mobile marketing 101 fundamentals in mobile marketing implementation

Mobile Marketing 101Fundamentals in mobile marketing implementation

Honeywell Proprietary

Honeywell.com

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Industry Trends & Statistics

57% consumers would like to receive mobile coupons – Deloitte

100M forecasted users of mobile coupons by 2010 – Juniper Research

3Bn mobile coupons issued by 2011 – Juniper Research

1% redemption rate for printed coupons – CMS Inc.

5% redemption rate for mobile coupons – Juniper Research

$7Bn redemption value of mobile coupons by 2011 – Juniper Research

Mobile marketing is here. Are you prepared?


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Why are retailers investing in mobile marketing?

Cost Savings

No Printed PaperNo Shipping Fees

No Labor CostNo Advertising

Fee

Real Time

Targeted Audience

Customizedper customer

No more “cutting”coupons

Increased Redemption

Lower Costs, Increase Sales while being more environmentally friendly

Real Life Implementations of Mobile Marketing


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Mobile Phone Applications in Retail

In-Aisle Promotions Electronic Loyalty Mobile Coupon RedemptionMobile Payment

>100 million trees are used each year for paper coupons

2.8 million automobiles emit the same amount of carbon emissions created to dispose of paper coupons

Support the Green initiative, while improving your bottom line


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Advertising – Text to Action

Demonstration: Text “Honeywell” to 78527 (Powered by CodeBroker, Verizon does not apply)

CodeBroker www.codebroker.com

CellFire www.cellfire.com

RocketBux www.rocketbux.com

How It Works1. Advertise using normal marketing methods

- Print, billboard, TV, web, etc.

2. Call-to-action is text a keyword to a short code3. Customer will get an automated response with

promotional offering4. Customer can redeem promotion at store location

Customer Benefits:– Selectively accept promotional offers– Easier call to action than website, phone or fax– Always have the coupon on your person

Retailer Benefits:– Increased redemption rate, increases revenue– Allow customer to immediately react, increasing

likelihood of success– Reduced costs with automated back-end– Environmental image


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How It Works1. Customer downloads app to mobile phone2. Retailer registers with servicer provider (CellFire)3. Retailer posts promotional offers online to the

CellFire website4. Customers browse using app, download

promotions of interest5. Redeemed at the store through scanning of code

or hand keying promotional code

Customer Benefits:– No more clipping coupons– No more forgetting paper coupons at home

Retailer Benefits:– Reduce cost of printing coupons– Higher redemption rate– Targeted geographic audiences

Online Browsing-Based Promotions

Saved Offers Page

All Offers Page

Offer Detail Page

Offer Code Page

Visit www.cellfire.com to see retailers already taking advantage


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In-Aisle Promotional Offers

More advanced systems required and customer must be tech savvy

How It Works1. In-aisle kiosks or Bluetooth hotspots

stationed throughout the store2. Customer activates their Bluetooth network

on their phone3. Downloads and offers can be pushed to the

phone based on store location

Customer Benefits:– Real time promotional offers– Don’t have to carry additional paper

discounts

Retailer Benefits:– Corporate image: Green and environmental– Improved customer satisfaction


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Mobile Payment & E-Gift Card

How It Works1. Unique ID created and linked to pre-paid account2. Unique ID encoded in bar code3. Bar code distributed to customer via phone4. Upon each transaction, scan bar code to debit the

account

Customer Benefits:– Never forget your gift card at home– Reduced wallet size

Retailer Benefits:– Corporate image: Green and environmental– Reduced costs minimizing printed cards– Improved customer satisfaction

Avoid the costs of printing 1000’s of gift cards per year


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Electronic Loyalty Cards

Scanaroo www.scanaroo.com CardStar www.mycardstar.comWalletZero www.walletzero.comRoyalty Rewards www.royaltyrewards.comCodeBroker www.codebroker.com

How It Works1. Download app to phone2. Select store 3. Type enter loyalty number4. Present phone to cashier at checkout

Customer Benefits:– Increased savings by always having their card– No hassle: lost cards or oversized wallets

Retailer Benefits:– Corporate image: Green and environmental– Reduced costs minimizing printed cards– Improved customer satisfaction

Customers are downloading and attempting to use these apps TODAY!


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Direct Marketing to Mobile PhonesHow It Works

1. Target audience pulled from database2. MMS/SMS distributed to customer mobile phones3. Message contains bar code or link to promotional

code offering4. Customer presents code at time of checkout

Customer Benefits:– Promotions sent directly to phone– Easier redemption and always on your person

Retailer Benefits:– Corporate image: Green and environmental– Reduced costs with less printed paper– Increased sales with higher redemption rates

Get promotional offers to customers faster and more effectively

5 Rights of Mobile Marketing


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Mobile Marketing Value Chain

Right Customer Right Bar Code Right Scanner

Target a specific set of customers that have similar buying habits so you can offer the…

Right Promotion

To maximize redemption rates and increase sales by sending the…

Who will optimize the bar code for size and orientation on each unique mobile phone so that the…

That contains all the necessary information through the…

Can ensure the highest read rate and customer throughput.

Right Provider

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Retailer Marketing or Outsourced Agency Mobile Marketing Solution ProviderBar Code Scanner

Manufacturer

This can result in an increase in redemption rate by 500%


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Right Provider: One size does NOT fit all

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With over 1000+ unique phones, look for a partner who can render for your demographic and needs


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Right Provider: One symbology does NOT fit all

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Altering size and ratio of code can result in “no read” scenarios


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Right Provider: Every phone is unique

Each phone has optimal symbologies and orientation to improve reading

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Right Scanner: Technology

LASER Scanner

REQUIRED:Reflection from each SPACE

2D IMAGER

PROBLEM:LCDs do not reflect light

SOLUTION:Take a picture with an imager

Digital Imagers essentially take a Black & White picture of the screen and process the image in Software


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Right Scanner – Form Factor Preference

Fixed PositionPresentation Scanners

Ideal Use Case:• Low volume transactions (<5 items)• Large/bulky items• Tethered to Aux port of bioptic

Retail Industries:• Specialty store• Discount – secondary scanner• Grocery - secondary scanner

Ideal Use Case:• Fixed reading• Integrated into other equipment such

as kiosks

Retail Segment:• Grocery• Discount• Large store footprint

Ideal Use Case:• Mid-volume transactions (5-15 items)• Majority of items are smaller sized• Swipe scanning for faster throughput

Retail Segments• Specialty Store• Convenience Store• Pharmacy

Hand-Held Scanners

Select scanner on transaction size, SKU type and checkstand layout

Anatomy of a Win


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The Situation

Customer Top 10 U.S. Retailer

Industry Retail

Application Mobile Couponing

The Challenge

Traditional printed coupons provide an average redemption rate of 1%, and are becoming less popular with the younger demographic.

Consumers are always forgetting or leaving behind printed coupons, causing frustration at the time of checkout that the discount is not awarded

What tools are available to retailers to:

i) drive better ROI on marketing promotions,

ii) reach demographics not currently receptive to traditional marketing campaigns, and

iii) better track individual behavior


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The Solution

Honeywell Product Focus 1690

Other AIDC and IT equipment CodeBroker Mobile Couponing Software

• Nationwide deployment of a subscription-based mobile couponing service

• Consumer can register online and provide his/her mobile phone number to receive monthly promotional offers

• CodeBroker delivers a highly optimized PDF417 bar code based on each individual model of mobile phone

• Consumer presents their mobile phone at the time of checkout where it is scanned by the Honeywell Focus 1690

• Required no POS software modification


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The Experience and Results

• Started with pilot projects in one and then multiple stores – led by marketing

– Goals were to test scanning, cashier behavior, redemption rates, learn about other potential issues

• Store operations involved at each step in the process

• No POS modifications required. No integration required for pilots

• After successful testing, rolled out nationally

• Has been a highly visible success for marketing and they expect it to drive significant revenue


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Honeywell & CodeBroker Evaluation Program

Contact a Honeywell representative for more information

Package A Package B Package C

Honeywell Area-Imaging Bar Code Scanners(Xenon 1900 and Genesis 7580 scanners only)

Up to 5 Up to 20 Up to 50

CodeBroker Campaign Management SW Y Y Y

# of Promotions 1 2 2

# of Texts per Promotion 2,500 5,000 10,000

Duration of Promotion 2 weeks 1 month 2 months

List Price* $5,000 $15,000 $35,000

*Expenses related to the installation and integration of hardware is the responsibility of the retailer and is not included in the price of an evaluation package.


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Things to Remember

• Mobile marketing can be used in a variety of applications– Payment, Promotions, Loyalty

• Five Rights– Right customer: more targeted campaigns

– Right promotion: real time and customized by customer segment

– Right bar code: they are not all the same

– Right provider: campaign delivery and bar code optimization

– Right scanner: imaging device, not laser

• The benefits can be huge– 500%+ Increase in promotional sales due to higher redemption rates

– Reductions in marketing expense, eliminating paper and advertising fees

– Green corporate image

No change to POS SW if just replacing printed codes with mobile


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Dynamic Gateway Solution (DGS)

If the Point of Sale software does not handle the extra data desired in a mobile marketing campaign…

DGS (Dynamic Gateway Solutions) offers an intermediary device that can parse, validate, and redeem mobile coupons and deliver a pre-formatted standard coupon code back to the POS device.

Redemption, loyalty, and other data is parsed out and validated via a connection to the internet and API’s that sync to the mobile coupon provider’s site.

• Sits between Point Of Sale and barcode scanner

• Works with various Mobile Coupon providers

• Does not requite Point Of Sale software integration


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Informational Sites

• Industry Trends– Mobile Marketer www.mobilemarketer.com

– Mobile Marketing Association www.mmaglobal.com

– Mobile Marketing Watch www.mobilemarketingwatch.com

• Mobile Marketing Providers– Mobivity www.mobilemarketing.net

– CodeBroker www.codebroker.com

– CellFire www.cellfire.com

– RocketBux www.rocketbux.com

• Software/Hardware Gateway– DGS http://dynamic-gateway.com/

• Bar Code Scanning Solutions– Honeywell www.honeywellaidc.com

MS7580 Genesis

MS1600 Focus Series 4600 & 4820

4800p & MS4980 VuQuest

mobile marketing 101 fundamentals in mobile marketing implementation

Documents

bn mobile coupons

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clipping coupons

cutting coupons

forgetting paper coupons

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text honeywell