Mobility In Retail Today: Connect With Customers To Drive More Revenue

Mobility In Retail Today: Connect With Customers To

Drive More Revenue

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Session sponsored by

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About CCS 2013

ü 9 Webinars, 4 Days

ü Sessions covering Mobile,

Social, Store Ops,

X-Channel, and more

ü Featuring industry

analysts and consultants

ü Free for Retail executives

www.retailtouchpoints.com/connected-consumer-2013

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About Retail TouchPoints

ü  Launched in 2007

ü More than 25,000 subscribers

ü Provide executives with relevant,

insightful content

ü  Free Resources such as White Papers,

E-book, Webinars, Research and

Podcasts

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Today’s Panelists

Jon Stine Director, Cisco Consulting Services Cisco Systems

Andrew Gaffney Editorial Director Retail TouchPoints

MODERATOR

Bob Friday VP and CTO, Wireless Networking Group Cisco Systems

© 2013 Cisco and/or its affiliates. All rights reserved. 7 © 2013 Cisco and/or its affiliates. All rights reserved. 7

Mobility in Retail Today Connect with Customers to Drive More Revenue

Jon Stine Director, Cisco Consulting Services

May 20, 2013

Bob Friday VP and CTO, Wireless Networking Group

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

1

2

3

Smart Mobility and Retail: Where’s the Value, and Why?

•  Yes, they’re shopping with smartphones. Especially Gen Y.

•  15% CAGR US Smartphone shoppers, 2012-2015

No surprise.

•  Approach Mobility as a critical element in cross-channel strategy.

•  What you must win: mobile research, especially in store.

What decisions will you influence, and when?

•  The most-desired by shoppers •  Three value opportunities

1.  Decision influence 2.  Transaction / payment 3.  In-Store behavior analysis

Get ahead of it now

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 9

0

20

40

60

80

100

120

2010 2011 2012 2013 2014 2015 Total

Source: eMarketer, 2012

By 2014 99.4M mobile

subscribers using phones to shop

38% of all US >15 years

95% of those will be using smartphones

US Smartphone Shoppers

Number of US Shoppers (M)

In 2012 11% smartphone percentage

of total US E-Commerce revenue

In 2012

1.1% smartphone percentage of total US retail revenue

Source: ComScore, 2013 Source: Cisco Consulting, 2013; National Retail Federation, 2012

Who and How Many? 15% CAGR for US Smartphone Shoppers, 2012-15


Percentage of respondents doing now or interested in doing

Source: Cisco IBSG, 2012

Eight in Ten

Digital Mass Market

97%

PC at home

47% 47%

Tablet at home

TV screen in store

46% 46%

Phone in store

Phone at home

Phone on the go

48% 54%

Touch-screen in

store

64% 96% 95% 90% 93%

Über Digital PC at home

Tablet at home

Phone on the go

Phone at home

TV screen in store

98%

Phone in store

79%

Touch-screen in

store One in Ten

Who and How Many? Smartphone Shopping the Norm for Über-Digitals

MOBILE AT THE MASS TIPPING POINT


§ 40% research in the store, purchase online § ≈ 1/3rd shoppers using smartphones to shop

§ 11% don’t shop without them

What’s the Impact? How Do You Catch and Keep?

Source: Cisco IBSG primary research, 2012; Forrester, 2012; National Retail Federation, 2012

Service–Support Transact The

Shopping Journey

Online (all screens)

Store Call Center

CATCH AND KEEP The Dangerous Transi.on

Online (all screens)

Research—Decide Aware

65% 90% TODAY’S STRATEGIC ISSUE

Channel Preference

RESEARCH ONLINE

STORE-BASED REVENUE


What’s the Impact? The Evolution of the Cross-Channel Journey Continues

USA ‘11: Do It Now / Interested

Source: Cisco IBSG, 2011-12 Doing now Interested

Search Buy USA ‘12: Do It Now / Interested

PC Store 65% 17% 57% 17%

Store Online PC 40% 19% 38% 19%

Mobile Online PC 33% 13% 26% 18%

Doing now Interested

Mobile Store 29% 17% 24% 21%

Kiosk Store 18% 30% Click ‘n Collect 19% 27%

+ 21% YOY

+ 27% YOY


By 2016 52.3% US retail revenues influenced by or transacted

thru internet

4X more influence than transactions

Up to 34% of segment revenues influenced or

transacted by smartphones

Sources: Forrester 2012; Deloitte, 2013

Nearly Half of the Apparel Digital

Commerce Thru

Smartphones *Source: Research and Markets, 2012; forecast of US apparel retail revenues of $396.93B in 2016

What’s the Impact? Smartphones to Influence or Purchase 20% Retail Dollars


2012

61% mobile subscribers most likely to use the smartphone

in the store

53% on the way to the store

It’s all about Right-Now

Decision-Making

Sources: : Deloitte, 2012; Cisco IBSG, 2013

What’s the Impact? Smartphones Influence Immediately


2011 44% of mobile research is in

the store

Of those who researched in the store . . .

43% visited same-store site

40% visited diff-store site 38% visited a price

comparison app

How Do You Catch and

Keep? Source: iConsumer, 2011, Cisco IBSG 2013

What’s the Impact? The Key is Winning In-Store Research


Investing in Store Mobility: Most-Desired Concept Overall Retail

How do you prefer to access information

on your mobile device?

§  21% mobile web §  12% mobile app §  20% either way

2012 Cisco “Catch and Keep” Digital In-Store Concept Survey, US Respondents Tested six digital concepts, including automated in-store pick-up, tablet-based assistance, in-department interactive screens to assist selection, and personal mobile shopper. Top-Ranked Overall: Personal Mobile Shopper Use mobile device in store to get offers and coupons; scan product code for online product information, ratings, reviews, etc.

Source: Cisco IBSG, 2012-2013


Her Store Remote Control

Mobile Web

Access

Mobile Purchasing

Store Finder

Personal Entry

RecogniFon

Text Alerts events * coupons

Social Rewards

Personal Scrapbook coupons

points * looks lists

Product Availability

Sourcing, Fit Go-‐Withs

Store Way-‐Finding

Financial Wallet

TRAFFIC ANALYSIS

ONLINE INTEGRATION

ONLINE INTEGRATION

INTERACTION WITH PHYSICAL PRODUCT,

FIXED SCREENS

Investing in Store Mobility: A Vision for Mobile Transformation

© 2013 Cisco and/or its affiliates. All rights reserved. 18

Mobile Voice Mobile Data

Wi-Fi Cellular

© 2013 Cisco and/or its affiliates. All rights reserved. 19 Source: Cisco Visual Networking Index 2011

Each user to generate about

/ month (Compared to 63MB today)

Nomadic and Indoor

of the time users are within Wi-Fi coverage

Mobile data to grow

2015 2010

About

Will be video Mobile data grow rate over fixed IP traffic growth


Convergence of Wired, Wi-Fi and Cellular

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2010 2011 2012 2013 2014 2015

Fixed/Wi-fi (39% CAGR) Fixed/Wired (24% CAGR) Mobile Data (92% CAGR)

46.1%

46.2%

7.77%

32% CAGR 2010–2015

Pet

abyt

es /

Mon

th

Source: Cisco Visual Networking Index (VNI) Global IP Traffic Forecast, 2010–2015 (Wi-Fi History)

2007


19 out of 20 smartphones support Wi-Fi

50% of smartphone usage is

already on Wi-Fi

2010 2011 0%

50%

100%

23% 50%

80% of the time users are within Wi-Fi coverage

Mostly nomadic use

Sources: Cisco Visual Networking Index, 2011; Bango Inc., February 2011; North Carolina State University, Cisco IBSG 2011


Connected Consumer Experience

SP Mobility

Enterprise Mobility


Location Analytics? Location-Based Services? Multichannel Strategy?


•  Location Accuracy is a distribution: Avg., Std. Deviation, Tail •  While UWB is very accurate, it is an overlay •  The pure indoor client technologies are a threat but … • Fingerprinting is approaching its limits

Network Assisted Location





802.1x/802.11i

Next Generation Hotspot

802.11u Pre Association

Pre Authentication Local Service Discovery

Reliable Secure Seamless Profitable Wi-Fi authentication experience on par

with Cellular

Cellular / Wi-Fi roaming user experience

Encrypted Wi-Fi user experience

Mobile Context Aware platform

EAP-SIM, EAP-TLS, EAP-TTLS

Roaming

Encrypted Wi-Fi Link

ENGAGE DETECT CONNECT

$

Next Generation Hotspot


Guest Presence Guest Access Guest Experience

Three Stages to Engagement

Mobile device detection,

registration

Seamless, secure

Wi-Fi onboarding

Location-based content and

services

Engage Detect Connect


Retail Transforming Shopping Experience with Personalized Wi-Fi Services

•  Pre-Authentication: Network Services Discovery on the Device

3G


•  Local Services Discovery

Wifi

Shops

Dining

Services

Mall Map

Local Services



Wifi

Shops

Dining

Services

Mall Map

Local Services

Shops




Local Services

Somemall.com/shops

CLOTHING

Cotton On

Country Road

RJM

Pumpkin Patch

Victory Jeans

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Mall Promenade

Featured Search Services Amenities Map

Victory Jeans: 20% OFF entire store!

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•  Turn-by-Turn Indoor Navigation

•  Location-based Web Engagement


Mall Promenade


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Launch App

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•  App “Wake-Up”


Featured Search Map Services Amenities

Product Locater

Promotions

Preferences

Store Map


•  Personalized App


Welcome Product Search

Men’s Sweaters

Search


•  Integration with Product Databases


•  Turn-by-Turn Navigation Based on Location

RJM

Fitting Rooms

Men

swea

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Women’s Activewear




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HOT DEAL!!! Buy One Men’s T-Shirt, Get One Free

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•  Location-Based App Engagement


RJM

Fitting Rooms

Men

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Women’s Activewear





Lowestprice.net

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•  Web-Based Engagement


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Logan Wool Sweater

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RJM Price Match Guarantee.

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•  Web-Based Engagement


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•  Shopper’s Location for High-Touch Engagement


RJM


Thank you for your purchase. Your receipt is saved to your wallet.

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See promotional information from our mall partners

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•  Integration with App-Based Mobile Payment Systems


Cisco Connected Mobile Experiences www.cisco.com/go/cmx

Cisco Internet Business Solutions Group www.cisco.com/go/IBSG

Cisco Retail www.cisco.com/go/retail


Bob Friday [email protected]

Jon Stine [email protected]


Thank You

#CCSeries13

Q&A

#CCSeries13

Q&A

Andrew Gaffney Editorial Director Retail TouchPoints

MODERATOR

Jon Stine Director, Cisco Consulting Services Cisco Systems

Bob Friday VP and CTO, Wireless Networking Group Cisco Systems

#CCSeries13

Thank You For Joining Us

www.retailtouchpoints.com/connected-consumer-2013

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Mobility In Retail Today: Connect With Customers To Drive More Revenue