Archive for the ‘Mobile’ Category

NRF Top 10 – #3 IBM/Cisco Mobile Concierge

Thursday, January 28th, 2010

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Number 3 on the list is the IBM/Cisco Mobile Concierge. This was a concept demonstration of how the in-store shopping experience could be differentiated by leveraging the customers own mobile device.

One thing I learned was that Cisco wireless routers could determine the customers in-store location down to the meter.  This can enable shelf or “micro-location” based services.   Using customer location and other data (e.g., loyalty, purchase history),  the retailer can make offers available that are highly relevant at that moment and at that shelf.

Items scanned by the customer could provide additional information.  There are plenty of services that do this today, but if the retailer is offering this through their own app, there is a greater ability to deliver desired messaging along with reviews and other information.  If an item is not in stock, or the customer simply wants it delivered to their home, this can be seamlessly done from their phone.

Retailers could give customers the ability to find items in-store and, using the in-store location capability, virtually walk the customer to the product.  Additionally, rather than finding the nearest customer service phone, the customer could simply press a button on their in-store app and get help immediately.

Finally, with current smartphone scanning technology (like RedLaser), there is no need for the price-checker.  You can put it in the hands of the customer.

I’m sure there are any number of new services that will be added in the future.  I think the key is for retailers to start thinking about how to leverage the customers own device to provide services which differentiate the in-store experience.

Photo by nedrichards

NRF Top 10 – #4 Modiv Media Shopper

Wednesday, January 27th, 2010

The Modiv Media Shopper offers value to both the customer and the retailer.  As you will see below, customers can scan products as they shop, see their running total, and are made aware of deals based on their location in the store (and seemingly other criteria).  Checkout is done simply by handing over the scanner (and I would think at least a visual check by the cashier).

The future of in-store technology is increasingly in the hands of the consumer.  We’ve gone from cashier-run checkout to self-checkout, to now checkout with a store-provided mobile device.  In the near future, we will see self checkout with the customers own device along with  relevant promotions and services that you can only get on proprietary devices today.  These applications will be powered by software like RedLaser running on the customers smartphone.

In-store mobile is just getting started.  Innovative retailers will use it to gain preference, differentiation and competitive advantage.

NRF Top 10 – #9 FaceCash

Tuesday, January 19th, 2010

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FaceCash is another take on the digital wallet.  From their handout at the show,

“Use FaceCash and the Thinklink network to pay for goods and services at participating merchant stores – all with your iPhone/iPod Touch, Blackberry or Android phone.  Everything about good old plastic, from rewards to statements, is even better with FaceCash.  It’s easy, and it will save you time and money whether you are buying or selling. “

Here’s how it works (from their brochure at the show):

  1. Deposit – the customer deposits money into their FaceCash account allowing them to use the funds anywhere FaceCash is accepted.
  2. Present – Each FaceCash account is tied to a unique barcode that can be displayed on a smartphone or self-printed card to identify customers.
  3. Scan – as soon as the merchant scans the barcode, the customers face appears on the merchant’s PC or Mac to prevent fraud.
  4. Track – Funds are transferred instantly from customer to merchant.  Both the customer and the merchant have complete records available on-line of everything bought and sold.

The team at NRF told me that unlike Square (which also provides a card swipe device for the iPhone ) FaceCash was meant to be like ‘paypal’ for retailers and leverages scanners instead of a proprietary device.

The mobile wallet is something of a holy grail being pursued by mammoth, global companies (e.g., Qualcomm ).  It’s coming, but I don’t think companies like FaceCash will be able to get the critical mass required.  So, while I don’t think FaceCash is the next big thing,  it’s a good illustration of where we are heading.   For independent business owners  FaceCash, Square, Mophie and perhaps Apple itself, all signal a fairly significant change in the cost of being able to accept credit cards.  There will be impact to the incumbent hardware providers in this space as well as the large payment providers – to the benefit of retailers large and small.

Unfortunately, I think the FaceCash guys have a very tough road ahead up against better capitalized, larger competition, but the concept itself is a good example of where things are heading.

Photo credit:  iPhone Mobile Payment 100 Euro by Monty Metzger

Swagg

Monday, January 18th, 2010

Swagg

I’m not sure how I missed this one.  Thanks to Alan Taetle for pointing it out to me.   I remember seeing their booth at NRF, but it just looked like a bunch of tchotchke’s with an attitude.  Needless to say, I missed this for my top 10 list, but in retrospect this likely would have gotten a top spot.

We’ve been hearing about digital wallets for a long time now.  At CES last week, Qualcomm CEO Paul Jacobs announced Swagg.

According to the PDF I found at Pixelatedeek.com,  “Swagg enables smart, efficient and rewarding transactions on the go.  Swagg allows users to purchase, share and exchange gift cards, receive and redeem offers, view loyalty card points or balances, share content and more – straight from the convenience of a mobile device.”

According to an article by Mike Freeman of the Union tribune, Paul Jacobs (Qualcomm’s CEO) said the mobile-gift-card portion of the Swagg platform should be available before the next holiday season.

There are quite a number of new players in the mobile payments space – Square, Mophie, FaceCash and more traditional players like VivoTech and Verifone.  Swagg is a big play, but Qualcomm is a great company (as is their Atlanta-based subsidiary driving this – Firethorn) with massive resources and global reach.

Swagg has the potential to significantly impact the customer experience as it relates to loyalty and gift cards making them both mobile and social.  Definitely one to watch.

There’s not much on the website yet, but here’s a slick video for your enjoyment.


Mobile in Retail?

Saturday, January 9th, 2010

Just saw this posted at the Global Retail Executive Council blog.  This could explain the confusion I expressed in my previous post.

mobile poll

Mobile, Social Media and the Customer Experience

Friday, January 8th, 2010

iStock_000007369128XSmallJoe Skorupa, Editor-in-Chief, RIS News recently wrote a blog post entitled “Fearless Retail Predictions: Part 2.”  He interviewed a strong panel of industry analysts, technology vendors and one retailer to come up with a list of predictions for 2010.   The predictions were heavily slanted toward the use of mobile and social media technologies. 

However, when you juxtapose these predictions with a recent comment from the RIS/IHL Group Store 2010 Store Systems Study, something is not lining up. 

“In this year’s study, we also asked how retailers use technology to enhance the customer experience. Should technology be used front and center as part of the experience or behind the scenes? Nearly half of the respondents (48%) answered: “We use technology to enable speed and execution, but it is largely invisible to consumers other than speed through checkout.” In other words, the customer experience in the store is not tied to technology.”

I’m confused because I believe that the power of mobile and social media technologies lies in just that – enhancing the customer experience.  This survey is directed heavily at IT personnel (63% of respondents).    Perhaps retail IT executives don’t see mobile and social media technologies as enhancing the customer experience.  Perhaps they are just not involved with how these technologies are being leveraged. 

Based on my experience with retail executives, these tools are being investigated mainly by the marketing department led by ad agencies looking for ways to capitalize on the changing media landscape.    Agencies are proposing mobile applications, couponing services, location-based services, social media campaigns and other creative ways of tapping into the social and mobile scene; all without much IT involvement. 

CIO’s need to get their arms around these marketing efforts – not to control them, but to help the organization understand how to more fully leverage these technologies;  integrating mobile into multi-channel and loyalty efforts, integrating social media into business intelligence efforts.    If left to outside forces, opportunities to leverage these technologies to differentiate the customer experience may be diminished or lost.  When these tools are integrated into the retailers’ infrastructure, they will truly become technology which enables a differentiated customer experience.

Interview with Jack Dorsey about Square on CNBC

Tuesday, December 8th, 2009

Jack Dorsey on CNBC talking about Square.

Mobile Internet and Retail – Part Two

Tuesday, December 1st, 2009

Pretty young woman using her mobile at a clothes storeThis is part two of a blog post regarding Mary Meeker’s 2009 Web 2.0 presentation and implications for retailers.  For me, there are six key takeaways:

1.  Your customers will increasingly carry massive computing power and, via the cloud, access to any information and services they want.  You need to make them value yours vs. some third party price comparison site.   Build and deploy valuable applications that support the customer through the buying cycle from search, to store, to purchase.

2.  Customers will expect Wi-Fi service at every retail location.  I know there are issues.  Provide it anyway.

3.  Location, location, location.  Not yours; your customers.  Knowing the customers location will enable entirely new ways of communicating and fostering a relationship with them.   Be careful.   You need to offer value for this information.   If you use this information to spam them, the opportunity for conversation will be lost for a very long time.

4.  Ready or not, devices like the iPhone are coming to the retail enterprise.  People are using them in their daily lives and will see the value of using them at work.  Security and other concerns need to be addressed, but departments and business units will push retail CIO’s to incorporate these tools sooner rather than later.

5.  The information kiosk is dead.  The customer is carrying the next generation kiosk with them.  Make this part of your mobile commerce strategy.

6.  As in Japan, mobile commerce will represent the fastest growing channel for multi-channel retailers.  I know; we’ve been talking about mobile commerce for a decade.  The iPhone changed everything.  If you don’t have a mobile commerce strategy.  You need to develop one – now.

Mobile Internet and Retail – Part One

Sunday, November 29th, 2009

mary meeker 2Last month, I wrote a post summarizing Mary Meeker’s recent presentation at Web 2.0.   I was recently thinking more about the implications to retailers.  As a recap, below are some key facts and comments by Meeker.

From the wireless arena:

  • GPS – 421MM GPS Chips were sold in 2008(e) representing 57% annual growth.  Cell phones and PDAs were 60% of shipments.
  • 3G – 490MM global users.  Grew at a 45% annual rate in Q2 09.  3G users are 12% of the mobile user population forecasted to grow to 44% by 2013.
  • Wi-Fi – 319MM chipsets were sold in 2008E.
  • AT&T’s mobile data traffic is up 50X in the past three years – a 4,932% increase!
  • Wi-Fi is still growing considerably.  There are currently 35MM hotspots.  Interestingly, 42% of iPhone usage happens on Wi-Fi networks.
  • Mary predicts 3G usage will hit an inflection point in 2010 (>20% usage).
  • Mary believes that location-based services are key to the mobile internet ’secret sauce’.

Facebook and Apple are driving independent but overlapping innovations in social networking and mobile platforms:

  • Facebook has 390MM users representing 153% annual growth.  There are 350,000 apps, and 500MM downloads.  People are spending 6B minutes on Facebook each day!  YouTube and Twitter are also significant and growing.
  • Apple iPhone/iPod Touch has 57MM users, representing 166% annual growth, 100K apps and 2B downloads.
  • Apple unshackled mobile developers from Carrier “walled gardens”.  The iPhone/iTouch represent the fastest hardware user growth in consumer technology history.

Japan is leading the way in the mobile space.  If you look at the 2008 world-wide mobile internet revenue mix, it resembles Japan in 2000.  If you look at Japan today as a proxy for where the rest of the world is headed, you see slight growth in mobile advertising revenue, but greater market share growth in mobile paid services (travel booking, mobile banking) and mobile online commerce (retail sales of physical goods and digital goods such as ringtones, wallpaper) and a lower percentage of revenue coming from mobile data access.   In Japan, mobile is currently running around 18% of total eCommerce revenue.

So, what does this mean for retailers?  Stay tuned for the next post on Wednesday…

Augmented Reality as Key Retail Enabler

Tuesday, November 24th, 2009

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I have found that very often retailers can lag other industries in terms of adoption of more operational technologies, but in terms of customer-facing technologies, which are increasingly powerful and prevalent, they will need to be leaders to differentiate and survive.

Nikki Baird, analyst at RSR Research, wrote a blog post recently entitled “Augmented Reality in Retail”.  In it, she comments:

“[Augmented reality is] closer than you think. And, just as online changed consumers’ expectations from retailers, new user interfaces will easily have the same impact, forcefully thrusting retailers once again to the forefront of consumer technology adoption. Whether they’re ready or not.”

This is clearly going on via the web and even the Sunday paper with companies like Best Buy and Wal-Mart. Increasingly, this technology will be used to differentiate the in-store experience in new, exciting, and innovative ways.