Offers
The Great Mobile Convergence: Content, Loyalty, Analytics, Marketing,
Payments, Social (CLAMPS)
Steve Methvin VP Retail Technology & E-Commerce, Bozzuto's
Ben Sprecher Founder and VP of Marketing, Incentive Targeting
Steve Methvin
Vice President of Retail Technology/Ecommerce
Ben Sprecher
Co-Founder and VP of Marketing
10/10/2012 2 © 2012 Buzzuto’s Inc. and Incentive Targeting, Inc.
Outline
• The converging mobile landscape (Ben – 15-20 min)
• Examples and case studies (Steve – 15-20 min)
• Q&A
10/10/2012 3 © 2012 Buzzuto’s Inc. and Incentive Targeting, Inc.
10/10/2012 4
Turnkey Marketing Automation
© 2012 Incentive Targeting, Inc.
Big Picture Trends in Mobile
Show of hands…
• Do you own a smartphone?
• Do you own a regular cell phone?
• No cellphone?
10/10/2012 6 © 2012 Incentive Targeting, Inc.
Feb 2012 – cell phone ownership among US adults
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46% 41%
Smartphone Dumbphone No cell phone
12%
Source: Pew Internet
© 2012 Incentive Targeting, Inc.
Breakdown of cell phone ownership…
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95% 94% 86%
67%
88%
0%
20%
40%
60%
80%
100%
Ages 18-29 Ages 30-49 Ages 50-64 Age 65+
... by age
87% 88% 88% 88%
0%
20%
40%
60%
80%
100%
White, Non-Hispanic Black, Non-Hispanic Hispanic (English- andSpanish-speaking)
... by race/ethnicity
82% 90% 92%
97% 88%
0%
20%
40%
60%
80%
100%
Less than$30,000/yr
$30,000-$49,999 $50,000-$74,999 $75,000+
... by income
76% 85%
91% 94% 88%
0%
20%
40%
60%
80%
100%
No high schooldiploma
High school grad Some College College +
... by education
Source: Pew Internet
© 2012 Incentive Targeting, Inc.
More than 12x smartphone growth since 2007
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Source: ComScore Data Mine
© 2012 Incentive Targeting, Inc.
People are using their phones to do more…
55% of adult cell owners go online using their phones
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Source: Pew Internet
© 2012 Incentive Targeting, Inc.
The device shift to mobile
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In 2011, for the first time, smartphone and tablet shipments exceed those of desktop and notebook shipments. - KPCB
Source: KPCB Top 10 mobile trends 2011
© 2012 Incentive Targeting, Inc.
The time shift to mobile
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72 Minutes
94 Minutes
0
10
20
30
40
50
60
70
80
90
100
Min
ute
s p
er D
ay
US Mobile Apps vs. Web Consumption Smartphone owners, December 2011
Web Browsing Mobile Apps
Source: Flurry
© 2012 Incentive Targeting, Inc.
Global mobile data traffic
0.033 0.09 0.2 0.6 1.3
2.4
4.2
6.9
10.8
0
2
4
6
8
10
12
2008 2009 2010 2011 2012 2013 2014 2015 2016
Exab
yte
s p
er
Mo
nth
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Total Global Internet Traffic in 2000… x8!
Source: Cisco VNI Forecasts
© 2012 Incentive Targeting, Inc.
…and smartphones are penetrating retail…
Purchases made on smartphones
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Source: comScore Datamine
© 2012 Incentive Targeting, Inc.
44% of consumers use mobile in-store
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Source: GroupM Next
© 2012 Incentive Targeting, Inc.
There’s an app for that…
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The Great Mobile Convergence
Technology convergence…
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Information convergence…
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You
Who?
• On-/Off-line
• Friends
What?
• Tastes
• Preferences
When? Where?
Why?
• Calendar
• Context
© 2012 Incentive Targeting, Inc.
The Great Convergence – CLAMPS
Content
Loyalty
Analytics
Marketing
Payment
Social
10/10/2012 22 © 2012 Incentive Targeting, Inc.
Traditional silos • Content
– Circular, recipe cards, cooking tips on website
• Loyalty – Key tag + sale prices + sweepstakes
• Analytics – Offline, sales- or supply-chain
focused
• Marketing – TV/radio ads, in-store signage
• Payment – Cash, credit, check, EBT, coupons
• Social – Facebook page w/ 174 “Likes”
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Content
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Retailer/brand-provided • Product info • Recipes • How-to
videos • Etc.
User-generated • Ratings,
reviews (Amazon, Yelp)
Self-generated • Shopping list
(Grocery IQ)
Shopping tools • Price comparison
(ShopSavvy) • Inventory (Milo,
retailer apps) • Product locators/
store maps (Aisle411)
Information a consumer finds valuable
© 2012 Incentive Targeting, Inc.
Loyalty
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Tracking, rewarding, and incenting the continuing relationship with a consumer
Tracking • Replace key tags
(retailer apps) • Consolidate
accounts (CardStar, Google Wallet)
Rewarding • “Punch cards” (punchd
/Google, Cardify, Belly) • Points/miles • Savings • Gas rebates • Sweepstakes • Perks (Starbucks App) • Etc.
Incenting • Visit store
(ShopKick) • Check in
(Foursquare) • Scan QR code • Share on social
media (Facebook, Twitter)
© 2012 Incentive Targeting, Inc.
Analytics
• Recording – T-Log + ID + social + geo + online + behavior + …
• Measuring – Explosion of data sources & volume = “Big Data” challenge – Requires new tools + technology
• Analyzing – Real-time – Shopper-centric (not just product-/category-centric) – Rigorous (control groups, ongoing tracking, ROI metrics, etc.)
• Acting – Must drive real business decisions and actions
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Recording, measuring, analyzing, and acting on retail and consumer data
© 2012 Incentive Targeting, Inc.
Marketing
• Hyper-local/context-sensitive – Geo-fencing (Where Ads) – Time of day, direction of travel (Google Now)
• Personalized – Past behavior (Incentive Targeting) – Search (Google AdWords) or retargeting – Social (Facebook) – Collaborative filtering (Amazon)
• Coupons, Deals, Circulars, Savings – On the stuff I like
• Dialogue, not monologue • Pay-for-performance
– CPM CPC CPA
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Communicating with a consumer to drive sales
© 2012 Incentive Targeting, Inc.
Does all this stuff matter?
Users are up to
85x more likely to click on an ad sent to them in-
store versus a typical banner ad.
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Source: MobileCommerce Daily
Payment
• Receipts
– Digital (myReceipts, Proximiant)
• Mobile self checkout (Modiv, AisleBuyer)
• Consumer-funded deals (Groupon)
– Consumer pre-pays for the product/service
• Completely new payment models
– Pay with Square, PayPal local
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Transferring money from the consumer to the merchant or vendor
© 2012 Incentive Targeting, Inc.
It’s BIG, but it’s complicated…
• How payment is processed – Carrier billing (moPay) – Separate account (PayPal) – Thru Credit/Debit networks – Arbitrage across networks (Corduro)
• Payment platforms – V.me (VISA) – Serve (American Express) – PayPass (MasterCard) – PayPal
• Terminal providers – Verifone – Ingenico – ViVOtech
• Mobile wallet networks – ISIS (AT&T, T-Mobile, Verizon) – MCX (Walmart, CVS, Publix, Target, Best Buy, Shell, etc.) – Others…
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The worldwide market for mobile payments will grow to $633.4 billion by 2014, up from $68.7 billion in 2009. - Generator Research
© 2012 Incentive Targeting, Inc.
Mobile device as payment terminal/POS
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Mobile device as payment vehicle
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NFC QR code or barcode
Something new…
© 2012 Incentive Targeting, Inc.
Social
• Seeking/sharing advice – Reviews & ratings (Yelp)
• Bragging/celebrating – Haul videos (YouTube)
• Checking in (Foursquare)
• Gamification – Badges/accomplishments, leaderboards, treasure/scavenger
hunts
• Fans/Followers (Facebook, Twitter)
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Connecting and sharing the retail experience between consumers
© 2012 Incentive Targeting, Inc.
Best Practices?
Apply CLAMPS
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Relevance
© 2012 Incentive Targeting, Inc.
Measurability
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The Challenge
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Retailers Consumers
© 2012 Incentive Targeting, Inc.
The retailer’s perspective
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Mobile beats Paper
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Mobile shoppers make frequent trips
Source – Google Analytics 10/10/2012 42 © 2012 Buzzuto’s Inc.
© 2012 Buzzuto’s Inc. and Incentive Targeting, Inc.
One extra trip a month?
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Mobile Retailers replace spreadsheets with dashboards
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Mobile minded retailers use #social to replace focus groups
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Mobile minded retailers listen to customers
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…and respond
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The Mobile Wallet
10/10/2012 49 © 2012 Buzzuto’s Inc.
Mobile Retailers are taking sales
from the other store
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Dave’s Smithfield, RI 10/10/2012 51 © 2012 Buzzuto’s Inc.
Others Promise…We Deliver
10/10/2012 52 © 2012 Buzzuto’s Inc.
Questions?
Thank you!
For more information, please contact me:
Ben Sprecher
Incentive Targeting, Inc.
617-661-4170
Sources
Slide Source
7 http://pewinternet.org/Reports/2012/Smartphone-Update-2012/Findings.aspx, retrieved August 30, 2012
8 http://pewinternet.org/Trend-Data-(Adults)/~/media/Infographics/Trend%20Data/April%202012/Gadgets%20by%20all.xls, retrieved August 30, 2012
9 http://www.comscoredatamine.com/2012/07/getting-smart-u-s-smartphone-population-reaches-110-million-consumers/, retrieved August 30, 2012. http://www.comscore.com/Press_Events/Press_Releases/2012/8/comScore_Reports_June_2012_U.S._Mobile_Subscriber_Market_Share, retrieved August 30, 2012.
11 http://pewinternet.org/Reports/2012/Location-based-services.aspx http://pewinternet.org/Reports/2012/Cell-Internet-Use-2012.aspx
12 http://www.slideshare.net/kleinerperkins/kpcb-top-10-mobile-trends-feb-2011
13 http://thetechjournal.com/internet/mobile-web-vs-desktop-web.xhtml. http://blog.flurry.com/bid/80241/Mobile-App-Usage-Further-Dominates-Web-Spurred-by-Facebook
14 http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.html
16 http://www.comscoredatamine.com/2012/06/smartphone-shoppers-top-10-on-device-purchase-categories/
17 http://www.scribd.com/doc/103349382/GroupM-Next-White-Paper-Showrooming-and-the-Price-of-Keeping-Buyers-In-Store
28 http://www.mobilecommercedaily.com/walmart-dominates-mobile-retail-check-ins-report
30 http://www.generatorresearch.com/productinfo.php?pid=303
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