navigating the mobile coupon landscape
TRANSCRIPT
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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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
Proprietary and Confidential, edō interactive, Inc.
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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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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
Proprietary and Confidential, edō interactive, Inc.
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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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