Fast foodm-commerce

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What do consumers actually want from

mobile retail?An in-depth look at what research among

consumers reveals about their habits, how they view mobile and what it can

give them

Scott DodgsonDirector - Research, Insight, Consulting

SKOPOS market insight - Europe (London)

SKOPOS MTrackTM

UK Active Digital Society

Retail & Shopper

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SKOPOS In a nutshell …

Digital& Mobile

Insight & Illumination

Full serviceBespoke/custom/ad hocTracking & Syndication

UK & InternationalCustomer Insight & UX

It’s all about the best experience…

Fast foodm-commerce

3

What do consumers actually want from

mobile retail?An in-depth look at what research among

consumers reveals about their habits, how they view mobile and what it can

give them

Scott DodgsonDirector - Research, Insight, Consulting

SKOPOS market insight - Europe (London)

SKOPOS MTrackTM

UK Active Digital Society

4

So, what do consumers actually want from mobile retail?

Ultimately, it is about delivering a 1st class customer experience

(a fast, efficient & effective service that is available on the go)

In this respect, mobile is no different to any other servicing & acquisition channel

Prologue, Taster, Trailer…

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Prologue: Me, myself and iPhone…

Average number

of apps on mobile

SKOPOS MTrackTM

SKOPOS MTrack - Base: 378 respondents (web enabled phone users) - wave 4 dataQ17. Approximately how many apps do you have on your mobile?

M-shoppers more apptive…

20Web enabled phone users

Average number

of apps on mobile

24Mobile

shoppers

7

8

TV news & information 32%

Social networks 43% 2

Music 39% 4 5

News (latest today) 40% 3

Weather 52%1

Shopping 31% 6

SKOPOS MTrackTM

The mobile content countdown…

SKOPOS MTrack - Base: 521 (mobile users) - wave 4 data (Jan 12)Q20. What types of information and content do you like to read or access via your mobile?

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Do/Accept PotentialCurrently do, and are likely to do in the future

Are likely to do in the future, but don’t currently do

SKOPOS MTrack - Base: 521 (mobile users) - wave 4 data (Jan 12)Q16. Thinking about your mobile phone(s) and/or mobile device(s) which of the following…

M-Shopping lagging behind comm’s & content SKOPOS MTrackTM

Download new apps 49% 23%

Read newspapers / magazines / articles 40% 21%

Send / receive emails on your mobile 59% 19%

Use an instant messaging service 39% 26%

Use social networks 50% 14%

Order products and Services 29% 29%

Order groceries/food/drink 15% 29%

Book movie tickets 14% 36%

Book travel / a holiday 14% 29%

Some up-claim due to voice unavoidable

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The Rise of M-Commerce

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US ‘explosion’ in m-commerce

Tablets:In the US, visits to retail sites via the iPad outnumber

other mobile devices, even the iPhone

The iPad is a leading commerce platform NOWUS study - Jan 2011

10,000 visitors to the biggest e-retail websites

• 56% compare price information• 46% compare different products• 35% look up product specifications• 27% access product reviews

Mobile shopping behaviour:

29% have paid/ordered using their mobile5% via their tablet

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Have bought online 99%

More gradual UK m-commerce growth

SKOPOS MTrackTM

SKOPOS MTrack - Base: 521 (UK Active Digital Society) - wave 4 data (Jan 12)Q11. / Q16. / Q27. / Q32. Have you ever paid/ordered...?

(Some up-claim due to voice)

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Mobile now forms a major component of the purchase path

• 45% compare price information• 29% purchase products & services

Mobile shopping behaviour:

1 in 7 order groceries / food

& drinkvia their mobile

SKOPOS MTrackTM

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 data (Jan 12)Q16. Which, if any, of the following do you currently do via your mobile...?

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Why the shift in user behaviour?1. Mobile addiction

2. Smartphone & true mobile web

3. Easy, instant, on the go access4. Useful apps & functions

This is ingraining new sets of daily behaviours & tasks

Availability:

Usability:

The m-Commerce Landscape:A Focus on the Food & Drink Sector…

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Mobile has a role to play across several stages of the purchase path (for in-store & in-restaurant purchases)

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The smarter way to order your meal

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The industry is already catching on...

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The in-store experience is being turned upside down

In-store apps

Comparison shopping

Mobile point-of-sale

20

In-store apps: barcode scanning / comparison shopping

21

Mobile payments have arrived

Using the mobile platform to make payments is already a reality

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iphone 4S not NFC enabled, but iphone 5 is rumoured to be

?

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But, mobile payments have still to become mainstream

Usage barriers/limitations:

• Security (unfamiliar) code• Acceptance in more stores

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Augmented Reality

Bar Code Scanning(to source products and best prices etc)

Personally used via mobile

Aware but not used

Quick Response (QR) Codes

2% 16%

12% 36%

21% 60%

SKOPOS MTrackTMUsage & awareness of advanced mobile functions low & limited, but…

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 data (Jan 12)Q22. Which of the following have you (a) heard of but NOT used, (b) personally used via your mobile (c) not heard of?

Deals & discount vouchers sent to your mobile (based on location)

19% 37%

Mobile Contactless Payment 4% 67% 51%

Likely to use or accept a mobile to pay with instead

ofusing a credit/debit card

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Mobile can also play a major role in deal commerce strategies...

Mobile brings RELEVANCE to deal commerce

Relevance in time & place

Relevance in interests

Relevance in value

• The deal needs to be relevant for me right now right here - whilst I’m in shopper/purchase mode

• Combing location, time of day & spending pattern data = greater chance of getting a deal right

• Proportion of the deal (saving) must be high enough to drive mobile payment usage

Mobile’s contribution to deal commerce

- June 2011

M-Shopping 2012Lots of Blue Ocean…

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46%

44%

29%

24%

18%

13% Dominos 13% McDonald’s11% Sainsbury10% Marks & Spencer10% Starbucks9% ASOS9% Ocado9% Subway8% John Lewis7% Debenhams 7% KFC7% Morrison6% WH Smith5% Waterstones

SKOPOS MTrackTMDigital retailer brands best for mobile channel association, but…

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataQ21c. Which, if any, of the following RETAIL / FOOD & DRINK companies do you most associate with the mobile and mobile devices/channels?

No Retail / Food & Drink Brands

30%

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Male 48%, Female 51%

Gender

16-25: 14%, 26-40: 34%, 41-60: 45%, 61+7%

Under £10k: 10%, £10-£20K: 22%, £21-£40k: 31%, £41-£60k:17%, £61-£80k: 7%, £81-

£100k: 1%, Over £100K: 2%, Prefer not to say: 11%

Full time 35%, Part time 18%, unemployed 29%, Retired 18%

Age

Household Income

Employment Status

UK Active Digital Society

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataSKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 data

M-Shoppers more likely to be younger (but equal on gender)

SKOPOS MTrackTM

16-2519%

26-40 47%

=

Mobile Shoppers

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Advantages of Shopping/Purchasing on Mobile Phones/Devices...

“Can do it whilst out and about.”

“Can do wherever...compare prices while in-store.”

“Its quick and I can do it in my own time.”

“No need to carry cash or (debit/credit) cards.”

I can do it in my own time 52%

On the go 65%Convenient 62%

No need for cash 34%

It’s easy to do 46%Quick 45%

SKOPOS MTrackTM

SKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 dataQ18. What do you consider to be the advantages of using your mobile/mobile device for activities such as shopping & paying?

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The key features for a shopping app...

June 2011

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But it’s Currently a Fuzzy Mobile User Experience for Shoppers...

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Mobile: currently the worst channel for customer experience

Purchase channelquality of the customer experience

• As m-commerce grows, so does the importance of the user experience

• Only 9% stated that the m-shopping customer experience was good

• 83% of m-shoppers encountered some kind of problem

• Retailers need to make mobile checkout as easy as possible

Reducing Customer Struggle Report- June 2011

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Lack/loss connectivity 46%Small screen 63%

“It’s not always easy to navigate around sites if not set-up for mobile

use.”

“It makes everything very impersonal..no need for

shops/shopworkers.”

“You can’t really see what you’re buying and what size it is.”

Time, it takes longer 28%Security 44%

Difficult to navigate sites/apps 33%

SKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 dataQ19. What do you consider to be the disadvantages of using your mobile/mobile device for activities such as shopping & paying?

Disadvantages of Shopping/Purchasing on Mobile Phones/Devices...

SKOPOS MTrackTM

Simply Security (perceptions) & Usability

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Tablet 10%

Desktop Computer 63%

Connected TV 3% Games device 2%

Laptop 60%

SKOPOS MTrack - Base: 521 respondents (UK Active Digital Society) - wave 4 dataQ45. Thinking about online payments/shopping, which of the following devices do you believe to be the most secure?

SKOPOS MTrackTM

Mobile devices seen as less secure…

11%Mobile / Smartphone

Mobile Shopping Customer

35

Last mobile shopping experience

“Easy to browse and find what I wanted and the delivery was quick, a stress free experience.”

Toys R Us (toys)

“Quick and easy. Products were delivered exactly when they said they would be.”

Amazon (CDs)

“I went on to the train line app which I previously downloaded and followed the instructions to buy my ticket. It was very

useful and quick, with no hassle and great layout.” Trainline (train tickets)

“I prefer to use the PC to buy things, because it takes too long to navigate the mobile phone.”

HMV (game)

“The small screen made it more awkward than doing it on the laptop. Not something I’d do too often.”

Debenhams (clothes)

“I wasn’t sure if everything had gone through smoothly as no one to speak to, and I had lost my connection part way in.”

eBay (toys)

SKOPOS MTrackTM

SKOPOS MTrack - Base: 327 respondents (those that had shopped/bought/paid via their mobile) - wave 4 dataQ19c / Q19d. How would you rate the overall mobile experience for the last product/service you bought? Please describe it.

The m-shopping customer experience still has considerable scope for optimisation

52%Not

good

48%Good

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And App Visibility/Access can be a problem…iPhone apps’ - searching

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Even QR Codes often disappoint…

Obtained QR codes from...

Magazines: 41%Newspaper: 26%

Other: 43% TV: 11%

Experience using QR Codes

24% Poor Good 28%48%

Reasons for not using QR or 2D Bar-Codes… • Phone has no capability 39%• Don’t know how to 30%• No interest 15%• Have not seen any before 8%

SKOPOS MTrackTM

SKOPOS MTrack - Base: 46 respondents (All that had used a QR code) - wave 3 data / 259 respondents (non QR code users)Q21e. How would you rate your experience of using QR/2D barcodes on your mobile?Q21c. Why have you not used a QR/2D barcode on your mobile?

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What Mobile Shoppers Want- Our Main Mobile Messages…

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SKOPOS guidance for an optimised mobile customer experience

SKOPOS MTrackTM

“Being able to point device at an advert which then turned into a

real time movie app.”

“Make an app that you could type your shopping list & they could tell you if the products were in stock

instead of browsing for what you want.”

Improve awarenessAccess/Visibility/Education

Mobile has momentum and cannot be ignored as part of a multi-channel customer journey

“Make payment secure, and convince me that it is.”

“Send barcodes so that cash doesn’t need to be used or have an app for

their stores that can be scanned and money automatically deducted.”

Improve security, reassurance, confidence

“I want quicker loading times and fewer links.”

“Was very slow.”

“Took too long to fill out the online form. To small on my mobile.”

Improve usability

Epilogue

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SKOPOS MTrack - Base: 521 (wave 4) (UK Active Digital Society)Q. O/S and Device code auto-captured.

SKOPOS MTrackTM

7% completed this survey via a mobile device

Mobile (5%)/Tablet (2%)

PC/Mac

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