The document discusses how to build successful permission-based marketing programs through engaging customers with relevant offers and rewards. It suggests starting with understanding individual customers through data profiling to personalize the dialogue. Promotions should be designed using different techniques to appeal to both rational and emotional motivations. The use of social media, gaming elements, coupons, and affinity-linked offers can help encourage customer engagement and amplification within social networks. As mobile commerce grows, including via near field communication technologies, permission-based advertising and loyalty programs will become more important for retaining valuable customers through a true dialogue focused on rewards and services rather than just selling.

1. How to build an opt in brand
proposition that has longevity
The New Revenue Growth & Loyalty
Story
3rd October, 2011

2. The global leader in mobile marketing and advertising
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3. We manage mobile experiences
mCRM
mCare and Services
Loyalty Programs
Mobile Advertising
Gaming
Mobile Marketing mCommerce
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4. Permission based marketing programs – operators
examples
Surprise & Permission
Promos &
Delight / I-Ticket Based
Games
Collect points Advertising
Vodafone Vodafone
Orange Spain T-Mobile USA
Greece: Loyalty Portugal
‘Top-up and win’ ‘4G Payday’
‘2 for 1 i-Ticket’ ‘Promo 4u’
Operator Operator invests Operator invests Advertiser
invests / customer pays / customer pays invests
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5. Each proposition starts with the customer
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6. People like promotions and offers
Over 70% of consumers surveyed use discounts,
promotions or coupon services like Groupon
Source: Recent study conducted by Velti & DMA, Sept,. 2011
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7. And people want relevance
48% of people feel personally relevant deals are
the second most frequently chosen reason for
spending more with a company
Source: New research by Ipsos Mori and The Logic Group. Johnson, Mark. “11 Customer Loyalty
Trends for 2011”, HotelMarketing.com: Nov. 25, 2010
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8. Data personalises dialogue and offers
Campaign
Preference Response
Demographics
Initial Operator
Initial Data + During the
program data
Usage
behaviour
Profit Purchases
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9. Vodafone Portugal uses customer preference for ads
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10. Decision making is mostly emotional
Rational
30%
Emotional
70%
Source: Johnson, Mark. “11 Customer Loyalty Trends for 2011”, HotelMarketing.com: Nov. 25, 2010.
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11. Use different engagement techniques for profitable
and rewarding customer dialogues
Please Rational Save
Surprise &
Thank You Emotional
Delight
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12. Orange Spain Rewards Customer Top Up
TV Commercial Website
Program WEB Portal
SMS
PR: http://lacomunidad.elpais.com/movilesespana/2010/9/26/recarga-y-gana-con-orange
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13. Consumers are social
If Facebook was a country Over 70% of it would
be the 3rd biggest country in the World. Bigger than
the USA and just behind India and China
Source: Facebook, Jan 2011
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14. Encourage customers to amplify through social media
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15. Orange Spain recruits customers via social media
men
woman
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16. Mobiles are used more for games than social networking
Over 60% of people surveyed use their phones for
gaming Vs 49% social networking
Source: Microsoft Tag, March 2011
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17. Adopt a gamified approach
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18. T-Mobile USA celebrates having the largest 4G network
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19. People care strongly about their hobbies and interests
Over 60% of young people would rather
give up sex than music
Source: Marrakesh Records and Human Capital, February 2009
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20. Link promotions to customer affinities
Cinema-themed Lifestyle-themed
Sports-themed Music-themed
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21. Vodafone Greece allows customers to take friends out for
free and uses mobile coupons
Information launched Current 3rd party Offers
on VF Websites
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22. Consumers are starting to purchase via their mobile
phones, including research and direct purchases
43%
37% 35%
27%
Research Purchase direct to Experience Purchase via
bill enhancers card/bank details
*Experience Enhancers include coupons, status on purchased items, buying alerts, loyalty schemes and ticketing
Source: IAB Consumer M-Commerce Study October 2010 Base All UK Mobile Users (1039)
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23. Argos mobile club makes shopping easier for its 6m+
opted in customers
CONFIDENTIAL & PROPRIETARY 22

24. Easier shopping via mobile is valued by consumers
Why did you use your mobile for researching/buying?
out and about 47%
the easiest way of doing it 42%
it provides me with useful info* 33%
spontaneous / impulsive decision 32%
means I don't have to carry so much stuff* 29%
no other online access 26%
experimentation 25%
it's the only way of doing it 11%
knows where you are - more relevant info* 11%
felt like the most secure way 7%
Source: IAB Consumer M-Commerce Study October 2010
Base: All respondents who are involved in each area of M Commerce
* Indicates this option was only asked of one area of M-Commerce
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25. NFC will extend mobile commerce even further in the real world, making
PBM and loyalty programmes even more important
Touch to Share Touch to Discover
Touch to Ticket Touch to Pay
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26. True customer value and dialogue are the ingredients for
successful a PBM brand
True
Rewards
customer
and
dialogue,
valuable
not just
services
selling
Rich Connecting
Profiling with
and customer
relevance affinities
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27. Please visit our breakout session for more details
and new research results on PBA
Stephen Upstone
VP Sales and Business Development
supstone@velti.com
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