Navigating the Mobile Coupon Landscape

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Proprietary and Confidential, edō Interactive, Inc. Proprietary and Confidential edō Interactive, Inc. Navigating the Mobile Coupon Landscape June 2010

Transcript of Navigating the Mobile Coupon Landscape

Page 1: Navigating the Mobile Coupon Landscape

Proprietary and Confidential, edō Interactive, Inc.

Proprietary and Confidentialedō Interactive, Inc.

Navigating the Mobile Coupon Landscape

June 2010

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15 Years Ago No One Had a Website, Now Look at What’s HappeningThe Digital & Mobile Eras Have Revolutionized Promotional

Tactics

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Not Just Grocery Clippings From the Newspaper Anymore...A Dizzying Number of Coupon Types

Paper

Digital

Communication & Delivery

Communication & DeliveryCoupon MediumCoupon Medium

Manual Entry

Bar Code Scan

Show and Save

Loyalty Card Swipe

Payment Card Swipe

FulfillmentFulfillment

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Roadmap for the Conversation

Coupons in Context: Usage, Statistics, and Trends

Coupons in Context: Usage, Statistics, and Trends

Coupon Marketing On-the-Go: Focus on Mobile

Coupon Marketing On-the-Go: Focus on Mobile

The Future of Coupons: Opportunities in Delivery and Redemption

The Future of Coupons: Opportunities in Delivery and Redemption

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Coupons are an Effective and Proven Tool to Drive SalesConsidered Standard Alongside Other Forms of Promotion

Promotional Spend

TVOnline

Banner Ads

Coupons/Digital Incentiv

es

Word of mouth

Email Marketin

g

Brand Sponsor-

ship

SEO, SEM

Radio

Print Ads

• Instigate a strong call-to-action by offering real value - coupons are “free money” to consumers

• Have the ability to target and micro-target specific consumer segments based on demographics, transaction history, location, and/or social networks

• Provide performance-based, measurable results

• Consumers opt in (relay coupon) thus avoiding blanket across-the-board discounting

• Can be low-cost to implement

• Can be paperless and “green”

• Instigate a strong call-to-action by offering real value - coupons are “free money” to consumers

• Have the ability to target and micro-target specific consumer segments based on demographics, transaction history, location, and/or social networks

• Provide performance-based, measurable results

• Consumers opt in (relay coupon) thus avoiding blanket across-the-board discounting

• Can be low-cost to implement

• Can be paperless and “green”

Key Coupon BenefitsKey Coupon Benefits

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Coupon Use Has Shifted Well Beyond Supermarkets Top Retail Brands Distribute Coupons Online

6Source: Harris Interactive 2009 n=1,912; retailmenot Jan 2010 report

Coupon Use Goes Beyond GroceriesCoupon Use Goes Beyond Groceries Top Searched Coupons OnlineTop Searched Coupons Online

1 Victoria’s Secret

2 Amazon

3 Dominos

4 Kohls

5 JCPenny

6 Macys

7 Papa Johns

8 Bath & Body Works

9 Best Buy

10 Barnes & Noble

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Online Coupon Use Is SkyrocketingInstead of Clipping, Consumers Are Downloading and Printing

Source: Compete Inc. 2/10

Top Tools Online Consumers UseTop Tools Online Consumers UseVisitor Traffic to Top Coupon Sites

(Millions)Visitor Traffic to Top Coupon Sites

(Millions)

+268%+268%

Year-over year changeYear-over

year change

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Several Overlapping Forces Launched the Current Coupon Craze“Coupon Fever” is in Full Swing With No End in Sight

Mobile Device

Proliferation

Internet/Deal Sites

Social Media

• Yahoo! reported that "Coupons" was No. 1 on its list of economy-related queries for 2009• Coupon websites are the second most popular category online, only after job sites• Annual coupon distribution hit highest level in 2009 since 1988

Sources: Inmar; comScore

Economic Conditions

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Page 9: Navigating the Mobile Coupon Landscape

Roadmap for the Conversation

Coupons in Context: Usage, Statistics, and Trends

Coupons in Context: Usage, Statistics, and Trends

Coupon Marketing On-the-Go: Focus on Mobile

Coupon Marketing On-the-Go: Focus on Mobile

The Future of Coupons: Opportunities in Delivery and Redemption

The Future of Coupons: Opportunities in Delivery and Redemption

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Mobile Coupon Growth Will Be ExponentialMobile is the Fastest Growing Trillion-Dollar Industry - Of All Time

Source: Compete Inc. 2/10; Juniper Research

Annual Mobile Coupon Transaction Value Annual Mobile Coupon Transaction Value

Users of mobile coupons will exceed 300 million people globally by 2014, triggered by the apps revolution.

Users of mobile coupons will exceed 300 million people globally by 2014, triggered by the apps revolution.

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And The Demand For Mobile Coupon Delivery is Not Going AwayConsumers Are Highly Receptive to Mobile Advertising

Source: Compete 2/1 n=1245; Harris Interactive 2009 n=1,912; Placecast

On a scale of 1 to 5, how interested would you be in receiving the following

on your smart phone?

On a scale of 1 to 5, how interested would you be in receiving the following

on your smart phone?

What types of products would you be interested in receiving alerts about on

your cell phone?

What types of products would you be interested in receiving alerts about on

your cell phone?

• More than half (51 percent) of consumers used their mobile phones for in-store activities, such as obtaining product information, comparison shopping and finding relevant coupons, something completely unheard of until 2009

• 80% of retailers are aware of the mobile advantage when it comes to payments and loyalty-based benefits, but many are only just starting to experiment

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Recent Innovations in Coupons Are Leveraging the Digital Trends New Coupons With Geo-targeting, Games, and Social-Networking

Integration

Next-Generation Deal SitesNext-Generation Deal Sites

Group BuyingGroup Buying

Deal of the DayDeal of the Day

Geosocial ApplicationsGeosocial Applications

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Brands Are Revolutionizing the Way They Interact With Customers Examples of the Coupon Innovation Frenzy

Source: NYT 3/11/10; Mashable 3/10/10; Tasti D-Lite Blog

Merging Physical & Virtual GoodsMerging Physical & Virtual Goods Taking Customer Loyalty to the Next

Level Taking Customer Loyalty to the Next

Level

“It’s where the intersection between physical and virtual starts to get

interesting...Starbucks loves that, because we’re always looking for that

intersection, which we think is the evolution of social networks” -Chris

Bruzzo, Starbucks VP

“...Helps push relationships down to the local level and encourage store owners to

engage with customers”

-BJ Emerson, Tasti D-Lite Social Technology Officer

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Retailers Are Making the Mobile Investment and Driving Industry ChangeMobile is the Game-Changer

Smartphone App DevelopmentSmartphone App DevelopmentMobile Coupon POS Infrastructure

InvestmentMobile Coupon POS Infrastructure

Investment

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Page 15: Navigating the Mobile Coupon Landscape

Roadmap for the Conversation

Coupons in Context: Usage, Statistics, and Trends

Coupons in Context: Usage, Statistics, and Trends

Coupon Marketing On-the-Go: Focus on Mobile

Coupon Marketing On-the-Go: Focus on Mobile

The Future of Coupons: Opportunities in Delivery and Redemption

The Future of Coupons: Opportunities in Delivery and Redemption

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It’s Just a Matter of Time Before the Mobile Device Becomes the All-in-OneLinking Payment, Connectivity, and Information Access

Payment everywhere at POS

Access control including license, ID

badge

Information retrieval and content distribution

Ticketing and Transit

Connectivityincluding data transfer and/or peer-to-peer payment

Sources: Mobile World Congress Feb. 2010; Microsoft News Center 2008; NFC

“Your phone will be like a digital wallet so the need to use cash or credit card will be

reduced because the phone will identify you and record your transactions in a very rich

way”

-Bill Gates, Chairman of Microsoft

“Our job is to make mobile the answer to everything...Your phone is your alter ego, an

extension of everything we do. Here, right now, we understand the new rule is ‘mobile first’ in

everything.”

-Eric Schmidt, CEO of Google

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Basic Coupon Process Exists Despite Emergence of New Coupon TypesThe “Six Rs”

Retailer communicates

coupon to potential

customers

Potential customers learn about and/or find coupon and acquire it

Customers present

coupon to retailer

Retailer verifies coupon and customer

receives discount

Retailer conducts back-end accounting

processes

Retailer conducts ROI analysis to

inform future campaigns

Communication & DeliveryCommunication & Delivery FulfillmentFulfillment Analytics & OptimizationAnalytics &

Optimization

Release Retrieve Relay Redeem Reconcile Redesign1 5432 6

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Thank you!

Meaghan Schaefer

Chief Marketing Officer

edō Interactive

[email protected]

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