Through a special arrangement, presented here for discussion is a summary of a current article from the Retail TouchPoints website.
In the past 20 years, few technology-driven changes have been more pervasive than the mobile phone, and today marketers are scrambling to find ways to utilize these devices. The focus so far has been on mobile coupons, with some success. As newspaper circulation declines, and freestanding insert distribution becomes ever more challenging, mobile phones are an obvious and effective way to drive purchases. Not surprisingly, younger shoppers are more likely to seek out savings via the web or mobile, and these are the folks with growing families and a need for greater value.
The downside of mobile coupons is the back-end cost of redemption, which makes a successful promotion increasingly expensive. Coupons are also the most basic of triggers for shopper engagement, with little long-term loyalty benefit.
The logical question then is: What's next? How do we make the most of this pocket-sized kiosk and provide loyalty-building communications to shoppers?
One idea is a new service called Aisle 411. Testing now in Springfield, Missouri, Aisle 411 allows shoppers in store to use mobile phones to get directions to any item on their list. While this is a great start, it really doesn't make full use of the power of a smart phone. Why not an application that:
- Keeps your shopping list;
- Remembers your purchase history that can be accessed as needed;
- Adds GPS functionality so the phone knows which store you're heading to and re-orders a shopping list accordingly as to that store's layout;
- Incorporates shopper-specific offers based on shopping behavior--and therefore extremely relevant offers that can influence the shopper while she is in the store.
A number of consumer packaged goods brands have introduced iPhone apps that give consumers direct access to the brand and include recipe ideas, nutrition info and special offers. But the reality is, shoppers are not going to download all the brand applications that come down the pike. More realistic is an application offered by a retailer, store-branded and shopper-focused, that enhances the entire shopping experience, starting from home and the creation of the shopping list.
The greater challenge in using technology as a practical tool is ensuring the accuracy of the data and the ongoing relevance of the offering. Novelty will drive trial for many, but continuing value is the only way to keep people using the service or application.
Discussion Questions: Which apps or other tools make the most sense for retailers to incorporate with mobile phones? Which mobile technologies will likely impact the shopping experience over the next year and which are likely a few years away?