Internet retailing jc 24 3-11

Mobile for retailers Jason Cross 24 th March, 2011

Contents Mobile is a ‘hot topic’ About Incentivated Key Issues Examples Future Trends Summary

State of the Nation Over the last 12 months brands have started to offer what consumers were happy to do all the time With many sites looking the same, the opportunity now exists to: improve the UX/UI and so differentiate the offering offer implicit and explicit personalisation i.e. join up the web and mobile sites deliver e-commerce best practice Provide complete mobile integration

State of the Nation People do it – 51% of the UK engage in M-Commerce People like it – 42% say they use their mobile because it is the easiest way to research/buy M-Commerce will continue to grow 49% of non M-Commerce users say they will purchase in the future Smartphone users are 63% more likely to engage in M-Commerce only 9% mention security issues Source: IAB Consumer M-Commerce Study October 2010 Base All UK Mobile Users (1039)

27% of adults with phones have ever used their mobile to purchase a service/product via cards/bank details/pay pal Source: IAB Consumer M-Commerce Study October 2010 Base All UK Mobile Users (1039)

Sales shifting to mobile More than 30% of UK shoppers have visited a retailers website on their mobile 67% of these have done so in the retailer’s store more than 25% look at competitor websites to compare prices and offerings when in rival stores Source: http:// www.foreseeresults.com /

38% of UK consumers But 28% of those who have tried it find it a difficult way to shop. UK respondents would be more likely to shop on their mobiles if: 39% if retailers provided secure and easy payment services. 24% would like mobile-only offers and incentives 22% believe retailers should design websites optimised for smaller screens to encourage use. despite the popularity of APPs, just 15% feel a specific commerce applications would entice them to shop The survey shows use of m-commerce would increase if retailers offered customers more personal optimised experiences to suit changing lifestyles and tastes. Have tried to shop online from their mobile phones

Half of UK firms fail to check Of those that have 41% admit their website has a reduced appearance 36% offer reduced functionality The survey ( from 1&1 Internet) also finds that 65% of firms have not optimised their websites for mobile usage and have no plans to do so Their own website from mobile devices

Incentivated - Mobile Specialists Technologies 5 mobile formats Enterprise Messaging (SMS, MMS etc) Mobile Internet Apps Short codes and QR codes Location marketing Services 2 consultancy offerings Creative Strategy Needs 3 key areas of client activity Acquisition After Sales / CRM mCommerce

Incentivated – How we work with clients Messaging Gateway & Software Company Mobile Marketing, Internet & mCommerce Platform Marketing, Creative & Advertising Agency Campaign strategy and execution Design, build & hosting of mobile internet sites* Mobile advertising planning & buying Consulting, insight & post campaign analysis SMS, PSMS, MMS, LBS, 2D (QR etc) barcodes Mobile content management system (CMS)** Systems integration and various APIs Development of both handset & server-side apps Mobile and email marketing Mobile internet site publisher mCommerce suite Self-serve functionality (“SaaS”) CLIENTS Global acquisition, retention (CRM) and m-commerce campaigns and services Engagement is spread across three levels *Includes iPhone and other ‘smartphone’ specific sites **Phone capabilities database

Mobile’s role in your business strategy Attract (Acquisition ) Interact (mCRM ) Transact (mCommerce )

Customer acquisition CRM / Retention / Loyalty Customer transaction Incentivated clients

Incentivated – mobile web tools

iris – Tools for Mobile Your customers SMS Location based Alerts MMS Bluetooth Applications Mobile video Mobile ticketing Mobile Internet Mobile donations Sampling Text & Win

Mobile App or Mobile Web? Although apps are ‘cool’, mobile sites reach more people Mobile Applications Mobile Web Site Cross-Platform App Online content Y Y Y Offline content Y Y (HTML 5 data store) Y Audio / Video Y Y Y Interactive graphics Y Limited Y Install on ‘home screen’ Y Y (iPhone) Y Multi-platform Build for each device Y Y Single entry-point (URL) Requires install step Y Requires install step Location Services (GPS) Y Y Y Notifications Y N Y Development costs Once per OS Once Once Maintenance costs Repeated per OS Once Once App store required (cost) Y N Y

Mobile App or Mobile Web? Although apps are ‘cool’, mobile sites reach more people

‘Cookie cutter’ or bespoke approach?

‘ Explicit’ personalisation Explicit Personalisation The person browsing the website has been to the site before. They have previously provided feedback that they are interested in. Logo Menu item 1 Menu item 2 Personalised banner Promoting something they are Interested in Welcome back: FRED SMITH When you were last here, you looked at The following products Product 1 Product 2 Product 3

‘ Implicit’ personalisation Implicit Personalisation Based on past behaviour, we know what the person is interested in. This can be derived from the categories and products they have previously looked at or the keyword they searched for in a search engine to get to the mobile site Logo Menu item 1 Menu item 2 Personalised banner Based on the search engine keyword You recently looked at XXX Here are some more products you might Be interested in Product 1 Product 2 Product 3

Location aware Mobile Site Location Aware Based on their location, we can add promotion based adverts or advise them where their local store is. Logo Menu item 1 Menu item 2 Personalised banner Based on their location You are near: XXX Our nearest store is XX metres away Get directions Menu item 3 Menu item 4

Mobile Site Time Aware Based on the time of day, a person may be interested in different things. During the weekday they are at work. During the evenings they could be out or watching TV.. Time aware Logo Menu item 1 Menu item 2 Personalised banner Based on the time of day It is 11:00am On TV later is XXX

Location and time aware COMBINATION Mobile Site Location aware and Time Aware Based on the time of day, a person could be interested in different things in their area. In the morning, they would want to read a newspaper or know where to buy a coffee. In the afternoon it could be where to buy lunch or go shopping and in the evening it could be best restaurants Logo Menu item 1 Menu item 2 Time based banner It is 12:00 and you are near XXX Favourite places for lunch are: XXX XXX Good shopping places are: XXX XXX

Generic landing page Data capture form (Name, Email, Phone #, ZIP) Link to Ts+Cs Customer receives SMS, clicks on URL Video Gallery Photo Gallery The customer journey – an example site Audio Gallery Customer sees CTA and texts in to shortcode Generic Home page - unlocked access to all new XJ material To maximise interaction within sites, nothing is more than 3 clicks away Ts+Cs page E-Brochure delivered to collected email address Incentivated ‘sniff’s’ handset type and delivers WAP, iPhone or Android site Incomplete or invalid details page Prospect’s contact details forwarded to client FMN dealer page FMN dealer results page E-brochure order page E-brochure confirm page * Phones that do not support ‘spin around’ will be served an animated GIF SPLASH: Interactive 360 ° XJ spin (iPhone & Android only)* Note: The 360° spin ‘splash’ feature launches as soon as users arrive on the landing pages.

Information Architecture Ability to manage all product centrally Taxonomy to be shared across multiple sites Segmented deployment to campaign sites Product Category Hierarchy Master Category Structure Campaign Site Primary Site Mobile Site

Enterprise Content Management Master Content English German French UK Website UK Mobile site UK Mobile App Campaigns Social Email/SMS Head Office Created Content Translation Layer Channel Content Italian

Enterprise CMS The Master Content layer is where the content is created by a central office. This content is then automatically ‘inherited’ down the ‘blueprint’ structure. Content can then be localised at any lower level with workflow added to provide an approval mechanism for the change The translation layer can be combined with a translation memory solution and workflow to automate the translation process. The multi-channel management on the bottom layer can be implemented for ANY client wishing to create content once but publish to multiple channels. If the e-commerce systems is multi-national then so should mobile be

eCommerce CMS with mobile support? Multiple presentation layers required Accurate handset detection and complete capabilities database Genuine uniqueness Half to three quarters of UUs missed by Google Analytics Support for apps Few if any provide genuine mobile delivery

Integration options Customer Database Retailer Systems Databases Product Database Transactions Database Product Information Promotions Loyalty Programs Stock/Order Management Customer Management Application Servers Mobile Data Internet Data Secure Transfer Protocol / Firewall Commerce Channels 3 rd Party eCommerce Platform Incentivated Payment Order Management Mobile CMS Network Wired Network / WIFI / 3G / GPRS Encryption Protocols / Wireless Security Mobile Environment Ecommerce Website Incentivated Capability Detection Content Repurposed Designed for Mobile Location Detection Redirect to Mobile Site (i) Back office

Option 1 Diagram shows supplier’s platform integrated directly with client’s back office system. Doesn’t display the complete set of modules. The integration route could be as simple as integrating with one consolidated data source the client has put in place. More likely take advantage of multiple existing data-feeds The supplier platform will offer content repurposing, reporting etc. If the client ever wanted to change their eCommerce platform, they can without impacting their mCommerce site. Disadvantages would be: For internal reporting, separation of the orders placed on the mCommerce site will have to be differentiated some way within the back office platform, There will be two commerce platforms to monitor, Two lots of statistical web reporting.

Integration option (ii) eCommerce platform Retailer Systems Product Information Promotions Loyalty Programs Stock/Order Management Customer Management Application Servers Mobile Data Internet Data Secure Transfer Protocol / Firewall Commerce Channels Incentivated Micro Payment Order Management Mobile CMS Network Wired Network / WIFI / 3G / GPRS Encryption Protocols / Wireless Security Mobile Environment Ecommerce Website Incentivated Capability Detection Content Repurposed Designed for Mobile Location Detection Redirect to Mobile Site Customer Database Product Database Transactions Database 3 rd Party eCommerce Platform

Option 2 Diagram shows supplier’s platform integrated directly with client’s eCommerce platform. Benefits are, the same administration tool used for the eCommerce platform can be used for the mobile site. Supplier does not need to know how the client’s back office platform works or have access to it. Disadvantages would be: It will require a lot more work to integrate with an existing eCommerce platform successfully Most eCommerce platforms are proprietary applications and not all offer integration options For internal reporting, separation of the orders placed on the mCommerce site will have to be differentiated some way within the eCommerce platform

Other considerations Deep-link mapping from desktop to mobile site Integration Promote your site/app Click-through from SMS using unique trackable link

Integrated thinking Press ads Website DM Social media Email Mobile banner ads Mobile loyalty service

Promote your site NY - newstands

2010 WINNER Most Effective Mobile CRM/Enterprise Messaging Campaign The campaign reached out to those who signed up for picture (MMS) messages and text (SMS) alerts with offers, deals, promotions and news about M&S. This enabled M&S to engage with their customers through mobile directly and use it to complement existing DM and email contact strategies. Click-through from SMS & MMS The ongoing campaign had recruited more than 700,000 opt-in customers to the mobile database with a minimal opt-out rate.

Examples Enterprise Messaging – British Airways Location Based Services – Levonelle & Mothercare Mobile Internet – M&S Wallace and Gromit Application – Waitrose Christmas & King of Shaves QR Codes – lots of examples.. CRM - Strongbow

King of Shaves – mCommerce app Home Page Payment options Delivery details m-Video

M&S mobile barcodes customer journey 2D Barcode on juice bottle Scan image Provenance story Mobile voucher

Pay-buy-mobile 52 mobile operators, serving over 1.7 billion subscribers, support the Pay-Buy-Mobile (“PBM”) project worldwide PBM allows mobile phone to be used at point of sale to purchase goods and services Near Field Communication (“NFC”) chip installed on the phone allows credit card (stored securely within the mobile’s SIM) to be ‘swiped’. The customer confirms their transaction by inputting PIN at POS More than one credit or debit card can be stored in the same SIM Data transfer uses the same secure process as for credit or debit card transactions Mobile wallet – cash & credit

Payment: Visa (NFC) Visa are trialling cashless payment on New York public transport Users install a visa smart chip in to their smartphone and log in to the Visa app when travelling When they travel swipe the phone over a receiver to pay for their travel on New York transport Google adding NFC chips to new phones Barclaycard trialling NFC card payments in UK

Mobile ticketing The airline industry is the most advanced user of mobile barcodes in the Western hemisphere Travellers download an Aztec or Data Matrix 2D barcode boarding pass to their phone Both MMS and Mobile Internet are used

M & F-Commerce? 20% of all display advertising to be on Facebook by 2015, versus 2.7% today? Source of forecast: Otkritie What happens when FBML goes mobile? And dynamic FBML?

HTML 5 Next major revision of HTML standard Includes ground-breaking technology to improve user experience Form field attributes Location Based Detection Offline caching Dynamic drawing HTML5 is an extension to XHTML: any site developed in HTML5 will be backwards compatible with XHTML browsers. The future of web (and web-app) design?

In summary Mobile is a ‘hot topic’ for retailers Customers are using mobile – whether you are set up to provide the experience you want them to have or not mCommerce should be treated as part of the wider brand experience (+ acquisition, CRM, after sale support) Integrated solution reduces demands on content editors: create once, publish to multiple sites Mobile allows segmentation, profiling, personalisation Launch, test, monitor, enhance Use a mobile specialist – avoid having to re-do the basics Keep an eye on developments – it’s a fast-moving landscape at the moment

Closing thought At the time of the dotcom bubble, i.e. around 2000, there were 350 million people online. There are currently 400 million people with smartphones … For a copy of our mCommerce white paper, please visit our stand here at the Expo

(No code reader? Text CODE to 62233 for a link to a reader appropriate for your phone) Jason Cross Marketing Director [email_address] @jcmobile10 Incentivated 23 Curtain Road London EC2A 3LT Tel: 020 7392 2323

Internet retailing jc 24 3-11

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