The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
Mobile Couponing 101
1. How
can
mobile
be
used
to
enhance
the
point
of
sale?
gene@thecollectivefactory.com
2. NEW
SHOPPER
JOURNEYS:
This
research
collabora-on
between
Carat
and
Microso4
sought
to
define
the
structure
of
consumers’
paths
to
purchase
and
how
different
touchpoints
play
a
role
in
shaping
decisions
as
to
where
and
what
to
purchase.
19,000
shoppers
in
17
countries
were
queried
on
their
most
recent
shopping
occasions
in
four
key
retail
categories:
apparel,
quick
service
restaurants,
groceries
and
home
electronics.
A
fi4h
category,
Home
Improvement
Centers,
was
done
in
the
US.
3. Study Overview
Methodology
Phase
I
:
Inves+ga+ve
Qualita+ve
Research
Step
1 Step
2 Step
3
Shopping
diary Individual
depth
Shop-‐Alongs
(mix
of
paper
&
video) interviews
4. Study Overview
Methodology
Phase
II
:
Global
Quan+ta+ve
research
A 20-30 minute online survey amongst shoppers from 17 countries
Each respondent answered questions about two different categories
USA
USA
samples n=2,680
Taiwan India Hong
Kong Singapore
China Japan
Asian
samples n=1,073 n=1,546 n=1,015 n=1065 n=1,032 n=1034
Italy Germany Spain UK France
European
samples n=1,118 n=1,012 n=1,031 n=1,141 n=1,063
Canada Brazil Mexico Argen+na* Colombia*
‘Americas’
samples n=1089 n=1,023 n=1,006 n=581 n=493
5. Study Overview
Methodology
The
Five
Retail
Ver+cals
Inves+gated
Qualifying
Criteria Home Clothes, Shoes Home Quick Groceries
(Recency) Electronics & Accessories Improvement Service Personal Care
Cell Phone Restaurants
Last month Past six months Past month Past week
Last six months (min $30 spend)
US Sample 1,039 962 1,088 1,124 1,147
Total US Sample: 2,680
6. Hierarchy
of
Shoppers’
New
Behaviors
§ Discount
coupons
used
more
oen
Seeking Better Value § Price
more
important
than
brand/quality
Hierarchy
of
tac7cs
for
coping
with
the
recession
§ More time looking for special promotions
More Advance § Visiting a number of retailers to find best deal
Purchase Research § Reading online forums/ consumer websites
§ Discount stores
Using Different § More online shopping
Channels § More online auctions
§ Mobile
Reduced Volume § Fewer visits to retailers
Word-of-Mouth § Peer reviews - 1:1 and through social media
7. Old
models
no
longer
adequately
describe
what’s
happening
Awareness
ConsideraIon
Purchase
8. It’s
not
linear.
It’s
a
dynamic
process.
66%*Refine
List
53%*Built
up
List
con$nuous
itera$ons
8
9. From Paths to Journeys:
The New Shopper Paradigm
WOM
Feedback
Loop
Post
Need
State Research Purchase
Purchase
In-‐storeresearch
‘Pre-‐tailing’ ‘Retailing’ ‘Post-‐tailing’
27. Coupons
Are
Popular
With
Younger
Demo
Do
you
receive
coupons/
promo7ons
AT
LEAST
MONTHLY
on
your
cell
phone/smartphone
or
handheld
wireless
device?
source: Forrester | North American Technographics Benchmark Survey 2009
28. For
What
Products
Do
They
Want
Coupons?
I
would
not
be
interested
in
receiving
discounts
on
my
cell
phone 70%
56%
Restaurants
(e.g.,
McDonald’s,
SUBWAY,
Applebee’s 23%
30%
Drinks
(e.g.,
Coca-‐Cola,
Starbucks 17%
23%
Household
Products
(e.g.,
dishwashing
liquid,
all-‐purpose
cleaner) 14%
23%
Personal
care
products
(e.g.,
shampoo) 13%
14%
Music
or
DVDS 12%
27%
Snacks
(e.g.,
candy
bars,
chips) 12%
21%
Fashion/apparel 12%
18%
Events
(e.g.,
concerts,
movies) 11%
18%
Travel/air 9%
15%
Car
Maintenance
and
repairs 8%
11%
0% 18% 35% 53% 70%
US
mobile
Owners US
mobile
owners
ages
18-‐24
source: Forrester | North American Technographics Benchmark Survey 2009
29. But
How
Do
Delivery
OpIons
Stack
Up?
Discover Collect Hold Match Redeem
Mobile
(SMS)
Mobile
(bluetooth)
Mobile
Web
Mobile
Applica+on
Paper
(FSI)*
Paper
(rebate)
Online
(FSI)*
Online
(rebate)
Email
Loyalty
programs
source: Forrester | North American Technographics Benchmark Survey 2009
30.
31.
32. If your a retailer there is no
trouble: It’s a manufacturer issue
33. Coupons
-‐
How
They
Work
-‐
A
Simplified
Overview
Brand Brand
issues reimburses
Coupons retailer
PAIN POINTS
41. Consumer
Flow
Code
Consumer Consumer Receipt has Consumer
Verified and
Buys a gets Dynamically texts back
discount
generated Pin Code to
XXX receipt added to
Pin Code Short Code
loylaty card
I am not going to show you the full breadth of mobile tactics because at the end of the day they all employ the same schema. I will focus on mobile apps because they are easiest to get screen shots of. I will tell you that mobile coupons have a high redemption rate of between 8-16% \n
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printing is becoming easier with the latest IOS update. The interesting thing is this is no different than an online experience. The phone has become an extension of my desktop experience\n
printing is becoming easier with the latest IOS update. The interesting thing is this is no different than an online experience. The phone has become an extension of my desktop experience\n
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It’s primarily a younger consumer that wants mobile coupons\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
According to Forrester researcher Julie Ask Loyalty cards are the easiest to use\n
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Assuming you have solved some of the backend equations there are still front of house hardware issues. Although this is changing rapidly most phones in market cannot reproduce a 1D bar code that is readable on the majority of phones. 2D codes are almost completely out of the equation. The good news is retailers can upgrade to these handheld 2D scanners for less than $100 each.\n
Ok, we have solved the hardware issues. But we still have clearing house issues of authenticating and redeeming the coupon on the phone. Until retailers go fully digital challenges will continue to abound\n
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A beast of burden created by crossing two things that weren’t originally meant to be used together…\nSort of like a peanut butter cup….\n
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Doing coupons are great but being able to do subscriptions, surveys and promotions without having to spend additional media dollars to engage them. This is something you can’t do with traditional or digital coupons. In addition there is the measurement opportunities. This is where we think this kind of couponing gets really great. We have been playing with this for a while and what we do is \n
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Its not all doom and gloom however. There are a number of forward thinking retailers that addressed these issues over the last few years\n