Walmart's Global Head of Mobile, Gibu Thomas just got off stage here at CTIA in Las Vegas. He offered an overview of Walmart's approach to mobile which based on our research is dead on. It's solid. (I dropped in a partial/paraphrased transcript below - read the details if you'd like, but summary/analysis up top here. At times I felt like he was following our research stream b/c the language was so similar - he even quoted James McQuivey from 1999 "When consumers adopt new technologies, they do old things in new ways. When they internalize technology, they begin to do new things."
(And I'll sound like a bit of a broken record here as I've said so much of this before. Difference now is retailers like Walmart are implementing and talking about the results).
- Mobile opportunity ($) > eCommerce opportunity. The opportunity in mobile is not primarily mCommerce - a number Sucharita Mulpuru and Forrester Research put at 8% of eCommerce sales in 2016. In 2016, eCommerce will be about 10% of retail sales. The mobile-influenced number at more than $700B (forecast) in the US makes mobile-influenced sales the bigger number. The opportunity in mobile is a combination of a) influencing sales ($$$) and b) giving consumers the ability to buy anywhere/anytime ($). You can't just shrink/squeeze and experience onto a small device - this is too mini-eCommerce centric and misses the bigger opportunity.
- Consumers who use mobile devices are more engaged and spend more. Ok - there is a big of a chicken or egg here. Do more loyal, frequent shoppers download your app? or do consumers become more loyal once they download your app? The answer is both. At Walmart, mobile app users spend 40% more each month and make 2 more trips/month. Our highly engaged spend 77% more each month and make 4 more trips per month than the non-mobile use.Read more