Last week, the Annual Grocery Shopping Habits Study, revealed that consumers are more ready than ever to embrace mobile grocery shopping. The study also indicated how frequently consumers
visit grocery stores, with more than 85% visiting once per week and 42% visiting more than twice per week; leaving Grocery stores probably one of the most frequently visited proximity retail locations that I can think of.
But, while consumers are going grocery shopping often, at the same time only 13% actually feel loyal to a specific grocery brand. Considering the frequency of store visits, the readiness for adopting new mobile services and the lack of brand loyalty, I can’t think of a more relevant scenario for mobile shopping intervention.
With a mobile wallet grocery retailers could actually build more loyal customers by bringing together services like ordering, payments, loyalty and couponing, to make their store the preferred shopping location, all the time.
What’s more is that, the increasing competition from the likes of mobile commerce giants like Amazon, with its new mobile grocery ordering service, could eventually become a big threat to grocery retailers. Those who do not converge could risk being left behind and losing market share.
How Mobile Shopping fits into the Customer Journey
In the typical “grocery shop”, there are essential items that we need, items we prefer to choose ourselves (like fruits and vegetables) and then there are also times we just need a couple things and want to be in and out as fast as humanly possible.
Catering to these complex customer journey’s, the Mobile Wallet we developed for Carrefour City, enables shoppers to pre order and pay for essential items, but also add additional products to the basket in-store. When the customer arrives at the store, orders can be picked up at a designated check out. Because nobody likes waiting in long lines, users of the service get to skip the line, no matter if they add additional items or head right to the check-out to pick up their order. This whole process cuts down ordering and waiting time by about 60-70% and also increases the average ordering amount by almost double.
But, this only scratches the surface of how mobile can improve grocery shopping. Take for example couponing. With 76% of grocery shoppers adding additional items to their intended grocery shopping list, couponing could be better used to influence real time purchasing decisions. A customer is walking down the cereal aisle, and receives a discount on a cereal brand, they weren’t going to buy cereal during this visit but eventually will, so that discount in-store at the right time can really inspire purchasing. What’s more is that customers really want to receive those coupons.
Today’s grocery retailers need to know, that by delivering mobile services, there is little to no risk in losing customers; things can only get better. Nowadays, with 52% of consumers already visiting a grocery retailer’s site or mobile app, they are already used to mobile shopping all the time. Enabling the option to order and pay while browsing that content is only going to make things easier. Customers can still shop in the traditional way and those who prefer to shop by mobile phone will now have access to mobile services with more benefits and increased savings.
Read more on the Annual Grocery Shopping Habits Study
Learn more about the AIRTAG Mobile Wallet for retailers, AIRSHOP
A couple of years back, almost everyone thought of a wallet as a human accessory used for storing the daily essentials. Fast forward to now and the wallet has mobilized and is quickly becoming the newest Smartphone trend. A quickly evolving technology trend, with many different players, doesn’t always make for user friendly understanding. So, here’s our GO, at doing some user friendly mobile wallet simplification.
Mobile Wallets, putting it simply, are apps that have payment functionalities. Most wallets right now incorporate online payments which could mean; credit card, 1 click, Digital Wallets (like PayPal), prepaid, gifting etc. The idea behind a mobile wallet is simple, but the lines are continually being blurred between apps and wallets. While payments remain the core differentiator between a wallet and an app, from our perspective, wallets need to include features beyond payments to add benefits to the customer journey and to help drive consumer adoption.
An example: Retailer Mobile Wallet: Retailers, like KFC, Starbucks and McDonald’s, have been quick to define a mobile wallet strategy, and as a result are becoming big influencers in the eco-system. Retailer wallets, in addition to other features, enable shoppers to make purchases via mobile phone by means of credit card, 1 click, digital wallets like PayPal, prepaid or gift cards. Retailer wallets have a huge advantage, because the value proposition is very clear. If a retailer wallet can improve the customer journey, and bring together all of a retailers value added services such as fast ordering, loyalty, couponing, in a more organized way, then consumers will be quick in their adoption.
Digital wallets are mobile wallets that enable users to make 1 click payments via mobile phone; because the user’s card information has already been stored securely in the cloud. This is a more convenient payment means via mobile phone, because the user only needs to enter their credit card information once, rather than needing to type card details every time. It could be possible that a mobile wallet actually incorporates a Digital Wallet, such as PayPal, MasterPass or V.me as a payment means.
An example: MasterPass Digital Wallet: MasterCard’s MasterPass aggregates cards into the cloud, so that consumers no longer need to enter their credit card credentials and billing information every time they want to make a purchase online. In order for this to be a viable payment method, retailers and online merchants need to add the Master Pass API to their site or mobile wallet, meaning they need to add the “Buy with Master Pass” button, so that shoppers can have the option to pay with MasterPass; like choosing to pay with any other payment option: MasterCard, Visa or PayPal etc.
When it comes to wallets, each of the key players in the eco-system; retailers, financial institutions, MNO’s, technology providers, cell phone manufacturers and payment providers, are going to have a very different strategy and offering. For example a retailers mobile wallet which begins with a customer journey is going to have a different infrastructure from a financial institutions whose business core is payments. The key for each however, will be to find a way to bring something uniquely valuable to end users to incentivize the shift from physical to digital; and bringing that value is exactly where AIRTAG fits in.
Learn more about the KFC Mobile Wallet
Learn more about the MasterPass Digital Wallet
Don’t forget to join the Mobile Shopping conversation on Twitter.
The quick and steady growth of the Retailer Mobile Wallet; has created a call for action from retailers. But, the word wallet naturally implicates payment, when payments are only a part of what a retailer mobile wallet CAN do to improve in-store shopping. This week, we came across an article we really liked, “Why mobile wallets alone will fail”, which articulated why mobile payments fall short in bringing real value to both retailers and shoppers. “Alone, mobile payment won’t take off with shoppers in a big way, but only as part of something that lifts up the shopping experience radically and fundamentally.” (Fortune)
That said, not all mobile wallets are centered around payments. Both of our retail focused Mobile Wallet solutions AIRSHOP Order and AIRSHOP Loyalty have been built on the idea that value added features are the key to driving user adoption. For example; fast ordering and payments so customers can order anytime and anywhere, geolocated couponing that is relevantly timed to inspire purchasing, skip the line incentives that cut down in-store waiting and lines by up to 60 or 70%, loyalty so customers can feel appreciated for giving their business to a retailer, real time product availability so customers can rely on what is actually available for purchasing in-store. The benefits will drive the adoption, and when that occurs, retailers will have a big time tool to manage their customer relationships; something which just can’t be done as well through traditional shopping. Once the benefits are established, expedited payments can only make the customer journey even better.
Don’t get us wrong, Mobile Payments do have a very relevant place in the retailer mobile wallet, and are principally important in the mobile commerce, web to store and mobile to store customer journey’s. Especially considering that there is a 66pc mobile shopping cart abandonment rate. In these cases, mobile payments still play an essential role in winning the sale; and retailers need to make improvements by adding more 1 click payment options, PayPal, and digital wallets like MasterPass and V.me. But, considering that payments are still only the last step of the customer journey, the greater importance remains in actually getting customers there.
At AIRTAG when we’ve got big news, we really like to share it, and today we’ve got some big news! We are very excited to announce a partnership with Kentucky Fried Chicken (KFC) in the UK. KFC has chosen our Airshop solution to launch their first ever mobile and web app for advanced ordering and payments, called KFC Fast Track. This partnership is good news for shoppers who can’t get enough of their Smartphones because now they can order delicious KFC meals on any connected device; anytime and anywhere.
Airshop is an end to end mobile commerce solution enabling retailers to launch self-branded mobile and web apps for advanced ordering & payments. KFC will very soon launch Airshop in 10 locations across the UK which is a lab for international technology testing and roll-out.
KFC well understands changing consumer behavior and the new opportunities mobile commerce is creating for retailers. Paul Borrett, IT Director of KFC UK & Ireland who worked closely with us on the project explained the importance of streamlining the customer ordering experience and hints at the exciting future plans we’ve got lined up for KFC Fast Track. “Our customers lead increasingly busy lives and KFC Fast Track is focused on helping them order, pay for and collect their food faster than ever before, delivering a great experience throughout,” said Paul. “We look forward to working closely with AIRTAG and adding many more innovative features to KFC Fast Track in the coming months.”
Beyond a mobile app, our CEO & Co-founder Jérémie Leroyer spoke to the importance of mobile commerce adoption as essential to a retailer’s success. “To launch a mobile ordering and payment app for Yum! Restaurants International is a real milestone for AIRTAG. KFC Fast Track will renew the ordering experience in a way that meets new consumer demands for efficiency onset by the increasing importance of multi-channel commerce shopping,” said Jérémie. “We are very pleased to work with KFC in carving out a mobile presence that brings real value to end users and we are very excited for the programs roll out.”
KFC Fast Track Customer Journey Snapshot:
- Download the iPhone app in the app store https://itunes.apple.com/gb/app/kfc-fasttrack/id604869919?mt=8
- Select the closest or preferred ordering location from a geolocated list of KFCs with the service
- Compile an order by selecting desired products and pay by credit card
- After the order is paid for, check your device for a QR code and order confirmation number for order pick up at KFC.
Customers can pick up their order at KFC anytime on the day an order is placed. When the customer gets to KFC, they will do a “mobile check-in” and then skip the line and proceed directly to the check-out specifically designated to KFC Fast Track users to pick up the order. No long lines, no big waits, KFC Fast Track users will have an easier more convenient ordering experience than ever before. It’s really just that simple. KFC Fast Track users can also save their ordering history, favorite stores, favorite orders and payment details to make re-ordering even easier. It won’t be long before KFC Fast Track includes “Geofencing” so customers can do the mobile check in, even before getting to KFC.
KFC recognizes that the future of fast food retail is rapidly changing. To stay ahead of the game KFC has chosen our Airshop solution to go mobile; the perfect recipe for success!
What is Airshop?
Airshop is a turnkey solution for retailers, including everything needed to launch an entire mobile and web ordering platform for advanced ordering & payments. Airshop as its title suggests enables retailers to digitize there stores and no longer be confined to the walls of a physical store. With Airshop retailers can meet new demands onset by the increasingly mobilized consumer that expects to purchase from a retailer on any and every channel in real time, from anywhere.
We hope to hear from you soon, so don’t forget to join the #MobileShopping conversation by Tweeting @airtag and by using the #KFCFastTrack
This years, Mobile World Congress in Barcelona, Spain February 25-28, will focus on, “The New Mobile Horizon,” showcasing the imminent ways mobile is continuing to enhance all of our lives. By the end of this year alone there will be more than 15 billion connected devices, out-numbering the world’s population. The mobile phone is re-shaping the world as we know it, and becoming ubiquitous to the way that we connect, interact and live. AIRTAG will attend this year’s MWC to connect with other industry leaders and other players in the mobile commerce eco-system to share our experience in Mobile Shopping innovations that are helping to re-invent the consumer experience of going shopping, making purchases and paying. Our demos this year are focused on continuing to streamline the user experience with the introduction of NFC technology into existing customer journeys. AIRTAG’s MWC demos for this year, will include:
GoMcDo: now live in 60+ McDonald’s France locations. GoMcDo enables users to order and pay ahead for McDonald’s products, check-in on the unattended “Easy Check In” Kiosk to pick up an order, and then skip the line. We will be demo’ing this solution with NFC check-in capabilities to show a further simplified user experience.
McDonald’s iPad ordering: A solution that helps McCafé (The coffee chain branch of McDonald’s) baristas take customer orders by iPad directly at the table.
AIRPASS: AIRTAG’s comprehensive customized white label mobile wallet solution, enabling retailers, financial institutions and MNO’s to deliver self branded mobile wallets with NFC payment capabilities. AIRPASS will be demo’d at MWC with the inclusion of mobile commerce features: McDonald’s fast ordering and Loyalty program integration.
AIRSHOP Loyalty: An innovative Loyalty solution for processing Mobile & NFC Loyalty cards directly at the POS giving shoppers ‘real-time’ access to rewards balance updates. Shoppers have the ability to choose when and where to burn their rewards in ‘real-time’.
We hope to see you at the MWC 2013! If you are interested in meeting us on the road, contact us here to make arrangements prior to the show.
Lear more about the Mobile World Congress.
At the NRF 13 it was evident that Mobile Payments are quickly capturing the interest of retailers big and small across North America and beyond. Very promising predictions after the NRF released by Forrester Research further point to the growing importance of Mobile Payments, an industry expected to be worth 90 billion USD by 2017. (Forrester Research) What caught our attention about Forrester’s predictions was that Mobile Proximity Payments (in-store payments) which currently have the smallest share of the payment pie, will see the most growth between now and 2017; growing “from a 4 percent share to 45 percent” (Forrester Research) by 2017. The reasons that Mobile Proximity Payments are expected to break out, are the ways in which Quick Service Retail (QSR) retailers can “tack on” value added services.
Recently, our CEO Jérémie Leroyer shared with PYMNTS.com our perspective on Mobile Shopping’s ability to grow the payment industry. “We should think in terms of shopping experiences rather than payments. Shoppers are not expecting a new payment method, they are really expecting a new shopping experience. We have to provide something…that brings more value to the customer.” (Jérémie Leroyer on PMNTS.com)
Thinking about Forrester’s predictions from the Mobile Shopping perspective; more than ever proximity retailers are realizing the mobile phone’s ability to deliver value added services to end users and quickly implementing: fast ordering, loyalty, couponing, advanced ordering and online payments. Adding Proximity payment capabilities to these types of solutions, will be a logical continuation in the Evolution of Mobile Commerce. At AIRTAG we like to emphasize that it may be less about where we can make mobile payments right now and more about the increasing availability of Mobile Shopping Solutions. A lot of retailers are beginning with value added services and we expect to see payment growth stem from the “tacking on” of mobile/NFC payment capabilities.
Read the full article on Mobile Proximity Payments by Denée Carrington of Forrester Research
We saw some major trends this holiday season; that re-iterated the ever growing importance of Mobile Shopping. We heard a lot about showrooming, omni-channel mobile strategy and mobile commerce success; 24% of Black Friday purchases made by mobile phone, 28.5% of shoppers engaging in some sort of Mobile Shopping on Cyber Monday and Ebay reporting even higher sales the following week. All of which, has raised the question as to whether or not every day has become a Mobile Shopping day? Everything we have seen over this holiday season indicates that we are moving beyond a revolution and that, Mobile Shopping has arrived. More >
“The brightest star in the retail sky this year was mobile commerce,” said Mickey Alam Khan, editor in chief of Mobile Commerce Daily and Mobile Marketer, New York. This holiday season has proved more than ever that Mobile Commerce is here to stay. Although NFC has not experienced the same boom yet, we at AIRTAG know that NFC is the direction in which we are moving. Yet, it may be even 5 years or more before, “NFC accounts for the majority of payments.” (Jérémie Leroyer on Mobile N Apps) AIRTAG’s CEO, Jérémie Leroyer had a recent opportunity to share the AIRTAG perspective on NFC with Heather Lockenson of Mashable on Whether or not it is worth it to build an NFC app right now. “NFC is really, so far the only technology available on Smartphones that can secure a transaction,” said Jérémie Leroyer to Mashable. “NFC will become the main technology to perform transactions in the future.” Read the full article on Mashable More >
Everyone at AIRTAG has been very excited about the launch of the AIRTAG Kit. Today, we are reminding everyone of this unique set of tools, with the official launch of the AIRTAG Kit in France. The AIRTAG Kit is a fastand easy way to develop a MasterCard PayPass Wallet Application using MasterCard’s recently released Mobile User Interface Software Development Kit (MMPP UI SDK) now available free for download via the MasterCard Developer Zone. The AIRTAG Kit contains the necessary hardware, tools and support to successfully complete your PayPass Wallet App development. It’s cost effective, easy to use and simplifies the MasterCard certification process.
What’s in the Kit? The Kit includes, the latest generation NFC Samsung Galaxy S3 with 3 pre-installed white label apps including a wallet, a USB Contactless Card Reader, 5 UICC samples, 2 demo tags, and a 1 year membership to the Developer Program. The Developer Program provides the ability to ask our own AIRTAG developers additional questions, support for issues you may have with the UI SDK or the AIRTAG Kit, additional resources; user guides for the MMPP UI SDK and the AIRTAG Kit, tutorials, manuals, payment scheme support and support for additional Smartphone platforms as they become available. These resources provided in the Developer Program are used by our own AIRTAG developers to build mobile payment & wallet apps. Where else would you be able to get ongoing support from a group of NFC Mobile Payment experts at such a low cost? More >
The yearly held MAPIC awards seek to pay tribute to “excellence, innovation and creativity” in retail. The 2012 MAPIC awards winners were announced on November 15 at the Martinez Hotel in Cannes and we are very happy to announce that our partner McDonald’s has succeeded to win for “Best Multi-Channel Strategy,” category with the GoMcDo solution. AIRTAG has been working together with McDonald’s on the GoMcDo project since 2010. The GoMcDo service now live in 55 restaurants, enables shoppers to order and pay in advance for their favorite products. The solution includes; a mobile application, online web service and the NFC compatible “easy check in.” When customers get to the restaurant, they just scan their Smartphone or type in their order number on the “Easy Check-In” Kiosk to instantly re-call the order. GoMcDo users then they get to #skiptheline to pick up the order. GoMcDo was the first brand app in France and is revolutionizing the ordering experience in fast food retail. The continued innovation of GoMcDo advanced features including geolocation, an in-app player to watch feature film trailers and most recently Passbook integration, continue to McDonald’s leading the way for innovation.
Way to go GoMcDo!
Learn more about GoMcDo advanced features
Learn more about the MAPIC awards