How Mobile Operators are enabling digital coupons Paul Crutchley Strategic Engagement Director - GSMA © 2014 GS1 2 GS1 & GSMA. A great match Not for profit, member controlled, for more than 40 years 111 national organisations… 2,000 staff …150 countries served Close to 2,000,000 member companies 25 different industries © 2014 GS1 Retail is more than just a transaction Merchants, town centres and shopping malls have been finding the best way to target customers for years. Yet mobile is an expanding communications channel and we have to consider it carefully. Store 500 people Increase with strategic engagement Know Your Customer © 2014 GS1 Build affinity over time Purchase 200 people Targeting Customer 5000 people Targeting Customer Targeting Customer High Street/ Shopping Centre Targeting Customer Combine eyes with feet Increase footfall Affinity 100 people Consideration of interoperability and collaboration We need to consider the ecosystem, the PoS processes and the customer journey if we are to make good decisions with regards to the creation, distribution and redemption of couponing and loyalty. At PoS On the mobile Within the process Set up and Communicate Purchase + Couponing / Loyalty Time Sensitive © 2014 GS1 Validation and Redemption Reporting and Settlement Discovery and Acquisition Presentment 2013 / 2014 progress of the retail work • • • • • © 2014 GS1 Substantial research in what retailers and their ecosystem want Mobile Commerce in Retail whitepaper, Loyalty & Couponing whitepaper, iBeacon / BLE overview, Market Research conducted Published open Technical Architecture & API proposal for couponing and loyalty using NFC (2tap) Market engagements with retail ecosystems and ‘in market’ collaborating mobile operators in Asia, and several in Europe. Built on a sound and solid framework of proposition, business and technical strategy. GSMA’s target markets: collaboration & interoperability Global reach Promoting innovation, interoperability, collaboration & standardisation © 2014 GS1 This joint opportunity was not to be missed. GSMA GS1 • Mobile commerce in Retail Digital Coupon specification • Mobile Loyalty & Couponing Technical Specifications • Tech Specification Coupon and Event Database Standards loyalty The Business Vocabulary associated • A well engaged and researched retail with events in the event database ecosystem An Open Source version of the event • A desire from the mobile industry to database (EPCIS) bring couponing to life Joint GSMA / GS1 project – Provide recommendations for enabling the mass distribution and acceptance of digital coupons Give guidance to the ecosystem, brand and merchant © 2014 GS1 At risk of ‘hyper fragmentation’ in mobile apps Today 1 Retailer/Brand & 1 Operator Potential fragmented future X Retailers/Brand & X Operators Collaborative future X Retailers/Brand & X Operators © 2014 GS1 Single to Mass Market Brand open loop couponing solution Brand closed loop couponing solution Multiple Brands closed loop couponing solution Brands open loop couponing solution Merchant closed loop couponing solution Multiple Merchants closed loop couponing solution Merchants open loop couponing solution Merchant open loop couponing solution © 2014 GS1 Merge Merchants & Brands open loop couponing solution Prior to discussing Acceptance and Distribution Assumptions Can create a coupon Understand ecosystem Transfer mechanisms (NFC/BLE etc) Determine customer journey Discuss and determine ideal digital mass distribution process Technical capabilities (applets etc) Open coupon format Identify new areas within ecosystem Create and agree a common way of thinking Objectives: Understand retailer distribution to settlement ecosystem © 2014 GS1 Next - Making couponing and loyalty mass market OFFER ISSUER SETTLEMENT CAMPAIGN MGT & REPORTING COUPON DATA POOLS OFFER VALIDATOR RETAIL ECOMMERCE &/ STORE POS © 2014 GS1 OFFER/ COUPON DISTRIBUTORS COUPON EVENT REPOSITORY CONSUMER MOBILE Key: Distribution Acceptance Redemption Data modelling exercise as part of the development Offer Issuer Data Pool Event Repository GLN Merchant GLN Event SGCN GLN Merchant SGCN Parameters GLN Settlement GTIN GLN Distributor GLN Validator Creative Parameters GCN Campaign Manager / Agency GLN Distributor GLN Merchant GLN Event Parameters GSRN SGCN (burn) GLN Settlement SGCN Distributor GLN Merchant GCN (range 1) GCN (range 2) GLN Validator GLN GCN Consumer GLN Merchant GSRN GSRN Creative Creative SGCN (burn) SGCN (burn) SGCN Parameters © 2014 GS1 Store GCN GTIN GTIN Validator SGCN Settlement What’s next - What Needs To Be Built The following need to be added: • Coupon Data Pool for the issuance of campaign coupons • Coupon Event Repository as the single truth for campaign redemptions • Campaign management platform to interface to the Coupon Data pool, Coupon Event Repository, distributors and settlement • Possibly a marketplace of offers working with distributors We believe these additions create new opportunities for the ecosystem • Ecosystem players may fulfil one or all of these new functions • A market may have a single Coupon Data pool and Coupon Event Repository, or many © 2014 GS1 Coupon Datapool Coupon Event Repository Campaign Management Marketplace This process with mobile can deliver these benefits • Wide distribution of coupons through multiple and NEW channels • Targeting and controlled distribution • Distribute coupons across multiple retailers • Unique codes reducing fraud and identifying consumers that engage • Fast and easy consumer experience • Live view of campaign effectiveness from distribution through to redemption • Fast settlement © 2014 GS1 Our Next Steps • Complete review sessions with retailers and brands • Compile whitepaper together, expected publication November • Technical evaluation and API identification • For GSMA – further assessment for Mobile Operator role • Engagement with mobile operators in implementing markets © 2014 GS1 GSMA’s digital commerce retail project 2014/15 “Engage with the digital commerce ecosystem to stimulate the development and on-boarding of service applications” • Define the core functionality and technology to enable couponing and loyalty • Determine a solution for mass distribution and acceptance of couponing • Develop consistent case studies for interoperability in the ‘instore shopper journey’ • Support go-to-market activities between mobile operators & merchant ecosystems in selected markets © 2014 GS1