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elcome to Power Retail’s Report

M-Commerce: Retailing On the Move.

The mobile device is perhaps the most powerful

symbol of the era of agile commerce. Devices such

as smartphones and tablets are highly personal,

always-on and deeply social, finding a deep

resonance with the cross-channel customer. This explosion of mobile

commerce is far from theoretical. Earlier this year, PayPal Australia’s

MCommerce: Secure Insight Report predicted that smartphone

penetration would reach 100% in two years that total mobile payments

volume 2010 increased 14 fold to reach $42 million. It expects to exceed

this figure in 2011. Mobile technologies such as QR codes, GPS and

context-aware service offer ample opportunities for innovation and

personalisation and are set to drive m-commerce into the future.

This report explores the current m-commerce climate and tackles the

key predicaments faced by retailers while building a mobile strategy that

works. It brings together case studies, expert insights and analysis to help

you use mobile commerce to connect with your customers and grow your

business.

We’d like to thank our industry sponsors and contributors who have

provided best practice advice and commentary into this fast-growing

aspect of online retail.

Neha KaleBusiness Writer

Power Retail

CONTENTS

Moving Towards a Mobile Future 4

Converting Shoppers on the Move 7

Comparing PPC Performance Rates: iPhone Versus Android 8

Sponsor Q&A 9

Innovator Spotlight: Gilt Groupe 10

M-Commerce Gallery 12

Solution Providers 19

FOREWORD & EXECUTIVE SUMMARY

W

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Moving Towards a Mobile Future

n the past few years, technological evolution has given rise to a

landscape that is based not on single retail channels, but on a prolif-

eration of touch points. At the heart of this environment is the new

‘connected customer’, – agile, mobile and prone to swinging seam-

lessly between devices. The mobile phone, or specifically, the smartphone

has played a critical role in this new retail paradigm. In Welcome To The Era

of Agile Commerce, a March 2011 report by Forrester Research, Brian Walker

describes the way this new paradigm has transformed customer behaviour:

“Customers now use a rapidly evolving set of devices as a means of en-

gaging across touch points, which they don’t distinguish from the brand

or business. Customers are empowered with more information than ever

before. As businesses still struggle to deliver cross-channel experiences,

the stream of innovation and market transformation continues to flow

unchecked.”

With its ability to tie together different channels and cater to customers

on the go, the mobile device is the most powerful symbol of agile commerce

– and one widely embraced by customers. Across the world, consumers are

using their iPhones to shop for clothes, accessing product reviews via their

Androids, browsing product catalogues with their tablets and paying for

goods with their Blackberries. Once a sidebar to online retail, mobile com-

merce is now an integral and fast-growing part of customer’s lives.

Earlier this year, PayPal’s MCommerce: Secure Insight Report outlined the

startling growth trajectory of Australian mobile commerce and offered vital

cues for retailers about shaping a mobile strategy. The report found that in

the last year alone, PayPal Australia’s Total Payment Volume grew 14-fold

to reached $42 million in October 2010. It also predicted that smartphone

adoption rate was set to reach 100 percent in the next two years, increasing

the call to action for an effective mobile strategy.

For Frerk-Malte Feller, Managing Director at PayPal Australia, these

findings highlight the need for an innovative and scalable mobile strategy.

“Advances in technologies and changing consumer behaviours are creating

a melting pot of innovation in retail – particularly when it comes to mobile

payments. The explosion of smart phones is changing the way we behave

and interact and is rapidly breaking down barriers between on and offline,”

he says.

“The staggering uptake in mobile payments shows a real consumer desire

for the way they shop and pay to catch up with the way we live. Every day

people are becoming more familiar with buying things on their mobile

phones.”

Feller urges retailers to take advantage of the unique capabilities offered

by mobile devices and use these to shape a compelling and innovative

mobile presence.

“Our retailers are telling us every day that an increasing number of their

customers are visiting their websites via their mobiles. Your customers

are already using mobile as a channel so you must be too. The first piece

of advice I would give would be to focus and innovate – the mobile device

has different capabilities to the PC, and these should be taken advantage

of. Retailers should not just be looking to develop a scaled down version of

their website,” he continued.

Although aspects such as screen size may seem limiting, the mobile device

offers a range of benefits. The mobile is highly personal, always connected

to the Internet and is single click optimised – a factor that makes for a fast

and user-focused shopping experience. Mobile apps can also function in

offline mode, be customised to leverage device capabilities, and drive brand

awareness.

I

WORDS: Neha Kale

“The staggering uptake in mobile payments shows a real consumer desire for the way they shop and pay to catch up with the way we live. Every day people are becoming more familiar with buying things on their mobile phones.” Frerk-Malte Feller, Managing Director, PayPal










According to Lucas Challamel, Netbiscuit’s Senior Sales Manager, Austra-

lia and New Zealand, “an app-only strategy is very risky if retailers want to

reach a broad audience.” He says that while mobile sites are destinations,

which can be visited and searched for, native apps can easily get lost in the

marketplace or App Store.

Challamel suggests that for a customer-centric mobile strategy, mobile

apps and mobile websites should co-exist, as they offer customers separate

benefits. He cites eBay as providing an excellent example of a mobile strat-

egy that makes use of the capacities of each.

“eBay use both apps as well as the mobile web to offer different points of

entry for their customers. Even though the company is proactively diverting

traffic to apps, the mobile web revenue growth is increasing at the same pace

as the mobile app business. From their perspective as a retailer, it is therefore

important to have a mobile strategy that includes both mobile sites and

apps,” he offers.

Matt Hampshire, Managing Director of Contiigo echoes the view that

retailers should use both apps and websites to address customers.

“I believe there is a role for both. Applications can typically provide more

native and immersive experiences utilising more of the features of the device

They can encourage loyalty, as their presence on the customer’s device screen

can act as a reminder of the relationship the customer has with your brand.”

Hampshire identifies that mobile websites are more cost-effective than

apps and can better leverage features such as location-based technology.

“A mobile website is a critical requirement for every retailer. You must be

able to instantly satisfy a client that’s just heard about you or a promotion

you have going, allowing them to view and purchase and ideally if they are

near a store, to pick up straight away. Mobile websites are typically cheaper

and increasingly they are able to utilise more of the phone’s native features

such as GPS,” he elucidates.

For Challamel, location-based and context aware services have become a

major driver of mobile revenues and will play a more significant role in the

future of mobile commerce.

“These services enable retailers to reach out to the consumers with cus-

tomised and highly targeted product offerings. The integration of mobile

barcodes, mobile couponing, location search and in-store comparison

features on top of the aforementioned services are directing consumers to

the point of sale and contribute directly to revenue growth.”

Steve Timpson, President of Siteminis says that before retailers address

the apps versus mobile website question or work out which features of

mobile to deploy, they should “determine an overall strategy for entering

the mobile space.”

He offers the mobile strategy pyramid as a blueprint for retailers looking

to make their first foray into mobile.

“The pyramid gives the progression of the building blocks to canvas the

mobile space for the greatest impact. As with any strategy, a client must

evaluate use cases and internal resources for effectiveness. In many cases,

outsourcing elements is much more effective for speed to market than inter-

nal development. It is key to recognise that all of the layers of the pyramid

work together- mobile is not a standalone vertical.” n

FOCUS ON TABLET COMMERCESteve Timpson President of Siteminis tells us why tablets will play

an increasingly important role in mobile commerce.

The tablet so far has been fitting into a niche of ‘lean back’

usage, taking up user access in what in the past had been

‘negative dwell time’ - the time one spends sitting on the couch or

in the bedroom watching TV.

In many cases, consumers are watching TV, using a tablet and

using their mobile phone. The challenge is developing meaningful

use cases for a company that takes into account the native

operating system as well as the variety of screen sizes. The space

will only get more fragmented in the next several years.

Tablets excel in the use of video and that will be where much

of the bandwidth usage will come for tablet users, making this

device a target rich environment for marketing

Each mobile devices plays a specific role in the mobile

ecosystem and engage consumers in highly personal ways.

The more agile a company is at creating methods of allowing

consumers to choose how they, individually transact with a

brand the better that company is at outpacing their competition.

Powerfront ™


Mobile Commerce Snapshot

$155MILLION

The value of the Australian m-commerce market in 2010

Android

36%Apple iOS

26%Blackberry

23%

SymbianWindows

Palm

15%

SmartphoneUsage

50% of online Australians have accessed the internet

from their mobile phone in the past year

In 2010, PayPal Australia’s total mobile payments

volume grew 14 fold to reach $42 million

One in ten Australian customers shop from their

mobile phone

The global m-commerce market will be worth $US23.8

billion in 2015

51% = The compound yearly growth of tablet device

ownership between 2010 and 2015

50%

51%2010-

2015

6M-COMMERCE 2.0



Converting Shoppers on the Move: Best Practice On-Site Search for M-Commerce

ccording to Nielsen, ‘one in ten Australian online shoppers use

their mobile device to make a purchase.’ Due to this rapid

ascension of mobile commerce within the local landscape,

offering an optimised and easy to use mobile website or

application has become paramount to ensuring success

within this channel.

The screens of smartphone devices such as the iPhone, Android or

BlackBerry are simply too small to provide a user-friendly experience

when accessing standard web-based sites. Therefore, the first m-

commerce must is to build a site or application that specifically takes into

account these physical constraints.

Retailers also need to take into consideration the intention and needs

of a customer who accesses information through a mobile device. Nielsen

research has found that the peak times for mobile purchases were during

transit (on the bus or train), at lunch or at home after dinner , suggesting

that convenience and perhaps a touch of ‘filling out a spare moment’ is

perpetuating mobile browsing and transactions.

Drastically reduced screen real estate and typing functionality, coupled

with the varying data speeds from mobile providers can hinder mobile

browsing activity, making on-site search a critical element for providing

an efficient, optimised m-commerce experience.

Without fast and relevant on-site search, retailers will struggle to create

an m-commerce experience that encourages visitors to purchase. Consumers

will also struggle to quickly find what they want on a mobile site that doesn’t

offer easy searching capabilities, and will abandon their search (and the

eventual purchase). It’s a vital part of the mobile web-browsing experience.

In order to enhance the on-site search for your mobile applications

retailers should keep in mind the following best practice tips:

1. Consider giving the search box prominent placement on a

mobile site. Whether you choose a browser-based or app-based

mobile site, the search box should be even more prominent than the

placement on your standard website, preferably located at the top of

the page. This is crucial because the search box enables users to find

the product they are looking for faster, leading to quicker conversions.

2. Ensure search results are relevant. Scrolling through pages of

results or clicking on refinement options requires more time for

additional page loads. If the results are relevant and display the infor-

mation customers are looking for on the first page of results, this will

eliminate the need for scrolling and enhance the user experience.

3. List the most popular items first. The odds are good that when a

customer conducts a search on a mobile device, they are looking for

a product that others have successfully searched for. Push the most

popular results for a given search term to the top of the list, so that

customers can complete searches faster.

4. Offer results for synonyms. Accounting for synonyms is also a

good idea, so visitors don’t have to type in a new term. In case shoppers

aren’t sure of an exact product term, it helps to offer a link to results for

similar keywords. Links to similar results help shoppers avoid having

to type in additional search terms, and speed the way towards purchase.

5. Include ‘sort-by’ options at the bottom of the results page.

Showing the options to sort by price, brand or popularity should be

moved to the bottom of the page, in order to prevent pushing too many

results below the fold. You can also give users the option of refining

their search via a single click expandable link, which means the refine-

ment options don’t take up screen real estate until they’re clicked on.

6. Include easy access to product ratings and reviews. One use of

the mobile shopping site is to access product ratings and reviews while

shopping in-store. User reviews can be the best way to give visitors the

detail they need to make a purchasing decision, so it is important to

include them in your mobile site. For example, Motorcycle Superstore

includes star ratings for their products in the search results pages.

7. Make it possible for customers to ‘check availability’ at local

stores from on-site search results. Provide this as a link so that

customers can enter their postcode and see what nearby locations

might have the item in stock. You can take it a step further and allow

them to place the item on hold, to be picked up at a later time. n

i PayPal, ‘mCommerce Secure Insight’, March 2011, Australiaii PayPal, ‘mCommerce Secure Insight’, March 2011, Australia

AWORDS: Mark Brixton, Country Manager, SLI Systems Australia

Bio: Mark Brixton is the Country Manager for SLI Systems in Australia.

Mark’s previous roles have included working for Australian online

directory company Sensis, one of the largest providers of online media

in Australia; as an affiliate manager for Kiwi Gaming; and, most

recently, as a sales manager for APN.

About SLI Systems

SLI Systems provides full-service, customised, on-demand solutions

for site-search, navigation, merchandising, and user-generated SEO.

SLI Systems’ solutions empower businesses to enhance customer

satisfaction while increasing sales, reducing costs and increasing site

conversions. Unlike traditional search and merchandising software,

SLI Systems’ patented technology continuously “learns” from the

behaviour of visitors over time to deliver more relevant results. SLI

Systems is a privately held company with offices in San Jose, California;

London; New Zealand and Australia. For more information, visit www.

sli-systems.com.au , or read the company’s blog at http://blog.sli-

systems.com, watch the SLI YouTube Channel at http://www.youtube.

com/user/SLISiteSearch, follow SLI on Twitter at http://twitter.com/

slisystems or listen to SLI hosted ecommerce podcasts at http://www.

ecommercepodcast.com.



Comparing PPC Performance Rates - iPhone Versus Android

he rise of the smartphone can create uncertainty for mobile

marketers who often grapple with the best way to target

each platform. A recent experiment by e-channel Search

offers surprising insights into the mobile marketing co-

nundrum.

The era of the smartphone is definitely upon us with a 2011 IDC study

reporting that 46 percent of all Australians own a smartphone. Of those:

• 40 percent are iPhones

• 30 percent Androids,

• 22 percent Symbian phones (including Nokia)

Australian smartphone ownership has increased 25 percent in the

last 12 months, and Telstra predicts it will reach 60 percent by year-end.

With smartphone ownership on the rise, mobile marketing is becoming

increasingly important for online business growth.

Business analysts at IBISWorld predict mobile shopping will grow by

50 percent in 2011/2012, with 50 million in purchases predicted. An-

droid smartphone ownership popularity is soaring, and could potentially

override iPhone ownership in 2011. iPhone won’t take the competition

lying down and is set to challenge the growth of Android with the release

of the iPhone 5 in September this year.

PPC SHOWDOWN – IPHONE VERSUS ANDROID

Wanting to delve deeper into the iPhone versus Android competitive

landscape, e-channel Search investigated which device performed bet-

ter for mobile pay-per-click (PPC) marketing. The aim of the study was

to understand the users of both platforms, in terms of interaction, web

browsing, search and buying behaviour.

To investigate further, e-channel examined the mobile search market-

ing results for a major group buying site and a media company offering

news and information about the Australian Football League (AFL).

KEY TAKEWAYS

This study highlights the importance of considering the demographics of

your target market before undertaking mobile paid search campaign. Al-

though differential response rates between platforms are useful, what should

be of even greater importance is the total, or aggregate level of response.

As the use of smartphones continues to grow, and customer bases evolve, these

response rates are also likely to change and normalise. Therefore, the answer is

in the data, which smart marketers will always leverage to their advantage.

Retailers should also make use of the advanced functions in Google Ad-

words, such as the ability to target specific carriers. This experiment proved

that mobile search marketing should not just be targeted at iPhone users

just because they buy more and claim a larger ownership base.

There are significant opportunities to be gained from having a deep

understanding of the interaction between the product category being

advertised, the smartphone platform, and the differences in how users

are searching. n

T STUDY 1: USER BEHAVIOURThe first stage of the study analysed Android versus iPhone user behaviour towards group buying site ads, over a four-day period. The results shown in the table below:Phone Display of Ads (Impressions) Clicks on Ad CTRAndroid 2313 40 1.73%iPhone 15851 404 2.55%

The iPhone mobile marketing campaign proved to be a much greater success – the level of impressions for iPhone users was generally much higher as was the CTR. The iPhone owner’s conversion rate was also almost 20 times greater than the Android’s.

STUDY 2: DEMOGRAPHICSThe study then examined the demographic profiles of smartphone users and the demographics of buyers purchasing from group buying sites.

According to Groupon, 77 percent of group buying customers are female with the main demographic comprising women aged 18 to 34. The higher response rate by women purchasing on iPhone could be attributed to the fact that more group buying deals are marketed at woman and are designed to appeal to female iPhone owners.

The demographic profile of the Android customer base is largely made up of men with women accounting for only 27 percent of total users. The iPhone offers a more even split with females comprising 43 percent of users.

A second analysis was conducted within a more traditionally male-oriented product category - AFL. The results of which are shown in the following table: Phone Display of Ads (Impressions) Clicks on Ad CTRAndroid 7589 689 9.08%iPhone 30973 2668 8.61%

Although conversion rates and CTR switch with content that appeals to different demographic groups, there is still a five-fold difference in impressions for iPhone users compared to Android.

The experiments highlighted a significant disparity in search volumes between platforms. A possibility is that Android users just aren’t as ‘search happy’ as iPhone users, and/or that Android users are on smaller data plans than iPhone users who are more willing to use their phone for browsing, searching and ultimately shopping online.



Q& A with

MICHAEL BROWITTBusiness Development Director, Powerfront

1MOBILE COMMERCE IS BOUND FOR 68%

GROWTH IN 2011. WHAT DO YOU PREDICT

THE KEY SHIFTS WILL BE IN THE NEXT 12

MONTHS FOR MOBILE COMMERCE?

I think that in the next twelve months,

retailers will start to open up their eyes to

the opportunities in mobile. More and more

consumers are moving online and using

smartphones and retailers are in a position

to benefit from this. Australian retailers are

starting to realise that the best opportunity to

reach customers in Australia is via mobile.

2WHAT ARE THE ADVANTAGES OF

DEVELOPING A MOBILE APPLICATION

AS OPPOSED TO A MOBILE WEBSITE?

The easiest way to work out whether you

should develop a mobile app as opposed to a

mobile website is to consider how many people

you have in your database and how many of

those use iPhones and Androids. This is the

most effective way to determine whether you

should develop a mobile website. Unless you

are a bank or an organisation that starts off

with a very large database, a mobile website

presents a better opportunity to reach your

customers than a mobile application.

3WHAT SHOULD THE FIRST STEPS BE FOR A

MULTICHANNEL OR PUREPLAY RETAILER

LOOKING TO OPTIMISE FOR MOBILE?

It is important to recognise that a customer

using a smartphone is accessing and browsing

the internet in a different way to a customer

using a PC. This is why it is essential to strip

down your mobile site and make it as easy and

streamlined as possible for the smartphone

user. Navigation on a mobile website should

be smooth and intuitive and provide a clear call

to action. It is also vital to keep your site and

application design simple, and display content

as clearly as possible.

There are various factors that retailers

should consider before optimising for mobile,

and screen size is one of the most important.

You can’t just shrink your existing website to

make it fit on a mobile screen. It is important

to understand that customers need to be able

to read your mobile site easily and they should

be able to easily use their finger to click on a

product and checkout.

4WHAT EXAMPLES CAN YOU GIVE OF

RETAILERS WHO HAVE ACHIEVED A

CUSTOMER-CENTRIC MOBILE WEBSITE?

Starbucks and Nike are both excellent

examples of customer-centric mobile websites.

In particular, the Nike mobile is simple, easy

to use and offers a great customer experience.

The site features minimal instructions,

compelling and images and highly intuitive

navigation.

5What impact are consumer mobile

applications such as location-based

services and context-aware services having

on mobile commerce?

We think that this is the very beginning of time

for these applications.

6WHAT ROLE DO YOU THINK

THE TABLET PLAYS IN MOBILE

COMMERCE GROWTH?

Tablets are just in their infancy – all major

manufacturers are racing to bring capable

tablets to market and this is seen as one of the

next areas of growth for PC manufacturers

and it is now believed that we are now in

the decline phase for desktop PCs. This

represents another fantastic opportunity

for online retailers to create sites that are

optimised for tablets with navigation that is

made specifically for the touch screen and the

smaller resolution of a tablet.

7HOW DO YOU THINK RETAILERS

SHOULD OVERCOME THE

CHALLENGES OF OPERATING IN THE

MOBILE SPACE?

I would say that mobile commerce provides

an opportunity rather than a challenge.

The mobile channel allows retailers the

opportunity to acknowledge that your

customers are in the mobile space and to

deliver content and be active in these spaces.

BIO: Michael Browitt is the Business

Development Director at the major digital

solutions provider, Powerfront. With over

20 years’ experience in banking and internet

related technologies, working with major

Australian companies such as NAB, Oroton,

Sportscraft and Toys”R”Us, Michael has

developed a vast body of knowledge and

experience in eCommerce and online success.



Innovator Spotlight: Gilt Groupe

n an industry crowded with imitators, members-only fashion e-

tailer Gilt Groupe is the genuine article. The flash sales site may

take its name from false gold, but there is nothing manufactured

about its growth path, which has seen it take on the ailing luxury

retail market with its much-copied limited time shopping model. The

figures don’t lie - Gilt Groupe is currently valued at $US1 billion, counts

3.5 million members worldwide and expects to turn over revenue in the

vicinity of $US400 million this year. The company’s midday sales attract

100,000 to 150,000 visitors each day, who line up for deep discounts on

labels such as Helmut Lang and Christian Louboutin.

Gilt Groupe’s ability to stay ahead of the curve extends to mobile

commerce. Gilt’s flash sales business model is ideally suited to the on-

the-go, time poor shopper, strengthening the imperative for a seamless

m-commerce strategy built around the customer experience. An early

adopter of the mobile channel, Gilt Groupe has embraced this by rolling

out a series of innovative apps for the iPhone, iPad and Android. Christo-

pher Gonzales, Director of Mobile Product Management at Gilt Groupe

speaks to Power Retail about the part mobile has played in the retailer’s

success story.

WHAT ROLE HAS MOBILE COMMERCE PLAYED IN DRIVING

GROWTH AT THE GILT GROUPE?

Mobile is playing a large role in driving Gilt’s business - both as a channel

to better serve our existing customers as well as to acquire new ones. We

have been seeing mobile’s contribution to Gilt’s overall revenue increase

steadily to date and currently attribute approximately 16% of weekday

revenue and 29% of weekend revenue to purchases made on mobile

devices. Nearly 2 million people have downloaded Gilt apps across the

iPhone, iPad and Android. We have also observed that customers who

access Gilt on mobile devices tend to spend more.

On iPad specifically, the average value of purchases is approximately

30% higher in comparison to Gilt’s other channels. It is interesting to

highlight, as well, that one of the most expensive items ever purchased

on Gilt, a vintage Rolex watch for $24,000, was bought on an iPad.

WHAT FACTORS DID GILT GROUPE CONSIDER WHEN

DEVELOPING ITS MOBILE STRATEGY?

Gilt wants to serve our customers wherever they are - be it on their desk-

top at work, on their mobile phone while in transit or on their tablets

when relaxing on the couch.

Although accessibility is cen-

tral to the mobile channel, our

strategy is optimised for phone

versus tablet, and the specific

ways in which customers use

each.

Our iPhone app, Android

app and mobile website are

designed to satisfy our cus-

tomer’s need for immediacy

and tailored to a speedy shop-

ping experience. These apps

are intuitive, facilitate quick

exploration and discovery and help lead customers to fast and easy check-

out. In turn, our iPad app is more conducive to increased exploration,

and addresses the fact that browsing a tablet is a more leisurely activity

and that customers spend more time on these devices. To this end, the

iPad app also highlights Gilt’s beautiful imagery, makes interesting use

of gestures and animations, and encourages customers to browse our

product catalogue while still making shopping expedient.

As mobile is an emerging channel, we view it as an area to be innovative

and experiment with new ways for users to shop. We are always looking

ahead.

WHAT GLOBAL TRENDS IN MOBILE COMMERCE HAVE MOST

INFLUENCED GILT GROUPE AND HOW ARE THESE SHAPING ITS

MOBILE PRESENCE?

While we closely follow industry trends, Gilt allows its business model

and customer needs to drive mobile strategy. Furthermore, improve-

ments in platforms are a key factor in the features, upgrades and launches

we pursue. New technologies that improve performance and afford new

ways to shop are key to continued mobile growth.

HOW HAS THE MOBILE CHANNEL HELPED THE GILT GROUPE

ENGAGE ITS CUSTOMERS?

Mobile is a natural way for Gilt Groupe to engage with its customers. Our

sales begin at specific times and run for a limited period, creating a sense

of urgency. When our sales commence, users may not be able to access

I

“As mobile is an emerging channel, we view it as an area to be innovative and experiment with new ways for users to shop. We are always looking ahead.” Christopher Gonzalez, Director of Mobile Product Management, Gilt Groupe

FAST FACTS• Gilt Groupe attributes 16% of weekday revenue and 29% of

weekend revenue to the mobile channel

• Nearly 2 million customers have downloaded Gilt Groupe’s

iPhone, Android and iPad apps

• The company is a pioneer in the mobile commerce space,

releasing the Gilt on the Go app for iPhone in September 2009.

• Gilt Groupe rolled out a state-of-the-art iPad app in April 2010.

The iPad now accounts for 4% of the retailer’s sales.

their desktop computer to shop, but our mobile apps and mobile website

offers them easy access to us wherever they are. In turn, mobile has cre-

ated a new customer touchpoint for Gilt. A simple and effective example

of this is the notification that we send to customers using our iPhone,

Android and iPad apps whenever a new sale starts. Customers love the

reminder and will immediately open their app to shop.

We are also experimenting with technology common to mobile devices

that can provide new ways for customers to explore and shop. The Gilt

Colour feature in our iPhone app gives a customer the ability to focus the

phone’s built-in camera on a color for products of a similar colour to be

returned. It’s a feature that our customers find fun and inspiring while

also having a practical component of matching items to one another such

as a belt to a shoe. n

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From implementation to training, Netbiscuits can support your internal development strategies or provide professional services to help you take advantage of the mobile retail opportunity.

To learn more, visit www.netbiscuits.comTo get started, contact us: [email protected]

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2011-08 - letter - Online Retailer Event_v1.indd 1 11.08.2011 14:19:41



M-Commerce Gallery

ON TARGET FOR CUSTOMER SERVICETarget’s mobile strategy has always lived up to the precision

implied by its name. The US multichannel retailer was an

early devotee of the mobile revolution and has evolved its

m-commerce presence alongside customer expectations.

Target’s mobile app includes a store locator, barcode scanner and

top-of-the-line search functionality, allowing shoppers to find

out if an item is available and determine the exact aisle location.

However, Target gets props from Power Retail for its My List

feature, allowing customers to make and manage shopping lists

and share these with friends. Target’s mobile website features

one-click checkout and is as user-friendly as the app. “We look

to drive what is useful and desired by our consumers and that’s

first and foremost,” said Dan Fine, Director of Digital Experience

for Target speaking at the M-Commerce Summit 2011. “Our

employees are there to help service our guests and any apps that

we do are to serve our guests.”

THUMBS UP: Target has made the most of the

potential of mobile for driving customer service

and adding another dimension to the in-store

experience. The MyList feature is irresistible to

list obsessives while offering the rest of us an

easy way to manage our product choices.

Part art, part science, the following mobile apps are taking m-commerce strategy to the next level and have reaped powerful rewards for the retailers’ behind them. It’s time to be more creative about your own take on m-commerce.



THUMBS UP: One-click checkout is a killer

m-commerce tool – simple, easy and effective. It

removes customer fears of entering wrong credit

card information, makes it easy as possible for

fumbling fingers and takes the risk out of the

shopping process.

THUMBS UP: Though retailers may be debating

the true value of QR codes, The Home Depot

shows how powerful this tool can be when it

is based on a close understanding of the target

customer. Information-hungry and with a DIY

bent, the Home Depot shopper is naturally

placed to embrace mobile barcodes.

M-COMMERCE GETS A NEW LOOKUK retailer New Look was built on a knack for anticipating

high-street trends and has applied the same smarts to its mobile

commerce strategy. The new mobile site prioritises search

functionality by making New Look’s entire product catalogue

highly accessible to mobile shoppers. The store cuts the journey

time from homepage to product page and allows shoppers

to browse products using one, two or three columns. The site

employs a powerful zoom, allowing products to be viewed in

detail, as well as a store locater integrated with Google Maps.

Shoppers can also choose their own delivery day. The mobile

store makes shopping easy by offering customers a one-click

checkout and linking to social media and email accounts to let

customers share their favourite products.

“Research suggests that in 2012 access to the Internet via

smartphone devices will even supersede the desktop PC, so this

is a clear opportunity,” said Dom McBrien, E-commerce Director

at New Look in a statement. “As a result, New Look is launching a

market-leading mobile-optimised site.”

“Crisp and zoomable product imagery, social media integration

and an easy one-click checkout for registered users are just a few

of the cutting-edge features.”

THE HOME DEPOT NAILS QR CODE STRATEGYThe Home Depot may be the one-stop shop for eager home

renovators, but the retailer is taking the pain out of product

research as well. Earlier this year, The Home Depot teamed up

with Scanbuy to roll out QR codes across print ads, signage and

in-store. When activated, these codes allow shoppers to tap

into how-to videos, accessories, product demos, buying guides

and project guides. If customers access the codes outside the

store, the codes bring up a Buy button enabling easy checkout.

Home Depot also lets customers share the product on Twitter or

Facebook, or email and check available inventory at the closest

outlet.



FOURSQUARE POWERS CROSS-CHANNEL MARKETING AT DOMINO’SDomino’s recent partnership with FourSquare is a powerful

example of the role of mobile in bridging online and bricks and

mortar channels. The pizza giant recently partnered with the

mobile social network to use geo-targeted offers to drive traffic to

its new e-commerce site.

First launched at Domino’s Pizza in Liverpool, the campaign

offered the “Mayor” one free pizza a week. For the uninitiated,

Foursquare extends “Mayorships” to users who regularly check-

in to certain venues – Mayors are then privvy to special deals or

“Mayor Specials” extended by businesses

The campaign was then rolled out at Domino’s stores across

Britain, resulting in 9,617 check-ins and 3,000 unique visitors to

bricks and mortar outlets. The collaboration also sparked major

social media buzz, with 2,764 Facebook posts and 3,714 tweets in its

first few months.

KIEHL’S MARRIES LOCAL AND MOBILE WITH SMS MARKETING CAMPAIGNAlthough SMS messages may lack the cool factor of other types of

mobile marketing, they can offer customers a simple and effective

call to action. Kiehl’s, a beauty retailer known for its hip packaging,

recently made a strong case for the role of SMS in mobile marketing

campaigns. The retailer asked customers to sign into its new

location-based SMS service, which would see them receive news and

sales alerts on their smartphones when they approached a nearby

Kiehl’s store. The SMS alerts accelerate in-store traffic by putting the

latest promotions, offers and discounts directly in the palm of the

user. Participating customers are only subject to three messages a

month and are offered an opt-out option from the outset.

THUMBS UP: While this campaign might

not win in the glamour stakes, it powerfully

demonstrates how mobile and local can work

together to engage the customer. When paired

with GPS technology, the humble text message

is transformed into a compelling and relevant

call-to-action with easily measurable results.

THUMBS UP: Joining forces with a hot social

network such as FourSquare was a smart move

for Domino’s – the campaign saw sales skyrocket

while establishing a powerful social media

presence for the brand.



CONVERSE DRIVES CUSTOMER EXPERIENCE WITH AUGMENTED REALITYCynics who dismiss augmented reality as an e-commerce

buzzword would stop in their tracks at the new iPhone app from

Converse. The shoe retailer has used the technology to create

a riveting mobile experience while helping customers find the

perfect pair of kicks. The app allows users to try on any shoe

from its product catalogue, just by pointing an iPhone in the

direction of their feet. The app then uses augmented reality to

superimpose a virtual shoe over each foot, without having to

wait for a sales assistant to return with another shoebox. When

the shopper finds a style they like, a few clicks will take them

straight to checkout – or share it with friends on Facebook for a

second opinion.

FUN WITH APPSThe retail rush to take advantage of shopper’s obsession with their smartphones has seen hundreds of apps released to the market each week. Here are three of our hot picks:

GAP STYLEMIXER

The Gap StyleMixer app for Android allows customers to pull together and accessorise outfits, explore trends and watch videos from fashion leaders.

HOLLISTER

The iPhone app from US denim retailer Hollister takes the catalogue experience to the next level with its highly addictive jeans guide. Aside from displaying size and fit, the app lets users toggle between the front and back view with a swipe of the finger.

COUPON SHERPA

Put away your coupon books - Coupon Sherpa rounds up the best coupons on the web and compiles them in one handy iPhone app. It also lets you tailor lists of favourite stores, email coupons to friends and allows coupons to be scanned by most optical scanner.

THUMBS UP: Converse’s Sampler iPhone app

cleverly exploits the iPhone’s built-in camera and

shows us that augmented reality applications

can be both practical and fun to use.



Q&A WITH SPORTSGIRLLocal fast fashion retailer Sportsgirl recently sped up its mobile

commerce strategy with the launch of a new mobile website.

Sportgirl’s Kate Evans gives Power Retail the scoop.

WHAT ROLE HAS MOBILE COMMERCE PLAYED IN DRIVING

GROWTH AT SPORTSGIRL?

Our new mobile site allows customers to engage with

Sportsgirl in a meaningful way in their own environment and

interact with the brand on their terms. If e-commerce offers

the opportunity of a transaction outside of traditional bricks

and mortar locations, m-commerce takes that a step further by

allowing the transaction at ANY point. It really represents the

next step in 360 degree engagement.

WHAT FACTORS DID SPORTSGIRL CONSIDER WHEN

DEVELOPING ITS MOBILE STRATEGY?

The main factor that was considered was the brand’s ‘digitally

savvy’ target market. Sportsgirl wanted to make the most of

the rapid growth of mobile usage amongst this group.

WHAT RECEPTION HAS SPORTSGIRL HAD TO ITS MOBILE

WEBSITE? DOES IT HAVE AN APP IN THE WORKS?

Our girls are definitely engaged with the new platform. The

purchase profile of our customer on mobile is very similar to

the online profile. We can confirm that the girls engaging and

making transactions on our platform are on the rapid incline

every week. An app is in the works.

HOW HAS THE MOBILE CHANNEL HELPED SPORTSGIRL

ENGAGE ITS CUSTOMERS?

We have been able to engage our customers through the

following features…

• Giving them the ability to shop the latest Sportsgirl collections

• Allowing them to stay up-to-date with Sportsgirl fashion

news and blogs

• Be inspired by the Sportsgirl Style Me galleries and shop the

entire gallery

• Share fashion finds with friends via email, Facebook and

Twitter

• Rate favourite fashion looks and blog posts

• Locate the nearest Sportsgirl outlet with the Store Locator

TOYS “R” US USA TALKS MOBILE COMMERCEMobile phones are an integral part of busy

mum and dads’ lifestyles, and we continue

to look for exciting new ways to engage our

customers and present them with the most

streamlined, on-the-go shopping solutions.

Last holiday season, we announced

several new advancements in our mobile

technology capabilities, including coupon

barcode scanning and a mobile messaging

program to provide multichannel shoppers

with additional convenience. In addition,

customers have the ability to shop our

mobile-enabled e-commerce sites, and

take advantage of our dedicated Toys“R”Us

and Babies“R”Us apps for Blackberry,

iPhone, Android and iPad. By introducing

these advancements, we are able to build

stronger relationships with our customers

by providing them with new ways to

learn about and take advantage of “R”Us

promotions by simply using their mobile

devices.

Since launching our initial mobile

initiatives late last year, our customers have

responded favorably to the ability to access

our brands on-the-go—from locating a

store to researching products. We also

continue to test location-based check-in

services like Foursquare and Facebook

Places. Last year, we saw the power of

these services particularly on Black Friday

as thousands of customers thronged to our

stores for our 10pm openings across the

country.

- Jennifer Albano, Senior Manager,

Corporate Communications, Toys “R” Us

USA.



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Netbiscuits enables its clients to develop, publish and monetise cross-

platform mobile sites and apps. Our world leading cloud software

platform serves the mobile internet services for premium online, media

and retail companies such as eBay, Universal Music, MTV Networks,

HSN and Axel Springer, as well as leading agencies such as SapientNitro,

Publicis, Razorfish, and Ogilvy. Globally Netbiscuits processes more than

8.5 billion mobile page deliveries for its customers each month. Founded

in 2000, the company has over 100 employees in the USA, Germany,

UK, Singapore, and Australia. The award winning Netbiscuits platform is

available as a cloud-based software service (SaaS). At www.netbiscuits.

com all tools, interfaces and mobile enabling technologies are provided

to develop, publish, monitor, and monetise professional mobile web

applications. By using Netbiscuits, media companies, agencies, retailers,

brand owners, developers, and service providers achieve a faster path to

profit from their mobile Internet programs.

The company has continuously been included in reports produced

by mobile industry analysts Gartner Inc. and Forrester Research

Inc. respectively. In Gartner’s ‘Magic Quadrant for Mobile Consumer

Application Platforms’ published on July 30, 2011, Netbiscuits was

positioned as ‘Visonary’ with the highest ability to execute. Forrester’s

‘Market Overview: Mobile Commerce Solutions for Retail’, published on

August 4, 2011 provides a detailed analysis of the capabilities of 14 mobile

platform solution vendors in North America and Europe with a focus on

and a proven record of implementing transactional mobile commerce for

online retailers.

Just recently, Netbiscuits’ customer CBS Interactive was honoured with the

prestigious 2011 Meffys Award for the Best Mobile Website for m.cbs.com.

CONTACT:

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201 Sussex Street

Sydney NSW 2000

Web: www.netbiscuits.com

Tel: +61 4 101 4 1795

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