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Linking m-commerce to the physical PoS
Alcatel-Lucent
Toon Coppens     @touchatag
31 March 2011    http://www.alcatel-lucent.com/mws
Who we are
•   touchatag Venture of Alcatel-Lucent

•   Providing mobile payment & marketing
    services to
    • Mobile operators
    • Enterprises (retail, city, social media,..)

•   Based in Belgium, US & Turkey

•   Active since 2008

•   Combined offer with ALU ventures
    • Optism: mobile advertising
    • Dekaps: mobile app dev, augmented reality
    & marketing agency



http://www.alcatel-lucent.com/mws

Twitter: @touchatag


                                                              2
                                    COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Mobile & commerce: ubiquitous
Mobile & commerce: closing the loop



                            ?




                        Customer
                      Communication

        Advertising &             Customer identification,
       direct marketing           Reporting & Analytics


                          Sales
South-Korea Telecom: Q-Store
Scan in shop & buy online




   Scan 2D barcodes or NFC tags in the shop & buy online via the mobile



                                                     5
                           COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Mobile & commerce: many use cases
Secure identification at the PoS

• Criteria
 • Usability
 • Availability
 • Security
 • Personal
 • Cost
 • Future proof
• Technologies
 • Contactless


 • 2D barcodes
NFC promise: Mobile phone as Swiss
knife of secure mobile applications


                     •web           •access



    •communication                      •couponing


                                              •payment
      •advertising


                                     •loyalty
                       •transport

        Using Near Field Communication technology
NFC phones (March 2011 snapshot)

• Available NFC phones include a.o.:




    Google Nexus S   Samsung Star S5230    Nokia C7     Sagem Cosyphone

• More makers to announce NFC phones in 2011:
 • LG, RIM, HTC, Sony-Ericsson, Samsung
 • Projections: additional >50 million NFC handsets shipped in 2011
 • Frost & Sullivan expects >860 million NFC phones by 2015
Every card becomes a mobile application




 Real time Balance  Transaction history
      Business expense On the fly subscription
 Personal coupons P2P transactions
NFC payment demo
                    http://www.youtube.com/watch?v=28TwCpx4Dng




• Payment scheme:
 • Alcatel-Lucent Mobile Wallet Service micro-payment scheme
 • Based on stored value account (e-money, loyalty, coupons…)
• Consumer Phone: Google Nexus S NFC in tag emulation mode
• Merchant: mobile NFC phone Google Nexus S as point of sale
Mobile marketing techniques
Retail Industry & M-Commerce




           ReportingAnalytics Stock mgmt Customer segmentation
           Queue length Opex costs Cost of Cash handling
           Sales increase Loyalty Sales activation Sales frequency
           Customer interaction   CRM     Know Your Customer
Starting guide

 Objectives   Applications   Channels         Models         Services

   Sales                     Contactless     Closed vs       User Self
                 Saving
 increase                    card/sticker    Open loop      registration

    Sales       Coupon        Online /          (e)-PoS     Reporting &
 frequency      Services     Mobile Web     Integrated vs    Analytics
                                                  non
                                              integrated
   Sales          Gift         Mobile                         Balance
 activation     voucher      application                    interface for
                                             Uniform vs     web / mobile
                                              segment
 Shopping                                      based
                 Prepaid     NFC phone
 analytics                                    program
   Know
                Club card                   Open ended
   your         (access..)
                             2D barcode
                                              vs time
 customer                                     limited
                                            campaigns
   Opex           M-
 reduction     Commerce
Orange – Switzerland
SMS based couponing




                                           15
                  COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
SMS coupon uptake

1. Almost 50% of the subscribers are interested by Commercial SMS
2. Leading to a purchase in 21% of cases




This proportion reaches 53% for 15-24 years old, and 62% for women.




                                                                     16
                                            COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Adidas – Mobinil Egypt
Mobile advertising to PoS sales




                                                            Source: Alcatel-Lucent

                                            17
                   COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Target - US
Mobile coupons




                                          18
                 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Starbucks - US
Mobile for closed loop prepaid and loyalty
  Who?          Worldwide retail chain

                Cost reduction on transaction costs
  Goals
                Loyalty
                Prepaid account for PoS payment
  Application
                Merchant loyalty program: tracking stars
  Channels      Temporary 2D barcode generation
                Closed loop, top-up via cash deposit, credit/debit card
  Model
                Cash register integration
  Services      Mobile application
La croissanterie - France

Loyalty & coupon services, use
1. Dedicated contactless card
2. 2D barcode application
3. Any contactless transport card (Navigo)




                                                 20
                        COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Sanoma Magazines & Sanoma MVNO
Contactless loyalty & prepaid – mobile stickers
               European publisher active in 13 countries, market leader in Finland,
 Who?          Netherlands, Belgium..
               Flair Mobile: MVNO
               Sales and sales frequency increase
 Goals
               Identify PoS consumer for further sales activation
               Loyalty for Flair Magazine: 4 + product plus
 Application
               Prepaid program for Humo Magazine: pay for 10 and get 12
 Channels      Contactless stickers, POS GPRS reader , website

 Model         Closed loop, not integrated into PoS, targeted, limited in time

 Services      website, SMS self registration, activation
City of Antwerp
City marketing - City loyalty card
                              Stimulate participation in sports and culture
   Goals                      Increase local community sense
                              Improve the city offering based on consumption analytics
   Application                Loyalty card & saving program for the citizens and tourists

   Channels                   Contactless card, POS devices, online

   Model                      Loyalty club, gift vouchers, saving program

   Services                   Registration, location & check in based savings, reward clearing




                                  + 1 points at             + 1 points at       -1 coupon for free
                                    swimming                      library         access museum
                                          pool




                                                  Loyalty & Coupon Wallet

 22 | Touchatag |April 2010
McDonalds - Japan
NFC coupon services
Maxis - Malaysia
NFC smart posters




                                             24
                    COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Solution components

                                                                          consumer

                                           Balance check Communication


                                                               Communication



                                   SMS                                                                Reporting & Analytics




                                                                                     administration
                                              transactions
                        NFC
                                   PoS                           Mobile
                        2D
                                                                 Wallet                               Campaign management
                                  WEB                                                                                           Admin
                                                                 Service                                                      (merchant
                                 Mobile                          Profile server                       Consumer registration    /brand)
  consumer                   Application
                                                               Program Database


                                                                     APIs



                                                             External      Social
                                                             Payment      networks
                                                             networks

25 | Touchatag |April 2010
Solution management
Conclusions

• Mobile marketing
 • should become part of any multi-channel strategy
 • can influence directly PoS sales results
 • is feasible today


• Remote communication services
 • SMS/MMS – Web – Mobile application


+
• Identification services
 • Connected contactless cards - 2D barcode -> to
   evolve to NFC phones
Linking m-commerce to the physical point of sale

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Linking m-commerce to the physical point of sale

  • 1. Linking m-commerce to the physical PoS Alcatel-Lucent Toon Coppens @touchatag 31 March 2011 http://www.alcatel-lucent.com/mws
  • 2. Who we are • touchatag Venture of Alcatel-Lucent • Providing mobile payment & marketing services to • Mobile operators • Enterprises (retail, city, social media,..) • Based in Belgium, US & Turkey • Active since 2008 • Combined offer with ALU ventures • Optism: mobile advertising • Dekaps: mobile app dev, augmented reality & marketing agency http://www.alcatel-lucent.com/mws Twitter: @touchatag 2 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 3. Mobile & commerce: ubiquitous
  • 4. Mobile & commerce: closing the loop ? Customer Communication Advertising & Customer identification, direct marketing Reporting & Analytics Sales
  • 5. South-Korea Telecom: Q-Store Scan in shop & buy online Scan 2D barcodes or NFC tags in the shop & buy online via the mobile 5 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 6. Mobile & commerce: many use cases
  • 7. Secure identification at the PoS • Criteria • Usability • Availability • Security • Personal • Cost • Future proof • Technologies • Contactless • 2D barcodes
  • 8. NFC promise: Mobile phone as Swiss knife of secure mobile applications •web •access •communication •couponing •payment •advertising •loyalty •transport Using Near Field Communication technology
  • 9. NFC phones (March 2011 snapshot) • Available NFC phones include a.o.: Google Nexus S Samsung Star S5230 Nokia C7 Sagem Cosyphone • More makers to announce NFC phones in 2011: • LG, RIM, HTC, Sony-Ericsson, Samsung • Projections: additional >50 million NFC handsets shipped in 2011 • Frost & Sullivan expects >860 million NFC phones by 2015
  • 10. Every card becomes a mobile application Real time Balance Transaction history Business expense On the fly subscription Personal coupons P2P transactions
  • 11. NFC payment demo http://www.youtube.com/watch?v=28TwCpx4Dng • Payment scheme: • Alcatel-Lucent Mobile Wallet Service micro-payment scheme • Based on stored value account (e-money, loyalty, coupons…) • Consumer Phone: Google Nexus S NFC in tag emulation mode • Merchant: mobile NFC phone Google Nexus S as point of sale
  • 13. Retail Industry & M-Commerce ReportingAnalytics Stock mgmt Customer segmentation Queue length Opex costs Cost of Cash handling Sales increase Loyalty Sales activation Sales frequency Customer interaction CRM Know Your Customer
  • 14. Starting guide Objectives Applications Channels Models Services Sales Contactless Closed vs User Self Saving increase card/sticker Open loop registration Sales Coupon Online / (e)-PoS Reporting & frequency Services Mobile Web Integrated vs Analytics non integrated Sales Gift Mobile Balance activation voucher application interface for Uniform vs web / mobile segment Shopping based Prepaid NFC phone analytics program Know Club card Open ended your (access..) 2D barcode vs time customer limited campaigns Opex M- reduction Commerce
  • 15. Orange – Switzerland SMS based couponing 15 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 16. SMS coupon uptake 1. Almost 50% of the subscribers are interested by Commercial SMS 2. Leading to a purchase in 21% of cases This proportion reaches 53% for 15-24 years old, and 62% for women. 16 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 17. Adidas – Mobinil Egypt Mobile advertising to PoS sales Source: Alcatel-Lucent 17 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 18. Target - US Mobile coupons 18 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 19. Starbucks - US Mobile for closed loop prepaid and loyalty Who? Worldwide retail chain Cost reduction on transaction costs Goals Loyalty Prepaid account for PoS payment Application Merchant loyalty program: tracking stars Channels Temporary 2D barcode generation Closed loop, top-up via cash deposit, credit/debit card Model Cash register integration Services Mobile application
  • 20. La croissanterie - France Loyalty & coupon services, use 1. Dedicated contactless card 2. 2D barcode application 3. Any contactless transport card (Navigo) 20 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 21. Sanoma Magazines & Sanoma MVNO Contactless loyalty & prepaid – mobile stickers European publisher active in 13 countries, market leader in Finland, Who? Netherlands, Belgium.. Flair Mobile: MVNO Sales and sales frequency increase Goals Identify PoS consumer for further sales activation Loyalty for Flair Magazine: 4 + product plus Application Prepaid program for Humo Magazine: pay for 10 and get 12 Channels Contactless stickers, POS GPRS reader , website Model Closed loop, not integrated into PoS, targeted, limited in time Services website, SMS self registration, activation
  • 22. City of Antwerp City marketing - City loyalty card Stimulate participation in sports and culture Goals Increase local community sense Improve the city offering based on consumption analytics Application Loyalty card & saving program for the citizens and tourists Channels Contactless card, POS devices, online Model Loyalty club, gift vouchers, saving program Services Registration, location & check in based savings, reward clearing + 1 points at + 1 points at -1 coupon for free swimming library access museum pool Loyalty & Coupon Wallet 22 | Touchatag |April 2010
  • 23. McDonalds - Japan NFC coupon services
  • 24. Maxis - Malaysia NFC smart posters 24 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
  • 25. Solution components consumer Balance check Communication Communication SMS Reporting & Analytics administration transactions NFC PoS Mobile 2D Wallet Campaign management WEB Admin Service (merchant Mobile Profile server Consumer registration /brand) consumer Application Program Database APIs External Social Payment networks networks 25 | Touchatag |April 2010
  • 27. Conclusions • Mobile marketing • should become part of any multi-channel strategy • can influence directly PoS sales results • is feasible today • Remote communication services • SMS/MMS – Web – Mobile application + • Identification services • Connected contactless cards - 2D barcode -> to evolve to NFC phones