Monday, November 18, 2013

Mobile and the Path to Purchase

When retailers hear "mobile commerce", they often cringe at the thought of customers using their mobile devices to showroom while in their store. Showrooming, a problem that some claim the Amazon business model invented, is when customers visit a retail store and search (via Google) or scan the barcode of a product that they like with the goal of finding it, and purchasing it, online for a  cheaper price. 

A recent conference at NYU Stern indicated that retailers should "embrace in-store mobile usage as an opportunity to engage consumers before, during and after purchases." A Kantar executive who spoke on one of the panels at the conference discussed the contextual nature of mobile messaging that is starting to blow up in the mobile commerce space. Retailers are now delivering very personalized messages to customer who download their apps, with the goal of increasing customer engagement and/or improving mobile conversion rates. Key takeaways from the conference included:

1. Before Purchase

  • List making
  • Coupons 
  • Circulars
2. During Purchase
  • Interactive store maps
  • Mobilized customer services (i.e., getting a text when you're next in line, which Wal-Mart is doing)
  • Scan to purchase online (creating the "endless aisle)
3. After Purchase
  • Engagement via mobile loyalty programs (i.e., using gamification to increase brand advocation / customer engagement like Walgreens, who "lets consumers set health goals such as walking a certain amount or getting a flu shot. When they complete a goal, they earn points that can be redeemed in-store")

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