How Sephora Views the Future of Mobile Retail. Mobile FirstLook: Strategy 2013
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1 How Sephora Views the Future of Mobile Retail Mobile FirstLook: Strategy 2013
2 Sephora The World s Largest Retailer of Fragrances & Beauty Sephora.com is the #1 Prestige Beauty Store in the world 2
3 Sephora The World s Largest Retailer of Fragrances & Beauty Approved Store(s) Images Over 300 stores in North America and over 1,300 stores worldwide 3
4 Sephora The World s Largest Retailer of Fragrances & Beauty m.sephora.com Sephora to Go for iphone Full shopping & Beauty Insider for all devices For our most dedicated customers product scan & Passbook integration 4
5 Sephora The World s Largest Retailer of Fragrances & Beauty Sephora for ipad Shop & explore content like: The Sephora Glossy, Video & Social Media 5
6 Sephora Shoppers are Mobile Shoppers Meet a Few 6
7 SEPHORA S FOCUS ON MOBILE 7
8 Sephora s Focus on Mobile it s what our customers want & how they want to shop with us. Typical Open Device Sephora.com Traffic Mobile PC Mobil e PC Over +50% of Sephora s are opened on mobile or tablet devices 1/3 of all Sephora.com traffic is from mobile & tablet devices 8
9 Sephora s Focus on Mobile Women have always been early adopters of technology, especially when it is social and relevant to their everyday lives Sephora has the advantage of being able to test new capabilities & move quickly because are customers are willing to jump with us 9
10 Sephora s Focus on Mobile Don t think of apps, mobile & tablet. Think of the customer experience & what supports that experience. Typical Sephora Customer Experiences Researching a Product Inspired to Shop 10
11 Focus on Mobile Researching a Product Your phone is likely always at your side, so it s the natural choice for many shoppers when researching before, during & after purchase. This is Katie She wants to find out more about BB Creams, which she s read about in several magazines. She uses Sephora to Go for iphone to search for BB s and saves one to her Shopping List to come back to when she s instore next. 11
12 Focus on Mobile Researching a Product So many to choose from! Katie Scans the Barcode of several products to read reviews & select her favorite. Happy with her decision, Katie uses her Beauty Insider card in Passbook at the Cash Wrap to be recognized & earn reward points with her purchase. 12
13 Focus on Mobile Researching a Product Katie loves her new BB Cream! - After a few weeks, Katie looks up her Past Purchases in Sephora to Go for iphone & links to the Product Details and Ratings & Reviews to read more. And she decided to write her own 5-Star review! # 60% of facial skin cream consumers do online research on the product after purchase. If they enjoy the product, they ll advocate it to others. Social Commerce Today, Speed Summary HBR on Social Media & New Rules of Branding December
14 Focus on Mobile Inspired to Shop Customers don t view Mobile, Tablet, Web & Stores separately - they are just tools to shop when & where she wants. This is Honore she wants to find a Sapphire look for Spring after reading that Sapphire is the Color of the Year on The Sephora Glossy, Sephora s Tumblr. 14
15 Focus on Mobile Inspired to Shop Purchase In the end, she purchased online with her crosschannel basket. Consideration Awareness Honore reads about Sapphire, the Color of the Year on Tumblr Consideration Social Media informs her thought process & a quick stop in store on the way home lets her see & try on the product. Awareness & Inspiration She browses products on m.sephora.com & saves to her basket 15
16 Focus on Mobile Inspired to Shop Honore s purchase decision is anything but linear, moving in and out of devices based on what s most convenient for her at the time. Beauty Insider works as the glue so she can move between channels seamlessly. # 85% of people shop for a gift on one device and then make their purchase on another. To do so: 45% will leave an item in the virtual shopping cart 45% will send themselves an or link, and 32% will conduct a new search on a new device. Google, Holiday Consumer Intentions 2012 November
17 MOBILE STRATEGY FOR THE YEAR AHEAD 17
18 Mobile Strategy for the Year Ahead Sephora s priority for 2013 is to continue to evolve our mobile capabilities to enhance our client experience, areas like: Passbook Mobile gifts Our apps New Innovations 18
19 Mobile Strategy for the Year Ahead Holiday 2012 featured many hallmarks of this strategy Holiday Results Mobile Gifts App Mobile Push Messaging Pioneering with Endless Aisle 19
20 Mobile Strategy Holiday Results According At Sephora: to Google: WWD: This Sephora year customers online The and more were offline shopping widespread - and use of shopping converting experiences on broadband the go are this Internet more December connections, seamless Mobile than orders combined ever up167% before with - to across smartphones last year and pricing, Traffic functionality, up tablets, 75% and is allowing shopping to take promotions - making place earlier this the than first ever even on "Nonline" holiday Thanksgiving, season. days before Cyber - Google - Holiday Consumer Intentions 2012, November Monday. - WWD - Digital s Big Trends: Mobile, Localization, Jan 7, = 20
21 Mobile Strategy Mobile Gifts egift Cards make the perfect gift for every Sephora fan Multitude Never egift Received forget Cards of faceplates a available plastic an egift? gift &cross custom card at home One greeting -channel step with Plastic to tofor add fitinstant alltoto occasions Passbook Passbook gifting 21
22 Mobile Strategy App Push Messaging Push Messaging to Sephora for iphone users alerted Sephora customers about Holiday shopping events & product launches Announcing Alerting Reminders users for Sale to last on new minute Sale mobile gift annuall ideas event features 22
23 Mobile Strategy Piloting Endless Aisle Endless Aisle in stores: 11 perfect gifts for hassle-free holiday gifting Scan QR with Sephora to Go for iphone to purchase Ship directly to recipient 23
24 MOBILE WALLETS 24
25 Mobile Wallets Industry & Buzz 25
26 Mobile Wallets Sephora + Passbook From a gift card standpoint it s very seamless, Julie Bornstein, senior vice president of Sephora Digital, told Wired. You can send a gift card to a friend, they accept it, hit a link to add to their Passbook, and then they have their gift card right there. Customers also can scan a code on their conventional gift cards so they can add them to Passbook. - Wired, Apple s Passbook Is a Surprise Success for Developers, 12/20/
27 Mobile Wallet Sephora s + Passbook No more hunting through your wallet for gift cards, coupons, passes, or tickets. Passbook keeps everything organized and handy. Apple ios 6 First to market on 9/19 with ios 6 launch Sephora customers can import two types of passes: o o Beauty Insider card Sephora gift card 27
28 Mobile Wallet Beauty Insider in Passbook For Sephora Customers: Beauty Insider card in Passbook displays her current Beauty Insider points and makes earning & redeeming fast & easy 1) Download Sephora to Go 2) Sign In to Beauty Insider 3) Add to Passbook Access anytime 28
29 Mobile Wallet Gift Card in Passbook For Sephora Customers: Sephora Gift Card in Passbook keeps your gift cards handy so you never forget a gift card again. Easily store all of your gift cards, egifts and Plastic cards can be imported. Handy, real-time balance updates. 29
30 Mobile Wallet - Beauty Insider in Passbook o o Passbook adoption +1.1M app downloads since Passbook launch Major impact to itunes rankings due to featured placements for Passbook apps o +400K Beauty Insider Passes created in first 90 days o Significant increase in Beauty Insiders signing up via Mobile app Mobile Payments are still in very early days. Ultimately, Customers must realize a benefit from any new technology, then they will adopt & define who the front runners will be.
31 MOBILE AS THE ULTIMATE PERSONAL SHOPPER 31
32 Mobile as Personal Shopper Regardless of what retailers do, your customers have smartphones & they are using them in store 32
33 Mobile Personal Shopper Smart phones will become more important in customer decision process L2 s Predictions for 2013 hypothesize that Mobile will become more important than sales associates in store 33
34 Mobile Personal Shopper Mobile + Local Sephora is making Mobile the Ultimate Personal Shopper in stores by addressing 3 common challenges: 1. Can t find what s New in store 2. Store employees don t know me 3. Want to research while I shop 34
35 Mobile Personal Shopper Mobile + Local What s New? Physical stores can t possibly re-arrange daily to feature all new products What s Sephora New Hot Now Easily Sephora s sort picks new products on the best to view new and the latest classic products byfor category the season. & see store -availability The Ultimate Personal Shopper 35
36 Mobile Personal Shopper Mobile + Local Don t you know me? Using rich CRM data real-time, in store is cumbersome & typically unrealistic The Ultimate Personal Shopper Purchase Shopping History List & Basket Easily Beauty view Insider all of provides my pasthe purchases glue to keep Lists & Basket items across all channels for What easy shade reference do I in wear store in & my favorite online foundation? 36
37 Mobile Personal Shopper Mobile + Local The Ultimate Personal Shopper This vs. that? Customers want to compare products, read ratings & reviews and research in store with the same tools they use at home. Scan and Ratings & Reviews Scan any barcode in store to view ratings & reviews, product information Which is better - this eye cream is $130; this one is $30? 37
38 Check it out yourself. See how Sephora mobile works for You m.sephora.com Sephora to Go for iphone Sephora for ipad 38
39 How Sephora Views the Future of Mobile Retail It s still the Wild West of Mobile and we Retailers, Customers, Developers all have a lot to figure out in the next few years. It should be a great adventure! Thank you! 39
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