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How digital (especially mobile coupons ) will be distributed and redeemed at the POS (virtual and physical POS). Rome , 6th October 2014 - Ercan Kilic, GS1 Germany. GS1 Germany MobileCom project – focuses on. Why is GS1 Germany active in Mobile Commerce?.
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How digital (especially mobile coupons) will bedistributed and redeemed at the POS (virtual andphysical POS) Rome, 6th October 2014 - Ercan Kilic, GS1 Germany
Why is GS1 Germany active in Mobile Commerce? • GS1 has observed a world wide development of payment methods – they become increasingly contactless. • The way in which customers pay for goods, redeem coupons, collect points, etc. change dramatically and more rapidly. • These changes in customerbehaviorhave an enormousimpact on thebusinessmodelsofourclientsand also in theirinvestments in technology • GS1 Germany assumestheresponsibilitytooffersolutionsthatenableitsclientstobenefitfromthe potential resultingfromthesechanges.
GS1 is not active in thepaymenteco-system • … but whenitcomesto Mobile Walletsthen GS1 standards will bepartofthe different POS scenariosandnewprocesses Banks MNOs Acquirer TSM IAPs Payment Networks
Yesterday: Payment was manageableand easy tounderstand Real World physical POS Cash ILLUSTRATIION Debit Card Direct DebitCredit Card • Products via Banks • Manageableproductportfolio • Distinctionbetweenpayment at POS and Online – veryclear Virtual WorldE-Commerce Credit Cards Bank transfer Debit entry Online Banking(Vorauskasse, Rechnung) Lastschrift
Convergenceof PaymentThe Wallet Hype ILLUSTRATION Real Worldphysical POS Cash 1 mWallets Debit Card Direct DebitCredit Card 2 eWallets Virtual World E-Commerce Credit Cards Bank transfer Debit entry Online Banking(Vorauskasse, Rechnung) Bank transfer
Mobile Wallet • OTTs, Internet Giants, Banks, MNOs, HandsetManufacturers, Retailerswanttoprovide Mobile Walletsbyofferingvalue-addservicestocustomers Source: Vodafone
Mobile Wallet –the Google Wallet • Itiscomplextosetup, maintain, enrichanddrivebroadacceptanceof mobile wallets! Abbildungen: Google.com
Apple Pay - a late start to the market but with an innovative set-up Factsheet: • Integrated into Apple Passbook on IOS 8 • Cards already stored in Itunes can be used • Alternatively cards can be added by taking a photo • Supports NFC-based POS payments and one-click payments in apps and online stores • Authorization of transactions via fingerprint sensor • No credit card data is forwarded to the merchant, no transaction records are kept by Apple • Launches first in the US in October 2014 • Will support the Apple watch after launch in 2015
The impactof Apple PayThe break-through will comewith Apple Pay The market for mobile payment will benefit in general • Apple Pay will clearly raise the awareness forcontactless payments worldwide • Customer demand will be driven by Apple Pay(contactless payments might become cool) • Apple unlocks the access to a well-funded groupof customer with affinity to new technologies • Apple Pay’s one-click-payment feature for apps and online stores will open up a severe battle between Apple and e-wallet providers like Paypal
What`sthestrategyofretailers in US • A Network ofAmerica`sfavoritemerchants
ISIS-Wallet - Credit Cards, Loyalty Cards, Coupons, Deals & Offers
14. Mai 2014 Isis hits 20,000 daily wallet activations – per day • 20.000 ISIS-Wallet dailyactivations • 68 NFC-Smartphones supporttheWallet acrossthreeoperators • Preloaded on 14 Smartphones • Over 270.000 redeemed Coupons at Jamba Juice in Q1. 2014
Mobile Wallet contains different Services Mobile Wallet Debit CARD EC Card (national Debit) • Digital Receipts • RefundReceipts • Productinformation • Interaction with Smart-Shelfs, Smart-Posters • …. Credit CARD Coupon Loyalty Retailer CARD (Payment, Coupon, Loyalty) New services will comeupsoon - challengesforstandardisation
camera NFC POS Interaction – Increaseoftechnologiesandinterfaces at theretailer´s POS BLE QR Code IFR W-LAN SMS NFC-Terminal Laser Scanner cash register - till Technologies / Interfaces • 1D / 2D Barcodes • Laserscanner • Photoscanner • Beacon / BLE • Bluetooth • RFID • NFC-Terminal • NFC-Reader separat • etc. Photo Scanner NFC-Reader BLE Beacon QR Code Display NFC - reversevendingmachine Retailersareuncertainand not willingtomake large investments at thePOS!
Confusion in today’s Digital Coupon Landscape Brands Retailers Consumers • Howtosetup a successfulcouponingstrategy? • Whichdistributionchannelshouldweuse – wap, App, SMS, orothers? • Howtosetupcross-retailercampaigns? • Isthere a simple (self-service) toolthatfeaturesperformancemeasurementand real-time campaignmanagement? • What do consumersexpect? • Whichtechnologiesandinterfacesexistandwhichonesare relevant forus? • Whatdoesthatmeanformyinvestment in digital infrastructure at the POS? • Threat: otherplayers such asCashbackCouponingproviders • Yes, I wantcoupons - but wherecan I redeemthemandhow? • Whichretailerssupportthiscouponcampaign? • I do not wanttodownloadseveralcouponapps! Couponinghastobe simple!
Mobile CouponingLandscape Mobile distributionchannels SpecializedAgencies Lead Agency Media Agency Processes Retailers Brands / couponissuers Clearing Houses
Areas oftension in Mobile Couponing • Prerequisiteforthebroadacceptanceof Mobile Couponing: Efficientprocessesalongthelinefromdistributiontoredemption! Coupon distribution Coupon redemption
Areas oftension in Mobile Couponing Distribution: Not critical 1 2 Receivecoupon Redeemcoupon Challenge: Redemption at POS present scan NFC BLE
Coupon distribution Coupon Issuer Efficientcoupondistributionacrossseveraldistributionchannelsis limited today! KitKat Brand App Consumer
Mobile AdvertisingCampaign 1.0 • No tracking possible – hoping for awareness! End ofcampaign! 100.000 Ad Impressions 10.000 Visits bannerplacement Consumer till 10.000 clicks CTR = 10% Measurement ???
The Challenge - howtoredeem mobile coupons at thetill Frontend: POS / till: NFC-Terminal camera Laser Scanner cash register - till NFC 0,50€ Photo Scanner BLE Technology – Smartphone QR Code NFC-Reader • 1D / 2D Barcodes • Laserscanner • Photoscanner • Beacon / BLE • Bluetooth • RFID • NFC-Terminal • NFC-Reader separat • etc. IFR BLE Beacon W-LAN SMS QR Code Display 0,50€ günstiger!
Mobile Advertising 2.0 - CXP solvesthemeasurementissue • CXP enablesmeasurementalongthewholecouponcycle! Distribution: 100.000 Coupons 10.000 Visits 100.000 Ad Impressions 1.000 redemptions at till Banner placement CXP till Konsument 10.000 clicks Detailedreports CTR = 10% 5.000 clicks Till integration Coupon isactivated 0,50€ off ! Measutrement = Redemption Rate, e.g. 1% Performance Marketing! 0,50€ off ! 0,50€ off !
Problem: lack ofstandardsleadstoincompatibilityandlessefficiency! POS: Processing of digital couponsthroughthe backend oftheretailer Clearing today 1 Industry / Coupon-Issuer till Clearinghaus 3 Clearinghaus 1 Clearinghaus 2 Inter-Clearing 2 Clearing 2 till till till Clearing 3 3 1 4 Weaddressthischallenge in ourworkinggroups!
StandardizedcommunicationbetweenretailersandandcouponserviceprovidersStandardizedcommunicationbetweenretailersandandcouponserviceproviders Standardizedcommunicationcommunikationleadstocompatibilityandoptimizedefficiency TOMORROW? till till Coupon issuer Clearing till till till till Clearinghaus 2 Clearinghaus 1 Clearinghaus 3 Standardizedcommunicationbased on EPCIS Clearing Clearing Bilderquelle: Google
GLN GTIN GSRN GCN SGCN GS1 standardsanddataarchitectures in the Coupon-Cycle Global Location Number: A unique identifier that refers to a specific location. A location could be an organisation, warehouse, retailer, platform or role. Global Trade Item Number: A unique code, belonging to a specific organisaiton, that identifies a product at a packaging level. Global Service relationship Number: A unique code relating to a relationship with a specific consumer. For example identifying a unique consumer. Global Coupon Number: An identifier relating to a specific coupon and its use, business rules and creative. The GCN holds the generic information about that coupon (or series of coupons) Serialised Global Coupon Number: This is a single, unique, instance of a GCN.
Mobile Payment Pilot is based on NFC and Mobile Wallet • Mobile Payment Pilot based on NFC und Mobile Wallet • Cross MNO and Cross Retailer model NFC-City BERLIN
Vision of “NFC City Berlin“ • The goal of “NFC City Berlin“ is to set up a lighthouse project that establishes the “Eco System“ of Mobile Payment. • A critical mass and an impulse for NFC will be achieved by joining forces at the issuance side and at the point of acceptance. • The Mobile Payment project will be established first at main market participants. Subsequently, the project will be extended by more participants and use cases. • That includes harmonization of different services and transaction types such as couponing and ticketing but also parking, carsharing, access via NFC. • The constant use of NFC services increases customer acceptance to use smartphones not only in retail but also in other services and Scenarios (different use cases). • “NFC City Berlin“ considers basically: • Customer acceptance • Technical interaction • Business models “NFC City Berlin“ is the first step towards an overall contactless communication and transaction at the physical POS.
Customers • Acceptance • Usage • Behavior Ecosystem & partner models • Development and testing of business models Technique & processes • Complexity and functionalities of wallet & cash systems • Processes & interaction Goal of NFC City Berlin • “NCF City Berlin“ delivers important insights about the interplay of the different parties and components: • Customers • Technique & processes • Eco system & partner models • That enables the participating companies to position themselves strategically early in the Mobile Payment field. • On this basis, all parties are able to refine their products and services. The participation in the development and in the implementation of a contactless payment infrastructure enables all parties to proactively form a strategic positioning within the ecosystem.
Key objectives of the NFC City Project • Support creating a partnermodelbetweenthekeystakholders • Building a sustainableeco-system together • Figuring out the ideal Mobile Payment Solution • Testingthesoultion(s) - User Experience / Design • Optimizingtheprocessesbetweenthe Stakeholders andespecially • Consumer/Smartphone and Terminal/Cashiersystem / tilloftheRetailer • Generating insightsconcerningthecustomeracceptance • Measuringtransactions • Generating Reportingsconcerningperformanceandhuserbehavior • Genarateinsightsfor all stakeholder - also forvalueaddedserviceproviders • Couponing • Loyalty • Advertising andothers • Buildfocusgroupstoundestandcustomersneeds – surveys in stores etc. • Preparing roll-outs • Developingandprovidingbestpractisesandrecommendationsforthecommunity • Definingstandards
Contact GS1 Germany GmbH Ercan Kilic Head of Mobile Commerce GS1 Germany GmbH Maarweg 133 50825 Köln Tel: 0221-94714-218 Mobile: 0171-561 44 84 Fax: 0221-94714-7218 E-Mail: kilic@gs1-germany.de