mobile coupons - achieving scale

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Mobile Coupons June 9, 2010 CONFIDENTIAL Achieving Scale – What it REALLY Takes

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What it really takes to achieve scale with Mobile Coupons. It all comes down to Point-of-Sale integration and M-Dot Network is delivering the first true POS level integration with no hardware or infrastructure changes.

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Page 1: Mobile Coupons - Achieving Scale

Mobile Coupons

June 9, 2010

CONFIDENTIAL

Achieving Scale – What it REALLY Takes

Page 2: Mobile Coupons - Achieving Scale

Biggest Secret in Mobile Couponing?

Page 3: Mobile Coupons - Achieving Scale

It is a RETAIL Technology Problem.

Page 4: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Why Retail Technology?

Unique Identifier- Enter mobile

number- NFC

- Optical Scan

I N T E G R A T I O N

Page 5: Mobile Coupons - Achieving Scale

Retailer Mindset Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

Do it for me!

Page 6: Mobile Coupons - Achieving Scale

Retailer Mindset Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

Do it for me!

Do it for me!

Page 7: Mobile Coupons - Achieving Scale

Retailer Mindset Leverage existing retail technology stack

Minimal cashier involvement

Synergy with shopper card programs

Maximize shopper participation (not just smartphones)

Highest reach, number of consumer offers (coupons)

NO: New hardware such as scanners, servers, PIN pads or RFID readers

NO: Tactics that slow check-out

NO: Poor user experience = Unhappy shoppers, abandonment

NO: Narrow scope, technology available to a small fraction of shoppers

Do it for me!

Page 8: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Digital Incentive Life Cycle

Breakdown at Point of Sale (POS)

Fraud

No Integration

Proprietary

New Hardware

Page 9: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Digital Incentive Life Cycle

Seamless POS Redemption

Page 10: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Digital Incentive Network

• Secure, real-time, Transaction Network connecting Mobile and Internet based applications to retail Point of Sale (POS) systems.

• Known as “the final mile” in closing the loop for digital promotions.

• Complete pathway from promotion issuance to redemption, audit and fulfillment.

• A critical “NEW” set of “Rails” for retailers.

• Total “Coupon Ecosystem” alignment

Page 11: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Retailers Like Networks

Financial transaction processing network.

Prepaid Gift Card processing network.

Fraudulent Check verification network.

In-Store targeted coupon network.

Money order network.

Gas rewards redemption network.

Page 12: Mobile Coupons - Achieving Scale

Analytics – Real Time Redemption Reporting

(POS Integration Entry Point)

Real Time Settlement

Digital Incentive Network“Digital Incentive Networks will enable the real-time settlement of

many different types of media and stored value products.”

Page 13: Mobile Coupons - Achieving Scale

CONFIDENTIAL

About the Industry…

Networks: Mass-Market EnablementMobile / LBS / Scan

“Redemption Codes”GROCERY/MASS focus,

80% of all coupon volume… Real-time multi

item redemption for Grocery, Mass, Drug, C-

Store.

Specialized focus

Single offer redemption for Merchants

Page 14: Mobile Coupons - Achieving Scale

CONFIDENTIAL

How we Do it• Point of Sale (POS) is highly guarded by retailers

• M-Dot is integrated with the 2 leading POS companies:- IBM (50% of terminals in US grocery)- Retalix (24% share of terminals in US grocery)

• Retailers update their POS 2X annually – creating a “natural” integration window

• Seamlessly integrated on POS base load, retailers don’t have to worry

Page 15: Mobile Coupons - Achieving Scale

• >>>> YOUR APPLICATION HERE! <<<<• Dynamic layer – API integration• Frequent new products • Open framework

• The API reaching POS• Retail Tech standards• Security & Compliance• Configurable business rules

• POS vendor support• Systematic distribution• Base code

How we Do It

[integrate here]

Page 16: Mobile Coupons - Achieving Scale

CONFIDENTIAL16

Macro-Level Ecosystem

Page 17: Mobile Coupons - Achieving Scale

CONFIDENTIAL17

Macro-Level Ecosystem

Page 18: Mobile Coupons - Achieving Scale

CONFIDENTIAL

The Final Mile

The “Final Mile” for mobile coupons is being built RIGHT NOW!

The first EVER POS base code releases will be in July 2010 (IBM, Retalix)

Installations = Scale for mobile coupons (More Retailers/Shoppers/Advertisers)

Seamless process flow from Impression/Click to Redemption and Tracking

The MMA is KEY to standardization and interoperability

Page 19: Mobile Coupons - Achieving Scale

CONFIDENTIAL

Thank you!

Bill CataniaCEOM-Dot Network(p) [email protected]

Jeff ToeweEVP, ContentM-Dot Network(p) [email protected]

www.mdotnetwork.com