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How Mobile Operators are enabling digital coupons

How Mobile Operators are enabling digital coupons. Paul Crutchley Strategic Engagement Director - GSMA. GS1 & GSMA. A great match. Not for profit, member controlled, for more than 40 years. 111 national organisations …. 2,000 staff. … 150 countries served.

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How Mobile Operators are enabling digital coupons

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  1. How Mobile Operators are enabling digital coupons Paul Crutchley Strategic Engagement Director - GSMA

  2. GS1 & GSMA. A great match Not for profit, member controlled, for more than 40 years 111national organisations… 2,000 staff …150countries served Close to 2,000,000member companies 25 different industries

  3. 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. Combine eyes with feet Increase footfall Build affinity over time High Street/ Shopping Centre Store Purchase Affinity Targeting Customer Targeting Customer Targeting Customer Targeting Customer 5000 people 500 people 200 people 100 people Increase with strategic engagement Know Your Customer

  4. 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 Purchase + Couponing / Loyalty Time Sensitive

  5. 2013 / 2014 progress of the retail work • 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.

  6. GSMA’s target markets: collaboration & interoperability Norway’s mobile operators are now planning for a 2015 launch of couponing and loyalty Orange in France have launched b2b retail services with a collaborative plan across the country Germany’s mobile operators are collaborating on interoperability for mobile couponing and loyalty Italy has collaboration between all mobile operators (as we see here today) In the US Softcard launched couponing and loyalty services cross mobile operators, 80 handsets available and 30M sales in 2014 (5M app downloads) China is seeing all 3 operators and regional operators commit towards retail implementations in 2014 / 15 Canada’s Enstream have a collaborative project supporting payment as well as couponing and loyalty Global reach Promoting innovation, interoperability, collaboration & standardisation

  7. This joint opportunity was not to be missed. GSMA • Mobile commerce in Retail • Mobile Loyalty & Couponing • Tech Specification Coupon and loyalty • A well engaged and researched retail ecosystem • A desire from the mobile industry to bring couponing to life GS1 • Digital Coupon specification • Technical Specifications • Event Database Standards • The Business Vocabulary associated with events in the event database • An Open Source version of the event database (EPCIS) • Joint GSMA / GS1 project – • Provide recommendations for enabling the mass distribution and acceptance of digital coupons • Give guidance to the ecosystem, brand and merchant

  8. 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

  9. 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 Merge Merchants & Brandsopen loop couponing solution Merchant open loop couponing solution

  10. Prior to discussing Acceptance and Distribution Assumptions Technical capabilities (applets etc) Open coupon format Transfer mechanisms (NFC/BLE etc) Can create a coupon Understand ecosystem Objectives: Create and agree a common way of thinking Identify new areas within ecosystem Discuss and determine ideal digital mass distribution process Understand retailer distribution to settlement ecosystem Determine customer journey

  11. Next - Making couponing and loyalty mass market COUPON DATA POOLS COUPON EVENT REPOSITORY Key: Distribution SETTLEMENT Acceptance OFFER ISSUER Redemption OFFER/ COUPON DISTRIBUTORS OFFER VALIDATOR CAMPAIGN MGT & REPORTING RETAIL ECOMMERCE &/ STORE POS CONSUMER MOBILE

  12. Data modelling exercise as part of the development Event Repository Validator Store Data Pool Offer Issuer Settlement SGCN GCN GTIN SGCN Parameters GTIN GLN Merchant GLN Merchant GTIN GLN Settlement GLN Merchant GLN Distributor GLN Event GLN Event GLN Validator Creative Parameters GCN GSRN Parameters Distributor SGCN (burn) Consumer Campaign Manager / Agency GLN Settlement SGCN GLN Merchant GLN Merchant GLN Distributor GCN (range 1) GSRN GCN (range 2) GLN Validator Creative GLN GSRN Creative GCN SGCN (burn) SGCN (burn) SGCN SGCN Parameters

  13. Coupon Event Repository What’s next - What Needs To Be Built Coupon Datapool 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 amarketplaceof 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 Campaign Management Marketplace

  14. This process with mobile can deliver these benefits • Wide distribution of couponsthrough multiple and NEW channels • Targetingand controlled distribution • Distribute coupons acrossmultiple retailers • Unique codes reducing fraud and identifying consumers that engage • Fast and easy consumer experience • Live view ofcampaign effectiveness from distribution through to redemption • Fast settlement

  15. Our Next Steps • Completereview 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

  16. 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 • Developconsistent case studies for interoperability in the ‘in-store shopper journey’ • Support go-to-marketactivities between mobile operators & merchant ecosystems in selected markets

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