Digital Coupons: How & Why

Digital Coupons “How and Why”
Bill Catania
CEO, M-Dot Network

Questions You’ve Probably Asked
How and where do we get the coupon content?
?
How do we get paid?
How do shoppers redeem?
Where does Mobile fit in?
Who manages this?
What about our loyalty program?
How long will it take to integrate?
Is it safe, secure?
Can this work with social media?
What about my print at home coupons?
How does this work with our website?
What is my wholesaler doing?
What is our return?
Is it real time?
What about store brand/private label offers?
WHAT DON’T I KNOW….?

Digital Coupons…. The Past 10 Years
Historically, No Clear Direction
Poor Manufacturer acceptance
RESULT: Lack of offers
Poor Shopper adoption
RESULT: Lack of program usage
RESULT: Lack of coupon offers
Impassable Technology gaps
RESULT: Lengthily integration cycles
RESULT: Bad user experience
Retailers have often asked the question: How do I get value?

The WHY

Moms Turn to the Internet
“When asked about how they use technology, Moms said that the different devices they use make being a Mom easier. The devices help them get more done, manage their life and their family's lives more effectively, and stay better connected with family and friends.”
According to the study, Moms use the following technology and devices:
Computer (89%)
Internet (87%)
Mobile Device (84%)
Television (80%)
Digital Camera (77%)
CD/DVD Player (75%)
Social Networks (55%)
Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life. The study was conducted in two phases: consumer immersion blogs and online quantitative study. In Phase One, nine moms interacted in an online, secure blogging environment by uploading images, video and text for one week. In Phase Two, an online quantitative study was conducted with a sample of 3,300 females, ages 21-54, who were either currently pregnant or had one child in their household between the ages of 0-14 years.

Moms are Looking for Deals
Moms Turn to the Internet First for Information:
“For subjects other than their child's health, Moms turn to the Internet as their primary source of information:”
71% go online to find deals or discounts
71% to find recipes
62% for family activities, entertainment and travel
59% for personal health questions
56% to find arts/crafts projects
54% for holiday planning and activities
50% to find dieting information
49% for beauty/style
46% to seek answers for financial questions
42% for parenting advice
41% to answer questions on baby/pregnancy
Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.

Target: Mom
Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.

Mom’s Are Armed with Smart Phones
According the report, research shows that in Q2 of 2010, 32% of mothers owned a smartphone. That figure represents a 60% increase from Q2 2009. And, of those mothers with smartphones, 32% indicated that they visit mobile-optimized Internet sites once per week. That also represents a 60% increase from the same period in 2009.

Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report, a monthly snapshot of the mobile advertising universe issued by Millennial Media and based on data collected from the company’s third-party U.S. mobile advertising network.

The WHY
Provide your shoppers with more ways to save
Attract new shoppers that want to use coupons but won’t use paper!
Deliver targeted digital offers to your shoppers with no delay or wait time
Receive redemption data and usage as it happens
ACT on your data for the purpose of driving:
Increased trip frequency
Increased basket size
Incremental revenue during targeted day parts
Increased profit and margin mix

The HOW

Shopper View: How it Works
OR 555-555-5555
Shoppers Register via Internet at Retailer website or via Mobile enrollment via Retailer application
Coupons are Loaded to the Shopper’s
e-Wallet (Card or Phone Number)
Coupons are Redeemed at POS by entering swiping Shopper Card or entering Phone Number
Redemption data is sent to your clearinghouse for Reimbursement
Retailer and brands receive Analytics/Datain real-time

The Ecosystem: 3 Key Categories
Coupon Issuers
Coupon Clearinghouses
Point of Sale Companies

The Ecosystem: Coupon Issuers
Who Are They?
Major media properties
Mobile phone applications
What do they want?
Coupons to be displayed and clicked on from your retailer website
Coupons to be clipped on THEIR websites, redeemed at your store
What’s in it for them?
They earn revenue when shoppers click on offers
Paper “FSI” business will not last forever, they know it
What’s in it for you?
Your shoppers want deals and these companies have them
You earn revenue from “clicks”
More digital offers = Less paper offers, counting, fraud, etc.
How do they integrate?
- With your website company or selected coupon processor

The Ecosystem: Coupon Clearinghouses
Who Are They?
Traditional “paper” clearinghouses
What do they want/do?
To proactively adapt to the digital coupon era
To have your “whole” coupon business, not just paper
They provide credible audit and reimbursement for your digital coupons
They earn revenue when coupons are redeemed
They maintain market share in a digital world
What in it for you?
You can count on getting paid for redeemed digital coupons
You can trust that a 3rd party is auditing your redemption records
- With you directly or your selected coupon processor

The Ecosystem: POS Companies
Who Are They?
Developers of Point of Sale software
What do they want/do?
To support innovation and retailer desired capabilities
Drive innovation through current POS updates
Gain “utility” – one box with many “widgets”
To produce the best, most effective, POS solution on the market
What in it for you?
Seamless integration = speed to market and reliability
Leverage your investment to get more utility from the same system
Selected digital coupons processors have integrated directly with the POS
POS integration is deeper than loyalty card integration = more functionality

Evolution of Digital Coupons
Phone Analogy
=
Paper coupons
Home phones

Phone Analogy
=
Mobile v1.0
Digital Coupons v1.0

Phone Analogy
=
Digital Coupon v2.0
SaaS Platform
Smart Phones

First Generation eCoupons
eCoupons 1.0
Print @ Home
CRM Integration
Challenges
Fraud
No loyalty data
Limited rules
Expensive integration
Brand erosion
Limited inventory
Sync Issues

Next Generation eCoupons
eCoupons 2.0
POS Integration
Unmatched Features
Unlimited rules
Simple integration
Preserve brand
Aggregated inventory
Real time
Social media triggering

Who is M-Dot?
Retail tech experts
50+ years of engineering and development at Catalina Marketing
Relevant experience at M-Dot: YOUtech, ICL, ACR, NCR, Fujitsu, IBM, SAP, AT&T
Extreme transaction processing
Built and managed the 5th largest private database in the world
Cumulative experience supporting 36,000 retail stores

M-Dot Network: Structure & Function
[apps integrate here]
Coupon issuers (RedPlum, SmartSource, etc.)
Dynamic layer – API integration
Open framework for approved applications
ANY Mobile & Internet Applications
Retailer built APPS, Customnization
Offer Reconciliation/Redemption
Retail Tech standards
Security & Compliance
Configurable business rules
Supported by Retalix
One-time integration
Base code

POS Integration
Built and supported by Retalix
ISS45 V8
Storeline
Available to retailers after latest POS update
Configured by retailer or POS dealer
NO SERVER, NO HARDWARE, NO WIRES!!!
One-day POS integration (Simple, Easy and Fast)
Lab test in less than one hour
Back versions (ISS45 v7, Scanmaster – available as well)
M-Dot also supports IBM ACE and SA

M-Dot’s Partnerships
90% of Unique Digital Coupons
Integration with 80% of Grocery POS Systems
100% of Coupon Clearinghouses
Content Issuers
Clearinghouses
POS Vendors
Technology

Web Frame
Consumer Education, Enrollment
Program branding (IGA + coupon brand)
Program registration
Mobile & Email opt-in
Customized IGA Video
Program FAQ/Education
Login, Logout, Administer account
Coupon Content Frame
All coupon offers are aggregated
Sort/search by category
Send offers to Facebook, Twitter
Click > Load to eWallet

Mobile
Customized Mobile Coupon Program
Wide availability
Mobile web (8,000+ device types)
Specialized Android app
Specialized iPhone app
Program branding (IGA + coupon brand)
Program registration “in app”
Same coupons as found on IGA website
Click/Touch > Load to eWallet
Further customization after launch
Shopping list manager
Recipes
Store finder
iPro Loyalty Points/Rewards reporting
Delivery of targeted offers
Location-based offer targeting

Consumer Engagement (In-Store and Online)

On-Site Registration/Enrollment Materials
Staffed by M-Dot and or Retailer
Shoppers enroll on the spot
Can use coupons during current trip if they register on their way in
Education/Reinforcement

Analytics and Business Intelligence: ONE VIEW
One View to all Analytics
Loyalty
eCoupons
eMarketing
Email
Mobile
Social Media

Summary
Enable your shoppers to interact with technology – They want to
Digital coupons are now achieving scale because MOM wants it to
Provide your shoppers with MORE ways to $ave
Unify your digital marketing programs (email, mobile, digital coupon, loyalty)
The “Final Mile” has been paved, technology gaps do not exist
Drive ROI with new capabilities:
Actionable Date
Time/day-part marketing
Real-time offer delivery
Personalization

Bill Catania
CEO, M-Dot Network
bcatania@mdotnetwork.com
Cell: 814-244-1539
www.mdotnetwork.com
Thank you!
Safe Harbor for Forward-Looking Statements: This presentation includes forward-looking statements regarding expected products, product enhancements and timetables related to these. Retalix retains at its sole discretion the right to modify or change any of these future products and related timetables. Please refer to your written agreements with the Company as the sole source of obligations regarding our delivery of products and services.

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Digital Coupons: How & Why

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