MOBILE FOR RETAILERS - cspdigitals.com · "For Starbucks, the move to mobile has been a way to take...
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Transcript of MOBILE FOR RETAILERS - cspdigitals.com · "For Starbucks, the move to mobile has been a way to take...
MOBILE FOR RETAILERS:
Enabling a One-to-One
Connection with the Customer
Tom Zalewski
CorFire
August 11th, 2012
Agenda
• About CorFire
• Mobile Channel & Mobile Usage in the US
• Rewind a Decade
• Merchant ROI
• How Do I Get Started
• More than a decade of experience in mCommerce
• Technology powering mobile payment in Korea
• 30+ million subscribers using mobile platforms
• World-class system integration
• World-class mobile technology
• 35,000 employees • 100 locations worldwide
• SK Telecom – largest MNO in Korea
• SK Chemicals, SK Energy, SK Networks and more
• $104.4 billion revenue in 2010
• 9.3% of Korea’s GDP
• 60+ subsidiaries and affiliated companies
Mobile
commerce business unit
USA
• Inc July 2010
• 65 Employees
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SK Corporate Structure
Hub for Issuer
Enterprise grade and secure platform
Manages lifecycle for SE & SD
Industry standards compliant
SEM and Issuer TSM deployment
Key management
Payment scheme certification
Security certification and compliance
CorTSM
Consumer Facing Mobile Wallet app
Native mobile app with rich user experience
NFC features
Open platform and supports 3rd Party services
White labeled for custom branding
Admin and Care Portal
CorPay
Suite of Mobile Marketing Services
Coupon, Offers, Loyalty, and Advertising
Customizable services based on what customers want to offer
Bundled package to meet consumer needs
Cor360
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CorFire mCommerce Solutions
Mobile for Retailers: Enabling a One‐to‐One Connection with the Customer
Mobile Commerce =
New Points of Sale
New Revenue
Generation
New One to One
connection between
you and your
customer
WHY MOBILE? Stickiness of Mobile Channel
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Mobile Outperforms other Media
• Mobile ads perform 2 to 3 times better than online ads in key metrics such as brand favorability,
awareness, and purchase intent.
“The fast-food a new, lower cost, and innovative channel for reaching and influencing the consumer’s purchasing
preference. In our experience, KFC’s success can be put down to using a multichannel promotion approach, compelling offers, and a technology that enables data collection for ongoing and relevant engagement.” Stefan Magnusson, CEO at Mobilize
Mobile Usage in the US
• The average person has their
cellphone within reach 14
hours a day (Impiger Mobile)
• 90% of text messages are
read within 3 minutes of
being delivered (Singlepoint)
• 9 out of 10 mobile searches
lead to action, over half
leading to purchase
(Google)
• 79% of smartphone users use
their phone to help with
shopping, with 74% ultimately
making a purchase as a
result (Google)
Smartphone adoption curve Share by Major Player
Percentage of smartphone users
30% of new prepaid wireless customers adopting smartphones Paving the way for mCommerce
Nearly 70% of US adults will use smartphones by 2015 up from 50% today
Smartphone Penetration Is Increasing
• m-commerce will take off 30-40% faster than online or e-commerce
• Market analyst Juniper Research forecasts skyrocketing growth of m-commerce by 2014, reaching $630 billion
• Retailers can gain substantial advantage/direct access by provider their shoppers an enhanced shopping experience with Mobile Commerce Services
• North America in the perfect storm, Smartphones reaches 50% of shipments in 2011, 3G penetration is high, 47%, apps are downloaded heavily, 20/Smartphone, NFC enabled handset, 70million in 2011
50%
75%
43%
1%
Smart Phone Users to browse a retailer’s site in next 6month
Intends to download a retailer’s apps
Intends to make a purchase from a mCommerce site or Apps
US retail sales are mobile, $3.5B
Mobile Commerce Overview in the Retail Space
• Mobile purchases nearly tripled in the last year
• 15% of this years holiday purchases are expected to be on mobile
• 250% increase in Merchant site visits
• Spending via smartphone to reach 214 billion by 2015
Mobile percent of site traffic and sales October 2010 - 2011
Source: IBM Study. IBM Coremetrics Benchmark, November 2011. Sprint. Mobile Progress Report. Dec. 2011.Mobile Commerce Daily. Dec 2011.
US spending via smartphone
Retail Site Mobile Traffic and Purchases Are Rising
Launch of Serve to enable mobile P2P
payments
ISIS repositions itself as MNO SE gateway
and wallet
MasterCard partners with
Telefonica
Launch of GWallet and Offers with pilots in NY and SF with MasterCard, Citi, FD, and VeriFone
French Mobile Operators launch
Buyster competing with Paypal
Launch of NFC scheme nationwide
Visa acquires Fundamo, a m-commerce platform
for the Developing World
Recent Significant Mobile Events
• Before jumping into Mobile Payments and the current Ecosystem, it is valuable to understand: • Pre-NFC contactless payments
• The model(s) and requirements
• The stakeholders
• What did and what did not work
• This will help to explain: • Why we are where we are today
• New capabilities, models and the requirements that will help mobile
succeed for payments
• Why the new stakeholders exist in the ecosystem
• The all important end-user acceptance viewpoint
Rewind A Decade
• Contactless tags or chips were used as a token to link to payment accounts on closed loop systems, as well as store card holder data via products such as MasterCard PayPass
• Leverages phone’s ability as a “Connected Token” allowing merchants to
• send coupons & advertisements to the consumer using a custom
• messaging platform
• No ability to have multiple payment or loyalty / membership services on
• the phone (multiple applications) due to a single-application tag
• No ability to “lock” the tag (phone)
• No active OTA updates can be done once provisioned tag is issued
• Key Findings • Alternate mobile payment solutions must be easier than existing payment
• methods to have widespread adoption by consumers
• This still holds true today with mobile payment applications today
• “Simple”, “Reliable” and “Secure” are mandatory features for adoption
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Pre-NFC Contactless Payments
• Merchants • Provides clear benefit
• Technology that works
• Cost effective, efficient and secure
• Need for speed and accuracy
• Enhances Brand awareness
• Ability to connect with the customer
• Consumer • Need for speed and convenience
• Transparent, hassle-free technology
• Beneficial, value-add service
• Wants a better experience
• Wants to be treated special
Requirements For Two Key Participants
Merchant ROI
Primary Driver of ROI is
Increasing Topline Sales
INCREASE
SALES
$$$
Converting customers to
loyal customers
• Increased basket
size
• Increased visit
frequency
Driving incremental foot
traffic
• Gifting
• Coupons
Overspend or “splurge”
Merchant ROI
ROI is Also Achieved
by Lowering Costs
LOWER
COSTS
$$$
Driving customers to
preferred tender type
Decrease interchange
and cost of handling cash
Lower cost of acquisition
Higher redemption rates
Shift traditional advertising
dollars to promotions/offers
Starbucks Mobile Prepaid Card
• 2.2 million smartphones with at least one registered Starbucks card by end of 2011
• Activated 150,000 per day in Q3’2011
• $110 million reloaded through mobile ($2.4B loaded overall globally in 2011)
• Processed 26 million mobile transactions since inception
• Increase in spend, increase in visits per mobile user
– 38% increase from physical card in load value/card
– Significant increase from physical card in load frequency
• All prepaid cards now represent 25% of all tender transactions
“Our research shows that mobile
payment drives store traffic and also increases speed of service. I’m pleased to report that our innovation pipeline is robust, and we are seeing significant benefits from the investments we’re making in mobile payment technology.”
Howard Schultz, CEO, Starbucks
"For Starbucks, the move to mobile has been a way to take loyalty and payments beyond plastic to meet customer needs….the novelty of the mobile app and the ability to pay with a phone swipe leads customers to sign up so it becomes an on-ramp into the loyalty program.“
Joy Das Gupta, Category Manager, Brand Loyalty at Starbucks
Merchant ROI: Revenue Drivers
• Increased load value & frequency from
plastic prepaid holders switching to mobile
• Lifetime value of new customers retained
through gifting & offers
• Lifetime value of converted gas-only
customer to in-store customer
• Increased lifetime value of loyal customers
• Sales uplift from coupons/loyalty/gifting
• Increase in revenue from prepaid float
• “Overspend” from new prepaid and offer
users
• Digital Advertising
• Rev share on CPG/OEM coupons
• “Top of Wallet” fees
Quantified Inputs
Un-quantified Metrics
Viral nature of mobile
Fully quantifiable value of loyalty
More effective targeting
Increased throughput
HALO EFFECT
0%
10%
20%
30%
40%
50%
60%
What will be the most popular consumer
applications in 2012?
2011
2012
2012 Mobile Industry Predictions Survey
The Mobile Industry Predictions Survey is an annual survey put forth to executives,
developers, and “insiders” from leading mobile companies and startups from across the value chain and around
the world
“How Do I Get Started with Mobile?”
THE MOBILE PATH TO
SUCCESS
“How Do I Get Started with Mobile?”: Partner Selection/Goals
Onboarding Development & Operation
Synchronization • Offers • Prepaid cards • Loyalty
“How Do I Get Started with Mobile?”: What to look/watch for…
Experience in POS, Mobile & Scalability
for future phases
Ability to build to your roadmap, not
buoy a startup’s
Ability to do iterative releases, apply
learnings and grow nimbly
Partners all have agendas, make sure
in the worse case scenario you can
live with theirs
Ideal Mobile Commerce Application
• Integration at Point-of Sales
•Relationship with Processors
•Numerous Payment Options - including retailer stored value card, credit cards, ACH and cash
•Scan and Pay Barcode Functionality - leading to NFC Tap and Pay
Payments
•Purchase your brand gift card and other digital card inventory. Mobile Store
•Card Gifting& Group Gifting
•Delivery via email, mobile and Facebook Send a Gift
•Marketing Offers and SMS Solutions
•Single Use Coupons and Offers My Offers
•GPS store locator, addresses, hours, etc. Store Info
•Build or enhance existing loyalty program My Rewards
Partners who can unite Technologies & Functions Into a
Single Turnkey Application That Consolidates Points of Entry
Start with the basics
THE MOBILE PATH TO
SUCCESS
The solid beer solution…
• Promote
Prepaid/tender type
• Store Locations
• Merchandise Lookup
• Loyalty (legacy)
• Pick the partner to get
you to the next phase
• Technology: SMS,
WAP, Barcode
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Manage credit cards to be used for top-up, card purchase, gifting
Mstore Card numbers are masked once added for security
Set a default payment method for quick pay
Steer your customers to promote tender of choice based on your preference in interchange
Wallet can be funded also with cash in store and direct to ACH
Basics- Control Payment Choices, Control Fees
Graduate to a more robust solution
THE MOBILE PATH TO
SUCCESS
• Enhanced solution
that begins to blend
services
• Gifting
• Loyalty (reboot for
mobile)
• Social Network
Integration
• Virtual Programs
• Robust Offers Mgmt
• Technology: SMS,
WAP, APP, Barcode
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Offers can be limited by favorite location, current GPS location or by product preference
Tap offer to review details, save or future use or redeem
More Robust- Incorporate Offers
Just the right mix for a compelling result
THE MOBILE PATH TO
SUCCESS
• NFC enabled
• Cloud Payments
• Payroll Solutions
• Drive Thru Solutions
• Technology: SMS,
WAP, APP, Barcode,
NFC, Cloud
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Access to Social Media
Feedback on App/Stores/Media
Account Settings
Pin Protection
Customized to Branded
Right Mix- Value Added Services Create Loyalty and Usage
