Mobile Loyalty: Determining Right Time to InvestDAVE MASSEYSVP/CIO BEALLS INC.

Introduction• Dave Massey SVP/CIO Bealls Inc.• Privately owned located in Bradenton Florida• Celebrating 100 years in business• $1-2bn in sales• Over 500 stores trading in 17 states• Department Store: Florida markets, promotional• Outlet Store: True off-price business• Bunulu: New store concept

Speed of Change & Mobile Trends

Technology Platform a Step Change

Consumer Mobile Trends

Retail Mobile Challenges

Bealls Mobile & Loyalty Journey

Closing

AGENDA

“Have you had that awkward moment,

when a 10 year old has a better phone than you”

“Anonymous”

Speed of Change – 2020 (not far off)• Generation X is reshaping global politics and shopping• Fraudulent transactions are 2x greater than in 2016• Internet users 5 billion worldwide• 69 million smart connected cars will ship• 5G standard released• Same day delivery is common place• Holographic TV is going mainstream• Amazon is making drone deliveries in the UK• 30,000 drones are patrolling skies of America• Nanotech clothes are growing rapidly in use• Blockchain is growing with the tipping point occurring in 2023

Interate.AI, NRFTech 2016

Global Mobile Trends• Mobile is the new scale• Everyone gets a pocket super

computer• Mobile is the new tech ecosystem

• Mainframes 100k• PC’s 1.5bn• Mobile 5bn+

• The first universal tech product• Every Corporation• Every Home• Every Pocket

• Mobile is tech ecosystem, not a screen size

• A drone is really a smartphone that flies

Andreessen Horowitz

Global Mobile Trends• Mobile is the new scale• Everyone gets a pocket super computer• Mobile is the new tech ecosystem

• Mainframes 100k• PC’s 1.5bn• Mobile 5bn+

• Mobile the first universal tech product• Every Corporation• Every Home• Every Pocket

• Mobile is tech ecosystem, not a screen size• A drone is really a smartphone that flies

Andreessen Horowitz

Technology Platform – Step Change• Combination: Cloud, Mobile, AI, Machine Learning and IOT • Computers shouldn’t ask anything it can’t work out• Sensors change what a computer knows• New sensors create new business opportunities• This new tech ecosystem can drive new value workflows for

consumers• Mobile in not a sub set of the Internet anymore• Mobile becomes the Internet – the main way that most people go

online• Huge scale opportunities with low cost entry requires innovation

“So the technology platform is coming into focus;

what about the consumer?”

Consumer Mobile Trends• Device Obsession Deepens

• Survey of device ownership: 70% have Smartphone, 51% have Tablet, and 14% Wearable

• 93% of all people look at their devices within three hours of waking up

• Technology is becoming habit forming

Deloitte 2015 Mobile Consumer Survey

Consumer Mobile Trends• Mobile devices play a virtual role in almost everything we do

daily• Using mobile while watching TV continues to grow, especially

among 18-24 year olds• While Out Shopping 92%, Talking to Family & Friends 89%,

Watching TV 87%, Eating at Restaurant 81%, Using Public Transportation 54%, Driving Car ???

• Consumers – empowered & they know it

Deloitte 2015 Mobile Consumer Survey

“So Technology and Consumer are lining up;

what about Retail?”

Retail Challenges• CEO priorities on mobile keep slipping down in priority each year, but

why?• Organizations are implementing Mobile technical solutions, but falling

short on integration with “Customer Experience Journey”• 89% of Marketers claim their companies will compete on Customer

Experience in next 5 years• Customer experience is dependent upon serving customers across all

channels and all devices• Consumers want control over real time, location-enabled offers• Persistent connectivity drives expectations for systems that operate in

“customer time”The once sharp line between in-store retail and e-commerce is blurring as on-the-go, tech-savvy shoppers research, browse, try on, and transact wherever and whenever they please

Gartner Research

Bealls Mobile Journey• Bealls 5 year Mobile traffic chart• In FY15 Bealls Mobile sessions

were 41% of all digital channel traffic

• In-store sales attributed to all digital 24% of total company sales

• In-store sales attributed to just mobile 16% of total company sales

• Surprise was the velocity of our customer Mobile adoption

Bealls Journey• Leveraged analytics to break a long held customer perception• Conducted consumer studies to identify “key customer journeys”• Hired SPI to help map our technology journey• Phase I launching new Mobile with Loyalty 2.0• Loyalty 2.0 leverages combination “reward & engagement” model• Conceptualizing next phase of program which includes integration

of Mobile, Loyalty and mPayments

Bealls Initial Phase Mobile

Closing• Speed of technology – faster than current paradigm• Step change in technology platform – Mobile is the Internet• Consumer Mobile becomes habit forming• Focus on Customer Journey & Customer Experience• Mobile – Loyalty – Payment are critical considerations• Someday – solve the “stand-in-line” checkout problem• My Opinion – Invest Now….if you aren’t already there, pick

strong partners

Contact Me

• Dave MasseyEmail: dmassey@beallsinc.com