Research shows that the majority of us now use our mobile phones while shopping to guide our purchase decisions. Consumers are accustomed to reading reviews and obtaining opinions, and often rely on social networks to influence what they buy. This behavior is happening in-store and means that physical presence is no longer a barrier to losing the sale to your competitors.
This presentation explains how retailers can choose to embrace this behavior, by amplifying the benefits of mobile shopping to increase sales and improve customer loyalty.
The examples and solutions presented demonstrate key benefits for consumers and businesses, both at the point of sale and post-purchase. The essential points to keep in mind are also listed, in order to ensure customer adoption when implementing new mobile retail solutions.
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You Are Losing the Sale: How in-store mobile use costs you money & how you can reverse it to make more $$$
1. YOU ARE LOSING THE SALE
How in-store mobile use costs you money &
how you can reverse it to make more $$$
A presentation by:
VOICES HEARD MEDIA
and
2. KEY POINTS
• The in-store consumer now uses their mobile phone while shopping
to make purchase decisions
• Physical presence within a store is no longer a barrier to competition
• Retailers must look at how to aid and add value to the consumer‟s
shopping experience through mobile
This not only keeps competition out but the consumer shopping within
• By engaging consumers in-store the retailer can also establish a
direct line of communication to aid them in the post purchase phase
The goal here is to more quickly and easily solve customer service
issues in order to reduce returns.
3. Consumer Behavior
• The average consumer today checks
10.4 information sources before
buying(1)
• 70% of Americans say they look at
reviews before taking the next step to
conversion(2)
• Majority of consumers (74%) rely on
social networks to guide purchase
decisions(3)
• Brands with the highest „social media
activity‟ (including reviews) increased
revenues by as much as 18% (4)
Sources
• (1) Social Trends Report 2012, Bazaarvoice, June 2012
• (2) Google, Zero Moment of Truth (http://www.zeromomentoftruth.com)
• (3) Gartner, July 2010
• (4) Media Post News, July 2009
4. How Consumers Are Using
Their Phones While Shopping
52% of adult shoppers use a cell
phone for one of the following 3
reasons while in-store(1) :
• 38% call a friend for advice about
a purchase they are considering
making
• 24% look up reviews of a product
• 25% look up the price of a product
Sources
• (1) The rise of in-store mobile commerce, Pew Research Center
http://pewinternet.org/~/media//Files/Reports/2012/In_Store_Mobil
e_Commerce.pdf
5. 25% Used Their Phone To Compare Prices
Here is what happened after checking the price(1) :
• 37% decided not to purchase the product at all
• 35% purchased the product at the store
• 19% purchased the product online
• 8% purchased the product at another store
Sources
• (1) The rise of in-store mobile commerce, Pew Research Center
http://pewinternet.org/~/media//Files/Reports/2012/In_Store_Mobile_Commerc
e.pdf
6. Proactive Engagement with the Consumer
The retailer has the choice of simply ignoring this behavior, or engaging
consumers on their mobile phone and channeling them into a
controlled environment where they can:
• Amplify the benefits of mobile shopping to increase sales and
customer loyalty
• Reduce the need for consumers to leverage competitor mobile sites
(which increases the likelihood of losing the sale)
• Connect with the consumer at the time of sale which enables them to
stay in communication post-sale
Keys To User Adoption
• Clearly Define the Value to the User
• Make It Easy
7. Consumers – Key Benefits
• Help Me – How can you save the
consumer time
• Entertain Me – Provide an
experience that is easy, portable,
and fun (e.g. while shopping)
• Give Me – Offer a clear value
(deals, coupons, more information)
• Promote Me – Give access to a
community of peers where
customers can help each other and
feel important while doing so
(promotes a high trust factor)
8. Business – Key Benefits
• Brand Awareness – On a
consumer‟s phone and more easily
sharable to social networks
• Capture Leads – Easier product
registrations and opportunities to
capture email addresses
• Revenue – Cross-selling
opportunities, better Customer
service, Reduce returns
• User Data and Analytics –
Understand buying habits
• Customer Loyalty – Proactively
help consumers make better
purchase decisions
9. Joanne visits her local hardware store searching for
a new faucet while remodeling her basement. She
decides on a brand but wants to find more
information about how it compares to others before
making a final decision.
What now?
By scanning the QR code directly on the
packaging (or by typing in a short URL) using
her smartphone, Joanne is given immediate
access to several online resources – videos,
reviews, list of tools needed, promotions,
accessories
THE SOLUTION
• Immediate access to helpful information
with no additional packaging or POP
• Overview of installation process, allowing
Joanne to see what she is getting into
• Access to other customers‟ product
reviews - link to a forum to ask questions
• Easy access to further information about
available installation services
10. Consumers Want:
• To make more informed purchase decisions
• Confidence that they can accomplish a task
and have the necessary tools
• To understand what is included with a
product purchase
• To see what other consumers are saying
about a particular product
• The ability to quickly and easily share with
other involved interested parties (spouse, Businesses Want:
partner, etc.)
• Fewer returns – ensure consumers are
• Ability to find information on their own, i.e.
buying the correct products for their needs
no need to wait or find an associate to help
them • Cross-selling opportunities – consumers
don‟t have to make a return trip to purchase a
necessary item
• More data faster on what is being purchased
and what interest drive conversions
• Better customer experience – this means
repeat business
• Better informed associates – possessing a
clear understanding of the product offering and
explaining the product correctly
11. Product Review App
• Products can be individually shared to shopper‟s
social networks
• In-store shoppers can read additional product
information, view product images, comment and
rate user reviews, and see pricing in one mobile
experience
• Consumers can review and vote on favorite
products as a way to provide feedback for future
buyers
12. Chris‟s mother has asked for him to tackle the
daunting task of plumbing and help her install her
new sink over the weekend. On Saturday, Chris
drives to the store, picks up the sink, and starts to
get his hands on the project. As he starts to install
the supply line, he begins to have trouble.
What now?
Chris has the option to scan a QR
code on the instruction manual to see
short videos to walk him through this
process, or go to a short URL that
links to a help forum to receive
further assistance from other users.
THE SOLUTION
• Consumers save time by having access to helpful resources
• Short step-by-step video instructions allow Chris to skip directly to
to the problem area
• Portable instructions for easy access in confined-space projects
• Real consumers helping each other within a Q&A community
13. Users Want Businesses Want
• Easy way to quickly find the exact • Less Returns
information they are looking for. • Information to quickly identify issues
Preferably visual with audio (Best Case and opportunities
– someone performing the task and
• Data to help predict future results
talking through the process)
• Ability to cross-sell other services
• Confidence that they
are putting the product • Increase product registrations
together correctly • Better Customer Experience
• Easy access (portability)
• No waiting, i.e. having to call phone
number or email for support
• Community – Learn how others have
accomplished the same goal or
resolved a similar issue
14. Enhanced Customer Service App
• Short Instructional videos expand on written
instructions
• Companies are better able to identify and
understand key problem areas, based on data
showing which videos are viewed the most
• By getting consumers to engage via mobile,
brands are able to establish a direct line of
communication
15. User Benefit
• Usability – Go straight to the step that I need help with – now!
• Portability– Easier to review a short video formatted
specifically for mobile platforms
• Quickly access support – register product – provide
feedback
• More likely to share videos that are more targeted and on a
specific subject
• Allows consumers to communicate and see other user
comments on specific topics
Business Benefit
• See which area of the instructions is the most problematic
• Identify and address problems with products BEFORE
return
• Customers helping other customers – reduce customer
service burden
• Proactively communicate with customers – create a dialogue
• Your brand becomes identified as the “facilitator and helper”
• Capture user information
16. • Collect questions from customers
• Create a community where customers
answer each others questions (reducing
customer service workload)
• Facilitate easy product registration -
Reduce the number of steps to register
products from 10 to as little as 2
• Provide incentives for product
registration
• Cross-sell other services, parts and
products through banner ads
• Send coupons directly to customers
• Capture customer data including e-mail
addresses
• Survey or poll users – easy ways for
consumers to provide feedback
17. • In-store use by staff & Associates to encourage
consumers
• Marketing and Messaging
• Uniformity – Adopt approach for multiple
products and not just one
• Make it Easy to Connect – QR codes, short
URL‟s, and within existing company apps
• Reward customers for participating
• Distribution – Provide not
only on mobile but on the
web AND through social
• Make it a Corporate Priority