Creating Superfans through mobile engagement

M arketing Guide

Data-Driven

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ContentsWhy invest in mobile?

The Mobile Wallet

Mobile insight

Delivering timely and contextual communications

Data driven mobile engagement

Mobile state of mind

Loyalty

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Why invest in mobile?From payments to e-commerce, research and customer engagement; mobile is increasingly blurring the lines between online and offline.

When we think of mobile, we’re not just talking about smartphones, but also wearables, tablets and even laptops. These devices enable consumers to acquire instant fulfilment, solve problems and find what they need, all at a rapid pace. This means consumers are often moving faster than brands, and is why mobile must be a key part of any engagement strategy.

Consumers have higher expectations and new shopping behaviours & attitudes towards interacting and engaging with brands. Whether a retailer or restaurant; mobile allows customers to interact with your brand in real-time; from writing or reading reviews, collecting loyalty rewards, or placing an order.

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Fast

Fac

tsIgnoring mobile leaves you vulnerable to your competitors delivering a superior experience.

When in store:

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83%

access further detailed information on products using self-service interactive tablets or kiosks

52% 60% 73% 35% 75%

do (or would find it useful) to pay with their smartphone without going to the check-out, just by scanning the bar code/QR code

do (or would find it useful) to scan products' bar codes/QR codes to access details on the products

do (or would find it useful) to compare products' prices with other stores

have tested or looked at a product in-store before purchasing it online

of consumers use their mobile phone to access further detailed information on products.

(Sou

rce:

Fut

ure

Foun

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tion)

The Mobile WalletWe have seen growing consumer acceptance of the ‘Mobile Wallet’. From payments to loyalty or membership cards, tickets & coupons; the Mobile Wallet lightens the load in consumers’ pockets, replacing the need for carrying multiple cards.

It’s estimated that by 2017, mobile payments are expected to reach $90 billion in the United States alone1. The potential that mobile payments unlock is vast; from reducing queue times, to ‘paying as you go’ whilst moving through a store, reducing the need for cashiers and enabling your staff to focus on delivering the best customer experience.

The Mobile Wallet paves the way for brands to gain a richer insight and understanding of their customers, as shown in the diagram.

51 Source: Forrester

DRIVING BEHAVIOURS

DELIVERS

Identify customers beyond transactions (purchase data, preferences & behaviours)

REWARD

Deliver personalised & relevant experiences, offers

and rewards

Loyal customers who spend more & more frequently

Anonymous transactions will be a thing of the past

Delivering value via the Mobile Wallet:

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• PayPal enabled stores: sales assistants scan the app code as payment• PayPal One Touch: online payments across different sites/ apps without having to log-in

Samsung PayAvailable in the UK later this year

Pay PalAndroid PayThe new Google Wallet

Apple Pay

Mobile compatibility

How it works

On-premise POS requirements

All specifications and information accurate at time of writing

• NFC enabled (contactless) terminals• MST (Magnetic Strip Technology) terminals• EMV (Europay, MasterCard and Visa) terminals for chip-based cards.

• Payment directly from the app (selected retailers)• Upcoming NFC functionality (starting in the U.S. & Australia)

The key players in mobile payments

• NFC enabled (contactless) terminals• NFC enabled (contactless) terminals

• At the checkout: hold your iPhone/Apple Watch to a contactless reader - no need to open an app• Receive loyalty rewards automatically (IOS 9 onwards)

Payment, reward and gift cards

Can also be used to make in-app payments

• iPhone 6 & later devices• Selected iPads• Apple Watch

• All NFC-enabled smartphones & tablets operating Android 4.4 and above

• Samsung devices (Galaxy S6 & Note 5 & above)• Dongles & magnetic strip charging cases that plug into Android/iOS phones

• Any smartphone/tablet where the PayPal app can be downloaded

Coke is an early adoptor – when a customer presents their phone to an NFC enabled Coke vending machine they receive reward points.

In the UK, PayPal have launched app payments at the pump with Shell’s Fill Up & Go service - using the PayPal app on your smartphone rather than a card payment terminal.

• At the checkout: tap to use at any contactless payment terminal – no need to open an app • Loyalty points & offers auto-applied at checkout (selected retailers)

• At the checkout: swipe to launch the app & tap to the payment terminal (regardless of NFC, MST or EMV terminal)• Loyalty cards are expected to be integrated

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Mobile insight As we’ve highlighted, the number of channels a consumer can interact with via mobile is huge, so mobile insight shouldn’t sit in silo.

You need to have a real-time, 360-degree view of your customer, which should be contextual and integrated across channels.For example; do your customers use a mobile device topurchase or just browse? Are they connected to your in-store WiFi? What time do they open emails from you? Which store/premise locations do they visit? Do they engage with your social media channels on mobile or another device?

Having this kind of insight creates a valuable and well-rounded understanding of the customer, their preferences and behaviours - allowing you to drive relevant, timely and contextual experiences to increase transactions and engagement. We’re not saying this is easy, and may require major restructures in your business; but our help is on-hand to support you in remaining agile and forward-thinking.

Delivering timely and contextual communicationsSociety has never been so fast-paced. With every new technological development comes a rapid decrease in consumer patience – waiting more than 5 seconds for a webpage to load or 7 days for a delivery is increasingly poorly received. This is why it’s so important to be there ‘in the moment’.

Mobile presents the ideal opportunity to understand customers and drive behaviours in real-time through location-based marketing. Not only can you be useful and timely with your communications, but you can also influence existing customers to stretch their spend, win new customers and encourage repeat purchasing – all with measureable results.

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iBeacons, NFC, geo-location push notifications, adaptive digital displays and interactive kiosks/tablets all enhance and shape the customer experience. Of course, it’s important to remain aware of intrusiveness and respecting your customer’s privacy preferences here – neglecting this will only generate bad feeling towards your brand. Done right however, these location-based channels allow you to deliver highly personalised messaging, streamline the experience, and identify your best customers to reward them accordingly.

Beacons NFC

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What is it?

How can brands use

them?

What are the benefits?

In practice:

• Using Bluetooth Low Energy signals, Beacons provide proximity awareness

• You don't need WiFi, GPS or even a mobile connection

• NFC allows two devices near each other (e.g. a mobile phone and a kiosk) to communicate with no need to open an app

Add value by delivering contextual information & experiences based on customers’ locations:

• Target customers with offers/promotions to tempt them into your store

• In-store, send specific product information/recommendations

• Alert your staff to customer’s previous purchases & preferences to deliver

personalised service

• Customers can make payment anywhere in your store via a payment app (e.g. Apple Wallet or PayPal)

Contactless payments are the most common & obvious function for NFC, but like Beacons they deliver location-based relevance & minimise steps in the customer journey:

• Loyalty rewards & coupons can be redeemed alongside payment

• Access product information, check stock, read reviews & access offers with minimal effort by touching their phone to an NFC-tagged product or POS

• At home, tapping their phone to an NFC tagged item can enable one-tap re-ordering, e.g. printer ink cartridges

• Measure footfall in and around your store = optimally position merchandise

• Measureable results = e.g. take up of offers; or increase in ATV for customers acting upon a Beacon message

• Know exactly who’s shopping = real-time segmentation & targeting

• Uses much of the infrastructure already being used for contactless payments = consumers are already familiar with the process

• Link purchases, loyalty data & offer redemption to a single customer = instant insight into preferences & buying habits

• Deliver relevant offers, information & convenience in real-time

VMBeacon technology allows in-store mannequins to communicate messaging to shoppers, including prices, tailored offers and product information/locations

In the UK, Greggs uses NFC within their app to enable Android smartphone users to make payments, receive offers and collect and redeem rewards in a single tap at the till-point

Location-based technology explained

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Integrating loyalty

It’s also possible integrate your loyalty programmewith the Mobile Wallet (e.g. Apple/Android Pay). This delivers convenience for the customer so that they automatically and effortlessly collect rewards whenever they pay. You’ll generate rich insights into purchasing behaviours, engagement and interactions, which can be pulled into your Single Customer View alongside other data such as email engagement.

Data driven mobile engagementIf you’ve read this far, chances are you understand the importance of having a mobile engagement strategy; to drive sales, deliver engaging experiences and to be relevant to the customer in the here and now. The main benefit of a mobile loyalty or engagement strategy is real-time, contextual engagement to drive behaviours; for example:

• Notify customers at the till when they have received a reward, and they can also check their balance in real time

• Target customers whilst in-store with offers or promotions • Off-premise, send push-notifications to promote sales or exclusive events at the times when you know the customer is most active.

REWARD

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How to delivermobile engagement

Mobile

Single Customer View across all

touchpoints

Real-timetriggered

messaging

Highly engaged customers

For the brand: For the customer:

Omnichannelconsistency & data

collection

True singlecustomer £value

Integrated campaignsacross all channels

Consistent brand look & feel

Real-timeanalysis

Receives timely & relevant communication

2. Time and place are of the essenceTo win a mobile customer, you also need to connect with them in the right place at the right time via relevant, timely and contextual experiences. Mobile engagement needs to be fast. You have a very limited window to capture the customer’s attention; so what you’re offering must work seamlessly & quickly.

3. Consider the part it plays in the overall journey and customer experience

The part that mobile plays in the purchasing journey will differ for every customer. Don’t just think about mobile sales or app engagement in silo, this must be drawn together across touchpoints & interactions to create a holistic view of the customer.

Mobile state of mind

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Top tips for delivering mobile engagement excellence

1. Mobile is just the ENABLERMobile is just one channel. Yes, it’s the channel that best allows you to connect with consumers in the present moment and provide personalised experiences. But remember that it’s down to you to use the channel to deliver on this. You need to be focused on your specific customer’s needs – which devices are most appropriate to engage with them? Can you use them to add value to their experience, drive interactions and win their loyalty?

4. Mobile needs on-going investment & nurturing There is constant innovation in technology and whilst this may well impact on your brand, it’s important to develop an agile and adaptive mobile strategy. Don’t just implement and abandon mobile – the fact that you’re receiving real-time data means that there must be continuous analysis and understanding of customers. As time goes on, you’ll develop a clear picture of what works and what doesn’t, which you can learn from and adapt.

5. Think about how mobile works for your business

Mobile can be a big (but hugely worthwhile) investment and that’s why it’s so important to get it right. Think about the logistics; what do you need from your IT or technical departments? Does your data sit in silos that need to be integrated into a Single Customer View? Alongside the numbers and ROI, consider the data that it will provide: how will this enhance your knowledge of the customer so that you can increase sales and deliver exceptional experiences?

Mobile might seem overwhelming, but we’re here to help. We can show you the value of your customer data, as well helping you to build a business case for mobile engagement.

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5. Think about how mobile works for your business

Mobile can be a big (but hugely worthwhile) investment and that’s why it’s so important to get it right. Think about the logistics; what do you need from your IT or technical departments? Does your data sit in silos that need to be integrated into a Single Customer View? Alongside the numbers and ROI, consider the data that it will provide: how will this enhance your knowledge of the customer so that you can increase sales and deliver exceptional experiences?

Mobile might seem overwhelming, but we’re here to help. We can show you the value of your customer data, as well helping you to build a business case for mobile engagement.

Mobile is here to stay. Loyal customers drive 80% of a

business’ total revenue2, so don’t ignore the importance of customer engagement – get in

touch to see how we can help to grow your business.

142 Source: FiveStars

Don’t just take our word for it...

No matter what stage you are at with your customer engagement we have the intelligent, intuitive insight to help you achieve ROI and drive incremental revenue:

Ikano Insight is awesome with data,but even better at relationships.And that, ultimately, is what turns customer loyaltyinto a business’s success.

Do you want to build a new loyalty or customer engagement programme?

Do you want to improve an existing one?

Or, do you simply want to turn customer data into actionable insight?

Wherever you are with customer engagement, we have the

intelligent, intuitive insight to help you achieve greater ROI and

drive incremental revenue.

For more information please contact:

UK & Europe: Norway: info@ikanoinsight.com info@ikanoinsight.no

Sweden: Denmark: info@ikanoinsight.se info@ikanoinsight.dk

www.ikanoinsight.com ikanoinsight