1. MOBILE COMMERCE
What do customers really want in their
mobile experience?
#BBJMobile
Nitzan Shaer
Managing Partner
High Start Group
April 2012

2. Agenda
1 The dawn of mobile commerce
2 Disrupting every stage of the customer lifecycle
3 Strategies to navigate the new landscape
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3. Mobile commerce is set to eclipse desktop
1 commerce as online & offline worlds merge
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4. …and the revolution has already begun
Website hits from mobile 90% of mobile web Over 300,000 apps have
devices DOUBLED from searches result in action been developed resulting
Jan. 2011 – Jan. 2012 (e.g. purchases, store in 10.9 billion downloads
visits, etc)
Mobile payments are expected PayPal says it did $4 billion in
to reach $630 billion in value mobile volume in 2011,
by 2014 = 5% of all e- projects $7 billion for 2012
commerce sales
Starbucks has handled more 2/3 of smartphone users say Top 4 most used apps of 2011
than 42 million transactions via they will share personal info
its mobile payments app since with marketers in order to
its launch in the US in January reap the benefits of
2011 – 1 in 4 of all transactions personalized services
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5. Mobile transactions are growing rapidly…
Source: AlixPartners, Mobile Financial Services Tracking Study, April 2012
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6. …and changing the way we shop
Source: AlixPartners, Mobile Financial Services Tracking Study, April 2012
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7. …across multiple commerce categories
The darker growth areas clearly show that between 2010 and 2012
clothing and footwear, health and beauty products and household
supplies have seen the biggest increase in mobile purchases.
Source: AlixPartners, Mobile Financial Services Tracking Study, April 2012
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8. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
Awareness
Interest
Social
Customer
Lifecycle
Cross Action
Sell
Purchase
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9. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
A In store price
comparison & reviews
Awareness
Interest
Social
Customer
Lifecycle
Cross Action
Sell
Purchase
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10. A Price comparison
Amazon Price Check RedLaser Consumer
Save money
Retailer
Customer acquisition
and loyalty (for low cost
provider)
Buy.com
Advertiser
Rich data on shopping
behaviors to serve more
targeted ads
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11. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
A In store price
comparison & reviews
Awareness
Interest
Social
Customer B Mobile payment
Lifecycle
Cross Action
Sell
Purchase
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12. B Mobile payment
LevelUp Consumer
 Rewards / offers
 Convenience
Retailer
 Loyalty
 Encourage specific
behavior
 Targeted marketing
Square Barclaycard  Customer acquisition
Advertiser
Measure impact of ads
and offers (click to buy)
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13. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
A In store price
comparison & reviews
Awareness
Interest
Social
Customer B Mobile payment
Lifecycle
Cross Action
Sell
Purchase C Self checkout
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14. C Self checkout
AisleBuyer (Intuit) Consumer
 Save time
 Save money
Retailer
 Save personnel
 Up sell in store
 Lower cost to serve
Modiv Media
Advertiser
Up sell - Super targeted
ads (based on in-store
scan) at the point of
decision-making (in
store, before checkout)
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15. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
D Shop on the
A In store price
go
comparison & reviews
Awareness
Interest
Social
Customer B Mobile payment
Lifecycle
Cross Action
Sell
Purchase C Self checkout
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16. D Shop on the go
Groupon Staples Consumer
 Convenience
 Impulse buying
Retailer
 Capture impulse
buying
 Engender loyalty
through
personalization
Target
Advertiser
New advertising
opportunity (Click to buy
in real world) and turns
the merchant into an
advertiser in their own
stores
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17. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
D Shop on the
A In store price
go
comparison & reviews
Awareness
Interest
Social
Customer B Mobile payment
Lifecycle
Cross Action
Sell
E Online Purchase C Self checkout
experience in
the real world
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18. E Online experience in real world
Google Goggles Consumer
 Product info & ratings
 Drives engagement
Retailer
 Customer satisfaction
 Creates new purchase
“moments”
Shazam Entertainment Star Walker
Advertiser
 Product reviews and
shopping assistance in
real world purchases
 Word-of-mouth and
community-based
“noise”
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19. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
D Shop on the
A In store price
go
comparison & reviews
Awareness
Interest
Social
Customer B Mobile payment
F
Real world
experience
Lifecycle
Cross Action
online
Sell
E Online Purchase C Self checkout
experience in
the real world
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20. F Real world experience online
JP Morgan Check Deposit Consumer
Integration of customer
experiences across all
channels and new
experiences
Retailer
New “data” on
customers behaviors to
inform product strategies
Nike+ FuelBand Hulu Plus and marketing activities
Advertiser
 Creates brand
engagement
 Benefits from
customer “self-
segmentation” based
on media consumption
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21. Mobile is disrupting every step of the
2 customer lifecycle… one scenario at a
time.
D Shop on the
A In store price
go
comparison & reviews
Awareness
G Enhanced Interest
social Social
Customer B Mobile payment
F
Real world
experience
Lifecycle
Cross Action
online
Sell
E Online Purchase C Self checkout
experience in
the real world
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22. G Enhanced Social
Consumer
Unbiased feedback and
reviews from customers
and peers
Retailer
 Direct engagement
from loyalists and
dissenters
 New marketing
channels
Advertiser
 Rich data to better
target ads and
promotions
 Access to large
groups (creating the
„viral storm‟)
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23. Businesses need to rapidly adapt
3 …to changing consumer expectations
MOBILE COMMERCE
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24. Retailers
Threat Opportunity
Price pressures Enhance in-store
and out-of-store
experience
Retailer Specific
Goal: Provide the best in-store and out-of-store experience
Strategy to drive loyalty, through personalization, reviews, rewards,
up sell, recommendations and navigation
Examples: Starbucks, Target, Staples
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25. Retail aggregators
Threat Opportunity
Local stores provide Capture sales from
superior experience brick and mortar
Consolidated Shopping
Goal: Drive users to a single destination for all retail
Strategy shopping needs by providing best price, speedy delivery,
trust, rewards and service
Examples: Amazon, Google Shopper, Ebay (RedLaser)
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26. Banks, card issuers and payment solutions
Threat Opportunity
Lose payment Provide
revenue differentiated value
Increase transaction
share
Ultimate Payment Solution
Goal: Become the payment solution of choice for
Strategy consumers and retailers through offers, customer incentive,
retailer economics, user experience, fraud reduction
Examples: GoogleWallet, Square, Paypal, LevelUp, Isis
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27. Marketers
Threat Opportunity
Traditional methods Highly effective
less effective targeting of ad
dollars
Personalized loyalty
Goal: Track and drive customer behavior throughout online
Strategy and offline path, in a highly personalized way
Examples: AdMob, JumpTap, DataXu
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28. Who Will Emerge as
Leader of the Mobile
Commerce Revolution?

29. Are you ready to seize the
mobile opportunity?
Nitzan Shaer
nshaer@highstartgroup.com
Follow us:
Twitter: @highstartgroup
Blog: blog.highstartgroup.com
Web: www.highstartgroup.com
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