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Retail Mobility Usage Statistics

Date: 14th October 2014

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Retail Mobile

Applications

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A Snapshot of Retail Mobile Applications

A snapshot showing the

areas of retail where

mobile apps are used.

(Source: TCS)

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Mobile Sites are the topmost

priority for retailers with 90.9%

stating they are looking to invest

in this area.

Retailer Investment Plans

Source: Computerweekly

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Why Retailers are Investing in Mobile Apps

1. Coupon sites get 88% of their traffic from mobile devices. Source ComScore

2. When consumers visit online retail sites like Amazon, eBay and Etsy on mobile devices, 80% of the time

it’s through an app. Source ComScore

3. Mobile commerce will generate $34.2 billion by the end of 2014, up from $21 billion in 2012. Source

ComScore

4. Mobile payments will amount to $90 billion in the coming years. Source Forrester Research

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Current Status of Technologies in the Retail Business

Mobile payments is

a technology that is

currently in focus

with 68.8% retailers

looking to invest in it

in the near future.

Source: Computerweekly

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Current and Future Functions of Customer Facing Mobile Apps

Source: emarketer

83%

79%

74%

69%

67%

49%

43%

87%

82%

81%

65%

73%

62%

65%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Customer communications

Customer Service/support

Product communications / brochures

Facilitate transactions (purchase order/ account lookup)

Brand engagement

Event support

Annual reports/announcements

Current Future

A survey conducted by Forbes Insights and Adobe found that most companies were using customer-facing apps

for the below reasons. The most common use of mobile apps was to communicate with customers, named by 83%

of respondents.

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Mobile Trends

in Retail

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Trend 1 : In-Store Location Awareness

Source: RetailTouchpoints

Thanks to Bluetooth Low Energy (BLE), a technology that lets Bluetooth 4.0 devices such as PayPal Beacon,

RapidValue rBeacon, and iBeacon communicate with smartphones, retailers will be able to send tailored notifications

to each shopper’s device, depending on where they are in the store.

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Trend 2 : Brand Experiences as Apps

Source: RetailTouchpoints

Apps have started becoming part of the user’s daily life. Successful retail apps create a daily experience that will

reinforce a brand’s core values to current and potential customers.

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Trend 3 : Creating Loyalty with Rewards

Source: RetailTouchpoints

Popular mobile apps have features that allow customers to earn and redeem loyalty rewards through their phones or at

physical locations. Phones are being launched with preloaded retail apps.

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Trend 4: Context Awareness

Source: RetailTouchpoints

A lot of context marketing is being done through mobile apps. Retailers can leverage customer locations and local

information to deliver automated contextual messages to customer’s phones.

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Trend 5: In-Store innovations

Source: RetailTouchpoints

Retailers have implemented mobile devices directly into the in-store shopping experience. From personal check-outs to

in-store personalized marketing mobile technology is set to revolutionize shopping experience.

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ROI

from Retail Apps

(Case Studies)

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Case Study 1: BMW

BMW increased conversion by 30% for customized snow tires by sending images, video, sound files and text

messages for customized snow tire offers.

Source: themobileretailblog

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Case Study 2: Caritas Home care

Boston-based home healthcare agency used mobile health devices to enhance communications and data collection

with its 150 mobile clinicians. Caritas documented how the mobile devices were able to save 19,200 hours or 98

hours per clinicians per year. Although Caritas didn’t release salaries of clinicians, if we estimated $50/hour, which

would be conservative, Caritas saved $960,000. If the devices were $100 each for 150 clinicians at $15,000, which

would also be conservative, the ROI would be 64-to-1.

Source: themobileretailblog

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Case Study 3: Dunkin Donuts

Dunkin Donuts increased store traffic by 21% using SMS campaign offering mobile coupons.

Source: themobileretailblog

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Case Study 4: Harley-Davidson

Wanted to maintain visibility with current customers and add new customers and revenue through a holiday

promotion. They sold HD related merchandise through a Route 66’s mobile club. Communications of the 12 Days of

Christmas campaign were promoted through a mobile social media campaign. Sales increased 250% on helmets;

16% on leather jackets and there were significant increases in holiday dealer traffic which was also an objective.

Source: themobileretailblog

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Case Study 5: McDonalds

McDonald’s designed a ‘restaurant finder’ app to enable consumers to find a late-night McDonald’s (open post 11pm).

The app was downloaded 1,300,000 times and delivered an ROI of 2:1..

Source: themobileretailblog

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Case Study 6: Petco

At Petco Mobile coupon redemption outnumber online coupon redemption by 5 to 1.

Source: themobileretailblog

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Case Study 7: Pizza Hut

Pizza hut created a mobile optimized website. By the end of the first week after going live, the site accounted for 10%

of all online orders increasing at a rate 60% each week..

Source: themobileretailblog

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The Next Big

Technologies

in Retail

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A look at Augmented Reality

• 30% mobile subscribers will use AR at least once in a week

• 864 million smartphones will have AR technology enabled in them by the end of 2014.

• 2.5 billion mobile AR apps are going to be downloaded by 2017

• $600 billion expected revenue generated from AR by 2016

Source: momentagroup

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Internet of Things

• IoT world is growing at a breathtaking pace – from 2 billion objects in 2006 to 15 billion in 2016 to a projected 200

billion by 2020. (Source: Intel)

• 10% of all IOT investments are made by Retailers (Source: IDC retail insights)

• IoT product and service suppliers will generate incremental revenue of more than $300 billion in 2020.

(Source: Gartner)

Source: momentagroup

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Omnichannel Retailing – Why it is taking off?

• 71% – Amount of consumers who cited the ability to view inventory information for in-store products as important

or very important.

• 50% – Amount of consumers who expect to buy online and pick up in-store.

• 39% – Amount of consumers who are unlikely or very unlikely to visit a retailer’s store if the online store does not

provide physical store inventory information.

• $1.8 trillion – The amount of online and web-influenced retail sales that Forrester expects by 2017, up from $1.3

trillion in 2013.

• 73% – Amount of consumers who stated that they are likely or very likely to visit a local store if the retailer

provides in-store product availability information online, compared with 36% of customers who would visit a store

if no inventory information was available online.

• 25% – Amount of consumers who said that they use store pickup so they can collect their orders on the day they

purchase them (thus avoiding the wait for shipping).

• 10% – Amount of consumers who simply find it more convenient to pick up from a store than have items shipped

to their home.

• 56% – Amount of consumers who have used their mobile device to research products at home with 38% who

have used their mobile device to check inventory availability while on their way to a store and 34% who have used

their mobile device to research products while in a store.

Source: business2community

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Omnichannel Retailing – Why it is taking off? (Contd.)

• 45% – Amount of consumers who expect sales associates to be knowledgeable about online-only products.

• 69% – Amount of consumers who expect that store associates be armed with a mobile device — in order to

perform simple and immediate tasks such as looking up product information and checking inventory.

• 27% – Amount of consumers who would be very likely to leave and visit another retailer’s store if a product is out

of stock with 21% who would buy online from a different retailer and 21% who would simply hold off buying the

product.

• 45% – Amount of consumers who would take up an in-store associate’s offer to ship an out of stock product to the

consumer’s home for free.

• 93% – Amount of surveyed retailers who cited that enabling ship-from-store had resulted in a positive or

significantly positive uplift in online revenue.

• 77% – Amount of surveyed retailers who cited that enabling ship-from-store had reduced or significantly reduced

their fulfillment costs.

• 88% – Amount of surveyed retailers who cited that enabling ship-from-store had improved or significantly

improved their customer satisfaction metrics.

Source: business2community

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Thank You

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About RapidValue

RapidValue is a leading provider of end-to-end mobility solutions to enterprises worldwide. Armed with a

team of 250+ experts in mobility consulting and application development, along with experience delivering

over 400 mobility projects, we offer a range of mobility services across industry verticals. RapidValue

delivers its services to the world’s top brands and Fortune 1000 companies, and has offices in the United

States and India.

www.rapidvaluesolutions.com www.rapidvaluesolutions.com/blog

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