How Digital Technology changes Mystery Shopping

Understanding the use of NFC, QR Codes, Image recognition,

geofencing…

Company Overview

•  A global mystery shopping and loss prevention company.

•  7 offices worldwide: Boston, Las Vegas, Italy, France, Turkey, India and Argentina.

Mystery Shopping and Loss Prevention programs that are complimentary to each other. We are a one-stop shop for all Loss Prevention programs and Mystery Shopping services eliminating your need for multiple vendors, which cuts down your costs.

Are we there yet?

A new way to work in the field

ü Collect more data on site ü Generate efficiency with a

mobile tools for shoppers ü Reinforce Quality Assurance ü Communication with the field ü Provide training ü Resolve issues in real time ü Recruit new Mystery shoppers ü Report to clients

Mobility comes with constraints…

ü Need for a powerful back office ü Only 50% of shoppers have smartphones ü Costly multiplatform (iOS, Android)

development, deployment & maintenance ü Network dependency (3G, Wifi) ü Cost of sending data over the network ü Need for asynchronous capability

Top 10 App features :

1.  Find and apply for MS Jobs

2.  Access training documents and videos

3.  Date & time stamping of media

4.  Geolocation of shop visits

5.  Stopwatch

Top 10 App features :

6.  Record and upload sound, video, photos

7.  Scan QR Codes / Tap NFC tags

8.  Use image recognition

9.  Manage “My Account” settings

10. Share app via social media/gamify with points and rewards

Key Figures

3 M NFC

Smartphones In France**

89% Of smartphone owners know

about QR Codes

**Source : Orange, GfK

***Source: Smartphone Real World Interactors study, Clear Channel & Posterscope, Avril 2012

55% Smartphone

penetration rate in Big-5 EU countries

as of Oct. 2012*

*Source : ComScore

50% of Smartphones

sold in France are NFC compatible*

What are contact-less technologies?

Technologies that allow a mobile terminal to exchange data with an object, another device or an information system, without physical contact.

QR Codes

NFC Image recognition

Geofencing

What is “Near Field Communication” (NFC)?

•  Reader composed of : chip + antenna •  Secure exchange of data between reader

and mobile terminal (which can also be the reader)

•  RFID over High Frequency: 13.56 MHz (10cm communication range)

•  NFC tags can be encoded over and over again or locked for single encoding

•  NFC tag management platforms available (encoding, printing, tracking)

•  Can and should be used in conjunction with QR Code

Average time required to access content

Typing a URL

QR Code IR

NFC

27 sec. 7 sec. 2.5 sec.

What can we use “QR Codes” and “NFC Tags” for?

•  Launching or downloading a Mystery Shopping app

•  Opening a field form or survey for Mystery shopping or customer satisfaction

•  Opening an employee reporting field form

Pros and Cons of “NFC”

PROS •  Simplicity of use : « Tap » the reader •  Access to content without launching an app •  Interactive exchange •  Security of the data exchanged •  Secure transaction •  Independent from lighting or print quality •  Long life – no power needed

CONS •  Small amount of data transferred •  Need for NFC smartphones in the field •  Low level of notoriety •  Cost

What is “Image Recognition” (IR) ?

Technology based on the analysis of the main characteristics (shapes, color) of an image in order to index it and compare it to known concepts or other indexed images.

What can we use “IR” for?

•  Launching or downloading a Mystery Shopping app

•  Opening field forms •  Product facing verification •  Product price verification •  Counterfeits and grey

market detection

Pros and Cons of “IR”

PROS •  Simplicity of use : « aim your camera » •  Can work on and offline •  Very fast access to data •  Efficient in difficult conditions •  Works with video

CONS •  Requires an app launch before use •  Requires access to database of known,

indexed images •  Maintenance of the database of images

and content •  Cost of license

What is “Geofencing”?

A technology that defines a virtual boundary (or geo-fence) around a real-world geographical area. A radius of interest is established that can trigger an action in a mobile phone when the user enters or leaves the defined area.

What can we use “Geofencing” for?

•  Alert Mystery Shoppers that MS or client satisfaction jobs are available in the area via “push notifications” or SMS

•  Alert Mystery Shoppers of changes, updates, bonuses for a job

•  Trigger Customer Satisfaction surveys

Pros and Cons of “Geofencing”

PROS •  Allows the automatic trigger of field

studies and surveys at the right time, in targeted physical locations

•  Allows Geolocation of Mystery shoppers for real time interaction

CONS •  Battery life monger •  Requires Opt-in for geolocation of users •  Requires network connection or indoor

geolocation service •  Cost of development or license

Some of the existing solutions

Conclusion

QR Codes & NFC tags – Download apps – Access survey forms (Customer Satisfaction,

Internal Audits, Employee Feedback posters) Image recognition

– Product line-up, facing, price verification – Loss Prevention

Geofencing – Trigger surveys automatically (Client Sat.) – Alert shoppers of ongoing field studies

Conclusion

•  A multi-app strategy is necessary •  Apps should be multi-platform •  All apps should have a powerful

back-office •  Apps should be linked to Mystery

Shopping solution via connectors •  Apps should be kept very simple,

efficient and fun to use

Conclusion

“Revolution” or “Evolution”

•  New shopper profiles •  New product offering for our clients •  New internal organization

The REAL revolution has yet to come!

Thank you!!

Laurent de Bernede"President Europe North"t. +33 1 82 83 16 64"Laurent.debernede@hsbrands.com"