Webinar Deck: Mobile Marketing for QSR & Casual Restaurant Webinar

Mobile Marketing for QSR & Casual RestaurantsPart of the iLoop Mobile Webinar Series McDonalds Thanks You Enjoy one FREE Small McCafe coffee. Valid 1 week. Help: moneymailer.com Opt-out: Reply STOP MCDONALD Msg&DataRatesMayApply.Presented by Michael Ahearn, VP Marketing & Strategies, iLoop Mobile

About iLoop Mobile• Leading technology and services making it fast and easy to create, manage and analyze mobile McDonalds: Enjoy one marketing campaigns and content delivery FREE Small McCafe. initiatives worldwide Code 34d83w Exp.1/6/10 Help:mmcoupons.com Opt-out: Reply• Award winning iLoop Mobile Platform is a self- MCDONALD STOP service SaaS solution with open APIs for creating state-of-the-art SMS campaigns, mobile sites, mobile coupons, mobile-enabled Web sites and other mobile marketing initiatives• Industry leader in mobile marketing strategy, managed service campaign delivery and professional services• Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies

Today’s Marketing Challenges Today’s marketers faces a number of challenges including: • Acquiring new customers while retaining existing ones • Executing effective marketing with flat/declining marketing budgets • Ongoing need for accountable marketing and making campaigns instantly measurable (no ROI lag time) • Difficulty in reaching a fragmented customer base • Decreasing relevance of traditional marketing channels to the consumer • Reaching customers in communication channels that they are using most

Mobile: #3 Most Used Media Channel Today Average number of hours per week spent with:Source: Microsoft Advertising Mobile Consumer Vertical Study - The Future of Mobile Advertising, Nov. 11, 2009

Mobile Tactics & Use Penetration160M (69%) 97M (42%) 76M (33%) 234M (100%) 14M (6%) 90M (38%) 93M (38%) 98M (42%) Voice Video 1.5M (<1%) 14M (6%) 194M (83%) • SMS • MMS: advantage of rich media + unlimited text • Mobile Internet sites • Apps: requires utility or entertainment to merits a permanent place on users’ phones • Mobile enabled IVR (integration of text and voice calls) • Mobile incentive marketing & promotions (coupons) • Location aware messaging (LBS), geo fencing, augmented reality • UPC/2D barcodes and picture recognition • Search marketing • Display advertising • NFC to replace debit card with mobile wallet + content delivery Comscore March 2011 data across all 234M US mobile subscribers

Smartphone Penetration Today 31%US SMART PHONE PENETRATION MARCH 2011 % Smart %Smart %Smart % Total Users Phone Phone Phone Market Q2 11 Market Market Market Q2 11 Dec 09* Dec 10 Q2 11Google 5% 29% 35% 11% 25M Android is now marketRIM 41% 32% 27% 8% 19M leader Android replacing RIM &Apple 25% 25% 26% 8% 18M MicrosoftMicrosoft 18% 8% 8% 2% 5M Android/Apple picking up new usersPalm 6% 4% 3% 1% 2M Apple flat but strongComscore March 2011 data across all 234M US mobile subscribers

Smartphone Penetration Tomorrow Looking Ahead End of 2011 Estimates: Mobile Subscribers: 300M+ Smartphone User Base: 150M Mobile Internet Users: 120M Mobile Video Viewers: 90M Nielsen Nov. 2009 BY END OF 2011… 50%Why This Matters? Smart phone users across all ages…• 82% use their phones to browse the Internet• Almost 50% use SMS for commercial purposes or interaction

QSR Marketing Objectives Achieved by Mobile Marketing • Increase restaurant and drive thru traffic without increasing customer wait time • Increase customer loyalty, engagement and retention • Capture customer profiles and preferences, and then build a segmented customer database for targeted marketing • Build brand and product awareness & support new product launches • Drive off-peak business with just-in-time customer messaging that delivers the right message to the right person at the right time • Reach your customer in the most ubiquitous communications channel today with easy-to-implement, affordable and effective campaigns • Enable viral marketing via mobile • Increase the relevance and use of traditional marketing channels with interactive mobile components

The Intelligent Goal A Great Marketing Plan Leveraging Mobile The holistic integration of mobile across all your customer engagement activities print

Mobile Marketing Campaigns for QSR• Simple keyword/short code SMS offers and promotional messages (one-off or as an alert group) with optional redemption codes e.g. opt-in SMS “VIP club” and “savings club” alerts• Mobile enable your PC and mobile site with an SMS alert opt-in page that captures customer profile and preferences to build a segmented database for targeted SMS messaging• Mobile enable your PC Website with a selection of coupons and promotional offers delivered to mobile phones via SMS• SMS or bar code coupons (EAN & 2D) delivered to mobile phones with full POS redemption using existing POS systems (transaction pin pads, scanners, loyalty cards, hot register keys). Coupon redemption captures detailed customer transactional data that can be leveraged for future, more relevant messaging. This can be created as one-off coupons or as a “coupon club.”• Smart coupons that integrate with outside database info —such zip code lookup combined with the real-time weather of that zip code—that deliver contextually relevant SMS messages to the customer based on that real-time data• Mobile-enabled loyalty cards and points cards

Mobile Marketing Campaigns for QSR• Optimized mobile sites and landing pages for rich media interaction, customer acquisition, customer engagement and product awareness• Customer engagement campaigns like SMS sweepstakes, polls/voting, surveys and quizzes• Set up corporate communications and “crew messaging” using SMS and mobile sites• Create location aware campaigns and geo-fences for just in time marketing offers and information Mobile QuickFast Club Come into the 5th Street location anytime this week for a free Kids Meal with purchase of 2 Supersize Meals. Text HELP for help, text STOP to stop. Msg&DataRatesMayApply.

Basic SMS Promos & Alerts SubscriptionsText MIXIT to 44264 Starbucks: Enjoy a Mixit however-you-want-it Frappucino for half price from 3-5 PM. Text STOP MIXIT to end. Msg & Data Rates Apply. My Starbucks Rewards Hi! To complete your sign-up for Starbucks mobile texts, reply YES to this message. COUPONS ISSUED AS SINGLE INTERACTION Msg&Data rates apply. OR SMS ALERTS SUBSCRIPTION End user opts in via keyword/short code to receive a one-time offer (MIXIT) or to SMS subscription alerts where they are sent daily, weekly or monthly offers. The alert opt-in can be via keyword or Web page (left). This is ideal for building a database of customers for repeated, segmented messaging.

Scaled Deployment of QSR SMS CampaignsMobile can offer a easy-to-use, scalable solutiondesigned to quickly create, manage and analyzehundreds and even thousands of campaigns withina unified campaign management platform, ideal forfranchise or SMB campaign management.• Average conversion rates 15-20% and as high as 30%• ROI as high as $20 return for every $1 spent• Increases in opt-in databases have reached 23%• At least 2x redemption rates as compared to other media channels• Fraction of the cost of the overall shared mail campaign–mobile easily McDonalds Thanks You pays for itself Enjoy one FREE Small McCafe coffee. Valid 1• Up to 1,200 opt-ins per location in first week. few months–one retailer had 900 in first Help: moneymailer.com two weeks Opt-out: Reply STOP• Spike sales during slow weekdays and MCDONALD on promotional holidays Msg&DataRatesMayApply.• Reported 4% increase in incremental sales

McDonald’s Franchise SMS CouponsQSR franchise marketing deployed by MoneyMailer for regional McDonald’s restaurant:• Objective: increase daily transactions and revenue per customer• Strategy: SMS opt-in alerts for promotional messaging on special offers and discounts• Promotion: In-store and counter cards given at drive-thruRESULTS• At a fraction of the cost of the overall McDonalds Thanks You traditional media campaign, mobile Enjoy one FREE Small boosted the redemption rate 2X from McCafe coffee. Valid 1 traditional direct marketing alone. week.• Counter cards at drive-thru increased Help: moneymailer.com opt-in database 23% Opt-out: Reply STOP MCDONALD• $20 ROI for every $1 spent with mobile Msg&DataRatesMayApply. integrated marketing• Redemption rate of 17%

IHOP SMS CouponsIHOP Free Shortstack Campaign• Simple keyword opt-in for “free short stack” SMS coupon in shared mail campaign: Text IHOPFREE to 686868• Redemption codes & exp. date• 2 messages per month• Allows viral component of user-to-user forwarding of coupons• In-store collateral increases uptake 20%• Example restaurant: 500 members in 12 weeks with average of 100/month joining mobile alerts• Reminders of special events to drive traffic (Friday Clown Nite, Halloween, Easter, Xmas)• 10% of coupons issued are redeemed• Note: Free offers without purchase can be wildly successful…plan for the traffic“Mobile is succeeding in driving traffic and providingvalue to my customers….”Ever Santana, regional franchise owner/managerIHOP/Fabris Companies

Quiz & Poll Pisa Quiz: Where was pizza born? A) Naples B) Rome C) Milan Reply A, B or C Reply HELP for help. Reply STOP to cancel. Msg & Data Rates Apply Pisa Quiz: Correct! Ur a pizza pro. Get $5 off a Gourmet Xlarge. Code 3e9d Exp. 12/31/10 Reply HELP for help. Reply STOP to cancel. Msg & Data Rates ApplyCalls to action in traditional media (TV, print, outdoor, Web etc.) inviteconsumer to text message a keyword (PIZZAQUIZ) to the 5 digit shortcode (44264) to participate in the poll or vote. Poll and voting adds a funinteractive element to marketing messaging or promo offers. Thisexample combines a SMS quiz with a mobile coupon sent after voting.Try this, it’s a live demo.

In-Restaurant Mobile MarketingUse an enticing call-to-action on in-storesignage, screens, and through employeecommunication to encourage mobile sign-upsWhy Mobile for In-store Marketing• Ability to reach an interested customer• Immediate incentive to participate• Increase sales conversions• Ability to integrate with POS system and CRM• Customer loyalty programs• Customer service capabilitiesCall to Action Examples:• Text-to-Win sweepstakes• Text for a discount• Text for valued alerts• Text for VIP treatment• Text for in-store help

Mobile Enabled On-Pack MarketingMobile on-pack call to action opt-in delivers SMS whichcan contain:• Instant win SMS or a prize code redeemed online (Web)• Promotional codes and bonus offers• Additional reply option to opt-in to SMS alert group• Mobile site link embedded in SMS• Brand content download via SMS• Points to existing reward program (with initial profile entry)Why Mobile On-pack• Database list building• Loyalty point redemption• Sweepstakes and incentive programs BURGER KING BURGER WRAPPER• Awareness/loyalty SMS OPT-IN FOR MUSIC DOWNLOADS US Hispanic market campaign with unique redemption code keyword & short code printed on burger wrappers for exclusive ringtones, music video downloads and more delivered via SMS.

Loyalty & Rewards Campaigns with BrandsSprite Spark Text: Loyalty & Rewards• Sprite “Under the Cap” on-product loyalty point code redemption via SMS with mobile site for content delivery• Sprite Drake SMS Reward program• Sprite NBA All Star Game “Slam Dunk” mobile site for branded content delivery

Customer Acquisition via Mobile• PC Web site or mobile site opt-in to weekly SMS messages on events, promos, and special offers• Opt-in available via online Web form or mobile site capturing customer profile data• User selectable alert message content preferences• All preference and profile data is captured for CRM database build, analysis, targeted messaging and use in other marketing channels (email, print direct marketing etc.)• Tell-a-friend component–end user forwards marketing message to a friend from Web site via SMS Web Opt-in Mobile Site Opt-in

Web Page Delivering SMS Coupons & Promotions Pisa Pizza: Show code for free med pizza when u buy a Xlarge. Code: 2dhj Exp:101/10 Call to order 7345551112 Msg & Data Rates May Apply.Text HELP 4 help. USER SELECTABLE SINGLE COUPON DELIVERY CLICK-TO-CALL OPTION Customer selects from special deal coupons that are delivered Any SMS coupon can directly from Web site to phone. Coupons are now on the include a clickable phone customers’ person 24/7 as reminder and incentive for spur of the number to take orders or moment or unplanned visits. make purchase

Mobile Coupons: The Restaurant’s PerspectiveNO cashier slow-downNO new hardware (scanners, servers, PIN pads or readers)NO bad user experience and resulting lost revenueNO limited user phone reachYES minimize cashier involvement Mobile coupons for Blackberry users too…YES leverage existing retail technology systemsYES maximize customer’s participation and reach (older phones too!)

POS Mobile Coupon RedemptionRedemption Options Available• Payment terminal pads using mobile phone number• Register hot keys or on-screen “virtual” terminal• Integration with discount card account• Scan with optical barcode scanner Point of Sale Redemption for Mobile Coupons Mobile Redemption Solution The POS redemption solution aggregates POS hardware redemption systems Settlement so a simple SMS coupon or mobile barcode coupon can be redeemed on virtually any POS system.

Mobile Coupon POS Redemption 1 Coupons with POS RedemptionGhiradelli CouponGet $1 off a deluxe 6 2Ghiradelli ChocolateSundae. Exp:9/30/10http://m.choc.mobi Msg & DataRates May Apply 5 3 $1 off Ghirardelli Chocolate Sundaes. Expires 10/25/10 4 2221621217-2090

Smart Coupons & Alerts• “One size fits all messaging” can have unknown relevance to the recipient• Mobile Smart Coupons and Messaging easily integrate with data sources such as news, weather, consumer profile, inventory, local promos etc. instantly adding relevance to the message delivered• Smart alerts can know: ! Who the customer is ! Where they are The heat wave ! What’s happening around them continues here in LA! Cool off at lunch with ! When they want something an ice cold root beer ! Why they need or want it float, free with every Galaxy Meal purchase• Drive in-store traffic, Web traffic and product sales. at any AstroBurger• Immediate, direct response solution that location. Code:34ru3 Exp: 7/12/10 demonstrates ad effectiveness.

Smart Coupons & Alerts SMS Only Coupon: Contextually relevant coupon is delivered based It’s a scorcher in on keyword + in NY Freezing database Miami today! Keep today? Keep warm referencing with unique cool with breezy with with a wool redemption code. late summer skirts. sweater. 20% off allText STORE + your zip code to 62407 20% off at any sweaters at anyto receive a SMS coupon every monthfor 20% off your favorite 2010 fashions. Database store. Code t239r store. Code 34r39r Exp. 8/31/10 Exp. 8/1/10 Weather Stock Market Contextually relevant STORE + 10507 coupon delivered based on Sends coupon for sweaters Sports Scores keyword + database with based on cold weather unique redemption code. reading for opt-in zip code Location Look Up Product Inventory Consumer Profile Data 62407 Past Consumer Purchases Any Other Event or Data Sets Store 33128 Database receives keyword opt-in and 62407 delivers a coupon based on external events or information in the database It’s a scorcher in Miami today! Keep cool with breezy late summer skirts. Miami Discount coupons: http://nyskirts/mobi OR….You can deliver a Text opt-in for either SMS Coupon with link to single coupon or to opt-in WAP page with multiple to couponing alert group coupons and barcode

Location Based Services• Single ping(s) location fixes for inexpensive “pay once” location fix• Ping every time location aware messaging for single SMS offers or alert group/subscription campaigns… Mobile QuickFast Club and pay for every ping Come into the 5th Street location anytime• Geo-fencing for just in time this week for a free Kids messaging Meal with purchase of 2 Supersize Meals.• Assisted GPS offers best case position fixing

LBS Geo-Fencing: The North FaceNorth Face Geo-Fenced SMS Campaign• 1,000 geo-fences created in New York, San Francisco, Seattle and Boston• Urban areas had half mile perimeters, suburban areas up to a mile around the stores• SMS messages about offers and seasonal product arrivals• Uses multiple LBS technologies: GPS, carrier provided user location info, cell tower triangulation & hybrid• User opts-in to campaign to receive messages• Maximum of 3 texts per week for any user• Opt-out rate is low at 6% Location Based Geo-Targeting

Mobile Display Ads with Site Click ThroughBrand Benefits: Consumer Benefits:• Grow brand awareness through new • Firsthand involvement with brand channel • Download or share content• Optimize data capture • Tell a friend feature• Enable opportunity for future contact with • Learn about product consumer • View commercials• Drive traffic to store • Locate a storeCASE STUDY: MOBILE DISPLAY BANNER ADS1.25% avg. CTR on sites2.71% avg. CTR on Boost carrierOverall CTR dramatically higher than 0.01% avg. online CTR

Mobile Internet: Hardee’s Mobile SiteMobile Internet site featuring usergenerated content (name theproduct) with user profile collection.Information gathered by mobile sitesent to Hardee’s Web site forintegration into :30 video ads to bedisplayed in Web and mobile site. • Product information • SMS alert opt-in • Videos of broadcast TV ads & consumer generated ads • Store locator (nearest Hardee’s restaurant) • Viral “mobile greeting cards” content for peer-to-peer sharing of animated gifs, personalized messages and more • SMS alert opt-in • Integration with email fulfillment • Tell-a-Friend viral component sends site link via SMS • Survey to measure site effectiveness for brand awareness

Mobile Apps• Custom Apps: Standard apps, built from scratch with original creative and functionality• Express Apps: Quick and inexpensive apps that are mobile site conversions• Enhanced Apps: Express Apps with optional smart phone native functionalities

Mobile Apps Carl’s Jr. App • GPS enabled loyalty program rewarding check ins across US • Guaranteed rewards, restaurant locator, social media interface, video, menus, nutrition info • Cross-posts users’ location check-ins on Facebook, Twitter and Foursquare • First check in and every subsequent fourth check in earns a spin on The Wheel of Awesome for a chance to win discounted and free menu items, branded gift cards, prizes and merchandise from participating partners • Check ins that have not earned a wheel spin can receive a coupon for a featured menu item that can be saved for 7 days or redeemed immediately within 30 min • Reward offers increase with frequency of check-ins • Non-menu prizes have customer info capture for prize delivery • Check in limited 3 per day and limited to one per day part (breakfast, lunch, dinner) Starbuck’s Mobile Cards Payment via scanned barcode on phone…phone takes the place of Starbuck’s plastic card Connected to user’s credit card, and can be topped off Reward “stars” for use for menu items and perks (free drink on birthday, free syrups, free soymilk, refills etc. Store locator

Mobile Apps• Virtually construct pizzas from crust to toppings• Create chicken wings as you like them…crispy, sauces• Coupons on a “virtual fridge”• Tilting the phone moves toppings around the face of the pizza• Users can easily save and dial up their favorite items• Of course, place an order

Social Networks & Mobile • Mobile social networkers currently represent Linking rewards programs to over 11% of online US adults mobile social networks Social sites serve up more than HALF of all page views on the mobile Web (USA)Source: How Interactive Marketers Can Reach US Mobile Social NetworkUsers, Forrester, December, 2009

The Future: Near Field Communications (NFC)For the future of mobile restaurant marketing…look to Japan and NFC • The mWallet for payment • Content and information delivery • Frictionless opt-in CASE STUDY: McDONALD’S JAPAN • May 2008, McDonald’s introduced NFC-based coupons—users download coupons through a mobile application and touch a reader/ writer at the point of sale to instantly redeem their coupons, as well as pay for the purchase, and receive loyalty points • Promotions are planned according to each individuals purchase history; profile data and contextual factors like time of the day, or what the weather is like ALL JAPANESE MOBILE USERS • Investment: large backend infrastructure and putting NFC reader/ writers into 3,800 branches with a dedicated mobile marketing joint venture with NTT DoCoMo • Stats: 16 million registered users (>12% percent of the Japanese population), >100 million mobile page views per month, and in less than 2 years, the number of coupons now exceeds 4.5 millionSource: Christopher Billich www.mobithinking.com

What’s Next: Restaurant Mobile MarketingAugmented Reality: Stella ArtoisiPhone 3Gs/4G AppVideo camera on iPhone is used to“see” live surroundings• ugmented Reality technology Aoverlays geo-relevant info and graphicsin real time (US, UK, Argentina &Canada)• PS used for phone’s location for geo- Grelevant info• ocation maps L• eviews and ratings with user Rgenerated posts• ser can set personal preferences Uand filters for search• ntegrated taxi number service I• ugmented reality works for iPhone A3GS/4G, for earlier models there is a2D listing function

“Mobile Marketing for QSR & Casual Restaurtants”Presented by Michael Ahearn, VP Marketing & StrategiesPart of the iLoop Mobile Webinar SeriesThanks for attending, for more info on how iLoop Mobile can help you withmobile marketing, please contact:sales@iloopmobile.com+1 408 907 3360

Webinar Deck: Mobile Marketing for QSR & Casual Restaurant Webinar

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