Mobile SHOPPER MARKETING Venky Shankar, Suresh Ramanathan, Mirella Kleijnen, Ross Rizley, Shawn Morrissey, and Steven Holland

Agenda What is mobile shopper marketing? The influence of mobile in shopping cycle Top issues in mobile shopping Organizing framework/Approach 2

What is Shopper Marketing? “Shopper marketing describes the planning and execution of all marketing activities that influence a shopper along  and beyond  the path-to-purchase, from shopping trigger to purchase, consumption, repurchase, and recommendation stages” (Shankar 2014) 3

The Shopping Cycle © 2010 Venkatesh Shankar. All rights reserved.4

Scope of Mobile Connected device, in-motion, converged channel/device Friction-reducing medium Allowing CRM, voice of customer, product set Part of SMACIT Doing things, making decisions on the move 5

Scope of Mobile Contextual: Location, Time, Weather Emotional connect Browser independence Shopper convenience-predictability Problem solving and solution-centric Goal fulfillment (utilitarian/hedonic) 6

Areas with Most Mobile Influence Data proliferation Visualization tool Sustainable competitive advantage More knowledge about shopper Repeat buying vs. first-time buying Enhancing experience Feedback mechanism Realtime emotional solver 7

Mobile Influence Leverage tactical information Predict behavior Be an intelligent agent Replenish products Customize offers when permission is granted Enable Cross-category experience 8

Mobile Influence B2B2C—partnering, using API (Uber, Amazon, 7 Eleven) Distribution + Shopping centers Disrupt shopping practice Amazon lockers Identify shopping abandonment and fix it Data capturing 9

Top Issues Assortment across channels Realtime/Dynamic pricing Attribution Digital yield/ROI Conversion metric Engagement App overload (App within App) Associates’ role in leveraging mobile influence 10

Top Issues Influence employee journey (Well-armed shopper) – Leverage voice of the associate (VOA) – WIFM orientation of the associates – Employee gamification Is mobile making shopper deal prone? Are retailers fulfillment arm of Google? How much does shopper want firm to know about her? 11

Top Issues How are you adapting to the changing environment (mobile, shopper needs) Changing the urgency of change How to target and personalize in a relevant and meaningful way---offer—context & timing Price of asking customer the information she wants to share Dynamic (time, location, weather) 12

Top Issues Value of data Intelligent recommendation systems Leverage volume, velocity, variety, veracity Leverage big data—value extraction, capability Using data for anticipatory solution (voluntary information, past patterns) Making offers relevant/valuable Modeling—what to be done with the data 13

Top Issues Quickly learn and adapt Keep up with the pace of device changes Deliver a rich experience in a device-agnostic world Security in a networked world Mobile chips and transmission Network effect (link to AHA, Jenny Craig) How to instant gratify a fully instrumented shopper 14

Top Issues Help create the dream concierge Build trust through B2B partnership Enhance execution capability (Amazon locker, Lids/Macy’s NFL merchandise, Sunglass hut) Data ownership in partner initiative Virtual currency (Coke MyCokePlus, China’s QQ) 15

Top Issues Mobile payment US/Europe/International differences Allocation issues Intelligent avatar/Dream concierge— knowledge based system/expert system 16

Other Research Issues Role of mobile to activate, dynamically trigger change to multiple goals Mobile’s role in shopper engagement Shopper-created offerings/experiences Enable serendipitous discovery of purchase Mobile device design (form factor, responsive design) affecting path to purchase 17

During Consideration Choice (Brand/Cat./Channel) Experience After Post-purchase sentiment Repurchase consideration Advocacy/WOM Recommendation Before Motivation Search Discovery Organizing Framework Mobile Device Medium Technology Actor Usage/Touch Exposure, Engagement Emotion Location/Time/Context Role of Manufacturer/Service Provider Acquisition/Retention Story Telling Geofencing/Beacon Search/Bundling Display/Functional Conversion/Disruption Data Capture, Analysis, Execution of Insights

Organizing Framework 19

Thank You ! 20