2. WEBINAR How Mobile Disrupts The Path to Purchase Nicole Dvorak, Data Scientist Anjali Lai, Analyst July 22, 2015. Call in at 10:55 a.m. Eastern time

3. © 2015 Forrester Research, Inc. Reproduction Prohibited3 We work with business and technology leaders to develop customer-obsessed strategies that drive growth.

4. © 2015 Forrester Research, Inc. Reproduction Prohibited4 Agenda (first appearance) › First agenda item › Second agenda item › Third agenda item

5. © 2015 Forrester Research, Inc. Reproduction Prohibited5 Technographics 360° Technographics survey data Who are they? What do they say they do? Technographics behavioral data What are they doing? Where and when are they doing it? Technographics community data Why are they doing it? Why are they saying it? Technographics social listening data What are they talking about? How are they talking about it?

6. © 2015 Forrester Research, Inc. Reproduction Prohibited6

7. 7 CustomerMarketing Discover Exposed to new fundamental need Aligns marketing messages to fulfill customer needs Develops need-creating messaging Researches unmet opportunities Explore Delves into options available by brand, price, or location Maps the customer’s path to purchase Supports creation of comparison tools and competitive analysis Buy Completes purchase in the most convenient channel Defines cross-sell/upsell opportunities and drives top-line and basket-size growth Provides consistent experience and data about customer across online, offline, and third- party channels Use Takes possession of the purchase and beings to put it to use Not core to marketing function Ask Solicits input about the product generally or about a specific issue Monitors service requests for insights about product experience Refines marketing collateral to better reflect the product experience Aligns the delivery of customer service with expression of brand experience Engage Connects with the brand, company, and/or peers about the product Solicits reviews with incentives Identifies new needs that can lead to discovery of new need Source: “The Customer Life Cycle: A Blueprint For Customer-Obsessed Enterprises” Forrester report“The Customer Life Cycle: A Blueprint For Customer-Obsessed Enterprises

8. © 2015 Forrester Research, Inc. Reproduction Prohibited8 Agenda › Mobile’s role across purchase stage: from product discovery to post-purchase engagement › Mobile’s role across age groups › Mobile’s role across product categories: consumer electronics, CPG, and personal care › How mobile is disrupting the travel experience: a deep dive

9. © 2015 Forrester Research, Inc. Reproduction Prohibited9 Agenda › Mobile’s role across purchase stage: from product discovery to post-purchase engagement › Mobile’s role across age groups › Mobile’s role across product categories: consumer electronics, CPG, and personal care › How mobile is disrupting the travel experience: a deep dive

10. © 2015 Forrester Research, Inc. Reproduction Prohibited10 Discover phase Base: 588 US online adults (18+) who have used their mobile phone to purchase a product in the past three months; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

11. © 2015 Forrester Research, Inc. Reproduction Prohibited11 Explore phase Base: 588 US online adults (18+) who have used their mobile phone to purchase a product in the past three months; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

12. © 2015 Forrester Research, Inc. Reproduction Prohibited12 Explore phase Base: 2,581 US online smartphone owners (18+); Source: Forrester’s US Consumer Technographics ® Behavioral Study, June 2014 to November 2014

13. © 2015 Forrester Research, Inc. Reproduction Prohibited13 Explore phase SMARTPHONES Base: 344 US online smartphone owners (18+) who researched online using a smartphone before purchasing; Source: Forrester’s US Consumer Technographics ® Behavioral Study, June 2014 to November 2014

14. © 2015 Forrester Research, Inc. Reproduction Prohibited14 Explore phase TABLETS Base: 66 US online smartphone owners (18+) who researched online using a tablet before purchasing; Source: Forrester’s US Consumer Technographics ® Behavioral Study, June 2014 to November 2014

15. © 2015 Forrester Research, Inc. Reproduction Prohibited15 Buy Base: 588 US online adults (18+) who have used their mobile phone to purchase a product in the past three months; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

16. © 2015 Forrester Research, Inc. Reproduction Prohibited16 Buy 1. Lack of security 2. Difficulty researching “I need the full desktop/laptop experience for product comparison. When I recently purchased a washer and dryer, the phone was helpful in the store for price comparisons but [it was] difficult to obtain other information.” (Male, 55 to 64 years old) “I need the full desktop/laptop experience for product comparison. When I recently purchased a washer and dryer, the phone was helpful in the store for price comparisons but [it was] difficult to obtain other information.” (Male, 55 to 64 years old)

17. © 2015 Forrester Research, Inc. Reproduction Prohibited17 Buy What type of product did you buy using your mobile phone while not in a physical store? Base: 1,284 US online adults (18+) who have used their mobile phone to purchase a product in the past three months; Source: Forrester’s North American Consumer Technographics ® Retail Survey, 2015

18. © 2015 Forrester Research, Inc. Reproduction Prohibited18 Engage phase Base: 588 US online adults (18+) who have used their mobile phone to purchase a product in the past three months; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

19. © 2015 Forrester Research, Inc. Reproduction Prohibited19 Engage phase Flexibility = Convenience

20. © 2015 Forrester Research, Inc. Reproduction Prohibited20 Agenda › Mobile’s role across purchase stage: from product discovery to post-purchase engagement › Mobile’s role across age groups › Mobile’s role across product categories: consumer electronics, CPG, and personal care › How mobile is disrupting the travel experience: a deep dive

21. © 2015 Forrester Research, Inc. Reproduction Prohibited21 Young consumers YOUNGER CONSUMERS USE MOBILE DEVICES TO CONNECT WITH BRANDS’ POST-PURCHASE reported engaging with a brand/company using a smartphone after they purchased One in three Mobile app Mobile website Online review forum Social networks How? Base: 89 US online adults aged 18 to 24; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

22. © 2015 Forrester Research, Inc. Reproduction Prohibited22 Young consumers YOUNGER CONSUMERS USE MOBILE DEVICES TO CONNECT WITH BRANDS’ POST-PURCHASE “Using a phone or tablet to re- engage with a company is mostly out of convenience. I can quickly call or email the company and also go to the brand’s website to write a review. In addition, I can use a phone or tablet to talk to people on social media about the product.” (Male, 18 to 24 years old) “Using a phone or tablet to re- engage with a company is mostly out of convenience. I can quickly call or email the company and also go to the brand’s website to write a review. In addition, I can use a phone or tablet to talk to people on social media about the product.” (Male, 18 to 24 years old) Base: 89 US online adults aged 18 to 24; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

23. © 2015 Forrester Research, Inc. Reproduction Prohibited23 Young consumers YOUNGER CONSUMERS USE MOBILE DEVICES TO CONNECT WITH BRANDS POST- PURCHASE

24. © 2015 Forrester Research, Inc. Reproduction Prohibited24 Middle-aged consumers MIDDLE-AGED CONSUMERS TURN TO TABLETS WHEN RESEARCHING reported researching a product using a tablet before they purchased (of those that researched online) One in four Retailer websites Email from retailer Search engines How? Base: 127 US online adults aged 35 to 44; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

25. © 2015 Forrester Research, Inc. Reproduction Prohibited25 Middle-aged consumers MIDDLE-AGED CONSUMERS TURN TO TABLETS WHEN RESEARCHING Vivid illustrations Video over text Easy input methods Thoughtful margins Appropriate white space

26. © 2015 Forrester Research, Inc. Reproduction Prohibited26 Older consumers OLDER CONSUMERS ARE SLOWER TO ADOPT MOBILE DEVICES ON THEIR PATH TO PURCHASE

27. © 2015 Forrester Research, Inc. Reproduction Prohibited27 Agenda › Mobile’s role across purchase stage: from product discovery to post-purchase engagement › Mobile’s role across age groups › Mobile’s role across product categories: consumer electronics, CPG, and personal care › How mobile is disrupting the travel experience: a deep dive

28. © 2015 Forrester Research, Inc. Reproduction Prohibited28 Consumer electronics CONSUMER ELECTRONICS (CE) PURCHASERS FIND PRODUCTS ONLINE Base: 55 US online adults (18+) who purchased a consumer electronic in the past two weeks; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

29. © 2015 Forrester Research, Inc. Reproduction Prohibited29 Consumer electronics CONSUMER ELECTRONICS (CE) PURCHASERS EXPLORE PRODUCTS USING TABLETS Search engine Retailer’s website How? Base: 55 US online adults (18+) who purchased a consumer electronic in the past two weeks; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

30. © 2015 Forrester Research, Inc. Reproduction Prohibited30 Consumer packaged goods CPG PRODUCTS EXPERIENCE LITTLE DISRUPTION FROM MOBILE One in three reported researching a product using a tablet before they purchased (of those that researched online) 30% researched online Base: 50 US online adults (18+) who purchased a grocery or home goods item in the past two weeks; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

31. © 2015 Forrester Research, Inc. Reproduction Prohibited31 Personal care products SMARTPHONES HELP CONSUMERS ENGAGE WITH PERSONAL CARE BRANDS ON SOCIAL NETWORKS reported interacting with the brand/store after purchasing One in four Base: 58 US online adults (18+) who purchased a personal care product in the past two weeks; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

32. © 2015 Forrester Research, Inc. Reproduction Prohibited32 Personal care products SMARTPHONES HELP CONSUMERS ENGAGE WITH PERSONAL CARE BRANDS ON SOCIAL NETWORKS 80% use a smartphone. Base: 58 US online adults (18+) who purchased a personal care product in the past two weeks; Source: Forrester’s Q3 2014 US 3D Panel Online Survey

33. © 2015 Forrester Research, Inc. Reproduction Prohibited33 Personal care products SMARTPHONES HELP CONSUMERS ENGAGE WITH PERSONAL CARE BRANDS ON SOCIAL NETWORKS

34. © 2015 Forrester Research, Inc. Reproduction Prohibited34 Agenda › Mobile’s role across purchase stage: from product discovery to post-purchase engagement › Mobile’s role across age groups › Mobile’s role across product categories: consumer electronics, CPG, and personal care › How mobile is disrupting the travel experience: a deep dive

35. © 2015 Forrester Research, Inc. Reproduction Prohibited35 Mobile plays a multifaceted role across the travel life cycle.

36. © 2015 Forrester Research, Inc. Reproduction Prohibited36 32% of US online adults use travel- related mobile websites... 26% of US online adults use travel- related mobile applications......and spend close to five minutes per day used accessing these sites.... and spend close to three minutes per day used accessing these sites. Smartphone: the traveler’s companion Base: 1,666 US online adult smartphone owners (18+); Source: Forrester’s Consumer Technographics ® Behavioral Study, Q1 2015

37. © 2015 Forrester Research, Inc. Reproduction Prohibited37 Pre-purchase Consumers start thinking about travel purchases anywhere from one week to three months before actually booking the trip.

38. © 2015 Forrester Research, Inc. Reproduction Prohibited38 28% use Internet searches. Mobile is supplementary to the pre- purchase phase 27% speak to people they know personally. 22% use a company’s website. Base: 379 US online adults (18+) who purchased a travel product in the past three months; Source: North American Consumer Technographics ® Customer Life Cycle Survey 1, 2015

39. © 2015 Forrester Research, Inc. Reproduction Prohibited39 “I use my smartphone and tablet to look up hotels, flights, and car rentals. It’s easy and convenient since I can sit at the doctor’s office or stand in line at the grocery store and make travel arrangements.” — (Female, 45 to 54 years old) Consumers use mobile to spark travel ideas when on the go Base: 150 US online adults (18+); Source: Forrester’s ConsumerVoices Market Research Online Community, Q3 2014

40. © 2015 Forrester Research, Inc. Reproduction Prohibited40 Purchase PCs are still the devices of choice when booking reservations, but mobile transactions are driven by specific benefits.

41. © 2015 Forrester Research, Inc. Reproduction Prohibited41 2% use a mobile or tablet application Consumers prefer desktop functionality when making reservations “I will use my tablet to do preliminary research, but when it comes to booking, I like to use my laptop. This is because I like to have lots of tabs open to compare, and that is much easier to do on a laptop.” — (Female, 18 to 24 years old) Channel used to make most recent travel purchase: Base: 379 US online adults (18+) who purchased a travel product in the past three months, 150 US online adults (18+); Source: Forrester’s North American Consumer Technographics ® Customer Life Cycle Survey 1, 2015; Forrester’s ConsumerVoices Market Research Online Community, Q3 2014

42. © 2015 Forrester Research, Inc. Reproduction Prohibited42 Consumers who book travel on mobile devices are driven by unique benefits: Booking on mobile is most convenient for frequent travelers Access to exclusive deals Travel rewards redemption Speed of transaction Enhanced convenience Location flexibility Base: 150 US online adults (18+); Source: Forrester’s ConsumerVoices Market Research Online Community, Q3 2014

43. © 2015 Forrester Research, Inc. Reproduction Prohibited43 Post-purchase As travelers jet off to their destinations, mobile becomes central to their travel experiences.

44. © 2015 Forrester Research, Inc. Reproduction Prohibited44 Consumers rely on their devices for logistical and entertainment-related tasks “While I don’t use my mobile for actually booking initial travel plans, it’s an invaluable tool during travel. I load maps and reservation information, usually as camera shots of my desktop reservations before traveling.” — (Female, 45 to 54 years old) “While I’m traveling, my mobile phone helps me with directions, finding restaurants, parking, city maps, ATMs, places of interest, and more. It’s also handy to have as a camera and to post pictures to social media.” — (Female, 45 to 54 years old) “In October, I went to Australia for three weeks. The trip was researched and booked online using my smartphone. Booking.com was excellent at providing details, and I stored my booking details in a My Itinerary section.” — (Female, 25 to 34 years old) Base: 150 US online adults (18+); Source: Forrester’s ConsumerVoices Market Research Online Community, Q3 2014

45. © 2015 Forrester Research, Inc. Reproduction Prohibited45 For travelers, mobile moments abound Source: “Brief: How TripIt Masters Mobile Moments For Frequent Fliers” Forrester report“Brief: How TripIt Masters Mobile Moments For Frequent Fliers

46. © 2015 Forrester Research, Inc. Reproduction Prohibited46 Questions?

47. forrester.com Thank you Nicole Dvorak ndvorak@forrester.com Anjali Lai alai@forrester.com