Riding the Digital Wave

With more than half of U.S. consumers expected to own a smartphone by the end of 2011, leading retail chains are working furiously to add mobile communication capabilities to their marketing arsenals.In September, Minneapolis-based Best Buy made QR codes a standard component of its P-O-P program nationally, enhancing the in-store experience by providing access to its online content library. The retailer is placing codes on the numerous "fact tags" it uses to outline product attributes and other key selling information. While the tactic is employed primarily for big-ticket products such as appliances and personal electronics, Best Buy is also using it with digital photo frames, light bulbs and other smaller items.Shoppers scan the codes via Best Buy's own iPhone app or other code readers to access a growing library of product details, customer reviews and SKU-specific offers. They also can search to find nearby stores that have the item in stock or order it online. Future functionality may include such content as videos about the products, according to reports.Best Buy upgraded its iPhone app to include code-scanning functionality last spring. Until September, the chain had only used QR codes in circulars and other marketing materials, and mainly as a marketing novelty: The cover of its May 23 circular, for instance, carried a code that let iPhone users view a trailer for Nintendo of America's just-released "Super Mario Galaxy 2" video game.Although Best Buy is the first U.S. retailer to broadly deploy QR codes in stores, the tactic won't be unique for long. According to reports in September, apparel chain The Gap was already deploying codes and Southern supermarket chain Winn-Dixie had launched a test.In August, Best Buy began partnering with Shopkick, a new location-based marketing application that lets users earn points for visiting stores (to be redeemed later for rewards) and, once inside, receive targeted offers from the retailer. First launched in a few key markets, the service was expected to be operational in 257 stores by Oct. 1. Best Buy called the Shopkick program -- which also boasts Macy's and The Sports Authority as charter partners -- an "experiment" to determine consumer receptivity to receiving and redeeming offers via smartphones."The convergence of location technology and rewards to personalize an experience with Best Buy is at the heart of our vision of the connected world, and we will work with services like Shopkick that can add value [for] our customers," said Richard Rommel, senior vice president of Best Buy's new business customer solutions group.It's not surprising to find the nation's leading consumer electronics chain at the forefront of mobile marketing activity. But one of the more interesting aspects of the current digital marketing wave is the number of less-likely retailers that have emerged as "digital pioneers." Among other initiatives unveiled recently: Supermarket operator Ahold USA's Stop & Shop and Giant chains plan to launch an iPhone app by the end of 2010, Bob Anderson, Stop & Shop's director of customer relationship marketing, announced last month at the Shopper Marketing Expo in Chicago. The app initially will let iPhone users (who also must be store loyalty cardholders) view circulars and create shopping lists, but soon after will be upgraded to deliver the functionality that the chains currently provide in stores through handheld devices. Shoppers thus will be able to use their iPhones to scan UPC codes as they travel the store and complete their purchase with one scan at checkout; they'll also receive targeted promotional offers based on their unique purchase history, location within the store or recent scan. The chains also will offer "scanner sleds" -- adapters that slip over the phones -- to enable additional functionality, including the ability to scan credit, debit or store loyalty cards to pay for purchases through the device.As reported last month, Michigan-based Meijer launched a four-store test of "Find-it," an app for iPhone and Android devices that helps shoppers locate approximately 100,000 items -- along with restrooms, service counters and their cars. The app also alerts users to weekly specials and product promotions.OfficeMax introduced an app for iPhones that lets users view weekly offers, shop the chain's website and locate stores. Members of the chain's MaxPerks loyalty program can use it to access their accounts and redeem rewards at checkout. Publix launched a mobile website providing access to promotions from weekly ads and store-specific information. Users can search for Publix locations near tourist attractions (such as Walt Disney World) or find stores offering specific services.ShopRite unveiled an Android-compatible version of its "Weekly Specials" app, which originally launched for the iPhone in 2009 (making the supermarket co-operative one of the first retailers to adopt the technology). Users can view the weekly circular, browse products and create shopping lists organized by category that display current prices. The app can synchronize with shopping lists on the retailer's website and even be controlled by voice commands. Mobile marketing, especially location-based messaging, "is where the future is," according to Mike Boylson, chief marketing officer for JCPenney, which among other recent initiatives is rolling out kiosks to give shoppers more purchase options in-store. "But you have to be relevant enough so that they want to engage with your brand," he warned.

Riding the Digital Wave

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