QSR marketers juggle tight budgets, high budgetary accountability and thin margins attempting to connect with consumers who care about one thing: value. But it's not just cost savings. QSR marketers have to deliver a mashup of convenience, time-savings, speed of service and low prices. This reality is what makes mobile such a powerful marketing channel for QSRs. Mobile is an integral part of consumers' on-the-go mentality and provides numerous ways to maximize customer lifetime value. Part of the Waterfall Industry Insights series.

1. Waterfall
Industry*
Insights
*
Mobile
Marke,ng
For
Quick
Service
Restaurants
Kane
Russell,
VP
of
Marke,ng
Waterfall
Mobile
Tuesday, February 14, 2012 1

2. Waterfall
Mobile
and
the
Msgme
Platform
Waterfall
Mobile Msgme
๏ Founded
August
2005 ๏ Free
trial:
www.msgme.com
๏ Offices
in
SFO
(HQ),
NYC
&
Aus,n ๏ API
suite:
developer.msgme.com
๏ Backed
by
Vista
Equity
Partners
๏ Custom
applica,on
development
๏ Cross-­‐channel
mobile
&
social
CRM
via
SMS,
๏ Short
code
provisioning,
cer,fica,on
MMS,
QR
Codes,
IVR,
Facebook
&
TwiUer &
audit
management
Tuesday, February 14, 2012 2

3. Objectives
For
Today’s
Webinar
Mobile
Marke,ng
for
QSRs:
1. Mobile
Industry
2. QSR
No,on
of
Value
3. Case
Studies
4. Opportuni,es
5. Takeaways
Tuesday, February 14, 2012 3

4. Growth
of
Digital
Marketing
in
the
U.S.
U.S.
Mobile,
Social
&
Email
Market
Value
($s
in
millions)
CAGR
Mobile
marke,ng $13,232 32%
Social
media
marke,ng
Email
marke,ng $11,274
$9,150
$8,237 38%
$6,998 $7,057
$5,697
$4,896
$4,238
$3,242
$2,777 $4,995 26%
$4,217
$1,652 $3,453
$2,760
$2,119
$1,590
$2,262 $2,468 10%
$1,510 $1,694 $1,875 $2,066
2011 2012 2013 2014 2015 2016
Source:
Forrester,
2011
Tuesday, February 14, 2012 4

5. Mobile
Coupon
Adoption
Rate
Projected
Users,
USA
(millions)
CAGR
96.8 5%
92.5
88.2
83.6
35.6 39%
28.7
19.8
13.3
2010 2011 2012 2013
Online
Coupons Mobile
Coupons
Source:
eMarketer,
2011
Tuesday, February 14, 2012 5

6. Objectives
For
Today’s
Webinar
Mobile
Marke,ng
for
QSRs:
1. Mobile
Industry
2. QSR
No_on
of
Value
3. Case
Studies
4. Opportuni,es
5. Takeaways
Tuesday, February 14, 2012 6

7. Reasons
For
Visiting
QSRs
“I
visit
fast
food
restaurants
primarily
because
they
____”
Save
Money
45% Save
Time
55%
Source:
Technomic,
2011
Tuesday, February 14, 2012 7

8. Favorite
QSR
Promotions
“How
appealing
are
each
of
the
following
promo_ons?”
Buy
one,
get
one
free 92%
Set
promotional
price 82%
Combo
meal
for
set
price 77%
Add
a
side
for
$1 71%
Free
appetizer/dessert
w/
entree 66%
Free
food/beverage
giveaway 64%
Source:
Technomic,
2011
Tuesday, February 14, 2012 8

9. Negative
Experiences
at
QSRs
“My
most
recent
nega_ve
experience
was
caused
by___”
12%
12% 18%
18% Staff
not
knowledgeable
Food
took
too
long
42% 14% Other
Order
taken
incorrectly
24% Too
long
to
order
14% Staff
was
rude
18% 19%
QSR Restaurant
Source:
Technomic,
2011
Tuesday, February 14, 2012 9

10. QSR
Notion
of
Value
QSR
marketers
need
to
deliver
not
just
cost
savings,
but
a
mashup
of
convenience,
,me-­‐savings,
speed
of
service
and
low
prices
Americans
within
arms
reach
of
their
mobile
phone
24/7
Morgan
Stanley,
2011
Tuesday, February 14, 2012 10

11. Objectives
For
Today’s
Webinar
Mobile
Marke,ng
for
QSRs:
1. Mobile
Industry
2. QSR
No,on
of
Value
3. Case
Studies
4. Opportuni,es
5. Takeaways
Tuesday, February 14, 2012 11

12. McDonald’s
Online
Mobile
Coupon
Tuesday, February 14, 2012 12

13. McDonald’s
Online
Mobile
Coupon
Takeaways:
Takeaways
...
Do
• Bridge
online
&
offline
• Secure
opt-­‐in
• Dynamic
field
inser,on
Don’t
• Limit
metadata
collec,on
Tuesday, February 14, 2012 13

14. Example:
Metadata-­‐rich
Sign-­‐Up
Tuesday, February 14, 2012 14

15. Burger
King
Airport
Proximity
Campaign
Tuesday, February 14, 2012 15

16. Burger
King
Airport
Proximity
Campaign
Takeaways:
Takeaways
...
Do
• Consider
audience
and
audience
demographic
for
proximity
mobile
marke,ng
Don’t
• Limit
calls
to
ac,on
to
a
single
engagement
channel
Tuesday, February 14, 2012 16

17. Example:
Multichannel
Call
To
Action
Tuesday, February 14, 2012 17

18. Qdoba
Free
Taco
For
An
Opt-­‐In
Tuesday, February 14, 2012 18

19. Qdoba
Free
Taco
For
An
Opt-­‐In
Takeaways
...
Do
• Focus
on
clarity
and
elimina,ng
user
error
when
developing
campaign
calls
to
ac,on
and
messaging
Don’t
• Ignore
preplanning
of
ongoing
interac,on
strategy
Tuesday, February 14, 2012 19

20. Example:
Ongoing
Messaging
Tuesday, February 14, 2012 20

21. Popeyes
Poll
And
Coupon
Tuesday, February 14, 2012 21

22. Popeyes
Poll
And
Coupon
Takeaways
...
Do
• Focus
on
interac,vity,
not
just
simple
outbound
message
blasts
Don’t
• Forget
to
educate
necessary
campaign
stakeholders
Tuesday, February 14, 2012 22

23. Mobile
Coupons
Refresher
Method
• Sta,c
• Dynamic
• Dynamic-­‐verified
Means
• App
• Messaging
• Web
Tuesday, February 14, 2012 23

24. Mobile
Coupons
Refresher
Method
Mobile
Marke,ng
Format
That
Led
to
a
Purchase
• Sta,c According
to
US
Smartphone
Owners
• Dynamic Text
Message 41%
• Dynamic-­‐verified Facebook 35%
Shopping
App 32%
Means
Twitter 20%
• App
LBS
App 15%
• Messaging
Nonshopping
App 11%
• Web
Source:
eMarketer,
2011
Tuesday, February 14, 2012 24

25. Taco
Bell
QR
Codes
Tuesday, February 14, 2012 25

26. Taco
Bell
QR
Codes
Takeaways
...
Do
• Commit
to
mobile
marke,ng
across
the
organiza,on
Don’t
• Fail
to
think
through
the
en,re
user
experience
Tuesday, February 14, 2012 26

27. Jamba
Juice
Mobile
Tuesday, February 14, 2012 27

28. Jamba
Juice
Mobile
Takeaways
...
Do
• Develop
a
cross-­‐channel
mobile
marke,ng
strategy
Don’t
• Forget
to
op,mize
for
mobile
devices
Tuesday, February 14, 2012 28

29. Example:
Mobile
Optimized
ESPN
mobile
page
components:
• Easy
to
view
on
smaller
screen
• Naviga,on
enhanced
for
mobile
devices
• Content
op,mized
for
quick
aUen,on
spans
Tuesday, February 14, 2012 29

30. Objectives
For
Today’s
Webinar
Mobile
Marke,ng
for
QSRs:
1. Mobile
Industry
2. QSR
No,on
of
Value
3. Case
Studies
4. Opportuni_es
5. Takeaways
Tuesday, February 14, 2012 30

31. Opportunities:
Breakfast
2011
Total
Restaurant
Sales:
$41
Billion
12% Breakfast
sales
All
other
restaurant
sales
88%
2011
2009
33% 54% 46%
67%
Consumers
who
ocasionally
purchase
QSR
breakfast
Don’t Source:
NPD
Group,
2011
Tuesday, February 14, 2012 31

32. Opportunities:
Campaign
Types
Survey
of
9,000
2011
mobile
marke,ng
campaigns
Refer-­‐a-­‐friend
Respond
to
refer-­‐friend
campaign 21%
Friend
conversion 6%
Increase
in
database
size 16%
Mobile
Coupons
Minimum
redemption
rate 6%
Average
redemption
rate 23%
Max
redemption
rate 40%
Source:
Self-­‐service
World,
2011
Tuesday, February 14, 2012 32

33. Key
Takeaways
1. Develop
cross-­‐channel,
interactive
campaigns
that
personally
engage
both
online
and
offline
consumers
2. Present
a
clear
and
compelling
positioning
statement
that
uniquely
distinguishes
the
brand
and
continually
communicates
that
vision
to
consumers
over
time
3. Focus
on
delivering
the
QSR
notion
of
value:
ease
of
use,
speed
of
use
and
payoff,
while
being
careful
to
not
introduce
too
much
complexity
or
disrupt
the
ordering
process
Tuesday, February 14, 2012 33

34. Any
Questions?
For
more
informa,on
visit
www.msgme.com
More
industry
informa,on
available
on
our
blog
@
blog.msgme.com
View
webinar
archive
@
hUp://msgme.com/c/
Solu,onsWebinars
Or
contact
us
directly:
marke,ng@waterfallmobile.com
Tuesday, February 14, 2012 34