euromonitor presentation.pdf
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7/23/2019 Euromonitor Presentation.pdf
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KEY TAKEAWAYS FROM STARBUCKS’
MOBILE COMMERCE SUCCESSCoca-Cola Co.
August 25, 2014
@Euromonitor@MEvans14
Michelle Evans | Consumer Finance Senior Analyst
Euromonitor International
7/23/2019 Euromonitor Presentation.pdf
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Who is Euromonitor International?KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Euromonitor’s research covers industries, countries and consumers KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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FINANCIAL CARDS
ATM
Debit
Credit (Commercial &Personal)
Charge (Commercial &Personal)
Open loop Prepaid
Closed loop Prepaid
Store
CONSUMER PAYMENTS
Card Payment Transactions
Cash Transactions
Other Paper Payments
Electronic direct/ACHtransactions
CONSUMER LENDING
Mortgages/Housing
Consumer Credit
Auto Lending
Card Lending
Home Lending
Durables LendingEducation Lending
Other Personal Lending
Consumer Finance CoverageKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
7/23/2019 Euromonitor Presentation.pdf
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A look at the current landscape of mobile paymentsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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“He wanted to create thefirst phone that people would fall in love
with….He wanted tocreate something that
was so instrumental andintegrated in peoples’lives that you’d rather
leave your wallet at home
than your iPhone.”
— former iPhone product marketing manager
Bob Borchers said of Steve Jobs in 2012
How Apple set the smartphone revolution into motionKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Source: Baltimore Sun
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Smartphone availability equates to more advanced m-paymentsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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BoostRevenues
Move more people through the line more efficiently
Drive more frequent purchases from repeat customers
Attract potential customers during low peaks in business
ReduceCosts
Lower processing fees paid by merchants
Potential for more secure payments and thus less fraud loss
Better align staffing to business needs
Enhance thecustomerexperience
Connect with the on-the-go consumer
New ways to advertise and market
Earn and redeem rewards in a more seamless manner
Further brandproposition
Richer experience creates stronger brand affinity
Provides a platform for an embedded loyalty scheme
New ways to reward the best consumers for their loyalty
Potential benefits of mobile wallet adoptionKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Starbucks emerges at the mobile payments poster childKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Starbucks Corp
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Starbucks found immense success by pairing loyalty with paymentsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
MOBILE APP USERS
6MOBILE PAYMENTSPROCESSED BYSTARBUCKS WEEKLY
12million
million
Euromonitor International
15%OF TOTAL US SALESMADE VIA MOBILE DEVICE
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Players of all types want to know Starbucks’ secret ingredient KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Starbucks Corp
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Can Starbucks’ mobile payments success story be replicated? KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
80%OF ALL MOBILE
PHONES SOLD IN THEUS IN 2014 ISESTIMATED TO BESMARTPHONES
50%OF ALL MOBILEPHONES SOLD IN THEUS IN 2011 WERESMARTPHONES
Courtesy of Starbucks Corp
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The right audience
Focus on security and privacy
Ease of use for the consumer
Funding source
Improved customer experience
Embedded loyalty component
Buy-in from staff
Re-engage user base
The eight keys to a successful mobile payments product launchKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Starbucks Corp
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Best practice: Mobile success starts with having the right audienceKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Burger King Holdings Inc
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McDonald’s
• Numerous m-payment pilots globally, including Sweden,
Belgium, Canada, Japan and Thailand• Offering m-payments, order-ahead functionality and offers
through the Isis mobile wallet in the US
Wendy’s
• Embedded within its My Wendy’s app
• Funded via an attached credit card or gift card• Plans to offer discounts and rewards via app
Burger King
• Introducing app across 7,000 US locations
• Users must load value onto virtual card• App will gives consumers coupons for deals
Quick-service restaurants have strong appetite for mobile paymentKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Mobile is truly geared toward the younger subset of the populationKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Source: http://blog.leonardo.com/attracting-millennial-travelers-hotels-visual-story/
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Best practice: Must offer same level of security and privacyKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
57%US APP USERS HAVE
UNINSTALLED AN APPOVER PRIVACY FEARS
46%UK SMARTPHONEOWNERS REPORTPRIVACY CONCERNS
Source: http://cs.njit.edu/academics/graduate/mscsp.php
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Best practice: Funding source for the mobile wallet is vitalKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Pay before:Pre-paid card
Pay at purchase:Direct bank transfer
Pay after:Credit or charge card
Potential Funding mechanisms
Pay before: Pre-paid Card
Courtesy of Starbucks Corp
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Pass-through transactions may be the most effective solutionKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Pay after: Credit or charge card
Courtesy of Uber
Courtesy of Isis
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Some wallets try to avoid traditional card network altogetherKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Pay at purchase: Direct bank transfer
Source: http://mobilemarketingmagazine.comCourtesy of Zapp
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Best practice: The ease of use for the consumer will be vitalKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Google Wallet
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What technology will power this future payment experience?KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
NFCChips
Pro: Connection automatically established in
less than a second.
Con: Not available on all smartphones - mostnotably Apple devices.
BLE
Pro: Available on most smartphones since
2012.
Con: Connection must be establishedmanually, which would lead to friction at thePOS terminal.
QRcodes
Pro: Works on most smartphones and at most
requires downloading an app and imputingcard details.
Con: Consumer must open up a mobile appand show the clerk the QR, which results in aclumsy checkout.
Courtesy of PayPal
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Increase in theavailability ofsmartphones
Emergence of big data
Rise of location- based
technologies
Best practice: Enhance the customer shopping experienceKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Sending the right message to the right person at the right timeKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Apple Inc
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Location-based technologies drive a consumer-focused experienceKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Estimote
Asset tracking
Inventory control
Price matching
Coupon issuance
Product information
Instant payments
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Top brands already leveraging beacons for different functionsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Barclays CenterCourtesy of American Airlines
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Beacons are starting to find their way into store environmentsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Best practice: Embedded loyalty component is a mustKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Starbucks Corp
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Survey indicates that consumers need a compelling reason to adoptKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Security
• Nearly half of smartphone users, who have not used mobilepayments, said they had not due to security concerns.
Privacy
• Another third of smartphone users, who have not mademobile payments, were worried about their privacy.
Uninformed
• Some 41% of North American smartphone users wereunaware that their phones could make payments.
Convenience
• Some 37% have not made mobile payments because of theconvenience of their current payment method.
Why Consumers Have Not Adopted M-Payments
Consumer Mobile Payments Survey: Driving Value and Adoption of Mobile Payments— Consumers Want More By Accenture
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Loyalty of the future will be about more than merely miles or pointsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Euromonitor International
$16UNUSED PERCEIVEDVALUE IN REWARDS
21.9 AVERAGE NUMBER OFLOYALTY MEMBERSHIPSPER US HOUSEHOLD
9.5 AVERAGE NUMBER OF ACTIVE MEMBERSHIPS
2011 Colloquy Loyalty Census
billion
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Train staff as to how to use the app
Educate the staff as to how to answer FAQs
Teach the staff about the app’s benefits
Designate mobile captains at each location
Reward staff for sign ups
Best practice: Mobile app success depends on staff buy-inKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
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Best practice: Work doesn’t stop after user signs up KEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Euromonitor InternationalCourtesy of LeveLUp
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But the story of the mobile consumer extends beyond paymentsKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Brandawareness
Engagement Transactions Loyalty
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Mobile weaves into all the elements leading up to the purchaseKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Enables mobile-driven offers, coupons and discounts
Analytics allows brands to know consumers better
Deliver personalized products to meet those needs
Help consumer locate the desired product
Aid consumer in comparison shopping
Manage loyalty offers and rewards
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Mobile is the closest a brand can get to the end-consumerKEY TAKEAWAYS FROM STARBUCKS’ MOBILE COMMERCE SUCCESS
Courtesy of Apple Inc
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CONTACT DETAILS
Michelle Evans | Consumer Finance Senior Analyst
Michelle.Evans@Euromonitor.com
@mevans14
Connect with Euromonitor:
www.facebook.com/euromonitorinternational
Search for “Euromonitor International Market Research Group”
@Euromonitor
www.linkedin.com/in/michelleevansmaclachlan
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