The Mobile Transformation

Transcription

1 The Mobile Transformation A consumer driven mobile strategy utilizing our Power-up Rewards Loyalty Program Jason Allen Vice President, Multichannel

2 Agenda 1. Who is GameStop? 2. Mobile Strategy Why? 3. GameStop - The Path to Mobile 4. Results It s working 5. Key Takeaways

3 4,516 Stores 333 Stores CANADA 1,434 Stores** EUROPE UNITED STATES AUSTRALIA 415 Stores More than 6,600 video game and technology brand stores. Leader in global video game category. Operations in 14 Countries 40,000+ Employees in 15 countries Fortune 500 and S&P 500 company.

4 GameStop is a $9B Specialty Retailer Video Games Publishing Digital/Mobile Gaming Wireless/ Technology Top 10 Mobile Publisher Fastest Growing AT&T Wireless Reseller AT&T National Dealer #1 Market Share #1 Digital Magazine $800M Digital Business Largest Authorized Reseller

5 GameStop is a family of specialty retailers that makes your favorite technologies affordable and simple

6 Entering Large and Attractive New Markets Apple Eco $50B - $55B +5-10% Wireless $185B +3-5% Physical Gaming $14.7B (4-8%) $7.8B % Digital Gaming $2.3B % Re-commerce Source: public filings; GameStop market model and internal estimates; U.S. only

7 Mobile Strategy Why is it important? Maximize engagement, revenue, and loyalty by offering customers choice and convenience. 1. Consumer engagement is evolving. Customers have more choices on when, where, and how they engage and transact. Are we adapting to meet consumer needs in both our existing and new businesses? 2. Identify & prioritize strategic opportunities. Customers are already telling us what they want, we just have to listen. 3. A unified vision. Serves as a catalyst to drive change and aligns organizations, people, and process around a broader strategy. Breaks down walls & silos, and supports consistency in delivering brand value across channels. 4. Create a customer-centric strategy. Places the customer at the center of your strategy while still focusing on driving growth.

8 GameStop The Path to Mobile. While the transition to a multichannel focused business model can be complex, GameStop found that three areas were instrumental in evolving our strategy. Customer Data & Analytics Organizational Acceptance & Alignment Delivering Growth & Value

9 Customer Data & Analytics Pre-2010 Fall 2010 Today GameStop lacked customer data and analytics. Insights were guess-work. 1. No data on store customers. We knew how many copies were sold of X product. 2. Limited data for online customers GameStop Launches Power-up Rewards Loyalty Program GameStop has a wealth of customer data on our most valuable customers. 1. We know where and when members are engaging and transacting across channels. 2. We understand purchase patterns and influences. 3. Research suggested heavy Multichannel activity 3. We can target and deliver personalized content.

10 Customer Data & Analytics GameStop Loyalty Programs 40M+ 71% Loyalty Members Worldwide That account for.. of our Business

11 Customer Data & Analytics Insight: Our Customer is already engaging from Mobile Devices Online is 3% of Sales But 60% of Customers Go There to Engage 60% 26% of online Visitors (Non-buyers) Buy in Store Within 48 Hours 3% 26% Buy Buy Visit

12 Customer Data & Analytics Additional insights indicated our customers engaged heavily in the mobile space: 40%+ of our online traffic was coming from Mobile devices and Growing GameStop Mobile App users. Spend More 81% Trade More 53% Buy More Pre-owned 79%.compared to our average Power-Up Rewards Pro Members

13 Customer Data & Analytics How many people do we have thinking about and working on mobile full time?

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15 Emerging Insight Less than 5% of customers visiting from a phone were purchasing from a mobile device.

16 Customer Data & Analytics If customers are not purchasing through mobile, then what are they doing????

17 Customer Data & Analytics So how are customers engaging with us through mobile devices? Product Research Search & Discovery (40-65%) Store Info Find Stores and Product (10-20%) Engage w/pur Shop PUR Catalog (10-20%)

18 Customer Data & Analytics Mobile Influenced In-Store Sales Through Power-Up Rewards, we can better understand how customers engage with our online channels to drive in-store revenue. Influenced Revenue When a customer engages online with GameStop, then makes a relevant purchase, trade and/or Pre-order in-store within 72 hours of their online visit.

19 Organizational Acceptance & Alignment Mobile strategies sound great, but there are inherent challenges to aligning around the vision. 1. Aligning Leadership How do you get leaders to think about the broader strategy and where their priorities and focuses fit? 2. Goals & Expectations Management might set goals and expectations that motivate and drive activity in a silo. How do you motivate leaders to make decisions that deliver overall company value? 3. Defining a Mobile Strategy For most organizations, it s a few buzz words that lacks clear understanding broadly across an organization. How do you explain what it is, and the value it provides? How do you change thought paradigms and align an organization behind a vision for Mobile marketing? by showing the value of a Mobile strategy

20 Organizational Acceptance & Alignment We began thinking outside the box on how we could expose the value of the Mobile channel to GameStop 1. Customer Data Looking at our Power-Up Member activity post an online visit, we found that many transacted in a store within 5 days of their online visit through a mobile device. More compelling, is that of those transacted, most were occurring the same day or within 48 hours of the visit. 2. Emerging Insight Engagement in our mobile (and other) channels is leading to in-store purchases that far exceeded our direct mobile transactions. 3. Mobile-Influenced Sales Created a multichannel language that was broadly understood and accepted. For GameStop, this sweet spot was activity on a mobile device that influenced a store transaction within 72 hours of that activity.

21 Organizational Acceptance & Alignment For every $1 of direct sales online, our mobile channels are influencing 10X That amount in Stores

22 Organizational Acceptance & Alignment We had the data and the organizations attention, how do we carry that momentum through to delivery? Based on these new insights, we began shifting our online strategy to a multichannel strategy. 1. Overall Conversion Take the focus off of online conversation, and turn our attention to overall conversation, regardless of channel. 2. Broader Thinking & Goals Communicate and support a vision that encourages teams to think more broadly about revenue generation and relieve pressure from online only P&Ls, etc. How can we more broadly maximize revenue growth while delivering value across all our channels through consistent experiences.

23 Delivering Growth & Value Multichannel thinking drove a fundamental shift in our strategic focus. Old Thinking Very Channel-Focused Approach 1. How are we driving growth in Stores? 2. Are we maximizing revenue on GameStop.com? 3. What is our online conversion? New Thinking Strategic Focus on Core Competencies Channel Agnostic 1. How are we leveraging our Buy/Sell/Trade model? 2. What value are we delivering our consumers through Power-Up Rewards? 3. How do we support and drive our emerging businesses?

24 Delivering Growth & Value Practical examples of delivering on a Mobile Strategy: 1. Mobile Messaging Promoting messages, services and initiatives online that can only be redeemed in stores. 2. Technology Prioritization Less focus on cart/checkout, more on Search, Product Info, Store Locator, etc. 3. Personalization Strong focus on delivering the right content to the right customer, at the right time. 4. Resource Application 60%+ of our online users enter the GameStop ecosystem through mobile channels. Do our efforts and priorities align with where the customer is engaging? 5. Retail Integration Emphasis on cross-channel engagement and transaction capabilities. (Web-in-Store & Pick-up at Store.)

25 Delivering Growth & Value GameStop launched a new Mobile App in July, How did we prioritize the work?

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27 Delivering Growth & Value We had learned and yielded to common sense. Based on customer behavior and feedback, it was clear what app experiences our customers were most passionate about. More importantly, customers were not looking for everything, they just wanted a really good experience with the features they use the most. 1.) Allow me to look up the value of my old games. 2.) Simplify tracking my pre-orders and reservations. 3.) I want to use my phone to hold a product and pick it up in store, but it s too complicated. 4.) Make it easy to find the products I m looking for.

28 Results It s Working. New Mobile App Performance (6 months prior compared to 6 months post launch) Unique Users 5M Active User Growth 68% Traffic Growth 138% The new app represents 29.6% of total multichannel traffic. This is up from 9.4% the previous year.

29 Delivering Growth & Value Did we fulfill our promise to customers? (6 months prior compared to 6 months post launch influence based on 72 hours within visit) 1.) Allow me to look up the value of my old games. 2.) Simplify tracking my preorders and reservations. 3.) I want to use my phone to hold a product and pick it up in store, but it s too complicated. 4.) Make it easy to find the products I m looking for. 180% 460% 5X 415% increase of influenced in-store trades increase of influenced in-store trades increase in Pick-up at Store requests. Increase in direct revenue growth.

30 Looking Ahead. Ready to tackle the larger boulder, mobile web. Total GameStop Traffic Traffic from mobile devices From Computers To App To Mobile Web From Mobile Devices

31 Looking Ahead More Broadly.. Best of GameStop Bring the best GameStop s unique value proposition onto consumer mobile devices New/Emerging Businesses Keep mobile focused as a priority to drive new business opportunities. CRM/Personalization Ensure consumers who make the very important choice of keeping GameStop close, through their mobile device, receive the most relevant content and communication as possible. MAXIMIZE ENGAGEMENT, REVENUE, AND LOYALTY BY OFFERING CUSTOMERS CHOICE AND CONVENIENCE.

32 How are you thinking about your mobile strategies????

33 Mindset 1 - Business What s right for the business Success Often excludes customers and provides short term gains with long-term shortfalls. Easy to define opportunities.

34 Mindset 2 Customer What s right for the customer Success Feels noble, but pragmatically businesses need to generate income to then fuel the services and products it provides. Also easy to define opportunities.

35 Mindset 3 Common Sense What s right for the customer + What s right for the business Success The sweet spot. Requires discipline and is more difficult to define opportunities that accomplish both.

36 The Key Takeaways Understand your Customers Understand your Organization Deliver Results

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38 Thank You.