A QUICK DEFINITION

LOCATION-BASED

MOBILE APPS

are information or entertainment services accessible through your smartphone, which

make use of your geographical position(or the position of your mobile phone)

They can be used for a variety of purposes, including search, entertainment, social

networking or promotions

THE LANDSCAPE

MAP BASED SERVICES AUGMENTED REALITY

CHECK IN SERVICES PUSH NOTIFICATIONS

WHAT DID WE DO?

CO - CREATION

INTRODUCING OUR CO-CREATION PANEL…

Gender, ages, life stage, geography, income and social class

18-64 year olds (inc. digital natives)

New Technology Adopters

With a mix of:All members are:

75% Social Media Account Holders

Range of digital access portals

(all members to own smartphones)

Content creators

Frequency of online

content consumption

Premium content users (e.g. paid for dating sites)

Some brand consumption

habits

Mobile App Purchasers

Use of e-tail sites

(inc. FMCG)

WHO IS ON THE HIVE?

THIS PROJECT WAS SPLIT INTO 3 DISCRETE PHASES

1. Drivers & Barriers

Emotional and rational

reasonsto use and not usemobile innovations

2. Evaluation

A look at priority mobile tools through branded case studies

1. Vouchers/promotions2. Augmented reality

3. Push4. Check-in

3. Co-creation

Consumer rules of when and where

priority mobile tools should be used

4. Social Currency

Allows you to broadcast your noteworthy movements (*digital natives)

CONVENIENCE & VALUE DRIVE ADOPTION

1. Navigation

Turns your smartphone into an intelligent navigation assistant

2. Savvy Shopping

3. Hidden Gems

Cashing in through location with coupons and vouchers

Peer to peer recommendations that take you to unchartered territory

Too urban and London-focused

4. Too Urban

PSYCHOLOGICAL BARRIERS HINDER ADOPTION

1. Privacy

The majority do not want to be ‘track-able’ or followed

2. Safety Concerns

3. Spam

Track-able leads to concerns over burglary as well as street safety

Rarely carries the info that is right for you

2. Signal

Services are dependant on access to phone networks

LET’S NOT FORGET TECHNICAL CONSTRAINTS!

1. Battery life

Smartphones struggle to perform tasks over prolonged periods of time

WE EXPLORED 4 BRANDED LBA OPPORTUNITIES

Respondents were shown 4 location based app case studies, outlining how each might function

2x Co-Creation activities where respondents were asked to design their own branded

location based app

RESPONDENTS DESIGNED THEIR OWN APPS

BP FUELFINDER – MAP BASED SEARCH

Provide secondary benefits / services to differentiate from market leaders

#3

3 CO-CREATED RULES FOR MAP BASED SEARCH

Always have one core purpose#1

Achieving this core purpose must always happen within one click!

#2

HSBC BALANCE CHECKER – PUSH NOTIFICATION

Push notifications must always be opt-in#1

Allow users to determine the types of information they receive (e.g. offers, discounts, information)

#2

Users must always be able to select the number of notifications they receive

#3

3 CO-CREATED RULES FOR PUSH NOTIFICATIONS

MANGO CATALOGUE – CHECK IN

Users must be able to determine how (which channel) and with whom (e.g. friends, colleagues) they share information

#2

Upon Check-In, benefits and rewards must always be relevant to the user

#3

3 CO-CREATED RULES FOR CHECK-IN

The brand should never be the ‘Check-In Star’ (make sure that the user is at the centre of the occasion)

#1

LAND ROVER MOTORPEDIA – AR

Only launch an augmented reality app if the technology has reached a high level of maturity

#1

To drive repeat use, ensure that content is relevant#2

Look to provide as much deep and layered content as possible in order to maximise the experience

#3

3 CO-CREATED RULES FOR AR

OUR OBSERVATIONS

1. The LBAs consumers adopt, help to solve the perennial problems of life, or are heavily incentivised

2. Brands must remove psychological fears around data to maximise adoption

3. Many smartphone users are not as sophisticated with LBAs as we might think – sometimes we find ourselves in a marketing/media bubble

WE ALSO INVESTIGATED THE ROLE OF MOBILE AT POINT OF SALE

PROMOTIONAL MESSAGING DOMINATES IN-STORE

CURRENT EVOLUTION OF MOBILE IS ALSO VERY DEAL FOCUSED

CAN MOBILE DELIVER BRAND COMMS AT POINT-OF-SALE?

SO WE WENT SHOPPING TO FIND OUT…

A BRANDED MOBILE SERVICE FACES CHALLENGES

Natural role for the retailer

Impartiality

Experience

Practicality

KEY DRIVER IS WHETHER THE PURCHASE IS HABITUAL

Make shopping easier

Save moneySave time

Make shopping more rewarding

InspireReassure

Low engagement / functional purchases

e.g. Many supermarket categories

Replacement fashion

High engagement / emotional purchases

e.g. FashionConsumer electronics

INFREQUENTHABITUAL

SECOND DRIVER OF SHOPPER NEED STATE IS ‘CONFIDENCE’

Relaxed decision-making

Make it easierMake it fun

Inspire

Anxious decision-making

GuideReassure

LOW

Habitual purchasese.g. Many supermarket

products

Personal high involvemente.g. Fashion, electronics

Personal low involvemente.g. Fashion

Complex categoriese.g. Consumer electronics

DIY

HIGH

CON

FID

ENCE

MAPPING THE SHOPPER NEED STATES

LOW CONFIDENCE

HIGH CONFIDENCE

HABITUAL

EASE‘Show me the deals’

INSPIRATION‘Inspire me’ ‘Keep me up-to-date’

‘Entertain me’

‘Show me how’ ‘Remind me’

RESCUE

‘Give me advice’ ‘Share with others’

‘Show what’s best for me’

REASSURANCE

INFREQUENT

INSPIRATION: Strong role for the retailer

HIGH CONFIDENCE

INFREQUENT

“If it was like a personal shopper

that would be great”

“If you could create a look that might

work”

INSPIRATION: Harder for a brand to provide impartiality

HIGH CONFIDENCE

INFREQUENT

“Would everything have mayonnaise in it?”

“Would I want to use my phone GPS around the supermarket? Would I

really need it?”

“As inspiration for meal for tonight it

works OK”

REASSURANCE: Personalisation in a complex environment

LOW CONFIDENCE

INFREQUENT

“I don’t know anything about plants

so this would be great”

“You’d want a recognised expert to

have put that together”

“It works because it’s tailored”

REASSURANCE: Can a brand credibly make comparisons?

“You want to access some independent reviews or ratings”

“Would you not just use the computer at home?”

LOW CONFIDENCE

INFREQUENT

RESCUE: ‘Beacon’ brands can speak for related categories

LOW CONFIDENCE

HABITUAL

“Dulux is good for DIY – it’s a well-

respected brand”

“I can never find anything in B&Q –

they’re big and you get lost”

“I’m forever getting home and realising that I need something else to

do the job”

RESCUE: ‘Beacon’ brands can speak for related categories

LOW CONFIDENCE

HABITUAL

“For those with constrained diets then it

could be really good”

“If it highlights all brands then that’s fine”

EASE: All about the deals

HIGH CONFIDENCE

HABITUAL

RULES OF ENGAGEMENT

LOW CONFIDENCE

HIGH CONFIDENCE

HABITUAL

EASEFocus on offers

Much harder for wider engagement

INSPIRATIONProvide ideas for new / related usage

Alert shoppers to NPD & innovation

Consider entertainment

Demonstrate functional benefits

Speak for the category

RESCUE

Deliver an emotional experience

Personalise

Demonstrate impartiality (e.g. partnership)

REASSURANCE

INFREQUENT

#1

IN CONCLUSION

#4

#3

#2

Mobile isn’t an instinctive behaviour at point-of-sale just yet

The retailer rather than the brand is seen as the natural provider of in-store mobile

Understanding the shopper need-state is key to a brand providing mobile utility

Consider the credibility gap – can your brand operate outside its category?

Thank you