Combat Showrooming with Personalization

Combat Showrooming with Personalization OCTOBER 24, 2013!

Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell!

Mark Tack, Vice President, Marketing, Vibes @MarkTack!

#Showrooming!

2013 Mobile Consumer Trends!

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Source: Vibes 2013 Mobile Consumer Survey – August 2013 ©2013 Vibes All rights reserved. Confidential

Methodology

Showrooming 2.0

Personalization

Mobile relationship management

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Methodology!

Overview

§  Vibes partnered with Equation Research to conduct a quantitative research effort to understand the mobile device usage, shopping habits, behaviors and motivations of the connected consumer.

Methodology §  Fifteen minute online quantitative survey.

§  Respondents recruited via paid national panel sample.

§  Fieldwork conducted July 16-18, 2013.

Sample § Total n=1,000

§ Smartphone owners

§ Ages 18+

§ U.S. residents

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Showrooming 2.0!

#Showrooming!

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The current state of showrooming!

Showrooming — frequency of smartphone use for in-store comparison shopping/purchasing!

Every time I shop!

Most ofthe time! Often! Sometimes! Rarely! Never!

7%

17% 20%

26% 19%

12%

Net 44%!

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Profile of the showrooming shopper!

Children present?!Age!

18 - 24!

20.7%!

15.9%!

25 - 34! 35 - 44! 45 - 54! 55 - 64! 65 or older!

44.2%!

24.7%!

17.7%!23%!

9.4%!14%!

6.7%!

17.5%!

1.2%!4.9%!

Non-showroomers!Showroomers!

Non-showroomers!

Showroomers!

Yes 48.2% No 51.8%

Yes 38.5% No 61.5%

Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000

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Smartphone usage in-store explodes!

Recent in-store behaviors!

33%!Compared prices on a competitor’s website!

2012 2013

49%!9%!

23%!

11%!

20%!

31%!

17%!

27%!

12%!

9%!

10%!

24%!

40%!

49%!

25%!

31%!

19%!

18%!

15%!

Purchased a product from a competitor!

Purchased a product from the store’s website after you’d left the store!

Researched a product on the store’s website!

Looked up a product review!

Used a company’s app in the store!

Scanned a QR Code for product information or an offer!

Checked-in using a location-based service (i.e., Foursquare) to get a deal or offer!

Sent a text message to join a subscription list!

Sent a text message to get more information on a product or offer!

2013!Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,000

2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000

Beyond Showrooming!

Showrooming increased

156% in 2013

SHO

WRO

OM

ING

BEH

AVIOR

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186% increase in new purchases due to in-store text or QR scan!

Impact of in-store text/QR scan (31% of total sample)!

47%!

I was going to make the purchase

anyway, but felt better about it!

42%!

14%!

40%!22%!

12%! 5%! 7%!

I made a purchase I

hadn’t planned to because of

the information I received!

I was going to make the

purchase, but the information didn’t sway me!

The information dissuaded me from making the purchase!

186%

2013 2012


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Retailers have a 50/50 shot of combatting showrooming!

Action taken after in-store price comparison (49% of total sample)!

I used the information

to get a better price at the store where I was

shopping!


I made the purchase

while I was in-store, paying the price that was marked!

I purchased the item online at Amazon!

I purchased the item

online at a competitor’s

website!

I purchased the item in a competitor’s

physical store!

I did not purchase the item

anywhere!

None of the above!

37%

10%

31%

8% 6% 6% 1%

47%!45%!

7%!

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Reaching the showrooming shopper!

Showroomer vs. Non-Showroomer – Channel preferences!

Non-Showroomers Showroomers

77.6%!

65.6%!

E-mail! App! Facebook! Text!

52.8%!

68.2%!63.4%!

53.5%!

34.6%!35.7%!

24.4%!15.9%!

Twitter!

119%!


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Personalization: The anti-showrooming weapon!

#Showrooming!

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The personalization disconnect!

of consumers frequently see

personalization from retailers and brands!

89% 18% of consumers would sign up for mobile

messages if they were personalized!

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Personalization preferences!

Most important aspects of personalization!

Uses your preferences – favorite sizes, brands, shopping categories!

60%

Timeliness – when you’re getting ready to purchase that item!

20%

Location – when you’re in the store or around the store!

13% Uses your name!

8%


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Building your mobile relationships!

What entices you to subscribe to a retailer or brand?!

70%!

Incentives or coupons!

2013 2012

2013!Source: Vibes 2013 Mobile Consumer Survey – August 2013 Base: Total n=1,00

2012 Source: Vibes 2012 Mobile Consumer Survey – August 2012 Base: Total n=1,000

79%!

32%!

46%!

29%!

45%!

27%!

43%!

Product info & updates!

Exclusive content!

Store news & events!

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Maximizing your mobile relationships!

Too many messages or updates!

What actions would make you unsubscribe from a retailer or brand?!

66% 56%

40% 32%

20% 9%

1% 7% The

information wasn’t relevant

to me!

The coupon or incentives

were not good enough!

The messages

were untimely!

I couldn’t personalize

the information I received!

Too few messages!

Other! None of the above!

350%

13%


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Three standout trends!

§  Showrooming is a new reality that most retailers and marketers are seeking to understand and address. Research from the Vibes 2013 Mobile Consumer Report shows that personalization can help retailers combat showrooming.

increase in showrooming

from 2012, and 36% increase in consumers using mobile devices to

shop in-store!

of consumers want personalization, but

only 18% see it frequently from

retailers!

year-over-year increase in

consumers who make purchases based on in-store

text message or QR-code scan!

156% 89% 186%


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Mobile Relationship Management!

#Showrooming!

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Mobile relationship management!

§  Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.!

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§  Technology is the core of Mobile Relationship Management

§  Work with a technology platform that allows you to manage your customer relationships at scale

§  Integrated platform that allows you to execute across channels

Technology!

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§  Integrate your mobile marketing strategy into your overall marketing mix

§  Mobile should work with your other marketing channels like email, direct mail, in-store and social media

§  Apply your CRM strategies to mobile

Strategy!

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§  Execute based on your current mobile maturity

-  Walk: take a project-based approach with mobile

-  Run: take a program-based approach

-  Fly: true Mobile Relationship Management

Execution!

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§  Leverage the data your are collecting to drive engagement with your customers through personalized mobile experiences

§  Augment your data with mobile behavioral data to deliver true one-to-one marketing

§  Get started!

Data!

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§  Mobile Relationship Management is the convergence of technology, strategy, execution and data to deliver personalized mobile experiences along the customer journey.!

Combat Showrooming with Personalization OCTOBER 24, 2013!

Alex Campbell, Co-founder and CIO, Vibes @Alexgcampbell!

Mark Tack, Vice President, Marketing, Vibes @MarkTack!

#Showrooming!

2013 Mobile Consumer Trends!

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www.vibes.com • [email protected] 312.753.6330 main • 312.589.6960 sales

Thank you!!

Combat Showrooming with Personalization

Technology

Transcript of Combat Showrooming with Personalization