- 1. Mobile Enabling Retail Marketing An overview of retail
mobile marketing $1 off Ghirardelliconcepts, strategies, tactics
and Squares Gift Sets technologies with industry & iLoop Mobile
Expires 10/25/10case studies. Prepared by: Michael Ahearn, VP
Strategic Marketing2221621217-2090-04
[email protected]
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 deliveryFREE 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
retentioncustomers or audience Viral marketing/word of mouth
Increased use of traditional & Web marketing channels Product
sales & content monetizationMobile is the most effective direct
marketing that exists. 4. Shoppers: Requested In-Store Mobile
CapabilitiesPlease rate how useful the different pieces of
information wouldbe to you when you are shopping in a store (% very
helpful)Feb 2010 Communispace In Store Mobile Experience Survey 5.
In-store Mobile PromotionsEnticing call to action on in-store
signage, shelftalkers 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 mainingredient 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 choiceoverload when dealing
with store shelves Promoted in retail stores with shelf talkers and
neck hangers onproduct itself Simple yet effective example of using
SMS to achieve brandmarketing objectives 7. Mobile Integrates With
Other ChannelsMobile call to action can be integrated into ALL
marketing channels 8. Mobile Enabled Point of SaleMobile is can
provide customer service or execute sales 9. Mobile Incentive
Marketing for Retail8 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% offMANDEE 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 associatesWeb Opt-in
11. Scaled Deployment of SMS CampaignsDirect marketing programs for
hundreds ofsmall 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
campaignmobile easily pays for itself Between 250-1,200 opt-ins in
first few McDonalds Thanks YouEnjoy one FREE Small monthsone
retailer had 900 in first two McCafe coffee. Valid 1
weeksweek.Help: moneymailer.com Spike sales during slow weekdays
and Opt-out: Reply STOP on promotional
holidaysMCDONALDMsg&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 users 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
Messaging12 14. Customer Acquisition with CRMGet more data than
keywordbased opt-in carrier metricsOpt-in to mobile coupon clubsvia
online Web form or mobile siteUser selectable coupon offersAll
preference and profile data iscaptured for CRM database
build,analysis, targeted messaging, anduse in other marketing
channels(email, print, direct marketing etc.)Tell-a-friend viral
componentWeb Opt-in Mobile Site Opt-in 15. SMS Dynamic Messaging
& CRM IntegrationUse CRM databases for dynamicmessaginginsert
names, use profiledata and preferences to personalizemessaging and
create rule sets thatincrease relevance and conversionIntegrate
mobile campaigns withHello John, The San Messageexisting or
external CRM databases,Francisco Macyscomponentsdata feeds and
content managementstores have 20% off all sourced from Kenneth Cole
shoesexisting CRMsystemsand suits until Sunday. database and Txt
STOP to stop.Txtdynamically HELP 4 help. Msg &integrated
intoIntegrate with your existing reporting Data Rates May Apply.
the messagesystemssend data from the mobileplatform to external
reports and viewreports in your reporting systems 16. Smart
Messaging: Database IntegrationEveryone receives the same offer
mobile promos orcoupons 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! Whats happening around them The heat wave! When they want
somethingcontinues here in LA!! Why they need or want itCool 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 relevanceat any
AstroBurgerincreases participationlocation. Code:34ru3 ! Time and
place relevance increases Exp: 7/12/10participation ! Contextually
relevant messaging increasesacquisition, conversion and loyalty 17.
Smart Messaging: User FlowText STORE + your zip code to 44264
toreceive a SMS coupon every month forSMS Only Coupon:20% off your
favorite fashionsContextually relevantcoupon is deliveredbased on
keyword + Its a scorcher in Miami database referencing Freezing in
NY today? Databasetoday! Keep cool withwith Keep warm with with a
unique redemptionSTORE + your breezy late summer code. sweater. 20%
off woolzip code to 44264 Weatherskirts. 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 PurchasesAny 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 code62407keyword opt-in and Store 33128 Heres
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 anyMiami item. Code f5mt
Exp. 5/31/11By Consumer Profile DataMessages sent based on
storedcustomer profile data with Text opt-in for either single
coupon unique redemption code. or to opt-in to couponing alert
group 18. Mobile Coupon Redemption17 19. Couponing LandscapeThe
Value of Couponing 57% of consumers would not have bought an item
if they didnt 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 toimplement solutions available to marketers. Segmented
database build and targeted message delivery Detailed customer
transaction data capture 10x redemption ratesSource:
www.promotionalcodes.org.uk/15311/mobile-advertising-and-the-rise-of-coupons
| www.fastcodesign.com Infographic of theDay by Tiffany Farrant
(Borrell Associates Report, ComScore, Airwide Solutions, Compete,
MarketingCharts.com, MySkyNet, JuniperResearch, MMA) 20. Mobile
Couponing Value Proposition Mobile coupons can capture key customer
transactional data using nothing more than a customers 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 measuretarget and
deliver the right offer based on past purchase data 21. Retail
Objectives for Mobile Incentives & CouponsAchieve 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 carrycoupons are saved on
phone and tied to customers phone number Offers saved automatically
to customers account which is tied to their phone numbercustomers
phone number is their redemption code SMS + pin pad terminal
redemption works on ALL phones (not just smart phones or
apps)Ghiradelli CouponGet $1 off the deluxeGhiradelli Chocolate
Coupons are always on customers person, always availableSquare
Sets.Exp:9/30/10 for redemption Msg & Data Rates MayApply
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 RedemptionNO check out
slow-downNO new hardware (scanners, servers, PIN pads or readers)NO
bad user experience and resulting lost revenueCreateOfferNO limited
user phone reach RefineDeliverNewTargetingCoupon Hardware
FraudOfferPOSYES minimize cashier involvementSettlementRedemption
No IntegrationYES leverage existing retail technology
systemsProprietarySolutionsYES maximize shopper participation and
reach (older phones too!)YES integrate with discount card programs
24. POS Mobile Coupon Redemption SolvedRedemption Options
AvailableStandard payment terminal pads using mobile phone
numberRegister hot keys or on-screen virtual payment
terminalIntegration with discount card accountScan with optical
barcode scanner Point of Sale Redemption for Mobile
CouponsMobileRedemptionSolutionThe mobile POSredemption
solutionaggregates POShardware redemption Settlementsystems so a
simpleSMS coupon ormobile barcodecoupon can beredeemed on
virtuallyany POS system. 25. Full Cycle Mobile Coupon Redemption1
62 53 4 26. Location Aware Messaging25 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 $2 billion by 2014IE Market Research 3Q 2010 Global GPS
Navigation and Location Based Services Forecast 28. LBS: Real-Time
Subscriber SearchR>5/0%*/"%&?@ABC&DAEFGHGG&=Q
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-.B;$&5(M]$I.95$J$H.A$-B;$)B&0+$9)$&^+095:$=U_$
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QQ!Y""Q"$[0.59(+)$RUUU$
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%&(,)$-./+0)$1(23$-.B;$&5(M]$"U_$&^$$.(($9A+$.5a$Naa9a.)$Q!!!$E+55&5$`(/a;d$=U$>9(+)$
"RUUU$
)&+)$.B$Q!$e0&/+$-B;?`2)$)B&0+;$b9)9B$$cGO??>;A&();>&39$
[0+)5&d$1N$X"QQ=$
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%&(,)$-./+0)$1(23$-.B;$&5(M]$1.5.(?I+0&0+$&^+0);$
29. LBS: One-Time Location Aware Message
I"%&0$(N%3&,()&-$0,8$(&*&;$0,8$(&%"-"&0+$&^+0);$%&(,)$1&2G&5$()*%+&L+G(M$*D-$B&$$%&()$$
T!UVW$=S#$H.A$-B;$-.5$Z&)+$1N$
XR==U$M&2,a$(9A+$2)$B&$2)+$M&20$XUSY"Q""$(&&39$$
45,,675&89,:;&41+&4%??1>%&
!8#@1=#$&&&A1B/(?& 4%??1>%&.13&
%&(,)$-./+0)$1(23$-.B;$&5(M]$I.95$J$H.A$-B;$)B&0+$$
=QUU$H.A$-B;d$$ "$>9(+)$RUUU$
9)$$&^+095:$=U_$`&52)$`2M$&^$.(($G209(+)$
"RUUU$M$5/-"&$4.F*(&0$(N%3,8$(&&
Naa9a.)$)&+)$.B$Q!$e0&/+$-B;?`2)$)B&0+;$b9)9B$$[0+)5&d$1N$X"QQ=$
cGO??>;A&();>&39$7&0$>&0+$&^+0);$
%&(,)$-./+0)$1(23$-.B;$&5(M]$1.5.(?I+0;A&();>&39$7&0$>&0+$&^+0);$
30. LBS:
Geo-Fencing>."4&P&Q&RS&I"%&472*0,--2&"(."%&+"$F#"(0"L&T#&.%*,(+5-,8$(&*&$(&.7"*%&-$0,8$(&*&NJ")&,()&0$34,%")&.$&.7"&:",+"&;*.L&;$0,8$(&%"-"&39$7&0$>&0+$&^+0);$
%&(,)$-./+0)$1(23$-.B;$&5(M]$$E959(+)$ "RUUU$
)&+)$.B$Q!$e0&/+$-B;?`2)$)B&0+;$b9)9B$$cGO??>;A&();>&39$
[0+)5&d$1N$X"QQ=$ 7&0$>&0+$&^+0);$ 31. LBS
Geo-Fencing: The North FaceNorth 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 Mobile31
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 billionan 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/AgePercentage of
2011 mCommerce spend by product category and age group 35.
mCommerce Single TransactionCustomer sees anThe scan initiates
aadvertisement for Getitcard/Scanbuy Phillips in traditional
landing page thatmedia (e.g billboard ) includes product infoand
decides to Scanand a payment windown Buy or text to buy the shaver
The buyerenters their payment carddetails and Save 15% on the new
Philips 7000address sent shaver. Scan n Buy now or Bancore handles
theby URL or text PHILIPS to 87812.transaction and email informs
merchant withrequired information 36. mCommerce Simple Payment
Solutions 37. mCommerce Cast Study: Steve MaddenSteve 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 betterResults* 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 SocialSteve 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. The Future:
Near Field Communications (NFC)For the future of mobile retail in
USlook to Japan and NFC The mWallet for payment Content and
information delivery Frictionless opt-in CASE STUDY: McDONALDS
JAPAN May 2008, McDonalds introduced NFC-based couponsusers
download coupons through a mobile application and touch a reader/
writer at the point of sale to instantly redeem their coupons, as
well as pay for the purchase, and receive loyalty points Promotions
are planned according to each individuals purchase history; profile
data and contextual factors like time of the day, or what the
weather is likeALL JAPANESE MOBILEUSERS Investment: large backend
infrastructure and putting NFC reader/ writers into 3,800 branches
with a dedicated mobile marketing joint venture with NTT DoCoMo
Stats: 16 million registered users (>12% percent of the Japanese
population), >100 million mobile page views per month, and in
less than 2 years, the number of coupons now exceeds 4.5
millionSource: Christopher Billich www.mobithinking.com 40 42.
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
Webis expected to overtake the PC as the most popularway 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 43. Mobile for
Social 2011Growth 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 dayGrowing But Still an
Infant Twitter has only 7% penetration amongst all SMS usersits 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 44. 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) http://mmresources.net! Mobile Marketer:
www.mobilemarketer.com! Mobile Commerce Daily:
www.mobilecommercedaily.com! 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 45. Thank YouGO
MOBILE!Visit www.iloopmobile.com to learn how we can help you
mobileenhance your marketing.Contact [email protected] (408)
907-3360 and well help youget 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