Abstract: Using mobile marketing at point of sale is a great way to engage consumers at their critical decision making point. In this article, we cover the selling points of in-store mobile marketing and drill down into five of the most promising tactics: product information, driving traffic to stores, loyalty programs/mobile coupons, campaign extensions, and brand utility.
Focusing on Point-of-Sale
In this economic environment, it’s more important than ever for brands to influence purchase decisions. When shoppers browse supermarket aisles, they are overwhelmed with over 45,000 SKUs. 90 percent make unplanned purchases and 51 percent of those purchasing decisions happen in the aisle. Further, 68 percent are brand switchers with 73 percent shopping in more than five channels. More consumers are also shifting to private label products and deliberating their purchases during tough times.
This is a huge opportunity for brands to claim the last 50 feet and close the sale at the critical decision-making point. It also has great potential for better tracking of ROI since you can link promotional efforts directly to a sale. Brands targeting Gen Y consumers should especially take notice; these consumers are more likely to make impulse purchase decisions and more influenced by point-of-sale (POS) messaging.
However, advertising in store can be challenging. The distribution network is very fragmented, and it’s hard to track the execution of physical end-cap displays. Now is the perfect time to leverage innovative technology to engage the consumer just steps from the register.
Leveraging Mobile for Scale and Control
Today’s shoppers are hyper-connected and never leave home without their phones. United States mobile adoption has surpassed 85 percent and more than 83 percent of mobile phone users take their phones with them wherever they go . In fact, more than one-third of workers would choose their mobile phone over their wallet, keys, laptop or digital music player if they had to leave the house for 24 hours and could take only one item.
Not only do they have phones with them, shoppers are using them to help make purchase decisions. According to a survey in the UK, the vast majority of shoppers polled owned mobile phones, and nearly a third used them while shopping in stores. Of the shoppers who used their mobile device in store, 65 percent got a simple opinion about a purchase, 40 percent sent a picture of a product they might choose, 19 percent looked at comparison prices, and 13 percent looked at product reviews. More often than not, the opinion they received encouraged them to buy the item. These shoppers were in turn more likely to purchase it, and to do so in a brick and mortar store rather than online.
The opportunity to leverage the mobile phone is ripe for in-store marketing. For one, there is little incremental infrastructure needed, making mobile initiatives easy to scale at a low cost—cheaper than the alternative of producing physical in-store displays. Beyond that, it can be made incredibly relevant through hyper-targeting, based on past consumer behavior or their current location (even down to the aisle!). Mobile is also a two-way medium; consumers can directly interact with a brand at the moment they are making a purchase decision. This could entail customized answers and recommendations for a consumer. Like all digital content, mobile is completely flexible; marketers can change promotions, offers, and messaging at any point.
Beyond the functionality of mobile technology, it is also beneficial from a CRM perspective. All mobile campaigns are opt-in and allow for data capture for database-building. Customers can receive alerts, offers, and follow-ups—all on their phones. Contrast this to the automated coupon machines at the shelf, which aren’t able to tell the brand who took a coupon. Furthermore, by going direct to the consumer, mobile campaigns eliminate having to rely on local retailers for physical in-store execution and allow brands to have more control over their marketing efforts.
In-Store Mobile Tactics
While in-store mobile marketing is very much in its infancy, we’ve defined five promising tactics for marketers.
1) Product Information
Customers are using their mobiles to “phone-a-friend” and get trusted opinions before shelling out for something . This is the next generation of word of mouth, and it is happening in-store, in real-time. There is a huge opportunity for retailers to leverage this existing consumer behavior to encourage in-store purchases.
Sephora created a WAP site, available in a few test markets, that allows shoppers to easily browse product reviews when considering an in-store purchase. The service taps into reviews from Bazaarvoice's MobileVoice, which mobilizes peer product reviews. There’s a clear demand for such applications; consumer recommendations are the most credible form of advertising. Meanwhile, consumers are 2.5 times more strongly influenced by fellow customer reviews than a salesperson's advice. Also, it’s important to note that most word of mouth is positive. Across all of Bazaarvoice US clients, 80 percent of product ratings are 4 or 5 stars out of 5. Anything that makes it easier to access credible word of mouth in store will drive sales. Think of it as in-store marketing tied to social networks.
People are also using phones in stores to remember specs, compare prices, and identify the proper model of something they saw online. To make this easier, Google just announced its Google Product Search application for iPhones and Android phones. "Say you're in a store and having a hard time deciding between two products,” writes software engineer Rob Stacey on the Google Mobile Blog. “Instead of waiting to go home to check the Internet for ratings and reviews, you can now get all of this information right there on the spot."
Last June, Home Depot took this concept and launched a campaign in which shoppers could view an informational video on Safety Quick’s Fast Attach connection device. By entering an SMS code displayed on in-store Fast Attach product signage, shoppers Florida stores received a link to a mobile video which explained the ease of using the product.
A new company called InMarkit is tailored to this desire for on-the-spot information as well. They add codes to product hangtags, as well as print collateral and web sites, that let customers “bookmark” the item on their phone and add it to a wish list. They can text to retrieve items on demand, request an image or launch a mobile browser to purchase, as well as text to get a promotion that’s relevant and share it with friends directly from their mobile device. “For too long, mobile marketing efforts have simply repurposed existing non-mobile media to a mobile device, not allowing the consumer to choose the message, pull specified content, and interact directly with the marketer,” says Berkley Bowen, InMarkit CEO.
Similarly, there’s StoreXperience’s mobile application. Shoppers who download the application can access product information on their mobile phone while in-store. Retailers, meanwhile, can use the opportunity to cross-sell as well as send special offers, tailored discounts and product recommendations.
We’ll surely be seeing more mobile efforts such as this that bridge the divide between in-store and online shopping.
2) Driving Traffic
The ability to access location and target by place is one of the most buzzed about aspects of mobile, and one that brands ought to take better advantage of. Where is your nearest store? Where can I buy one of your products RIGHT NOW? This is valuable information for consumers, and it can even be relayed without location-aware technology. By including a mobile path (a short code or a mobile web site URL, for example) on all outdoor creative, marketers can not only increase awareness of their product/service, but drive consumers into a store immediately.
Starbucks recognized this power back in 2007 when it allowed customers to text their zip code to MYSBUX and receive a list of nearby Starbucks in response. More recently, Reebok drove traffic to Finish Line stores with an SMS and Interactive Voice Response mobile program. An SMS message from NBA star Kenyon Martin was sent to opted-in male sports fans and provided an 800-number from which Martin informed callers of details on Reebok’s NBA merchandise. In addition to promoting the line, the phone call directed callers to their nearest Finish Line retail store.
Drilling down even further, location can even be used to target consumers by what aisle they are browsing in. Utilizing low cost WiFi hotspots, Acuity Mobile’s Aislecaster is accurate up to 3-5 feet and targets promotions accordingly. For example, a customer in the Personal Care aisle might get an incentive to buy face wash.
3) Loyalty programs and mobile coupons
Mobile can be a great channel of communication for loyalty programs, offering unparalleled targeting and personalization options. At about 200 Stop & Shop and Giant grocery stores nationwide, Modiv and Motorola have partnered to implement a mobile handheld device that allows you the scan and bag in your cart and gives consumers coupon and promotional information based on their personal preferences. While they currently use special hardware in these stores to push this information, this is something that could easily done on the phone.
Zavers does just this: The company has a system that links online and mobile incentive placement with in-store redemption. The Zavers button can be embedded in any digital media—Internet, mobile, email, and interactive TV—and customers can transfer all these deals directly to a loyalty card on their phone. This means that coupons are now infinitely trackable; marketers can measure the effectiveness of incentives from online ad impression to retail purchase.
Even without software, there are simple SMS-based ways to deliver mobile incentives. Urban Outfitters uses a sign at the register to inform shoppers of their mobile loyalty program. Their young, mobile-savvy clientele can text a short code to stay informed of the store’s events and promotions while they wait in line. Armani aims to drive more traffic in-store through window signage that gives passersby $10 off if they text in. Even when mobile couponing was relatively new in 2006-2007, MobileBehavior saw a 36 percent coupon redemption rate among text subscribers at teen retailer Mandee.
4) Campaign extension
Advertising campaigns generally live in print, online or on TV. Why not amplify their reach and bring them in-store? Mobile can help leverage a brand’s previous legwork and remind the consumer of it while making their purchasing decision.
Amstel Light recently launched the second stage of its “One Dam Good Bier” campaign which promotes “Amstel’s Amsterdam” through an interactive Web site, new packaging, outdoor and print ads and a text-to-win sweepstakes. All in-store collateral extends this campaign by featuring a description of the “Unlock the Taste of Amsterdam” sweepstakes, which allows consumers to enter by text messaging a unique code found on their Amstel Light bottle to win the grand prize of a three-night, four-day stay in Amsterdam for one winner and three friends.
Digital OOH presents an amazing opportunity to present offers and downloadable content during shoppers’ “down time.” The perfect place to do this is in a store by the checkout—when people are waiting, phone in hand, with time to kill. Why not include a mobile call to action? Danoo, a Digital Out-of-Home (DOOH) network that places screens near POS, is doing just this—almost all of their in-store campaigns in Q408 had a mobile component. They’ve been most surprised by the success of mobile content downloads through Bluetooth, citing a 30 percent download rate (out of all people with compatible devices) for a Dancing with the Stars campaign. That’s 3 percent of all people, whereas similar SMS-driven campaigns have tested at closer to 0.3 percent.
To increase brand affinity, stores can offer their own branded content or partner content to consumers. These people can then continue to engage with the brand even after they leave the store.
5) Brand utility
Visa launched a campaign in summer of 2008 to promote the concierge services associated with their new upscale Signature Card. Tapping into the insight that many shoppers are overwhelmed by the complexity of wine choices while shopping, Visa set up a service where you could text what you were having for dinner to a short code and receive a wine recommendation. You could also text which wine sounded interesting and get a recommendation on the best food pairing. While this example wasn’t necessarily driving sign-up of Visa cards in store, imagine if a winery provided this utility to differentiate itself on the shelf. This idea could be applicable to many other categories. For example, shoppers could text their complexion to a cosmetics manufacturer and receive recommendations on color choices and makeup application techniques.
Future Applications
Mobile technology will only progress, and there are many more possibilities that will open up down the road. If retailers provide open WiFi access in stores, mobile phones could access it for faster processing speeds, enabling more robust digital experiences. Here is a sampling of what may come down the pipeline...
While their readers need to be downloaded, QR (Quick Response) codes are becoming standardized in the U.S. and readers may soon come preloaded on most phones. The codes allow direct links to mobile websites via physical codes. Ralph Lauren’s youth-oriented Rugby brand has already implemented these codes in selected stores, letting consumers find more information about a product or order it through their phones. This would make even more sense for a brand that is sold through multiple retailers where staff might not be as informed on their product. Really, who needs a salesperson when you have a virtual one? Image Recognition (IR) technology such as Snaptell could also be employed in stores—and without a reader. Just snap a photo and send it to their short code for decoding.
Perhaps due to its cool factor, Augmented Reality (AR) is capturing people’s imaginations lately. The technology imposes a multi-dimensional animation on a screen through webcam image recognition. By combining the physical and virtual worlds, AR can give you more information on your surroundings or provide virtual testing, for example. What if you could point your phone at a container and see which of your friends liked it? How about snapping your photo and seeing what you’d look like with a new hair color? Applications like Sixth Sense, Sekai Camera and GE’s Smart Grid are showing the world the potential of the technology, and it won’t be long before you see more brands playing with it.
Conclusion
Consumers are already using their mobile devices as an informational and decision-making tool while shopping. Here are some tips for marketers looking to take better advantage of mobile:
• Create a Sustained Presence: Rather than a one-off promotion, look to put a stake in the airwaves with a sustained mobile presence like a short code and a WAP site. These can be plugged into any mobile initiative you do while building your brand in a mobile environment.
• Provide Entertainment and/or Utility: Advertising is moving from a distraction model towards an engagement model, and consumers need to see the value in whatever you are offering – whether that is a coupon or a laugh.
• Make it Relevant: One of the biggest advantages of mobile is three-point targeting: time, location, and demographics. Use these! The more personal and contextual your marketing is, the more likely it is that people will respond to it.
• Put the Consumer in Control: Phones are considered to be a personal, filtered space, so put the consumer in control. Always allow people to opt-in and opt-out at any time and be very clear about what people are signing up for.
• Promote Interaction: Texting is a two-way medium, so use it. Have a conversion with your consumers—answer their questions, ask about their experiences, or simply thank them for participating in a campaign.
• Ensure Mobile is Integrated: Instead of asking, “What can I do with mobile in stores?,” the question is rather, “How do I extend my marketing strategy into stores with mobile?” This means that agencies—advertising, media, mobile—need to work together from the outset to ensure cohesiveness from conception to execution.
Overall, mobile at POS can give a brand greater reach and control of a user’s in-store experience. As outlined above, there are any number of applications that are relevant to many categories. And since the space is still relatively uncluttered, now is the perfect time to take advantage of mobile in-store marketing.
Allison Mooney is VP, Director of Trends & Insights at MobileBehavior, Omnicom’s mobile strategy and marketing agency. She runs their global trends lab Next Great Thing.
Christina Lin is a Digital Marketing Strategist at Tribal DDB. She is a part of the Omnicom MBA Resident program.
