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Mobile Marketing for Retail
                         January 13, 2012




Confidential & Proprietary
This document contains proprietary and confidential information of iLoop Mobile, and may be used only in accordance with a written agreement between iLoop Mobile
and the recipient. No portion of this document may be reproduced, republished or distributed to any third party without the express written permission of iLoop Mobile.
About iLoop Mobile
• Industry leading technology and services make it
  fast and easy to create, manage and analyze
  mobile marketing campaigns and content delivery
  initiatives worldwide

• Award winning iLoop Mobile Platform for creating
  state-of-the-art SMS/MMS campaigns, mobile
  sites, mobile coupons, CRM & LBS segmented
  messaging, apps and other mobile marketing
  initiatives

• Industry leader in mobile marketing strategy,
  managed service campaign delivery and
  professional services

• Campaign design that achieves mission critical
  marketing objectives, answering the individual
  needs of customers

• Customers include Fortune 500 brands, agencies,
  media companies, and other tier-one companies
The Big Picture

Mobile drives consumer engagement
Why Mobile Marketing for Retail?
Marketing objectives mobile can achieve:

  • Customer acquisition with database build     • Improved customer service

  • Generate retail and Web traffic              • Promotional communications

  • Consumer awareness                           • Cross selling and up-selling

  • Customer loyalty and trust with brand        • Lead generation and prospecting
    affinity
                                                 • Increased interactivity with
  • Customer retention                             customers or audience

  • Viral marketing/word of mouth                • Increased use of traditional
                                                   & Web marketing channels
  • Product sales monetization




   Mobile is the most effective retail marketing that exists.
Shopper Connect Mobile Marketing
   Mobile is most effective when tactics are subservient to marketing strategies
   and objectives across the customer journey.




     ENGAGEMENT                SHOPPER CONVERT            TRAFFIC DRIVER            LOYALTY & RETENTION
Establish brand preference   Convert shopper to buyers   Increase foot traffic          Deliver value

      ✓SMS                        ✓Mobile Web            ✓SMS/MMS                       ✓SMS/MMS
      ✓Mobile Web                 ✓Apps                  ✓Location Services (GPS)       ✓Mobile
      ✓Sweepstakes                                       ✓Mobile Web                    ✓Coupons
      ✓Mobile Video
Choose Tactics to Fit Objectives


                                                                     MOBILE                                         SMS WEBSITE/
                                           MOBILE WEB   OPT-IN                   SMS/MMS
                SWEEPSTAKES   MOBILE CRM                             PROFILE                   TEXT TO WIN   APPS                  MOBILE COUPON
                                           & APPS                                PUSH ALERTS                        FACEBOOK
                                                        DATABASE
                                                                     GATHERING
                                                                                                                    WIDGETS



BRAND                ✓                         ✓           ✓                                      ✓                     ✓
AWARENESS



                                               ✓
ENGAGEMENT                        ✓                        ✓             ✓           ✓                         ✓        ✓              ✓


PERCEPTION                                     ✓           ✓                         ✓                                  ✓
                                                                 ABOVE THE LINE MARKETING OBJECTIVES
                                                                 BELOW THE LINE MARKETING OBJECTIVES
ACQUISITION +
LEAD GEN             ✓            ✓            ✓           ✓             ✓                        ✓                     ✓              ✓

LOYALTY +
REWARDS                                        ✓           ✓                         ✓            ✓            ✓        ✓              ✓

RETENTION +
UPGRADE
                                               ✓           ✓             ✓           ✓                                  ✓              ✓
Where Mobile Can Take Retail
• Build and integrate your CRM database for segmented marketing messages
  (SMS/MMS) that will improve and drive store traffic and customer loyalty based
  on customer preference and profile

• Increase product information via push marketing that relates to online behavior
  data (cookies) to drive store traffic with option of relevant coupon

• Deliver incentive marketing programs via mobile that will increase customer
  loyalty and retention with option of full POS redemption/tracking

• Make your marketing communications location relevant with LBS messaging
  campaigns based on real-time carrier lookup

• Deliver anytime, anywhere access to rich content, information and purchase via
  the mobile web and apps

• Create rich media messaging (MMS and mobile web) for PUSH marketing to
  drive customer engagement, loyalty and store traffic

• Offer the latest technologies for mobile engagement (ex. 2D bar codes) that
  facilitate customer interaction and increase customer satisfaction

• Enable customer service engagement via mobile for customer statements,
  loyalty program access, and shipping/billing alerts                               MMS account/loyalty
                                                                                    point statements
Mobile Includes Precise Analytics
Real-time measurement and reporting on
messaging campaigns and site traffic/behavior

• Instant graphic analysis across calls-to-
  action, performance metrics and               SMS/MMS
  traditional media channels

• Analyze which media channels and
  impressions activate the most mobile opt-
  ins and conversions

• Slice-and-dice data depending on different
  needs, views, time increments and
  objectives

• Measure web use, behavior and
  preferences using familiar online metrics




                                               Mobile Web Site & Apps
Mobile Strategy Follows Technographics
  Key Retail Demo Example: Moms, 25-49, HHI $75k+ (Not ethnic specific)

                                                                                        Device(s)
Demos & Psychographics                                                                  Half own smart phones.
                                                                                        Most likely to be on Tier 1 carriers
‣ Median household income $75k                                                          with 3G or 4G connection and
                                                                                        ―unlimited‖ data and messaging
‣ Price sensitive, majority say they „shop around‟ before
  making a purchase
‣ Brand loyal                                                                  Key Takeaways
‣ Are influenced by trends, i.e., “what‟s hot”                                 1. The average smart phone user
                                                                                  spends over an hour a day
‣ 4 out of 5 say they are always willing to try new things                        interacting with the device, and
                                                                                  one of the top three activities is
                                                                                  shopping.
Top Mobile Activities
                                                                               2. Target group cares about
                                                                                  convenience and anytime,
 87%   Send/Receive SMS                   38%   Research using phones             anywhere access.

                                                Regularly enter mobile
 39%   Send/Receive MMS                   13%   sweepstakes
                                                                               3. SMS most preferred mobile
                                                                                  channel.
       Use their phone to find/redeem a         Use their phone to check the
 24%   coupon                             21%   status of an order
                                                                               4. Majority of mobile purchases are
                                                                                  between $20-99
11%    Regularly use mobile coupons
Methodology: Profile—Strategy—Tactics

Recommended customer touch points determined
by customer mobile profile and strategic objectives

                            Marketing Goal

 Awareness &           Purchase Incentives    Customer               Brand Loyalty
 Purchase                                     Retention




 Create Mobile Site   Create alert opt-in    Send time-sensitive   Use SMS/MMS to
                      to SMS/MMS mobile      cross sell            alert customers to
                      incentives             messages or “next     new products or
                      (coupons, sweeps,      product” reminders    promotions
                      promotions etc.)       as child enters new
                                             age groups


                      Appropriate Mobile Tactic
Most Prevalent Behaviors for Mobile Shopping



                       ANGELS DATA SLIDES

1 in 3 Mobile Users




1 in 4 Mobile Users




 1 in 5 Mobile Users
SMS | MMS Marketing
Why Mobile Messaging?
Immediacy

   • 5/5/5 Axiom—5 days print, 5 hours email, 5 hours SMS/MMS

Engagement

   • Stickyness—unlike other fleeting messaging (social) messages stay on phone
   • Direct Consumer Response—click to call, click to web, POS redemption, SMS/MMS response

Personalization

   • Messages can be personalized to interests, needs and profile of individual consumers or groups

Performance

   •   300% increase of SMS opens vs. email                                      Hello John, Albertson‟s
                                                                                 @ California & Franklin
   •   60-70% of emails sent are blocked                                         has special packages of
                                                                                 Ballpark Franks where
   •   Conversion rates in double digits and as high as 50%                      you can win season
                                                                                 tickets for the Giants.
   •   Increase purchase intent as high as 40%                                   Pick some up to grill for
                                                                                 today‟s game.
   •   ROI branded campaigns reporting as high as 1000%

Interactivity
   • Especially with MMS, increase user interest with rich media interactivity
SMS + Smart Phones = Success
SMS Marketing Campaigns
iLoop Mobile enables a wide variety of
solutions and marketing services for use
in mobile marketing campaigns including:
• SMS subscriptions & alerts with CRM
  segmentation
• Promotional marketing texts
• Standard mobile coupons with redemption
  codes
• Smart SMS Messaging integrating database
  conditions (weather, zip) for segmented
  messaging
• Mobile coupons integrating POS
  redemption/tracking
• MMS video and rich media messaging
• On-pack promos
• Consumer data gathering                    Thanks for joining
                                             the
• Broadcast text initiatives                 VANSMOBILE
                                             ALERTS. We’ll
• Instant win & sweepstakes                  send you offers
                                             on skate, surf,
• Quiz, poll & vote                          snow, BMX, girls,
                                             music and more,
• Text to Screen                             plus mobile
                                             sweepstakes!
• Links to mobile sites
• Publisher mobile content downloads
• Click-to-call (IVR)
• Much more
CRM Based SMS/MMS Marketing
• Negative aspect of one message for all recipients
  from customer perspective…‖why did I get that
  message?‖

• Deliver segmented SMS messaging using CRM
  data assuring relevance, increasing opt-in,
                                                                               Vans Alerts
  customer acquisition, engagement, conversion,
                                                                               Vans Skate Club
  and ultimately revenue                                                       Special offer 20% all
                                                                               Ska Skate shoes this
                                                                               Sat. all Vans stores.
                                                                               Show this code 4rrrsk
• Personalized messaging on their personal device                              for discount.
  extends the brand into a 1 to 1 relationship with                            Text HELP for help.
                                                                               Text STOP to cancel.
  customers increasing loyalty and                                             Msg&DataRatesMay
  engagement…‖you know me!‖                                                    Apply 877-561-8045
                                                                               TC:tc.mtiny.mobi


• Integrates into and leverages data in existing
  CRM databases, email databases and loyalty
  marketing merging customer’s mobile profile and
  preferences data
                                                       Hello John,
                                                       The San Francisco
• Part of cross channel marketing that can bring       Microsoft store has
  surgical relevance to mobile Web, MMS and            20% off all Guitar
  other rich media environments                        Hero accessories
                                                       until Sunday.
                                                       Txt STOP to
• Increase the redemption/conversion/sales of your     stop.Txt HELP 4       Message components
  direct and incentive marketing while cutting costs                         sourced from existing CRM
                                                       help. Msg & Data      database dynamically
                                                       Rates May Apply.      integrated into the message
                                                                             (name, local store, relevant
• Add a layer of relevance and measurement not                               products)
  available to basic keyword based SMS marketing
  that reduces opt-out and database loss
SMS Dynamic Messaging & CRM Integration

• Use CRM databases for dynamic
  messaging—insert names, use profile
  data and preferences to personalize
  messaging and create rule sets that
  increase relevance and conversion

• Integrate mobile campaigns with          Hello John, The San       Message
  existing or external CRM databases,      Francisco Macy‟s          components
                                                                     sourced from
  data feeds and content management        stores have 20% off all   existing CRM
  systems                                  Kenneth Cole shoes        database and
                                                                     dynamically
                                           and suits until Sunday.   integrated into the
                                           Txt STOP to stop.Txt      message

• Integrate with your existing reporting   HELP 4 help. Msg &
  systems—send data from the mobile        Data Rates May Apply.
  platform to external reports and view
  reports in your reporting systems
MMS For Retail

•   Multimedia Messaging Service (MMS) is a rich media
    messaging service that allows mobile users to send and
    receive messages that can include graphics, animations,
    slide shows, photos, audio, video, and unlimited text (no
    160 character SMS limit)


•   It can it provide marketers with increased ad
    effectiveness over SMS


•   Unlike the Mobile Web, this media resides on the user’s
    mobile phone


•   Delivery of bar code graphic coupons (right), as well as
    potential to delivery one-click videos, animation and
    audio.
Best Practices: Horizontal Integration
Mobile call to action can/should be integrated into ALL marketing channels
Mobile Enabled Direct Marketing Success Rates

     Shared mail marketing programs for hundreds      McDonalds Thanks You
     of small businesses nationwide are reporting:
                                                      Enjoy one FREE Small McCafe

     • Average conversion rates 15-20% and as         Help: moneymailer.com
       high as 30%                                    Opt-out: Reply STOP MCDONALD
                                                      Msg&DataRatesMayApply.
     • ROI as high as $20 return for every $1 spent

     • Increases in opt-in databases have reached
       23%

     • At least 2x redemption rates as compared to
       other media channels

     • Fraction of the cost of the overall shared                                    McDonalds: Enjoy one
                                                                                     FREE Small McCafe.
       mail campaign–mobile easily pays for itself                                   Code 34d83w Exp.1/6/10
                                                                                     Help:mmcoupons.com.
                                                                                     Opt-out: Reply
     • Reported 4% increase in incremental sales                                     MCDONALD STOP
                                                                                     Msg&DataRatesMayApply




19
Case Examples: Customer Acquisition




20
Basic SMS Marketing: US National Retailer
OBJECTIVE:
To drive traffic to retail stores and increase sales by creating and utilizing a mobile
database of customers.

STRATEGY:
Build an opt-in database for delivering SMS offers for in-store only discounts and
promotions, as well as delivering key product awareness messages.

TACTICS:
Incentivize initial group opt-in with instant win and sweepstakes entry, building the
opt-in group via in-store, direct mail and Web promotion of the keyword/short code
for the SMS initiative.

Secondary phase created a Web-based SMS alert club opt-in capturing customer
profile and preference data for future segmented messaging.

RESULTS:
• 10,000 opt-ins first month
• 50,000 opt-ins after 8 months
• 150,000 opt-in customers and growing to date
Women’s Apparel
• Mandee used in-store signage in
  119 stores to present the call to
  action to win a $500 shopping
  spree
• Instantly redeemable mobile                   Print Opt-in
  coupon was also sent for 20% off                                              Email
  any single item purchased that       MANDEE
  day
• Entry into the sweeps also offered
  opt-in to Mandee Mobile Alerts
  subscription for exclusive weekly
  SMS messages on events,
  promos, and special offers                                                You’re in with
                                                                            Mandee Mobile
• Subscription CRM opt-in is also                                           Alerts. Take 20%
  available via Web form capturing                                          off your purchase of
                                                                            $50 or more today,
  customer profile & prefs data                                             Code 3rr457
                                                                            exp.12/27/11. See
• Simple ―show the message‖                                                 a Mandee
  redemption with trained in-store                                          associate in-store
                                                                            for details.
  associates

 CUSTOMER ACQUISITION
     +
 INCREASE STORE TRAFFIC
 LOYALTY                                                      Web Opt-in
 BRAND ENGAGEMENT
Case Example: Loyalty




23
Loyalty Case Study: G by Guess Mobile
     OBJECTIVE:
     To drive traffic to G by Guess stores and increase sales by utilizing G
     by Guess’ mobile database of customers.
                                                                               G by GUESS loves
                                                                               you. Show this
                                                                               message at any G
     STRATEGY:                                                                 by GUESS store &
                                                                               receive 20% off a
                                                                               single purchase
     G by Guess offered a 20% off in-store only promotion to their mobile      today thru October
                                                                               19, 2008. See an
     subscribers. Subscribers received an SMS message that read:               associate for details

     ―G by GUESS loves you. Show this message at any G by GUESS
     store & receive 20% off a single purchase today thru October 19,
     2008. See an associate for details.”

     RESULTS:
     • 23% redemption rate
     • 7 times the redemption rate of any direct marketing offer in G by
     Guess’ history including direct mail, email, etc.
     • <1% opt-out rate




24
Family Dollar Stores: Loyalty & Engagement

Text JOIN1 to 273283

Mobile incentive offers
received as loyalty alerts or
POP opt-in for specific
product promotions. Message
can include link to site for
more product information or
multiple promos.
MMS Marketing: Loyalty & Personalization
                                     Macro: MMS resulted in
                                     higher customer spending than
                                     those who received email or
                                     SMS marketing for the brand.
                                     Infacet: Sent to highest value
                                     customers using CRM based
                                     segmented messaging.
                                     This is a standard direct
                                     marketing practice deployed
                                     via mobile.
                                     An MMS can can include a
                                     single graphic, a video or an
                                     animation, and can embed a
                                     site link in the SMS portion of
                                     the MMS. MMS offers
                                     unlimited text length in any
                                     message.
Case Example: Drive Store Traffic




27
Driving Traffic: Radio Shack

Bar coded offer provide
incentive for in-store on
online redemption (traffic).
 • Consumer opts-in to SMS
   loyalty messaging program
   ―Radio Shack Txt 2 Save‖
 • Promotional messages arrive as
   SMS messages weekly with
   mobile landing page links or
   MMS providing mobile coupons
   with bar codes
   scanned/redeemed at retail
 • Coupons can be simple SMS
   with ASCII promo code in SMS
   for store or web redemption, no
   bar code required
MMS Use Case For Specific Promotion




Campaign Metrics: 5:1 performance over previous SMS/email campaign
Case Examples: Customer Engagement




30
Best Buy: Mobile Enabled Point of Sale
Mobile is can provide customer service or execute sales
Treasury Wine Estates

• Simplify food and wine pairings with in-store mobile ―wine guide‖

• Text the desired food type, cuisine, specific dish or main
  ingredient to 411511 (ex. CASSOULET to 411511)

• Data sent to food pairing database for reply SMS

• 3 wine pairing choices are sent back via SMS

• Helps shoppers with immediate advice, overcoming ―wine choice
  overload‖ when dealing with store shelves

• Promoted in retail stores with shelf talkers and neck hangers on
  product itself

• Simple yet effective example of using SMS to achieve brand
  marketing objectives
Case Example:
     Integrated Mobile Marketing




33
Integrated Mobile Marketing: maurices
maurices Mobile Style Club
• Leading women’s fashion brand with over
  700 stores nationwide
• Mobile program promotion was then
  integrated into all brand communications
     • In-store (posters, window clings)
     • Facebook fan pages & ads
     • Direct mail
     • Print ads
     • Sales associate word-of-mouth
     • Website
• Unique keywords for each channel tracked
  the effectiveness of each channel
• Delivers coupons, exclusive content, style
  advice, fashion tips, Q&A options and in-
  store promo alerts
• Instant 20% coupon delivered to
  incentivize opt-in
Integrated Mobile Marketing: maurices
maurices Mobile Style Club
   • Promoted in all brand communications and
     marketing channels
                               In-store Signage




maurices Credit Card




                                  College Bookmarks
Integrated Mobile Marketing: maurices
     maurices Mobile Style Club: Web Opt-in




36
Integrated Mobile Marketing: maurices
     maurices Mobile Style Club: Direct Mail Opt-in




37
Integrated Mobile Marketing: maurices
maurices Mobile Style Club: Coupons
 • 5,000 customers opting-in within the first month
 • Over 20,000 after four months
 • Redemption rate for mobile coupons is consistently over 60 percent
 • Over $1M revenue directly attributed to mobile program in first four months
 • Average spend per customer per mobile redemption was $70
 • Continues to grow and remains a consistent sales driver for both the stores and
   maurices.com, and drives social traffic




                        maurices.com: 43%
                        In-store promo: 35%
       OPT-IN
       SOURCE           Facebook: 7.5%
                        Direct Mail: 6%
                        Combined Other: 8.5%
Integrated Mobile Marketing: maurices
     maurices Mobile Style Club: CRM Segmented Messaging




      • Using the OMG keyword, members can reply to messages and get individual
        responses
      • Responders can also be directed to the mobile version of the brand’s Facebook
        Fan Page
      • Hot topics can be identified and shared with the entire group




39
MMS: Retail Account Mobile Statement

•    Customer opts-in to receive ―push‖
     monthly statement on retail account
     for credit card, reward points, credits,
     balance due, account activity or any
     other account information
•    Customer can ―pull‖ his statement at
     any time via SMS with keyword + PIN
•    System can recognize phone number
     of user requesting statement and
     deliver information without PIN (less
     secure)
•    MMS offers systematic
     communications for bill collection
     starting with gentle reminders, through
     rescheduling payments to collections
     escalation
QR/Microsoft Tag Programs
      •    QR/Tags with MMS provide the best experience with
           mobile marketing because for consumers with 2D code
           readers, it provides Instant access to rich media
           content or graphic coupons/promotions incentives
      •    With QR/Microsoft Tags and MMS, consumer is one
           click from INSTANT PLAYBACK of rich media like
           video for optimal consumer mobile experience…no
           messing with web search or browsing required
      •    Scanned 2D code INSTANTLY delivers coupons for
           redemption, no fuss no muss
      •    QR/Tag can also deliver a site page instantly




Live Demo!
Scan this Tag




 38
Smart Coupons & Alerts
•   ―One size fits all messaging‖ can have unknown relevance to the recipient
•   Mobile Smart Coupons and Messaging easily integrate with data sources such
    as zip codes, weather, consumer profile/preference CRM data, product
    inventory, finance, sports scores etc. instantly adding relevance to the
    message delivered

•   Smart alerts can know:
         Who the customer is
         Where they are
         What’s happening around them
         When they want something
         Why they need or want it                                                    The heat wave continues
                                                                                      here in LA! Cool off with
                                                                                      new designer swimwear
Smart Coupon Opportunities                                                            for men, women and kids,
                                                                                      20% off this weekend at
•   Location aware messaging without carrier lookup costs                             all stores. Code:34ru3
                                                                                      Exp: 7/12/11
•   Make messages sent relevant to external data or information (weather,
    immediate response in-store after purchases, past purchases, profile data etc.)

•   Make messaging relate to real-time events, business status, and histories

         Promote overstock items using real-time inventory data

         Leverage customer history and real-time purchase behavior for delivery
          of relevant marketing and product cross sell

•   Drive in-store traffic, Web traffic and product sales.
Smart Coupons & Alerts
                                                                                                                SMS Only Coupon:
                                                                                                                Contextually relevant
 Text STORE + your zip code to 44264 to                                                                         coupon is delivered
 receive an SMS coupon every month for      Database receives keyword                                           based on keyword +
 20% off your favorite fashions             opt-in and delivers a coupon                                        database referencing
                                            based on external events or          It’s a scorcher in                 Freezing in NY today?
                                                                                                                with unique redemption
                                            information in the database          Miami today! Keep                  Keep warm with with a
                                                                                                                code. sweater. 20% off
                                                                                 cool with breezy late              wool
                                                                                 summer skirts. 20% off               all sweaters at any
                                                                                 at any store. Code                   store. Code 34r39r
                                                                                 t239r Exp. 10/31/11                  Exp. 10/31/11
    STORE + your zip
                                                  Database
     code to 44264
                                                     Weather
                                               Location Look Up
                                                                             Contextually relevant coupon        STORE + 10507
                                               Product Inventory             delivered based on
                                                                             keyword/zip referenced              Sends coupon for sweaters
                                           Past Consumer Purchases           against weather                     based on cold weather
                                                                             database…database knows             database reading for opt-in
                                          Any Other Event or Data Sets       it’s 90 degrees in Miami            with New York zip code
                                             Consumer Profile Data           (33128)

                                                                                                 SMS Reply by Weather




         62407                                                                                It’s a scorcher in
      Store 33128                                 Here’s something                            Miami today! Keep
                                                  special for you to
                                                  celebrate your                              cool with breezy late
                                                  birthday. Come into                         summer skirts.
                                                  Dressbarn and get                           Discount coupons:
                                                  20% off any item.
       Miami                                      Code f5mt Exp.                              http://nyskirts/mobi
                                                  5/31/11

                                                                            OR….You can deliver a
                                            Messages sent based on stored   SMS with link to a Web
                                            customer profile data with      landing page or mobile
                                            unique redemption code.
                                                                            site with multiple
                                                                            coupons and barcode

Text opt-in for either single coupon
or to opt-in to couponing alert group                                                    SMS Reply by Weather Links
                                            SMS Reply by Consumer                          to Mobile Web Coupons
                                                 Profile Data
Why Mobile LBS? Proximity/Time Relevance.
•   Breaks through the clutter of non-focused marketing and prompts immediate response
•   Provides new geographic metrics layered on CRM customer data…know where they are and when
    and send personal and relevant messages
•   Provide ―nearest store to you‖ information and offers that incentivize redemption and increase
    probability of sales
•   Proximity and time relevance increases store traffic and reduces CPPofF (cost per pair of feet)
•   Build a database and increase loyalty using location data—5% of Marks & Spencers’ 22 million
    customers are location aware SMS opt-in customers and growing
•   Cut marketing cost—make direct marketing more targeted and less wasteful using a single keyword
•   SMS LBS offers location aware marketing without the mobile app technology barrier, and requiring
    no consumer input telling you where they are
•   Ubiquitous reach: 73% user availability, and messages are opened within 4 seconds
•   Offer a broad range of complimentary location aware mobile interaction: MMS, sites, coupons etc.


         Location Based SMS Campaign Results:
         • 79% of customers said location aware alerts increased their likelihood of visiting a store
         • 65% made purchases as a result of LBS SMS message
         • 73% would ―definitely‖ or ―probably‖ use it in the future
                       (O2 Media)
iLocation Based Services (LBS)
•   Location aware messaging for single
    SMS offers or alert group/subscription
    campaigns
•   ―Every time‖ real time carrier lookup of
    user location for single interactions
•   ―Lookup once‖ carrier location lookup at                                  Team Shop Special Offer
    opt-in for alert groups, with option of                                   Take 15% all purchases in
    subsequent lookups to verify the user’s                                   the Team Shop at the
                                                                              Willow Glen location 12
    ―home‖                                                                    Main St @ Lincoln with
                                                                              promo code:
•   Geo-fences for real time push                                             CLRMSAFL50 Exp.
                                                                              12/31/11
    messaging based on proximity to a
                                                                              For more offers click
    store                                                                     http://mobile.th.com/offers
                                                                              Text HELP for help. Text
•   Deliver highly targeted and valuable                                      STOP to cancel.
    messages to consumers on any device                                       Msg&DataRatesMayApply
    based on place and time                                                   877-561-8045
                                                                              TC:tc.mtiny.mobi


             Consumer Interest in LBS SMS Marketing
             •   1 in 4 interested in location based coupons
             •   1 in 5 interested in finding nearby merchants who carry
                 product they’re interested in
             •   1 in 3 age 18-24 interested in SMS about sales in
                 nearby stores, with 1 in 5 interested in offers or ads for
                 products tailored to current location
                 (MMA/Luth Research April 2010 US Consumer Briefing)
Mobile Coupons + POS Integration
Why Integrate Mobile to POS? To Measure and Know Your Customers.
•   Coupons/incentives are a key element
    to building a customer database and
    customer relationship marketing          POWER OF MOBILE REDEMPTION DATA
•   Redemption is trackable and ROI is       •   Add and access mobile redemption data
    highly measurable                            to your RFM measurements
•   Builds brand awareness, loyalty, store   •   Better influence customer index scoring
    traffic and sales                            and upsell/cross sell
•   Integrates easily into traditional       •   Improve customer segmentation,
    marketing channels                           modeling and lifetime value measures
•   Works on every phone using SMS           •   Fine tune offers to drive sales
•   NO paper…easy to use by customer
    and eliminates misuse and fraud
•   Uses existing POS systems, no extra
    hardware for mobile coupon programs
•   Gives brick and mortar a powerful
    digital tool to compete with online                             How easy and seamless is mobile
                                                                    couponing? For basic SMS coupons,
                                                                    customer simply enters their mobile
                                                                    phone number in a standard PIN pad
                                                                    and the coupon automatically
                                                                    redeemed using the store’s existing
                                                                    POS system with transactions
                                                                    recorded.
Mobile Retail POS                                          Redemption Solutions

                                      Plug and Play software solution
                                      through the payment terminal,
                                      register and/or optical scanner




              ROI DRIVEN                                                   Campaign Management
       Pay Per Redemption Model




       Analytics, Buying Behavior,                                      Offer Creation, Distribution and
         Purchase History and                                                      Tracking
              Segmentation



                                      CRM Database Management of
                                     Users and Mobile Loyalty Program
47
POS Coupon Redemption Solution: How It Works
                                                 1




                                    6                   2




                                                 360°
                                        Mobile Coupon
                                    5     Solution      3



REDMPTION OPTIONS
•   Payment terminal PIN pads                    4
    using mobile phone number as
    redemption code
•   Manual code entry or hot keys
    into register checkout screen
•   Integration with discount and
    loyalty card account
•   Scan barcode (optical reader)
Mobile Internet & Apps
Mobile Internet Sites
Create content rich mobile sites with
interactivity to extend your retail store.

  • Full retail sites
  • HTML5 sites
  • Product info & content delivery
  • Micro sites & landing pages
  • Video
  • RSS/XML integration (product
    catalog)
  • Store locator/maps
  • Location aware content serving
  • Viral marketing
  • CRM profile/prefs capture
  • Click to call/IVR
  • SMS/MMS marketing opt-in
  • Automated ad serving
  • mCommerce & sampling
  • Social marketing
Mobile Web Rules
Mobile search and web sites are by far the preferred retail mobile environment for a rich media
experience.
For Retailers—Mobile Web Is No Longer Optional
• 86% of mobile web users are using their devices
  while watching TV—this has heavy implications for
  retail broadcast advertising*

• Nearly half of all Web searches during the 2012
  Super Bowl came from mobile—the phone is now
  an important part of retail television marketing**

• 62% of smart phone users have bought physical
  goods from their devices, and these buyers spend
  more than an hour a week mobile shopping today                                                                   *


• 66% of iPhone users report spending $250 or more
  on mobile purchases in the last year

• 66% favor using browsers over downloadable apps
  for accessing product and other shopping content,
  with over half saying easy checkout, product and
  pricing info most important

• The user appetite for downloading and maintaining
  brand mobile apps is limited

• 30% have video as an influence on the likelihood of   Adobe Scene7 Survey 2011, *Microsoft 2011, **Google 2012
  purchase, with the top mobile visual merchandising
  tools being 360° product spin (54%), side-by-side
  comparison (49%) and zoom/pan (44%)
The Opportunity of mCommerce
Steve Madden Mobile Site
• Full mCommerce environment for
  product purchase
• Familiar web design optimized for
  mobile makes site easy to use
• Not an app, this has the full reach
  any mobile Internet enabled phone
• Include ―You Might Like‖ engine to
  make buying experience better for
  user and opportunity for cross or up
  sell

Results for Optimized Site Launch 2010
• 10.5% of total Web traffic for Steve
  Madden is coming from mobile
• 250% increase in traffic from 5/10-10/10
• Percentage of total Web traffic that is
  mobile trended upwards fast: April 2010
  4.4%, May 7.9%, June 8.6%, July 9.5%,
  October 10.5%
• 1,400,00 visits in 8 months totaling 6.25
  million minutes
• Average time on site 7 minutes
• In 8 months 12,000 products sold on
  mobile site for $900,00 in direct revenue
  with average order at $89.00
• 110,000 SMS alert opt-ins from all
  channels where CTA was promoted
• Integrated MMS opt-in
*Source: Mobile Marketer 10/27/10
Integrating Social Into Mobile Web
Steve Madden Mobile Site Evolution
• Social marketing enablement added
  to mCommerce functionality
• Uses Facebook ―Like‖ functionality
  that is pasted to users Facebook wall
• Enables viral product marketing
  tactics
• Includes ―You Might Like‖ engine to
  make buying experience even better
• The addition of the social elements
  Increased traffic 30% in 24 hours
• Using Metrics: products that get the
  most ―likes‖ get special promotions
  focusing marketing on higher
  performing products to increase
  revenue
• To drive people to use ―Like‖ in
  mobile site, Steve Madden promotes
  functionality in their own Facebook
  page
Sites with CMS & Database Feeds

• Site localized for the user by zip
  code query–system then delivers
  local dealer’s site built from
  standardized brand template
• Individual dealer sites feature
  content and information specific to
  that dealership (used car inventory
  etc.) but in national brand design
  environment
• Content includes new model info,
  pre-owned inventory, directions
  with map, specials, and service &
  parts info
• Videos of Lexus models
• Click-to-call triggers call to
  dealership
• Viral ―tell-a-friend‖ site forwarding




                                          Direct URL to Serramonte Lexus http://lexusserramonte.com
Large Retailers: Target mCommerce Site
mCommerce Single Transaction

      Customer sees an                        The scan initiates a
      advertisement for                        landing page that
     Phillips in traditional                 includes product info
1    media (e.g billboard
       )and decides to
                                     2           and a payment
                                                    window
    “Scan´n Buy” or text to
        buy the shaver




                                                                                                        3


                                                                                                   The buyer
                                                                                                  enters their
                                                                                                 payment card
                                                                                                  details and
          Save 15% on the new Philips 7000                               Payment/billing         address sent
          shaver. Scan ´n Buy now or                                  provider handles the         by URL or
          text PHILIPS to 87812.                                         transaction and             email
                                                                     informs merchant with
                                                                      required information




                                                                                             4
mCommerce Simple Payment Solutions
mCommerce Best Practices

•   It is all about the 60 second transaction!
•   Create the right-sized product catalog for mobile
•   If you have large catalogs use groups and
    categories
•   Combine with mobile coupons or promos
•   Keep the UI simple with ―one-click to buy‖
Advanced Mobile/Social Deployment
Wisdom Wall social media
initiative for Heineken USA to
engage consumers who are
already active in social media and
get them taking about, and
sharing, their ―wisdom.‖


The hub of the Wisdom Wall is a
microblogging application that
lives on a Facebook Fan Page,
and is integrated with digital
signage at events via text
messaging and a mobile website.


This virtual Wisdom Wall provides
the brand with an effective way to
link both real-world and digital
programs while providing useful
content and social currency for
the brand’s target market.




                                     Visit the live mobile site at http://wisdom.heineken.mobi (US Only)
Mobile Apps
•    Custom Apps: Standard native smart phone apps, built from scratch with original creative and
     functionality
•    Express Apps: Quick and inexpensive apps that are mobile site conversions
•    Enhanced Apps: Express Apps with optional smart phone native functionalities
•    Tablet Apps: Native apps with design & formatting for bigger screen


                                                                            • Best Buy weekly deals
                                                                            • Browse and search Best
                                                                              Buy’s entire inventory
                                                                            • Explore products through
                                                                              ratings, reviews, related
                                                                              items and enlarged views
                                                                            • Fill and manage favorite
                                                                              products and shopping
                                                                              cart
                                                                            • Gift ideas from across the
                                                                              Web through the IdeaGiftr
                                                                              tool
                                                                            • Store locator & shelf
                                                                              talker 2D bar code scan
                                                                              for product info
                                                                            • Reward Zone loyalty
                                                                              account access
                                                                            • mCommerce click to buy
Mobile Enabled Web Sites & Display Ads
 •   Opt-in to SMS campaigns via Web
 •   Mobile content downloads via Web
 •   Rewards & loyalty programs
 •   Viral marketing & ―tell a friend‖
 •   Mobile enabled Web banner ads




                                          Mercury Shoes Mobile
A friend wants to                         Coupon
share free music                          Go 2 any Footlocker store
podcasts, presented
by Diet Coke Plus.                        and show this code
                                          XD43ks for 15% off your
                                          next purchase of Mercury
                                          Shoes.Exp. 3/31/10




           Viral Marketing               Mobile Enabled Banner Ads
Thanks, we’d be glad to answer any questions to help
you mobile enable your retail marketing.
Contact: sales@iloopmobile.com
Additional Resources




64
Leading Industry Resources

Industry Portals
     Mobile Marketing Resources (open community)
        www.mobilemarketingresources.net
     Mobile Marketer: www.mobilemarketer.com
     Mobile Commerce Daily: www.mobilecommercedaily
     Mobile Thinking: www.mobithinking.com

Trade Associations & Industry Enablers
     Mobile Marketing Association: www.mmaglobal.com
     Direct Marketing Association: Mobile Marketing Council
       http://www.the-dma.org/segment/mobile
     US Short Codes Administration www.usshortcodes.com

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Mobile Marketing Tactics for Retail Objectives

  • 1. Mobile Marketing for Retail January 13, 2012 Confidential & Proprietary This document contains proprietary and confidential information of iLoop Mobile, and may be used only in accordance with a written agreement between iLoop Mobile and the recipient. No portion of this document may be reproduced, republished or distributed to any third party without the express written permission of iLoop Mobile.
  • 2. About iLoop Mobile • Industry leading technology and services make it fast and easy to create, manage and analyze mobile marketing campaigns and content delivery initiatives worldwide • Award winning iLoop Mobile Platform for creating state-of-the-art SMS/MMS campaigns, mobile sites, mobile coupons, CRM & LBS segmented messaging, apps and other mobile marketing initiatives • Industry leader in mobile marketing strategy, managed service campaign delivery and professional services • Campaign design that achieves mission critical marketing objectives, answering the individual needs of customers • Customers include Fortune 500 brands, agencies, media companies, and other tier-one companies
  • 3. The Big Picture Mobile drives consumer engagement
  • 4. Why Mobile Marketing for Retail? Marketing objectives mobile can achieve: • Customer acquisition with database build • Improved customer service • Generate retail and Web traffic • Promotional communications • Consumer awareness • Cross selling and up-selling • Customer loyalty and trust with brand • Lead generation and prospecting affinity • Increased interactivity with • Customer retention customers or audience • Viral marketing/word of mouth • Increased use of traditional & Web marketing channels • Product sales monetization Mobile is the most effective retail marketing that exists.
  • 5. Shopper Connect Mobile Marketing Mobile is most effective when tactics are subservient to marketing strategies and objectives across the customer journey. ENGAGEMENT SHOPPER CONVERT TRAFFIC DRIVER LOYALTY & RETENTION Establish brand preference Convert shopper to buyers Increase foot traffic Deliver value ✓SMS ✓Mobile Web ✓SMS/MMS ✓SMS/MMS ✓Mobile Web ✓Apps ✓Location Services (GPS) ✓Mobile ✓Sweepstakes ✓Mobile Web ✓Coupons ✓Mobile Video
  • 6. Choose Tactics to Fit Objectives MOBILE SMS WEBSITE/ MOBILE WEB OPT-IN SMS/MMS SWEEPSTAKES MOBILE CRM PROFILE TEXT TO WIN APPS MOBILE COUPON & APPS PUSH ALERTS FACEBOOK DATABASE GATHERING WIDGETS BRAND ✓ ✓ ✓ ✓ ✓ AWARENESS ✓ ENGAGEMENT ✓ ✓ ✓ ✓ ✓ ✓ ✓ PERCEPTION ✓ ✓ ✓ ✓ ABOVE THE LINE MARKETING OBJECTIVES BELOW THE LINE MARKETING OBJECTIVES ACQUISITION + LEAD GEN ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ LOYALTY + REWARDS ✓ ✓ ✓ ✓ ✓ ✓ ✓ RETENTION + UPGRADE ✓ ✓ ✓ ✓ ✓ ✓
  • 7. Where Mobile Can Take Retail • Build and integrate your CRM database for segmented marketing messages (SMS/MMS) that will improve and drive store traffic and customer loyalty based on customer preference and profile • Increase product information via push marketing that relates to online behavior data (cookies) to drive store traffic with option of relevant coupon • Deliver incentive marketing programs via mobile that will increase customer loyalty and retention with option of full POS redemption/tracking • Make your marketing communications location relevant with LBS messaging campaigns based on real-time carrier lookup • Deliver anytime, anywhere access to rich content, information and purchase via the mobile web and apps • Create rich media messaging (MMS and mobile web) for PUSH marketing to drive customer engagement, loyalty and store traffic • Offer the latest technologies for mobile engagement (ex. 2D bar codes) that facilitate customer interaction and increase customer satisfaction • Enable customer service engagement via mobile for customer statements, loyalty program access, and shipping/billing alerts MMS account/loyalty point statements
  • 8. Mobile Includes Precise Analytics Real-time measurement and reporting on messaging campaigns and site traffic/behavior • Instant graphic analysis across calls-to- action, performance metrics and SMS/MMS traditional media channels • Analyze which media channels and impressions activate the most mobile opt- ins and conversions • Slice-and-dice data depending on different needs, views, time increments and objectives • Measure web use, behavior and preferences using familiar online metrics Mobile Web Site & Apps
  • 9. Mobile Strategy Follows Technographics Key Retail Demo Example: Moms, 25-49, HHI $75k+ (Not ethnic specific) Device(s) Demos & Psychographics Half own smart phones. Most likely to be on Tier 1 carriers ‣ Median household income $75k with 3G or 4G connection and ―unlimited‖ data and messaging ‣ Price sensitive, majority say they „shop around‟ before making a purchase ‣ Brand loyal Key Takeaways ‣ Are influenced by trends, i.e., “what‟s hot” 1. The average smart phone user spends over an hour a day ‣ 4 out of 5 say they are always willing to try new things interacting with the device, and one of the top three activities is shopping. Top Mobile Activities 2. Target group cares about convenience and anytime, 87% Send/Receive SMS 38% Research using phones anywhere access. Regularly enter mobile 39% Send/Receive MMS 13% sweepstakes 3. SMS most preferred mobile channel. Use their phone to find/redeem a Use their phone to check the 24% coupon 21% status of an order 4. Majority of mobile purchases are between $20-99 11% Regularly use mobile coupons
  • 10. Methodology: Profile—Strategy—Tactics Recommended customer touch points determined by customer mobile profile and strategic objectives Marketing Goal Awareness & Purchase Incentives Customer Brand Loyalty Purchase Retention Create Mobile Site Create alert opt-in Send time-sensitive Use SMS/MMS to to SMS/MMS mobile cross sell alert customers to incentives messages or “next new products or (coupons, sweeps, product” reminders promotions promotions etc.) as child enters new age groups Appropriate Mobile Tactic
  • 11. Most Prevalent Behaviors for Mobile Shopping ANGELS DATA SLIDES 1 in 3 Mobile Users 1 in 4 Mobile Users 1 in 5 Mobile Users
  • 12. SMS | MMS Marketing
  • 13. Why Mobile Messaging? Immediacy • 5/5/5 Axiom—5 days print, 5 hours email, 5 hours SMS/MMS Engagement • Stickyness—unlike other fleeting messaging (social) messages stay on phone • Direct Consumer Response—click to call, click to web, POS redemption, SMS/MMS response Personalization • Messages can be personalized to interests, needs and profile of individual consumers or groups Performance • 300% increase of SMS opens vs. email Hello John, Albertson‟s @ California & Franklin • 60-70% of emails sent are blocked has special packages of Ballpark Franks where • Conversion rates in double digits and as high as 50% you can win season tickets for the Giants. • Increase purchase intent as high as 40% Pick some up to grill for today‟s game. • ROI branded campaigns reporting as high as 1000% Interactivity • Especially with MMS, increase user interest with rich media interactivity
  • 14. SMS + Smart Phones = Success
  • 15. SMS Marketing Campaigns iLoop Mobile enables a wide variety of solutions and marketing services for use in mobile marketing campaigns including: • SMS subscriptions & alerts with CRM segmentation • Promotional marketing texts • Standard mobile coupons with redemption codes • Smart SMS Messaging integrating database conditions (weather, zip) for segmented messaging • Mobile coupons integrating POS redemption/tracking • MMS video and rich media messaging • On-pack promos • Consumer data gathering Thanks for joining the • Broadcast text initiatives VANSMOBILE ALERTS. We’ll • Instant win & sweepstakes send you offers on skate, surf, • Quiz, poll & vote snow, BMX, girls, music and more, • Text to Screen plus mobile sweepstakes! • Links to mobile sites • Publisher mobile content downloads • Click-to-call (IVR) • Much more
  • 16. CRM Based SMS/MMS Marketing • Negative aspect of one message for all recipients from customer perspective…‖why did I get that message?‖ • Deliver segmented SMS messaging using CRM data assuring relevance, increasing opt-in, Vans Alerts customer acquisition, engagement, conversion, Vans Skate Club and ultimately revenue Special offer 20% all Ska Skate shoes this Sat. all Vans stores. Show this code 4rrrsk • Personalized messaging on their personal device for discount. extends the brand into a 1 to 1 relationship with Text HELP for help. Text STOP to cancel. customers increasing loyalty and Msg&DataRatesMay engagement…‖you know me!‖ Apply 877-561-8045 TC:tc.mtiny.mobi • Integrates into and leverages data in existing CRM databases, email databases and loyalty marketing merging customer’s mobile profile and preferences data Hello John, The San Francisco • Part of cross channel marketing that can bring Microsoft store has surgical relevance to mobile Web, MMS and 20% off all Guitar other rich media environments Hero accessories until Sunday. Txt STOP to • Increase the redemption/conversion/sales of your stop.Txt HELP 4 Message components direct and incentive marketing while cutting costs sourced from existing CRM help. Msg & Data database dynamically Rates May Apply. integrated into the message (name, local store, relevant • Add a layer of relevance and measurement not products) available to basic keyword based SMS marketing that reduces opt-out and database loss
  • 17. SMS Dynamic Messaging & CRM Integration • Use CRM databases for dynamic messaging—insert names, use profile data and preferences to personalize messaging and create rule sets that increase relevance and conversion • Integrate mobile campaigns with Hello John, The San Message existing or external CRM databases, Francisco Macy‟s components sourced from data feeds and content management stores have 20% off all existing CRM systems Kenneth Cole shoes database and dynamically and suits until Sunday. integrated into the Txt STOP to stop.Txt message • Integrate with your existing reporting HELP 4 help. Msg & systems—send data from the mobile Data Rates May Apply. platform to external reports and view reports in your reporting systems
  • 18. MMS For Retail • Multimedia Messaging Service (MMS) is a rich media messaging service that allows mobile users to send and receive messages that can include graphics, animations, slide shows, photos, audio, video, and unlimited text (no 160 character SMS limit) • It can it provide marketers with increased ad effectiveness over SMS • Unlike the Mobile Web, this media resides on the user’s mobile phone • Delivery of bar code graphic coupons (right), as well as potential to delivery one-click videos, animation and audio.
  • 19. Best Practices: Horizontal Integration Mobile call to action can/should be integrated into ALL marketing channels
  • 20. Mobile Enabled Direct Marketing Success Rates Shared mail marketing programs for hundreds McDonalds Thanks You of small businesses nationwide are reporting: Enjoy one FREE Small McCafe • Average conversion rates 15-20% and as Help: moneymailer.com high as 30% Opt-out: Reply STOP MCDONALD Msg&DataRatesMayApply. • ROI as high as $20 return for every $1 spent • Increases in opt-in databases have reached 23% • At least 2x redemption rates as compared to other media channels • Fraction of the cost of the overall shared McDonalds: Enjoy one FREE Small McCafe. mail campaign–mobile easily pays for itself Code 34d83w Exp.1/6/10 Help:mmcoupons.com. Opt-out: Reply • Reported 4% increase in incremental sales MCDONALD STOP Msg&DataRatesMayApply 19
  • 21. Case Examples: Customer Acquisition 20
  • 22. Basic SMS Marketing: US National Retailer OBJECTIVE: To drive traffic to retail stores and increase sales by creating and utilizing a mobile database of customers. STRATEGY: Build an opt-in database for delivering SMS offers for in-store only discounts and promotions, as well as delivering key product awareness messages. TACTICS: Incentivize initial group opt-in with instant win and sweepstakes entry, building the opt-in group via in-store, direct mail and Web promotion of the keyword/short code for the SMS initiative. Secondary phase created a Web-based SMS alert club opt-in capturing customer profile and preference data for future segmented messaging. RESULTS: • 10,000 opt-ins first month • 50,000 opt-ins after 8 months • 150,000 opt-in customers and growing to date
  • 23. Women’s Apparel • Mandee used in-store signage in 119 stores to present the call to action to win a $500 shopping spree • Instantly redeemable mobile Print Opt-in coupon was also sent for 20% off Email any single item purchased that MANDEE day • Entry into the sweeps also offered opt-in to Mandee Mobile Alerts subscription for exclusive weekly SMS messages on events, promos, and special offers You’re in with Mandee Mobile • Subscription CRM opt-in is also Alerts. Take 20% available via Web form capturing off your purchase of $50 or more today, customer profile & prefs data Code 3rr457 exp.12/27/11. See • Simple ―show the message‖ a Mandee redemption with trained in-store associate in-store for details. associates  CUSTOMER ACQUISITION +  INCREASE STORE TRAFFIC  LOYALTY Web Opt-in  BRAND ENGAGEMENT
  • 25. Loyalty Case Study: G by Guess Mobile OBJECTIVE: To drive traffic to G by Guess stores and increase sales by utilizing G by Guess’ mobile database of customers. G by GUESS loves you. Show this message at any G STRATEGY: by GUESS store & receive 20% off a single purchase G by Guess offered a 20% off in-store only promotion to their mobile today thru October 19, 2008. See an subscribers. Subscribers received an SMS message that read: associate for details ―G by GUESS loves you. Show this message at any G by GUESS store & receive 20% off a single purchase today thru October 19, 2008. See an associate for details.” RESULTS: • 23% redemption rate • 7 times the redemption rate of any direct marketing offer in G by Guess’ history including direct mail, email, etc. • <1% opt-out rate 24
  • 26. Family Dollar Stores: Loyalty & Engagement Text JOIN1 to 273283 Mobile incentive offers received as loyalty alerts or POP opt-in for specific product promotions. Message can include link to site for more product information or multiple promos.
  • 27. MMS Marketing: Loyalty & Personalization Macro: MMS resulted in higher customer spending than those who received email or SMS marketing for the brand. Infacet: Sent to highest value customers using CRM based segmented messaging. This is a standard direct marketing practice deployed via mobile. An MMS can can include a single graphic, a video or an animation, and can embed a site link in the SMS portion of the MMS. MMS offers unlimited text length in any message.
  • 28. Case Example: Drive Store Traffic 27
  • 29. Driving Traffic: Radio Shack Bar coded offer provide incentive for in-store on online redemption (traffic). • Consumer opts-in to SMS loyalty messaging program ―Radio Shack Txt 2 Save‖ • Promotional messages arrive as SMS messages weekly with mobile landing page links or MMS providing mobile coupons with bar codes scanned/redeemed at retail • Coupons can be simple SMS with ASCII promo code in SMS for store or web redemption, no bar code required
  • 30. MMS Use Case For Specific Promotion Campaign Metrics: 5:1 performance over previous SMS/email campaign
  • 31. Case Examples: Customer Engagement 30
  • 32. Best Buy: Mobile Enabled Point of Sale Mobile is can provide customer service or execute sales
  • 33. Treasury Wine Estates • Simplify food and wine pairings with in-store mobile ―wine guide‖ • Text the desired food type, cuisine, specific dish or main ingredient to 411511 (ex. CASSOULET to 411511) • Data sent to food pairing database for reply SMS • 3 wine pairing choices are sent back via SMS • Helps shoppers with immediate advice, overcoming ―wine choice overload‖ when dealing with store shelves • Promoted in retail stores with shelf talkers and neck hangers on product itself • Simple yet effective example of using SMS to achieve brand marketing objectives
  • 34. Case Example: Integrated Mobile Marketing 33
  • 35. Integrated Mobile Marketing: maurices maurices Mobile Style Club • Leading women’s fashion brand with over 700 stores nationwide • Mobile program promotion was then integrated into all brand communications • In-store (posters, window clings) • Facebook fan pages & ads • Direct mail • Print ads • Sales associate word-of-mouth • Website • Unique keywords for each channel tracked the effectiveness of each channel • Delivers coupons, exclusive content, style advice, fashion tips, Q&A options and in- store promo alerts • Instant 20% coupon delivered to incentivize opt-in
  • 36. Integrated Mobile Marketing: maurices maurices Mobile Style Club • Promoted in all brand communications and marketing channels In-store Signage maurices Credit Card College Bookmarks
  • 37. Integrated Mobile Marketing: maurices maurices Mobile Style Club: Web Opt-in 36
  • 38. Integrated Mobile Marketing: maurices maurices Mobile Style Club: Direct Mail Opt-in 37
  • 39. Integrated Mobile Marketing: maurices maurices Mobile Style Club: Coupons • 5,000 customers opting-in within the first month • Over 20,000 after four months • Redemption rate for mobile coupons is consistently over 60 percent • Over $1M revenue directly attributed to mobile program in first four months • Average spend per customer per mobile redemption was $70 • Continues to grow and remains a consistent sales driver for both the stores and maurices.com, and drives social traffic maurices.com: 43% In-store promo: 35% OPT-IN SOURCE Facebook: 7.5% Direct Mail: 6% Combined Other: 8.5%
  • 40. Integrated Mobile Marketing: maurices maurices Mobile Style Club: CRM Segmented Messaging • Using the OMG keyword, members can reply to messages and get individual responses • Responders can also be directed to the mobile version of the brand’s Facebook Fan Page • Hot topics can be identified and shared with the entire group 39
  • 41. MMS: Retail Account Mobile Statement • Customer opts-in to receive ―push‖ monthly statement on retail account for credit card, reward points, credits, balance due, account activity or any other account information • Customer can ―pull‖ his statement at any time via SMS with keyword + PIN • System can recognize phone number of user requesting statement and deliver information without PIN (less secure) • MMS offers systematic communications for bill collection starting with gentle reminders, through rescheduling payments to collections escalation
  • 42. QR/Microsoft Tag Programs • QR/Tags with MMS provide the best experience with mobile marketing because for consumers with 2D code readers, it provides Instant access to rich media content or graphic coupons/promotions incentives • With QR/Microsoft Tags and MMS, consumer is one click from INSTANT PLAYBACK of rich media like video for optimal consumer mobile experience…no messing with web search or browsing required • Scanned 2D code INSTANTLY delivers coupons for redemption, no fuss no muss • QR/Tag can also deliver a site page instantly Live Demo! Scan this Tag 38
  • 43. Smart Coupons & Alerts • ―One size fits all messaging‖ can have unknown relevance to the recipient • Mobile Smart Coupons and Messaging easily integrate with data sources such as zip codes, weather, consumer profile/preference CRM data, product inventory, finance, sports scores etc. instantly adding relevance to the message delivered • Smart alerts can know:  Who the customer is  Where they are  What’s happening around them  When they want something  Why they need or want it The heat wave continues here in LA! Cool off with new designer swimwear Smart Coupon Opportunities for men, women and kids, 20% off this weekend at • Location aware messaging without carrier lookup costs all stores. Code:34ru3 Exp: 7/12/11 • Make messages sent relevant to external data or information (weather, immediate response in-store after purchases, past purchases, profile data etc.) • Make messaging relate to real-time events, business status, and histories  Promote overstock items using real-time inventory data  Leverage customer history and real-time purchase behavior for delivery of relevant marketing and product cross sell • Drive in-store traffic, Web traffic and product sales.
  • 44. Smart Coupons & Alerts SMS Only Coupon: Contextually relevant Text STORE + your zip code to 44264 to coupon is delivered receive an SMS coupon every month for Database receives keyword based on keyword + 20% off your favorite fashions opt-in and delivers a coupon database referencing based on external events or It’s a scorcher in Freezing in NY today? with unique redemption information in the database Miami today! Keep Keep warm with with a code. sweater. 20% off cool with breezy late wool summer skirts. 20% off all sweaters at any at any store. Code store. Code 34r39r t239r Exp. 10/31/11 Exp. 10/31/11 STORE + your zip Database code to 44264 Weather Location Look Up Contextually relevant coupon STORE + 10507 Product Inventory delivered based on keyword/zip referenced Sends coupon for sweaters Past Consumer Purchases against weather based on cold weather database…database knows database reading for opt-in Any Other Event or Data Sets it’s 90 degrees in Miami with New York zip code Consumer Profile Data (33128) SMS Reply by Weather 62407 It’s a scorcher in Store 33128 Here’s something Miami today! Keep special for you to celebrate your cool with breezy late birthday. Come into summer skirts. Dressbarn and get Discount coupons: 20% off any item. Miami Code f5mt Exp. http://nyskirts/mobi 5/31/11 OR….You can deliver a Messages sent based on stored SMS with link to a Web customer profile data with landing page or mobile unique redemption code. site with multiple coupons and barcode Text opt-in for either single coupon or to opt-in to couponing alert group SMS Reply by Weather Links SMS Reply by Consumer to Mobile Web Coupons Profile Data
  • 45. Why Mobile LBS? Proximity/Time Relevance. • Breaks through the clutter of non-focused marketing and prompts immediate response • Provides new geographic metrics layered on CRM customer data…know where they are and when and send personal and relevant messages • Provide ―nearest store to you‖ information and offers that incentivize redemption and increase probability of sales • Proximity and time relevance increases store traffic and reduces CPPofF (cost per pair of feet) • Build a database and increase loyalty using location data—5% of Marks & Spencers’ 22 million customers are location aware SMS opt-in customers and growing • Cut marketing cost—make direct marketing more targeted and less wasteful using a single keyword • SMS LBS offers location aware marketing without the mobile app technology barrier, and requiring no consumer input telling you where they are • Ubiquitous reach: 73% user availability, and messages are opened within 4 seconds • Offer a broad range of complimentary location aware mobile interaction: MMS, sites, coupons etc. Location Based SMS Campaign Results: • 79% of customers said location aware alerts increased their likelihood of visiting a store • 65% made purchases as a result of LBS SMS message • 73% would ―definitely‖ or ―probably‖ use it in the future (O2 Media)
  • 46. iLocation Based Services (LBS) • Location aware messaging for single SMS offers or alert group/subscription campaigns • ―Every time‖ real time carrier lookup of user location for single interactions • ―Lookup once‖ carrier location lookup at Team Shop Special Offer opt-in for alert groups, with option of Take 15% all purchases in subsequent lookups to verify the user’s the Team Shop at the Willow Glen location 12 ―home‖ Main St @ Lincoln with promo code: • Geo-fences for real time push CLRMSAFL50 Exp. 12/31/11 messaging based on proximity to a For more offers click store http://mobile.th.com/offers Text HELP for help. Text • Deliver highly targeted and valuable STOP to cancel. messages to consumers on any device Msg&DataRatesMayApply based on place and time 877-561-8045 TC:tc.mtiny.mobi Consumer Interest in LBS SMS Marketing • 1 in 4 interested in location based coupons • 1 in 5 interested in finding nearby merchants who carry product they’re interested in • 1 in 3 age 18-24 interested in SMS about sales in nearby stores, with 1 in 5 interested in offers or ads for products tailored to current location (MMA/Luth Research April 2010 US Consumer Briefing)
  • 47. Mobile Coupons + POS Integration Why Integrate Mobile to POS? To Measure and Know Your Customers. • Coupons/incentives are a key element to building a customer database and customer relationship marketing POWER OF MOBILE REDEMPTION DATA • Redemption is trackable and ROI is • Add and access mobile redemption data highly measurable to your RFM measurements • Builds brand awareness, loyalty, store • Better influence customer index scoring traffic and sales and upsell/cross sell • Integrates easily into traditional • Improve customer segmentation, marketing channels modeling and lifetime value measures • Works on every phone using SMS • Fine tune offers to drive sales • NO paper…easy to use by customer and eliminates misuse and fraud • Uses existing POS systems, no extra hardware for mobile coupon programs • Gives brick and mortar a powerful digital tool to compete with online How easy and seamless is mobile couponing? For basic SMS coupons, customer simply enters their mobile phone number in a standard PIN pad and the coupon automatically redeemed using the store’s existing POS system with transactions recorded.
  • 48. Mobile Retail POS Redemption Solutions Plug and Play software solution through the payment terminal, register and/or optical scanner ROI DRIVEN Campaign Management Pay Per Redemption Model Analytics, Buying Behavior, Offer Creation, Distribution and Purchase History and Tracking Segmentation CRM Database Management of Users and Mobile Loyalty Program 47
  • 49. POS Coupon Redemption Solution: How It Works 1 6 2 360° Mobile Coupon 5 Solution 3 REDMPTION OPTIONS • Payment terminal PIN pads 4 using mobile phone number as redemption code • Manual code entry or hot keys into register checkout screen • Integration with discount and loyalty card account • Scan barcode (optical reader)
  • 51. Mobile Internet Sites Create content rich mobile sites with interactivity to extend your retail store. • Full retail sites • HTML5 sites • Product info & content delivery • Micro sites & landing pages • Video • RSS/XML integration (product catalog) • Store locator/maps • Location aware content serving • Viral marketing • CRM profile/prefs capture • Click to call/IVR • SMS/MMS marketing opt-in • Automated ad serving • mCommerce & sampling • Social marketing
  • 52. Mobile Web Rules Mobile search and web sites are by far the preferred retail mobile environment for a rich media experience.
  • 53. For Retailers—Mobile Web Is No Longer Optional • 86% of mobile web users are using their devices while watching TV—this has heavy implications for retail broadcast advertising* • Nearly half of all Web searches during the 2012 Super Bowl came from mobile—the phone is now an important part of retail television marketing** • 62% of smart phone users have bought physical goods from their devices, and these buyers spend more than an hour a week mobile shopping today * • 66% of iPhone users report spending $250 or more on mobile purchases in the last year • 66% favor using browsers over downloadable apps for accessing product and other shopping content, with over half saying easy checkout, product and pricing info most important • The user appetite for downloading and maintaining brand mobile apps is limited • 30% have video as an influence on the likelihood of Adobe Scene7 Survey 2011, *Microsoft 2011, **Google 2012 purchase, with the top mobile visual merchandising tools being 360° product spin (54%), side-by-side comparison (49%) and zoom/pan (44%)
  • 54. The Opportunity of mCommerce Steve Madden Mobile Site • Full mCommerce environment for product purchase • Familiar web design optimized for mobile makes site easy to use • Not an app, this has the full reach any mobile Internet enabled phone • Include ―You Might Like‖ engine to make buying experience better for user and opportunity for cross or up sell Results for Optimized Site Launch 2010 • 10.5% of total Web traffic for Steve Madden is coming from mobile • 250% increase in traffic from 5/10-10/10 • Percentage of total Web traffic that is mobile trended upwards fast: April 2010 4.4%, May 7.9%, June 8.6%, July 9.5%, October 10.5% • 1,400,00 visits in 8 months totaling 6.25 million minutes • Average time on site 7 minutes • In 8 months 12,000 products sold on mobile site for $900,00 in direct revenue with average order at $89.00 • 110,000 SMS alert opt-ins from all channels where CTA was promoted • Integrated MMS opt-in *Source: Mobile Marketer 10/27/10
  • 55. Integrating Social Into Mobile Web Steve Madden Mobile Site Evolution • Social marketing enablement added to mCommerce functionality • Uses Facebook ―Like‖ functionality that is pasted to users Facebook wall • Enables viral product marketing tactics • Includes ―You Might Like‖ engine to make buying experience even better • The addition of the social elements Increased traffic 30% in 24 hours • Using Metrics: products that get the most ―likes‖ get special promotions focusing marketing on higher performing products to increase revenue • To drive people to use ―Like‖ in mobile site, Steve Madden promotes functionality in their own Facebook page
  • 56. Sites with CMS & Database Feeds • Site localized for the user by zip code query–system then delivers local dealer’s site built from standardized brand template • Individual dealer sites feature content and information specific to that dealership (used car inventory etc.) but in national brand design environment • Content includes new model info, pre-owned inventory, directions with map, specials, and service & parts info • Videos of Lexus models • Click-to-call triggers call to dealership • Viral ―tell-a-friend‖ site forwarding Direct URL to Serramonte Lexus http://lexusserramonte.com
  • 57. Large Retailers: Target mCommerce Site
  • 58. mCommerce Single Transaction Customer sees an The scan initiates a advertisement for landing page that Phillips in traditional includes product info 1 media (e.g billboard )and decides to 2 and a payment window “Scan´n Buy” or text to buy the shaver 3 The buyer enters their payment card details and Save 15% on the new Philips 7000 Payment/billing address sent shaver. Scan ´n Buy now or provider handles the by URL or text PHILIPS to 87812. transaction and email informs merchant with required information 4
  • 60. mCommerce Best Practices • It is all about the 60 second transaction! • Create the right-sized product catalog for mobile • If you have large catalogs use groups and categories • Combine with mobile coupons or promos • Keep the UI simple with ―one-click to buy‖
  • 61. Advanced Mobile/Social Deployment Wisdom Wall social media initiative for Heineken USA to engage consumers who are already active in social media and get them taking about, and sharing, their ―wisdom.‖ The hub of the Wisdom Wall is a microblogging application that lives on a Facebook Fan Page, and is integrated with digital signage at events via text messaging and a mobile website. This virtual Wisdom Wall provides the brand with an effective way to link both real-world and digital programs while providing useful content and social currency for the brand’s target market. Visit the live mobile site at http://wisdom.heineken.mobi (US Only)
  • 62. Mobile Apps • Custom Apps: Standard native smart phone apps, built from scratch with original creative and functionality • Express Apps: Quick and inexpensive apps that are mobile site conversions • Enhanced Apps: Express Apps with optional smart phone native functionalities • Tablet Apps: Native apps with design & formatting for bigger screen • Best Buy weekly deals • Browse and search Best Buy’s entire inventory • Explore products through ratings, reviews, related items and enlarged views • Fill and manage favorite products and shopping cart • Gift ideas from across the Web through the IdeaGiftr tool • Store locator & shelf talker 2D bar code scan for product info • Reward Zone loyalty account access • mCommerce click to buy
  • 63. Mobile Enabled Web Sites & Display Ads • Opt-in to SMS campaigns via Web • Mobile content downloads via Web • Rewards & loyalty programs • Viral marketing & ―tell a friend‖ • Mobile enabled Web banner ads Mercury Shoes Mobile A friend wants to Coupon share free music Go 2 any Footlocker store podcasts, presented by Diet Coke Plus. and show this code XD43ks for 15% off your next purchase of Mercury Shoes.Exp. 3/31/10 Viral Marketing Mobile Enabled Banner Ads
  • 64. Thanks, we’d be glad to answer any questions to help you mobile enable your retail marketing. Contact: sales@iloopmobile.com
  • 66. Leading Industry Resources Industry Portals  Mobile Marketing Resources (open community) www.mobilemarketingresources.net  Mobile Marketer: www.mobilemarketer.com  Mobile Commerce Daily: www.mobilecommercedaily  Mobile Thinking: www.mobithinking.com Trade Associations & Industry Enablers  Mobile Marketing Association: www.mmaglobal.com  Direct Marketing Association: Mobile Marketing Council http://www.the-dma.org/segment/mobile  US Short Codes Administration www.usshortcodes.com