Mobile Marketing 101 Fundamentals in mobile marketing implementation Honeywell.com Industry Trends & Statistics 57% 100M 3Bn 1% 5% $7Bn consumers would like to receive mobile coupons – Deloitte forecasted users of mobile coupons by 2010 – Juniper Research mobile coupons issued by 2011 – Juniper Research redemption rate for printed coupons – CMS Inc. redemption rate for mobile coupons – Juniper Research redemption value of mobile coupons by 2011 – Juniper Research Mobile marketing is here. Are you prepared? 2 Document control number Honeywell Proprietary Honeywell.com Why are retailers investing in mobile marketing? Cost Savings Increased Redemption No Printed Paper No Shipping Fees Targeted Audience Real Time No Advertising Fee No Labor Cost No more “cutting” coupons Customized per customer Lower Costs, Increase Sales while being more environmentally friendly 3 Document control number Honeywell Proprietary Real Life Implementations of Mobile Marketing Honeywell.com Mobile Phone Applications in Retail >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 In-Aisle Promotions Mobile Payment Electronic Loyalty Mobile Coupon Redemption Support the Green initiative, while improving your bottom line 5 Document control number Honeywell Proprietary Honeywell.com Advertising – Text to Action How It Works 1. Advertise using normal marketing methods - Print, billboard, TV, web, etc. 2. Call-to-action is text a keyword to a short code 3. Customer will get an automated response with promotional offering 4. 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 CodeBroker www.codebroker.com CellFire www.cellfire.com RocketBux www.rocketbux.com Demonstration: Text “Honeywell” to 78527 (Powered by CodeBroker, Verizon does not apply) 6 Document control number Honeywell Proprietary Honeywell.com Online Browsing-Based Promotions How It Works 1. Customer downloads app to mobile phone 2. Retailer registers with servicer provider (CellFire) 3. Retailer posts promotional offers online to the CellFire website 4. Customers browse using app, download promotions of interest 5. 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 Saved Offers Page All Offers Page Offer Detail Page Offer Code Page Visit www.cellfire.com to see retailers already taking advantage 7 Document control number Honeywell Proprietary Honeywell.com In-Aisle Promotional Offers How It Works 1. In-aisle kiosks or Bluetooth hotspots stationed throughout the store 2. Customer activates their Bluetooth network on their phone 3. 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 More advanced systems required and customer must be tech savvy 8 Document control number Honeywell Proprietary Honeywell.com Mobile Payment & E-Gift Card How It Works 1. Unique ID created and linked to pre-paid account 2. Unique ID encoded in bar code 3. Bar code distributed to customer via phone 4. 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 9 Document control number Honeywell Proprietary Honeywell.com Electronic Loyalty Cards How It Works 1. Download app to phone 2. Select store 3. Type enter loyalty number 4. 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 Scanaroo www.scanaroo.com CardStar www.mycardstar.com WalletZero www.walletzero.com Royalty Rewards www.royaltyrewards.com CodeBroker www.codebroker.com Customers are downloading and attempting to use these apps TODAY! 10 Document control number Honeywell Proprietary Honeywell.com Direct Marketing to Mobile Phones How It Works 1. Target audience pulled from database 2. MMS/SMS distributed to customer mobile phones 3. Message contains bar code or link to promotional code offering 4. 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 11 Document control number Honeywell Proprietary 5 Rights of Mobile Marketing Honeywell.com Mobile Marketing Value Chain . . . . Right Customer 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… Retailer Marketing or Outsourced Agency Right Bar Code Right Provider Right Scanner That contains all the necessary information through the… Who will optimize the bar code for size and orientation on each unique mobile phone so that the… Can ensure the highest read rate and customer throughput. Mobile Marketing Solution Provider Bar Code Scanner Manufacturer This can result in an increase in redemption rate by 500% 13 Document control number Honeywell Proprietary Honeywell.com Right Provider: One size does NOT fit all P ? O With over 1000+ unique phones, look for a partner who can render for your demographic and needs 14 Document control number Honeywell Proprietary Honeywell.com Right Provider: One symbology does NOT fit all P ? O Altering size and ratio of code can result in “no read” scenarios 15 Document control number Honeywell Proprietary Honeywell.com Right Provider: Every phone is unique P P P . . Each phone has optimal symbologies and orientation to improve reading 16 Document control number Honeywell Proprietary Honeywell.com Right Scanner: Technology LASER Scanner O PROBLEM: REQUIRED: Reflection from each SPACE LCDs do not reflect light 2D IMAGER P SOLUTION: Take a picture with an imager Digital Imagers essentially take a Black & White picture of the screen and process the image in Software 17 Document control number Honeywell Proprietary Honeywell.com Right Scanner – Form Factor Preference Hand-Held Scanners Presentation Scanners Fixed Position Ideal Use Case: • Low volume transactions (<5 items) • Large/bulky items • Tethered to Aux port of bioptic Ideal Use Case: • Mid-volume transactions (5-15 items) • Majority of items are smaller sized • Swipe scanning for faster throughput Ideal Use Case: • Fixed reading • Integrated into other equipment such as kiosks Retail Industries: • Specialty store • Discount – secondary scanner • Grocery - secondary scanner Retail Segments • Specialty Store • Convenience Store • Pharmacy Retail Segment: • Grocery • Discount • Large store footprint Select scanner on transaction size, SKU type and checkstand layout 18 Document control number Honeywell Proprietary Anatomy of a Win Honeywell.com 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 20 Document control number Honeywell Proprietary Honeywell.com 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 21 Document control number Honeywell Proprietary Honeywell.com 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 22 Document control number Honeywell Proprietary Honeywell.com Honeywell & CodeBroker Evaluation Program Package A Package B Package C Up to 5 Up to 20 Up to 50 CodeBroker Campaign Management SW Y Y Y # of Promotions 1 2 2 2,500 5,000 10,000 2 weeks 1 month 2 months $5,000 $15,000 $35,000 Honeywell Area-Imaging Bar Code Scanners (Xenon 1900 and Genesis 7580 scanners only) # of Texts per Promotion Duration of Promotion List Price* *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. Contact a Honeywell representative for more information 23 Document control number Honeywell Proprietary Honeywell.com 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 24 Document control number Honeywell Proprietary Honeywell.com 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 25 Document control number Honeywell Proprietary Honeywell.com 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 MS1600 Focus Series 4600 & 4820 – DGS http://dynamic-gateway.com/ • Bar Code Scanning Solutions – Honeywell www.honeywellaidc.com 4800p & MS4980 VuQuest MS7580 Genesis 26 Document control number Honeywell Proprietary