Mobile for Retail : Going Mobile

More retailers are embracing mobile commerce and marketing. Here’s why you should take the plunge

Will 2010 finally be the year of mobile commerce? While mobile has been the "next big thing" for at least the last five years, 2010 may actually be a banner year for the platform. Smartphone and iPhone usage has soared, and even older adults use phones to check the stock market, find the best deals at the grocery store and price insurance policies.

Smart retailers are taking notice and creating mobile applications and websites to meet the needs of increasingly savvy consumers. J.C. Penney, Domino's and Starbucks, for example, are in the thick of it, testing programs such as mobile coupons, messaging, purchasing and payment.

Mobile Coupons
A recent Deloitte survey found that 57 percent of consumers are interested in receiving coupons on their phones. What's more, redemption rates are 10 percent to 20 percent and higher. That's a far cry from traditional paper coupons, which average less than 1 percent.

J.C. Penney is one retailer interested in mobile coupons. Last fall, in an effort to retain existing customers, build brand awareness and acquire new customers, the cross-channel retailer began testing a service whereby consumers could download and carry coupons on their mobile phones to be scanned directly from the phones' screens at registers. Scanners able to read these 2-D barcode coupons were deployed at point-of-sale registers in 16 J.C. Penney stores in the Houston metro area.

Domino's and Caribou Coffee also added mobile coupons to their marketing mix last year, and direct mailer Valpak is bringing its brand of local offers to the iPhone.

Location-aware coupons, which allow retailers to deliver targeted mobile coupons or advertising based on customers' current locations, are starting to take off for retailers as well, but they're in the early stages. Diners, for example, can sign up at restaurant directory Restaurant Zoom to receive exclusive coupons and offers keyed to their geographic locations.

Better Customer Experiences
Many retailers are using mobile applications to improve the brand experience. Some, for example, are creating mobile sites that allow customers to access shipping information; look up addresses, store hours and product descriptions; and consult product reviews, all via their phones, potentially right in a brick-and-mortar store.

One interesting mobile application designed to make shopping easier for consumers comes from designer Norma Kamali. Shoppers can stand outside her boutique in New York City, point their phones at merchandise displayed in the window and buy it — even when the store's closed.

Other retailers have begun testing a product from IBM called Presence, which allows shoppers to sign up to be detected as soon as they enter a store. Presence can offer those shoppers real-time mobile coupons or recommend products.

If a shopper buys a store's private label baby wipes, for example, Presence might suggest buying the store's private-label diapers and baby lotion, too.

Retailers are turning mobile phones into information displays and ordering devices for their brands. While they're at it, they're also strengthening the link between their physical stores and the web, which makes good business sense. Multichannel shoppers, after all, are the most loyal.

Payment Options
Mobile payment options are yet another area where technology is gaining ground quickly in the U.S. Amazon, for instance, released Amazon Mobile Payments Service last year. The service lets its merchant partners process transactions via mobile phones, and allows consumers to check out using the company's "1-Click" service.

Starbucks introduced the Starbucks Card Mobile App, which allows consumers who shop in stores in two markets — eight in Seattle and eight in Silicon Valley — to pay for Starbucks purchases through the iPhone or iPod Touch app. Earlier this year, the coffee retailer expanded this program to more than 1,000 Starbucks locations in Target stores nationwide.

After consumers fund their accounts, the Starbucks app displays a mobile barcode that can be used similarly to a Starbucks Card to make purchases. In addition to mobile payments, the app allows customers to set up and register Starbucks Cards, check balances and reload the card with a credit card.

Mobile commerce, marketing and applications are important tools for multichannel retailers to communicate with consumers shopping a variety of channels. If these examples are any indication, 2010 should be a banner year for mobile.

Det Ansinn is chief technology officer of Mobile Tag, a Wayne, Pa.-based provider of mobile marketing solutions (detansinn@ gmail.com).

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