Transcript Slide 1

RETAIL MOBILE
EXECUTIVE
SUMMIT 2011
PayPal Mobile
Confidential and Proprietary
Laura Chambers
Senior Director, Mobile Strategy
PayPal, Inc.
Strategic Insights to Mobilize Your Business
7/18/2015
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Today’s Agenda
1.
OUR VIEW ON THE WORLD – KEY TRENDS & INSIGHTS
2.
WHO IS THE MOBILE SHOPPER?
3.
PAYPAL MOBILE MOMENTUM
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Consumers have a “store in their pocket” to
use online, offline, or in-line
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FOLLOW your Customers: enable them to Shop
as they wish, when they wish
f
Social
phone
Web
Retailers
Customers
Today it’s all about CONSUMER CONVENIENCE - buying what they
want, when they want, where and how they want
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E and Mcommerce quickly gaining share vs Offline
Web represents ~5% of Retail in U.S. Mobile set to reach the same level much faster
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Key Mobile Technology Trends
• Faster and faster networks
– 4G, HTML 5 will accelerate mobile shopping
Implications:
Network speed key enabler
for mCommerce
• Exploding adoption of “smart
devices”
– 1B smartphones/tablets with advanced browsers
Retailers ”mobilization”
needs to be accelerated
by 2013 (Cowen & Co.)
• Android on the rise
– iPhone and Android 90% of browsing
• Emergence of Tablet computing
– Rich shopping experience and heavy spenders
Mobilization more
expensive to optimize
multiple OS platforms and
form factors
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Mobile Shopping = Huge Opportunity for Retailers
MORETAILERS
Yet some have yet to invest adequately
Millions of Smartphone/Tablet Users
• By YE 2011, over 50% of the U.S. adult population will own a
smartphone (Nielsen)
Shopping on their Mobile Devices
•50% have browsed, researched, or purchased products
(Oracle/ATG)
= Huge Opportunity for Retailers
• U.S. mCommerce sales will reach $5B in 2011 and represent
12% of global eCommerce by 2015 (ABI Research)
• Estimated $1T opportunity, when considering multi-channel
According to Forrester Research, 39% of Retailers are still in the
early stages of their Mobile strategy
- Forrester Research, Mobile Commerce Forecast, June 2011
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MOBILE WILL Increasingly PLAY A CENTRAL ROLE
in Multi-Channel Retailing
“Whatever your mobile strategy is, keep in mind that a
consumer’s ever-present mobile device is destined to become the
connector of all other channels – Web, physical stores, contact
centers, catalogs and social”
Kelly O’Neill is Director of industry marketing for Art
Technology Group (ATG)
“As our guests increasingly turn to their mobile phone as a virtual
shopping assistant, we recognize the importance of creating
innovative solutions that enable them to interact with Target anywhere
and anytime”
Steve Eastman, President of Target.com
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Today’s Agenda
1.
OUR VIEW ON THE WORLD – KEY TRENDS & INSIGHTS
2.
WHO IS THE MOBILE SHOPPER?
3.
PAYPAL MOBILE MOMENTUM
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INSIGHT EXPRESS: Who Is the Mobile Shopper?
A VERY attractive consumer for any retailer…
• 36% make a purchase on their phone while in-store always or
usually
• 83% are between 18-44 years old
• 72% are smartphone owners
• 54% are male, 46% are female
• 52% make more than $50k a year; 32% make more than $75k a
year
• 37% are minorities (compared to 21% for non-mobile shoppers)
• 32% have an iPad
Source:
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KEY INSIGHTS PayPal Is Seeing
 The mobile shopper is mid- to late-30s, upper-income
o iPad owners skew older, even wealthier
o 4 in 10 online shoppers own iPhones.
 Mobile has become a ubiquitous shopping utility
o Overall half of Smartphone users and iPad owners use their devices to shop
 Mobile is now a key complement to in-store shopping
o Owners use smartphones as a shopping companion for product and price comparison
o iPad is more popular for physical purchases (82%, vs. 56% by Smartphone)
•
Boredom/time-killing can trigger online shopping, especially on
iPhone, iPad
•
Computer remains preferred shopping device; Mobile is making
inroads driven by time-sensitive purchases (e.g. Gifts, Tickets)
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Internet access from mobile device
peaks during transit and also at night…
Mobile Device – Internet Access by Time of Day
(Weekday)
Morning, before Travel (on the
Lunch
During office After going back At night - after
start
bus or train) time/break time
hours
from
dinner and
working/going to
office/school before going to
school
bed
Base: All respondents (n=507)
Time of day people SHOP the most on mobile devices: 12-1pm
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18% of Mobile owners have purchased something
on their phone; 35% of smartphone owners
People are buying a wide variety of products at different price points
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Why aren’t certain people shopping on Mobile yet?
A few reasons from Forrester Research Inc. – Concerns
about Security
“I would use the mobile Internet on my cell/mobile
phone to purchase products…”
45%
If my mobile phone number would be kept private
Very easy [5]
28%
If mobile payment
services were more secure
Very satisfied [5]
35% 44%
[4]
41%
[4]
36%
38%
If sites on the mobile Internet had all of the same content,
features, and functionality as on the standard Web site
35%
If the mobile Internet was faster
[3]
19%
[3]
33%
17%
If sites on the mobile Internet looked more like they do on
a computer
32%
If my phone had a larger screen
Base: 4,306 US online consumers
Source: Forrester Research Inc. North American Technographics® Retail Online Survey, Q1 2011(US)
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Additionally, the Mobile User Experience needs
some Help
Respondents were asked to rate their channels for
quality of customer experience:
• Just 9% believed
the Mobile
experience was
good
• 46% believed it was
poor.
Source: eConsultancy “Reducing Customer Struggle Report, June 2011
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Payments Play a Critical Role in Mobile
Security
Simplicity
Innovation
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Today’s Agenda
1.
OUR VIEW ON THE WORLD – KEY TRENDS & INSIGHTS
2.
WHO IS THE MOBILE SHOPPER?
3.
PAYPAL MOBILE MOMENTUM
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The Global leader in Advanced Payments
100M Digital Wallet Accounts ready to shop
 100M active accounts, 190 markets
& 24 currencies
 3 million merchants accept PayPal 68% of the top 100 IR B2C
merchants.
 $92B payment volume in 2010 (28%
YOY Growth)
 18% of ecommerce
 47% international
 61% off eBay
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PayPal Mobile Offerings are Customer Driven
Consumer
Clients
mCommerce
Solutions
• PayPal App available on iPhone,
Android, RIM. Key Features•
•
•
•
•
Send/Request Money, Check balance/History
In-Person payment (Bump), Split Check
Charity Donation
Mobile Check Capture
PayPal Local
•Mobile Web Checkout solution
•App Stores API based solution
•In-app payments native SDK
• Evolution to Wallet for remote
and POS transactions
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(Libraries)
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PayPal Is Experiencing Massive Mobile Growth
• 5x Growth in 2010
• Processing $6+ million
mobile transactions daily;
set to more than triple to over
$2B in 2011 (globally)
$2,000+
• 6 million+ regularly using
PayPal via mobile devices
$750
$25
2008
$140
2009
2010
2011Est
PayPal Mobile TPV Set to reach $2B globally in 2011
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Our Customers look for a consistently Great
Checkout Experience at leading retailers
1 data field-password entry
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Tap, Tap, Done. Minimal Steps for Easier Shopping.
Login
Checkout
Review
Payment
Complete
Your Customers are in Control
They CHOOSE the place, store, site, phone, tablet… PayPal ensures you’re
Everywhere with the perfect buying experience
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Optimize your Mobile Shopping Experience.
Easy Checkout for “on the go” Customers.
For Customers
For Retailers
•
Increase mobile sales and
conversion
Fast and easy: speed
through checkout
•
Provide a strong customer
experience
Secure: Avoid entering
sensitive data in public
•
Drive loyalty and re-use
from over 100 million savvy
PayPal buyers
•
Seamless 2-click buying
•
•
Sampling of Live Sites:
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Partners Are Seeing Strong Results
Express Checkout Drives Higher Mobile Sales
Testing Validates Impact:
•Conversion Lift: Over 30% increase
in Conversion (turning browsers to buyers)
•Sales Lift: Double digit sales lift
•Huge Relevance: 2x higher share of
checkout for mobile than that on the web
(30%+ SOC for several merchants)
“The largest benefit to offering (MEC) is to streamline the checkout process
and offer a more simplistic view catered to one’s mobile device…”
- Neel Grover, President and CEO
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Case Study: Crutchfield Drives Huge Conversion
with PayPal
Crutchfield Results
• 33.7% lift in site conversion
over other payment types
(Crutchfield A/B Testing)
• 65% of PayPal mobile users
are brand new to Crutchfield
(Crutchfield Internal Data)
“Our data shows that Mobile Express Checkout not only drives CONVERSION, but that it is
delivering a significant amount of NEW customers. This is evidence that providing a fast and easy
checkout is an integral part of the mobile shopping experience.”
– Todd Cabell, Senior Manager, Web Strategy, Crutchfield
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Concluding Thoughts
• Let Your Customers Lead the Way
• Build Solutions that Make their Lives
Easier
• User Experience is Critical to
Successfully Mobilize Your Business
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Next: Blue Nile Mobile Story
• Leading online jewelry retailer
will now share their mobile
success story
• Jon Sainsbury, VP of
Marketing at Blue Nile
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Confidential and Proprietary
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APPENDIX
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Remember Experience is key: Build the right mobile flows
for your customers
Suggestions to optimize your mobile site or app:
•
Minimize data entry, clicks and scrolling with expandable sections so content fits on
screen
•
Make links and buttons large enough to click on small screens
•
Place ‘Checkout Button’ top and bottom of screen
•
Place ‘Add to Cart’ button throughout product and search result pages
•
Make checkout fast and easy – leverage auto-populate functionality when possible and
provide ‘progress bar’ at top
•
Allow users to checkout as guests (without lengthy login)
•
Automatically save the users cart contents for return visits
•
Keep design simple and clean- no need to put entire website offerings on a mobile device
“It seems to me that PayPal is likely one of the best options for mobile sites
it helps to reduce the number of keystrokes, and most Web buyers already have established
PayPal accounts” - Sucharita Mulpuru, VP & Principal Analyst, Forrester Research
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Allows for Ease of Use and Flexibility. UI Adjusted for
mobile user needs
LOGIN
REVIEW
Expands to list
purchase details
Expands to change
funding source
Expands to change
shipping address
Log In using email and
password or phone and pin
Login
Review
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ADDING PAYPAL MOBILE EXPRESS CHECKOUT
Small integration effort required
Available now for iPhone/iPad/Android/Blackberry;
other major devices soon
Leverage the Existing Express Checkout API
•
•
Same functionality as on the web, optimized for mobile devices
Simply change the value of a few parameters to account for the
mobile flow
Integrate PayPal’s Mobile Checkout Flows
•
•
PayPal will help you build the optimal mobile user experience
New buttons & graphics are designed for the mobile user interface
Avoid Changes to Backend Processing
•
•
PayPal Mobile
PayPal Mobile
No changes are needed if PayPal EC is already integrated on your
traditional website
Auth/Capture, Refunds, Disputes, Reporting, and Reconciliation
information transfers seamlessly to your mobile site!
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A Sampling Of our live mobile Retailers
Digital Goods/Intangibles
Physical Goods
..and more
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MERCHANT SCREENSHOTS
Mobile Checkout Button Drives Conversion
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And PayPal is at the center, satisfying consumers no
matter HOW or WHERE THEY shop with shopping and
checkout solutions across all channels and devices
In-store
Local
Web
Shopping Sites
Mobile/Tablets
ubiquitous
digital wallet
Social
f
Text
msn
ms
n
Enabling Your Move into Channels That Extend
Your Shopping Aisles
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What is Driving Mobile Behavior?
Ways You Currently Use Your Mobile Device to Shop
78%
Are bored and are looking to pass the time
72%
Want to check product reviews
Are in a store and you want to check prices
65%
See an item that interests you on the web
65%
See an item that interests you in a store
63%
Get an email from a familiar retailer
63%
Just want to check and see the newest or
latest products
Are in a store and want to check product
features
60%
59%
55%
See an item that interests you in a magazine
Need to purchase a gift for someone
51%
Are alerted about a sale on an item or a
price change
See an item that will only be available for a
limited time
51%
47%
46%
Are trying to win an online auction
43%
When an item first goes on sale
None of these
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What happens when mobile sites go bad?
Build the right user experience for your customers
Harris Interactive Survey of Mobile buyers (commissioned by Tealeaf):
http://www.mobilecommercedaily.com/2011/03/29/failed-mobile-transactions-drive-consumers-to-competitors-survey
High Mobile Expectations:
•
80% expect the mobile experience to be at least as good as in-store shopping; 85% expect it to
be at least as good as using a traditional PC
Risk of Losing Customers:
•
63% would be less likely to buy from the same company via other channels if they had a problem
conducting a mobile transaction
•
84% of consumers who have conducted a mobile transaction in the past year have experienced
problems (e.g. difficulty navigating, unable to complete order)
Mounting Frustration:
•
Mobile users say they find mobile transaction problems more frustrating than going to the DMV
or being stuck in traffic
"PayPal's innovations within Mobile Express Checkout emphasize speed (2-click
checkout) / simplicity (in-context payments) / and user experience.”
- Scott Devitt, Executive Director, Morgan Stanley
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M-commerce set to explode
Remote commerce
• Portion of $700B+ ecommerce migrating to
mcommerce
• eBay mobile $2B+ sales in 2010
• U.S. m-commerce sales doubled in 2010 to
$3.4bn (2% of US ecommerce)
• Mcommerce expected to grow to 15% by 2015
• Key successful use cases:
• Ticketing
• Daily deals
• Time/location sensitive sales
Online2offline
• Mobile blurring the lines between online
and offline
• Mobile driving store traffic with
deals/groupon
• Estimated $1T opportunity
Mobile key enabler
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