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Mobile Couponing 101
 

Mobile Couponing 101

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A quick look at mobile couponing. How consumers use them, how its done and the challenges of implementing them.

A quick look at mobile couponing. How consumers use them, how its done and the challenges of implementing them.

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  • You established the fact by providing documents. Great, but intelligent people know this face. Mobile is playing a big role in any type of marketing or sale now a days. Thank you for your good presentation.
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  • I am not going to show you the full breadth of mobile tactics because at the end of the day they all employ the same schema. I will focus on mobile apps because they are easiest to get screen shots of. I will tell you that mobile coupons have a high redemption rate of between 8-16% \n
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  • printing is becoming easier with the latest IOS update. The interesting thing is this is no different than an online experience. The phone has become an extension of my desktop experience\n
  • printing is becoming easier with the latest IOS update. The interesting thing is this is no different than an online experience. The phone has become an extension of my desktop experience\n
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  • It’s primarily a younger consumer that wants mobile coupons\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
  • According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
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  • Assuming you have solved some of the backend equations there are still front of house hardware issues. Although this is changing rapidly most phones in market cannot reproduce a 1D bar code that is readable on the majority of phones. 2D codes are almost completely out of the equation. The good news is retailers can upgrade to these handheld 2D scanners for less than $100 each.\n
  • Ok, we have solved the hardware issues. But we still have clearing house issues of authenticating and redeeming the coupon on the phone. Until retailers go fully digital challenges will continue to abound\n
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  • A beast of burden created by crossing two things that weren’t originally meant to be used together…\nSort of like a peanut butter cup….\n
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  • Doing coupons are great but being able to do subscriptions, surveys and promotions without having to spend additional media dollars to engage them. This is something you can’t do with traditional or digital coupons. In addition there is the measurement opportunities. This is where we think this kind of couponing gets really great. We have been playing with this for a while and what we do is \n
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  • Its not all doom and gloom however. There are a number of forward thinking retailers that addressed these issues over the last few years\n
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Mobile Couponing 101 Mobile Couponing 101 Presentation Transcript

  • How  can  mobile  be  used  to  enhance  the  point  of  sale? gene@thecollectivefactory.com
  • NEW  SHOPPER  JOURNEYS:  This  research  collabora-on  between  Carat  and  Microso4  sought  to  define  the  structure  of  consumers’  paths  to  purchase  and  how  different  touchpoints  play  a  role  in  shaping  decisions  as  to  where  and  what  to  purchase.    19,000  shoppers  in  17  countries  were  queried  on  their  most  recent  shopping  occasions  in  four  key  retail  categories:    apparel,  quick  service  restaurants,  groceries  and  home  electronics.  A  fi4h  category,  Home  Improvement  Centers,  was  done  in  the  US.
  • Study Overview Methodology Phase  I  :  Inves+ga+ve  Qualita+ve  Research Step  1 Step  2 Step  3 Shopping  diary Individual  depth   Shop-­‐Alongs(mix  of  paper  &  video) interviews
  • Study OverviewMethodologyPhase  II  :  Global  Quan+ta+ve  research A 20-30 minute online survey amongst shoppers from 17 countries Each respondent answered questions about two different categories USA USA   samples n=2,680 Taiwan India Hong  Kong Singapore China Japan Asian   samples n=1,073 n=1,546 n=1,015 n=1065 n=1,032 n=1034 Italy Germany Spain UK France European   samples n=1,118 n=1,012 n=1,031 n=1,141 n=1,063 Canada Brazil Mexico Argen+na* Colombia* ‘Americas’   samples n=1089 n=1,023 n=1,006 n=581 n=493
  • Study OverviewMethodologyThe  Five  Retail  Ver+cals  Inves+gatedQualifying Criteria Home Clothes, Shoes Home Quick Groceries(Recency) Electronics & Accessories Improvement Service Personal Care Cell Phone Restaurants Last month Past six months Past month Past week Last six months (min $30 spend)US Sample 1,039 962 1,088 1,124 1,147 Total US Sample: 2,680
  • Hierarchy  of  Shoppers’  New  Behaviors § Discount  coupons  used  more  oen   Seeking Better Value § Price  more  important  than  brand/qualityHierarchy  of  tac7cs  for  coping  with  the  recession § More time looking for special promotions More Advance § Visiting a number of retailers to find best deal Purchase Research § Reading online forums/ consumer websites § Discount stores Using Different § More online shopping Channels § More online auctions § Mobile Reduced Volume § Fewer visits to retailers Word-of-Mouth § Peer reviews - 1:1 and through social media
  • Old  models  no  longer  adequately  describe  what’s  happening Awareness ConsideraIon Purchase
  • It’s  not  linear.    It’s  a  dynamic  process. 66%*Refine  List53%*Built  up  List con$nuous  itera$ons 8
  • From Paths to Journeys:The New Shopper Paradigm WOM  Feedback  Loop Post   Need  State Research Purchase Purchase In-­‐storeresearch ‘Pre-­‐tailing’ ‘Retailing’ ‘Post-­‐tailing’
  • 35%used mobile in store before making a new purchase
  • Adding  Value  Through  Coupons
  • versusManufacturer Retail It’s easy for retailers to do mobile couponing... Not so easy for manufacturers
  • Manufacturer
  • Coupon  Sherpa
  • Coupons  Are  Popular  With  Younger  Demo Do  you  receive  coupons/ promo7ons  AT  LEAST   MONTHLY  on  your  cell   phone/smartphone  or   handheld  wireless  device? source: Forrester | North American Technographics Benchmark Survey 2009
  • For  What  Products  Do  They  Want  Coupons? I  would  not  be  interested  in  receiving  discounts  on  my  cell  phone 70% 56% Restaurants  (e.g.,  McDonald’s,  SUBWAY,  Applebee’s 23% 30% Drinks  (e.g.,  Coca-­‐Cola,  Starbucks 17% 23%Household  Products  (e.g.,  dishwashing  liquid,  all-­‐purpose  cleaner) 14% 23% Personal  care  products  (e.g.,  shampoo) 13% 14% Music  or  DVDS 12% 27% Snacks  (e.g.,  candy  bars,  chips) 12% 21% Fashion/apparel 12% 18% Events  (e.g.,  concerts,  movies) 11% 18% Travel/air 9% 15% Car  Maintenance  and  repairs 8% 11% 0% 18% 35% 53% 70% US  mobile  Owners US  mobile  owners  ages  18-­‐24 source: Forrester | North American Technographics Benchmark Survey 2009
  • But  How  Do  Delivery  OpIons  Stack  Up? Discover Collect Hold Match RedeemMobile  (SMS)Mobile  (bluetooth)Mobile  WebMobile  Applica+onPaper  (FSI)*Paper  (rebate)Online  (FSI)*Online  (rebate)EmailLoyalty  programs source: Forrester | North American Technographics Benchmark Survey 2009
  • If your a retailer there is notrouble: It’s a manufacturer issue
  • Coupons  -­‐  How  They  Work  -­‐  A  Simplified  Overview Brand Brand issues reimburses Coupons retailer PAIN POINTS
  • Hardware  Issues 2D  Scanner
  • Web  IntegraIon  Issues
  • Summary
  • What’s  A  Mule?
  • The  Receipt Mostly  =  
  • The  Receipt  Mule
  • Consumer  Flow Code Consumer Consumer Receipt has Consumer Verified and Buys a gets Dynamically texts back discount generated Pin Code to XXX receipt added to Pin Code Short Code loylaty card
  • The  End  Dilemma
  • The  End  Cap  Mule Converting a static experience into:
  • POS  IntegraIon  Required Dynamic PIN provisioning PIN’s Pin Storage / Redemption and Campaign Management Mobile Gateway Verify PIN & begin 2- way conversation
  • The  Loyalty  Card
  • A  Few  Retailers  To  Pilot  With
  • Summary
  • • Gene  Keenan• gene@thecollec+vefactory.com• 415.218.7369