Shopper Dialogue: how mobile phones are bringing consumers and brands closer together. Joe Horwood GS1 Global Office
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1 Shopper Dialogue: how mobile phones are bringing consumers and brands closer together Joe Horwood GS1 Global Office
2 Key concepts Consumer Store Mobile phone Network Product Information
3 What is Shopper Dialogue? The industry has an opportunity to better serve shoppers by creating a two-way dialogue with them, helping them to make more informed decisions, and linking the store and the home with emerging in-house and consumer technology
4 Mobile a huge success story Mobile phones have been successful because they meet a basic need to communicate
5 Opportunities linked to mobile 3 billion mobile phones = every consumer Tool already defined for communication: Personal Live Two-way Endless list of consumer needs that could be met better (health and wellbeing, product origin)
6 How is GS1 helping Shopper Dialogue Mobile Com group active since June 2007 White Paper published February 2008 Current status Extended packaging Defining user requirements Outreach to mobile industry White Paper available at
7 Shopper dialogue success factors Innovative business models Consumer adoption Technology availability Interoperable systems GS1 in in unique position of bringing together all stakeholders on neutral territory and enabling success
8 GS1 Mobile Com Workgroup Retailers Manufacturers Mobile Industry Ahold Carrefour Kao Markant Maxima Metro Migros Rewe Tesco Walmart Wegman s Smiths Medical Smuckers 3M Ericsson Ajinomoto Motorola Hudora Motorola J&J Consumer Loréal Unilever Nokia To join contact Joe Horwood at Kraft Orange Labs joe.horwood@gs1.org Proximus Merck T-Mobile Nestlé GSMA P&G MMA Pfizer
9 Contact Details Joe Horwood GS1 Global Office E joe.horwood@gs1.org T W
10 Mobile Commerce Brand's Perspective Vanderlei (Vandy) Santos Nestlé
11 Objectives Build awareness about engaging with consumers and business partners through mobile phones Reinforce the need for open standards and infrastructure Get your active participation
12 Outline The importance of Mobile Commerce Potential business cases and success stories How our industry can make it happen
13 Mobile technology is changing the way we live and do business More mobile devices than computers People more connected and sharing Real two way dialog and collaboration at fingertips anytime
14 Consumer behaviors and expectations are changing More informed and connected Value convenience and the opinion from other consumers Expectation for added value services and personalized services
15 Outline Mobile Commerce is strategic for engaging with consumers and business partners Potential business cases and success stories GS1 has a key role to make it happen
16 We can create new ways of engaging with Consumers Personalized Services & Content Tailored and relevant messages Based on consumer preferences, timing and location Promotions Tailored Relevant Extended Packaging Additional information and services (e.g. recipes, advisor) when consumer wants Influence consumer in the shopping moment
17 We can create new ways of engaging with Consumers Loyalty Programs Mobile phones replace physical membership cards Store Location & Comparison Can find closest store to buy a product Can compare prices and also be alerted when close to store (using GPS) Catalog Shopping Can place orders for products scanned directly from a catalog
18 We can also improve our Customer Services Supply Chain Information and Traceability Checks order status and delivery and delivery schedule on the mobile phone Driver informs the actual delivery via mobile phone Ordering Small shops can place orders on their mobile phones by scanning the barcode
19 Emerging applications linking objects with information and services
20 Emerging applications linking objects with information and services
21 Our industry is already exploring these new ways Nestlé Japan Other Companies Examples Other Companies Examples Other Companies Examples
22 Outline Mobile Commerce is strategic for engaging with consumers and business partners The lack of standards makes it harder to leverage opportunities How our industry can make it happen
23 We must act now to have open standards and infrastructure Faster adoption Broad Reach Lower costs Ensure interoperability
24 GS1 Community already started working Initiated GS1 Mobile Com Group Group has developed White Paper Started discussions with key players and standardization bodies
25 Your participation is key to make it happen Participate actively on GS1 Mobile Com Group Participate in discussions with key players Discuss with your users and share their needs and challenges
26 Summary Mobile Commerce is strategic The lack of standards makes it harder to leverage opportunities Working together we can make it happen!
27 Contact details Vanderlei (Vandy) Santos ebusiness Project Manager D E vanderlei.santos@nestle.com
28 Albert Heijn & Mobile Commerce The latest way to shop?? Erwin Veer - AH Innovation Manager Erwin.veer@ahold.com ECR Europe, 28 May 2008
29 Albert Heijn Founded in 1887 by Albert Heijn Sr stores 8.0 billion sales in ,1% sales increase in ,5% market share in The Netherlands Part of Ahold, in The Netherlands also: Gall & Gall (wine/liquor) Etos (drugstore)
30 Albert Heijn Formats Conveniënt stores since Locations products per store m2 Supermarkets since Stores products per store m2 Albert Heijn Extra Large since Stores > products per store m2 Albert Heijn Web store Almost country wide home delivery service
31 Aim of this presentation Show the breadth of Albert Heijn s mobile pilots Show the possibilities mobile commerce has for our industry Invite others to help build the mobile ecosystem
32 Our Customer 1. Preparation choosing 4. Eating surprising 3. Cooking 2. Buying Some potential (mobile) applications toward customers as a result of the upcoming Mobile Lifestyle 1. Preparation: Digital Shoppinglist, Store Navigation 2. Buying: Mobile scanning and payments, Personal promotions, Allergy Assistant 3. Cooking: Cooking Assistant and information, Entertainment 4. Eating: Entertainment, remote control
33 AH Mobile Pilots 2007/2008 Finished Initiatives: Tips op Maat 1 (SMS) Tips op Maat 2 (SMS) Mobile Power Touch & Go (NFC selfscanning) Current Initiatives: Payter Phase 1 (NFC payment) Touch & Go Again (NFC payment and NFC selfscanning) Payter Phase 2 (NFC) Future Initiatives: Tips op Maat 3 (Bluetooth) Allergy assistant Online Food assistant Personal shopping lists.
34 Tips op Maat 1 & 2 Personal information offered at the right moment. Objective: Surprise the customer with information In store or at a convenient moment during the day Status: Concept consists of SMS services and Bluetooth services. Bluetooth test under preparation Partners PLUK, BlueAd Pilot: SMS Pilot 1 finished SMS Pilot 2 currently evaluated Next steps: Pilot 3 with opt-in Bluetooth information service
35 Touch & Go - Mobile Selfscanning Customers can scan items while shopping and pay at a separate payment station. Objective: Reduce queue lengths at check-out for frequent customers Status: Start pilot July customers 3 months Partner Capgemini Pilot: Pilot finished and successful Next steps: New pilot prepared with mobile payment integration
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41 Payter 1 Pay with your mobile phone Objective: Increase ease of payment Platform for additional services Status: Pilot started in August 2007 Pilot: 1000 customers with a Payter-phone Over 50 retailers in Rotterdam 1 AH Store Runs until Augustus 2008 Next steps: Payter has big rollout plans for 2008/2009 AH has not made a decision yet
42 Payter 1
43 Selfscanning and payment with your mobile phone Objective: Never wait in-line anymore Pay with your mobile phone without a checkout High payment convenience: speed of Chipknip (no PIN-code), ease of Debit (no recharging) Status: Partners: Rabobank, Capgemini, Blue Ad en Servex IT almost finished Pilot: Start Q2/Q Store 6 months Next steps: Evaluation and additional development Develop ecosystem
44 Payter 2 Additional functionality on the Payter mobile phone for AH customers Objective: Discover how customers react to additional NFC functionality Every month 2 new AH/Payter pilots Status: Partners: Payter, Pathe, others Examples: Recipes on the mobile DVD Top 5 trailers on the mobile AH Commercials on the mobile Interactive In-house magazine Allerhande Pilot: Pilot started May months Next steps: TBD
45 Future Pilots Ideas currently developed into future pilots 1D-barcode scanning, useful with: Allergy assistant on the mobile Dietary assistant on the mobile Mobile selfscanning Home scanning for shopping lists 2D-barcode scanning, the next wave in mobile devices. (We are open for really innovative ideas)
46 Conclusions Basics: Mobile technology does work (NFC, Bluetooth, SMS, GPRS, etc) Challenges: GPRS coverage is not always perfect in store (yet) GPRS subscriptions are not standard or cheap (yet) NFC phones are not common (yet) Opportunities: Customers love to use their mobile phone in store as long as: It adds value to them It is easy to use Customers also use their phones outside the store.
47 Thank you Foryourattention -
48 What s possible today? Stefan Magnusson, Managing Director, The Light Agency
49 Overview 1. Introduction to M BAR GO 2. Mobile marketing options and capabilities today 3. Introduction to SHOP SCAN SAVE 4. Effectiveness of mobile marketing 5. Case study 6. Challenges 7. Conclusion 49
50 How M BAR GO works 50
51 The current range of coupons SMS MMS WAP Here are your SHOP SCAN PayPoint offers available until 18/4/08 Your Sunday Times voucher her.wap.html Save 50p Carling Lager 2x500ml Save 15p Coca Cola Zero 500ml Save 50p Galaxy Minstrels Pouch 225g Save 25p Tetley Tea 40 s 51
52 Mobile links to other media and enhances consumer value 52
53 How SHOP SCAN SAVE works 53
54 What consumers see Here are your SHOP SCAN PayPoint offers available until 18/4/08 Save 50p Carling Lager 2x500ml Save 15p Coca Cola Zero 500ml Save 50p Galaxy Minstrels Pouch 225g Save 25p Tetley Tea 40 s 54
55 Mobile Loyalty Increases Sales and Margins 113% increase in basket spend 96% increase in items 55 SHOP SCAN SAVE members buy higher margin products and are therefore more profitable customers
56 [If u r 18 or over and would like to receive offers on beer, wine and spirits from SHOP SCAN SAVE@PayPoint, please reply OVER] Mobile increases customer engagement 23% POSITIVE response rate within SIX hours Further 3% following 18 hours, i.e. 26% within 24 hours Another 5% responded UNPROMPTED after offer went out [many thanks 4 dealing with my shop scan save so promptly! my store dealt my request.thanks again!!] [thankyou for txt back it is nice to know someone listens and does something about it i will use my barcode tommorow] [my niece is getting married tomorrow and she cant afford a big posh do. have you any offers to help make her day special] [Its my birthday tomorrow how about a free drink] 56
57 Mobile interaction affects behaviour In the final three months of our enterprise trial with Sainsbury 18% of the barcode scans DID NOT GENERATE ANY REDEMPTIONS 57
58 Quicker execution, more profitable results SHOP SCAN SAVE increased sales by an additional 190% The redemption rate for this offer passed 25% Total membership of SHOP SCAN SAVE increased by over 3% 58
59 Challenges 1. Customer understanding 2. Retailer Integration 3. Retailer training 4. Proposition development Same as for Loyalty cards, In-store screen media, online advertising etc 59
60 What clients like We recognise the positive impact that SHOP SCAN SAVE has had on specific promotions, for example Believe and PG Tips Helen Buck, Director of Brand Communication, SAINSBURY S Instant Personal Measurable Secure 60
61 Thank you! 61
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