The list of social, mobile, and now local apps, gadgets, games and networks that have become part of most consumers’ lifestyles is virtually endless. And all of them affect shopping behaviors. Social networks have become legendary for their ability to influence purchasing decisions. Price-hunting on smartphones is standard operating procedure for most shoppers, and location-based services are beginning to attract nearby shoppers – often times right out of one store and into another down the block with a more compelling offer. Caught in the middle of these transformative behaviors is the retail store. Our stores truly are under siege. This presentation looks at how stores can fight back by leveraging these tools to engage, entertain, and transact more business with more shoppers.

1. Stores Under Siege:
The Rise of SoMoLo Shopping
Lessons Learned from Early Attempts to
Engage these Savvy Shoppers
#CommerceInMotion

2. What is a
SO
MO
LO
Shopper?
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3. SOCIAL
MOBILE
LOCAL
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4. SoMoLo Behaviors and Expectations
SOCIAL MOBILE LOCAL
Read a Look for Nearby
Discuss Review Inventory
On Social Sites
&Prices
Compare
Products
i
Investigate
A Use Maps to
About
this Product Find Stores
Share item Info B
Group
Deals
Review Receive
Shop through __
__ Shopping 25% Local
Social __
__ Lists off Offers
Games
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5. Where Are These
“SoMoLo” Shoppers?
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6. They’re
Everywhere…
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7. Polling Question #1
• Which stage of implementation best describes your
organization‟s status with regard to SoMoLo shoppers?
a) We currently have no specific strategy and/or we are just
experimenting with different ideas
b) We have a strategy in place and are beginning to execute
specific programs designed to engage the SoMoLo shopper
c) We have a fully developed strategy and are implementing
SoMoLo programs today
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8. “Tools of the Trade”
The Latest SoMoLo Trends and
their Impact on the Store
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9. Smart Devices
are Everywhere
50B
worldwide by 2020
*Cisco
50%
of Americans will have a
Smartphone by the holidays
*Nielsen
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10. (35M and Counting)
Tablets Emerge
68%
of tablet owners say they have used
their tablet to make a purchase
*e-tailing Group
vs.
48%
of Smartphone
owners
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11. 17B
downloads in 2011
*Forrester
Apps, Apps
& More Apps
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12. Cracking the Code
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13. 14M US mobile users scanned
a QR code in June 2011
*Comscore
6.2%
of total mobile
audience
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14. Location, Location,
Location
65M
Americans use mobile or social
location-based services
*Pew Research
55%
of Smartphone users
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15. photo circa
1937
Augmenting Reality
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16. Increasing Traffic
12.2M
Shopping Reviews
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17. creates “infinite”
shelf space
Bringing The Shelf to Life
#CommerceInMotion 17

18. 3-D Imagery Delivers
(Big) Visual Impact
700M
media impressions for one night event
in London and New York
*F@st Company
#CommerceInMotion 18

19. The Games People Play
62M
US Internet users play at least one
27%
game on a social network monthly
*eMarketer
of the online
audience
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20. Countless
Conversations
Swirl…
BRAND
THE
CONVERSATION
PRISM
…on a
-Brian Solis & JESS3
Plethora of
Platforms
#CommerceInMotion 20

21. Polling Question #2
• Which of the following SoMoLo tools do you believe will
have the biggest impact on your stores next year?
a) Smartphones
b) Tablets
c) Social networks, apps, and games
d) Location-based apps and marketing
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22. Stores Are
STORES
BRAND
Under Siege
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23. Online Category Share is Growing
~50%
computer hardware and software,
music and video, books
~20% electronics, toys, baby products
~15%
apparel, greeting cards, party
supplies, office products
~10% sporting goods and cosmetics
#CommerceInMotion 23

24. m-Commerce: Relentless Growth
U.S. m-Commerce Sales
($US Billion)
Source: Barclays Capital
$2.9 $5.3 $8.8 $14.0 $21.0 $28.7
2010 2011 2012 2013 2014 2015
#CommerceInMotion 24

25. t-Commerce: Compelling Early Numbers
the average iPad conversion rate is
7x iPad shoppers purchase
that of smartphone devices
*Shopatron
Dual owners buy on mobile twice
as often as single owners.
“Duals” made >20 mobile
purchases in the last year.
50%
more than traditional web users
*Shopatron
#CommerceInMotion 25

26. s-Commerce: Explosive Growth Looms
U.S. s-Commerce Sales
($US Billion)
Source: Booz & Co.
$1.0 $3.0 $5.0 $9.0 $14.0
2011 2012 2013 2014 2015
#CommerceInMotion 26

27. Daily Deals: Here to Stay
U.S. Daily Deal Revenues
($US Billion)
Source: BIA/Kelsey
$.87 $1.25 $1.73 $2.34 $3.08 $3.93
2010 2011 2012 2013 2014 2015
#CommerceInMotion 27

28. Social Gaming: Already a $1B Business
2011 Social Gaming Revenues
Advertising
Lead Gen
$192M
Virtual Goods
$653M $248M
2010: $856M
2012: $1.32B
*eMarketer
#CommerceInMotion 28

29. The Bottom Line? Share of Wallet Will
Continue to Shift Online
U.S. Online Retail Forecast
($US Billion) 15%
15%
14%
13%
12%
11%
Source: Forrester
$176 $197 $218 $240 $259 $279
2010 2011 2012 2013 2014 2015
(% of totals exclude grocery)
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30. Analysts forecast a
2.2%
Decline in store traffic
during 2011 holiday season
*ShopperTrac
Foot Traffic Under Siege
#CommerceInMotion 30

31. 55%
of Retail associates indicated that
shoppers were better connected
to consumer information than
in-store associates
*Motorola Shopper Survey 2011
Service Under Siege
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32. 28%
of store visits end with an average of
$132
unspent
Deal-habituated behavior
Smartphones influence
Out-of-stocks
39%of all walk-outs
*Motorola
Limited store associate assistance
Long check-out processes
*Motorola Shopper Survey 2011
Conversions Under Siege
#CommerceInMotion 32

33. Polling Question #3
• Which of the following situations is creating the most
challenges for your stores today?
a) Reduced foot traffic
b) Consumers having more knowledge than employees
c) Customers shopping competitors on mobile phones
inside your store
d) Social, mobile, local apps from competing retailers or
brands
#CommerceInMotion 33

34. The Good News:
A SoMoLo Showcase
Interesting and Successful Examples
from Around the World
#CommerceInMotion

35. Stop & Shop: Smartphone as In-Store
Shopping Assistant
• In-store shopping app where
consumers can scan, shop, tally
and check out via mobile device
– Integrated w/budgets, shopping lists
• Shoppers receive “while they shop”
personalized in-aisle offers
– Based on past purchasing history
Will eventually
eliminate the need
for custom devices
in use today
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36. Shopkick: The Store’s New Best Friend?
How Shopkick Works
• Users see a list of nearby
participating stores
– “Kickbucks” earned just for entering
(no check-in required)
• Inside, stores offer rewards for
specific shopping behaviors
– Scanning a poster or product bar code
– Special discounts on specific products
– Time-based promotions
#CommerceInMotion 36

37. Shopkick: The Store’s New Best Friend?
• 2.3M active users 2,000,000
• 700M product views in year one
• 7M product scans in store
• Users open the app 14 times a month
– Review products from 16 stores each time
• Once a Shopkick user is in a store,
conversion rates are high
One retailer reports
750,000
$50Min measurable
incremental revenue
Active Shopkick Users
Since August 2010 Launch
*Shopkick
*Mashable
110,000
August 2010 October 2010 January 2011 July 2011
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38. MyTown: Fun, Games, Impressions
How to Play MyTown
• 4M users build their own virtual towns
from actual buildings & businesses
– Checking in earns virtual cash
• Cash buys virtual properties & products
• Property owners collect rent from
users who check-in
– Properties and products
– 35M Branded virtual items
consumed every week
“Real-World Monopoly”
#CommerceInMotion 38

39. H&M on MyTown: Brand Impressions
and Store Traffic
• Whenever near an H&M
store, virtual goods from the
Blues collection appeared
– Players earned points
for product check-ins
• Players also received offers
for real goods available in
nearby stores
– Points for scanning in-store
product bar codes
10.6M Impressions · 350,000 Store Check-ins · 700,000 Product Scans
#CommerceInMotion 39

40. Instagram Makes Phone Cameras Relevant
Wildly Popular Photo Enhancing and Sharing App for iPhone
10M one-tap
1.3M
pics shared
active
users sharing every day
#CommerceInMotion 40

41. Bergdorf Goodman Makes Instagram
Relevant to their Store
Share Your Shoe Obsession
“Isn’t that the secret to the absolute perfect pair?
You never know what adventures they hold.”
• Photo sharing campaign
– Consumers use Instagram to
take/edit/post photos of BG shoes in
various locales throughout the city
• Primary goals:
– Promote newly expanded shoe salon
– Brand awareness
• Geotags map each photo to
“Shoes About Town” site
#CommerceInMotion 41

42. Customers have
embraced the
campaign…
First 2 Weeks
650 Photos
8,000 Followers
#CommerceInMotion 42

43. Clienteling = SoMoLo Salespeople
• Arming sales associates with
customer history, product
information, CRM tasks, etc.
• Ensuring exceptional selling
and service
– Pre-Sale
Personal outreach, appointment
setting, visit prep
– During
Recommendations, cross-sells,
wish lists, preferences
– Post-Sale
Thank You outreach, satisfaction
inquiry, next visit planning
#CommerceInMotion 43

44. SoMoLo Salespeople = LIFT
63%
larger transactions
33%
more repeat visits
3.5x
annual spend *Raymark
#CommerceInMotion 44

45. Luminate: Content for 3 Trillion Images
Ads, content, social tools overlay online images
“image apps" turn static
images into dynamic and
interactive experiences
#CommerceInMotion 45

46. Luminate: The Dawn of i-Commerce?
Publish Tag Shop
4,000 publishers
150M visitors/month
30B image views/year >100 different merchants:
Macy’s
*TechCrunch Zappos, Nordstrom, Gap, Pip
erlime, etc.
#CommerceInMotion 46

47. Blippar: More than a Blip on A/R Radar
A new augmented reality app –
with an intriguing twist
• Image recognition-enabled
augmented reality
• Advertisers can now engage
consumers without compromising
designs with awkward tags
and markers
– Print ads, store
signs/posters, billboards, and product
packaging
#CommerceInMotion 47

48. Cadbury Brings “Eye Candy” to the Shelf
• Chocolate bars become an
interactive, 3D game on the
shopper‟s Smartphone
• “Qwak Smak” is played directly
on product packaging
– No markers, no shelf tags
• Just point the phone at a
Cadbury product and Qwak
Players submit Smack will „blipp‟ from wrapper
game scores into
a drawing for to screen as if stuck to the bar
prizes
#CommerceInMotion 48

49. SCVNGR: On the Hunt for Engagement
“A Game Layer on Top of the World”
• Virtual scavenger hunts
– Utilizes LBS to push contextual
treks, questions and challenges to
game players
• Businesses and brands can design
custom scavenger hunts catered to
their customers and locations
– Ongoing
– Promotional
– Special Events
#CommerceInMotion 49

50. Game On! At Buffalo Wild Wings
“Home Court Advantage”
• 12-week March Madness campaign
• Numerous store-based challenges
– Photos of friends, trivia, games
• Social integration throughout
– Rewards for completing
• Extremely popular with customers
– 184,000 players at 730 locations
• 1,288,000 challenges completed
• 30% returned to play multiple times
– 100M social impressions
– 3.6 years brand engagement in stores
*Mashable
#CommerceInMotion 50

51. SHOPBOX: Redefining Local and Mobile?
The Far Reaches of Pop-Up Retail
• A repurposed bright green shipping
container
• Completely unattended
• Visitors browse items from the giant
Intriguing
automat‟s plate glass window
potential for event
marketing? – They register on iPads attached to the
sides of the container
• To purchase, customers text
message their order and the products
are shipped to their homes
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52. Lessons Learned
Insights and Ideas
#CommerceInMotion

53. Key Objective for SoMoLo? Interaction
Integration
Seamless, collaborative online and offline experiences
Notification of offers, opportunities, product lineup changes
Alert customers
Traffic
Relentlessly seek opportunities to improve store traffic
Education about products, features, programs
Inform shoppers
Relationshipsand add value to bring them back
Engage, entertain
Access when, where, how, and on the devices THEY prefer
Be available
Community local influencers and advocates to build networks
Identify and embrace
Transactions (and every salesperson) with conversion tools
Arm each channel
#CommerceInMotion 53

54. “Mashops”: the Store’s Best Weapons?
Retailers must fight back by creating a mashup of
the best Web-based and in-store shopping experiences
– Interactive digital displays
– Video assistants
– Internet devices
– Social networking technologies
– Location-based services
–
–
Salesforce empowerment tools
Wi-Fi networks
54%
of shoppers surveyed want to
try a mashop service in the store
*Cisco
#CommerceInMotion 54

55. “Always On” Consumers Require
“Always On” Marketing
• New paradigm: Marketing = Media
• The relevance of Fire and Forget campaigns executed
through traditional media will continue to diminish
• More and more of marketing‟s time, resources and
energy need to be managed in “Always On” mode
– Persistent customer engagement
– Regularly nurtured relationships
– Constant community building
– Tireless new customer acquisition
#CommerceInMotion 55

56. What if…
Polaroid had
created
Instagram?
*Jon Thomas, Storytelling
56

57. What if…
Dole had
created Fruit
Ninja?
*Jon Thomas, Storytelling
57

58. What if…
Whole Foods
had created
FarmVille?
*Jon Thomas, Storytelling
58

59. About Commerce in Motion
CommerceInMotion.com
A thought leadership program
developed by/targeted to supply
chain and retail executives
#CommerceInMotion 59

60. A Framework for Commerce in Motion
Executive’s Guide to
Commerce in Motion
now available online
60

61. RedPrairie All-Channel Commerce
#CommerceInMotion

62. Questions?
David.Bruno@RedPrairie.com
#CommerceInMotion