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Digital Coupons: How & Why

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M-Dot Network's CEO Bill Catania discusses the state of digital coupons and how M-Dot has changed the landscape with their innovative solutions.

M-Dot Network's CEO Bill Catania discusses the state of digital coupons and how M-Dot has changed the landscape with their innovative solutions.

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Digital Coupons: How & Why Digital Coupons: How & Why Presentation Transcript

  • 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.
  • 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
    What’s in it for them?
    • 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
    How do they integrate?
    - 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”
    What’s in it for them?
    • 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
    How do they integrate?
    • 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
  • Evolution of Digital Coupons
    Phone Analogy
    =
    Mobile v1.0
    Digital Coupons v1.0
  • Evolution of Digital Coupons
    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)
  • 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.