strategy+business

ONLINE JUNE 10, 2013

Mobile Now
With the latest mobile technology, the ability to deliver seamless,
omnichannel consumer experiences is finally within reach.

BY MATTHEW EGOL, FABIAN SEELBACH,

AND NASEEM SAYANI

www.strategy-business.com

Mobile Now
With the latest mobile technology, the ability to deliver seamless, omnichannel
consumer experiences is finally within reach.

by Matthew Egol, Fabian Seelbach, and Naseem Sayani

magine this: On a commuter train to Manhattan, a

young woman named Suzy searches for vacations
on her smartphone and saves several locations in a
travel app. Her husband Jason gets a notification on his
phone that Suzy has created a new destinations list. He
selects London, browses upcoming events there, and
highlights a few. That afternoon, Suzy opens her tablet,
peruses links to London hotels, which have been recommended by the travel app based on her browsing history and personal profile, and favorites the ones she
likes.
When Suzy and Jason sit down to watch TV that
evening, a personalized travel ad featuring a video about
London appears. Following the video, Suzy launches the
TVs Web browser so the couple can review additional
information on the hotels and events they each identified earlier, along with packages and pricing. Jason modifies the choices on his tablet, which automatically
update on the TV. They pick the options that they like
best and book the trip using the TVs remote.
On the flight to London, Suzy skims a list of restaurants compiled on the basis of current offers and fivestar ratings by travelers with similar profiles, and makes
a dinner reservation for the next night.
Throughout their vacation, Suzy and Jason receive
daily itineraries, confirmations, curated guides and
offers, and tailored maps on their mobile devices. They

use their devices to access reviews and recommendations, ask questions and get real-time answers, and post
pictures and videos to share with their friends and family. They pay for their purchases with their smartphones
mobile wallets, and their purchases are automatically
recorded in loyalty programs.
You may recognize elements of this functionality.
Perhaps you have benefited from some yourself. Indeed,
most of the technology needed to deliver Suzy and
Jasons vacation experience already existsbut it is
being deployed in piecemeal ways. Companies that seize
the lead in weaving together available mobile functionality to create truly personalized consumer experiences
will gain a distinct advantage in the near termand set
themselves up as the strongest competitors in the
mobile-driven future.
Mobile Is the Glue

Increasingly, mobile is serving as the adhesive that holds

a consumer experience together. It can link together all
other marketing touch points, including TV, outdoor,
print, online, word-of-mouth, and in-store channels.
And because consumers carry their devices everywhere
they go, it bridges the digital and physical realms.
Mobile is changing the game for the entire consumer
marketing ecosystemacross brand manufacturers,
retailers, credit card companies, mobile carriers, media

Fabian Seelbach
[email protected]
is a principal in Booz &
Companys communications,
media, and technology practice, and of Booz Digital. He is
based in San Francisco.

Naseem Sayani
[email protected]
is a principal in Booz &
Companys communications,
media, and technology practice, and of Booz Digital. Based
in Los Angeles, she helps
media, marketing services, and
consumer products companies
create growth strategies
founded on market-facing
digital capabilitiesd.

www.strategy-business.com

Matthew Egol
[email protected]
is a partner with Booz &
Company and a senior director
of Booz Digital. Based in New
York, he leads the firms work
in shopper marketing, and
specializes in strategy and
capability development for consumer brand marketers, marketing services firms, and
media companies.

companies, and marketing services providers.

Companies that grasp the transformative capabilities of
mobile and follow the four principles below will find
that true omnichannel marketing is within their reach.
First, realize that mobile is personal. Mobile devices
are a direct connection to the information consumers
access, the brands with which they engage, and the
social tools with which they connect to others. Vast
amounts of data about the personal preferences and
activities of consumers, including their physical locations, are generated by their interactions across digital
media, which are increasingly conducted via mobile
devices. With these rich new streams of data, marketers
can personalize any shopping occasion and deliver far
more relevant solutions to consumers.
Mobile enables marketers to link and sync consumer data and personas across touch points. Mobile
can make TV and print personalconsumers can read
or see an ad, scan a code, and receive individually tailored offers. In the store, shoppers can receive personalized information while walking down an aisle or at the
register, and react to that information instantly. The
multidirectional nature of such interactions provides
marketers with additional data they can use to further
tailor content to consumers, and to glean insights they
can employ to improve the consumer experience.
To achieve this level of personalization, companies
will need to obtain data across devices and platforms,
and then integrate it into a holistic consumer profile.
They must be able to generate insights from the data
that can be used to inform segmentation, marketing
strategies, and spending. And, of course, they will need
algorithmic and engineering expertise to deliver relevant,
personalized messages to consumers wherever they are.

Second, think three years out, but start building

today. Companies face a challenge as they try to get out

ahead of the mobile curve. If they dont build now, they

risk ceding leadership positions to their competitors.
But if they commit when the endgame is not completely clear, they risk betting on the wrong capabilities and
wasting valuable resources.
Start by creating a vision that involves and is
embraced by the full organizationnot just by marketing and sales, but by all the functions that will help
bring it to life, such as IT, human resources, and
finance. Just as some companies have been using digital first as a way to focus on the online experience, they
should now rally around mobile first as a way to
inspire groups throughout the organization to create
integrated customer experiences that stretch from prestore research to in-store engagement (both at the shelf
and online) to post-store sharing via social media.
With a vision in place, companies have the basis for
developing the detailed road map needed to bring that
vision to fruition. To begin building a mobile capability
today that will still be relevant and differentiated by the
time it is built out, companies need to leverage best
practices in agile development and rapid prototyping,
apply a user-centric perspective, and be able to iterate
quickly to find the best ways to drive engagement and
conversion.
Third, dont just advertise, activate. Although
mobile advertising campaigns can be highly effective if
they are contextually relevant, to fully capture the
mobile opportunity, dont think of mobile simply as a
delivery channel for advertising. Instead, think of it as a
connector between digital and physical life. The primary role of mobile technology in the marketing

www.strategy-business.com
3

Smartphone to
Aisle Nine

smartphone usage is pervasive

use are higher yet in certain cate-

across key product categories.

gories: 89 percent of smartphone

This is quite high, says Adam

Grunewald,

A new study, conducted by Google in

conjunction with the Google Shopper
Marketing Agency Council, suggests
that tomorrows big sales driver will be
the smartphone.

mobile

marketing

research manager at Google, but I

shoppers in grocery category, and 87

percent in electronics and baby-care
categories.

dont imagine that the percentage of

The Google research also found

smartphone shoppers will stay at 79

that smartphone shoppers use their

percent. As retailers and manufac-

phone for shopping-related activities

turers respond to mobile, the per-

when in the store for a significant

centage of smartphone shoppers

period of time. Almost half use their

by Heidi Froseth, Tina Manikas, and

will go up. There will be more apps,

mobile phone for 15 or more minutes

Ken Madden

more mobile-friendly websites, and

per store visit, a finding that sug-

more mobile payment solutions. Not

gests that shoppers are obtaining a

With a market penetration already

only will the number of smartphone

good deal of value from smartphone

exceeding 54 percent in the United

owners increase, but the percentage

use and will take the time to use

States,

of smartphone shoppers will in-

their devices in the aisles, even in

crease as well.

categories where dwell time has his-

smartphonesthe

most

ubiquitous of mobile devicesare

poised to transform shopper behav-

Among current smartphone shop-

ior faster and more dramatically

pers, roughly half use their devices

torically been measured in seconds

rather than minutes.

than many marketers and retailers

to assist in pre-shopping activities,

Further, in a finding that is likely to

realize. To plumb the role of smart-

including looking up store locations,

presage a rush into mobile by many

phones as a shopping tool, the

hours, and promotional offers; mak-

retailers and manufacturers, in-

Google Shopper Marketing Agency

ing price comparisons; and browsing

store smartphone shopping appears

Council recently conducted a study

products. Once they get into the

to result in increased basket size

of a representative sample of 1,500

store, however, shopping-related

and the increase is greater with

U.S.-based smartphone owners over

smartphone useoften in the form

greater frequency of smartphone

age 18. The survey revealed that 79

of searching out product informa-

use. Indeed, the median purchase of

percent of them are using their

tion, promotions, and pricingrises

the 17 percent of smartphone own-

devices in shopping-related activi-

sharply, to 84 percent of smartphone

ers who use their phones while

ties at least once per month and that

shoppers. The figures for in-store

shopping at least once per week is

ecosystem should be brand activation, that is, directly

engaging consumers through content and offers.
Activation can take place pre-store. For instance,
mobile enables consumers to multitask while watching
TV: They can research a product theyve just seen advertised via a tailored app or mobile-optimized website
and, thus, move from entertainment mode into shopping mode. Activation can be sparked in-store, too, for
example, through a call to action on a display or on
product packaging that can be triggered via the consumers device. Once activation is achieved, mobile can
be used to ensure sales. For instance, the Kmart
Corporation has created a Ship to Home service that
enables a shopper who cant find a product on the store
floor to use a mobile phone to have it shipped to his or
her home free.

Activation can even occur after the purchase via

activities like photo sharing, reviews, and tweets
through which consumers share reactions to their purchases, or indicate consideration of future purchases. To
fully leverage digital engagement and build end-to-end
experiences, marketers need to focus not only on crafting pre-store solutions, but also on reinforcing a customers emotional connection with the brand all the
way through post-purchase activities.
Many companies will need to develop stronger
capabilities across several functions, including insight
development, content marketing, data analytics, and
technology integration, to capture the opportunities in
mobile activation. This will require nurturing new talent
in the organization and working together in new ways.
Fourth, approach mobile as a team sport. If mobile

and

phone shoppers: high-frequency

empowering their frontline employ-

Therefore, marketers and retailers

smartphone shoppers reported bas-

ees with better tools and information

that want to capture smartphone

kets that were 50 percent larger in

to engage shoppers or to curate the

shoppers in the store should have a

health and beauty, 40 percent larger

in-store experience in a way that

strong presence on each.

enhance

differentiation

by

in appliances, and 25 percent larger

eliminates the need for a shopper to

in household care.

talk to an employee.

the stores app as the access point.

Heidi Froseth

Frequent smartphone shoppers

The most common in-store smart-

are probably using their phones

phone shopping activity is price com-

is senior vice president of

longer while theyre in the store,

parison.

CatapultRPM and leader of its

Fifty-three

percent

of

[email protected]

says Grunewald, and they may be

smartphone shoppers are compar-

Target team. She is based in

using them in more sophisticated

ing in-store prices, which can lead to

Minneapolis.

ways, with more apps and the like.

showrooming: using mobile to find

This increased usage may cause

a better deal online or at another

Tina Manikas

shoppers to buy additional items

store and then making the purchase

[email protected]

via coupons, for exampleor to

elsewhere. Rather than trying to

is a Chicago-based executive vice

upgrade, based on reviews. Or the

quash this behavior and risk alienat-

president and global retail officer

for DraftFCB.

ability to do research in the store

ing shoppers, however, retailers

might simply bolster a shoppers

should be thinking about how to pro-

confidence about a purchase.

vide a better overall experience to

Ken Madden

keep smartphone shoppers in the

[email protected]

pers is using mobile to replace or

store, perhaps by using QR codes to

is executive vice president and head

supplement interaction with store

unlock exclusive offers and rewards.

of digital North America for

One in three smartphone shop-

employees. They search for relevant

Finally, search is the most com-

content, such as ratings and reviews,

mon way in which smartphone shop-

nutritional content, or other prod-

pers access information in the store:

ucts that go well with what they just

82 percent of shoppers are using

All three authors are core members

put in their shopping basket. This

search engines to browse for prod-

of Googles Shopper Marketing

suggests that there is an untapped

uct information in a store, versus 62

Agency Council.

opportunity for retailers to add value

percent using the store website or

is to be the glue that holds once disconnected parts of the

consumer experience together, it will necessarily cross the
internal and external boundaries of the marketing ecosystem. Mobile takes a team.
Today, marketing is more fragmented than ever
before. There are myriad channels; consumer touch
points; and sources of data, content, and tools. To deliver
an integrated consumer experience, manufacturers and
retailers need to tear down organizational silos and promote collaboration.
Every team needs a coach. Coaches are responsible for
providing a vision for how to win and what plays to run,
and for engaging players to unlock their full potential.
Similarly, teams need a general manager, who will guide
decisions on personnel and resources. How much of, and
what parts of, the consumer experience will the organiza-

JWT/OgilvyAction, located in New

York.

tion curate itself? How will the company secure the

additional talent, data, and tech-enabled platforms they
need to win from an extended team of partners?
The mobile first approach creates opportunities
across a broad set of players. Media companies can add
new value to their relationships with retailers and manufacturers by helping produce content, apps, and
insights. They can also help drive adoption by integrating ad campaigns with their content. Marketing services providers and technology companies can support
brand manufacturers and retailers by developing and
providing specialized mobile capabilities.
Getting Mobilized

The mobile future begins now. The four principles outlined here will help companies secure the vision, the

www.strategy-business.com

higher than that of monthly smart-

www.strategy-business.com
5

plans, and the capabilities required to deliver seamless

consumer experiences that bridge the digital and physical worlds and create greater value for consumers.
Companies that begin this work today will be able to
achieve transformational improvements in the coming
years. Those that wait too long will strain for years to
catch up, if they ever do. +

Resources
Matthew Egol, Raju Sarma, and Naseem Sayani, Reimagining Shopper
Marketing: Building Brands through Omnichannel Experiences, Booz &
Company, June 2013: How consumers interact with brands has become
nonlinear and shaped by many interactions across these touch points,
leaving them to curate most of their brand experiences.
Matt Anderson, Stefan Eikelmann, Fabian Seelbach, and Nick Buckner,
Shoppers on the Go: Winning Strategies in Mobile Commerce, Booz &
Company, Nov. 2010: A study highlighting the growing importance of
mobile commerce as a way both to understand real-time consumer behavior data and to use in-the-moment analysis to capture market share and
influence consumer purchases immediately.
Matthew Egol and J.P. Leisure, Shopper Marketing 5.0: Creating Value
with Shopper Solutions, GMA, Oct. 2011: Shopper marketing study
revealing that leading CPG manufacturers and retailers are increasingly
adopting a solutions-based approach to amplify the impact of their shopper marketing investments.
Matthew Egol, Mary Beth McEuen, and Emily Falk, The Social Life of
Brands, s+b, Autumn 2012: A marketing strategy informed by neuroscience can help companies enhance customer engagementand make
better use of tools such as social media.

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