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Girls, Games, Giving…Gambling
October 2012
Agenda


                                                          Giving
                                               Girls


                                                       Gaming




                                                  Gambling

2
    Proprietary & Confidential to OpenMarket
Agenda

•   What is the state of consumer behaviour?
•   What is the charitable giving industry doing?
•   How does this apply to gambling?
•   What is the adult industry doing?
•   How does this apply to gambling?
•   What is the gaming industry doing?
•   How does this apply to gambling?
•   Questions

3    Proprietary & Confidential to OpenMarket
Mobile is Everything




4   Proprietary & Confidential to OpenMarket
Telephones




5   Proprietary & Confidential to OpenMarket
Banking




6   Proprietary & Confidential to OpenMarket
Coupons




7   Proprietary & Confidential to OpenMarket
Directory Enquiries




8   Proprietary & Confidential to OpenMarket
Games




9   Proprietary & Confidential to OpenMarket
Magazines




10   Proprietary & Confidential to OpenMarket
Maps




11   Proprietary & Confidential to OpenMarket
Food Shopping




12   Proprietary & Confidential to OpenMarket
Music




13   Proprietary & Confidential to OpenMarket
News




14   Proprietary & Confidential to OpenMarket
Reading




15   Proprietary & Confidential to OpenMarket
Recruitment




16   Proprietary & Confidential to OpenMarket
Travelling for meetings




17   Proprietary & Confidential to OpenMarket
Scrapbooks




18   Proprietary & Confidential to OpenMarket
Shopping




19   Proprietary & Confidential to OpenMarket
Taxis




20   Proprietary & Confidential to OpenMarket
Film and TV




21   Proprietary & Confidential to OpenMarket
Congratulations




22   Proprietary & Confidential to OpenMarket
Landlines




23   Proprietary & Confidential to OpenMarket
Ad spend




24   Proprietary & Confidential to OpenMarket
Knowledge




25   Proprietary & Confidential to OpenMarket
Mobile is not a platform

               Engaging your customers using mobile is a
               natural response to the changing patterns of
               behaviour already demonstrated

               Mobile is not just a platform on which you can
               offer a product


               Mobile should be the glue that holds your
               products and services together




26   Proprietary & Confidential to OpenMarket
Giving
“Giving”




28   Proprietary & Confidential to OpenMarket
Mind the gap




29   Proprietary & Confidential to OpenMarket
The danger…




30   Proprietary & Confidential to OpenMarket
The Evolution of Mobile Giving

                        Scarcity                      Social proof




                      Early
                      adopters                     Early majority    Late majority   Laggards
                      13.5%                        34%               34%             16%

Innovators
2.5%




31      Proprietary & Confidential to OpenMarket
Beyond the tipping point

                        Scarcity                      Social proof




                      Early
                      adopters                     Early majority    Late majority   Laggards
                      13.5%                        34%               34%             16%

Innovators
2.5%




32      Proprietary & Confidential to OpenMarket
Regular giving now innovative

                        Scarcity                      Social proof
                                                                               SMS
                                                                               donation




RG PSMS

                      Early
                      adopters                     Early majority    Late majority    Laggards
                      13.5%                        34%               34%              16%

Innovators
2.5%




33      Proprietary & Confidential to OpenMarket
Huge growth in mobile giving

                                                Survey respondents who have given to
                                                charity in last 3 months
                                                “In which of the following ways did you
                                                give?”




34   Proprietary & Confidential to OpenMarket
Why SMS?

     Personal
     • More likely to appeal to the user as a more intimate
       engagement
     Self contained channel
     • No need for the user to ‘do anything’ beyond own a phone

     90% are read within 1 hour
     • In fact most are read within minutes

     Control
     • The initial interaction by the user overcomes the biggest barrier


35      Proprietary & Confidential to OpenMarket
DEC




36   Proprietary & Confidential to OpenMarket
SMS Donations – all about the Short Code




37   Proprietary & Confidential to OpenMarket
Gift Aid Innovation




38   Proprietary & Confidential to OpenMarket
Results

              500% increase in SMS donations

              60% opt-in to gift aid

              Double the response from other channels

              25% added to these donations

              Over £1,500,000 raised by SMS and Gift aid

              OpenMarket processed over £10,000 minute

              Record donations by mobile for DEC




39   Proprietary & Confidential to OpenMarket
Peaks in donation revenue

         Peak
        caused
       by single
       TV plug
        on ITV




                                                August 2011


40   Proprietary & Confidential to OpenMarket
The Faberge Big Egg Hunt




41   Proprietary & Confidential to OpenMarket
Short Code at the heart of it all




42   Proprietary & Confidential to OpenMarket
Capturing the public’s imagination




43   Proprietary & Confidential to OpenMarket
Regular Giving




44   Proprietary & Confidential to OpenMarket
Regular Giving


                                                Direct Debit is a big emotional
                                                commitment

                                                User feels less in control

                                                How do you stop a direct debit (or
                                                put it on hold)?

                                                Feel like you are paying for utilities
                                                rather than donating

                                                Regular PSMS for more streamlined
                                                with the user in the driving seat


45   Proprietary & Confidential to OpenMarket
Regular Giving




46   Proprietary & Confidential to OpenMarket
Lessons

• Enabling a mobile payment mechanism is a
  natural response to where the customer is
• The use of strong calls-to-action where the
  user can respond within 5 seconds has
  dramatically changed advertising strategy
• The initial interaction is the biggest step – this
  will be the same for gambling



47   Proprietary & Confidential to OpenMarket
Girls
Girls




Content                                         2-way chat   Television




49   Proprietary & Confidential to OpenMarket
Content Downloads

               Come in two main formats




50   Proprietary & Confidential to OpenMarket
Heavily driven by content

     Re-engage
      • Once the customer has interacted with you once, keep talking to them using SMS

     Produce
      • Get new content together all the time and advertise it constantly

     Call to action
      • Make sure every piece of marketing (TV, Print, SMS) has a direct call to action

     Simplicity rules
      • Keep the call to action simple – DO THIS NOW

     Segment
      • Keep a track of user preference and target SMS broadcasts appropriately – if they want to see
        Anna, tell them when Anna has a
     Get your content out there
      • If you pay 3p for a text message and charge £3 for a download, you only need a 1% conversion rate
      • A well targeted campaign can see conversion of over 15%


51      Proprietary & Confidential to OpenMarket
Two-way chat

User driven
     • ‘Chat’ services are about keeping the user engaged at their level – people won’t necessarily want to
       talk about the same things
It’s a relationship
     • A conversation is made up of two people, and the user will want to feel like he/she knows the chat
       operator
Remarketing is important
     • But frequency of contact should be dictated by the customer – if they normally engage with you
       every day but then stop for a few days, send a free message asking where they have been
Treat VIP customers well
     • Free interactions every month (non-billed SMS, freephone number to call their favourite girl)

Give back
     • Offer something ‘real’ to certain customers
     • Credit their phone with cash
     • Hardcopy content


52        Proprietary & Confidential to OpenMarket
The Chat Platform

         Having a platform that enables you to build these
            relationships is key to a long term business




53   Proprietary & Confidential to OpenMarket
TV




54   Proprietary & Confidential to OpenMarket
Voice Short Codes

                                                  5-digit
                                                 numbers




                              Can be set
                                                Voice         Callable
                                  to
                              Freephone
                                                Short          from
                                                              mobiles
                                                Codes


                                                Fixed price
                                                for mobiles




55   Proprietary & Confidential to OpenMarket
Why use a Voice Short Code

08/09 numbers potentially damaging brands
     • Lack of clarity on pricing

Pricing Clarity across VSCs
     • Uniform network pricing
     • Can be set to 0p per minute
     • No need for mobile users to pay ‘considerably more’
     • Clarity increases consumer confidence

Memorable
     • Can build a brand around the 5-digit Short Code

Can be enabled across different platforms
     • Can be set up across Voice, SMS and MMS


56       Proprietary & Confidential to OpenMarket
08 Numbers Today

                                                 80% of consumers say 08
                                                 phone numbers damage
                                                their perception of a brand


                                  0800
                              numbers can                                      Almost 50%
                               cost up to                                     of consumers
                                 40p per                                      say they have
                              minute when                                      suffered bill
                              dialling from                                     shock as a
                                a mobile.                                        result of
                                   084x                                        calling an 08
                              numbers can                                        number
                               cost more


                                                9 out of 10 consumers want
                                                 more transparency when
                                                    dialling 08 numbers




57   Proprietary & Confidential to OpenMarket
One service drives the other

                                                         Promoted
                                                          content
                                                         downloads



                                                                          Subscription
                                     TV
                                                                             clubs




                                            Voice chat               SMS Chat




58   Proprietary & Confidential to OpenMarket
Lessons

• The use of multiple mobile communication
  channels drives customer engagement
• Products are not independent silos but are all
  used to drive each other
• Simple, easy to use mobile payment
  mechanism leads to more impulse led
  purchases and greater revenue in the long
  term


59   Proprietary & Confidential to OpenMarket
Gaming
Push Notifications

     Push Notifications are a permission based
     customer communications tool
     • Specific data is automatically sent to the user via their
       mobile device
     • User is identified by a native application on their handset
     • Enables brands to socialise with their customers,
       hopefully on their customers’ terms
     • A range of potential uses include customer service alerts,
       social updates, new content advice, relevant offers,
       breaking news, reminders and location specific
       information


61    Proprietary & Confidential to OpenMarket
Push Notifications




62   Proprietary & Confidential to OpenMarket
Success in Gaming

                        Common Findings              Additional Findings

              • Twice the customer              • 80% higher retention rate
                retention rate                    for users receiving push
              • Customer engagement rate          notifications in the first
                is four times higher              month after app download
                                                • Over half of all app usage is
                                                  driven from push
                                                  notifications
                                                • 67% during the first moth
                                                  after app download
                                                • 74% during the second
                                                  month after app download
                                                • 81% during the third month
                                                  after app download




63   Proprietary & Confidential to OpenMarket
Permission Based

     Push Notifications can be easily turned off by the user so you
     must follow some best practice guidelines
     • Provide user controls and preferences – Via application user preferences let
       users select the times they get content and the types of content they are
       interested in. In doing so users can make the experience more customized
       and personal
     • Make messages relevant – Think more in terms of how can a message serve
       the customer versus how it can market.
     • Make the messages engaging and entertaining – With push you can deliver
       more than just text so make the interaction as engaging and interesting for
       the user as possible. This also lends itself to sharing opportunities which will
       help your brand.
     • Maintain brand consistency – Keep your messaging, look and feel consistent
       across all your channels. This reinforces your brand image and lessons
       confusion about different messages.
     • Track results – Pay attention to what works and what doesn’t so your
       messaging strategy can improve over time.


64    Proprietary & Confidential to OpenMarket
The user can opt-out…




65   Proprietary & Confidential to OpenMarket
In Game Payments




66   Proprietary & Confidential to OpenMarket
Lessons

• Mobile applications that use Push
  Notifications as a marketing tool are more
  likely to be kept and used for longer
• This marketing must be relevant to the user
  and ‘play to their rules’
• In Game Payments using a mobile payment
  mechanism (online or on mobile) create a
  different breed of player – one that spends
  little but often

67   Proprietary & Confidential to OpenMarket
Gambling
Mobile should underpin everything


                                                Every transaction is an opportunity for CRM

                                                Put the user in control by giving them the ability
                                                to talk to you as well as the other way round

                                                Keep it simple by send short communications that
                                                relay a simple point

                                                Use a call to action on everything – in message, on
                                                TV, in print, on the radio

                                                Use these to measure the impact of your
                                                marketing in real time and change as is necessary




69   Proprietary & Confidential to OpenMarket
Summary

     There are many individual lessons these sectors can teach us
      • Mobile is not a product, it is a way in which you can interact with your
        customers across all of your products
      • The majority of customers will want to contact you from their mobile and so
        won’t want to be constrained by limitations of other channels
      • Give your customers a multi-modal access point – Voice and SMS using the
        same number
      • Keep calls-to-action simple, but make sure they are on everything
      • A mobile payment mechanism will create a different breed of player – one who
        becomes a VIP in the long term
      • Mobile is the glue that can keep your entire product suite together


      For more information please contact:
      Siamac Rezaiezadeh – siamac.rezaiezadeh@openmarket.com
      Text „siamac‟ to 88600 (from a UK mobile phone number)
      Go to www.openmarket.com

70       Proprietary & Confidential to OpenMarket

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OpenMarket - Girls, Games, Giving and Gambling

  • 2. Agenda Giving Girls Gaming Gambling 2 Proprietary & Confidential to OpenMarket
  • 3. Agenda • What is the state of consumer behaviour? • What is the charitable giving industry doing? • How does this apply to gambling? • What is the adult industry doing? • How does this apply to gambling? • What is the gaming industry doing? • How does this apply to gambling? • Questions 3 Proprietary & Confidential to OpenMarket
  • 4. Mobile is Everything 4 Proprietary & Confidential to OpenMarket
  • 5. Telephones 5 Proprietary & Confidential to OpenMarket
  • 6. Banking 6 Proprietary & Confidential to OpenMarket
  • 7. Coupons 7 Proprietary & Confidential to OpenMarket
  • 8. Directory Enquiries 8 Proprietary & Confidential to OpenMarket
  • 9. Games 9 Proprietary & Confidential to OpenMarket
  • 10. Magazines 10 Proprietary & Confidential to OpenMarket
  • 11. Maps 11 Proprietary & Confidential to OpenMarket
  • 12. Food Shopping 12 Proprietary & Confidential to OpenMarket
  • 13. Music 13 Proprietary & Confidential to OpenMarket
  • 14. News 14 Proprietary & Confidential to OpenMarket
  • 15. Reading 15 Proprietary & Confidential to OpenMarket
  • 16. Recruitment 16 Proprietary & Confidential to OpenMarket
  • 17. Travelling for meetings 17 Proprietary & Confidential to OpenMarket
  • 18. Scrapbooks 18 Proprietary & Confidential to OpenMarket
  • 19. Shopping 19 Proprietary & Confidential to OpenMarket
  • 20. Taxis 20 Proprietary & Confidential to OpenMarket
  • 21. Film and TV 21 Proprietary & Confidential to OpenMarket
  • 22. Congratulations 22 Proprietary & Confidential to OpenMarket
  • 23. Landlines 23 Proprietary & Confidential to OpenMarket
  • 24. Ad spend 24 Proprietary & Confidential to OpenMarket
  • 25. Knowledge 25 Proprietary & Confidential to OpenMarket
  • 26. Mobile is not a platform Engaging your customers using mobile is a natural response to the changing patterns of behaviour already demonstrated Mobile is not just a platform on which you can offer a product Mobile should be the glue that holds your products and services together 26 Proprietary & Confidential to OpenMarket
  • 28. “Giving” 28 Proprietary & Confidential to OpenMarket
  • 29. Mind the gap 29 Proprietary & Confidential to OpenMarket
  • 30. The danger… 30 Proprietary & Confidential to OpenMarket
  • 31. The Evolution of Mobile Giving Scarcity Social proof Early adopters Early majority Late majority Laggards 13.5% 34% 34% 16% Innovators 2.5% 31 Proprietary & Confidential to OpenMarket
  • 32. Beyond the tipping point Scarcity Social proof Early adopters Early majority Late majority Laggards 13.5% 34% 34% 16% Innovators 2.5% 32 Proprietary & Confidential to OpenMarket
  • 33. Regular giving now innovative Scarcity Social proof SMS donation RG PSMS Early adopters Early majority Late majority Laggards 13.5% 34% 34% 16% Innovators 2.5% 33 Proprietary & Confidential to OpenMarket
  • 34. Huge growth in mobile giving Survey respondents who have given to charity in last 3 months “In which of the following ways did you give?” 34 Proprietary & Confidential to OpenMarket
  • 35. Why SMS? Personal • More likely to appeal to the user as a more intimate engagement Self contained channel • No need for the user to ‘do anything’ beyond own a phone 90% are read within 1 hour • In fact most are read within minutes Control • The initial interaction by the user overcomes the biggest barrier 35 Proprietary & Confidential to OpenMarket
  • 36. DEC 36 Proprietary & Confidential to OpenMarket
  • 37. SMS Donations – all about the Short Code 37 Proprietary & Confidential to OpenMarket
  • 38. Gift Aid Innovation 38 Proprietary & Confidential to OpenMarket
  • 39. Results 500% increase in SMS donations 60% opt-in to gift aid Double the response from other channels 25% added to these donations Over £1,500,000 raised by SMS and Gift aid OpenMarket processed over £10,000 minute Record donations by mobile for DEC 39 Proprietary & Confidential to OpenMarket
  • 40. Peaks in donation revenue Peak caused by single TV plug on ITV August 2011 40 Proprietary & Confidential to OpenMarket
  • 41. The Faberge Big Egg Hunt 41 Proprietary & Confidential to OpenMarket
  • 42. Short Code at the heart of it all 42 Proprietary & Confidential to OpenMarket
  • 43. Capturing the public’s imagination 43 Proprietary & Confidential to OpenMarket
  • 44. Regular Giving 44 Proprietary & Confidential to OpenMarket
  • 45. Regular Giving Direct Debit is a big emotional commitment User feels less in control How do you stop a direct debit (or put it on hold)? Feel like you are paying for utilities rather than donating Regular PSMS for more streamlined with the user in the driving seat 45 Proprietary & Confidential to OpenMarket
  • 46. Regular Giving 46 Proprietary & Confidential to OpenMarket
  • 47. Lessons • Enabling a mobile payment mechanism is a natural response to where the customer is • The use of strong calls-to-action where the user can respond within 5 seconds has dramatically changed advertising strategy • The initial interaction is the biggest step – this will be the same for gambling 47 Proprietary & Confidential to OpenMarket
  • 48. Girls
  • 49. Girls Content 2-way chat Television 49 Proprietary & Confidential to OpenMarket
  • 50. Content Downloads Come in two main formats 50 Proprietary & Confidential to OpenMarket
  • 51. Heavily driven by content Re-engage • Once the customer has interacted with you once, keep talking to them using SMS Produce • Get new content together all the time and advertise it constantly Call to action • Make sure every piece of marketing (TV, Print, SMS) has a direct call to action Simplicity rules • Keep the call to action simple – DO THIS NOW Segment • Keep a track of user preference and target SMS broadcasts appropriately – if they want to see Anna, tell them when Anna has a Get your content out there • If you pay 3p for a text message and charge £3 for a download, you only need a 1% conversion rate • A well targeted campaign can see conversion of over 15% 51 Proprietary & Confidential to OpenMarket
  • 52. Two-way chat User driven • ‘Chat’ services are about keeping the user engaged at their level – people won’t necessarily want to talk about the same things It’s a relationship • A conversation is made up of two people, and the user will want to feel like he/she knows the chat operator Remarketing is important • But frequency of contact should be dictated by the customer – if they normally engage with you every day but then stop for a few days, send a free message asking where they have been Treat VIP customers well • Free interactions every month (non-billed SMS, freephone number to call their favourite girl) Give back • Offer something ‘real’ to certain customers • Credit their phone with cash • Hardcopy content 52 Proprietary & Confidential to OpenMarket
  • 53. The Chat Platform Having a platform that enables you to build these relationships is key to a long term business 53 Proprietary & Confidential to OpenMarket
  • 54. TV 54 Proprietary & Confidential to OpenMarket
  • 55. Voice Short Codes 5-digit numbers Can be set Voice Callable to Freephone Short from mobiles Codes Fixed price for mobiles 55 Proprietary & Confidential to OpenMarket
  • 56. Why use a Voice Short Code 08/09 numbers potentially damaging brands • Lack of clarity on pricing Pricing Clarity across VSCs • Uniform network pricing • Can be set to 0p per minute • No need for mobile users to pay ‘considerably more’ • Clarity increases consumer confidence Memorable • Can build a brand around the 5-digit Short Code Can be enabled across different platforms • Can be set up across Voice, SMS and MMS 56 Proprietary & Confidential to OpenMarket
  • 57. 08 Numbers Today 80% of consumers say 08 phone numbers damage their perception of a brand 0800 numbers can Almost 50% cost up to of consumers 40p per say they have minute when suffered bill dialling from shock as a a mobile. result of 084x calling an 08 numbers can number cost more 9 out of 10 consumers want more transparency when dialling 08 numbers 57 Proprietary & Confidential to OpenMarket
  • 58. One service drives the other Promoted content downloads Subscription TV clubs Voice chat SMS Chat 58 Proprietary & Confidential to OpenMarket
  • 59. Lessons • The use of multiple mobile communication channels drives customer engagement • Products are not independent silos but are all used to drive each other • Simple, easy to use mobile payment mechanism leads to more impulse led purchases and greater revenue in the long term 59 Proprietary & Confidential to OpenMarket
  • 61. Push Notifications Push Notifications are a permission based customer communications tool • Specific data is automatically sent to the user via their mobile device • User is identified by a native application on their handset • Enables brands to socialise with their customers, hopefully on their customers’ terms • A range of potential uses include customer service alerts, social updates, new content advice, relevant offers, breaking news, reminders and location specific information 61 Proprietary & Confidential to OpenMarket
  • 62. Push Notifications 62 Proprietary & Confidential to OpenMarket
  • 63. Success in Gaming Common Findings Additional Findings • Twice the customer • 80% higher retention rate retention rate for users receiving push • Customer engagement rate notifications in the first is four times higher month after app download • Over half of all app usage is driven from push notifications • 67% during the first moth after app download • 74% during the second month after app download • 81% during the third month after app download 63 Proprietary & Confidential to OpenMarket
  • 64. Permission Based Push Notifications can be easily turned off by the user so you must follow some best practice guidelines • Provide user controls and preferences – Via application user preferences let users select the times they get content and the types of content they are interested in. In doing so users can make the experience more customized and personal • Make messages relevant – Think more in terms of how can a message serve the customer versus how it can market. • Make the messages engaging and entertaining – With push you can deliver more than just text so make the interaction as engaging and interesting for the user as possible. This also lends itself to sharing opportunities which will help your brand. • Maintain brand consistency – Keep your messaging, look and feel consistent across all your channels. This reinforces your brand image and lessons confusion about different messages. • Track results – Pay attention to what works and what doesn’t so your messaging strategy can improve over time. 64 Proprietary & Confidential to OpenMarket
  • 65. The user can opt-out… 65 Proprietary & Confidential to OpenMarket
  • 66. In Game Payments 66 Proprietary & Confidential to OpenMarket
  • 67. Lessons • Mobile applications that use Push Notifications as a marketing tool are more likely to be kept and used for longer • This marketing must be relevant to the user and ‘play to their rules’ • In Game Payments using a mobile payment mechanism (online or on mobile) create a different breed of player – one that spends little but often 67 Proprietary & Confidential to OpenMarket
  • 69. Mobile should underpin everything Every transaction is an opportunity for CRM Put the user in control by giving them the ability to talk to you as well as the other way round Keep it simple by send short communications that relay a simple point Use a call to action on everything – in message, on TV, in print, on the radio Use these to measure the impact of your marketing in real time and change as is necessary 69 Proprietary & Confidential to OpenMarket
  • 70. Summary There are many individual lessons these sectors can teach us • Mobile is not a product, it is a way in which you can interact with your customers across all of your products • The majority of customers will want to contact you from their mobile and so won’t want to be constrained by limitations of other channels • Give your customers a multi-modal access point – Voice and SMS using the same number • Keep calls-to-action simple, but make sure they are on everything • A mobile payment mechanism will create a different breed of player – one who becomes a VIP in the long term • Mobile is the glue that can keep your entire product suite together For more information please contact: Siamac Rezaiezadeh – siamac.rezaiezadeh@openmarket.com Text „siamac‟ to 88600 (from a UK mobile phone number) Go to www.openmarket.com 70 Proprietary & Confidential to OpenMarket