2018 Retail Mobility - Oracle
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2018 Retail Mobility
Insights
Introduction Perhaps no other industry has been impacted more by the rise
of e-commerce, digitization, and the disruptive power of mobile
than retail. Numerous studies have focused on the shift in
balance of power between retailers and consumers, and what it
means; but few have delved into how this change is perceived by
retail professionals leading, and reacting to, mobile innovations.
This report focuses on how strongly retailer professionals feel
about their organization’s initiatives, and what it means for their
customers, and their businesses.
Mobile Retail Insights Report Methodology
The Mobile Retail Insights report was executed in 2018 and
captures the confidence and anxieties affecting retailers around
the globe. Businesses of all sizes are represented, as is a cross-
section of people who lead and work for those businesses - 54% of
respondents are from companies with greater than $500M in sales,
and 67% are Director level and above. Survey data was reinforced
with qualitative interviews from industry leaders and practitioners.
Europe
14%
North America JAPAC
“Mobile growth continues to accelerate.
35% 2%
As more consumers become comfortable
purchasing with a mobile device, retailers LAD
must continue developing digital 6%
experiences to match their expectations
Global
across all devices.”
40%
DEBBIE HAUSS, Editor-in-Chief, Retail Touchpoints Region of responsibility identified by survey respondents.
2018 Mobile Retail Insights Report
Executive summary The Mobile Retail Insights report illustrates an industry that has cautious optimism for mobile innovations, and how those innovations empower the consumer, and the organization. The optimism is tempered by anxiety about how to properly apply new technologies, and a sneaking suspicion that other companies are better equipped to thrive in this ultra-competitive environment. The Mobile Retail Insights analysis of retailer perceptions highlights pivotal moments for companies on the journey to differentiate offerings through customer experience, staff empowerment, and organizational capabilities. Key findings: Personalizing mobile shopping remains elusive. Across all respondents, there was broad agreement that customers expect retailers to anticipate their needs by analyzing loyalty, purchase history and brand interactions, but very few believe they are effectively personalizing the mobile shopping experiences. Retailers with the highest confidence worry about inventory. Respondents who scored higher than the median on proficiency and preparedness statements had the strongest opinions about inventory, believing they are losing transaction due to associate inability to access inventory availability data from the sales floor. They also lamented the inability of their customers to check inventory from their mobile device while in-store. Retailers with the most anxiety worry about promotions. Respondents who scored lower than the median on both axes of current proficiency and preparedness for the future are convinced they are leaving money on the table by offering general discounts to all shoppers, and single out their inability to use personalized and near-field communications to offer promotions. Many retailers are missing out on mobile empowerment. The majority of retailers focus on improving the mobile shopping experience. Fewer pay attention to mobile workforce enablement. This represents a lost opportunity to capitalize on tangible benefits (like assisted selling capabilities that include mobile checkout and inventory lookups), and intangible benefits (like the recruiting and retention benefits of a mobile-enabled workforce).
To see the industry from another perspective,
we plotted responses across two key
continuums—current proficiency and
preparedness for the future—and mapped
them into 4 quadrants to understand
correlations between the two. Most
respondents fell into either the Visionary
or Anxious quadrants. Visionaries see
themselves as highly proficient in the present
and well-prepared for the future. This group
was most concerned about inventory visibility,
believing they are losing transaction due
to associate inability to access inventory
availability from the sales floor.
On the other end of the spectrum are
6.4
the Anxious, who score lower on both Comfortable Visionary
preparedness and proficiency. This group
tended to be convinced they are leaving
AVERAGE PROFICIENCY
money on the table by offering general
discounts to all shoppers.
Less common are the respondents who scored 3.2
as Comfortable—those with low preparedness
yet report high current proficiency. Also less
frequent are those we call Optimistic, reporting
high preparedness but low proficiency
Anxious Optimistic
0.0
0.0 3.1 6.2
AVERAGE PREPAREDNESS 2018 Mobile Retail Insights Report
FIGURE 1 Mobile strategy priorities: Unified,
Our mobile strategy is increasing shopping basket size in store targeted, frictionless
and online by catching consumers at the point of intent.
Strongly Agree 9.7%
Agree 37.2%
Retailers recognize that the days of channel-specific strategies are
Neutral 29.5% over. Achieving a unified, omnichannel brand shopping experience
across stores, web and mobile is one way to differentiate from your
Disagree 15.1%
competitors.
Strongly Disagree 8.5%
Nearly 47% of respondents agree that their
47% mobile strategy is increasing shopping
basket size in-store and online by catching
consumers at the point of intent (Figure 1).
This illustrates that retailers are keen on breaking down channel-
specific barriers and simultaneously how challenging it has become
to capture shopper’s attention.
More than 77% of respondents agree,
FIGURE 2
Customers expect us to anticipate their needs by analyzing their
loyalty, purchase history and brand interaction data.
77% ‘Customers expect us to anticipate their
needs by analyzing their loyalty, purchase
history and brand interaction data’ (Figure 2).
Retailers are investing in innovations to help them recognize
Strongly Agree 24.0% purchase intent better and optimize the buying experience around
it. However, retailers continue to tread cautiously, knowing
Agree 53.5% consumer concerns about data privacy are on the rise. That caution
Neutral 14.0% is reinforced by findings from the 2017 Retail in 4 dimensions study
Disagree 4.7%
Strongly Disagree 3.9%
2018 Mobile Retail Insights Report
of consumer buying habits, “Shoppers are open to personalization
based on relevant brand interactions like the presentation of in-store
offers based on purchase history but are much less enthusiastic
about retailers utilizing third-party data sources.” (Amber Trendell,
Global Director, Oracle Retail). Bottom line: establishing trust is
essential to driving authentic brand loyalty -- veering too far beyond
first-party data will alienate some of your customers.
Getting personalization right could yield significant financial benefits
to retailers. Consider discounting practices, survey respondents
acknowledge that general discounting mechanisms are not nearly as
effective as discounts tailored to targeted consumers, with
62%
62% agreeing that they are “leaving money
on the table” by offering general discounts to
all shoppers (Figure 3).
FIGURE 3
We may be leaving money on the table by offering
general discounts to all shoppers vs. tailored offerings to
target consumers.
Agree 62%
Disagree
13.2%
Retailers are also working hard to remove friction from the buying
experience, investing in mobile payments and self-service capabilities.
54%
Over 54% of respondents indicated that
payment options like contactless checkout,
self-checkout and mobile payment are
either in use today or part of their
technology roadmap,
though there are variations by industry (Figure 4). Respondents from
the Grocery segment lead the way, with over 55% agreeing, while
Hardlines appears to be further behind, with over 31% indicating that
advanced payment options are not current or planned initiatives.
these numbers will increase over time, but not equally. This is not
surprising as self-checkout has been in play for decades, particualrly
FIGURE 4
Our current offering or technology roadmap includes
advanced payment options (e.g. automatic contactless
“As consumers shift to mobile, online retailers
checkout, self-checkout, mobile payment and
must refine their checkout experience. There is easy guest checkout).
Fashion
a huge opportunity for retailers to optimize their
42.1% Groceries
checkouts by supporting one-click payments, 39.3%
Hardlines
stored cards, user profiles and much more. If they 29.5%
27.0%
28.9%
25.0%
don’t act, they risk losing out to competitors.
15.8% 15.9% 15.9%
Mobile is only going to become more important 13.5% 13.2% 13.6% 12.4%
7.9%
as consumers become increasingly comfortable
0.0%
using new mobile payment methods.” Strongly Agree Neutral Disagree Strongly
Agree Disagree
ROELANT PRINS, Chief Commercial Officer, Adyen
From front-end to back office: Mobile impacts
productivity and satisfaction
Mobile empowerment extends to employees over 30% disagreed altogether (Figure 5). This
as well, though survey respondents place represents a miss for some retailers. Mobile
less emphasis here than on the consumer’s empowerment has real efficiency-boosting
shopping experience. Fewer than half of applications, and there is also evidence that
respondents agreed with the statement ‘We enabling staff with mobile capabilities that offer
empower employees with mobile capabilities, flexibility in how and where they perform their
so they can perform their jobs regardless of job responsibilities is important to attract and
where they are (for example, matching a PO retain talent, especially among millennial and
to an invoice from your mobile device),’ and Gen X workers.
“Store associates can make or
break the customer experience and
we’re seeing a heightened level
FIGURE 5
of attention being paid to talent
We empower employees with mobile capabilities so they can perform their jobs regardless
acquisition and retention. Equipping of where they are (for example, matching a PO to an invoice from your mobile device).
associates with the right tools,
ones that are mobile, intuitive,
and deliver accurate information,
Agree 44.6%
impacts job satisfaction and success. Disagree
31.4%
If associates don’t feel set up for
success, they will go elsewhere.”
CHRIS SARNE, Senior Director,
Omnichannel Strategy, Oracle Retail
Scaling your omnichannel operation requires
enterprise discipline
We also explored confidence in organizational (Figure 7) reveals that the largest retailers are
capabilities, to determine if business operations far more confident than their smaller peers,
were robust enough to support a changing retail with 67% agreeing with the statement, versus
environment. just 46% across the full sample.
Fewer than half of respondents believe they Neglecting the merchandising, planning and
are well-positioned logistically to support supply chain aspects of omnichannel retail puts
an omnichannel shopping experience retailers in a risky position as they are unable to
(Figure 6). This is not surprising, as retailers profitably execute. Savvy retailers are making
have historically prioritized the front-end the shift to move these critical business
requirements of the omnichannel shopping systems to cloud applications so that they can
experience and cobbled together the backend stay current and drive both top and bottom
“Retailers must align
requirements. Analyzing by revenue band line results.
organizational responsibilities
around the omnichannel
FIGURE 6 FIGURE 7
customer journey, which often
We are well-positioned logistically to support
an omnichannel shopping experience, with involves consolidating online
15%
distribution centers to fulfill orders placed and offline groups into one.
47% 20% 22%
online or through mobile, for delivery to any 26% 48% Larger retail chains may go
preferred destination (e.g. home, store, work).
67% a step further and subdivide
Strongly
Agree 10.5% 44% 38%
52% 52% revenue ownership by market,
30%
Agree 35.7% brand, or merchandise
Neutral
24.8%
FIGURE 8 Netting it out: cautious optimisim, or
Our company embraces digital and mobile but we are not nagging insecurity?
investing quickly enough to keep pace with speed of technology
change or consumer expectations.
6.2% 16.3%
Strongly Disagree Strongly Agree The 2018 Mobile Retail Insights report paints a picture of cautious
optimism with average scores showing more agreement on the
10.5% survey statements than disagreement. That confidence, though,
Disagree
is inwardly focused. When asked to opine on their organization’s
initiatives relative to the pace of change in the marketplace, and
against unnamed competitors, more anxiety shows.
23.6%
Neutral
Nearly 60% of respondents felt that their
43.3%
Agree
60% company is embracing digital and mobile,
but is not investing quickly enough to keep
pace with the speed of technology change or
consumer expectations.
A mere 16.7% feel they are leading the market with digital and mobile
initiatives (Figure 8). A similar story emerges when respondents were
asked if they will face disruption from “more innovative, nimble,
customer-centric” competition – nearly 60% agreed.
The anxiety is justified given the consumer expectations and the
volume of possible investments a retailer could make in mobile
and digital capabilities. Developing the right strategy, though, is
less a question of technology, and more about making a decision
on which customers you want and designing experiences and
developing capabilities for that segment.
2018 Mobile Retail Insights ReportAs the Retail in 4D report revealed, the
path forward is more nuanced than finding
better ways to appeal to millennials or other
age-based segments. The most innovative
retailers focus on the personality and buying
mindset of their targeted buyer – be she a
‘nomad’, a ‘player’ or a ‘dealer’ – and organize
their strategies, business processes, and
technology investments to support a single
view of that customer.
“For mobile, the number one
priority is speed. Consumers
expect you to render the mobile
experience within two to three FIGURE 9
seconds. The value proposition Our company will likely face disruption from more innovative, nimble, customer-centric
organizations or service providers.
needs to be front and center
to capture the customer at the
Agree 59.7%
point of intent.”
Disagree
17.4%
DANIEL MOURE, Chief Marketing Officer,
PureFormulasTaking action
In an environment where customers are more
knowledgeable and competitive barriers
are lower than ever, smart companies are
differentiating themselves through the
experiences they provide. In retail, that means a
personalized, omnichannel shopping experience
and associates who are better equipped to
support their customers. These companies
are investing in mobile and digital initiatives
with applications across front and back-office
processes.
To thrive in a mobile-first future where customer
expectations soar ever-higher, smart companies
will balance their investments in customer-
facing mobile technologies and experiential
improvements with continued investment in the
organizational capabilities needed to provide a
unified multichannel shopping experience.
“The more retailers can fulfill on their brand promise, whether Take the Retail Mobility
that be by delivering the right product at the right time to the right Assessment and see how
place, the stronger the bond of trust will be between retailer and you compare to your peers!
consumer. Retailers need to adopt consumer technology and new
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innovations in the context of their brand promise.”
MIKE WEBSTER, Senior Vice President and General Manager, Oracle RetailYou can also read
