Retailers Find Ways to Win Over Smartphone-Using Showrooming Shoppers

In recent years, brick-and-mortar retailers have grown increasingly weary at the sight of customers showing up at their stores with smartphones in hand. 

Apps now let shoppers make price comparisons on the fly. Scan a barcode, and you can immediately find out where the product on the shelf can be found cheaper. The result: Hordes of shoppers visiting retail locations to "showroom" -- test out a product in the store, then go home and buy it online at a lower price. 

It's a problem that retailers are scrambling to address this holiday season, and a couple of retailers will even take the potentially costly approach of offering to match the prices of online competitors like Amazon. But some experts suggest that a smartphone-equipped shopper should be seen not as a problem, but as an opportunity.

Hey, Big Spender

That's especially true in light of the latest iteration of Deloitte's annual Christmas shopping survey, released last month. The survey found that so-called omnichannel shoppers -- those who shop both in-store and online -- will spend 71% more this holiday season than store-only shoppers, with an average expenditure of $600 on gifts.

Why this should be the case isn't entirely clear -- it may simply be that those with smartphones and tablets are in a higher income class, and thus have more disposable income to throw around at Christmastime. But as smartphone penetration has soared over the last five years, it has become less of a signifier of income. 

Rather, it may simply be that consumers are more likely to make a purchase if they're able to convince themselves that they've researched their full range of options and prices. 

"The folks that use the omni approach as a consumer -- checking prices, using social media, reading reviews – maybe they feel more comfortable spending," says Joe Welter, a partner in Deloitte's retail practice. 

Whatever the cause, there's little doubt that this is a market segment that retailers should be eager to please. And that means tailoring their sales approach in a way that gives these savvy consumers the multichannel convenience to which they're accustomed. 

"The smart (retailers) early on have adopted an omnichannel vision that says you can buy online and pick it up in-store," says Welter. "Or you can see it, feel it and touch it in the store, then go to a sales associate and they'll ship it with gift wrapping." 

The former approach is seen at most retailers with an online presence, allowing consumers to get the convenience of online shopping without having to pay shipping fees. (Walmart, for instance, offers free site-to-store shipping on most items.) And the latter is also on the rise. Take Target, which has fully embraced smartphone-equipped shoppers by putting QR codes on select items; shoppers with Target's app can scan a QR code, buy the product online and ship it anywhere for free. 

Deals, Deals, Deals

Other retailers are wising up to the fact that the smartphone in that shopper's hand is another channel for delivering promotional offers. 

Walmart's mobile app, for instance, embraces omnichannel customers in a number of ways: You can shop Walmart's website through it, or if you prefer to shop at your local store, it will show you the aisle numbers of the items on your list. And it also recognizes the value of letting customers get promotional offers from their smartphones. The app lets you find your weekly ad, and also lets you "clip" coupons of your choice for use in store. 

Unfortunately, it's not a totally convenient process. Rather than letting you simply bring up the coupons on your phone while you shop, the app emails you a link to your clipped coupons. You must then open the email on a computer, install a printer plug-in from Walmart.com, then print them out and bring them to the store. 

But others are offering a more seamless experience. Coupons.com, which carries codes and printable coupons for supermarkets and department stores alike, announced Wednesday that it's integrating with Passbook, one of the new features of Apple's iOS 6. Intended to relieve some pressure on your overstuffed wallet or purse, Passbook lets you store everything from boarding passes to movie tickets to gift cards and coupons on your iPhone or iPad. 

While the Coupons.com app doesn't yet integrate with Passbook (there, as with Walmart's app, you'll still need to email and print at home), the mobile site works well with the new feature. If you have iOS 6 on your iPhone or iPad, visiting the site will show coupons from a variety of retailers that accept coupons on phones; clicking "Send to Passbook" will do just that, and participating retailers -- including Barnes and Noble, Macy's and Old Navy -- will be able to scan the coupon right from your phone. 

That's convenient for consumers who don't want to physically clip coupons, and like the idea of grabbing deals while they're standing in the store. But it's also a boon to retailers. "We're seeing the convergence of e-commerce and the in-store shopping experience, and as long as the opportunity to save online and in-store is equal, consumers are very happy to make that purchase (in the store)," says Coupons.com CEO Steven Boal. "And if they can have a fluid experience, they're more likely to buy."

And more and more shoppers are seeking out ways to get deals on their phones. In survey results released recently, price-comparison site PriceGrabber found that 70% of shoppers intend to download and use coupon apps this holiday season. 

Of course, price is still going to be the bottom line for many consumers, and particularly savvy shoppers with the full range of price-comparison apps might still go home and buy on Amazon or another e-commerce site if they find a lower price even after couponing. 

But as J.C. Penney has learned the hard way, the promotional value of coupons and special offers can't be underestimated. If retailers can seamlessly deliver those offers directly to a customer standing in the store, that customer is a lot more likely to make a purchase on their way out. 

(Source: Matt Brownell, Daily Finance, 10/24/12) 

Top Digital Trends for 2012

A recent report from eMarketer lists trends and projections for digital usage and marketing for the rest of the year. Many of the trends have significant impact on broadcast television and other media, with the top trends revolving around mobile and online video.

The top tends for 2012 compared to the year before in the U.S.:

• Smartphone users will increase from 90 million to 107 million. Market penetration will reach 44% of mobile phone users.
• Adult ereader users will increase from 33 to 46 million. 24% of Internet users will use an ereader.
• Tablet users will grow from 34 to 55 million. Nearly one-out-of-four Internet users will use a tablet.
• Online video viewers will grow from 158 to 169 million with 71% of Internet users viewing online video
• Mobile video viewers will rise from 45 to 55 million. One-out-of-three online video viewers will watch on a mobile device.
• Online video ad spending will reach $3.1 billion, up from $2.2 billion.

According to eMarketer, video is the fastest-growing segment of online advertising, and for good reason. The amount of online and mobile video content is exploding, and most of this content is supported by some type of video spot -- typically an in-stream ad or overlay.

Further, non-video content is often supported by in-page video ads that expand when the user clicks on them. Video ads are considered more engaging and effective than static banners.

Ubiquity of Mobile Platforms Threatens Pay TV Subscriptions

According to Deloitte's sixth edition "State of the Media Democracy" survey, access to content is increasing American media consumption.

Movies are available on a wider array of platforms: home TV via cable, satellite, DVD, pay-per-view, Internet and online via streaming/downloading to a personal computer, gaming console, smartphone or tablet. As recently as 2009, only 28% of Americans reported streaming a movie; today, 42% report streaming.

In 2007, 37% of people said that they had not viewed a movie, available for purchase or rental, during the past six months. In 2011, that percentage of non-consumers dropped to only 19%. And, while only 23% of respondents preferred to be able to download their books, magazines and newspapers to a digital device in 2007, 36% now express interest in this option.

The survey found that 20% of leading Millennials (ages 23 to 28) have read their favorite newspaper in the last six months on a smartphone, up from 9% last year. 11% of leading millennials have also stated that this is their favorite method for reading the newspaper, up from 3% last year.

Phil Asmundson, vice chairman and U.S. media & telecommunications sector leader, Deloitte LLP, notes, "Consumers may be watching fewer cable shows and movies on TV, or reading fewer physical copies of books and newspapers, but they have not stopped consuming the content. They are simply watching or reading on different media or platforms."

As adoption of smartphones grows, Americans are beginning to use them as "all in one" devices for a number of different tasks. In 2011 the survey found increases in Americans using:

• Text messaging (up to 78% in 2011 from 71% in 2009)
• Mobile online search (46% in 2011 compared to 30% in 2009
• GPS for directions (37% in 2011 versus 22% in 2009)
• Online banking, tracked for the first time in 2011 (19%)

"As the costs for these types of devices, apps, and the wireless services that come with them continue to fall, consumers are starting to shift their behavior, taking advantage of connectivity, performance, and portability that rivals and often beats that of a laptop," said Asmundson.

Though using a DVR is the second-most preferred means of watching one's favorite TV show, says the report, Americans have already cut, or are exploring cutting their pay TV connection entirely.

The survey found that 9% of people have already cut the cord and 11% are considering doing so because they can watch almost all of their favorite shows online. An additional 15% of respondents said that they will most likely watch movies, television programs, and videos from online digital sources (via download or streamed over the Internet) in the near future.

But, concludes Asmundson, "In a world where consumers have other ways to access content...the DVR may (still) be an underutilized service...(since) the majority of Americans don't have a DVR in the home...could serve as a value-add for cable and satellite TV companies..."

(Source: The Center For Media Research, 01/19/12)

Gen Y, Boomers on Same Smartphone Page

Boomers...they're just like Millennials, at least when it comes to smartphones.

According to research commissioned by Consumer Cellular (which is the official cell phone plan provider for the AARP), Boomers use their smartphones in much the same way that younger customers do.

One survey conducted by the company found that 90% of current 40-plus smartphone owners taught themselves the features and functions of the device, and nearly 60% cite email as the most-used app on their phones.

The survey also indicated that Boomers wanted to use their phones to access the Internet as much as younger consumers. A full two-thirds of the respondents said they use the phone's WiFi features to connect to the Internet.

According to the survey, 64% of male smartphone owners and 48% of female smartphone owners most frequently visited news Web sites (although men were three times more likely to visit sports Web sites, while women tend to visit social media websites).

Meanwhile, a quarter of them have given up their landlines in favor of cell phones. "These surveys show that Boomers are as interested in the latest phones and technologies as younger generations," said Consumer Cellular CEO John Marick, in a statement.

(Source: Marketing Daily, 12/23/11)

Last-Minute Hotel Reservations on the Rise

Smartphones are empowering a segment of hotel customers often overlooked by the industry: last-minute buyers who aren't traveling.

Hoping to draw impulsive buyers addicted to daily coupon alerts, hotels and online travel agencies are introducing a flurry of new specials and features targeting those who book a room locally on the day of the stay.

They include couples celebrating anniversaries; long-distance commuters working late; people without electricity; travelers whose flights are canceled; and suburban deal seekers who can't resist a 30% discount at a fancy downtown hotel.

Orbitz, which launched its Orbitz-Hotels app for iPad in the summer, says 65% of its mobile bookings are same-day reservations (vs. 14% on desktop). Orbitz also recently launched a redesigned mobile website that includes a new tonight-only deals feature.

Hotel Tonight, an app featuring daily deals from hotels cutting prices by at least 20% for the night, is one of the most popular travel apps, with more than 800,000 downloads.

Priceline launched its Tonight-Only Deals feature in October, selling discounted deals from hotels that disclose their names. (Priceline's name-your-price auction doesn't reveal hotel names.)

About 60% of mobile bookings are for the same day, says John Caine, Priceline's senior vice president of marketing. "There's a certain portion of travelers who don't like planning," he says.

"In Connecticut, more than half the people were without power for days and days" after an October snowstorm, says Priceline CEO Jeff Boyd. "We literally watched the hotel reservations light up on our mobile devices."

The hotel-tonight trend is part of a broader buy-now shift in the economy enabled by mobile technology. But hotels, especially independent properties, are willing to participate in this new sales channel because about 40% of rooms on average go unsold each night.

Hotels also like the feature because they don't have to commit a minimum number of rooms, says Sam Shank, CEO of Hotel Tonight.

"Technology is making it easier to fulfill the need that's been out there," says Andrew Kauffman, vice president of e-marketing at Marriott.

About half of Marriott's mobile bookings are same-day reservations, he says.

Large hotel chains are also concerned about any new technology that might detract from a hotel stay being "an amenity-driven, emotional experience," Kauffman says. "We don't want to make it solely about price. It's undermining all that we do that makes hotels great."

(Source: USA Today, 12/08/11)

Pew Internet Study: ’13% of cell owners pretended to be using their phone’

A new study reveals interesting statistics about the average cell phone

As the world continues adjusting to new technologies and social norms change at a rate on par with Moore’s Law, sociologists and pollsters have had a plethora of interesting data to examine. A new study from Pew Internet has shed some startling, if not somewhat humorous light on how Americans adults are using their cell phones. (Only 17 percent are without the device today.)

The survey of 2,277 adults found that 13 percent of cell phone users had faked checking their phone or being on it to avoid human interaction. The younger demographic, 18 to 29-year olds, cited the highest percentage of this behavior with 30 percent saying they’d avoided contact with someone by checking their phone.

Also of note, 42 percent of this demographic cited having trouble doing a task or work because their phone wasn’t nearby.

Across all demographics, “Half of all adult cell owners (51%) had used their phone at least once to get information they needed right away,” the study reported.

“One quarter (27%) said that they experienced a situation in the previous month in which they had trouble doing something because they did not have their phone at hand.” These results seem slightly more predictable, but do reveal a growing population that can’t be without its phone.

Roughly 35 percent of adults now own a smartphone.

Only 29 percent of adults say they’ve turned their cell phone off to get a break from use. Never hurts to tune out every now and then—even if you’re in the minority.