Linking m-commerce to the physical point of sale

Alcatel-LucentToon Coppens @touchatag

31 March 2011 http://www.alcatel-lucent.com/mws

Linking m-commerce to the physical PoS

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

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Who we are

• touchatag Venture of Alcatel-Lucent

• Providing mobile payment & marketing services to

• Mobile operators

• Enterprises (retail, city, social media,..)

• Based in Belgium, US & Turkey

• Active since 2008

• Combined offer with ALU ventures

• Optism: mobile advertising

• Dekaps: mobile app dev, augmented reality & marketing agency

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

Twitter: @touchatag






Mobile & commerce: ubiquitous

Mobile & commerce: closing the loop

Advertising &

direct marketing

Customer

Communication

Sales

Customer identification,

Reporting & Analytics

?


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South-Korea Telecom: Q-StoreScan in shop & buy online

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

Mobile & commerce: many use cases

Secure identification at the PoS

• Criteria

• Usability

• Availability

• Security

• Personal

• Cost

• Future proof

• Technologies

• Contactless

• 2D barcodes

NFC promise: Mobile phone as Swiss knife of secure mobile applications

•web •access

•payment

•loyalty

•communication •couponing

•advertising

•transport

Using Near Field Communication technology

NFC phones (March 2011 snapshot)

• Available NFC phones include a.o.:

• More makers to announce NFC phones in 2011:

• LG, RIM, HTC, Sony-Ericsson, Samsung

• Projections: additional >50 million NFC handsets shipped in 2011

• Frost & Sullivan expects >860 million NFC phones by 2015

Google Nexus S Samsung Star S5230 Nokia C7 Sagem Cosyphone

Every card becomes a mobile application

Real time Balance

Business expense

Transaction history

P2P transactionsPersonal coupons

On the fly subscription

NFC payment demo

• Payment scheme:

• Alcatel-Lucent Mobile Wallet Service micro-payment scheme

• Based on stored value account (e-money, loyalty, coupons…)

• Consumer Phone: Google Nexus S NFC in tag emulation mode

• Merchant: mobile NFC phone Google Nexus S as point of sale

http://www.youtube.com/watch?v=28TwCpx4Dng

http://www.youtube.com/watch?v=28TwCpx4Dng

Mobile marketing techniques

Retail Industry & M-Commerce

Sales increase Sales activationLoyalty Sales frequency

Opex costsQueue length Cost of Cash handling

AnalyticsReporting Stock mgmt

CRMCustomer interaction

Customer segmentation

Know Your Customer

Starting guide

Applications

Saving

Channels Models Services

Coupon

Services

Gift

voucher

Prepaid

Club card

(access..)

Contactless

card/sticker

Online /

Mobile Web

Mobile

application

NFC phone

2D barcode

M-

Commerce

Closed vs

Open loop

(e)-PoS

Integrated vs

non

integrated

User Self

registration

Reporting &

Analytics

Balance

interface for

web / mobileUniform vs

segment

based

program

Open ended

vs time

limited

campaigns

Objectives

Sales

increase

Sales

frequency

Sales

activation

Shopping

analytics

Know

your

customer

Opex

reduction


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Orange – SwitzerlandSMS based couponing


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1. Almost 50% of the subscribers are interested by Commercial SMS

2. Leading to a purchase in 21% of cases

SMS coupon uptake

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


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Adidas – Mobinil EgyptMobile advertising to PoS sales

Source: Alcatel-Lucent


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Target - USMobile coupons

Starbucks - USMobile for closed loop prepaid and loyalty

Who? Worldwide retail chain

GoalsCost reduction on transaction costs

Loyalty

ApplicationPrepaid account for PoS payment

Merchant loyalty program: tracking stars

Channels Temporary 2D barcode generation

ModelClosed loop, top-up via cash deposit, credit/debit card

Cash register integration

Services Mobile application


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Loyalty & coupon services, use

1. Dedicated contactless card

2. 2D barcode application

3. Any contactless transport card (Navigo)

La croissanterie - France

Sanoma Magazines & Sanoma MVNOContactless loyalty & prepaid – mobile stickers

Who?European publisher active in 13 countries, market leader in Finland, Netherlands, Belgium..

Flair Mobile: MVNO

GoalsSales and sales frequency increase

Identify PoS consumer for further sales activation

ApplicationLoyalty for Flair Magazine: 4 + product plus

Prepaid program for Humo Magazine: pay for 10 and get 12

Channels Contactless stickers, POS GPRS reader , website

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

Services website, SMS self registration, activation

22 | Touchatag |April 2010

City of AntwerpCity marketing - City loyalty card

+ 1 points at swimming

pool

+ 1 points at library

-1 coupon for free access museum

Loyalty & Coupon Wallet

Goals

Stimulate participation in sports and culture

Increase local community sense

Improve the city offering based on consumption analytics

Application Loyalty card & saving program for the citizens and tourists

Channels Contactless card, POS devices, online

Model Loyalty club, gift vouchers, saving program

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

McDonalds - JapanNFC coupon services


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Maxis - MalaysiaNFC smart posters

Solution components

25 | Touchatag |April 2010

Mobile

Wallet

ServiceProfile server

Program Database

Mobile Application

SMS

WEB

PoS

Reporting & Analytics

Campaign management

Consumer registration

Balance check Communication

Social networks

External Payment networks

consumer

consumer

Admin (merchant

/brand)

transactions

APIs

ad

min

istra

tion

Communication

NFC

2D

Solution management

Conclusions

• Mobile marketing

• should become part of any multi-channel strategy

• can influence directly PoS sales results

• is feasible today

• Remote communication services

• SMS/MMS – Web – Mobile application

+• Identification services

• Connected contactless cards - 2D barcode -> to evolve to NFC phones

Linking m-commerce to the physical point of sale

Technology

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