CRM and loyalty marketers at all major retailers know that today’s mobile consumers are evolving rapidly, and have heightened expectations for their favorite retailers. What they may not know is that new mobile technologies, such as Google Wallet and Apple’s Passbook, are transforming retailer’s ability do deliver value to their most loyal customers. When used in tandem with loyalty programs, these innovative mobile wallets can amplify loyalty programs by making them more relevant, contextual, timely and useable. Featuring: Emily Collins, analyst at Forrester Inc., and Julie Novack, Senior Vice President of Mobile Solutions at Vibes.

1. Mobilize your loyalty
program with mobile wallet
MAY 20, 2014!
Emily Collins, Analyst at Forrester Research ! !!
Julie Novack, SVP Mobile Solutions !!
#walletloyalty!
@ecollins31!
@JulieRothNovack !

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Today’s speakers!
Emily Collins, Analyst at Forrester Research
and lead author of:
§ The Loyalty Program Participant Profile (published: February 20, 2014)
§ The Forrester Wave™: Loyalty Program Service Providers, Q4 2013
(published: October 30, 2013)
§ The State Of Loyalty Programs 2013 (published: October 3, 2013)
Julie Novack, SVP of Mobile Solutions at Vibes
§ Mobile Marketer Women to Watch in Mobile (2012)
§ The ABCs of Passbook & Google Wallet Presenter (February 6, 2014)
§ Google Wallet & Apple’s Passbook: 5 key differences you need to
know Presenter (November 26, 2013)

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Empowered consumers demand more control

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Your customers are “always on”

6. Your customers have more choices and can switch on demand

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What is the current state of loyalty?

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Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty
Program Service Providers Forrester Wave™ Customer Online Survey
Organizations are prioritizing their loyalty programs
Budget support is strong Loyalty is a key strategic
imperative
“How has your loyalty budget changed
year over year in 2013?”
43%
34%
3%
Increase Stay the same Decrease
Base: 50 loyalty program marketers; Source: Q3 2012
North America Loyalty Benchmark Online Survey

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Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™ Customer
Online Survey
Business objectives focus on both retention and
engagement

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Consumers
maintain a healthy
appetite for
loyalty programs

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Source: North American Technographics Customer Life Cycle Survey, Q2 2013
Over two-thirds of consumers belong to at least one
loyalty program
5%
22%
22%
25%
26%
33%
34%
35%
37%
39%
60%
68%
Other
Gas station
Entertainment
Department store
Quick service restaurant
Shopper club
Airline/frequent flyer
Hotel
Specialty retail
Bank/credit card
Pharmacy/Drug store
Supermarket/Grocery store
Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs
“Which of the following types of customer loyalty programs do you belong to?”
On average,
consumers belong
to about 8 loyalty
programs.

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Source: North American Technographics Customer Life Cycle Survey, Q2 2013
Consumers participate in the programs they join
I regularly participate
in most of the loyalty
programs I join
59%
I regularly participate
in just a few of the
loyalty programs I
join
36%
I rarely, if ever,
participate in the
loyalty programs I
join
5%
Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs
"Which of the following statements best describes your level of involvement with customer
loyalty programs you join?"

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Source: North American Technographics Customer Life Cycle Survey, Q2 2013
Active program members are willing to pay and share
64%
59%
56%
43%
50%
52%
37%
51%
50%
44%
48%
36%
33%
24%
When I find a brand I like, I stick to it
A brand's reputation is important to me
I prefer to buy brands that I have owned previously
Price is more important to me than brand names
I would pay more for products or services that save me
time and hassles
I often tell my friends and family about new brands,
products, or services that I have discovered
I would pay more for brands or products consistent with
an image I like
I regularly participate in most of the loyalty programs I join
I rarely, if ever, participate in the loyalty programs I join
Base: 3,266 US online adults (18+) who belong to loyalty programs
“How much do you agree with the following statements?”
(4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)

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Source: North American Technographics Customer Life Cycle Survey, Q2 2013
Consumers view programs as a way to save
24%
48%
50%
64%
78%
I belong to too many loyalty programs
Loyalty programs influence how much I spend
Loyalty programs influence what I buy
Loyalty programs influence where I make purchases
Loyalty programs save me money
“How much do you agree with the following statements regarding customer loyalty programs?”
(4 and 5 responses on a scale of 1 [Do not agree at all] to 5 [Agree completely] shown)
Base: US Online Adults 18+ (Online Weekly or More) who belong to loyalty programs

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Program differentiation
presents a significant
hurdle to success

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Marketers struggle to effectively communicate with
customers
24%
24%
25%
25%
26%
29%
41%
Managing program costs and points liability
Understanding customer interactions across all touch
points (online, mobile, social, offline, back office)
Measuring the results of our loyalty program/ initiatives
Maintaining a consistent member experience across
channels and touch points
Aligning our loyalty strategy with the overarching
business/enterprise strategy
Delivering offers with a high perceived value
Ensuring member awareness/ understanding of the
program and its benefits
Base: 98 loyalty program marketers; Source: Q3 2013 Global Loyalty Program Service Providers Forrester Wave™
Customer Online Survey
“What are the greatest challenges facing your customer loyalty program and initiatives today?”

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It’s time to seize the mobile moment.

19. A mobile mind shift has occurred
The expectation that any
desired information or service is
available on any appropriate
device, in context, at your
moment of need

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Source: North American Technographics Customer Life Cycle Survey, Q2 2013
Consumers have an appetite for mobile rewards
50% of loyalty program members want
mobile gift cards and reward
certificates.
44% of consumers are interested in
joining programs that offer mobile
coupons.

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But loyalty marketers have yet to fully embrace mobile

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The role of mobile in loyalty cannot be
understated.

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First, mobile boosts customer understanding
› Mobile helps marketers follow
program members across the
customer lifecycle
› Mobile channels are highly
trackable
› Mobile interactions create new
data streams

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Second, mobile streamlines loyalty program utility
Then Now
Mobile simplifies the member experience, and
gives members more control over when, where,
and how they participate.

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Third, mobile increases the relevance of loyalty programs
› Contextual insights help
marketers deliver more
personalized marketing content
› But it goes beyond creating a
mobile version of the loyalty card
and offers.
› Mobile also creates new
opportunities for engagement that
go beyond typical program
interactions

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Key takeaways…
› Loyalty is harder than ever to earn, but mission critical to
the success of your business.
› Customer loyalty strategies need to evolve with a focus on
relationships, relevancy, and engagement.
› Mobile channels create additional opportunities for
marketers to engage, recognize, and reward their best
customers.
› Delivering offers and content through mobile simplifies and
increases the utility of existing programs.

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile
Wallet 101 A “mobilized”
loyalty program
Getting
started
#walletloyalty!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile
Wallet 101 A “mobilized”
loyalty program
Getting
started
#walletloyalty!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile landscape overview!
Mobile
marketing !
Mobile
advertising!
Mobile !
experiences!
Mobile
service!
mobile
display
ads
rich
media
ads
apps
mobile web
experiences
m-commerce Mobile
media
buys
mobile wallet!
marketing!
QR
codes
SMS
MMS
mobile
alerts
mobile
database
loyalty
program
activation
service
alerts
targeting &
segmentation
push
notification
payments
Programmatic
(RTB)
service
apps
mobile!
coupons!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
The “non-payment” mobile wallet marketing movement!
§ Apple launched Passbook in
September 2012
§ The new Google Wallet app launched
in 2013 for iPhone & Android
Rewards
certificates
Loyalty
cards
Offers and
coupons

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
No words needed to explain the value to the consumer!!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Vibes’ Consumer Study: 85% see the benefits of mobile wallet!
No
Benefit
Digitizing
paper items
Organizing
on your
smartphone
Managing
point
balances
Time
sensitive
offers
Automatically
updated items
Location
aware alerts
22%
19%
13% 13%
10%
7%
15%
Mobile wallet benefits
85% perceived benefit!
Base: Total n=1,000
Source: Vibes 2013 mobile consumer survey – July 2013

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile wallet marketing is making a big impact!
On average, 70% of
consumers will save a
Passbook offer to their
phone when presented
with a pass.
64% higher conversion
rate over static mobile
web coupons When email is activated
with Mobile Wallet – 8%
increase in conversion !
Are people using it?! Does it work?! Does wallet lift
email conversion?!
26% increase in AOV
over static mobile web
offers

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Many use cases for mobile wallet (non-payment) !
Event/VIP Passes The Account CardThe Loyalty CardOffers & Incentives
CarrierOne
Account Number
12345678910
Our focus today

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Why mobilize your loyalty program?!
For the Consumer! For the Marketer!
§ Convenience
§ Timely reminders (expiring points)
§ Location triggers
§ Great way to engage loyalty members
§ Ability to update points real-time
§ Low cost location-based marketing

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile
Wallet 101 A “mobilized”
loyalty program
Getting
started
#walletloyalty!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Seeing is believing…try it out!!
Text STYLECARD to 84237!
Google Wallet Apple Passbook
Mobile Web
Fall-back Page

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Deliver lock screen
notifications to
consumers
Apple’s Passbook – Mobile Loyalty Card!
Keep Reward
Balance above the
fold for easy viewing
Dedicate label value to
showcase loyalty
program join date
Prompt users to
download your app
Include information
like:
• Location of
favorite store
• Phone number
• Store hours
Feature unique
loyalty ID beneath
barcode
Terms and conditions
located beneath all
company information
Personalize with name, points, and even colors for loyalty tiers

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Assign a unique
barcode ID to track
redemption!
Include retailer
name and offer!
Make sure logo is
sized appropriately!
Include store
information and
hours!
Put important
information like
exclusive offers in the
“Messages” field!
Place information
about the loyalty
program at the end!
Google Wallet – Mobile Loyalty Card!
1:1 personal messaging to loyalty members with offers, custom messages & more

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobilize reward certificates too…!
Deliver time-sensitive reward certificates and send special offers to members
Google Wallet Apple’s Passbook

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Three seamless ways to distribute mobile wallet loyalty cards!
Email!
App!
Text!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Email is one of the easiest channels to activate with wallet!
1. Desktop email 2. Mobile email

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
For text, leverage device-aware, trackable, shortened URL !
Mobile Web
Fallback Page
Google Wallet
Apple Passbook

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Google Wallet and Passbook are location-aware solutions!
Vibes

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
iBeacons + Passbook – the next wave of shopper engagement!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Raise awareness about
loyalty program
and available rewards
Drive engagement
with real-time points
notifications
Drive foot traffic and
enable easy
redemption at POS
Offset expensive call
center calls by
providing timely info
How mobile wallet can strengthen your loyalty program
AWARENESS! ENGAGEMENT! TRANSACTION! SERVICE!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Mobile
Wallet 101
A “mobilized”
loyalty program
Getting
started
#walletloyalty!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Think holistically about your mobile wallet marketing strategy !
1. Create!
2. Distribute!
3. Manage!4. Measure!
5. Optimize!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Up and running
in 10 days
1. Prioritize your use cases!
Event/VIP Passes The Account CardThe Loyalty CardOffers & Incentives
CarrierOne
Account Number
12345678910
Up and running in 3-6
weeks depending on
integration needs

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
2. Determine best ways to distribute mobile wallet loyalty cards!
Email!
Web!
App!
SMS!
Direct
mail!

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Preferred method for receiving mobile wallet content
Email
46%
20% 19%
11% 4%
Text message
from the retailer
App from
the retailer
Direct mail Mobile banner
advertisement
Base: Total n=1,000
Email and text are preferred methods !
Source: Vibes 2013 mobile consumer survey – July 2013

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
3. Select a platform that makes mobile wallet management easy!
Mobile wallet
metrics
Single “smartlink”
Manage
Passbook &
Google Wallet in
one interface
Manage
locations (geo
or iBeacon IDs)

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Make sure to build solutions for both iPhone and Android users !
Google Wallet Apple Passbook

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
4. Identify KPIs and actively update and monitor campaigns !

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Key takeaways!
Determine wallet use cases for your business
Promote your mobile wallet content through
multiple channels – email and SMS for starters
Leverage location-based triggers to drive
engagement for your loyalty program
Select a platform to make it easy to actively
manage and monitor performance
Test today to get ready for holiday

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Get the Mobile Wallet Handbook!
www.vibes.com/handbook

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©2014 Vibes All rights reserved. Confidential #walletloyalty!
Q A&
Emily
@ecollins31
Julie
@JulieRothNovack
John
@JohnHaro
#walletloyalty!

58. Mobilize your loyalty
program with mobile wallet
MAY 20, 2014!
Emily Collins, Analyst at Forrester Research ! !!
Julie Novack, SVP of Mobile Solutions !!
#mobileloyalty!
@ecollins31!
@JulieRothNovack !
Thank you!