From armed to charmed - Ogilvy Mobile Research

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    21-Jan-2015

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Some excellent research from Ogilvy on modern shopper, and how they use the mobile device to influence their decision while shopping. Interviews of 1500 people from Singapore, US and UK

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<ul><li> 1. From armedto charmedPreparing for and profiting from thenew mobile-enabled point of saleMartin Lange Gareth EllenExecutive Marketing Director Director of DigitalMobile@OgilvyOgilvyAction 1</li></ul><p> 2. ContentsIntroduction 3Our research 5The path to mainstream adoption7How to charm the armed19Your 30-day action plan 23Conclusion27Mobile@Ogilvy 29References30Expert Panel31Acknowledgments 33 3. IntroductionTwo separate shoppers lets call them Ira Innovator and Marge Majority headout to buy a new TV. Both Ira and Marge, having done some basic online research,have a pretty good idea of what they want, the price they are comfortable payingand the features they consider important. But no review or stat list can replaceexperiencing your choices in the flesh. How else can you evaluate how productslook to your eye?So, Ira and Marge head off one Saturday morning to the same electronics retailer.Each walks in the door, makes a right turn toward the din of 50 televisions all playingat once and starts to browse.The similarities end there. Ira is armed with Retailers want loyalty, anda smartphone groaning under the weight that comes from trust. Interactof consumer information apps. As soon as with them, respond to theirhe stepped foot in the store, Ira checked in comments, whether they on Foursquare and Facebook Places to see are good or bad, and speak if there were loyalty points or deals to take authentically. When they see advantage of. He scanned TV bar codes to you treat them seriously, youread reviews and to compare prices. When build up more and more trust.he was ready to talk to a human, he did This changes the relationshipanother quick smartphone check to look for from being armed to just any in-aisle specials and then sent a request coming in with an expectationfor assistance. While waiting for a sales of good service. All I haveclerk, he noticed that the TV he wanted to do as a retailer at that pointthe one with the knockout price appeared is fulfill that expectation of to be sold out. Undeterred, he checked good service.the stores stock. It wasnt in the storeroomjon fougner either, but he figured hed wait for the clerkAssociate, Ads Product Marketing Facebook Placesanyway and learn more about his options.The salesperson took him through variousmodels that could possibly fit his needs, andIra took note of features and prices. After about 20 minutes of discussion, Ira thankedthe salesperson politely and stepped away. But he didnt leave the store. Ira didntfind what he was looking for, but he knew a whole lot more than he did before. So,while no one had a screaming deal on the TV that had originally drawn him into thestore, Ira did notice that an online retailer had another perfect model at a great price significantly better than what he was seeing in front of him. He bought it fromhis cell phone, right there and then, and marched off to grab lunch at the burritoplace two doors down. Ira got a new TV. The store, despite having provided greateducation and a free Wi-Fi connection, got nothing.3 4. Marges story runs a different course. Marge Majority, even if she has a smartphone,isnt much of mobile ninja. Sure, she did her online research and also saw thedoor-buster special that drew her into the store. She knows what she wants, or soshe thinks. Marges cell phone stays firmly in her pocket as she walks toward thebank of TVs. Looking around for a while, Marge compares prices and attributesuntil she attracts the eye of a salesperson. While shes disappointed that the TVshe had originally wanted was sold out, she saw more than a few alternatives thatshe could be quite happy with. One was a little betterand a little beyond herbudget. But the salesperson, sensing where she was leaning, gave her innumerabletools to enable her to feel comfortable with the more expensive model that she reallywanted. Marge considered heading home and trolling through all the online retailers,but she knew that this store had good prices. So, why bother? Anyway, once shesaw how nice these new TVs looked, she wanted hers now. She took a deep breathand told the salesperson, Ill take it. At the point of sale, the checkout clerk madea compelling case for the extended warranty, and Marge anted up for that as well.Marge left happy, never thinking to double-check if she could have gotten a betterprice someplace else.The moral of the story isnt what you might expect. Retailers cant run scared fromthe Iras of the world. The Innovators are always going to be ahead of our effortsand are perfectly able to out-compete the retailer in the control and use ofinformation. Even so, we must not react with short-term solutions that damagethe retail environment or the brands we are trying to sell. Ira may always be aheadof us by a step, but a good strategic approach will still give him great value.Were not frightened of Marge, but if we keep on the path were on now, we soonwill be. She wont stay unsophisticated forever, and as her mobile adeptness grows,retailers will have an opportunity to meet her needs at whatever point of sale sheuses. The challenge will be to ensure she becomes a customer charmed by mobilepossibilities, rather than an antagonist armed with a rival storefront in her pocket.OgilvyOne and OgilvyAction set out toThe consumer is blissfullydiscover how the growing penetrationunaware and does not really of smartphones influences the wayhave any requirements.people build brand preference and select, maarten albardapurchase and experience products in three Vice President Global Connections Anheuser-Busch InBev representative international markets: theUnited States, the United Kingdom andSingapore. Retailers need to know whereto focus their energies during this transition to mobile and how they can make thebiggest impact on their bottom lines. Here, too, we uncovered surprising insights conclusions that go against conventional wisdom and have created a 30-day actionplan, based on those ideas, for retailers to follow. 4 5. Our researchIn order to get at what retailers, not to mention brand and product marketers,need to know about the mobile world, we needed to talk to a wide variety of people.Talking to consumers alone, while essential, would not give us enough information.This field is changing too rapidly. Innovators, savvy retailers, and mobile platformand service providers are the ones leadingthe bulk of consumers to explore new In Southeast Asia, they are much mobile behaviors. Therefore, we started more receptive to things big and our work with 15 hour-long interviews with small on their mobile device.senior retailers, product marketers, industrybarney loehnisexperts, point-of-sale agencies, digital Chairplatform providers and mobile service Mobile Marketing Association, Asia Pacificproviders. To the knowledge obtained fromthese interviews, we added findings from60 in-store video interviews in communitiesheavy with Innovators: San Francisco, Singapore and London. An online surveyof 1,500 people worldwide 500 each in Singapore, the U.K. and the U.S. rounded out our data collection.We analyzed our data from multiple perspectives in order to understand thedistribution of mobile behaviors and how those behaviors are manifested byshoppers and catered to by retailers and brand marketers.defining mobile behaviorsOur first task was to understand who we were talking about, and to do that wemodified Everett Rogers Diffusion of Innovations bell curve to reflect the realitiesof the mobile marketplace in the U.K., the U.S. and Singapore.Innovators are the top 5% of our sample. They are the sort of consumers who areusing leading-edge services such as RedLaser and Nextag, and who post ratingson Rotten Tomatoes or tweet (often negatively) about a brand.Opinion Leaders arent quite there yet. They may be iPhone owners and theymay even scan bar codes with the device, but they are not using their iPhones asintensively as Innovators are. Opinion Leaders may shop at retail stores and thenbuy online, or they may ask retailers to match prices shown on their phones.Opinion Leaders may be on Bizrate, LinkedIn or Twitter. 5 6. The Early Majority is moving toward Opinion Leader behavior, but for now they aremore limited in their mobile behavior. They are likely to have a smartphone and visitGroupon, and they may take advantage of coupons delivered via text message. The Late Majority is still largely PC based.Consumers are using theirTheyll befriend a brand on Facebook,mobile devices more and more use Consumer Reports online or maybe evento enhance their shoppingask a store to match a price from anexperience. As we move online printout.forward, consumers aregoing to be demanding more And finally, Laggards have not moved pastand more out of their cell early online shopping behaviors. Amazon,phones to really enhance eBay and PayPal are as far as theyretheir lives. going to go. If they use their phone while antonia banuelosshopping, they most likely use it as a means Hispanic Advertising Specialist, IKEA to call a friend to ask for an opinion.three markets, but only two patternsOur research showed strikingly different patterns in mobile shopping behaviorsbetween more developed and less developed mobile markets. Though it willsurprise some Westerners, the most advanced mobile markets are in theFar East, with Singapore in the vanguard. By comparison, shoppers in theU.S. and the U.K. have not yet exhibited nearly as many mobile behaviors.As happens with online behaviors, mobile activities seem to follow a predictabledevelopment pattern as the population becomes savvier to the technology.The U.S. and U.K., in other words, will eventually become like Singapore, atleast when it comes to the fatter parts of our modified bell curve. The Innovatorsare already fairly consistent in their behaviors across all three markets.But despite this trend, marketers cannot adopt one strategy across all countries,plugging in the same pieces as the mobile market matures, especially when itcomes to executions and platform adaptations.And even in more advanced markets such as Singapore, the fact is that mostmobile behaviors have us running panicked for no good reason. The Majoritiesare just now coming around to the mobile behaviors that will stress the retailenvironment. The time to act is now, to be sure, but marketers are not late at least not yet.6 7. The path to mainstreamadoptionWe were not surprised to find that Innovators foreshadowed mainstream consumerbehavior in their advanced use of mobile phones in the retail environment. In theU.S., 85% of Innovators searched Google for product information from their phonewhile they were in a store. Twenty-four percent of the Early Majority is also alreadydoing this, a number that rises to 50% among smartphone-owning Early Majoritymembers. The numbers are approximately the same in the U.K. but are much higherin Singapore. United StatesOpinion Early Late Innovators LeadersMajorityMajority Laggards85%55% 24%9%4%50% among smartphone owners SEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore7 8. United Kingdom Opinion Early LateInnovators LeadersMajorityMajorityLaggards 85%55% 24%9% 4% 40% among smartphone ownersSEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore Singapore Opinion Early LateInnovators LeadersMajorityMajorityLaggards 84%83% 69%54% 20% 75% among smartphone ownersSEARCHED GOOGLE FROM PHONE TO GET INFORMATION ON A PRODUCT Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 8 9. Similarly, 77% of Innovators used a mobileThe adoption of commerce on device to scan a QR code or bar code whilethe mobile is much quicker than shopping. Nineteen percent of the Earlypeople had anticipated. Majority has also adopted this behavior shaun gregory(40% of the smartphone set). Once again, Managing Director, O2 Mediathe numbers are broadly similar for theU.K., but Singapore, where QR penetrationis higher, shows a higher proportion of thisbehavior among smartphone users. United States OpinionEarly LateInnovators Leaders MajorityMajority Laggards 77% 38% 19%3%0%40% among smartphone owners SCANNED A BAR CODE OR QR CODE WITH MOBILE PHONE Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 9 10. United Kingdom Opinion Early LateInnovators LeadersMajorityMajority Laggards 67%40% 13%5%0% 18% among smartphone owners SCANNED A BAR CODE OR QR CODE WITH MOBILE PHONESource: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,United States, United Kingdom, Singapore Singapore Opinion Early LateInnovators LeadersMajorityMajority Laggards 61%37% 33%6%0% 62% among smartphone owners SCANNED A BAR CODE OR QR CODE WITH MOBILE PHONESource: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,United States, United Kingdom, Singapore 10 11. online buying behaviors transfer to mobile environmentWe are also seeing a transfer of online buying habits from computers to mobiledevices. Not surprisingly, 85% of Innovators looked at a product in-store andthen ordered it online. However, a staggering 71% of that same group looked at aproduct in-store and then ordered it from their phone. For the Marges of the world,the gap between these two behaviors is much larger: 66% bought a product onlineafter browsing for it in-store, while only 8% did the buying from a phone. The gapis roughly the same in the U.K. and is much smaller in Singapore.United StatesOpinion Early Late Innovators LeadersMajorityMajorityLaggards85%77% 66%53% 29%LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE71%28% 8%1%0% LOOKED AT A PRODUCT IN-STORE AND ORDERED FROM PHONE IMMEDIATELYSource: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500,United States, United Kingdom, Singapore11 12. United KingdomOpinionEarly Late Innovators Leaders MajorityMajorityLaggards90%69% 76% 69% 50%LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE64%27% 14%7%3%LOOKED AT A PRODUCT IN-STORE AND ORDERED FROM PHONE IMMEDIATELY Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore SingaporeOpinionEarly Late Innovators Leaders MajorityMajorityLaggards83%69% 59% 47% 34%LOOKED AT A PRODUCT IN-STORE AND THEN ORDERED IT ONLINE67%51% 27% 15%0%LOOKED AT A PRODUCT IN-STORE AND ORDERED FROM PHONE IMMEDIATELY Source: OgilvyOne and OgilvyAction Global Mobile Retail Study, March 2011, n=1,500, United States, United Kingdom, Singapore 12 13. Similarly, both Innovators and the EarlyProbably 30 to 40 percent of Majority ask stores to price-match basedsmartphone users are doing a on a web printout, b...</p>