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TRANSCRIPT
Video
Toss the Scissors, Coupons Have Gone Mobile
October 1, 2011
4:00 p.m. – 5:00 p.m.
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Erika Curtis Product Specialist, Electronic Payment Systems GROWMARK, Inc. Larry Jackson, Jr. Managing Director GTG Business Resources, LLC dba Good To Go Markets Wayne Wills VP, Merchandising Certified Oil Company
Speakers
Moderator Rick Sales President Abierto Networks, Inc.
Why are Mobile Coupons Growing so Fast?
Economic Conditions
“94% of the U.S. population reported using coupons while shopping.”
– Promotion Marketing Association , 2010
Why are Mobile Coupons Growing so Fast?
Market Penetration of Texting
“72% of U.S. adults and 87% of teens are text-messaging.”
– “Cell Phones and American Adults”, Pew Research Center’s Internet & American Life Project
Adults
Using
Text:
72%
Non-Text Users:
28%
Why are Mobile Coupons Growing so Fast?
Ease of Use for Consumer
“The fact that consumers are increasingly comfortable communicating via SMS means that brands and retailers could potentially use the channel to speak with them.”
ABI Research, 2011
SMS is the most widely used data application in the world with 2.4 billion active users, or 74% of all
mobile phone subscribers!
Terminology
Short Message Service (SMS) is the text communication component of mobile phone devices. Using standardized communications protocols, it allows the exchange of short text messages between devices.
Terminology
Express permission by a customer to allow a
marketer to send text messages. After the Opt-in, the marketer will keep on sending text messages
until the recipient chooses to Opt-out.
Terminology
Push A push is when a marketer sends a text message to an
Opted-in customer who has not specifically requested it.
Terminology Common Shortcode
A short numeric code (typically 4-6 digits) to which text messages can be sent from a mobile device.
shortcode
Terminology Keyword
A keyword is a word or name used to request a targeted message or offer within a Common Shortcode service.
keyword
Terminology Stickiness
For example, 90% stickiness per year means that 90% of
your Opted-in customers did not Opt-out after one
year.
The rate of retention of your Opted-in customers over a period of time.
Terminology Redemption Half-life
For example, if 50% of your redemptions for a given coupon take place within two days of the coupon’s distribution, your Redemption Half-Life is 48 hours!
The time it takes for half of all total redemptions, on one
specific coupon push or promotion, to take place.
Terminology Lead-source Tracking
The ability to track the advertising source that your consumer used to learn about your mobile coupon.
Terminology
Targeting
The ability to target a specific consumer with a mobile coupon offer.
Terminology Redemption Control
The ability to control redemption rules for a mobile coupon (like expiration date, single use vs. multiple use,
qualifying items and discount amount).
Benefits to the Retailer Erika Curtis – GROWMARK, Inc.
162 Independently owned C-stores
Systems used •VeriFone Ruby •VeriFone Sapphire •Gasboy CFN III with Profit Point •Stand-alone terminals
Getting Consumers to Opt-in …text ABN3
to 857-00…
…text ABN4
to
857-00…
Retailer …text ABN5 to 857-00...
2 seconds ago · Comment · Like · Delete
…text ABN6 to 857-00… #retailer
If they like your coffee,
they will try your
combo…
How can you get
them to try your
coffee?
How do Mobile Coupons work?
Advertise a keyword and a shortcode in your promotional offer
How do Mobile Coupons work?
If interested, consumers respond by texting the keyword to the shortcode, and receive the
mobile coupon as a reply
How do Mobile Coupons work?
Consumers go to the retail location and present the coupon by displaying it on their cell phone
How do Mobile Coupons work?
Retailer grants the discount
Types of Mobile Coupons Basic SMS Mobile Coupons
“Show ur phone @ checkout…”
Types of Mobile Coupons Enhanced Mobile Coupons
Text ABN to 85700 Additional Features:
Lead-Source Tracking
Push
Targeting
Types of Mobile Coupons Intelligent Mobile Coupons
Buy any two 16oz AMPs, get a FREE
16oz AMP. Bring ur phone 2 any Fas-Trip Store 2 redeem coupon
49876238244 Exp. Date:3/31/2011
Cash Value: 1/20 of $.01
powered by Abierto Networks
Additional Features:
Redemption Control
POS Integration
Text DMP to 85700
Types of Mobile Coupons Basic Enhanced Intelligent
Lead-Source Tracking
No Yes Yes
Targeting No Yes, by Keyword
Yes, by PLU
Redemption Control
No No Yes
POS Integration
No No Yes
Benefits to the Retailer
GROWMARK’s Needs
Build brand loyalty
Drive customer in-store purchases
Utilization of technologies that our customers have.
Differentiate other loyalty offerings.
Make it EASY!!!
Weighing the Options
The Good The Issues
Ruby Ruby
Offering Other POS supported
Reporting Illustrate the ROI
Green Marketing Marketer Adoption
Aggregate Data
GROWMARK’S Program
Enhanced and Intelligent Coupon Packages
Digital Signage Add-on
8oz Aquapod $0.25 Special
(1 coupon per person)
Exp Date: March 28, 2011 5:00pm
Cash value 1/20 cent
Benefits to the Retailer
Larry Jackson, Jr. – GTG Business Resources, LLC. Good to Go Markets
3 Company owned and operated C-Stores
• Operates stores in Metropolitan DC/Maryland area
If you have a Smartphone, go to
your “App Market” and install a free
copy of any “QR Reader” now.
Good to Go Markets
On Facebook
GoodtoGoMarkets.com
Social Media & Mobile Coupons
Why is Social Media so powerful?
- Facebook as of January 2011 has more than 600 Million users. www.businessinsider.com (Jan. 5, 2011)
- The United States as of the 2010 Census... 308 Million residents.
- 250 Million Facebook users, use Facebook Mobile.
- Facebook is valued at $45.1 billion.
- 60% of that value is based on Text and Display ads. www.Bloggingstocks.com (Apr. 8, 2011)
If Facebook were at country...
Numbers have power.
Why is Social Media so powerful?
— Started in 2006, it took 3 years, 2 months and 1 day to post 1 billion tweets. Now... 1 billion every week. www.huffingtonpost.com (Mar. 3, 2011)
— 8% of Americans Tweet (That's 25 million people) www.adweek.com (Dec. 9, 2010)
— Facebook and Twitter serve as a “gateway” to the internet.
— They are “opt-in” “permission” based entities. People have to want to be a part of the action.
Why is Social Media so powerful?
- They target key Convenience Store demographics, 18 to 35.
- They can be configured to notify the subscriber every time you post by text message.
- They are FREE.
- They work hand in hand with other brand building mobile / internet based tools.
Other Social Media Tools
By the way... there's an “App” for that.
- Can be tied to Mobile Coupon program, Facebook, Twitter, Loyalty Programs...
- Gives you control over the customers decision. They will just click their “App”
Foursquare & Facebook Places
Users “check in” and earn points. When they reach certain point levels the business can issue mobile coupons to be redeemed at
their next visit.
Other Social Media Tools The Mobile Coupon Hub
Social Networking & Mobile Coupons
Can make a small company, look big.
The Quick Response Code
We used
these cards
at our registers
to take people
to the website
so they could
register their
loyalty card.
The Quick Response Code
Make
it
FUN!
The Quick Response Code
Thank you for coming to “Toss The Scissors Coupons Have Gone Mobile!”
Don’t forget to fill out our presentation evaluation. Visit: http://qrcode.kaywa.com for more info.
Benefits to the Retailer
Wayne Wills – Certified Oil Company 81 Company owned and operated C-Stores
• Geographically located in Ohio, Kentucky and West Virginia
• Verifone Ruby POS at all stores
• Variety of store formats and sizes
Benefits to the Retailer Certified Oil’s Needs
• Increase Foodservice, Coffee and Fountain Drink sales
• Increase participation in Loyalty Program
• Focus Consumers on Weekly Specials
• Provide uniformity of message across all stores
• Utilize technology to increase efficiency
Focus Consumers with Digital Signage
Featured
Items Loyalty
Menu
Pricing Combos
Mobile Coupons & Digital Signage Why advertise Mobile Coupons on in-store
Digital Signage?
• High impact medium
• Consumers pay more attention to Digital Signage with imbedded mobile coupons
• Leverage complimentary offers
• Not a straight-up price reduction
• Ease of distribution
Certified Oil’s Solution
Use Enhanced Coupons to increase participation
Promote menus and pricing
via digital signage
Integrate loyalty messaging in
digital signage
Bring it together with Social Media
Advertise
Promotions,
Loyalty and
Mobile Coupons
on Facebook
Convergence of Digital Marketing Technologies
Why should Mobile Coupons, Digital Signage & Social Media be BFFs?
No one medium can be totally effective by itself: Mobile Coupons need awareness
Social Media needs people to participate
Digital Signage needs engaging, interactive content
Case Study • Sponsored by:
– Fas-Trip
– Pepsi
– Washington Town & Country Fair
• 6 days
• 11 different keywords
• 11 different promotional offers – 2 keywords each day in 2 different areas
of the fair
– Pepsi Main Stage Jumbotron and Digital Signs
– Consumers entered into “raffles” for concert front-row tickets and free gas cards
Case Study Coupon Rules
• Multiple Free Product Prizes (16 oz AMP, 32oz Fountain Drinks, 12pk Pepsi Max, 20oz Pepsi Max, Candy Bars)
• Multiple conditional offers (Buy any 20oz Pepsi Product and Get a Free 20 oz Pepsi Max)
• Different Prices
• Unique Coupons – Single Redemptions
• Expiration Dates
Case Study
Redemption
• Multiple Stores
• Remote Host
• Fully Integrated with Ruby Sapphire POS
• Host control for invalid use of coupon (non-qualifying items, barcode already used)
Opt-ins 1,842 Total Opt-ins = 1,434 Unique + 408 Multiple
84% of Texters Opted-in to one Keyword
10% of Texters Opted-in to two Keywords
Opt-ins Distribution of Opt-ins @ Pepsi Stage
Prolonged exposure to keywords
helps results!
Opt-ins Market Penetration
85% are in local area
codes 636 & 314
93% are in Missouri
area codes
Opt-ins Market Penetration
Opt-in Percentage for Texters
Day Date KEYWORD Opt-ins Crowd (*) Texters(^) (% Opt-ins)
THUR 8/5/2010 AMP 205 11000 6415 3%
FRI 8/6/2010 FEVER 340 17500 10206 3%
SAT 8/7/2010 PASS 205 15000 8748 2%
SUN 8/8/2010 VIP 429 12500 7290 6%
(*) Estimated Show Attendance from eMissourian.com
(^) Source: TECHNOLOG on MSNBC, Assumes:
81% Adults have cell phones
72% Adult Cell Phone users Text
58% of ALL ADULTS are “Texters”
2% to 6% of Texters Opted-in!
Redemptions
231 Total Redemptions
from
1,845 Opt-ins
equals
12.5% Redemption Rate!
However, the details tell a different story…
Redemptions
Overall, much higher redemption rates than paper coupons!
Better Offers had Higher Redemption Rates…
Redemptions
Great offers have huge redemption rates…
…regardless of venue!
Redemptions
Multiple coupons running over the
week-end!
Redemptions
56% of all Redemptions within 48 hours of Push!
Case Study
• Market penetration data shows a 3% to 6% in one week!
• Average redemption rate was 12.5%
– Individual coupon redemption rates ranged from 9% to 29% depending on offer and day of week
• Redemption Half Life
– 48 hours!
• Opt-in Stickiness
– 96%
Questions?
Thank you!
Wayne Wills Certified Oil Company
Larry Jackson Good To Go Markets
Erika Curtis GROWMARK, Inc.
Rick Sales Abierto Networks, Inc.
