Customer APP-reciation

February 15, 2010  |  by Kent Stones

I have been amazed at the speed and breadth of the change underway in mobile devices. Truth be told, as a marketer I’m quite worried about this rapid change because of its potential influence on shoppers, particularly specialty store shoppers. Think about it: the iconic value propositions of specialty retail – category variety, selection and expertise – are being rendered less meaningful by an onslaught of mobile applications that focus on price comparison and availability. Think I’m being overly dramatic? In the last year-and-a-half, we’ve seen a tidal wave of “apps.” When searching for apps related to shopping, you’ll find 971 in iTunes, 392 in the Android marketplace and 14 for the Palm Pre. They typically break down into four archetypes:

• Lists or Planning

• Comparisons

• Product Offers

• Shopping Assistance

The first three categories have numerous apps, many of which are done quite well. The fourth category is the one that is really keeping me up at night, because it’s basically bringing it all together. Currently, I can improve individual elements of my shopping but can’t integrate them. I have to use individual applications and re-enter information with each one I start up. This is about to change. As of just recently, the technology has emerged that “glues” many of these apps together behind the scenes, allowing the user to have one all-encompassing process to find, learn and then buy: in other words, a complete path to purchase.??

I don’t think I had grasped the magnitude of these changes until I read a blog by Robert Scoble, famed technology blogger, about a new app called “Siri” . Open the Siri app, ask a question (verbal or typed), and Siri interprets the question, offers answers and, when possible, provides a direct path to purchase.

What caught my attention was the context Scoble set for why Siri might be successful. He described several Web eras, but it was his description of this new era that really got me thinking:

“Web 2010 is the ‘get rid of pages and glue APIs and people together’ era.”

To me, what he is saying is “making a bunch of unconnected things work together behind the scenes to help people connect with other people or things.” What Siri demonstrates is that disparate technologies can be integrated to work together and improve our lives - the original dream of the dot-com era. These new technologies are more oriented around how we do things rather than expecting us to fit into how computers do things. And when our interactions are more natural, it’s a more positive experience, which cognitive science teaches us is more likely to translate into a habit. What we’re experiencing today is a sea change where the hardware device essentially disappears and the user interacts directly with the information based on what they are trying to do. Still skeptical?

• Gartner estimates that by 2013 one out of every three phones sold will be a smartphone.

• They also estimate that $6.2BB of apps will be sold in 2010, estimated to be $29.5BB in 2013.

• Smartphone users are three times more likely to view media on their phones, six times more likely to check their email and five times more likely to access social networks.1

• Augmented reality has accelerated dramatically since the introduction of smartphones.2

As more and more shopping applications are launched, and as more of them become connected by software such as Siri, there are few if any shopping experiences that won’t be touched. Specialty retailers should look for every opportunity to extend the channel’s historical value proposition into this digital, interconnected world. Here are some thoughts:

• If you don’t have a smartphone, buy one now. Download apps and see how your customers are using apps in their shopping. Don’t just play with it…use it. Buy things with it.

• Map out the path your customers are taking to buy from you – from the moment they think about needing something through checking out at the register. What are important points in the process where they’ll be influenced by this technology? How can you be part of those moments?

• Think about how you can assist your most loyal customers. Knowing these devices are always with them and are location aware, how can you make the path to purchase at your store so easy and special they never want to stray?

Leveraging this mobile technology will allow your customers to experience shopping in a way that is unmatched by general merchandisers – an experience that will make them insist on shopping with you.

1. ComScore and Complete.com research study, November 2009
2. ABI Research Study, Augmented Reality Adding Information to Our View of the World