.

Nearly 80% of social media time is spent on mobile. 6

PART ONE: CUSTOMER ENGAGEMENT

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How can you use affiliate marketing to drive mobile engagement?

Before jumping headfirst into working with affiliates and influencers, you need to understand what group of new customers you are hoping to reach through a partnership. Once you choose your target market, identify influencers and affiliates already interacting with them. Often, the affiliates with the largest networks are leveraging social media, particularly through mobile devices. Pick someone you know and trust, and work together on a small, targeted campaign to jointly expand your spheres of influence. This will likely be a process of trial-and-error, but the opportunity to quickly expand your market reach should be more than enough incentive to begin.

2. EXPLORE AFFILIATE MARKETING

What is affiliate marketing?

Why is affiliate marketing important?

Affiliate marketing is the partnership between your organization and either affiliates or influencers to leverage their market reach. Affiliates are organizations such as blogs, online magazines, or complementary brands, while influencers are individuals such as celebrities, bloggers, or social media stars. Both affiliates and influencers have strong networks oriented around specific interests, including travel, fitness, and fashion.

Affiliate marketing is a great way to connect with customers who are similar to your current customer base but outside your existing reach. Partnering with relevant affiliates to create and promote content can enhance your credibility by identifying you with an established brand. Leveraging existing networks via affiliates and influencers can be faster and cheaper than identifying and contacting individual consumers in your target audience. For instance, Old Navy has partnered with several notable musicians, designers, and social media influencers to create campaigns linking their clothing to the most current fashion and pop culture trends.7

Partnering with relevant affiliates to create and promote content can enhance your credibility by identifying you with an established brand.

HOW TO CRAFT A WINNING MOBILE RETAIL STRATEGY


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3. DEVELOP EFFECTIVE DIRECT MARKETING CAMPAIGNS

What are direct campaigns?

Why are direct campaigns important?

Direct marketing campaigns are composed of messaging sent to specific consumers, often through email, text, or push notifications. Email is a well known, albeit overused, method of direct advertising, but text messaging and push notifications have been growing in popularity and acceptance over the last several years.

Email campaigns may seem outdated, but they consistently deliver a positive ROI for the vast majority of companies. Texting and push notifications allow nearly immediate access to consumers, as 90% of SMS are read within three minutes.8 If you have an app, push notifications also help keep customers engaged; eCommerce apps see engagement nearly tripled for customers with push notifications enabled.9 Whatever route you choose, direct campaigns are proven winners for engaging your customers.

How can you use direct campaigns to drive mobile engagement?

The key for marketers is to make sure you avoid the spam folder, instant deletion, or even worse, the dreaded “unsubscribe” button. Successful marketing emails are short, interesting, and punchy, from the subject line to the action item. Be sure to optimize email for all platforms, especially mobile. Nearly 9 in 10 people aged 18 to 30 read emails on mobile devices, and 75% of mobile users of all ages delete emails that do not display properly on mobile.10 If you have an app, thoughtfully plan your push notification strategy ahead of time. Consider utilizing rich notifications with embedded images or videos to increase open rates. When sending texts, require action from the customer, such as expiring deals or contests requiring a response to enter.

By 2020, 48.7 million consumers will opt in to receive business SMS8

48,654,480

47,029,249

44,566,089

41,293,702

37,167,944

2020

2019

2018

2017

2016



Consumers Opting In to Receive Business SMS

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4. SYNCHRONIZE ONLINE & IN-STORE EXPERIENCES

What is experience synchronization?

Experience synchronization is the coordination of digital and in-store experiences. This requires open collaboration between internal teams on promotions, offers, and aesthetics to create an integrated experience for the customer. Crate & Barrel is a leader in experience synchronization—recent innovations include the use of barcode scanning on mobile phones to facilitate in-store browsing and seamless crossover between all devices to encourage shopping on desktop and mobile.11

Why is experience synchronization important?

How can you use experience synchronization to drive mobile engagement?

The most successful brands strive to create holistic, omnichannel experiences that encourage customers to engage with the company’s brand through all channels, which keep the brand top of mind for the consumer. And customers are catching on to the trend; three in four now expect a consistent online and in-store shopping experience.12 Failing to meet this expectation leads to customer frustration and, ultimately, attrition.

First, ensure the aesthetics of your digital and physical experiences are in alignment. Failure to match simple elements like themes and colors is confusing for customers and reflects poorly on your brand. A good start to integrate digital and physical is to reward customers who use your digital platform while in your store with coupons or exclusive deals. Once you have the basics in place, stretch for more advanced features such as barcode/QR scanning or interactive store maps.

If you already have a strong mobile presence with your customer base, use these four tactics to evaluate the effectiveness of your current strategy and bring new customers to your mobile channels. If your business has yet to fully embrace mobile, now is a great time to start. Mobile capabilities are not just reserved for larger companies; small and mid-size companies with an impressive mobile presence are becoming more and more prevalent.

Here at Credera, we work with clients to craft exceptional mobile platforms and optimize eCommerce to engage customers and grow revenue. For example, Credera developed a mobile eCommerce application for Backcountry with a focus on integrating social media and connecting customers with sponsored athletes. Upon completion, the new platform generated three times the historical site traffic with a higher conversion rate.

Given the growth of mobile and how it is well positioned to shape the future of retail, now is the right time to grow your mobile footprint. Use this guide to expand your mobile reach.



The Crate & Barrel app lets users manage their registry right from their mobile device. 11

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KEY POINTS

1. DEFINE THE DESIRED MOBILE EXPERIENCE

2. DESIGN FOR YOUR USE CASE

3. DIFFERENTIATE THE MOBILE EXPERIENCE

4. EMPHASIZE STABILITY AND PERFORMANCE

As we discussed in the previous section, Customer Engagement, mobile is no longer the future for retailers, but the present. In many instances, a mobile retail presence is no longer a competitive advantage, it is simply standard. As customers increasingly expect an intuitive and engaging mobile experience, mobile design must be centered around the user from the beginning.

In this section, we explore four steps for designing and enhancing your mobile user experience. Although there is no one-size-fits-all solution, these steps provide a helpful starting point for evaluating your user experience. To illustrate each step, we will use the hypothetical ABC Company. ABC is a multi-location boutique retailer carrying the latest trends in children’s fashion, and they are preparing to design a new mobile experience.

1. DEFINE THE DESIRED MOBILE EXPERIENCE

Key Considerations:

Designing your mobile experience starts and ends with your customers. Who are your customers? How old are they? Do they prefer to shop in-store or online? Do they own smartphones, and if so, do they use Android or iOS? Do they download apps or prefer mobile browsers? How do your top spenders prefer to interact with your brand? Questions like these can help you define your specific mobile use case and design an experience that helps users seamlessly navigate it. An additional consideration could be segmenting your customer base to identify top spenders and what their preferences are.

ABC Example:

Before ABC begins the mobile experience design process, it must understand its target consumer. The majority of ABC’s clothing fits children between the ages of 3-10, but their primary customers are parents between the ages of 25-45, 96% of whom own a smartphone.13 This customer base is unlikely to download an app for occasional shopping, but they make decisions based on what they see in gift guides or on influencer Instagram accounts (see Customer Engagement section).14 These parents will come into the store, but they often want to shop online for their kids. Based on these factors, ABC’s use case calls for a mobile website rather than an app, with real-time inventory integration so parents can browse online and buy in the store.

Key Takeaway: Determine exactly what your customers want from a mobile experience and tailor every aspect to them.


PART TWO: SHOPPING EXPERIENCE

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Key Considerations:

Next, you need to pick which features are the most important. Start with a list of all the features you might want to include and prioritize them based on a set of criteria such as cost, complexity, and customer impact. If you do not know how to start developing and prioritizing features, consider using a design sprint to quickly ideate and create a prototype.15 The most important features to build will be those needed to complete the primary use cases and realize the desired experience. For instance, if the most important activity is buying clearance items, then sale notifications and shopping cart features will be critical. Any features not included in the primary use case should be added to a backlog for future iterations.

ABC Example:

ABC knows its customers will split their time roughly in half between desktop and mobile, so they need to cater to both parties.16 ABC’s customers are concerned with the overall look and style of the clothing, so they create an image heavy experience by minimizing text and enlarging pictures. ABC emphasizes a painless browsing process, so they leave plenty of white space between products to facilitate scrolling and avoid accidental clicks.17 It is important for ABC’s customers to have an accurate picture of what they can order online or find in stores, so the website needs to be integrated with ABC’s current inventory management system. And although barcode scanning is not a core feature, ABC places it at the top of the backlog for future releases since it provides continuity between the in-store and mobile experiences.

2. DESIGN FOR YOUR USE CASE



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Key Considerations:

ABC Example:

3. DIFFERENTIATE THE MOBILE EXPERIENCE

Most retailers have a mobile website, so it is important to identify ways to differentiate your mobile experience from everyone else. Mobile-specific capabilities and tools provide effective means of differentiation. Are you taking advantage of phone-specific user interface capabilities such as gestures, shaking, or squeezing? Do you utilize location services or beacons? Is your mobile channel integrated with your in-store experience? Work to differentiate the service experience, not just the mobile experience. Think about which features cause users the most confusion or frustration and seek to minimize them. Prioritize the development of features providing a personalized customer experience, such as user profiles or a customer loyalty program, and work to differentiate the service experience as a whole.18

ABC is just starting to develop its mobile platform, so it saves advanced gestures for the next iteration. By adding a store map with location services and inventory integration, customers can see where they are in the store and where to find a specific item. Because browsing can be frustrating on a mobile device, ABC ensures hitting the back button will place customers at their previous place on each page. And to differentiate the overall service experience, customers who order online for in-store pickup do not have to wait in line.



ABC Example:

4. EMPHASIZE STABILITY AND PERFORMANCE

Although customers are interested in advanced features on mobile websites, their basic expectation is for mobile websites to work and load quickly every time. Roughly half of consumers expect pages to load in two seconds or less, and 40% of users will abandon a page taking more than three seconds to load.19 A single mistake can be costly; more than 75% of customers are less likely to return to a site if they had previous issues with load speed.19

ABC knows how important it is to build a robust, reliable website. By taking into account planned growth into new markets and the flexibility provided through cloud services, they develop a platform capable of meeting their needs, even during the peak traffic of next year’s Black Friday sale. Their flexible infrastructure minimizes cost while maintaining peak performance at all times. While these four steps and the representative examples only scratch the surface, we hope they enable you to design a more effective mobile experience that matches what your customers need and want. Delight your customers with a seamless user experience and watch site traffic and sales increase.

Although a seamless user experience is vital, it is only as good as your ability to close the sale.

Key Considerations:

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KEY POINTS

1. STREAMLINE THE BUYING PROCESS

2. INCENTIVIZE COMPLETING THE SALE

3. FOLLOW UP TO REENGAGE YOUR CUSTOMERS

We all have examples of times we added an item to our online shopping cart, but never tapped the all-important “buy” button. As a retailer, revenue is dependent on the number of items purchased, not those that simply make it into the cart.

With that in mind, retailers must consider ways to reduce any friction a customer might experience during checkout. Retailers have to address shopping cart abandonment. The difficult part of the mobile shopping experience should be getting customers to make the decision to buy, not getting them to enter their payment information.

In this section, Closing the Sale, we offer perspectives on how to become more effective at closing the sale and increasing your conversion rate. We see three primary tactics to optimize your checkout experience and generate additional revenue: streamline, incentivize, and reengage.


PART THREE: CLOSING THE SALE

Imagine walking into your local sporting goods store. You have been thinking about buying a new pair of running shoes for a while, but you have not decided which ones yet. You walk inside, ready to pick and buy your shoes, but you see the checkout line wraps around the corner and out of sight. What do you do? More than likely, you turn around and go buy your shoes somewhere else. When your mobile payment process is clunky or time-consuming, it might as well be a checkout line wrapping around the entire store. Reducing friction in the checkout process is effectively the same as shortening the checkout line.

Having five unique pages in the checkout process is a barrier for your customers, but features such as one-click ordering and easy guest checkout help remove these barriers. An efficient guest checkout experience is essential for mobile retail. More than 60% of mobile users choose guest checkout, and more than 25% will leave items in their cart if registration is required.20 Also consider supporting alternative payment methods (e.g., PayPal, Apple Pay, Visa Checkout, Google Pay, etc.), as these now account for more than 20% of smartphone purchases.21

The most obvious way to streamline the checkout process is to reduce the time it takes a customer to checkout. More than 25% of customers in the U.S. abandon an order because of a complicated or time-consuming checkout process.22 One effective way to simplify checkout is to auto populate information into required fields. Each point of friction you remove represents more purchases and a better experience.

When your mobile payment process is clunky or time consuming, it might as well be a checkout line wrapping around the entire store.

1. STREAMLINE THE BUYING PROCESS

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Maybe your payment and checkout process is fast and easy, but customers still abandon their cart just before they click “buy.” Sometimes we all need an extra nudge to get across the finish line. Incentivize customers to complete the purchase with flash sales and shipping discounts to provide that extra nudge.

Everyone loves a good deal. When you get a bargain on something, you brag to your friends (or really anyone who will listen) about what an amazing shopper you are. Increase the attractiveness of a sale by placing a specific time box on the sale to add a sense of urgency. Amazon does a great job recommending deals personalized to each customer, and each deal has a live countdown of time remaining or the limited quantity of items still available for purchase. The fear of missing out on a deal or product could be the extra motivation your customer needs to complete that purchase.

2. INCENTIVIZE COMPLETING THE SALE



Shipping is another key for completing the sale and avoiding shopping cart abandonment. In fact, more than 90% of people say free shipping is the top incentive for them to shop online more, and nearly 70% say free returns would encourage them to buy online.23

Although no small business can compete with larger companies like Amazon and Walmart in offering cheap shipping, they can still create innovative shipping solutions to satisfy customers. In some cases, shipping can even be used to increase order value. For instance, free shipping thresholds influence 90% of customers to add more products to their order to qualify for the minimum.24

1111HOW TO CRAFT A WINNING MOBILE RETAIL STRATEGY


3. FOLLOW UP TO REENGAGE YOUR CUSTOMERS

Once a customer buys your product, your next goal is to get them to buy again as quickly as possible. While some remarketing efforts can come across as pushy, staying top of mind is key for creating repeat customers. Here are a few tips to stay in touch with your customers.

Push notifications and emails are one of the most effective means of reaching your target market, but must be used in moderation to avoid becoming a nuisance. Similar to the direct marketing campaigns we discussed in the first section of this whitepaper, Customer Engagement, it is important to stay in direct contact with your customers. Use past purchases and browsing behavior to create offers on similar or complementary products. After all, 59% of customers say they want to receive personalized offers from retailers.25

Mobile shoppers are frequently on the go and can be easily distracted by the outside world. Keep your products at the forefront of a customer’s mind by remarketing items abandoned in their cart, occasionally throwing in a discount. One word of caution: Consumers are smart, and they will learn to abandon their cart if they can count on you sending them a discount. Mixing up your approach will surprise and delight your customers while preventing them from taking advantage of your marketing tactics.

Finding ways to reward your top shoppers through loyalty programs secures their ongoing allegiance to your brand. Small gestures of appreciation can reward you with a higher customer lifetime value. The best loyalty programs are straightforward (buy nine and the 10th is free) and extremely difficult to cheat (no punchcards). Consider using a customer’s phone number as their unique ID, or partner with a service such as LoopyLoyalty for an inexpensive but sharp loyalty experience. Loyalty programs will drive repeat visits from your best customers and increase spending across the board.

Three Steps to Closing the Sale

CONCLUSION

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The mobile retail world is growing and evolving at a rapid pace, which is both exciting and challenging. Although mobile retail can be intimidating, we hope this whitepaper has given you some practical ideas to get started. Whether you are brand new to incorporating mobile or an old pro, these concepts can help you mature and expand your mobile presence.

Finding ways to establish relationships with customers is different than it was a few decades ago, but there are actually more opportunities to establish meaningful connections, not fewer. The customer journey is a continuous cycle of engagement, experience, and conversion. Take the initiative to be active in all three aspects, and we bet you will see the results.

KEY TAKEAWAYSPUTTING IT ALL TOGETHER

1. CUSTOMER ENGAGEMENT

• Leverage the power of social media

• Explore affiliate marketing• Develop effective direct marketing campaigns • Synchronize online & in-store experiences

2. SHOPPING EXPERIENCE

• Define the desired mobile experience • Design for your use case• Differentiate the mobile experience

• Emphasize stability & performance

3. CLOSING THE SALE

• Streamline the buying process• Incentivize completing the sale

• Follow up to reengage your customers

Let’s talk about how we can help improve your mobile conversion rate today.Email us at [email protected] or call us at 972.692.0010.



WORKS CITED

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thanksgiving-holiday.

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Mind.” Salesforce, 1 May 2017,

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customer-experience-stats.html.


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ABOUT THE AUTHORS

KEVIN ERICKSON | PARTNER

NATHAN SHAUB | CONSULTANT

ALYSSA GROSS | SENIOR CONSULTANT

JACOB BAYNHAM | CONSULTANT

GRACE LEE | CONSULTANT

BEN GROTTA | SENIOR CONSULTANT

Kevin is a Partner and Vice President at Crederaand leads the Management Consulting practice. He has more than 15 years of management, operations, and technology consulting experience, working with Fortune 500 and mid-market clients across numerous industries. Kevin received his BA in Accounting & Business Administration from Taylor University and his MBA from The University of Chicago Booth School of Business.

Nathan is a Consultant at Credera in the Management Consulting practice. As a Business Analyst, he has worked heavily in strategic planning, focusing on yearly planning, loyalty management, and technology. He graduated Summa Cum Laude from Texas A&M University in 2016 with a BBA in Business Honors and Supply Chain Management.

Alyssa is a Senior Consultant in Credera’sManagement Consulting practice in Dallas, TX. Her most recent focus has been on the evolution of the retail industry with experience in 1:1 marketing strategy for omnichannel retail. Alyssa graduated from Texas Christian University with a BBA in Supply Chain Management and a degree emphasis in Leadership.

Ben is a Senior Consultant at Credera in the Management Consulting practice. During his time at Credera, Ben has primarily served as a digital analyst, partnering with clients to create valuable, personalized experiences across customer-facing channels. Ben holds a BS in Public Relations from the Moody College of Communication at the University of Texas.

Jacob Baynham is a Consultant in the Management Consulting Practice at Credera. He graduated Magna Cum Laude from Texas A&M University with a BS in Petroleum Engineering and a minor in Business Administration. He has specialized in Product Strategy, Product Design Innovation, and Process Improvement projects.

Grace Lee is a Consultant in Credera’sManagement Consulting Practice. During her time at Credera, Grace has served primarily as a Business Analyst, with a focus on requirements gathering and process definition. Her areas of interest include brand strategy, market research, and customer experience. Grace graduated Summa Cum Laude from Baylor University with a BBA in Marketing.



ABOUT US

Founded in 1999, Credera is a full-service management consulting, user experience design, and technology solutions firm. We currently have office locations in Dallas (headquarters), Houston, and Denver.

WHO WE’VE WORKED WITH

OUR SERVICE AREAS

STRATEGY & OPERATIONS ANALYTICS & INSIGHTSCUSTOMER ENGAGEMENT

& COMMERCE

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DEVELOPMENTWORKPLACE MODERNIZATION

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Our business-driven approach helps clients attack

market-share, increase customer engagement, gain

efficiencies and grow revenue profitability

We help clients accelerate software delivery to meet the

demands of the digital economy, providing deep technical and operational

expertise across a wide breadth of technologies and

platforms

We define strategies to better reach customers,

and deliver high-end, high scalable, flexible

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Whether a quick workshop or establishing and acting as your innovation lab, we

can help you move innovation forward in your

organization

Our mobile first, user-centric approach drives

strategic implementations of thoughtful design; APIs,

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delivery and enable great application experiences

We work alongside clients to identify and implement

winning strategies, aligning resources and

technology to fulfill their overall vision and mission

We help clients compete and win, transforming

organizations to improve innovation,

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WE KEEP OUR PROMISESOur clients hire us to own their toughest challenges. They retain us because we keep our promises.

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Credera Whitepaper - How to Craft a Winning Mobile Retail ...€¦ · How to Craft a Winning Mobile Retail Strategy. How to Craft a Winning ... Follow Up to Reengage Your Customers