How to Troubleshoot Apps for the Modern Connected Worker
Mobile Blueprint
1. Mobile Retailing Blueprint
Mobile Retailing Blueprint
A Comprehensive Guide for Navigating the Mobile
Landscape
Version 2.0.0
2011/01/04
A Joint White Paper sponsored by the
National Retail Federation
Verbatim reproduction and distribution of this document is permitted in any medium, provided this notice is preserved.
2. Mobile Retailing Blueprint
This blueprint is the culmination of research by retailers, vendors, and standards organizations,
working together for the benefit of the retail industry. It would not have been possible without
the assistance of the following people:
Chairs
Richard Mader, Chairperson ARTS
Jonatan Evald Buus Cellpoint Mobile
Frank Andryauskas Micro Strategy
Andrew Morris Morris Advisors
David Dorf Oracle Retail
Perry Kramer Retail Consultant
Cathy Medich Smart Card Alliance
Administration
Richard Halter ARTS
Bart McGlothin Cisco Systems Inc
Contributors
Andrew Paradise Aisle Buyer
James Schildknecht CellPoint Mobile
Kristian Gjerding CellPoint Mobile
Amit Chetal Cisco Systems Inc.
Michael Jett Copia Mobile
Scott Hines Copia Mobile
Francisca Vicente-Tamarin El Corte Ingles
Miguel Ligero El Corte Ingles
Nuria Gema Fernandez Fernandez El Corte Ingles
Leonid Rubakhin Epicor
Paul Gay Epson
Mike Julson Escalate Retail
Brian Walker Forrester
Sophie Vu Kony Solutions
Darrell Sandefur Kroger
Dirk Jaede Micro Strategy
Steven Kostrzewski Micro Strategy
George Throckmorton NACHA
Sebastien Taveau NFC Forum/Paypal
Graham Hill Royal Mail
Dennis Stokely Safeway
Tim Hood SAP
Bob Glaser Sears
Arish Ali Skava
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3. Mobile Retailing Blueprint
Evan Schuman StorefrontBacktalk
Mickey Haynes The Home Depot
Jay Heavilon Think ARS
Neil Garnichaud Third Solutions
Roland Faubert Tibco
Rine le Comte To Increase
Asif Batada Verizon Business
Dennis Blankenship Verizon Business
David Tran Verizon Business
Mohammad Khan ViVOtech
Eric Dewey Yum! Brands
Thomas Powell Yum! Brands
Timothy Vogel Yum Brands
Participants
Dean A. Sleeper Accessvia
Gerald Griffin Ahold USA
Jeffrey Fackler Ahold USA
Clif Campbell AT&T
Tona Tsang Canadian Tire
Stephen Smalley Cellpoint Mobile
Sean Xu Cisco Systems Inc.
Will Anguish Darden Restaurants
Sanjeev Hans Darden Restaurants
John O’Dell Darden Restaurants
Chris Ross Darden Restaurants
Ray Carroll DCSG
Clayton (Bud) Russell DCSG
Nuria Gema Fernandez Fernandez El Corte
Juan Jose Monge Fernandez El Corte Ingles
Abram Powelson Family Dollar
Tom Reichert Family Dollar
Patti Freeman Evans Forrester
Sucharita Mulpuru Forrester
Kevin Swanwick Global Bay
Joe Finizio Gorspa
Varsha Anand GS1 US
Al Garton GS1 US
Bernie Hogan GS1 US
Rich Richardson GS1 US
Nav Bains GSMA
Virginia Carmon IBM
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4. Mobile Retailing Blueprint
Roland Domer IBM
Greg Fitzpatrick IBM
Johanna Koester IBM
Robin Schwartz IBM
Diana Dib IBS Soft Solutions
Didier Serra Inside Fr
Charles Walton Inside Fr
Ed Gawronski Kohls
Bjorn Hildahl Kony Solutions
Madhav Mehra Kony Solutions
Nada Aried Limited Brands
Steve Miles Massachusetts Institute of Technology
Robert Bauer MBC / RSPA
Jim McNicol Micro Strategy
Vic Miles Microsoft
Marty Ramos Microsoft
Chi Park Mobile Systems
Rajarshi Chatterjee Motorola
Gopal Kiruthika Motorola
Dana Warsona Motorola
Henry Miller NCR
Tommy Miller NCR
Dennis Paisley NCR
Peter Coster NFC Forum
Mike Gatti NRF
David Hogan NRF
Karen Shunk NRF
Murtaza Ghadyali Reflexis Systems
John Coloe Roam Data
Abhishek Ranjan Safeway
Krystal Kolodziejak sasktellabs
Bob Glaser Sears
Joan Broughton Shop.org
Bill Klearman Sonic Corp.
Mike Parsel Sprint
Jerry Rightmer Starmount Systems
Venkat Gopikanth Tata Consultancy
Barbara Sanders The Home Depot
Domenic Cutillo Toys-R-Us
Asif Batada Verizon Business
Joel De Guzman Verizion Business
Joe (Joseph) Kearney Verizon Wireless
Copyright 2010-2011 National Retail Federation. Page iv
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6. Mobile Retailing Blueprint
This blueprint was developed with assistance from the following organizations:
The Association for Retail Technology Standards
(ARTS) of the National Retail Federation is a retailer-
driven membership organization dedicated to creating
an open environment in which both retailers and
technology vendors work together to create
international retail technology standards.
GS1 is a leading global organization dedicated to the
design and implementation of global standards and
solutions to improve the efficiency and visibility of
supply and demand chains globally and across
sectors.
NACHA supports the growth of the ACH Network by
managing its development, administration, and
governance. NACHA brings together payments system
stakeholder organizations to encourage the efficient
utilization of the ACH Network and develop new ways
to use the Network to benefit its diverse set of
participants.
NRF's mission is to advance and protect the interests
of the retail industry and to help retailers achieve
excellence in all areas of their business. As the world's
largest retail trade association and the voice of retail
worldwide, the NRF’s global membership includes
retailers of all sizes, formats, and channels of
distribution as well as chain restaurants and industry
partners from the United States and more than 45
other countries.
The NFC Forum was formed to advance the use of
Near Field Communication technology by developing
specifications, ensuring interoperability among devices
and services, and educating the market about NFC
technology.
The Retail Advertising Marketing Association (RAMA),
a division of the National Retail Federation, provides
unique networking opportunities, industry research,
and educational programming for retail advertising and
marketing professionals. NRF members are able to
take advantage of the added value of participating in
RAMA as a benefit of membership with NRF.
The Retail Solutions Providers Association is the only
association dedicated to the retail technology industry.
Members include resellers, distributors, hardware
manufacturers, software developers, consultants, and
service providers who bring retail technology solutions
to the marketplace.
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7. Mobile Retailing Blueprint
Shop.org, a division of the National Retail Federation,
is a member-driven trade association whose exclusive
focus is to provide a forum for retail executives to share
information, lessons learned, new perspectives,
insights, and intelligence about on-line and
multichannel retailing.
The Smart Card Alliance is a not-for-profit, multi-
industry association working to stimulate the
understanding, adoption, use, and widespread
application of smart card technology.
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8. Mobile Retailing Blueprint
CONTENTS
1. EXECUTIVE SUMMARY ................................................................................................................................1
1.1 CONSUMER OPPORTUNITIES .............................................................................................................................1
1.2 OPPORTUNITIES WITHIN THE RETAIL ESTABLISHMENT ...................................................................................4
1.3 HOW THIS DOCUMENT CAN HELP ...................................................................................................................5
2. INTRODUCTION ..............................................................................................................................................7
2.1 WHAT IS MOBILE RETAILING? .........................................................................................................................7
2.2 MOBILE DEVICES DEFINED ..............................................................................................................................8
2.3 MOBILE APPLICATION TECHNOLOGY ............................................................................................................. 11
2.3.1 Browser-Based Applications................................................................................................................ 11
2.3.2 Message-Based Applications ............................................................................................................... 12
2.3.3 Downloaded and Native Applications ................................................................................................. 13
2.3.4 Thin-Client Architecture ...................................................................................................................... 14
2.4 MOBILE RETAIL AND SOCIAL MEDIA ............................................................................................................. 14
2.5 MOBILE RETAIL APPLICATIONS ..................................................................................................................... 16
2.5.1 Mobile Marketing Applications ........................................................................................................... 17
2.5.2 Mobile Commerce Applications ........................................................................................................... 18
2.5.3 Mobile Operations Applications .......................................................................................................... 19
2.5.4 Mobile Application Design .................................................................................................................. 19
2.5.5 Day-in-the-Life Examples .................................................................................................................... 20
2.5.6 Mobile Market Statistics ...................................................................................................................... 22
2.5.7 Mobile Retailing Maturity Model ........................................................................................................ 26
2.5.8 Keys to Mobile Success ........................................................................................................................ 28
3. MOBILE MARKETING ................................................................................................................................. 30
3.1 ADVERTISING AND MARKETING..................................................................................................................... 30
3.1.1 Brand Marketing .................................................................................................................................. 30
3.1.2 Digital Signage .................................................................................................................................... 30
3.1.3 Augmented Reality ............................................................................................................................... 31
3.1.4 Example Applications .......................................................................................................................... 31
3.1.5 Technology and Standards Employed .................................................................................................. 32
3.1.6 Benefits and ROI .................................................................................................................................. 33
3.1.7 Implementation Considerations ........................................................................................................... 33
3.2 CUSTOMER SERVICE ...................................................................................................................................... 34
3.2.1 Store Locations and Hours .................................................................................................................. 34
3.2.2 Example Applications .......................................................................................................................... 36
3.2.3 Wish Lists, Shopping Lists, Gift Registries .......................................................................................... 38
3.3 SHOPPING TOOLS ........................................................................................................................................... 43
3.3.1 Case Studies ......................................................................................................................................... 44
3.3.2 Technology and Standards Employed .................................................................................................. 45
3.3.3 Benefits and ROI .................................................................................................................................. 45
3.3.4 Implementation Considerations ........................................................................................................... 45
3.4 PRODUCT INFORMATION ................................................................................................................................ 46
3.4.1 Review Product Information Transaction Process .............................................................................. 47
3.4.2 Product Information from Friends....................................................................................................... 49
3.4.3 Share Product Information Transaction Process ................................................................................ 49
3.4.4 Product Comparisons .......................................................................................................................... 50
3.4.5 Compare Product Information Transaction Process ........................................................................... 50
3.4.6 Case Studies ......................................................................................................................................... 51
3.4.7 Technology and Standards Employed .................................................................................................. 52
3.4.8 Benefits and ROI .................................................................................................................................. 52
3.4.9 Implementation Considerations ........................................................................................................... 52
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9. Mobile Retailing Blueprint
3.5 LOYALTY PROGRAMS .................................................................................................................................... 53
3.5.1 Loyalty Program Transaction Process ................................................................................................ 54
3.5.2 Case Studies ......................................................................................................................................... 57
3.5.3 Technology and Standards Employed .................................................................................................. 58
3.5.4 Benefits and ROI .................................................................................................................................. 59
3.5.5 Implementation Considerations ........................................................................................................... 60
3.6 PROMOTIONS AND COUPONS .......................................................................................................................... 61
3.6.1 Approaches to Mobile Offers ............................................................................................................... 62
3.6.2 Case Studies ......................................................................................................................................... 63
3.6.3 Technology and Standards Employed .................................................................................................. 64
3.6.4 Benefits and ROI .................................................................................................................................. 64
3.6.5 Implementation Considerations ........................................................................................................... 64
4. MOBILE COMMERCE .................................................................................................................................. 66
4.1 MOBILE COMMERCE CATEGORIES ................................................................................................................. 66
4.2 BROWSER-BASED M-COMMERCE ................................................................................................................... 66
4.3 APPLICATION-BASED M-COMMERCE .............................................................................................................. 68
4.3.1 Advantages........................................................................................................................................... 68
4.3.2 Disadvantages...................................................................................................................................... 69
4.3.3 Future Considerations ......................................................................................................................... 71
4.4 CASE STUDIES ................................................................................................................................................ 71
4.4.1 Mobile Ticketing .................................................................................................................................. 71
4.4.2 Other m-commerce Applications ......................................................................................................... 73
4.4.3 Technology and Standards Employed .................................................................................................. 79
4.4.4 Benefits and ROI .................................................................................................................................. 80
4.5 IMPLEMENTATION CONSIDERATIONS ............................................................................................................. 80
4.6 OTHER KEY CONSIDERATIONS ....................................................................................................................... 82
4.6.1 Easy Payment Solutions ....................................................................................................................... 82
4.6.2 Integrated Order Management and Customer Care ............................................................................ 82
4.7 THE VIRTUAL STORE ..................................................................................................................................... 82
4.8 PARENTAL APPROVAL.................................................................................................................................... 84
4.9 MOBILE PAYMENT OVERVIEW ....................................................................................................................... 84
4.9.1 Advantages of Mobile Payment ........................................................................................................... 84
4.9.2 Types of Mobile Payment ..................................................................................................................... 85
4.10 MOBILE REMOTE PAYMENT ...................................................................................................................... 85
4.10.1 Enabling Remote Payment .............................................................................................................. 86
4.10.2 Message-Based Remote Payment .................................................................................................... 87
4.10.3 Browser-Based Remote Payment .................................................................................................... 89
4.10.4 App-Based Remote Payment ........................................................................................................... 89
4.10.5 Funding and Settlement Accounts ................................................................................................... 89
4.10.6 Third-Party Providers of Alternative Payments.............................................................................. 93
4.10.7 Wireless Carrier Billing .................................................................................................................. 94
4.11 MOBILE PROXIMITY PAYMENT.................................................................................................................. 97
4.11.1 Mobile Contactless Payment ........................................................................................................... 97
4.11.2 EMV and Mobile Payments........................................................................................................... 102
4.11.3 Bar Code Payments....................................................................................................................... 104
4.11.4 Numeric Code Payments ............................................................................................................... 107
4.12 IMPLEMENTATION CONSIDERATIONS ...................................................................................................... 109
4.12.1 Mobile Proximity Payment Considerations .................................................................................. 109
4.12.2 Store Requirements ....................................................................................................................... 110
4.12.3 Roadblocks to NFC Mobile Payments .......................................................................................... 111
4.12.4 Security ......................................................................................................................................... 113
4.13 MOBILE PAYMENTS ECOSYSTEM............................................................................................................. 114
4.13.1 Payment Account Issuer ................................................................................................................ 116
4.13.2 Trusted Service Manager .............................................................................................................. 116
4.13.3 Mobile Network Operator ............................................................................................................. 116
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10. Mobile Retailing Blueprint
4.13.4 Retailers ........................................................................................................................................ 116
4.14 ALTERNATIVE AND MOBILE PAYMENT PROVIDERS AND APPROACHES ................................................... 117
5. MOBILE OPERATIONS .............................................................................................................................. 119
5.1 MOBILE POINT OF SALE ............................................................................................................................... 119
5.1.1 Mobile POS Examples ....................................................................................................................... 120
5.1.2 Technology and Standards Employed ................................................................................................ 122
5.1.3 Benefits and ROI ................................................................................................................................ 123
5.1.4 Implementation Considerations for Mobile Point of Sale.................................................................. 123
5.2 DIGITAL RECEIPTS ....................................................................................................................................... 123
5.2.1 Digital Receipt Examples................................................................................................................... 124
5.2.2 Technology and Standards Employed ................................................................................................ 124
5.2.3 Benefits and ROI ................................................................................................................................ 124
5.2.4 Implementation Considerations for Digital Receipts ......................................................................... 125
5.3 WORKFORCE MANAGEMENT........................................................................................................................ 125
5.3.1 Workforce Management Examples .................................................................................................... 126
5.3.2 Technology and Standards Employed ................................................................................................ 127
5.3.3 Benefits and ROI ................................................................................................................................ 128
5.3.4 Implementation Considerations for Workforce Management ............................................................ 129
5.4 INTERNAL COMMUNICATION........................................................................................................................ 129
5.4.1 Internal Communication Examples.................................................................................................... 129
5.4.2 Technology and Standards Employed ................................................................................................ 129
5.4.3 Benefits and ROI ................................................................................................................................ 130
5.4.4 Implementation Considerations for Internal Communications .......................................................... 131
5.5 MOBILE APPROVALS .................................................................................................................................... 131
5.5.1 Technology and Standards Employed ................................................................................................ 132
5.5.2 Benefits and ROI ................................................................................................................................ 132
5.5.3 Implementation Considerations for Mobile Approvals ...................................................................... 133
6. MOBILE IMPLEMENTATION STRATEGY ........................................................................................... 134
6.1 MOBILE KEY PERFORMANCE INDICATORS ................................................................................................... 135
6.1.1 KPIs for Customer-Facing Mobile Services ...................................................................................... 135
6.1.2 KPIs for Staff-Facing Mobile Services .............................................................................................. 136
6.2 SUMMARY OF IMPLEMENTATION CONSIDERATIONS ..................................................................................... 136
6.3 DEVELOPMENT CONSIDERATIONS ................................................................................................................ 138
6.3.1 Browser-Based Applications.............................................................................................................. 139
6.3.2 Downloaded Applications .................................................................................................................. 140
6.3.3 Mobile Payment ................................................................................................................................. 142
6.3.4 Other Application Types .................................................................................................................... 143
6.4 THE PATH TO MOBILE .................................................................................................................................. 143
6.4.1 Mobile Governance............................................................................................................................ 144
6.4.2 Achieving Control of the Mobile Channel ......................................................................................... 145
6.4.3 Privacy, Authentication, and Security................................................................................................ 146
6.5 MOBILE AS A BUSINESS DRIVER FOR SOA AND THE CLOUD ........................................................................ 148
6.5.1 Creating Services for Reuse ............................................................................................................... 149
6.5.2 Moving Retail Services into the Cloud ............................................................................................... 150
6.5.3 Delivering and Accessing Mobile Services in the Cloud ................................................................... 151
6.6 WI-FI AND WIRELESS LAN FOR NETWORK RELIABILITY ............................................................................ 152
6.6.1 Wireless LAN Benefits for Retail Environments ................................................................................ 153
6.6.2 Implementation Recommendations .................................................................................................... 154
6.6.3 Design Considerations for a Reliable Wireless LAN Deployment ..................................................... 155
7. MOBILE STANDARDS ................................................................................................................................ 157
7.1 TECHNOLOGY DETAILS ................................................................................................................................ 159
7.1.1 Wi-Fi and ZigBee ............................................................................................................................... 160
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11. Mobile Retailing Blueprint
7.1.2 Near Field Communication ............................................................................................................... 161
7.2 CONTACTLESS SMART CARD STANDARDS ................................................................................................... 161
7.3 ASSOCIATION OF RETAIL TECHNOLOGY STANDARDS .................................................................................. 162
7.3.1 Service Oriented Architecture (SOA) Blueprint ................................................................................. 162
7.3.2 Cloud Computing Blueprint ............................................................................................................... 163
7.3.3 ARTS Data Model .............................................................................................................................. 163
7.3.4 ARTS UnifiedPOS .............................................................................................................................. 164
7.3.5 ARTS XML ......................................................................................................................................... 164
7.4 GS1 .............................................................................................................................................................. 165
8. TERMS AND ACRONYMS ......................................................................................................................... 166
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12. Mobile Retailing Blueprint
Figures
Figure 1: Evolution of Customer-Retailer Touch Points ................................................................ 2
Figure 2: Number of NTT DOCOMO iD Subscribers and Payment Terminals ............................ 4
Figure 3: The Retail Store of the Future ......................................................................................... 8
Figure 4: U.S. Device Type and Operating System Mixes ............................................................. 9
Figure 5: Key Device Hardware Trends ...................................................................................... 11
Figure 6: Two Sears Web Sites: Non-Mobile (left) and Optimized for Mobile (right) .............. 12
Figure 7: Three Retailers’ Apps: Sears (left) Target (center) and Gap (right) ............................ 13
Figure 8: Thin Client Architecture ............................................................................................... 14
Figure 9: Mobile Retailing Classifications .................................................................................. 16
Figure 10: Mobile Retailing Ecosystem ...................................................................................... 17
Figure 11: Mobile Marketing Applications ................................................................................. 18
Figure 12: Mobile Commerce Applications ................................................................................ 19
Figure 13: Mobile Operations Applications ................................................................................ 19
Figure 14: U.S. Smartphone Operating System Share, Q3, 2010 ................................................ 22
Figure 15: Predicted Smartphone Market Share by Region ........................................................ 23
Figure 16: Mobile Technologies on Your Radar Screen ............................................................. 24
Figure 17: Gartner April 2009 Projections of Mobile Payment Technologies ............................ 26
Figure 18: Retail Mobile Maturity Model (Summarized) ........................................................... 27
Figure 19: 2-D Bar Code on a Billboard ....................................................................................... 31
Figure 20: Process Flow for a Device without Geolocation or GPS Capabilities ........................ 35
Figure 21: Process Flow for a Device with Geolocation or GPS Capabilities ............................. 36
Figure 22: Wish Lists, Shopping Lists, Gift Registries ................................................................ 39
Figure 23: List Creation Transaction Process ............................................................................... 39
Figure 24: List Consumption Transaction Process ....................................................................... 40
Figure 25: Likelihood of U.S. Consumers to Use Mobile Phones for Shopping.......................... 47
Figure 26: Review Product Information on e-commerce Site Transaction Process ..................... 47
Figure 27: Review Product Information with Retailer’s Application Transaction Process.......... 48
Figure 28: Retrieve Item Information from a Picture Transaction Process .................................. 48
Figure 29: Read Friend's Ratings Transaction Process ................................................................. 49
Figure 30: Post to My Friend's Site Transaction Process ............................................................. 50
Figure 31: Product Comparison Transaction Process .................................................................. 50
Figure 32: Example Loyalty Program Process Flow .................................................................... 55
Figure 33: Motorola Mobile Loyalty System ............................................................................... 56
Figure 34: Options for Enabling Phones with an NFC Chip ........................................................ 62
Figure 35: Best-Practice Mobile Web High-Level Architecture .................................................. 67
Figure 36: Typical Mobile Web High-Level Architecture ........................................................... 68
Figure 37: Mobile Applications High-Level Architecture............................................................ 71
Figure 38: Purchasing a DSB Ticket By Using an iPhone Application ....................................... 72
Figure 39: Simplified Architecture for DSB Ticketing Application ............................................ 73
Figure 40: Mobile Payment Access Technologies and Funding Options .................................... 85
Figure 41: Mobile Remote Payment (Stored Value) Payment Flow ............................................ 87
Figure 42: ACH Debit Purchase Transaction Process ................................................................. 92
Figure 43: ACH Credit Payment Transaction Process ................................................................ 93
Figure 44: Using Alternative Payment at Buy.com ..................................................................... 94
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13. Mobile Retailing Blueprint
Figure 45: Example of PSMS Ticketing Flow ............................................................................. 96
Figure 46: Mobile Phone with Wallet Software ........................................................................... 99
Figure 47: Example of NFC-Enabled Mobile Phone Provisioned with
Wallet and Secure Element .................................................................................... 100
Figure 48: NFC Phone Wallet Used in BART/Jack in the Box Pilot Program .......................... 101
Figure 49: Mobile Proximity Payment at Starbucks .................................................................. 106
Figure 50: Mobile Proximity Payment at Target ....................................................................... 106
Figure 51: NFC Compatible Contactless Sticker ........................................................................ 111
Figure 52: NFC MicroSD Card................................................................................................... 112
Figure 53: Mobile Contactless Transactions: Provisioning and Purchase .................................. 115
Figure 54: mPOS Checkout at Apple......................................................................................... 120
Figure 55: Using an iPhone to Check Out at Magic Beans ....................................................... 121
Figure 56: Magnetic Stripe Reader for an iPhone ..................................................................... 122
Figure 57: Workforce Management Model ............................................................................... 126
Figure 58: Simplified Mobile Approval Flow ............................................................................ 133
Figure 59: iPhone and Sony Ericsson K790i Display Areas ...................................................... 140
Figure 60: Overview of Mobile Applications Built on a Centralized Mobile Platform ............. 146
Figure 61: SOA and the Cloud as Key Building Blocks for Mobile Services ........................... 149
Figure 62: Moving Services into the Cloud ............................................................................... 151
Figure 63: Accessing Services with a Mobile Device ............................................................... 152
Figure 64: Contactless Payments Hardware and Software with Associated Standards.............. 157
Figure 65: Provisioning............................................................................................................... 158
Figure 66: Wi-Fi and ZigBee Access Points............................................................................... 160
Figure 67: ARTS Standards ........................................................................................................ 162
Figure 68: SOA Platform and Services on a Cloud Infrastructure ............................................. 163
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14. Mobile Retailing Blueprint
1. EXECUTIVE SUMMARY
The question of whether consumers will adopt smartphones and other mobile devices is
becoming less relevant. The more relevant question is “What is the best way for retailers
to capitalize on consumers’ rapidly evolving use of their mobile devices?” Mobile phones
are changing the way retailers, suppliers, and consumers both communicate and do
business. Our phones are always with us—and always on, connecting retailers to current
and potential customers, regardless of location or time of day. A survey conducted by
BIGresearch found that consumers plan to spend $688.87 per person during the 2010
holiday season, and 25 percent of adult smartphone owners plan to research or make
purchases using a mobile device. That figure jumps to 45 percent when the subject
population is young adults between the ages of 18 and 24.1
Adoption rates for mobile devices are accelerating so fast that forecasts from just a few
years ago are completely outdated. In 2005, mobile payments totaled $155 million and
were forecast to hit $10 billion by 2010.2 Actual mobile payments for 2010 are on track
to be closer to $100 billion and double, to $200 billion, in 2011. In addition, mobile
payments for digital and physical goods are forecast to reach almost $630 billion by
2014.3 There is no doubt that mobile technology for retail is no longer a trend, but a
necessary way of doing business.
1.1 Consumer Opportunities
Over the past year, early adopters of mobile technology such as Target4 and The Home
Depot5 have redefined how they want to interact with customers in their stores, on the
Web, on mobile devices, and on social networks. These retailers (and other innovative
retailers) recognize that mobile can be integrated into their business models to enhance
the overall relationship between their brands and their customers. Other retailers have
chosen to add mobile to current store, Web, or catalog channels without full integration.
These retailers may take that approach simply because it is more straightforward than full
integration, or it may be part of a broader strategy, to wait and see whether full
integration yields a stronger competitive advantage.
To understand the current use of mobile technology and where it is headed, it is important
to understand where we have been. Many retailers began the relationship with their
customers through their retail stores or a catalog. Communication took place on TV and
radio and through print advertising, in-store signage, and interaction with store associates.
Marketing brought the customer into the store, and associates conducted the transaction
and satisfied the customer. The relationship was a fairly low-technology, one-to-one
relationship. As retailers grew and technology evolved, this channel grew to encompass
multiple channels.
1
http://nrf.com/modules.php?name=News&op=viewlive&sp_id=1016
2
http://juniperresearch.com/viewpressrelease.php?pr=14
3
Juniper Research, "Mobile Payments Markets: Strategies & Forecasts 2010-2014.”
4
http://www.mobilecommercedaily.com/target-is-2010-mobile-retailer-of-the-year
5
http://risnews.edgl.com/retail-news/Home-Depot-s-$64-Million-Mobile-Investment-Rolls-Out-to-1,970-
Stores56966
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15. Mobile Retailing Blueprint
Slightly more than 10 years ago, e commerce over the Internet started to enter the
e-commerce
mainstream; as the technology was adopted more widely, the level of sophistication of
consumer shopping behavior and expectations grew. Ten years ago, it might have been
acceptable for an associate to tell a customer that the store did not match the prices on the
store’s Web site because “it is a separate business.” Five years ago, it might have been
acceptable for an associate to honor the prices on the store’s Web site for a customer but
not the prices on a competitor’s Web site. Today, customers may not even set foot in a
retailer’s store if they are able to find what they need to purchase using a mobile device.
ey
Even if the customer enters the store, the customer can easily use a mobile device to scan
the bar code of an item of interest, find and purchase it at a lower price elsewhere, and
leave the item sitting on the store shelf.
The optimum goal for retailers is to achieve a singular brand experience for customers,
regardless of the technology used to interact with that brand. This means that legacy
channel-based systems, business processes, and organizational silos must continue to
based
evolve (Figure 1).
Figure 1: Evolution of Customer
: Customer-Retailer Touch Points
While customers will not require a retailer to offer multiple integrated channels to win
their business, leading retailers must focus on ways to strengthen the relationship
between their brand and their customers and not necessarily focus on each channel
individually. Consumers continue to use mobile devices not only to research products and
pay for purchases, but also to interact with retailers in ways that increasingly connect to
social media sites and third-party pricing and promotion applications. Consumers with a
party Cons
mobile device can use apps (like the ones from Amazon or eBay, which are integrated
with apps such as Red Laser) to find a better price while standing in the middle of a retail
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16. Mobile Retailing Blueprint
store.6 Whole Foods Markets’ customers puzzled by an ingredient can use their phones
to find and display recipes using that ingredient and even restrict their choices to cater to
special food allergies or nutritional requirements, such as gluten or lactose intolerance.
Shoppers headed for Target can search a friend’s gift registry for the perfect gift, locate
the nearest store that has that item in stock (right down to the department and aisle
location of the item within that store), and check the gift off the registry list—all on a
mobile phone.
Phones can store and display loyalty, reward, and club membership cards (which most
retailers then scan directly from the screen) and match a health condition with the correct
over-the-counter medication. Some retailers have even enlisted the help of their
consumers to retrieve competitors’ pricing using third-party apps that award the customer
for taking a snapshot of a product display or scanning the bar code of an item on sale at a
competitor’s location.
Using phones or other mobile devices for payment is advantageous for both consumers
and retailers. Payment by phone can be combined with additional services to increase
sales, speed up transaction times, and strengthen customer loyalties. Sales can close
more quickly when shoppers looking at a product can access product information and
reviews (for example, using their phones to read a bar code) and then pay for the product
on the spot. Consumers using mobile phones as a payment method enjoy the convenience
and security of not having to carry cash or a payment card. In Europe and Asia,
consumers can reserve seats on a train, purchase their tickets, and use those tickets to
board the train while carrying nothing but a phone. When consumers pay by phone,
payment information that adheres to ARTS standards can be integrated into the retailer’s
back-office systems, coordinating all-important inventory, customer relationship,
enterprise resource planning, and financial data.
The mobile phone market has moved beyond smartphones to tablets such as the iPad,
providing consumers with more computing power in their purses and pockets than ever
before. Near Field Communication (NFC) technology, which enables short-range
wireless interaction between devices (such as for payments), is rolling out to the U.S.
market. The next version of the Android operating system (version 2.3) supports NFC,7
and Apple is rumored to be close behind. Mobile payments technology has been
commercially available in Japan since at least 2005, with mobile Suica-card enabled
devices and NTT DOCOMO’s iD mobile credit payment service. (The company issued a
press release in September 2010 announcing the achievement of 15 million subscribers
since the program’s launch.) In addition, 37.5 million subscribers are using handsets
equipped with the contactless payment technology, which represents over 60% of the
company’s subscriber base (Figure 2).8
6
A recent Wall Street Journal article, “Phone Wielding Shoppers Strike Fear Into Retailers” is a great point
of reference on the subject.
http://online.wsj.com/article/SB10001424052748704694004576019691769574496.html
7
http://android-developers.blogspot.com/2010/12/android-23-platform-and-updated-sdk.html
8
http://www.nttdocomo.com/pr/2010/001484.html
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17. Mobile Retailing Blueprint
Figure 2: Number of NTT DOCOMO iD Subscribers and Payment Terminals
As more devices around the world are equipped with a mobile wallet, the number of
consumers carrying payment and loyalty cards electronically will also increase.
Consumers benefit—their cards are not only secure, they are easily cancelled and
replaced if lost: one call, text message, or remote application does it all. Retailers
benefit—mobile wallets can help solve the critical problem of wallet share and represent
opportunities to offer customers new incentives to purchase, new ways to purchase, and
new ways to pay.
To achieve universal consumer acceptance, mobile processing must be standardized
around the world. What works in the United States must also work in Asia, the Pacific
Rim, Europe, the Middle East, and Africa. There is only one way to ensure that
processing is the same everywhere, and that is by creating and adopting global standards.
Fortunately, numerous organizations, such as GS1, the NFC Forum, ARTS, and the
recently formed Isis project, are already working to develop and promote the necessary
standards. This document will also continue to evolve to support the needs of retailers.
1.2 Opportunities Within the Retail Establishment
As technology evolves and consumer sophistication increases, retailers have an
opportunity to leverage mobile technology to streamline operations and generate
incremental revenue. Functions such as distribution, operations, merchandising,
marketing, human resources, and customer service already benefit from the integration of
mobile devices with existing systems.
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18. Mobile Retailing Blueprint
For example, making the point of sale (POS) mobile allows customers to avoid lines and
retain receipts electronically, while retailers save on labor and materials costs, and sales
associates can locate and assist customers anywhere in the store. Sales associates can
also use mobile devices to clock in and out or sign up for automatic alerts from their
company’s scheduling system when open shifts are available. Integration with workforce
management capabilities, including appropriate labor forecasting, labor scheduling, and
labor management and budgeting systems can optimize both daily internal operations and
corporate-driven tasks at a store.
The retail supply chain will also benefit from the use of mobile technology, particularly
when the manufacturers of specialized mobile devices incorporate new features into
mobile phones, such as better bar-code and RFID readers. Both data and voice can then
be transmitted effectively to receive and pick merchandise and track merchandise
movement from warehouses to stores and within stores.
As with any new technology, retailers face integration challenges. Over the years, many
retailers have accumulated multiple systems as point solutions and hired large onshore
and offshore workforces to support them. Business processes and development lifecycles
have been introduced to preserve this web of systems, while the demands of the web
expand more and more quickly. Retailers now have an opportunity to alter their
fundamental business models, to include mobile technology, even more significantly than
they did to accommodate the introduction of the Web 10 years ago.
As retailers address the challenges of integration, software companies like MicroStrategy
are partnering with their retail customers to enable seamless integration of mobile devices
with their best-in-class business intelligence platforms. MicroStrategy’s platform has
enabled mobile business intelligence for years using Blackberry handheld devices, and
the platform has supported the iPhone and iPad since early 2010. The company has
chosen to invest heavily in research and development to integrate emerging mobile
device technology. Using their software, retailers experience multisource capabilities
expressed in business terms, a consistent analytic foundation that can be shared and
reused across common functional areas, and security that protects customer information.
Retailers can use the platform to conduct a variety of transaction types. This approach to
integration on a single platform means minimal risk and fast return on investment (ROI)
for retailers.
1.3 How This Document Can Help
This updated version of the Mobile Retailing Blueprint is a product of the NRF Mobile
Retail Initiative. The mission of the Initiative is to be a catalyst for mobile-inspired
innovation that enhances the retail shopping experience and improves internal business
processes. This retailer-led initiative will guide and direct the industry in the
dissemination of mobile-related best practices and the development of standards and
documentation for the purpose of maximizing benefits and minimizing implementation
expense, ongoing maintenance, and fees.
Creating this document involved retailers, vendors, analysts, and standards organizations.
The Blueprint relates the shared experiences of retailers and vendors who have
experimented with mobile applications, leverages their experience, and tailors it to retail.
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19. Mobile Retailing Blueprint
The Blueprint was created by members of GS1; NACHA; the NFC Forum;, the NRF and
its ARTS, Shop.org, and RAMA divisions; RSPA; and the Smart Card Alliance to help
retailers understand the current mobile retailing landscape, recognize the types of
applications on the horizon, and determine how best to embrace this new technology.
Based on the technology’s rapidly increasing pace of change, we anticipate that future
updates to this material will be published online to capture the most current information
within the industry.
Retailers should use this document as a reference, to understand what is possible using
mobile devices. The Blueprint can help readers answer the following questions:
• How can our company create a total-enterprise mobile plan that improves our
business?
• What capabilities do mobile devices currently offer, and how can we create a
policy for privacy and security?
• What types of mobile applications help consumers shop, and how do we
differentiate the needs of teenagers from the needs of our guests who are young at
heart?
• How are mobile payment technologies evolving?
• What types of mobile applications help associates be more efficient?
• What technologies and standards apply in the mobile field?
• What implementation options should be considered?
The reader will come away with a better understanding of how mobile devices can and
are affecting retailing and more ideas about how this trend can help the reader’s particular
business.
The different sections in this document contain the following information:
• Section 2, “Introduction,” introduces the topic of mobile retailing in more depth.
• Section 3, “Mobile Marketing,” and Section 4, “Mobile Commerce,” describe
some of the customer-facing applications to which mobile retailing lends itself
and explore options for implementing different applications. Section 4 also
describes the different mobile payment methods, their advantages and
disadvantages, and the implications of adopting one method rather than another.
• Section 5, “Mobile Operations,” applies the concepts of mobile retailing to
internal retail operations and illustrates how adopting a mobile approach can
improve efficiency and drive incremental revenue.
• Section 6, “Mobile Implementation Strategy,” focuses on implementation,
detailing some of the technical and business process challenges that
implementation can entail.
• Section 7, “Mobile Standards,” describes the technology standards that underlie a
successful implementation effort.
• Section 8 defines the terms and acronyms used both in this document and in
discussions of mobile retail in general.
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20. Mobile Retailing Blueprint
2. INTRODUCTION
2.1 What is Mobile Retailing?
Mobile devices are ubiquitous, outnumbering credit cards and bank accounts around the
world. People depend on their mobile devices, and they carry them everywhere,
including into stores. The capabilities of these devices, combined with the ease with
which applications that support retail functions can be downloaded to them, create an
opportunity to leverage mobile devices for shopping, improved analytic data, and more
effective communications.
The e-commerce revolution of the late 1990s did more than just open up an additional
channel through which retailers could sell products. It created new opportunities for
analyzing shopper behavior. It facilitated new ways to share product information and
help customers make purchase decisions, taking advantage of the Internet connection to
communicate personally with the customer.
As mobile devices became more sophisticated, they became capable of e-commerce
functionality. In addition, mobile customers can be identified automatically, through
integration with mobile network operators (MNOs) such as Verizon, AT&T, and
Vodaphone. Many e-commerce features, such as detailed product information, product
comparisons, and customer reviews, are commonly available to a customer in a store who
has a mobile device, with an additional benefit: immediate customer gratification. When
the store offers the best deal, the customer can take the merchandise home right now,
with no shipping or handling costs. Mobile payment functionality, targeted promotions,
interactive displays, and digital receipts are quickly becoming new standards for retailers.
Mobile retailing has become an important and valuable means for retailers to reach
consumers. Retailers who ignore mobile retailing risk being ignored in return by current
and future generations of shoppers. Retailers must also begin to understand how social
networking and competitors’ applications affect their business, not just how to streamline
the interaction between their own internal lines of business.
Retail stores are not going to disappear anytime soon, but they are ripe for change.
Figure 3 illustrates what the retail store of the future could look like, leveraging mobile
devices such as media shopping cards, consumer phones, associate dashboards, and
scales. Mobile devices will play a large part in future commerce.
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21. Mobile Retailing Blueprint
Access Points Consumer Employee/Mgr
Media Phones Dashboards
Streaming Video Shopping Location Based
Carts RFI Services
D
RFID Shelf
Labels
Self assisted
ordering
In-store
back office
Shelf Edge
RFID Gondola
Displays XBOX 360
Labels
$399
Bottom of Basket
Detection
Holographics
In-store
kiosks
Electronic
Menu Boards
Bluetooth Interactive Self Serve
Wireless POS Cashless Biometric
Customer Contactless Readers
Peripheral Scales Displays Payments
Figure 3: The Retail Store of the Future
The degree to which physical stores retain their dominance in the long run may be up for
debate. Consider, for a moment, the general purpose of a retailer. A retail organization
exists to identify products that meet consumers’ perceived needs. A great deal of time is
spent designing and sourcing those products, transporting them, and performing all kinds
of analysis to determine optimum pricing and appropriate promotions for various
customer segments, in order to drive sales. Now, imagine that your customer has the
ability to purchase goods directly from the source, using a mobile device or computer,
thus bypassing the need to enter a store. When all of the operating costs of maintaining a
store are considered and compared to what a next-generation supplier might have to
spend on shipping goods directly to the consumer, that supplier may still be able to
charge lower prices than the retailer ever could.
There will always be certain product categories that consumers will prefer to touch before
making the decision to purchase. In addition, shopping is entertainment for many people,
and the social experience of stores and shopping malls is very much part of a world-wide
consumer culture. There will also always be product categories that are only sold in their
own branded stores, because the exclusivity of those brands demands nothing less.
2.2 Mobile Devices Defined
This Blueprint uses the term “mobile device” to refer to any mobile device that can
connect to the Internet, including smartphones, portable music and video players,
handheld gaming devices, laptop and ultra-mobile personal computers, e-book readers,
and tablets. Consumers are more readily upgrading their smartphones, which have
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22. Mobile Retailing Blueprint
advanced to the point of being handheld computers whose capabilities exceed those of
the computers carried on board the first space missions. Figure 4 shows the distribution
of smartphones, feature phones (less flexible smartphones), and other connected devices.
It further distinguishes smartphones by their different operating systems.
Source: http://www.millennialmedia.com/research/mobilemix/thankyou/
Figure 4: U.S. Device Type and Operating System Mixes
Note that Millennial Media defines a connected device to be a handheld device that can
access the mobile Web but is not a mobile phone, including the iPod Touch, Sony PSP,
Nintendo DS, and the iPad. Since the first version of this Blueprint, adoption rates for
tablet devices have increased dramatically. The iPad is the market leader, but Samsung,
RIM, Dell, HP, and others have all introduced their own tablets. Originally dismissed by
critics as a larger iPhone, the iPad has become a consumer favorite and is also used by
executives at many companies. Software companies such as MicroStrategy9 and
retailers10 alike are recognizing the value of arming their employees with anywhere,
anytime access to information that creates a competitive advantage.
The typical mobile device includes most of the features described in Table 1 and
illustrated in Figure 11Figure 5. Various combinations of these features can be leveraged
to provide a richer experience for shoppers.
9
http://www.businessweek.com/technology/content/nov2010/tc2010111_549315.htm
10
http://risnews.edgl.com/retail-news/Home-Depot-s-$64-Million-Mobile-Investment-Rolls-Out-to-1,970-
Stores56966
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23. Mobile Retailing Blueprint
Table 1: Mobile Device Features
Feature Significance
Bluetooth wireless Connects mobile phones to other devices (such as a headset or POS)
connectivity without a cable. Bluetooth allows customers and employees to be “hands-
free.” It is a type of Near Field Communication.
Still or video camera Can take pictures of products, receipts, and bar codes for item search,
comparison or employee task management, and pictures or video for loss
prevention.
Compass Can direct a person to a store and recognize the direction in which a person
is facing. Can also be used for augmented reality applications for marketing
and operations.
Two-way e-mail Can deliver receipts and coupons to customers. Also useful for task
messaging management and field manager collaboration.
Interactive display Includes the ability to run a browser or native applications. Some phones
include multitouch screens or screen addressable keys that provide
enhanced functionality.
Internet access Enables most applications to be useful. The mobile device can be connected
to the Internet either through a high speed cellular network (3G, 4G) or Wi-Fi.
Location recognition Can determine location using GPS satellites, cell tower triangulation, or Wi-Fi
reference. Useful for targeted marketing, store location lookup, and in-store
product location.
Multimedia Messaging Can send and receive rich content, such as pictures or audio. An alternative
Service (MMS) to communicating through native apps or a mobile Web browser.
Near Field Enables the exchange of data between devices over about a 10-cm range.
Communication (NFC) Useful for contactless payment and other contactless communication.
Short Message Can send text. Most mobile phones can use SMS to send and receive text
Service (SMS) messages.
Audio bar codes Allows data, such as text information describing Web site URLs, to be carried
and transmitted on sound waves in the audible range (music and spoken
word). NTT DOCOMO has been researching and developing "Audio
Barcode."*
* http://www.nttdocomo.com/technologies/future/audio/index.html
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24. Mobile Retailing Blueprint
Source: Michael King, The Mobile Scenario: A New Age of Mobile Services, Gartner Inc., October 29, 2010.
Figure 5: Key Device Hardware Trends
2.3 Mobile Application Technology
Mobile applications are categorized according to one of four implementation methods:
• Browser-based
• Message-based
• Downloaded to a device
• Preinstalled on the device (referred to as native applications)
2.3.1 Browser-Based Applications
Browser-based applications run in the browser on a mobile device. A retailer may often
want to provide information that is available on the retailer’s Web site to mobile
consumers or associates. Smartphones equipped with a browser can access these
applications; however, their small screen sizes and keyboards provide a less satisfactory
experience than when the application is accessed on a computer. In this case, people are
better served with a mobile-specific user interface that is optimized for the capabilities of
the typical smartphone.
For example, compare the Sears Web site that is displayed on a computer (found at
www.sears.com), shown on the left in Figure 6, with the mobile version, shown on the
right (found at m.sears.com).
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25. Mobile Retailing Blueprint
Figure 6: Two Sears Web Sites: Non-Mobile (left) and Optimized for Mobile
(right)
Mobile browsers are currently including support for two important technologies, HTML5
and WebKit. These technologies allow retailers to create mobile shopping sites that take
full advantage of smartphone capabilities without being tied to a specific mobile
operating system (OS). Mobile Web site developers will thus be able to provide a rich,
“application-like” user experience on mobile Web sites. These technologies are currently
available in the Apple iPhone OS, Google Android OS, and Palm WebOS devices, as
well as in new RIM BlackBerry devices and other smartphones.
2.3.2 Message-Based Applications
The second type of application, the message-based application, uses Short Message
Service (SMS) or Multimedia Messaging Service (MMS) to exchange messages with the
user. While not nearly as easy to use as the other types of applications, message-based
applications work on the largest number of mobile phones. It is often more cumbersome
to have to start the browser on the phone and then access a URL than to send a simple
text message. Mobile applications such as Shopkick use SMS to alert users of nearby
deals. Almost all mobile phones throughout the world support SMS for short messages.
Services like TextBuyIt, used by Amazon, can interact with consumers, who can find and
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26. Mobile Retailing Blueprint
order products over the mobile phone while standing in the middle of a competitor’s
store.
2.3.3 Downloaded and Native Applications
Mobile applications can also be either downloaded applications or native applications.
That is, a ready-to-run (compiled) application (typically referred to as an app) built for a
specific mobile device is either downloaded to the device or preloaded and present when
the device is purchased. These applications generally afford the user a better experience,
because they take full advantage of the particular mobile device’s unique capabilities.
But since these applications are device-specific, a separate application is required for
every different type of device, thus increasing development costs exponentially. In
addition, When applications are upgraded or new applications are developed, a
mechanisms is required to deliver them to the devices on which they run.
Figure 7 illustrates three different apps.
Figure 7: Three Retailers’ Apps: Sears (left) Target (center) and Gap (right)
Almost every mobile OS vendor, such as Apple, RIM/Blackberry, Microsoft’s Windows
Mobile and Google/Android, has created application stores, where users can find and
download applications for a specific purpose written specifically for their phones.
Companies are also developing “write once, run anywhere” functionality for mobile
device application development. These companies allow the developer to create
customer-facing and associate-facing apps once and deploy them on mobile devices from
different vendors. The evolution of mobile device technology and the continuing OS wars
mean that cross-platform integration is necessary to ensure that all of a retailer’s
customers are treated equally.
Handsets with NFC chips also provide a secure and simple application solution. A
variety of applications can be downloaded to the secure element in the phone and
accessed easily. These phones interact with contactless terminals, other NFC devices, or
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27. Mobile Retailing Blueprint
radio frequency (RF) tags, sending and receiving data by tapping. NFC phones have
been available in Asia and Europe through various vendors and are being launched in the
U.S.
2.3.4 Thin-Client Architecture
Clearly, one major challenge of mobile retail is how to support a multitude of mobile
platforms, screen sizes, input capabilities, and customers. One implementation option that
addresses these issues is a client-server architecture that relies on the phone as the client.
In this so-called “thin client architecture,” a server stores customer and business
intelligence about the workflow required for a particular service (e.g., the first screen
shows a catalog, the second screen product detail, the third screen payment options). The
client (the phone) needs only display-related capabilities and input handlers (Figure 8).
Figure 8: Thin Client Architecture
2.4 Mobile Retail and Social Media
Social media marketing has become a standard in today’s retail marketing mix, providing
retailers with a broad range of offerings that can be used to connect to and interact with
customers. Social media tools such as Facebook enable retailers to engage customers and
build communities of interest around their brands while delivering targeted and
personalized offers.
Retailers understand that customers need a reason to interact with their products and
brands. Social networks are the fastest growing engagement point between brands and
customers and will grow more quickly than any other form of interactive marketing.
Retailers are starting to see the benefits of building groups with like demographic
characteristics on social networking sites, such as Facebook, and on mobile social
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28. Mobile Retailing Blueprint
networks, such as Twitter, so that they can communicate more effectively with particular
customers, as opposed to using mass media to transport key messages and new
promotions to the whole market.
Both a mobile strategy and a social media strategy will be at the forefront of a successful
retailer’s market strategy. Successful retailers will learn how to integrate mobile
strategies and social media strategies into a cohesive business strategy. A collection of
social media data points, such as Facebook, Twitter, Groupon, Shopkick, and blogs, will
be critical to customer and prospect interaction.
Mobile is a natural fit for social media, since mobile devices are at the center of how
people communicate. The number of active users of Facebook mobile surpassed 200
million in November 2010, triple the number of users just one year previous.11 Retailers
must therefore understand how to fit mobile into the social media component of their
marketing strategy. More than 56 percent of customers follow a retailer’s online social
media imprint, providing many retailers with a customer following that they can begin to
engage with mobile promotions and incentives.
Mobile can be used to help enlist customers into a retailer’s social network. Customers
can opt into a retailer’s rewards program directly, through the on-line social media
environment, through their mobile phones in a retailer’s mobile Web environment, or by
texting a unique keyword to a particular short code. The objective is to present relevant
messages that encourage customers to sign up for a retailer’s rewards club or program.
For example, a prominently placed window (mobile prompt) embedded on a retailer’s
Facebook fan page could include a request to join the retailer’s Rewards Club. Customers
would not have to move to a new mobile page but could enter core information, along
with their mobile number, directly into the window. Customers would then send the
information and potentially receive in return an immediate incentive, such as a mobile
coupon or a link to multiple offers on the retailer’s mobile Web page. A similar approach
could use a retailer’s Twitter feed; because not all customers have unlimited data plans,
however, retailers might as an alternative embed a static link or banner prompting
customers to opt into the program by sending a unique alias to a dedicated short code.
Both approaches should reward the customer with an immediate incentive.
Retailers should also integrate their social media mobile strategy with their customer
relationship management (CRM) database, to profile customers more accurately based on
their interests and behaviors, and to help manage future two-way communication.
Because customers interact in a number of socially focused channels, such integration
can help retailers understand better which online communities and social networks
customers are frequenting and through which they are choosing to engage with the
mobile offering. This approach to a social media mobile strategy will enable retailers to
extend their current CRM efforts, adding the ability to leverage their community building
activities using the social Web and automate the conversation process. A retailer can
then craft appropriate messages through the different communication channels as part of
a connected conversation.
11
http://blog.facebook.com/blog.php?post=446167297130
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29. Mobile Retailing Blueprint
Both social media and mobile communications have unique attributes. Retailers must be
aware of these attributes to give customers consistent and coordinated information.
Retailers need a single view of each customer to maximize the results of a campaign.
Figure 1 illustrates the separate channel approach; however, retailers who treat social
media and mobile as separate and independent channels, as opposed to connected
components of a brand strategy, will fail to achieve respectable response rates and
weaken their customer relationships, rather than building customer communities.
By recognizing these best practices, retailers will be better positioned to improve the
customer experience, providing a new touch point for customer acquisition and
strengthening loyalty building programs through mobile devices.12
2.5 Mobile Retail Applications
As illustrated by Figure 9, mobile retail applications can be grouped into three categories:
• Mobile marketing (described in Section 3 and Figure 11)
• Mobile commerce (described in Section 4 and Figure 12)
• Mobile operations (described in Section 5 and Figure 13)
Mobile
Marketing
Mobile Mobile
Commerce Operations
Figure 9: Mobile Retailing Classifications
Each category encompasses applications supporting multiple areas of the applications
ecosystem. Although retailers can choose to implement applications dedicated to
fulfilling only the functions in a particular category, it is more common for applications
to support functions in several categories.
The key to driving application adoption is to ensure that applications are designed for
specific needs, rather than attempting a “one-size fits all” approach. A low risk approach
is to focus first on solving the business needs of a specific customer (or other user) group
12
The NRF Mobile Retailing Initiative hopes to publish additional information about social networking in the
next version of the Mobile Blueprint for Retail as well as during numerous webinars and presentations in
2011.
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30. Mobile Retailing Blueprint
with basic functionality, then add more functionality over time as part of an iterative
collaborative development cycle.
Each function in the ecosystem has unique requirements that must be accommodated in
an overall integrated architecture. Payment functions require secure interfaces to an
authorization system, regardless of whether payments are contactless or remote.
Marketing functions must securely interface with a customer or loyalty system for
targeted marketing opportunities. Operations functions must securely interface with the
variety of applications used to operate a store. The supporting applications in all three
categories can reside either on a phone or in a data center accessible over the Internet. As
retailers expand their use of mobile devices, it can be valuable to look for ways to
integrate systems within a platform rather than purchase an additional point solution that
stands on its own and will require incrementally more maintenance over time.
Figure 10 is an overview of the mobile ecosystem.
Figure 10: Mobile Retailing Ecosystem
2.5.1 Mobile Marketing Applications
Mobile marketing applications focus on advertising, marketing, and increasing brand
awareness and loyalty. They also provide product information and shopping tools that
can enhance the retail experience.
Mobile marketing applications can support the areas of the applications ecosystem shown
in Figure 11.
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31. Mobile Retailing Blueprint
Figure 11: Mobile Marketing Applications
Mobile marketing is discussed in Section3.
2.5.2 Mobile Commerce Applications
Mobile commerce applications include mobile payment applications and traditional e-
commerce applications that are accessed from a mobile device. Mobile payment
applications encompass all payments made using the mobile device, including remote
payments and contactless payments.
Mobile commerce applications support the areas of the applications ecosystem shown in
Figure 12.
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