mobility in retail today: connect with customers to drive more revenue
DESCRIPTION
Growing retail sales depends on your ability to create captivating shopping experiences. Join Cisco for this session where you’ll get insights on customer behavior and how to use mobility to transform store operations and increase profits. You’ll hear the latest research from the Cisco Consulting Services’ annual shopper survey about what moves the retail revenue needle and why. Plus Bob Friday, CTO of Cisco’s Wireless Networking Group, will discuss new ways to capture that revenue and deliver a superior customer experience with groundbreaking Wi-Fi and mobile technologies.TRANSCRIPT
Mobility In Retail Today: Connect With Customers To
Drive More Revenue
Presented by
Session sponsored by
#CCSeries13
About CCS 2013
ü 9 Webinars, 4 Days
ü Sessions covering Mobile,
Social, Store Ops,
X-Channel, and more
ü Featuring industry
analysts and consultants
ü Free for Retail executives
www.retailtouchpoints.com/connected-consumer-2013
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About Retail TouchPoints
ü Launched in 2007
ü More than 25,000 subscribers
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insightful content
ü Free Resources such as White Papers,
E-book, Webinars, Research and
Podcasts
www.RetailTouchPoints.com
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Today’s Panelists
Jon Stine Director, Cisco Consulting Services Cisco Systems
Andrew Gaffney Editorial Director Retail TouchPoints
MODERATOR
Bob Friday VP and CTO, Wireless Networking Group Cisco Systems
© 2013 Cisco and/or its affiliates. All rights reserved. 7 © 2013 Cisco and/or its affiliates. All rights reserved. 7
Mobility in Retail Today Connect with Customers to Drive More Revenue
Jon Stine Director, Cisco Consulting Services
May 20, 2013
Bob Friday VP and CTO, Wireless Networking Group
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
1
2
3
Smart Mobility and Retail: Where’s the Value, and Why?
• Yes, they’re shopping with smartphones. Especially Gen Y.
• 15% CAGR US Smartphone shoppers, 2012-2015
No surprise.
• Approach Mobility as a critical element in cross-channel strategy.
• What you must win: mobile research, especially in store.
What decisions will you influence, and when?
• The most-desired by shoppers • Three value opportunities
1. Decision influence 2. Transaction / payment 3. In-Store behavior analysis
Get ahead of it now
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9 9
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015 Total
Source: eMarketer, 2012
By 2014 99.4M mobile
subscribers using phones to shop
38% of all US >15 years
95% of those will be using smartphones
US Smartphone Shoppers
Number of US Shoppers (M)
In 2012 11% smartphone percentage
of total US E-Commerce revenue
In 2012
1.1% smartphone percentage of total US retail revenue
Source: ComScore, 2013 Source: Cisco Consulting, 2013; National Retail Federation, 2012
Who and How Many? 15% CAGR for US Smartphone Shoppers, 2012-15
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
Percentage of respondents doing now or interested in doing
Source: Cisco IBSG, 2012
Eight in Ten
Digital Mass Market
97%
PC at home
47% 47%
Tablet at home
TV screen in store
46% 46%
Phone in store
Phone at home
Phone on the go
48% 54%
Touch-screen in
store
64% 96% 95% 90% 93%
Über Digital PC at home
Tablet at home
Phone on the go
Phone at home
TV screen in store
98%
Phone in store
79%
Touch-screen in
store One in Ten
Who and How Many? Smartphone Shopping the Norm for Über-Digitals
MOBILE AT THE MASS TIPPING POINT
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11
§ 40% research in the store, purchase online § ≈ 1/3rd shoppers using smartphones to shop
§ 11% don’t shop without them
What’s the Impact? How Do You Catch and Keep?
Source: Cisco IBSG primary research, 2012; Forrester, 2012; National Retail Federation, 2012
Service–Support Transact The
Shopping Journey
Online (all screens)
Store Call Center
CATCH AND KEEP The Dangerous Transi.on
Online (all screens)
Research—Decide Aware
65% 90% TODAY’S STRATEGIC ISSUE
Channel Preference
RESEARCH ONLINE
STORE-BASED REVENUE
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
What’s the Impact? The Evolution of the Cross-Channel Journey Continues
USA ‘11: Do It Now / Interested
Source: Cisco IBSG, 2011-12 Doing now Interested
Search Buy USA ‘12: Do It Now / Interested
PC Store 65% 17% 57% 17%
Store Online PC 40% 19% 38% 19%
Mobile Online PC 33% 13% 26% 18%
Doing now Interested
Mobile Store 29% 17% 24% 21%
Kiosk Store 18% 30% Click ‘n Collect 19% 27%
+ 21% YOY
+ 27% YOY
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13 13
By 2016 52.3% US retail revenues influenced by or transacted
thru internet
4X more influence than transactions
Up to 34% of segment revenues influenced or
transacted by smartphones
Sources: Forrester 2012; Deloitte, 2013
Nearly Half of the Apparel Digital
Commerce Thru
Smartphones *Source: Research and Markets, 2012; forecast of US apparel retail revenues of $396.93B in 2016
What’s the Impact? Smartphones to Influence or Purchase 20% Retail Dollars
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14 14
2012
61% mobile subscribers most likely to use the smartphone
in the store
53% on the way to the store
It’s all about Right-Now
Decision-Making
Sources: : Deloitte, 2012; Cisco IBSG, 2013
What’s the Impact? Smartphones Influence Immediately
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15 15
2011 44% of mobile research is in
the store
Of those who researched in the store . . .
43% visited same-store site
40% visited diff-store site 38% visited a price
comparison app
How Do You Catch and
Keep? Source: iConsumer, 2011, Cisco IBSG 2013
What’s the Impact? The Key is Winning In-Store Research
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
Investing in Store Mobility: Most-Desired Concept Overall Retail
How do you prefer to access information
on your mobile device?
§ 21% mobile web § 12% mobile app § 20% either way
2012 Cisco “Catch and Keep” Digital In-Store Concept Survey, US Respondents Tested six digital concepts, including automated in-store pick-up, tablet-based assistance, in-department interactive screens to assist selection, and personal mobile shopper. Top-Ranked Overall: Personal Mobile Shopper Use mobile device in store to get offers and coupons; scan product code for online product information, ratings, reviews, etc.
Source: Cisco IBSG, 2012-2013
© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17 17
Her Store Remote Control
Mobile Web
Access
Mobile Purchasing
Store Finder
Personal Entry
RecogniFon
Text Alerts events * coupons
Social Rewards
Personal Scrapbook coupons
points * looks lists
Product Availability
Sourcing, Fit Go-‐Withs
Store Way-‐Finding
Financial Wallet
TRAFFIC ANALYSIS
ONLINE INTEGRATION
ONLINE INTEGRATION
INTERACTION WITH PHYSICAL PRODUCT,
FIXED SCREENS
Investing in Store Mobility: A Vision for Mobile Transformation
© 2013 Cisco and/or its affiliates. All rights reserved. 18
Mobile Voice Mobile Data
Wi-Fi Cellular
© 2013 Cisco and/or its affiliates. All rights reserved. 19 Source: Cisco Visual Networking Index 2011
Each user to generate about
/ month (Compared to 63MB today)
Nomadic and Indoor
of the time users are within Wi-Fi coverage
Mobile data to grow
2015 2010
About
Will be video Mobile data grow rate over fixed IP traffic growth
© 2013 Cisco and/or its affiliates. All rights reserved. 20
Convergence of Wired, Wi-Fi and Cellular
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2010 2011 2012 2013 2014 2015
Fixed/Wi-fi (39% CAGR) Fixed/Wired (24% CAGR) Mobile Data (92% CAGR)
46.1%
46.2%
7.77%
32% CAGR 2010–2015
Pet
abyt
es /
Mon
th
Source: Cisco Visual Networking Index (VNI) Global IP Traffic Forecast, 2010–2015 (Wi-Fi History)
2007
© 2013 Cisco and/or its affiliates. All rights reserved. 21
19 out of 20 smartphones support Wi-Fi
50% of smartphone usage is
already on Wi-Fi
2010 2011 0%
50%
100%
23% 50%
80% of the time users are within Wi-Fi coverage
Mostly nomadic use
Sources: Cisco Visual Networking Index, 2011; Bango Inc., February 2011; North Carolina State University, Cisco IBSG 2011
© 2013 Cisco and/or its affiliates. All rights reserved. 22
Connected Consumer Experience
SP Mobility
Enterprise Mobility
© 2013 Cisco and/or its affiliates. All rights reserved. 23
Location Analytics? Location-Based Services? Multichannel Strategy?
© 2013 Cisco and/or its affiliates. All rights reserved. 24
• Location Accuracy is a distribution: Avg., Std. Deviation, Tail • While UWB is very accurate, it is an overlay • The pure indoor client technologies are a threat but … • Fingerprinting is approaching its limits
Network Assisted Location
© 2013 Cisco and/or its affiliates. All rights reserved. 25
© 2013 Cisco and/or its affiliates. All rights reserved. 26
© 2013 Cisco and/or its affiliates. All rights reserved. 27
© 2013 Cisco and/or its affiliates. All rights reserved. 28
802.1x/802.11i
Next Generation Hotspot
802.11u Pre Association
Pre Authentication Local Service Discovery
Reliable Secure Seamless Profitable Wi-Fi authentication experience on par
with Cellular
Cellular / Wi-Fi roaming user experience
Encrypted Wi-Fi user experience
Mobile Context Aware platform
EAP-SIM, EAP-TLS, EAP-TTLS
Roaming
Encrypted Wi-Fi Link
ENGAGE DETECT CONNECT
$
Next Generation Hotspot
© 2013 Cisco and/or its affiliates. All rights reserved. 29
Guest Presence Guest Access Guest Experience
Three Stages to Engagement
Mobile device detection,
registration
Seamless, secure
Wi-Fi onboarding
Location-based content and
services
Engage Detect Connect
© 2013 Cisco and/or its affiliates. All rights reserved. 30
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Pre-Authentication: Network Services Discovery on the Device
3G
© 2013 Cisco and/or its affiliates. All rights reserved. 31
• Local Services Discovery
Wifi
Shops
Dining
Services
Mall Map
Local Services
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
© 2013 Cisco and/or its affiliates. All rights reserved. 32
Wifi
Shops
Dining
Services
Mall Map
Local Services
Shops
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Local Services Discovery
© 2013 Cisco and/or its affiliates. All rights reserved. 33
Local Services
Somemall.com/shops
CLOTHING
Cotton On
Country Road
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Pumpkin Patch
Victory Jeans
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Local Services Discovery
© 2013 Cisco and/or its affiliates. All rights reserved. 34
Mall Promenade
Featured Search Services Amenities Map
Victory Jeans: 20% OFF entire store!
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Turn-by-Turn Indoor Navigation
• Location-based Web Engagement
© 2013 Cisco and/or its affiliates. All rights reserved. 35
Mall Promenade
Featured Search Services Amenities Map
Hello Dan, Welcome back to RJM!
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Turn-by-Turn Indoor Navigation
• App “Wake-Up”
© 2013 Cisco and/or its affiliates. All rights reserved. 36
Featured Search Map Services Amenities
Product Locater
Promotions
Preferences
Store Map
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Personalized App
© 2013 Cisco and/or its affiliates. All rights reserved. 37
Welcome Product Search
Men’s Sweaters
Search
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Integration with Product Databases
© 2013 Cisco and/or its affiliates. All rights reserved. 38
• Turn-by-Turn Navigation Based on Location
RJM
Fitting Rooms
Men
swea
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Women’s Activewear
Featured Search Services Amenities Map
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
© 2013 Cisco and/or its affiliates. All rights reserved. 39
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Featured Search Services Amenities Map
HOT DEAL!!! Buy One Men’s T-Shirt, Get One Free
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Location-Based App Engagement
© 2013 Cisco and/or its affiliates. All rights reserved. 40
RJM
Fitting Rooms
Men
swea
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Women’s Activewear
Featured Search Services Amenities Map
Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Turn-by-Turn Indoor Navigation
© 2013 Cisco and/or its affiliates. All rights reserved. 41
Lowestprice.net
LowestPrice.net
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Web-Based Engagement
© 2013 Cisco and/or its affiliates. All rights reserved. 42
Lowestprice.net
LowestPrice.net
Logan Wool Sweater
Find it!
Compare Prices Instantly!
RJM Price Match Guarantee.
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Web-Based Engagement
© 2013 Cisco and/or its affiliates. All rights reserved. 43
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Shopper’s Location for High-Touch Engagement
© 2013 Cisco and/or its affiliates. All rights reserved. 44
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Retail Transforming Shopping Experience with Personalized Wi-Fi Services
• Integration with App-Based Mobile Payment Systems
© 2013 Cisco and/or its affiliates. All rights reserved. 45
Cisco Connected Mobile Experiences www.cisco.com/go/cmx
Cisco Internet Business Solutions Group www.cisco.com/go/IBSG
Cisco Retail www.cisco.com/go/retail
© 2013 Cisco and/or its affiliates. All rights reserved. 46
Bob Friday [email protected]
Jon Stine [email protected]
© 2013 Cisco and/or its affiliates. All rights reserved. 47
Thank You
#CCSeries13
Q&A
#CCSeries13
Q&A
Andrew Gaffney Editorial Director Retail TouchPoints
MODERATOR
Jon Stine Director, Cisco Consulting Services Cisco Systems
Bob Friday VP and CTO, Wireless Networking Group Cisco Systems
#CCSeries13
Thank You For Joining Us
www.retailtouchpoints.com/connected-consumer-2013
Social Media for Retail: TranslaFng “Posts” Into Profits Today, 2 PM ET / 11 AM PT
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