The Unstoppable Mobile Revolution - With more than 1 Billion smartphones worldwide, retailers are taking notice of the benefits and opportunities provide by mobile payments. This eBook by VeriFone explores the opportunities of mobile for both retailers and consumers alike.
2. Consumers’ Mobile Love Affair
Ever since smartphones and tablets burst onto the
scene, consumers have flocked to the ingenious
devices. Annual smartphone sales now outpace
traditional mobile phones by a rate of 3-to-1.1 And
shipments of iPads and Android-powered tablets
are increasing at a tremendous rate of thirty-eight
percent.2
Over 1.1 billion smartphone
users worldwide.
eMarketer, May 2013
Opportunities and Challenges of Mobile Commerce
the unstoppable
mobile revolution
2
3. Retailers Take Notice
A
A
energize the
shopping
experience
Savvy merchants realize mobile
technology can help inject some
much-needed excitement into their
stores. Tablet registers, reimagined
store layouts, innovative mobile
apps and engaging consumer
software offer new ways to connect
with customers and increase
profits. Mobile devices can help
energize the consumer shopping
experience and invite customers
back to brick-and-mortar stores.
Opportunities and Challenges of Mobile Commerce
the unstoppable
mobile revolution
3
4. 4
opportunities
& challenges
Mobile presents the retail industry with both major opportunities and
challenges. The ability to access vast amounts of data from online
sources from any location allows for new applications that completely
change the shopping experience and the relationship between merchants
and consumers. The parties who better leverage mobile media to foster
consumer engagement, increase loyalty and drive repeat business will
be the winners in this brand new world.
Opportunities and Challenges of Mobile Commerce
mobile brings
5. The Challenge:
5
“
Opportunities and Challenges of Mobile Commerce
Showrooming
examining a product in store...
While purchasing in-store is the most
popular for those who research in-store,
showrooming may still be an issue for retailers
as 37% purchase on a smartphone or tablet
after researching in-store.3
The main in-store mobile activities are
comparison shopping (59%), looking for
coupons (48%) and searching for
product reviews (47%).3
”
Coined just a few years back, the term
“showrooming” describes the practice
of examining a product in a store, and
then buying it online for a lower price.
Showrooming has grown from a fringe
practice to the norm, widely adopted by
mobile users. And it’s spreading globally,
from its start in the United States to
multiple countries worldwide.
...buying online at a lower price
6. relationship selling
engage consumers...
79% of retailers plan to
integrate mPOS by 2015.
Forrester Research
To combat “showrooming,” retailers recognize they
need to better engage consumers and develop
their own mobile platforms and applications. With
mobile solutions for smartphones and tablets, they
can take advantage of back-office data, consumer
data and online services to engage consumers
in richer shopping experiences. Mobilility enables
retailers to provide a personalized experience,
while also leveraging location-based, geo-targeted
offers and coupons.
6
Opportunities and Challenges of Mobile Commerce
The opportunity:
70% of retailers expect to
enable store associates with
tablet-based solutions in the
next three years.
RIS News
...provide a personalized experience
7. smarter stores
(Within the Next 36 Months)
Projected % of Retailers Using Mobile Apps4
83%
66%
66%
64%
Inventory
Management
Task
Management
CRM
Messaging
62%
60%
59%
43%
Mobile POS
w/Tender
Cross-channel
Save-the-sale
Line Busting
w/Suspend
HR
Mobile technology is reinventing commerce, helping
retailers create smarter stores, bringing better service
to the hospitality industry and expanding commerce
options for a wealth of other industries. Mobile POS
helps reduce lines at checkout; inventory management
brings more flexibility and efficiency to store operations;
and mobile CRM brings rich customer data to the
fingertips of every sales associate.
Adoption of mobile solutions at POS is on the rise,
with integration of mobile throughout the commerce
experience expected to expand over the next two years.4
Opportunities and Challenges of Mobile Commerce
The opportunity:
7
8. Online Comes In Store
(Within the Next 36 Months)
Projected % of Retailers
Using Mobile Payment Apps4
53%
50%
42%
PayPal
Coupons on
Mobile Screen
Google
Wallet
23%
14%
12%
Apple
Passport
Isis
Square
11%
Amazon
Payments
While consumers can use online tools against a retailer
(showrooming), retailers can turn this to their advantage by
bringing the online experience in store. Many of the Internet
giants, plus countless new companies, are developing ways
to engage retail shoppers. Mobile wallets and NFC-driven
concepts for digital couponing, offers and promotions can help
drive store traffic.
Using online retail to create engaging experiences in store can
come in many forms. With POS systems already in place, the
opportunity to try different approaches and partnerships is easy
and requires little additional investment.
Opportunities and Challenges of Mobile Commerce
The opportunity:
8
9. Enhanced Operations
“
Increased revenue
Large retailers can boost
revenue by $20,000 per
location by adopting mPOS
and saving one single
walkout per day.
Yankee Group
5
”
• psell and cross-sell with fingertip access to past customer
U
purchases
• ncourage repeat business with electronic loyalty and
E
rewards programs
• row sales by bringing products to life in dynamic tablet
G
catalogs
sO
LD
sO
LD
sO
LD
Greater sales
• eploy more campaigns, including digital offers, promotions
D
and coupons
• reate a checkout anywhere, increasing employee
C
productivity
• Capture sales on the spot, never missing another sale
Better service
• Personalize service with access to customer profiles
• eliver faster response times by accessing inventory online
D
satisfaction • nhance shopping experience with engaging tablet software
E
Opportunities and Challenges of Mobile Commerce
The opportunity:
9
10. navigating
10
Opportunities and Challenges of Mobile Commerce
The opportunities
While the opportunities to leverage mobile technology are vast, so are the options and
potential challenges. How does a retailer choose the right path? How do they limit their
mistakes or avoid them altogether? And ultimately, how does a retailer develop the right,
comprehensive mobile strategy – a roadmap from concept to deployment, all while
maintaining uninterrupted store operations, POS functionality and sales?
? ? ?
?
?
iOS, Android,
Windows
mPOS, Retailing, CRM
?
What’s
missing
How can
operations
improve
?
How do you plan to stay relevant
Mobile or
cloud
wallets
NFC, Beacon, Barcode
What is the strategy
to further the brand
?
What is the competition doing better
11. reimagined
11
not much has changed in store layout...
It’s no wonder many retailers are feeling
overwhelmed by the changing landscape.
After all, not much has differed in store layouts
over the last one hundred years. While there
have been advances in technology and
processes in the last century, the shopping
experience is still very similar. Most notably,
associates have stayed behind the counter,
separated from their customers, until now.
...associates have stayed behind the counter
Opportunities and Challenges of Mobile Commerce
Store layout
13. solution
Keeping an eye on future technology is a key component of any strategy. For example, whatever mobile
platform a retailer implements, it must be flexible and scalable – able to securely integrate both current
technology as well as new and emerging solutions. This is also true for other verticals like transportation,
health care, petroleum and taxi, to name a few.
mWallets
Mobile
CRM
Out-of-store
Sales
RETAIL
POS SYSTEM
Mobile
Inventory
Line-busting/
POS
Roaming
POS
Opportunities and Challenges of Mobile Commerce
scalable, flexible
13
14. the right
14
Opportunities and Challenges of Mobile Commerce
partner
Trust in an expert already in place at the point of sale.
The opportunities and challenges of mobile commerce do not have to be faced alone.
Navigate the new landscape with a trusted partner. VeriFone has been integrating the
newest and greatest technology into payment systems for over thirty years. With
VeriFone, gain access to the industry’s broadest collection of mobile payment solutions,
POS software and platforms for wallets, apps and innovations. From retail and
hospitality to transportation and petroleum, a wide variety of industries can increasE
revenue, build customer loyalty and improvE service and operations with a partner that
has the right mobile expertise.
bringing the newest and greatest payment technology
for over 30 years
15. mobile payments
Success Story:
Deployed cutting-edge mobile payment
solution, PAYware Mobile
• urned over 3,000 smart devices into
T
mobile payment solutions
• mpowered sale associates to perform
E
line busting, price checking and
inventory management
• nabled all forms of payment, including
E
mag-stripe, debit/credit, chip and PIN,
EMV and NFC
Opportunities and Challenges of Mobile Commerce
empowering
15
16. mobile retail
Success Story:
Integrated, highly engaging tablet software,
GlobalBay Retailing
• nabled sales associates to access online
E
catalog in real time, cross-selling and
upselling consumers on the spot
• mpowered associates to order out-ofE
stock items online, shipping directly to the
customers’ homes
• eeply integrated the mobile solution within
D
the existing back-end infrastructure
Opportunities and Challenges of Mobile Commerce
empowering
16
17. mobile platforms
Powerful Partnerships:
Opening the
point-of-sale to
outside innovation
• nabling 80% of retailers accepting PayPal,
E
Google Wallet or Isis in the United States
• aking it seamless to remotely add and
M
manage multiple wallets in millions of
POS systems through innovative software
and services
• ffering the most extensive line of NFC
O
payment solutions in the world
Opportunities and Challenges of Mobile Commerce
empowering
17
19. Simplifying the
integration of mobile
devices, software and
platforms that can help
grow business.
To help navigate the mobile revolution, trust in the proven expertise
of VeriFone. Already at the epicenter of commerce, VeriFone is
uniquely suited to help simplify the deployment and integration of
new concepts at the point of sale.
Unmatched Mobile Portfolio
For most merchant types and use cases, VeriFone offers a mobile
solution to match.
ENHANCED Customer Experience
New software for tablets and smartphones is revolutionizing
merchant-consumer interaction.
Enabling Mobile Platforms
To answer demand for mobile wallets, apps and alternative
payments, VeriFone makes it easy with unparalleled open access.
Trusted Expertise
For mobile solutions today and tomorrow, look to the proven
expertise of VeriFone: the leader in electronic payment technology
and ironclad security.
Click the “Learn More Now” button below or
visit us at global.verifone.com/mobile-solutions
Learn More Now
Opportunities and Challenges of Mobile Commerce
VeriFone Mobile
Solutions
Empowering Mobile Commerce
19