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Industry Trends & Statistics
57% consumers would like to receive mobile coupons – Deloitte
100M forecasted users of mobile coupons by 2010 – Juniper Research
3Bn mobile coupons issued by 2011 – Juniper Research
1% redemption rate for printed coupons – CMS Inc.
5% redemption rate for mobile coupons – Juniper Research
$7Bn redemption value of mobile coupons by 2011 – Juniper Research
Mobile marketing is here. Are you prepared?
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Why are retailers investing in mobile marketing?
Cost Savings
No Printed PaperNo Shipping Fees
No Labor CostNo Advertising
Fee
Real Time
Targeted Audience
Customizedper customer
No more “cutting”coupons
Increased Redemption
Lower Costs, Increase Sales while being more environmentally friendly
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Mobile Phone Applications in Retail
In-Aisle Promotions Electronic Loyalty Mobile Coupon RedemptionMobile Payment
>100 million trees are used each year for paper coupons
2.8 million automobiles emit the same amount of carbon emissions created to dispose of paper coupons
Support the Green initiative, while improving your bottom line
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Advertising – Text to Action
Demonstration: Text “Honeywell” to 78527 (Powered by CodeBroker, Verizon does not apply)
CodeBroker www.codebroker.com
CellFire www.cellfire.com
RocketBux www.rocketbux.com
How It Works1. Advertise using normal marketing methods
- Print, billboard, TV, web, etc.
2. Call-to-action is text a keyword to a short code3. Customer will get an automated response with
promotional offering4. Customer can redeem promotion at store location
Customer Benefits:– Selectively accept promotional offers– Easier call to action than website, phone or fax– Always have the coupon on your person
Retailer Benefits:– Increased redemption rate, increases revenue– Allow customer to immediately react, increasing
likelihood of success– Reduced costs with automated back-end– Environmental image
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How It Works1. Customer downloads app to mobile phone2. Retailer registers with servicer provider (CellFire)3. Retailer posts promotional offers online to the
CellFire website4. Customers browse using app, download
promotions of interest5. Redeemed at the store through scanning of code
or hand keying promotional code
Customer Benefits:– No more clipping coupons– No more forgetting paper coupons at home
Retailer Benefits:– Reduce cost of printing coupons– Higher redemption rate– Targeted geographic audiences
Online Browsing-Based Promotions
Saved Offers Page
All Offers Page
Offer Detail Page
Offer Code Page
Visit www.cellfire.com to see retailers already taking advantage
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In-Aisle Promotional Offers
More advanced systems required and customer must be tech savvy
How It Works1. In-aisle kiosks or Bluetooth hotspots
stationed throughout the store2. Customer activates their Bluetooth network
on their phone3. Downloads and offers can be pushed to the
phone based on store location
Customer Benefits:– Real time promotional offers– Don’t have to carry additional paper
discounts
Retailer Benefits:– Corporate image: Green and environmental– Improved customer satisfaction
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Mobile Payment & E-Gift Card
How It Works1. Unique ID created and linked to pre-paid account2. Unique ID encoded in bar code3. Bar code distributed to customer via phone4. Upon each transaction, scan bar code to debit the
account
Customer Benefits:– Never forget your gift card at home– Reduced wallet size
Retailer Benefits:– Corporate image: Green and environmental– Reduced costs minimizing printed cards– Improved customer satisfaction
Avoid the costs of printing 1000’s of gift cards per year
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Electronic Loyalty Cards
Scanaroo www.scanaroo.com CardStar www.mycardstar.comWalletZero www.walletzero.comRoyalty Rewards www.royaltyrewards.comCodeBroker www.codebroker.com
How It Works1. Download app to phone2. Select store 3. Type enter loyalty number4. Present phone to cashier at checkout
Customer Benefits:– Increased savings by always having their card– No hassle: lost cards or oversized wallets
Retailer Benefits:– Corporate image: Green and environmental– Reduced costs minimizing printed cards– Improved customer satisfaction
Customers are downloading and attempting to use these apps TODAY!
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Direct Marketing to Mobile PhonesHow It Works
1. Target audience pulled from database2. MMS/SMS distributed to customer mobile phones3. Message contains bar code or link to promotional
code offering4. Customer presents code at time of checkout
Customer Benefits:– Promotions sent directly to phone– Easier redemption and always on your person
Retailer Benefits:– Corporate image: Green and environmental– Reduced costs with less printed paper– Increased sales with higher redemption rates
Get promotional offers to customers faster and more effectively
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Mobile Marketing Value Chain
Right Customer Right Bar Code Right Scanner
Target a specific set of customers that have similar buying habits so you can offer the…
Right Promotion
To maximize redemption rates and increase sales by sending the…
Who will optimize the bar code for size and orientation on each unique mobile phone so that the…
That contains all the necessary information through the…
Can ensure the highest read rate and customer throughput.
Right Provider
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Retailer Marketing or Outsourced Agency Mobile Marketing Solution ProviderBar Code Scanner
Manufacturer
This can result in an increase in redemption rate by 500%
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Right Provider: One size does NOT fit all
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With over 1000+ unique phones, look for a partner who can render for your demographic and needs
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Right Provider: One symbology does NOT fit all
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Altering size and ratio of code can result in “no read” scenarios
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Right Provider: Every phone is unique
Each phone has optimal symbologies and orientation to improve reading
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Right Scanner: Technology
LASER Scanner
REQUIRED:Reflection from each SPACE
2D IMAGER
PROBLEM:LCDs do not reflect light
SOLUTION:Take a picture with an imager
Digital Imagers essentially take a Black & White picture of the screen and process the image in Software
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Right Scanner – Form Factor Preference
Fixed PositionPresentation Scanners
Ideal Use Case:• Low volume transactions (<5 items)• Large/bulky items• Tethered to Aux port of bioptic
Retail Industries:• Specialty store• Discount – secondary scanner• Grocery - secondary scanner
Ideal Use Case:• Fixed reading• Integrated into other equipment such
as kiosks
Retail Segment:• Grocery• Discount• Large store footprint
Ideal Use Case:• Mid-volume transactions (5-15 items)• Majority of items are smaller sized• Swipe scanning for faster throughput
Retail Segments• Specialty Store• Convenience Store• Pharmacy
Hand-Held Scanners
Select scanner on transaction size, SKU type and checkstand layout
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The Situation
Customer Top 10 U.S. Retailer
Industry Retail
Application Mobile Couponing
The Challenge
Traditional printed coupons provide an average redemption rate of 1%, and are becoming less popular with the younger demographic.
Consumers are always forgetting or leaving behind printed coupons, causing frustration at the time of checkout that the discount is not awarded
What tools are available to retailers to:
i) drive better ROI on marketing promotions,
ii) reach demographics not currently receptive to traditional marketing campaigns, and
iii) better track individual behavior
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The Solution
Honeywell Product Focus 1690
Other AIDC and IT equipment CodeBroker Mobile Couponing Software
• Nationwide deployment of a subscription-based mobile couponing service
• Consumer can register online and provide his/her mobile phone number to receive monthly promotional offers
• CodeBroker delivers a highly optimized PDF417 bar code based on each individual model of mobile phone
• Consumer presents their mobile phone at the time of checkout where it is scanned by the Honeywell Focus 1690
• Required no POS software modification
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The Experience and Results
• Started with pilot projects in one and then multiple stores – led by marketing
– Goals were to test scanning, cashier behavior, redemption rates, learn about other potential issues
• Store operations involved at each step in the process
• No POS modifications required. No integration required for pilots
• After successful testing, rolled out nationally
• Has been a highly visible success for marketing and they expect it to drive significant revenue
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Honeywell & CodeBroker Evaluation Program
Contact a Honeywell representative for more information
Package A Package B Package C
Honeywell Area-Imaging Bar Code Scanners(Xenon 1900 and Genesis 7580 scanners only)
Up to 5 Up to 20 Up to 50
CodeBroker Campaign Management SW Y Y Y
# of Promotions 1 2 2
# of Texts per Promotion 2,500 5,000 10,000
Duration of Promotion 2 weeks 1 month 2 months
List Price* $5,000 $15,000 $35,000
*Expenses related to the installation and integration of hardware is the responsibility of the retailer and is not included in the price of an evaluation package.
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Things to Remember
• Mobile marketing can be used in a variety of applications– Payment, Promotions, Loyalty
• Five Rights– Right customer: more targeted campaigns
– Right promotion: real time and customized by customer segment
– Right bar code: they are not all the same
– Right provider: campaign delivery and bar code optimization
– Right scanner: imaging device, not laser
• The benefits can be huge– 500%+ Increase in promotional sales due to higher redemption rates
– Reductions in marketing expense, eliminating paper and advertising fees
– Green corporate image
No change to POS SW if just replacing printed codes with mobile
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Dynamic Gateway Solution (DGS)
If the Point of Sale software does not handle the extra data desired in a mobile marketing campaign…
DGS (Dynamic Gateway Solutions) offers an intermediary device that can parse, validate, and redeem mobile coupons and deliver a pre-formatted standard coupon code back to the POS device.
Redemption, loyalty, and other data is parsed out and validated via a connection to the internet and API’s that sync to the mobile coupon provider’s site.
• Sits between Point Of Sale and barcode scanner
• Works with various Mobile Coupon providers
• Does not requite Point Of Sale software integration
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Informational Sites
• Industry Trends– Mobile Marketer www.mobilemarketer.com
– Mobile Marketing Association www.mmaglobal.com
– Mobile Marketing Watch www.mobilemarketingwatch.com
• Mobile Marketing Providers– Mobivity www.mobilemarketing.net
– CodeBroker www.codebroker.com
– CellFire www.cellfire.com
– RocketBux www.rocketbux.com
• Software/Hardware Gateway– DGS http://dynamic-gateway.com/
• Bar Code Scanning Solutions– Honeywell www.honeywellaidc.com
MS7580 Genesis
MS1600 Focus Series 4600 & 4820
4800p & MS4980 VuQuest