ISIS Cashless Strategies 2013


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ISIS Cashless Strategies 2013

  1. 1. 1 How Coca-Cola Is Leveraging Cashless Strategies To Enhance Customer Loyalty Jim Stapleton Chief Sales Officer Isis Rick Kanemasu Vending Technology Strategy Coca Cola Company
  2. 2. 2 28% 65% 6% Yes No Maybe Would you return home for your wallet? 38% 53% 10% Yes No Maybe Would you return home for your smart phone? 67% 13% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0 to 4 5 to 9 More than 9 Number of loyalty cards in your wallet
  3. 3. 3 A joint venture between AT&T, T-Mobile and Verizon chartered with building the most widely accepted mobile commerce system possible WHAT IS ISIS?
  4. 4. 4 WHAT IS THE ISIS MOBILE WALLET? Gift cards, store credit cards and other forms of store tender TRANSFORMING THE WAY PEOPLE SHOP, PAY & SAVE Personalized offers, rewards and content Membership and loyalty programs Contactless payment from multiple accounts Instant ticketing for transit, sports and entertainment venues
  5. 5. • Isis National Merchant Partners • Macy’s, Aéropostale, Jamba Juice, Foot Locker, Champs Sports, Academy Sports, Aramark, Coca-Cola, Whataburger, Valero Corner Stores, AT&T, T-Mobile and Verizon NATIONAL MERCHANT PARTNERS
  6. 6. 6 CUSTOMER “WOW” FACTOR “There is a ‘wow’ factor when someone taps to pay or Gets an offer on their phone that generates enthusiasm not just for mobile payments but for our brand. Our biggest asset is our fan base, but if our marketing campaigns feel like marketing campaigns, they die immediately. With Isis, we have made a low-cost investment in something that people are genuinely excited about.” -Ben Craner, Chief Marketing Officer
  7. 7. 7 COMMUNICATING WITH CUSTOMERS “Starting with contactless is just a first step. If we’re going to do business with our customers the way they want to do business, we have to adopt mobile commerce. Isis makes it easy to reach our consumers before they reach the point of sale.” -Roger Miller, Chief Technology Officer
  8. 8. 8 THE FUTURE OF RETAIL “Isis is worth the investment because mobile is quickly becoming the future of retail. And we’re not just talking about payments – Isis dangles a carrot in front of our customers with the ability to apply loyalty and coupons with a tap of their phones.” -Rick Kanemasu, Vending Strategy
  9. 9. The Situation 9 Total 2.0x 2.9x 5.9x 6.3x 2.0x 1.6x 4.0x 0.2x 3.5x2.7x Hispanic Source: 12mmt October 2012 Favorite BrandAcrossCategory Favorite DrinksWorld’s Most Recognized Brand Vending 20MM Members
  10. 10. Expected Evolution of Payment 10 Today 2017 2020 Cash (80%) “The King” Cash (60-70%) “Still King, but Declining” Cash (50-60%) Credit Card (15-25%) Credit Card (20-30%) Credit Card (20%) Mobile (10-20%) Mobile (5-10%)
  11. 11. Organization Capabilities & Process (Sales & Delivery) Reliable Transaction Product Availability Reliable Machines Loyalty Rewards Coupons & Promotions Reliable Vending Equipment Telemetry Hardware and Vend Mgmt System Cashless Devices and Gateway Payment Options Screens and Loyalty Program Marketing Programs Social Tie-ins Donations Simple, Convenient, Personalized and Rewarding Experience High-Level Technology Roadmap 11
  12. 12. Vending Loyalty Consumer Experience •My Coke Rewards Card •Isis Mobile Wallet •Cash •Credit/Debit card •Isis Mobile Wallet •Automatic MCR points accumulation •MCR point redemption for a free drink Attract Reward & PromoteRecognize Select & Pay •Commercial loop runs on a 4” screen •POS on the machine also markets the program
  13. 13. Hardware and Commercial Loop 4” Screen + NFC Reader Commercial Loop
  14. 14. Isis Coca-Cola Pilot (Austin, TX) • My Coke Rewards (MCR) card in Isis Mobile Wallet • 30 MCR Points on each card; 30 MCR points = 1 Free Coke; 3 MCR points for each purchase • 200 Vending Machines (malls, colleges, at-work) • Vending Machines in Verizon stores to demonstrate the Wallet • 34% of Isis users set-up the MCR card • Consumers using the Isis Mobile Wallet to redeem their MCR points
  15. 15. Isis Mobile Wallet – The Future • Nationwide: Isis allows us to expand our vending loyalty program across our fleet without distributing a physical MCR card. • Redemption of Points: 20MM members can redeem their points at the vending machine for immediate rewards. • New MCR Members: MCR membership will increase with Isis (acquisition cost = one Coke). • Cross-Channel Promotions: with the MCR card in the wallet, Coke can partner with QSRs to provide offers to consumers. • Other Tie-Ins: Consumers can be identified with other NFC devices/tags like Freestyle machines, posters, the web (clip to Isis), etc.