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How mobile will reshape the customer experience

Mobile applications for smart phones are poised to be the future of retailer communications with shoppers.

September 17, 2009

In this age of technology, retailers and brands alike are increasingly looking for ways to build brand recognition, drive sales and redefine how they communicate with shoppers.

While appealing to mobile-enabled shoppers is still an emerging trend, it is undoubtedly accelerating as upcoming generations turn to their mobile devices for coupons, specific product information, brand comparisons and more. Mobile applications for smart phones are poised to be the future for retailer communications with shoppers. This technology will increasingly become a virtual extension of the shelf edge—and a highly complementary component of shopper marketing.

A recently published Deloitte survey confirms 57 percent of consumers already feel they would be interested in receiving a coupon on their phone. Indeed, many shoppers already use mobile technology as part of their shopping, and the sooner retailers begin looking for ways to incorporate this medium into their broader marketing communication plans, the sooner they will begin capturing those shoppers and reaping the benefits. Ultimately, the key to success will be integrating the use of mobile technology across all marketing platforms to deliver a consistent and relevant shopper message that encourages loyalty and results in increased revenue.

Connecting with on-the-go shoppers

Many retailers are communicating via the Web, and while there has been a lot of focus in recent years on building an online presence, returns have been mixed. With many shopping stops driven by convenience and made spur-of-the-moment, shoppers most likely are not checking Web sites before such visits. One solution to reaching these on-the-go shoppers is developing applications that can be downloaded to an iPhone or other smart phones, allowing easy access to a retailer's information. This puts the brand promotion directly into the shopper's hand.

Downloadable information could contain weekly specials and recipes. At least one consumer package goods company has already created an application like this. But the opportunity is wide open for innovative retailers to take the lead and do so much more.

Smart phone apps could be developed to deliver a shopper's history to aid her in putting together a shopping list. In effect, this has the potential of reaching the shopper while she is still in her food pantry planning her shopping trip. Further adding value to a customer's experience, applications could work with a smart phone's GPS-like ability to identify where the user of the mobile device is at any given moment. A retailer could provide a shopper not only with the directions to the retailer's nearest store but also the layout of that store. A shopper could call up her list on her mobile phone and be directed to the very aisle where a product is on the shelf.

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The Best Retail Customer Experiences 2009
 

The Best Retail Customer Experiences 2009

Find out which retailers consumers crowned their favorites in five different categories across eight different retail segments. Get authoritative analysis from members of the Retail Customer Experience Advisory Panel on why these retailers are succeeding. And learn which retail technologies win over customers — and which ones don't matter.

 

Increasing shopper loyalty and basket size

The need for retailers to differentiate themselves from their competitors and to provide a more satisfying shopping experience is greater than ever, and the logic of using existing shopper behaviors—our growing reliance on mobile devices—to drive awareness, loyalty, and sales is undeniable. Rather than trying to teach shoppers where to look for information, marketing where the shopper focuses, such as at her mobile device, puts the message where it needs to be at the right time. Shoppers appreciate the convenient information and may respond to targeted messages with increased purchases of promoted products. Shoppers have demonstrated time and again they are willing to change a habit if there is a perceived benefit.

It's been said that nothing provides opportunity like a good crisis. With today's difficult economy, there has never been a better time for retailers to rethink how they view their customers, their stores, and the interaction between them. Finding ways to engage shoppers in meaningful, one-on-one ways, and providing a retail environment that entices and differentiates, is the right path to shopper loyalty and bigger basket sizes. Mobile marketing, though still in its infancy today, will be a big step in that direction.

Jeff Weidauer is vice president of marketing for Vestcom International Inc., a provider of technological retail solutions based in Little Rock, Ark.

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