[Slides] Make an App for That: Strategies for Winning Retail Mobile Strategies, by Chris Silva

1. Altimeter Group Webinar #appforthat March 2, 2012 Chris Silva Industry Analyst, Mobile Make An App For That: Strategies For Winning Retail Mobile Strategies

2. Smartphones And Tablets Are Where Users Turn When Shopping © 2012 Altimeter Group

3. Over 2/3 of smartphone users took them to the store with them this past holiday. They spent on average $71 per order when purchasing on their smartphones.

4. People can’t buy smartphones fast enough iPhone 4s: 4M devices in its first weekend, bests Kinect as fastest selling device ever!

5. Smartphone Ownership Continues Meteoric Rise The new mobile customer is overwhelmingly a smartphone customer.

6. Tablets are quickly following Apple’s iPad sold at a rate of 14.8/hr on Black Friday 2011. The pile – if stacked – would be measured in miles.

7. We’re Seeing These Shoppers Grow Rapidly 26% YOY increase 22% YOY increase 15% YOY increase 2011 saw gains on every major shopping day over 2010. Source: Comscore, Q4 2011

8. If You Build It… They’re Already There More than 50% of adults are buying on smartphones today, more than 2/3 have the device in-store, still many aren’t being served. © 2012 Altimeter Group

9. Why Many Are Lagging In The Race © 2012 Altimeter Group

10. Not All Brands Are “Flying High” Altimeter Identified 3 Phases Of Mobile Maturity, Which One Does Your StrategyFeel Most like?

11. The First Step Is Choosing The Right Path Look complicated? It’s not but needs to be undertaken carefully to get on the right path.

12. The Second, Choosing The Right App Engage strategies can provide product information, post-purchase support, or help to provide a presence for retailers and brands with a fully online presence. The focus is on bringing shoppers closer to the brandto drive interaction, not just spend. ENGAGE

13. Different Apps Serve Very Different Purposes These strategies are focused on driving transactions and measured in total purchases, purchase size or frequency, and purchase-per-store metrics. The ROI model is simple — drive purchases and grow the business. ENRICH

14. Image by Zoagli used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zoagli/49894253 What Winning Looks Like © 2011 Altimeter Group

15. Engage: Sephora-To-Go app serves up the ultimate palate of engagement • Sephora-To-Go designed to be the Go-To • “Try on” products virtually • Watch expert tutorials and product demos • View Sephora staff “obsessions” • Scan in-store barcodes and QR codes • Access >1m+ ratings and reviews • Fully integrated with Sephora Beauty Accounts • Locate the nearest Sephora via GPS • And more!

16. Engage: Home Depot designs multi-channel QR code campaign to aid the considered purchase— online and off Home Depot’s campaign spans online and offline media, in-store signage, local events, and more. Once activated, shoppers can access how-to videos, product demos, relevant accessories, buying guides, project guides, even make a purchase.

17. Engage: GE’s Moodometer helps you find just the right bulb

18. Enrich: Overstock.com develops mobile app to promote, complete with scratch-off daily coupons

19. Enrich: Taco Bell joins forces with MTV to offer exclusive sneak-peak award show music and video content As a sponsor of MTV’s Video Music Awards, Taco Bell seized the opportunity to engage customers directly with the product by promoting MTV’s; The campaign yielded nearly a half million scans in a mere 4 weeks.

20. Enrich: Redbox’s 10 Days of Deals mobile campaign drives mass awareness, engagement, sales • Using multiple channels to drive awareness: • 1.5 million texts in 10 days • 400,000 unique participators • 200,000 new Redbox customers

21. Enrich: Tesco customers scan and purchase goods in virtual subway supermarkets Customers scan QR codes to purchase products for same day delivery while in the subway. More than 10K consumers visited using their smartphones. New members rose by 76% after the first implementation and online sales increased by 130%.

22. Focus On Goals, Path Then App © 2011 Altimeter Group

23. Next steps: Where Are You Now? • Where are you today? • What is your endgame? • What should the app be?

24. Next Steps: What Is The Business Seeking? • Where are you today? • What is your endgame? • What should the app be?

25. Next Steps: Building The Best Tool • Where are you today? • What is your endgame? • What should the app be?

26. Choosing strategy • Know thyself • What is the status of mobile today, is this .5 of strategy or iteration 4.5? What have you learned, where are resources allocated? • Business goals • Focus on end goal, enrich and engage can coexist, but should not necessarily do so from the start; • What metrics matter, go beyond downloads to look at active users, cross channel pull through, segmented sales metrics. • App design • Four models are most popular in mobile today among winners doing things differently, there will be more; • Novelty of Experience is most important, solve actual – not perceived – user problems

27. 27 THANK YOU Chris Silva Industry Analyst, Mobile csilva@altimetergroup.com makemobilework.com Twitter: 802dotchris

28. 28 ABOUT US Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. Visit us at http://www.altimetergroup.com or contact info@altimetergroup.com.