Saturday, August 23, 2014

Shopping: Where In-Store and Online Collide

Emerging media broadly categorizes new and evolving media, usually driven by advances in technology.  While mobile devices are no longer new, they are a platform that allows for new media to emerge.  Think about some of our most common activities, such as social networking, taking pictures, checking in at our favorite locations, or shopping.  Mobile devices have made these activities easier, more convenient, and has created additional value to them. 
Let’s take a detailed look at shopping.  Mobile devices have impacted the way consumers shop in a variety of ways.  First, mobile proximity payments are starting to take off.  It’s convenient to pay for your coffee and bagel with a swipe of your phone.  No credit card, paper slips, or cash required.  Business Insider Intelligence estimates that mobile proximity payments will increase from $1.8 billion in 2013 to $190 billion in 2018.  This could allow for brands to instantly include coupons or additional communications with your digital receipt.  The phone can easily load gift card points and store order preferences. 
Next, mobile phones have proved to be vital when shopping in-store.  Many retailers have mobile
apps, but the new trend is to include in-store mode, which leverages the phone’s location technology to provide relevant information based on where they are inside a store.  Rather than needing to seek a sales person’s assistance, shoppers can reference an in-store map to determine where they are in the store.  It can also include sale items or offer coupons.  Users with in-store mode are twice as likely to use a retailer’s app and engage with a marketer.

Lastly, mobile devices are used for price comparisons and mobile purchases.  While in a store, consumers use mobile devices to shop other stores with similar products.  Mobile purchases are also on the rise as consumers get more comfortable shopping on mobile devices.  Overall, mobile is just one device, but has a great impact on how consumers think about shopping.  Since our mobile devices are always on us, marketers are leveraging technology in order to create a better brand experience with consumers.   

1 comment:

  1. Great Post, Christine! Thank you for your insight. It is certainly compelling to watch the leading retailers become increasingly competitive in the digital space.

    Walmart, for example, now invites customers to scan their receipt in the Savings Catcher function of their mobile app. They claim that if a local competitor has a lower advertised price, that you will receive an eGift Card for the difference. They have also added "Walmart-to-Go" grocery delivery in select markets.

    Target's Cartwheel mobile app provides customers additional savings on in-store items using digital coupons (including a bar-code scanner). Attempting to compete with Amazon Prime's convenient two-day shipping, Target now offers same-day store pickup on a variety of retail items. Target even wants to provide a competitive option in the digital entertainment space with Target Ticket.

    It will be interesting to continue to watch Amazon, Walmart, and Target develop new strategies, utilizing new, emerging media, to win the business of consumers & compete in the market.

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