The document discusses how retailers can use mobile marketing strategies like location-based services and mobile coupons to drive customer engagement and sales through targeted mobile messaging to customers based on their location, purchase history, and other consumer data. It provides examples of how retailers are implementing mobile marketing campaigns using SMS, MMS, and location-aware messaging to promote products, build customer loyalty, and increase in-store traffic and sales. The document also outlines best practices for mobile coupon redemption at retail point-of-sale systems.

1. Mobile Enabling Retail Marketing
An overview of retail mobile marketing
$1 off Ghirardelli concepts, strategies, tactics and
Squares Gift Sets technologies with industry & iLoop Mobile
Expires 10/25/10 case studies.
Prepared by:
Michael Ahearn, VP Strategic Marketing
2221621217-2090-04
michael.ahearn@iloopmobile.com

2. 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

3. Why Mobile Marketing for Retail?
Marketing objectives mobile can achieve:
• Customer acquisition with database build • Improved customer service
• Generate retail and Web traffic • Promotional communications
• Consumer awareness • Cross selling and up-selling
• Customer loyalty and trust with brand • Lead generation and prospecting
affinity
• Increased interactivity with
• Customer retention customers or audience
• Viral marketing/word of mouth • Increased use of traditional
& Web marketing channels
• Product sales & content monetization
Mobile is the most effective direct marketing that exists.

4. Shoppers: Requested In-Store Mobile Capabilities
Please rate how useful the different pieces of information would
be to you when you are shopping in a store (% very helpful)
Feb 2010 Communispace In Store Mobile Experience Survey

5. In-store Mobile Promotions
Enticing call to action on in-store signage, shelf talkers
and on the product itself
Why Mobile for In-store
• Reach interested customers
• Immediate incentive to participate
• Increase sales conversions
• Ability to integrate with POS system
• Customer loyalty programs
• Customer info & service capabilities
Call to Action Examples:
• Text-to-Win sweepstakes
• Text for a discount/coupons
• Text for valued alerts
• Text for VIP treatment
• Text for in-store help
• Product information
Ace Hardware Aisle 411. In-store mobile service gives promo info
and helps find products in the store via IVR and sends coupons
and product promos via SMS.

6. Retail SMS Interactivity
• Simplify food and wine pairings with in-store mobile “wine guide”
• Text the desired food type, cuisine, specific dish or main
ingredient to 411511 (ex. CASSOULET to 411511)
• Data sent to food pairing database for reply SMS
• 3 wine pairing choices are sent back via SMS
• Helps shoppers with immediate advice, overcoming “wine choice
overload” when dealing with store shelves
• Promoted in retail stores with shelf talkers and neck hangers on
product itself
• Simple yet effective example of using SMS to achieve brand
marketing objectives

7. Mobile Integrates With Other Channels
Mobile call to action can be integrated into ALL marketing channels

8. Mobile Enabled Point of Sale
Mobile is can provide customer service or execute sales

9. Mobile Incentive Marketing for Retail
8

10. Basic SMS Promotional Messaging
• Mandee used in-store signage in
119 stores to present the call to
action to win a $500 shopping
spree
• Instantly redeemable mobile Print Opt-in
coupon was also sent for 20% off MANDEE
any single item purchased that day
• Entry into the sweeps also offered
opt-in to Mandee Mobile Alerts
subscription for exclusive weekly
SMS messages on events,
promos, and special offers
• Subscription opt-in is also available
via Web form capturing customer
profile data
• Simple “show the message”
redemption with trained in-store
associates
Web Opt-in

11. Scaled Deployment of SMS Campaigns
Direct marketing programs for hundreds of
small businesses nationwide are reporting:
• 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
pays for itself
• Between 250-1,200 opt-ins in first few McDonalds Thanks You
Enjoy one FREE Small
months–one retailer had 900 in first two McCafe coffee. Valid 1
weeks week.
Help: moneymailer.com
• Spike sales during slow weekdays and Opt-out: Reply STOP
on promotional holidays MCDONALD
Msg&DataRatesMayApply.
• Reported 4% increase in incremental
sales

12. Multimedia Messaging (MMS)
• Multimedia Messaging Service (MMS) is a rich media
messaging service that allows mobile users to send and
receive messages that can include graphics, animations,
slide shows, photos, audio, video, and unlimited text (no
160 character SMS limit)
• It can it provide marketers with increased ad
effectiveness over SMS
• Unlike the Mobile Web, this media resides on the user’s
mobile phone
• Today, available on most mobile phones but some
handset/carrier support variations which may require
WAP offload
• MMA has established ad standards for MMS
• So far, most US MMS ad campaigns in the US have
been carrier-specific, but MMS marketing on an
interoperable cross carrier short code is here

13. Mobile CRM & Segmented Messaging
12

14. Customer Acquisition with CRM
• Get more data than keyword
based opt-in carrier metrics
• Opt-in to mobile “coupon clubs”
via online Web form or mobile site
• User selectable coupon offers
• 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 viral component
Web Opt-in
Mobile Site Opt-in

15. SMS Dynamic Messaging & CRM Integration
• Use CRM databases for dynamic
messaging—insert names, use profile
data and preferences to personalize
messaging and create rule sets that
increase relevance and conversion
• Integrate mobile campaigns with Hello John, The San
Message
existing or external CRM databases, Francisco Macy’s components
data feeds and content management stores have 20% off all sourced from
Kenneth Cole shoes existing CRM
systems and suits until Sunday. database and
Txt STOP to stop.Txt dynamically
HELP 4 help. Msg & integrated into
• Integrate with your existing reporting Data Rates May Apply. the message
systems—send data from the mobile
platform to external reports and view
reports in your reporting systems

16. Smart Messaging: Database Integration
“Everyone receives the same offer” mobile promos or
coupons can have unknown relevance when delivered
• Smart Messaging integrates with data sources such
as news, weather, finance, CRM consumer profile,
inventory etc. instantly adding relevance
• Smart alerts can know:
! Who the customer is
! Where they are
! What’s happening around them
The heat wave
! When they want something continues here in LA!
! Why they need or want it Cool off at lunch with
an ice cold root beer
Advantages to Smart Messaging: float, free with every
Galaxy Meal purchase
! Personalization and point-of-need relevance at any AstroBurger
increases participation location. Code:34ru3
! Time and place relevance increases Exp: 7/12/10
participation
! Contextually relevant messaging increases
acquisition, conversion and loyalty

17. Smart Messaging: User Flow
Text STORE + your zip code to 44264 to
receive a SMS coupon every month for SMS Only Coupon:
20% off your favorite fashions
Contextually relevant
coupon is delivered
based on keyword +
It’s a scorcher in Miami database referencing
Freezing in NY today?
Database today! Keep cool with with Keep warm with with a
unique redemption
STORE + your breezy late summer code. sweater. 20% off
wool
zip code to 44264 Weather skirts. 20% off at any all sweaters at any
store. Code t239r Exp. store. Code 34r39r Exp.
Stock Market
10/31/11 10/31/11
Location Look Up
Product Inventory
Past Consumer Purchases
Any Other Event or Data Sets
Consumer Profile Data
Contextually relevant coupon STORE + 10507
delivered based on keyword/ Sends coupon for sweaters
zip referenced against based on cold weather
Database receives weather database reading for opt-in zip code
62407 keyword opt-in and
Store 33128 Here’s something By Weather
delivers a coupon
special for you to
based on external celebrate your birthday.
events or information Come into Dressbarn
in the database and get 20% off any
Miami
item. Code f5mt Exp.
5/31/11
By Consumer Profile Data
Messages sent based on stored
customer profile data with
Text opt-in for either single coupon unique redemption code.
or to opt-in to couponing alert group

18. Mobile Coupon Redemption
17

19. Couponing Landscape
The Value of Couponing
• 57% of consumers would not have bought an item if they didn’t have a coupon
• The average amount spent is 77% more with coupon than without
(study figures: $216 with, $122 without)
• Customers are more likely to purchase from the retailer again if they use a coupon
(91% with, 85% without)
Source: Compete, Inc.
Mobile coupons are one of the fastest growing, most effective and easy to
implement solutions available to marketers.
• Segmented database build and targeted message delivery
• Detailed customer transaction data capture
• 10x redemption rates
Source: www.promotionalcodes.org.uk/15311/mobile-advertising-and-the-rise-of-coupons | www.fastcodesign.com Infographic of the
Day by Tiffany Farrant (Borrell Associates Report, ComScore, Airwide Solutions, Compete, MarketingCharts.com, MySkyNet, Juniper
Research, MMA)

20. Mobile Couponing Value Proposition
Mobile coupons can capture key customer transactional data
using nothing more than a customer’s mobile phone number.
• Easy-to-implement, affordable and effective marketing campaigns
• Highly targetable, relevant messaging to diverse customer groups
• Captures and leverages transactional data for new marketing offers and
messaging
$1 off Ghirardelli
Squares Gift Sets
Expires 10/25/10
• Marketing campaigns are directly linked to top line revenue
• Builds an ongoing, segmented customer database 2221621217-2090-04
• Up-to-the-minute measurable results using advanced analytics
• Access and add mobile redemption data to your RFM measurements to better
influence customer index scoring and up-sell/cross-sell potential
• Set the stage for improved customer segmentation, modeling and life time
value measure—target and deliver the right offer based on past purchase data

21. Retail Objectives for Mobile Incentives & Coupons
Achieve Your Marketing Objectives
• Drive traffic to stores, Websites and events
• Motivate purchase with easy to redeem discounts
• Build loyalty and maintain existing customers
• Build brand/service awareness
• Encourage product adoption
• Promote sell-through

22. Mobile Coupon Tactical Benefits
• No paper coupons to remember or carry…coupons are
saved on phone and tied to customer’s phone number
• Offers saved automatically to customer’s account which is
tied to their phone number—customer’s phone number is
their redemption code
• SMS + pin pad terminal redemption works on ALL phones
(not just smart phones or apps) Ghiradelli Coupon
Get $1 off the deluxe
Ghiradelli Chocolate
• Coupons are always on customers’ person, always available Square Sets.
Exp:9/30/10
for redemption Msg & Data Rates May
Apply
• Increases checkout efficiency over paper and eliminates
misuse/fraud
• No new hardware required, simple integration with existing
POS PIN pads, optical scanners and loyalty cards offering an
easy to deploy closed loop system
• Redemption is trackable and ROI is highly measurable with
digital reporting and analytics

23. Retailer Perspective: Mobile Coupon Redemption
NO check out slow-down
NO new hardware (scanners, servers, PIN pads or readers)
NO bad user experience and resulting lost revenue Create
Offer
NO limited user phone reach
Refine Deliver New
Targeting Coupon Hardware
Fraud
Offer POS
YES minimize cashier involvement Settlement Redemption
No Integration
YES leverage existing retail technology systems Proprietary
Solutions
YES maximize shopper participation and reach (older phones too!)
YES integrate with discount card programs

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

25. Full Cycle Mobile Coupon Redemption
1
6 2
5 3
4

26. Location Aware Messaging
25

27. Location Based Services Growth
• High Growth: LBS adoption will accelerate
across the globe: total addressable global
market for GPS navigation and LBS will
rise by 51% (CAGR) to $13.4 billion in
2014, from $1.6 billion in 2009
• LBS search and advertising will be fastest
growing segment in LBS, rising from
$207.3 million to $5.9 billion in 2014
• By 2014 there will be 780 million unique
global users of LBS search and advertising
with 15.6 billion click throughs
• North America (U.S. and Canada) will
account for 32.4% of the world market
share for GPS navigation and LBS spend
in 2014
• North America will lead the growth in LBS
search and advertising, with 136% rise
(CAGR) reaching $2 billion by 2014
IE Market Research “3Q 2010 Global GPS Navigation and Location Based Services Forecast”

28. LBS: Real-Time Subscriber Search
R
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29. LBS: One-Time Location Aware Message
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30. LBS: Geo-Fencing
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31. LBS Geo-Fencing: The North Face
North 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: Placecast, LocAid et al…

32. mCommerce: Retail Sales via Mobile
31

33. The Approaching Tsunami of mCommerce
• In the U.S., mCommerce sales are expected to more than triple to upward of $7 billion by 2014 from
about $2 billion today
• Approx. 50% of smart phone owners say they have already, or soon will, use their phones to do
mobile shopping
• Annual global revenues from mobile devices for Amazon totaled $1 billion in 2010
• Ebay expects its 2010 mobile commerce revenue to top $1.5 billion—an item is sold on Ebay Mobile
every 2 seconds
• In 2015, shoppers around the world are expected to spend about $119 billion on goods and services
purchased via mobile phones

34. mCommerce Marketing Spend by Sector/Age
Percentage of 2011 mCommerce spend by product category and age group

35. mCommerce Single Transaction
Customer sees an The scan initiates a
advertisement for Getitcard/Scanbuy
Phillips in traditional landing page that
media (e.g billboard ) includes product info
and decides to “Scan and a payment window
´n Buy” or text to buy
the shaver
The buyer
enters their
payment card
details and
Save 15% on the new Philips 7000 address sent
shaver. Scan ´n Buy now or Bancore handles the by URL or
text PHILIPS to 87812. transaction and email
informs merchant with
required information

36. mCommerce Simple Payment Solutions

37. mCommerce Cast Study: Steve Madden
Steve Madden Mobile Site
• Full mCommerce environment for
shoe purchases
• Uses familiar Web design and
interface for mobile site
• Not an app, this has the full reach of
mobile Internet (mobile Web
browsing has nearly 30% use
penetration across all mobile users)
• Include “You Might Like” engine to
make buying experience even
better
Results*
• 10.5% of total Web traffic for Steve
Madden is coming from mobile
• 250% increase in traffic from 5/10-10/10
• Percentage of total Web traffic that is
mobile is trending upwards fast: April 2010
4.4%, May 7.9%, June 8.6%, July 9.5%,
October 10.5%
• 880,000 visits in 6 months totaling 6.25
million minutes
• Average time on site 7 minutes
• In 6 months 7,856 products sold on
mobile site for $520,866 in revenue with
average order at $83.70
*Source: Mobile Marketer 10/27/10

38. Making mCommerce Social
Steve Madden Mobile Site Evolution
• Social marketing enablement added
to mCommerce functionality
• Uses Facebook “Like” functionality
that is pasted to users Facebook wall
• Enables viral product marketing
tactics
• Includes “You Might Like” engine to
make buying experience even better
• The addition of the social elements
Increased traffic 30% in 24 hours
• Using Metrics: shoes that get the
most “likes” get special promotions
focusing marketing on higher
performing products to increase
revenue
• To drive people to use “Like” in
mobile site, Steve Madden promotes
functionality in their own Facebook
page

39. Large Retailers: Target mCommerce Site

40. mCommerce Best Practices
• It is all about the 60 second transaction!
• Create the right-sized product catalog for mobile
• If you have large catalogs use groups and
categories
• Combine with mobile coupons or promos
• Keep the UI simple with “one-click to buy”

41. Social Networks and Mobile
Mobile Web is growing faster than desktop did.
Social sites serve up more than HALF of all page
views on the mobile Web (USA)
The number of people accessing the mobile Web
is expected to overtake the PC as the most popular
way to get on the Web within 5 years.
Linking rewards programs to mobile
social networks
Source: How Interactive Marketers Can Reach US Mobile Social Network Users, Forrester, December, 2009

42. Mobile for Social 2011
Growth of Mobile Social Networking
• Up over 350% in 2010 (Nielsen)
• Users that access Facebook on their phones are
twice as active
• 35 million mobile Facebook users accounts for 15%
of all mobile users and half of all mobile Internet
users
• Average Foursquare user checks in 3-4 times a day
Growing But Still an Infant
• Twitter has only 7% penetration amongst all SMS
users—it’s a great start but may be leveling out
• While Foursquare has great user engagement
numbers (users check in 3-4 times/day), there are
only 5 million users globally, with 60% in the U.S.
which is only 1% of U.S. mobile subscribers
• Only 4% of online adults have used social
location-based applications
• “Check-in” apps seem to be a niche marketing
play at the moment in terms of reach

43. Leading Industry Resources
• Companies That Can Help You
! Advertisers
! Marketing Agencies
! Direct Marketers
! Solutions & Service Providers e.g. iLoop Mobile
• Industry Portals
! Mobile Marketing Resources (open community) www.mobilemarketingresources.net
! Mobile Marketer: www.mobilemarketer.com
! Mobile Commerce Daily: www.mobilecommercedaily
! Mobile Thinking: www.mobithinking.com
• Trade Associations & Industry Enablers
! Mobile Marketing Association: www.mmaglobal.com
! Direct Marketing Association: Mobile Marketing Council
http://www.the-dma.org/segment/mobile
! US Short Codes Administration www.usshortcodes.com

44. Thank You
GO MOBILE!
Visit www.iloopmobile.com to learn how we can help you mobile
enhance your marketing.
Contact sales@iloopmobile.com (408) 907-3360 and we’ll help you
get started.
http://twitter.com/iloopmobile
http://www.facebook.com/group.php?gid=71337661648
http://www.linkedin.com/company/iloop-mobile
http://www.youtube.com/user/iLoopMobile