Lecture 7

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Toronto Metropolitan University *

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910

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Information Systems

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Oct 30, 2023

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pptx

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Mobile Application

Engaging Customers Outside Of a Store • Send a discount coupon to its members who are shopping near its store. • Send a discount coupon to its members who are pulling into a competitor’s parking lot or walking into a competitor’s store.

The Infrastructure WiFi & GPS Location Analytics Beacons Facial Recognition Eyeball Tracking Infrared Motion Sensors

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https://www.youtube.com/watch? v=mhSp04jbN1A&t=50s

The Mobile Makeover • Coined by Stephan Schambach, who is an e-commerce pioneer, the term “mobile makeover” captures the sentiment that successful retail stores need to be refit with a digitally enabled and data-driven purpose (Blair, 2017). • Mobile is now the centre of our daily lives. • There are good reasons for retailers to focus on mobile as part of their desire to connect to customers digitally throughout their shopping journey.

Mobile • mobile is an essential shopping companion for consumers when they shop in physical stores: • 58% of shoppers use their mobile devices to research product information, 53% use them to check pricing, whereas 40% use them to access promotional offers. • Retailers can take customers’ in-store shopping experience to the next level through gamification on mobile, by inviting customers to download apps and play augmented reality (AR) games together with their friends in the store, making a shopping trip an entertaining one for consumers.

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Example • To reduce such frictions, restaurant owners can make use of their mobile app to give customers an electronic ticket to start queuing prior to their arrival. • They can also make use of mobile apps to display the food and drink menu directly on customers’ mobile devices, allowing for speedy ordering by scanning QR codes on the table. • With the proliferation of e-wallets (e.g., WeChat Pay), it is now possible to integrate payment function directly onto the mobile app, so customers can pay their restaurant bill directly at their tables whenever they want.

Mobile Usage • Order tracking : Retailers can build a mobile-optimized website or app allowing customers to track their sales orders. • Customer ratings and reviews : Retailers can consider displaying relevant customer testimonials on their mobile app or third-party apps. • User-generated content (UGC) : Retailers can give incentives to those customers who produce and share their user-generated content online (e.g., videos). • Promotional offers : Retailers can push the right kind of offers to their customers at the right time and the right place via mobile. • Click-and-collect : Retailers can consider how mobile could be used efficiently in the emerging retailing model, such as ordering online and picking up in-store.

Mobile – Near Me • Modern smartphones are equipped with a built-in GPS receiver to enable location tracking, allowing mobile users to perform a “near me” search to get retailer recommendations and local directions.

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Mobile – Near Me • Retailer’s store information can be made available to consumers when they perform a search on major search engines such as Google. • According to Mason and Knights (2019, p. 106), about 25% of all Google search queries will trigger the display of Google’s Knowledge Panel. • It is an information box that appears on a search result page, showing information such as driving directions, store address, operating hours, website URL, and customer reviews and ratings.v

Live Streaming • Live streaming event may last for an hour or two, and it can be desirable to consumers from different countries as they shop the world from the palm of their hands. • Viewers can ask questions, play games, and interact with the host as they watch the live streaming events on their mobile devices. • For example, viewers can type in requests asking their hosts to try on a new pair of shoes, while the host can ask the viewers questions (to conduct market research) and offer a product discount if they answer. • The host engages with customers in real-time to sell products from their mobile devices. • Such an interactive shopping service adds a layer of transparency to the retailer’s operation, giving consumers the required confidence and desire to shop online with an overseas retailer.

Mobile Applicatio n vs. Mobile- Friendly Website • Having a sound mobile strategy is important as retailers can use mobile to attract people to the stores, engage with them, and boost brand awareness and affinity. • There are two major ways to reach customers on mobile: (i) mobile application and (ii) mobile- friendly website.

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Mobile Application vs. Mobile-Friendly Website • To make their website mobile-friendly, retailers can use a new coding technique called responsive design. • It allows website content and layout to be automatically resized based on the mobile device type. In general, mobile-friendly websites should have the following characteristics: • Fast load time • Simple navigation • Short menus • User-friendly search box and forms • Customized content • Visual appeal • Correct display of location and maps • Ease of browsing and communications • Relevant links to social media

Mobile Application vs. Mobile-Friendly Website • The decision to use a mobile app as opposed to having a mobile site is driven by factors such as the retailer’s business goals, budget, and customer profile. • It has been suggested that a mobile website is useful for generating brand awareness and product/service considerations. • In contrast, a mobile app not only fulfills these tasks but also takes it further in the sales funnel to have a positive impact on sales conversion and loyalty building. • Well-designed mobile apps should demonstrate characteristics such as: • Customization options for the user • Integration with other devices or apps • Offline capabilities (e.g., download a catalogue to view offline) • Consistency • Option for leaving feedback • Gamification