Mobilize Your Loyalty Program with Mobile Wallet

Mobilize your loyalty program with mobile wallet MAY 20, 2014!

Emily Collins, Analyst at Forrester Research ! !!Julie Novack, SVP Mobile Solutions !!

#walletloyalty!

@ecollins31!@JulieRothNovack !

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©2014 Vibes All rights reserved. Confidential #walletloyalty!

Today’s speakers!

Emily Collins, Analyst at Forrester Research and lead author of: §  The Loyalty Program Participant Profile (published: February 20, 2014) §  The Forrester Wave™: Loyalty Program Service Providers, Q4 2013

(published: October 30, 2013) §  The State Of Loyalty Programs 2013 (published: October 3, 2013)

Julie Novack, SVP of Mobile Solutions at Vibes §  Mobile Marketer Women to Watch in Mobile (2012) §  The ABCs of Passbook & Google Wallet Presenter (February 6, 2014) §  Google Wallet & Apple’s Passbook: 5 key differences you need to

know Presenter (November 26, 2013)

© 2014 Forrester Research, Inc. Reproduction Prohibited 3


Empowered consumers demand more control


Your customers are “always on”

Your customers have more choices and can switch on demand



What is the current state of loyalty?


Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™ Customer Online Survey

Organizations are prioritizing their loyalty programs

Budget support is strong Loyalty is a key strategic imperative

“How has your loyalty budget changed year over year in 2013?”

43%

34%

3%

Increase Stay the same Decrease

Base: 50 loyalty program marketers; Source: Q3 2012 North America Loyalty Benchmark Online Survey



Business objectives focus on both retention and engagement


Consumers maintain a healthy

appetite for loyalty programs


Source: North American Technographics Customer Life Cycle Survey, Q2 2013

Over two-thirds of consumers belong to at least one loyalty program

5%

22%

22%

25%

26%

33%

34%

35%

37%

39%

60%

68%

Other

Gas station

Entertainment

Department store

Quick service restaurant

Shopper club

Airline/frequent flyer

Hotel

Specialty retail

Bank/credit card

Pharmacy/Drug store

Supermarket/Grocery store

Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs

“Which of the following types of customer loyalty programs do you belong to?”

On average, consumers belong to about 8 loyalty

programs.



Consumers participate in the programs they join

I regularly participate in most of the loyalty

programs I join 59%

I regularly participate in just a few of the loyalty programs I

join 36%

I rarely, if ever, participate in the loyalty programs I

join 5%


"Which of the following statements best describes your level of involvement with customer loyalty programs you join?"



Active program members are willing to pay and share

64%

59%

56%

43%

50%

52%

37%

51%

50%

44%

48%

36%

33%

24%

When I find a brand I like, I stick to it

A brand's reputation is important to me

I prefer to buy brands that I have owned previously

Price is more important to me than brand names

I would pay more for products or services that save me time and hassles

I often tell my friends and family about new brands, products, or services that I have discovered

I would pay more for brands or products consistent with an image I like

I regularly participate in most of the loyalty programs I join

I rarely, if ever, participate in the loyalty programs I join

Base: 3,266 US online adults (18+) who belong to loyalty programs

“How much do you agree with the following statements?” (4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)



Consumers view programs as a way to save

24%

48%

50%

64%

78%

I belong to too many loyalty programs

Loyalty programs influence how much I spend

Loyalty programs influence what I buy

Loyalty programs influence where I make purchases

Loyalty programs save me money

“How much do you agree with the following statements regarding customer loyalty programs?” (4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)



Program differentiation presents a significant

hurdle to success


Marketers struggle to effectively communicate with customers

24%

24%

25%

25%

26%

29%

41%

Managing program costs and points liability

Understanding customer interactions across all touch points (online, mobile, social, offline, back office)

Measuring the results of our loyalty program/ initiatives

Maintaining a consistent member experience across channels and touch points

Aligning our loyalty strategy with the overarching business/enterprise strategy

Delivering offers with a high perceived value

Ensuring member awareness/ understanding of the program and its benefits


“What are the greatest challenges facing your customer loyalty program and initiatives today?”


It’s time to seize the mobile moment.

A mobile mind shift has occurred

The expectation that any desired information or service is

available on any appropriate device, in context, at your

moment of need



Consumers have an appetite for mobile rewards

50% of loyalty program members want mobile gift cards and reward

certificates.

44% of consumers are interested in joining programs that offer mobile

coupons.


But loyalty marketers have yet to fully embrace mobile


The role of mobile in loyalty cannot be understated.


First, mobile boosts customer understanding

› Mobile helps marketers follow program members across the customer lifecycle

› Mobile channels are highly trackable

› Mobile interactions create new data streams


Second, mobile streamlines loyalty program utility

Then Now

Mobile simplifies the member experience, and gives members more control over when, where,

and how they participate.


Third, mobile increases the relevance of loyalty programs

› Contextual insights help marketers deliver more personalized marketing content

› But it goes beyond creating a mobile version of the loyalty card and offers.

› Mobile also creates new opportunities for engagement that go beyond typical program interactions


Key takeaways…

› Loyalty is harder than ever to earn, but mission critical to the success of your business. › Customer loyalty strategies need to evolve with a focus on

relationships, relevancy, and engagement. › Mobile channels create additional opportunities for

marketers to engage, recognize, and reward their best customers. › Delivering offers and content through mobile simplifies and

increases the utility of existing programs.

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Mobile Wallet 101 A “mobilized”

loyalty program

Getting started

#walletloyalty!

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loyalty program

Getting started

#walletloyalty!

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Mobile landscape overview!

Mobile marketing !

Mobile advertising!

Mobile !experiences!

Mobile service!

mobile display

ads rich

media ads

apps

mobile web experiences

m-commerce Mobile media buys

mobile wallet!marketing!

QR codes

SMS

MMS

mobile alerts

mobile database

loyalty program activation

service alerts

targeting & segmentation

push notification

payments

Programmatic (RTB)

service apps

mobile!coupons!

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The “non-payment” mobile wallet marketing movement!

§  Apple launched Passbook in September 2012

§  The new Google Wallet app launched in 2013 for iPhone & Android

Rewards certificates

Loyalty cards

Offers and coupons

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No words needed to explain the value to the consumer!!

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Vibes’ Consumer Study: 85% see the benefits of mobile wallet!

No Benefit

Digitizing paper items

Organizing on your

smartphone

Managing point

balances

Time sensitive

offers Automatically updated items

Location aware alerts

22% 19%

13% 13% 10% 7%

15%

Mobile wallet benefits

85% perceived benefit!Base: Total n=1,000

Source: Vibes 2013 mobile consumer survey – July 2013

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Mobile wallet marketing is making a big impact!

On average, 70% of consumers will save a Passbook offer to their phone when presented with a pass.

64% higher conversion rate over static mobile web coupons When email is activated

with Mobile Wallet – 8% increase in conversion !

Are people using it?! Does it work?! Does wallet lift email conversion?!

26% increase in AOV over static mobile web offers

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Many use cases for mobile wallet (non-payment) !

Event/VIP Passes The Account Card The Loyalty Card

Offers & Incentives

CarrierOne Account Number

12345678910

Our focus today

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Why mobilize your loyalty program?!

For the Consumer! For the Marketer!

§  Convenience §  Timely reminders (expiring points)

§  Location triggers

§  Great way to engage loyalty members §  Ability to update points real-time

§  Low cost location-based marketing

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loyalty program

Getting started

#walletloyalty!

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Seeing is believing…try it out!!

Text STYLECARD to 84237!

Google Wallet Apple Passbook Mobile Web

Fall-back Page

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Deliver lock screen notifications to consumers

Apple’s Passbook – Mobile Loyalty Card!

Keep Reward Balance above the

fold for easy viewing

Dedicate label value to showcase loyalty

program join date

Prompt users to download your app

Include information like: •  Location of

favorite store •  Phone number •  Store hours

Feature unique loyalty ID beneath

barcode

Terms and conditions located beneath all company information

Personalize with name, points, and even colors for loyalty tiers

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Assign a unique barcode ID to track

redemption!

Include retailer name and offer!

Make sure logo is sized appropriately! Include store

information and hours!

Put important information like exclusive offers in the “Messages” field!

Place information about the loyalty program at the end!

Google Wallet – Mobile Loyalty Card!

1:1 personal messaging to loyalty members with offers, custom messages & more

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Mobilize reward certificates too…!

Deliver time-sensitive reward certificates and send special offers to members

Google Wallet Apple’s Passbook

41


Three seamless ways to distribute mobile wallet loyalty cards!

Email!

App!

Text!

42


Email is one of the easiest channels to activate with wallet!

1. Desktop email 2. Mobile email

43


For text, leverage device-aware, trackable, shortened URL !

Mobile Web Fallback Page

Google Wallet

Apple Passbook

44


Google Wallet and Passbook are location-aware solutions!

Vibes

45


iBeacons + Passbook – the next wave of shopper engagement!

46


Raise awareness about loyalty program and available rewards

Drive engagement with real-time points notifications

Drive foot traffic and enable easy redemption at POS

Offset expensive call center calls by providing timely info

How mobile wallet can strengthen your loyalty program

AWARENESS! ENGAGEMENT! TRANSACTION! SERVICE!

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loyalty program

Getting started

#walletloyalty!

48


Think holistically about your mobile wallet marketing strategy !

1. Create!

2. Distribute!

3. Manage!4. Measure!

5. Optimize!

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Up and running in 10 days

1. Prioritize your use cases!

Event/VIP Passes The Account Card The Loyalty Card

Offers & Incentives

CarrierOne Account Number

12345678910

Up and running in 3-6 weeks depending on

integration needs

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2. Determine best ways to distribute mobile wallet loyalty cards!

Email!

Web!

App!

SMS!

Direct mail!

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Preferred method for receiving mobile wallet content

Email 46%

20% 19% 11% 4%

Text message from the retailer

App from the retailer

Direct mail Mobile banner advertisement

Base: Total n=1,000

Email and text are preferred methods !

Source: Vibes 2013 mobile consumer survey – July 2013

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3. Select a platform that makes mobile wallet management easy!

Mobile wallet metrics

Single “smartlink”

Manage Passbook &

Google Wallet in one interface

Manage locations (geo or iBeacon IDs)

53


Make sure to build solutions for both iPhone and Android users !

Google Wallet Apple Passbook

54


4. Identify KPIs and actively update and monitor campaigns !

55


Key takeaways!

Determine wallet use cases for your business

Promote your mobile wallet content through multiple channels – email and SMS for starters

Leverage location-based triggers to drive engagement for your loyalty program

Select a platform to make it easy to actively manage and monitor performance

Test today to get ready for holiday

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Get the Mobile Wallet Handbook!

www.vibes.com/handbook

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Q A & Emily @ecollins31

Julie @JulieRothNovack

John @JohnHaro

#walletloyalty!

Mobilize your loyalty program with mobile wallet MAY 20, 2014!

Emily Collins, Analyst at Forrester Research ! !!Julie Novack, SVP of Mobile Solutions !!

#mobileloyalty!

@ecollins31!@JulieRothNovack !

Thank you!