Retail Mobile Marketing: Driving Customer Acquisition, Traffic, Loyalty and Engagement using SMS, MMS, LBS and financial statements.

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Mobile Marketing for Retail January 13, 2012

• Industry leading technology and services make it fast and easy to create, manage and analyze mobile marketing campaigns and content delivery initiatives worldwide

• Award winning iLoop Mobile Platform for creating state-of-the-art SMS/MMS campaigns, mobile sites, mobile coupons, CRM & LBS segmented messaging, apps and other mobile marketing initiatives

• Industry leader in mobile marketing strategy, managed service campaign delivery and professional services

• Campaign design that achieves mission critical marketing objectives, answering the individual needs of customers

• Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies

About iLoop Mobile

The Big Picture

Mobile drives consumer engagement

Why Mobile Marketing for Retail?

• Customer acquisition with database build

• Generate retail and Web traffic

• Consumer awareness

• Customer loyalty and trust with brand affinity

• Customer retention

• Viral marketing/word of mouth

• Product sales monetization

Marketing objectives mobile can achieve:

• Improved customer service

• Promotional communications

• Cross selling and up-selling

• Lead generation and prospecting

• Increased interactivity with customers or audience

• Increased use of traditional & Web marketing channels

Mobile is the most effective retail marketing that exists.

Shopper Connect Mobile Marketing

4

Mobile is most effective when tactics are subservient to marketing strategies and objectives across the customer journey.

SHOPPER CONVERT

Convert shopper to buyers

LOYALTY & RETENTION

Deliver value

ENGAGEMENT

Establish brand preference

✓SMS

✓Mobile Web

✓Sweepstakes

✓Mobile Video

✓Mobile Web

✓Apps

✓SMS/MMS

✓Location Services (GPS)

✓Mobile Web

✓SMS/MMS

✓Mobile

✓Coupons

TRAFFIC DRIVER

Increase foot traffic

✓ ✓ ✓ ✓ ✓

✓ ✓

✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓

✓

✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓

✓

SWEEPSTAKES MOBILE CRM MOBILE WEB

& APPS

OPT-IN

DATABASE

MOBILE

PROFILE

GATHERING

SMS/MMS

PUSH ALERTS TEXT TO WIN APPS

SMS WEBSITE/

FACEBOOK

WIDGETS

MOBILE COUPON

BRAND

AWARENESS

ENGAGEMENT

PERCEPTION

ACQUISITION +

LEAD GEN

LOYALTY +

REWARDS

RETENTION +

UPGRADE

BELOW THE LINE MARKETING OBJECTIVES

Choose Tactics to Fit Objectives

ABOVE THE LINE MARKETING OBJECTIVES

Where Mobile Can Take Retail

• Build and integrate your CRM database for segmented marketing messages (SMS/MMS) that will improve and drive store traffic and customer loyalty based on customer preference and profile

• Increase product information via push marketing that relates to online behavior data (cookies) to drive store traffic with option of relevant coupon

• Deliver incentive marketing programs via mobile that will increase customer loyalty and retention with option of full POS redemption/tracking

• Make your marketing communications location relevant with LBS messaging campaigns based on real-time carrier lookup

• Deliver anytime, anywhere access to rich content, information and purchase via the mobile web and apps

• Create rich media messaging (MMS and mobile web) for PUSH marketing to drive customer engagement, loyalty and store traffic

• Offer the latest technologies for mobile engagement (ex. 2D bar codes) that facilitate customer interaction and increase customer satisfaction

• Enable customer service engagement via mobile for customer statements, loyalty program access, and shipping/billing alerts

MMS account/loyalty point statements

• Instant graphic analysis across calls-to-action, performance metrics and traditional media channels

• Analyze which media channels and impressions activate the most mobile opt-ins and conversions

• Slice-and-dice data depending on different needs, views, time increments and objectives

• Measure web use, behavior and preferences using familiar online metrics

Mobile Includes Precise Analytics

Real-time measurement and reporting on messaging campaigns and site traffic/behavior

SMS/MMS

Mobile Web Site & Apps

Key Retail Demo Example: Moms, 25-49, HHI $75k+ (Not ethnic specific)

Demos & Psychographics

Top Mobile Activities

‣ Median household income $75k

‣ Price sensitive, majority say they „shop around‟ before making a purchase

‣ Brand loyal

‣ Are influenced by trends, i.e., “what‟s hot”

‣ 4 out of 5 say they are always willing to try new things

Device(s)

Most likely to be on Tier 1 carriers with 3G or 4G connection and ―unlimited‖ data and messaging

1. The average smart phone user spends over an hour a day interacting with the device, and one of the top three activities is shopping.

2. Target group cares about convenience and anytime, anywhere access.

3. SMS most preferred mobile channel.

4. Majority of mobile purchases are between $20-99

Key Takeaways

Half own smart phones.

11%

21% 24% Use their phone to find/redeem a coupon

Use their phone to check the status of an order

87% Send/Receive SMS Research using phones 38%

13% Regularly enter mobile sweepstakes 39% Send/Receive MMS

Regularly use mobile coupons

Mobile Strategy Follows Technographics

Recommended customer touch points determined by customer mobile profile and strategic objectives

Awareness & Purchase

Purchase Incentives Customer Retention

Brand Loyalty

Marketing Goal

Appropriate Mobile Tactic

Use SMS/MMS to alert customers to new products or promotions

Send time-sensitive cross sell messages or “next product” reminders as child enters new age groups

Create Mobile Site Create alert opt-in to SMS/MMS mobile incentives (coupons, sweeps, promotions etc.)

Methodology: Profile—Strategy—Tactics

Most Prevalent Behaviors for Mobile Shopping

ANGELS DATA SLIDES

1 in 3 Mobile Users

1 in 4 Mobile Users

1 in 5 Mobile Users

SMS | MMS Marketing

Why Mobile Messaging?

Immediacy

Engagement

Personalization

Performance

Interactivity

• 5/5/5 Axiom—5 days print, 5 hours email, 5 hours SMS/MMS

• Stickyness—unlike other fleeting messaging (social) messages stay on phone

• Direct Consumer Response—click to call, click to web, POS redemption, SMS/MMS response

• Messages can be personalized to interests, needs and profile of individual consumers or groups

• 300% increase of SMS opens vs. email

• 60-70% of emails sent are blocked

• Conversion rates in double digits and as high as 50%

• Increase purchase intent as high as 40%

• ROI branded campaigns reporting as high as 1000%

• Especially with MMS, increase user interest with rich media interactivity

Hello John, Albertson‟s @ California & Franklin has special packages of Ballpark Franks where you can win season tickets for the Giants. Pick some up to grill for today‟s game.

SMS + Smart Phones = Success

SMS Marketing Campaigns

• SMS subscriptions & alerts with CRM segmentation

• Promotional marketing texts

• Standard mobile coupons with redemption codes

• Smart SMS Messaging integrating database conditions (weather, zip) for segmented messaging

• Mobile coupons integrating POS redemption/tracking

• MMS video and rich media messaging

• On-pack promos

• Consumer data gathering

• Broadcast text initiatives

• Instant win & sweepstakes

• Quiz, poll & vote

• Text to Screen

• Links to mobile sites

• Publisher mobile content downloads

• Click-to-call (IVR)

• Much more

iLoop Mobile enables a wide variety of

solutions and marketing services for use

in mobile marketing campaigns including:

Thanks for joining the VANSMOBILE ALERTS. We’ll send you offers on skate, surf, snow, BMX, girls, music and more, plus mobile sweepstakes!

CRM Based SMS/MMS Marketing

• Negative aspect of one message for all recipients from customer perspective…‖why did I get that message?‖

• Deliver segmented SMS messaging using CRM data assuring relevance, increasing opt-in, customer acquisition, engagement, conversion, and ultimately revenue

• Personalized messaging on their personal device extends the brand into a 1 to 1 relationship with customers increasing loyalty and engagement…‖you know me!‖

• Integrates into and leverages data in existing CRM databases, email databases and loyalty marketing merging customer’s mobile profile and preferences data

• Part of cross channel marketing that can bring surgical relevance to mobile Web, MMS and other rich media environments

• Increase the redemption/conversion/sales of your direct and incentive marketing while cutting costs

• Add a layer of relevance and measurement not available to basic keyword based SMS marketing that reduces opt-out and database loss

Vans Alerts

Vans Skate Club Special offer 20% all Ska Skate shoes this Sat. all Vans stores. Show this code 4rrrsk for discount.

Text HELP for help. Text STOP to cancel. Msg&DataRatesMayApply 877-561-8045 TC:tc.mtiny.mobi

Message components sourced from existing CRM database dynamically integrated into the message (name, local store, relevant products)

Hello John, The San Francisco Microsoft store has 20% off all Guitar Hero accessories until Sunday.

Txt STOP to stop.Txt HELP 4 help. Msg & Data Rates May Apply.

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 existing or external CRM databases, data feeds and content management systems

• Integrate with your existing reporting systems—send data from the mobile platform to external reports and view reports in your reporting systems

Hello John, The San Francisco Macy‟s stores have 20% off all Kenneth Cole shoes and suits until Sunday. Txt STOP to stop.Txt HELP 4 help. Msg & Data Rates May Apply.

Message components sourced from existing CRM database and dynamically integrated into the message

• 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

• Delivery of bar code graphic coupons (right), as well as potential to delivery one-click videos, animation and audio.

MMS For Retail

Best Practices: Horizontal Integration

Mobile call to action can/should be integrated into ALL marketing channels

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Shared mail 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

• Reported 4% increase in incremental sales

McDonalds Thanks You

Enjoy one FREE Small McCafe

Help: moneymailer.com

Opt-out: Reply STOP MCDONALD

Msg&DataRatesMayApply.

Mobile Enabled Direct Marketing Success Rates

McDonalds: Enjoy one

FREE Small McCafe.

Code 34d83w Exp.1/6/10

Help:mmcoupons.com.

Opt-out: Reply

MCDONALD STOP

Msg&DataRatesMayApply

20

Case Examples: Customer Acquisition

OBJECTIVE:

To drive traffic to retail stores and increase sales by creating and utilizing a mobile

database of customers.

STRATEGY:

Build an opt-in database for delivering SMS offers for in-store only discounts and

promotions, as well as delivering key product awareness messages.

TACTICS:

Incentivize initial group opt-in with instant win and sweepstakes entry, building the

opt-in group via in-store, direct mail and Web promotion of the keyword/short code

for the SMS initiative.

Secondary phase created a Web-based SMS alert club opt-in capturing customer

profile and preference data for future segmented messaging.

RESULTS:

• 10,000 opt-ins first month

• 50,000 opt-ins after 8 months

• 150,000 opt-in customers and growing to date

Basic SMS Marketing: US National Retailer

You’re in with Mandee Mobile Alerts. Take 20% off your purchase of $50 or more today, Code 3rr457 exp.12/27/11. See a Mandee associate in-store for details.

MANDEE

Web Opt-in

Print Opt-in

• Mandee used in-store signage in 119 stores to present the call to action to win a $500 shopping spree

• Instantly redeemable mobile coupon was also sent for 20% off 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 CRM opt-in is also available via Web form capturing customer profile & prefs data

• Simple ―show the message‖ redemption with trained in-store associates

CUSTOMER ACQUISITION

+

INCREASE STORE TRAFFIC

LOYALTY

BRAND ENGAGEMENT

Women’s Apparel

Email

23

Case Example: Loyalty

24

OBJECTIVE:

To drive traffic to G by Guess stores and increase sales by utilizing G

by Guess’ mobile database of customers.

STRATEGY:

G by Guess offered a 20% off in-store only promotion to their mobile

subscribers. Subscribers received an SMS message that read:

―G by GUESS loves you. Show this message at any G by GUESS

store & receive 20% off a single purchase today thru October 19,

2008. See an associate for details.”

RESULTS:

• 23% redemption rate

• 7 times the redemption rate of any direct marketing offer in G by

Guess’ history including direct mail, email, etc.

• <1% opt-out rate

Loyalty Case Study: G by Guess Mobile

G by GUESS loves you. Show this message at any G by GUESS store & receive 20% off a single purchase today thru October 19, 2008. See an associate for details

Family Dollar Stores: Loyalty & Engagement

Text JOIN1 to 273283

Mobile incentive offers

received as loyalty alerts or

POP opt-in for specific

product promotions. Message

can include link to site for

more product information or

multiple promos.

MMS Marketing: Loyalty & Personalization

Macro: MMS resulted in higher customer spending than those who received email or SMS marketing for the brand.

Infacet: Sent to highest value customers using CRM based segmented messaging.

This is a standard direct marketing practice deployed via mobile.

An MMS can can include a single graphic, a video or an animation, and can embed a site link in the SMS portion of the MMS. MMS offers unlimited text length in any message.

27

Case Example: Drive Store Traffic

Driving Traffic: Radio Shack

• Consumer opts-in to SMS loyalty messaging program ―Radio Shack Txt 2 Save‖

• Promotional messages arrive as SMS messages weekly with mobile landing page links or MMS providing mobile coupons with bar codes scanned/redeemed at retail

• Coupons can be simple SMS with ASCII promo code in SMS for store or web redemption, no bar code required

Bar coded offer provide

incentive for in-store on

online redemption (traffic).

MMS Use Case For Specific Promotion

Campaign Metrics: 5:1 performance over previous SMS/email campaign

30

Case Examples: Customer Engagement

Best Buy: Mobile Enabled Point of Sale

Mobile is can provide customer service or execute sales

Treasury Wine Estates

• 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

33

Case Example: Integrated Mobile Marketing

Integrated Mobile Marketing: maurices

• Leading women’s fashion brand with over 700 stores nationwide

• Mobile program promotion was then integrated into all brand communications

• In-store (posters, window clings)

• Facebook fan pages & ads

• Direct mail

• Print ads

• Sales associate word-of-mouth

• Website

• Unique keywords for each channel tracked the effectiveness of each channel

• Delivers coupons, exclusive content, style advice, fashion tips, Q&A options and in-store promo alerts

• Instant 20% coupon delivered to incentivize opt-in

maurices Mobile Style Club

maurices Mobile Style Club • Promoted in all brand communications and

marketing channels

In-store Signage

College Bookmarks

maurices Credit Card

Integrated Mobile Marketing: maurices

36

maurices Mobile Style Club: Web Opt-in

Integrated Mobile Marketing: maurices

37

maurices Mobile Style Club: Direct Mail Opt-in

Integrated Mobile Marketing: maurices

maurices Mobile Style Club: Coupons • 5,000 customers opting-in within the first month

• Over 20,000 after four months

• Redemption rate for mobile coupons is consistently over 60 percent

• Over $1M revenue directly attributed to mobile program in first four months

• Average spend per customer per mobile redemption was $70

• Continues to grow and remains a consistent sales driver for both the stores and maurices.com, and drives social traffic

Integrated Mobile Marketing: maurices

maurices.com: 43%

In-store promo: 35%

Facebook: 7.5%

Direct Mail: 6%

Combined Other: 8.5%

OPT-IN SOURCE

39

maurices Mobile Style Club: CRM Segmented Messaging

• Using the OMG keyword, members can reply to messages and get individual responses

• Responders can also be directed to the mobile version of the brand’s Facebook Fan Page

• Hot topics can be identified and shared with the entire group

Integrated Mobile Marketing: maurices

MMS: Retail Account Mobile Statement

• Customer opts-in to receive ―push‖ monthly statement on retail account for credit card, reward points, credits, balance due, account activity or any other account information

• Customer can ―pull‖ his statement at any time via SMS with keyword + PIN

• System can recognize phone number of user requesting statement and deliver information without PIN (less secure)

• MMS offers systematic communications for bill collection starting with gentle reminders, through rescheduling payments to collections escalation

QR/Microsoft Tag Programs

• QR/Tags with MMS provide the best experience with mobile marketing because for consumers with 2D code readers, it provides Instant access to rich media content or graphic coupons/promotions incentives

• With QR/Microsoft Tags and MMS, consumer is one click from INSTANT PLAYBACK of rich media like video for optimal consumer mobile experience…no messing with web search or browsing required

• Scanned 2D code INSTANTLY delivers coupons for redemption, no fuss no muss

• QR/Tag can also deliver a site page instantly

Live Demo! Scan this Tag

38

• ―One size fits all messaging‖ can have unknown relevance to the recipient

• Mobile Smart Coupons and Messaging easily integrate with data sources such as zip codes, weather, consumer profile/preference CRM data, product inventory, finance, sports scores etc. instantly adding relevance to the message delivered

• Smart alerts can know:

Who the customer is

Where they are

What’s happening around them

When they want something

Why they need or want it

Smart Coupon Opportunities

• Location aware messaging without carrier lookup costs

• Make messages sent relevant to external data or information (weather,

immediate response in-store after purchases, past purchases, profile data etc.)

• Make messaging relate to real-time events, business status, and histories

Promote overstock items using real-time inventory data

Leverage customer history and real-time purchase behavior for delivery

of relevant marketing and product cross sell

• Drive in-store traffic, Web traffic and product sales.

Smart Coupons & Alerts

The heat wave continues here in LA! Cool off with new designer swimwear for men, women and kids, 20% off this weekend at all stores. Code:34ru3 Exp: 7/12/11

Smart Coupons & Alerts

Text opt-in for either single coupon or to opt-in to couponing alert group

62407

Miami

Store 33128

Text STORE + your zip code to 44264 to receive an SMS coupon every month for 20% off your favorite fashions

Database Weather

Location Look Up

Product Inventory

Past Consumer Purchases

Any Other Event or Data Sets

Consumer Profile Data

Database receives keyword opt-in and delivers a coupon based on external events or information in the database

Here’s something special for you to celebrate your birthday. Come into Dressbarn and get 20% off any item. Code f5mt Exp. 5/31/11

Messages sent based on stored customer profile data with unique redemption code.

SMS Reply by Consumer Profile Data

SMS Only Coupon: Contextually relevant coupon is delivered based on keyword + database referencing with unique redemption code.

It’s a scorcher in Miami today! Keep cool with breezy late summer skirts. 20% off at any store. Code t239r Exp. 10/31/11

Freezing in NY today? Keep warm with with a wool sweater. 20% off all sweaters at any store. Code 34r39r Exp. 10/31/11

Contextually relevant coupon delivered based on keyword/zip referenced against weather database…database knows it’s 90 degrees in Miami (33128)

STORE + 10507

Sends coupon for sweaters based on cold weather database reading for opt-in with New York zip code

SMS Reply by Weather

STORE + your zip code to 44264

It’s a scorcher in Miami today! Keep cool with breezy late summer skirts. Discount coupons:

http://nyskirts/mobi

OR….You can deliver a SMS with link to a Web landing page or mobile site with multiple coupons and barcode

SMS Reply by Weather Links to Mobile Web Coupons

• Breaks through the clutter of non-focused marketing and prompts immediate response

• Provides new geographic metrics layered on CRM customer data…know where they are and when and send personal and relevant messages

• Provide ―nearest store to you‖ information and offers that incentivize redemption and increase probability of sales

• Proximity and time relevance increases store traffic and reduces CPPofF (cost per pair of feet)

• Build a database and increase loyalty using location data—5% of Marks & Spencers’ 22 million customers are location aware SMS opt-in customers and growing

• Cut marketing cost—make direct marketing more targeted and less wasteful using a single keyword

• SMS LBS offers location aware marketing without the mobile app technology barrier, and requiring no consumer input telling you where they are

• Ubiquitous reach: 73% user availability, and messages are opened within 4 seconds

• Offer a broad range of complimentary location aware mobile interaction: MMS, sites, coupons etc.

Why Mobile LBS? Proximity/Time Relevance.

Location Based SMS Campaign Results:

• 79% of customers said location aware alerts increased their likelihood of visiting a store

• 65% made purchases as a result of LBS SMS message

• 73% would ―definitely‖ or ―probably‖ use it in the future

(O2 Media)

• Location aware messaging for single SMS offers or alert group/subscription campaigns

• ―Every time‖ real time carrier lookup of user location for single interactions

• ―Lookup once‖ carrier location lookup at opt-in for alert groups, with option of subsequent lookups to verify the user’s ―home‖

• Geo-fences for real time push messaging based on proximity to a store

• Deliver highly targeted and valuable messages to consumers on any device based on place and time

iLocation Based Services (LBS)

Team Shop Special Offer

Take 15% all purchases in the Team Shop at the Willow Glen location 12 Main St @ Lincoln with promo code: CLRMSAFL50 Exp. 12/31/11

For more offers click http://mobile.th.com/offers

Text HELP for help. Text STOP to cancel. Msg&DataRatesMayApply 877-561-8045 TC:tc.mtiny.mobi

Consumer Interest in LBS SMS Marketing

• 1 in 4 interested in location based coupons

• 1 in 5 interested in finding nearby merchants who carry product they’re interested in

• 1 in 3 age 18-24 interested in SMS about sales in nearby stores, with 1 in 5 interested in offers or ads for products tailored to current location

(MMA/Luth Research April 2010 US Consumer Briefing)

• Coupons/incentives are a key element to building a customer database and customer relationship marketing

• Redemption is trackable and ROI is highly measurable

• Builds brand awareness, loyalty, store traffic and sales

• Integrates easily into traditional marketing channels

• Works on every phone using SMS

• NO paper…easy to use by customer and eliminates misuse and fraud

• Uses existing POS systems, no extra hardware for mobile coupon programs

• Gives brick and mortar a powerful digital tool to compete with online

Mobile Coupons + POS Integration

POWER OF MOBILE REDEMPTION DATA

• Add and access mobile redemption data to your RFM measurements

• Better influence customer index scoring and upsell/cross sell

• Improve customer segmentation, modeling and lifetime value measures

• Fine tune offers to drive sales

How easy and seamless is mobile couponing? For basic SMS coupons, customer simply enters their mobile phone number in a standard PIN pad and the coupon automatically redeemed using the store’s existing POS system with transactions recorded.

Why Integrate Mobile to POS? To Measure and Know Your Customers.

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Mobile Retail POS

Plug and Play software solution through the payment terminal, register and/or optical scanner

Campaign Management

Offer Creation, Distribution and Tracking

CRM Database Management of Users and Mobile Loyalty Program

Analytics, Buying Behavior, Purchase History and

Segmentation

ROI DRIVEN

Pay Per Redemption Model

Redemption Solutions

POS Coupon Redemption Solution: How It Works

360° Mobile Coupon

Solution

1

5

6

4

3

2

REDMPTION OPTIONS

• Payment terminal PIN pads

using mobile phone number as

redemption code

• Manual code entry or hot keys

into register checkout screen

• Integration with discount and

loyalty card account

• Scan barcode (optical reader)

Mobile Internet & Apps

Create content rich mobile sites with

interactivity to extend your retail store.

• Full retail sites

• HTML5 sites

• Product info & content delivery

• Micro sites & landing pages

• Video

• RSS/XML integration (product catalog)

• Store locator/maps

• Location aware content serving

• Viral marketing

• CRM profile/prefs capture

• Click to call/IVR

• SMS/MMS marketing opt-in

• Automated ad serving

• mCommerce & sampling

• Social marketing

Mobile Internet Sites

Mobile Web Rules

Mobile search and web sites are by far the preferred retail mobile environment for a rich media experience.

For Retailers—Mobile Web Is No Longer Optional

• 86% of mobile web users are using their devices while watching TV—this has heavy implications for retail broadcast advertising*

• Nearly half of all Web searches during the 2012 Super Bowl came from mobile—the phone is now an important part of retail television marketing**

• 62% of smart phone users have bought physical goods from their devices, and these buyers spend more than an hour a week mobile shopping today

• 66% of iPhone users report spending $250 or more on mobile purchases in the last year

• 66% favor using browsers over downloadable apps for accessing product and other shopping content, with over half saying easy checkout, product and pricing info most important

• The user appetite for downloading and maintaining brand mobile apps is limited

• 30% have video as an influence on the likelihood of purchase, with the top mobile visual merchandising tools being 360° product spin (54%), side-by-side comparison (49%) and zoom/pan (44%)

Adobe Scene7 Survey 2011, *Microsoft 2011, **Google 2012

*

The Opportunity of mCommerce

Steve Madden Mobile Site

• Full mCommerce environment for product purchase

• Familiar web design optimized for mobile makes site easy to use

• Not an app, this has the full reach any mobile Internet enabled phone

• Include ―You Might Like‖ engine to make buying experience better for user and opportunity for cross or up sell

Results for Optimized Site Launch 2010

• 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 trended upwards fast: April 2010 4.4%, May 7.9%, June 8.6%, July 9.5%, October 10.5%

• 1,400,00 visits in 8 months totaling 6.25 million minutes

• Average time on site 7 minutes

• In 8 months 12,000 products sold on mobile site for $900,00 in direct revenue with average order at $89.00

• 110,000 SMS alert opt-ins from all channels where CTA was promoted

• Integrated MMS opt-in *Source: Mobile Marketer 10/27/10

Integrating Social Into Mobile Web

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: products 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

• Site localized for the user by zip code query–system then delivers local dealer’s site built from standardized brand template

• Individual dealer sites feature content and information specific to that dealership (used car inventory etc.) but in national brand design environment

• Content includes new model info, pre-owned inventory, directions with map, specials, and service & parts info

• Videos of Lexus models

• Click-to-call triggers call to dealership

• Viral ―tell-a-friend‖ site forwarding

Sites with CMS & Database Feeds

Direct URL to Serramonte Lexus http://lexusserramonte.com

Large Retailers: Target mCommerce Site

mCommerce Single Transaction

Customer sees an advertisement for

Phillips in traditional media (e.g billboard

)and decides to “Scan´n Buy” or text to

buy the shaver

1

The buyer enters their

payment card details and

address sent by URL or

email

3

Save 15% on the new Philips 7000 shaver. Scan ´n Buy now or text PHILIPS to 87812.

Payment/billing provider handles the

transaction and informs merchant with required information

4

The scan initiates a landing page that

includes product info and a payment

window 2

mCommerce Simple Payment Solutions

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‖

Advanced Mobile/Social Deployment

Wisdom Wall social media initiative for Heineken USA to engage consumers who are already active in social media and get them taking about, and sharing, their ―wisdom.‖

The hub of the Wisdom Wall is a microblogging application that lives on a Facebook Fan Page, and is integrated with digital signage at events via text messaging and a mobile website.

This virtual Wisdom Wall provides the brand with an effective way to link both real-world and digital programs while providing useful content and social currency for the brand’s target market.

Visit the live mobile site at http://wisdom.heineken.mobi (US Only)

• Custom Apps: Standard native smart phone apps, built from scratch with original creative and functionality

• Express Apps: Quick and inexpensive apps that are mobile site conversions

• Enhanced Apps: Express Apps with optional smart phone native functionalities

• Tablet Apps: Native apps with design & formatting for bigger screen

Mobile Apps

• Best Buy weekly deals

• Browse and search Best Buy’s entire inventory

• Explore products through ratings, reviews, related items and enlarged views

• Fill and manage favorite products and shopping cart

• Gift ideas from across the Web through the IdeaGiftr tool

• Store locator & shelf talker 2D bar code scan for product info

• Reward Zone loyalty account access

• mCommerce click to buy

• Opt-in to SMS campaigns via Web

• Mobile content downloads via Web

• Rewards & loyalty programs

• Viral marketing & ―tell a friend‖

• Mobile enabled Web banner ads

Mobile Enabled Web Sites & Display Ads

A friend wants to share free music podcasts, presented by Diet Coke Plus.

Mercury Shoes Mobile Coupon

Go 2 any Footlocker store

and show this code

XD43ks for 15% off your

next purchase of Mercury

Shoes.Exp. 3/31/10

Viral Marketing Mobile Enabled Banner Ads

Thanks, we’d be glad to answer any questions to help you mobile enable your retail marketing.

Contact: [email protected]

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Additional Resources

Leading Industry Resources

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