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Mobile Revolution
March 31,
2013 by in UnCategorized 
By Home Furnishings Business in on April 2013
Got a smartphone? Next time you have a few minutes, run a search on the App Store for shopping apps.
Youll find a lot of companies already on the mobile technology bandwagon. Best Buy, Walmart, Toys r Us, Overstock, Amazon, Zappos, Office Depot, Staplesthe list could fill a lot of this page.
In home furnishings youll see names such as One Kings Lane, Ballard Designs and Ikeano big surprise thereon the App Store, but for the most part furniture retailers are playing catch up with other consumer products sectors when it comes to granting their customers access to their products and services via mobile phones and tablets.
Sales of those units are growing every year, and theres a generation of consumers entering their buying years that has never known a world without digital mobile technology.
Just when we were getting used to shoppers heading first to the Internet, it appears that not too far into the future, theyll be heading for their smart phone or tablet insteada lot of them already are. When that time comes, will they find you?
OPPORTUNITY & CHALLENGE
Mobile technology presents both opportunities and challenges to retailers, said Myriad Software Principal Carolyn Crowley. The San Diego-based home furnishings retail automation specialist made mobile the centerpiece of a couple of sessions at its user conference last month in San Antonio.
With so many consumers using their smartphones during the shopping, and sometimes purchasing, process, Web sites optimized for mobile users and in-store mobile-friendly features for product information and such can be a competitive advantage.
Crowley pointed out that Lowes is deploying iPhone-based mobile POS to compete with Home Depot. Furniture retailing, she pointed out, has some catching up to do.
When you go to places like Best Buy, the capability of what you can see and do online is better in other industries, she said in a phone interview after the conference.
One reason is that furniture retailers looking to put information onto customers phones face challenges unlike, say, an airline selling tickets or taking reservations via mobile.
That airline controls what its selling, its own tickets, Crowley said. The challenge a furniture retailer has is that youre working with products that arent yours, youre getting them from a lot of different vendors.
Take QR codes that could be on product in your store.
Does that QR code lead the consumer to the retailers Web site or the manufacturers Web site? Crowley said. Manufacturers need to make the information available on the retailers Web site. Thats an initiative that needs to happen.
From a technology providers standpoint, the more connections we can give the retailer to the manufacturers information, the more the consumer will come into the store.
She added that from her clients feedback, she believes manufacturers are more comfortable driving traffic to their Web sites versus the retailers sites.
The customers often already doing the shopping on line and knows what they want, but not all retailers carry the all the product they see on the manufacturers Web site, Crowley said. Wouldnt it be great if the retailer could tell the customers (who visited the manufacturers site) we dont have that particular product in the store, but we can tell you everything you need to know.
Its a challenge that some of the retailers cant show (a manufacturers) product on their own Web sites because the customers are driven to the manufacturers Web site.
At a Best Buy, a shopper can know for sure via her smartphone if the product is at the local store, and maybe go ahead and pull the trigger on a purchase.
While with furniture, especially something like upholstery or bedding, the customer is more likely to want to come into the store for a touch-and-feel test, having a shopping list on the customers phone when she walks in the door is just one example of how mobile can make the furniture buying process easier.
Wouldnt it be great if you could walk them around your store with their mobile deviceyou dont even have to ask them what brought them into the store, Crowley said. Technology service providers like us should work with our clients manufacturers to get as much of that information available at their fingertips as possible. Ultimately, were trying to sell that manufacturers product line, and the more a Myriad or other service provider can provide to the retailer, to arm them for the consumer walking into that store, the better off were all going to be.
GETTING MOBILE-FRIENDLY
Myriad brought an expert in mobile applications to its conference to give retailers advice on how to make the most of mobile. Scott Gamble, vice president of digital solutions at Alliance Data Retail Services, is accountable for all the Columbus, Ohio-based companys consumer-facing digital initiatives in the areas of the Internet, mobile, e-commerce, social media and e-mail. He and his team are responsible for the development and execution of the Alliance Data mobile strategy, which has led to multiple industry-first products in the areas of mobile marketing, payments and service.
In addition to his 15 years with Alliance Data, Gamble has more than 20 years of experience in the retail payments industry, including management roles at GE Capital and SPS Payment Systems.
Things like virtual loyalty cards, optimizing credit programs for mobile users and geo-fences that alert customers to deals when theyre in a stores vicinity are ways mobile can help retailers get consumers attention and build sales.
A NEW CONTEXT
Location-based marketing using geo-fences, for example, targets customers in a defined area around a store. Its important to note that those customers have to opt in to receiving information from your store.
That location awareness ties the context of knowing that its a brand Im aware of that Ive opted to receive information from and that the brands nearbyit ties all that together, Gamble said. The cellular networks will sell you that (locational) data for customers whove opted into receiving information from you.
You can build a fence; and be notified that one of your customers is in that fenceyou can then send them a text.
Consortia of non-competing retailers in the same area, for example around a mall, have made locational marketing using geo-fences much less expensive.
A key is getting those customers to opt-in, and mobile-optimized loyalty programs are one way to inspiring that commitment. Its also convenient for customers to have that loyalty program on their phone.
I dont know anyone who has space in their wallet for another (loyalty) card or room on their key chain for another one of those tags, Gamble noted.
Alliance Data research indicates that 18 percent of consumers agree that a mobile loyalty program gets more valuable as they have begun to expect offers to arrive; and that 31 percent of consumers agree that the program gets more valuable as it gets more relevant to their interests.
Allow consumers to express preferences and filter those messages to correspond to that data, Gamble said. This context drives them to action, adding that ADS found 52 percent of those on the program will visit the stores Web site, and 50 percent will visit the store soon.
Someone isnt going to sign up for text promotions from 50 different brands. Weve found theyre open to six or seven, Gamble said.
MAKE THE RIGHT MOBILE
IMPRESSION
ADS research found that 61 percent of people have a better opinion of brands when they offer a good mobile experience.
Be careful hereif that experience is unsatisfactory, the reverse is true. Say you have a QR code shoppers can scan. Gamble related an anecdote of a retailer whose code generated a message telling shoppers they needed to view the target site on a computer.
If you dont connect the dots all the way to the end, it creates bad vibes from the consumer, he said. There are plenty of options for you to make your Web solutions mobile-friendly without spending a lot of money. Dont do anything just to go mobile without tracking everything all the way through.
Retailers can go out and buy an e-mail list, but they cant buy a list of phone numbers for a texting campaign. Engage customers in the store and on your Web site to create that buy-in to what you have to offer.
Create a database of mobile short-message service (thats text in common parlance) users, and engage them responsibly with relevant content, Gamble said. Seventy-nine percent of active shoppers would opt in to store alerts for special offers and discounts; and 75 percent are interested in receiving location-based offers when near the store, according to ADS research.
Above all, make sure the experience is mobile-friendly from end-to-end. Provide product information and add links for consumers to share via social networking sites. HFB