REDEFINING THE SHOPPING

CENTER EXPERIENCE
Branded Mobile Apps Keep Customers Engaged
and Coming Back
 Managing your shopping center portfolio requires
a delicate balancing act involving countless
financial, social and technological variables. When
a major threat surfaces, you must take decisive
action to protect the millions of dollars in capital
and future earnings that are at risk.
The most significant threat facing mall REITs
today—and for the near future—is eCommerce.
During the past few years, shopping center
owners responded to the rapid growth of online
retailing by experimenting with mobile apps
as a way of retaining shoppers. The first- and
second-generation apps offered very little value
to shoppers. By merely featuring a map of the
shopping center, a store directory, and possibly a
few special discounts, those apps failed to address
the evolving needs of shoppers who take their
mobile device with them when they shop (and
today, that’s practically every shopper).
Fortunately, the experimentation phase is over.
A new generation of shopping center apps has
arrived. Blending the best features of earlier
iterations with recent advancements in mobile
technology, today’s app has matured into a
robust tool that mall REITs can use to redefine
the shopping center experience. Instead of falling
victim to online shopping, each of your shopping
2 PHUNWARE
centers can leverage customized mobile apps to
attract more shoppers and keep them engaged.
Stay ahead of your competition by investing in a
customizable, branded mobile app that delivers on
your promise of an exclusive lifestyle.
Major Threat:
Dramatic Growth
in Online Retail
Even though online sales represent only a fraction
of all retail sales, the total dollar value of online
purchases is growing rapidly each year. Mall REITs
have a valid reason to be concerned.
In 2004, online sales accounted for only 2.0
percent of total retail sales compared to 6.6
percent for the third quarter of 2014.1 All indicators
point towards continued rapid growth.
Analysts project that the ongoing penetration of
mobile devices will cause online sales to grow at
a consistent rate of 9.5 percent to account for as
much as 11 percent of the $414 billion total retail
sales by 2018. 2
©2009 - 2015 PHUNWARE INC.
 Brushing aside the hype surrounding the demise of
shopping centers, a more relevant question remains: Are
Major Exaggeration: your shopping centers meeting the needs of shoppers?

The Demise of the Mall

In 2014, The New Yorker brazenly posed the
question “Are Malls Over?” In examining whether
shopping centers are becoming obsolete as a result
of the online retail boom, the article described
how countless malls across the country have been
abandoned, demolished or converted into community
colleges, corporate headquarters or even churches.3

Notwithstanding this gloomy forecast, Green Street

Advisors, the long-standing industry leader in REIT
research, projects solid years ahead for shopping
centers. Their latest Mall Outlook Report clearly
identifies eCommerce as the most important risk
factor facing mall REITs.

Casualties aside, the drag effect of eCommerce on

the sales growth of brick-and-mortar retailers is likely
to stay well above 100 basis points annually, even as
online sales growth continues on its current path.4
To be among the winners in the eCommerce
age, this optimistic outlook depends upon your
REIT’s ability to maintain solid fundamentals
relating to factors such as occupancy rates and
lease spreads. It will also help to stay mindful
that your shopping centers must continue to
evolve with the demands of shoppers.
Mobile’s Economic
Impact on Shopping
Behavior
The latest research from Deloitte makes it clear
that the number of shoppers who depend on
their smartphones and other digital devices while
in stores is growing far faster than previously
anticipated. In 2013, mobile devices influenced
36 percent of in-store retail sales. For 2014, that
influence will likely reach 50 percent. 5

The smartphone is now the single most important

tool in the hands of shoppers. Fortunately, for
brick-and-mortar retailers, smartphones are
delivering a significant positive economic impact.

3 PHUNWARE ©2009 - 2015 PHUNWARE INC.

 Deloitte found that 69 percent of shoppers use a digital
device before shopping, 36 percent use one while
shopping and 14 percent use one after shopping.6
Most importantly, Deloitte’s research reveals that
mobile technology is organically delivering exactly
what shopping centers need:
TRAFFIC
84 percent of shoppers used a mobile device for
shopping-related activities before or during their
most recent trip to a store.
CONVERSION
Shoppers who use a mobile device while shopping
convert at a 40 percent higher rate.
ORDER SIZE
22 percent of shoppers spend more when using
their mobile device, and just over half spend at
least 25 percent more than they had intended.
ENGAGEMENT AND LOYALTY
75 percent of shoppers said product information
found on social channels influenced their shopping
behavior and enhanced brand loyalty.
Shoppers naturally rely on mobile devices, and
this current level of economic impact is just the
beginning. Remember that because most shopping
center apps in use today function as static maps
and store directories, they are not even close to
realizing their full potential. When implemented
well, a mobile app will meet the technology needs
of shoppers while also driving in-store purchases.
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It’s Time for Shopping
Centers to Go All-in
on Mobile Apps
Shoppers love their smartphones, and they also
appreciate it when shopping centers offer mobile
apps. More than half of all shoppers (53 percent) like
stores or shopping centers that have apps to make
shopping easier. That figure rises to 72 percent for
Millennials 60 percent for Generation X.7
Based on a review of actual usage, here are the most
accessed areas of shopping center apps:
• Shopping center map
• Store directory
• General Shopping center information
• Events
• Offers
• Parking
• Movie times
You’ll notice that just a few basic features are enough to
fuel shopper interest. Shopping center apps can offer
much more, and completely redefine the shopping
experience. Imagine the excitement and engagement
you can generate by offering shoppers a full-featured,
customized app for your property.
©2009 - 2015 PHUNWARE INC.

Essential Features for
Your Mobile App
If you’re ready to pull the trigger on mobile, you
can choose one of the off-the-shelf mobile apps
for shopping centers—but you will be wasting your
investment and doing your customers a disservice.
Those cookie-cutter apps will disappoint shoppers
with shallow features, represent your brand poorly
and cost you more to maintain over time than
you budgeted.
To provide the most value—for your shoppers and
your shopping centers—here are a few essential
features your mobile app should include:
PUSH ALERTS AND NOTIFICATIONS
Mobile is an intimate personal experience for
shoppers. Your app must be able to address
their specific desires. One way to do this is to
utilize push notifications to re-engage users and
bring them back into the app. This is a critical
component to nurturing long-term relationships
with your user base.
Active users can receive notifications about app
features, shopping center information and special
events and promotions. If they have set up a
profile, the app can track their usage and reward
their activity. The app can also remind inactive
users to return to the app.
LOCATION-ENABLED MARKETING
As shoppers enter or leave a specified area or walk
near a certain product or department, strategically
placed beacons can deliver hyper-local alerts to
their mobile device with promotions or purchase
recommendations. When fully integrated with Apple’s
iBeacon Bluetooth Low Energy (BLE) specifications,
your app can engage customers anywhere.
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INTERACTIVE PRODUCT CATALOG
Using an interactive product catalog, users can
search, swipe, pinch and zoom their way through the
inventory of any store in your shopping center. They
can also access pricing and availability details.
BLUE DOT LOCATION AND
TURN-BY-TURN DIRECTIONS
Instead of relying on a complicated and static map
to help them navigate the shopping center, your
shoppers can use your app to pinpoint their exact
location with a blue dot and get real-time, turn-by-
turn navigation to their destination.
WHAT IS BLUE DOT?
Blue dot is the technology you see in your
smartphone’s mapping apps, where your
location is represented by a blue dot that
moves as you move.
Voice Activation
Those who actively use their mobile device while
shopping appreciate voice activation that gives
them a “fingers-free” app experience. “Where’s the
restroom?” is the most common question users
ask. Not only will they receive an answer based on
their specific location, they’ll also have access to
turn-by-turn directions to the nearest restroom.
Multilingual Capabilities
It’s becoming increasingly important to reach
shoppers who are most comfortable reading and
speaking a language other than English. To be truly
multilingual, your app must also adapt to details
such as vertical characters in Asian languages and
the right-to-left orientation of Arabic characters.
©2009 - 2015 PHUNWARE INC.
 CUSTOMIZABLE DESIGN
Each of the shopping centers in your portfolio has its
own unique brand image and personality that you
have invested in and cultivated over time. Shopping
centers that opt for apps with cookie-cutter designs
are harming their brand. You need an app that is fully
customizable to your specific design guidelines so
that you can communicate your brand image with
every shopper interaction.
DYNAMIC CONTENT UPDATES
Design customization is essential, but you also
need to be able to add custom content and modify
menu and navigation items at any time. You need
an app that is powered by a centralized content
management engine.
that we haven’t begun to imagine. Moreover, it
must perform reliably across devices without
compromising the user experience.
COST-EFFECTIVE SUPPORT AND
MAINTENANCE PLAN
The wrong app developer may invoice you for
every modification, no matter how small. To keep
your app budget under control, be sure to choose
a developer that gives you the ability to make
your own content updates without the help of
your IT department. The developer should also
offer a support and maintenance plan that covers
modifications and version updates.

When you have complete control over your app Phunware Is Redefining
through a management dashboard, you can keep
your content fresh by adding information about store the Shopping Center
attractions, special events, new points of interest and
holiday hours. Most importantly, all of your changes
Experience
are delivered in real time to shoppers over the air
without requiring them to update the app—and
Shopping centers have survived a long list of
without you having to wait on App Store approval.
challenges since their birth in the 1950s, including
fluctuating consumer spending, economic recessions
GAME-CHANGING BACK-OFFICE
and the failure of major retailers. If shopping centers
INTEGRATION AND ANALYTICS
are to continue to thrive in the age of eCommerce,
Mobile apps aren’t just powerful tools for shoppers.
they must leverage the power of mobile technology.
They give you unparalleled insight into real-time
shopper behavior. Wouldn’t you like to have access
Phunware builds customized mobile apps for on a
to information such as detailed demographic data,
full-stack Multiscreen as a Service (MaaS) platform.
contact information, the most-used app features
Fully managed and flexible from start to finish,
and which stores in your shopping centers are the
Phunware’s turn-key shopping center app solution
most popular?
enables fast content deployment and updates, so
you can focus on shopper engagement.
A comprehensive analytics platform delivers valuable
shopper behavior and engagement data that will
help you fine-tune your shopping center operations.

FUTURE-PROOF TECHNOLOGY
Mobile technology is changing rapidly, so your
app needs to be future-proof. It must be built on
a platform capable of adapting to new operating
systems, devices, display sizes and technology

6 PHUNWARE ©2009 - 2015 PHUNWARE INC.

 ABOUT PHUNWARE
Phunware is the pioneer of Multiscreen as a Service™
(MaaS), the only fully integrated cloud-based services
platform that enables brands to engage, manage and
monetize their anytime / anywhere users.
A back-to-back Top 100 award winner on the Inc.
500 list of America’s Fastest Growing Companies,
36th on the Forbes list of America’s Most Promising
Companies, and 4th on the 2014 Deloitte Technology
Fast 500, Phunware is the application developer
choice of many of the world’s leading brands.
From sports and entertainment to healthcare and
retail, Phunware has introduced category-defining
experiences that challenge the outer limits of the
most advanced connected devices for the world’s
most respected brands and developed next-
generation technologies that transform how the
world uses these connected devices.
Phunware’s goal is to provide Everything You Need
to Succeed on Mobile, regardless of where you
are in the mobile application life cycle. Phunware’s
full-stack platform, pre-packaged vertical solutions
and custom services empower companies to plan,
build, grow and service their mobile experiences.

DELIVERING VALUE
THROUGHOUT THE
PLAN MOBILE APPLICATION BUILD
Whether you are looking to explore
new product offerings or to supercharge
LIFE CYCLE Accelerate time to market with
Phunware vertical solutions or have
your existing mobile experience, our our expert mobile team build your
experts can design your solution. custom app.

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Extend, enrich and manage your
app's life cycle with ongoing support
from Phunware. Stay ahead of new
devices, screen sizes, OS updates
and app store changes.
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Our digital advertising team will help
make sure your app is discovered and
installed by the right audience.
Everything we do is underpinned by our full-stack
multiscreen platform, which includes:

Location-based services Content management

Alerts and notifications App monetization
Location marketing Analytics and business
automation intelligence

1 U.S. Census Bureau, U.S. Ecommerce Sales as Percent of Retail

Sales Historical Data, 2015.
2 Forrester Research, U.S. Ecommerce Forecast: 2013 to 2018,
EVERYTHING YOU NEED TO May 2014.
SUCCEED ON MOBILE™ 3 The New Yorker, Are Malls Over?, March 2014.
4 Green Street Advisors, Shopping center Outlook Report,
www.phunware.com January 2014.
5 Deloitte, The New Digital Divide: Digital’s Influence on in-Store
Sales, 2014.
6 Deloitte, The New Digital Divide: Digital’s Influence on in-Store
Sales, 2014.
7 Russell Research, 2014 Simon Holiday Shopping Behavior Survey,
October 2014.

7 PHUNWARE ©2009 - 2015 PHUNWARE INC.