mobile hits the bottom line- mcommerce (process & payments)

Mobile Marketing Association

PATRICK J. MOORHEADVP - MobileCatalina Marketing

© 2012 Catalina Confidential

Addiction Symptoms

Would choose daily use of mobile phone over daily use of ___________, if forced to choose. Alcohol 70%Chocolate 63%Caffeine 55%Exercise 54%Sex 33%Toothbrush 22%Shoes 21%

Telenav Mobile Behavior Study, July 2011

http://www.telenav.com/about/pr-summer-travel/report-20110803.html


We’re addicted to now.

Humans are pretty good at long range planning, but when it comes closer to now, we become increasingly irrational in decision making. The phone is an easy solution, converting me into “the blue dot” thus organizing the digital world around me, instantly.


Wall Street Journal – How Future Self Impacts Saving

95%Of Smartphone users actively use local search.

88% Take Action Within The Same Day.

(Source: Think Mobile w/ Google)

http://online.wsj.com/video/for-young-the-shock-of-old-age-spurs-saving/377BA053-2E0C-4176-8A07-406B75BA65C2.html


We’re crazy about missions.

Coffee Bay noticed a 78% redemption rate on their promotional punch cards when they handed out cards with “two free” punches started on them, versus un-punched.

Mobile phone is the ultimate mission device.

Quick Decision – Instant Delivery

(Source: iconoculture)


mCommerce Makes the Most of Her Time and Budget

CONVIENCE TIME SAVING MONEY SAVING

“It's so quick! Instead of placing items in my cart, then taking them out of the cart and putting them on the conveyer belt at the register, then (often) bagging them myself...hauling them to the car, then bringing them in my home and AGAIN taking them out of the bags. SO MUCH EASIER!”

“It makes grocery shopping fun! Saves time and energy. It also factors in coupons and savings automatically.”

“I can walk right into the store and start shopping.”


“ ”

“ ”

“ ”

Mobile Technologies Foster Opportunities to Engage Across a Spectrum of Users…

9

Sarah | The SaverHayden | Household of 1 Thea | 30’s with Kids

Coupons are money! I love

checking my offers tab to see

what is available for me to buy. I

particularly like it when new

offers come up as I shop. It’s a

thrill especially if I can use the

item right away.”

I’m a savvy shopper; not a

‘coupon clipper’ but if there’s an

opportunity for me to save some

money, I’ll take it. It just can’t be

complicated and don’t slow me

down. I like to control my apps

though personalization settings

so I’m not interrupted by

notifications.

I’m not afraid of technology, but I

don’t have time to fuss with it

either. I’m a busy mom, wife,

employee and blogger. Apps and

mobile tools have to be quick,

easy and fun for me and my

husband to use interchangeably. I

share all my experiences with my

social network – especially if the

experience provides us value.

11% < 30 yrs old | 20% Single | 20% $50-75K Income 25% 30-39 yrs old | 3+ in HH| 29% $100-150K Income 30% 40-49 yrs old | 70% Married | 41% Completed College


Why Shopper Adopt mCommerce

10

Source: Scanit! Mobile Satisfaction Research, Dec 2012; Catalina Marketing Analysis, n=759


Offer Content is a key Driver of Satisfaction and Usage

11

Source: Scanit! Mobile Satisfaction Research, Dec 2012; Catalina Marketing Analysis, n=759

67% of overall users are highly satisfied with the mCommerce shopping experience


Mobile Coupons – Growing!

13


Nobody Wants to Pay Full Price


The Year of Mobile for CPG

18

“Mobile is growing at unprecedented levels and consumers are more and more comfortable engaging with their favorite brands via their mobile devices. To address these [technology] forces, our vision is to build our brands through lifelong, one-to-one relationships in real time with every person in the world…”

Marc Pritchard, global marketing and brand building officer of P&G


The Gap, and the Opportunity

Right message, Right audience, Right time

In Store

M-CommerceIn Store Checkout

Online

Mobilecouponnetwork.com/.FR/.J

PBuyerVision

Digital L2C

On the Go

MobileBuyerVisionMobile

Digital L2CC• wallet

Vision: Catalina unleashes the potential to know, engage and empower the consumers of the world


Smartphone as shopping tool.Leverage the device shoppers already carry with them.


Mobile Scan + Bag.Shoppers scan items into their mobile basket, and add them to their physical basket.


Personalized mobile offers.Transactional and Historical targeting influences behavior at the shelf, in the buying moment.


Fully Integrated.App is connected to POS, CRM, in-store fixtures, and loyalty club.


Next Level ConvenienceExpress checkout shaves time off the store trip, and makes coupon redemption seamless.


This is OUR lab…


We have 350 of them…and growing

27


mCommerce Shoppers Shop More and Spend More…

28

Analysis Period: 52 weeks period ranging from 06/05/2011 to 06/03/2012 among active store shoppers who satisfy static definition

mCommerce Shoppers

Non- mCommerceShoppers

Store Trips Basket Size

+ 43%+ 41%


Redemption Rate

Overall0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

11.8%

5.5%

mCommerce v Printer Avg Redemption Rate

mCommerce Avg Redemption Rate Printer Avg Redemption Rate

3.3 impressions per mobile ID = 1 impression per printer IDData reflects historical offers only

all results are from mobile product model that exists in Ahold today; model may change in the future


Overall0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

17.1%

9.4%

mCommerce v Printer Avg % Model Sales Lift

mCommerce Avg % Model Sales Lift Printer Avg % Model Sales Lift

Sales Lift


3.3 impressions per mobile ID = 1 impression per printer IDBased on 2 historical offers – non-trial


Acquire Offer Strategies Drive Sales Lift

Acquire Maximize Overall0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

38.9%

20.3%

26.5%

11.7%

7.1%9.4%

mCommerce v Printer Channel Avg % Sales Lift by Offer Strategy

mCommerce % Model Sales Lift Printer % Model Sales Lift



mCommerce Connects with High Value Shoppers at the Category Level

mCommerce Shoppers Non-mCommerce Shoppers

Cracker Category Cookie Category-0.5

2.0

4.5

7.0

9.5

12.010.3

9.2

6.2 5.8

Cracker Category Cookie Category $-

$20

$40

$60

$80

$57.72 $50.95

$32.62 $30.11

Category Trips Category Sales

Shopper Comparison: mCommerce v. non-mCommerce



Spikes observed in # of consumers, # of trips, and sales for the promoted products for the week when equity message were run among consumers who received those messages

Analysis Period: From 10/25/2012-1/31/2013

25Oct2

012

29Oct2

012

02Nov

2012

06Nov

2012

10Nov

2012

14Nov

2012

18Nov

2012

22Nov

2012

26Nov

2012

30Nov

2012

04Dec

2012

08Dec

2012

12Dec

2012

16Dec

2012

20Dec

2012

24Dec

2012

28Dec

2012

01Ja

n201

3

05Ja

n201

3

09Ja

n201

3

13Ja

n201

3

17Ja

n201

3

21Ja

n201

3

25Ja

n201

3

29Ja

n201

30

20

40

60

80

0

10

20

30

40

50

60

70

80

90

100

Weekly # of IDs and Trips Who Shopped 20oz Single Serve Among Consumers Who Received Equity Message

IDs - Front of the Store Message IDs - Back of the Store Message Trips - Front of the Store Message Trips- Back of the Store Message

IDs Trips


25Oct2

012

28Oct2

012

31Oct2

012

03Nov

2012

06Nov

2012

09Nov

2012

12Nov

2012

15Nov

2012

18Nov

2012

21Nov

2012

24Nov

2012

27Nov

2012

30Nov

2012

03Dec

2012

06Dec

2012

09Dec

2012

12Dec

2012

15Dec

2012

18Dec

2012

21Dec

2012

24Dec

2012

27Dec

2012

30Dec

2012

02Ja

n201

3

05Ja

n201

3

08Ja

n201

3

11Ja

n201

3

14Ja

n201

3

17Ja

n201

3

20Ja

n201

3

23Ja

n201

3

26Ja

n201

3

29Ja

n201

30

40

80

120

160

200

0

50

100

150

200

250

Weekly # of IDs and Trips Who Shopped Portfolio Among Consumers Who Received Equity Message

IDs - Front of the Store Message IDs - Back of the Store Message Trips - Front of the Store Message Trips- Back of the Store Message

IDs Trips

Spikes also observed in # of consumers, trips, and sales for the entire portfolio when equity message were run

Analysis Period: From 10/25/2012-1/31/2013


Mobile is the Right Now, Mission Completion Device

35


Consumers Don’t Want To Pay Full Price.

36


Smartphones are the “find-me-a-deal-right-now”

tool of choice.

37


Consumers Want Convenience, Control andTime and Money Savings

From Their Mobile Phones.


Solutions That Pay Off On Consumer Need States

Drive Significant Business Performance.

© 2012 Catalina Confidential© 2012 Catalina Confidential

THANK YOU!

Patrick J MoorheadVP – Mobile Brand DevelopmentTwitter - @chimediaguy

mobile hits the bottom line- mcommerce (process & payments)

Technology