Mobile couponing, loyalty and CRM

IntroductionJanuary 2009

Founded in 1999• AIM listed

• Profitable and debt free

• Double digit growth since listing

Offering• Convergent mobile comms

• Mobile enabling technology

About 2ergo

Headquarters Media City Manchester UK 6 Worldwide offices: UK, US, Australia, India and LatAm

50+ global customers and brands across the world

Entertainment and Media

Mobile Business Solutions

Mobile Marketing

Get closer to your customers

• Mobile brings you closer to your customers

• 97% of text messages are opened immediately

• Over 3 billion iphone app downloads to date!

• Mobile internet usage is going through explosive growth

• More text and picture messages sent each day than google searches

• By 2014 mobile with account for 25% of marketing budgets

• 580% growth in Mobile Marketing & CRM next 5 years

About 2ergo - Value PropositionLeading global provider of mobile enabling technology focusing on mobile marketing, mobile customer relationship management (CRM) and entertainment solutions.

• Mobile campaigns• Mobile internet sites• Promotions / tickets• Campaign analysis

Marketing

• Customer communications• Mobile customer service• Mobile market research• Secure messaging

Business Solutions

• Mobilise media content• Interactive applications• Content adaption• mBilling and PayforIt

Entertainment & Media

Challenge for the retailers …ChallengesChallenges OpportunitiesOpportunities

Difficult to drive customers to the stores• with economic concerns customers are tightening their belt and spending selectively at retail stores• customers are looking for value to trigger purchase decisions

• Mobile medium offers a proven medium to drive customers directly to the retail stores through promotions delivered to the mobile

Hard to engage target customers• Targeting younger audiences is a challenge as traditional mediums are failing to engage customers• Younger audiences are spending increasing amount of time on Internet and mobile

• Mobile marketing allows brands to reach and engage customers in a meaningful way through SMS, mobile internet, content on mobile, location based services,

Marketing offers limited ROI• Media costs are high through traditional mediums like TV, print & outdoor•Direct marketing offers the most targeted opportunity to communicate & influence customers • Limited data collected or analysed for future CRM activities

• With mobile, a brand can create one-to-one marketing

Secondary

Proposition & Benefits

• Mobile Strategy, Mobile marketing, CRM & Couponing to drive footfall to stores• Build database for on-going CRM

campaigns• Sign up customers onto loyalty

programs and collect points via mobile

• Deliver coupon, gift cards and rewards directly on mobile

• Redeem offers securely and collect data

• Integrate loyalty card to a mobile number to make loyalty card an interactive card

• Follow up CRM to target future offers

Proposition Benefits

• Gain access new audience, typically hard to reach younger audience

• Promote and communicate offers instantaneously reducing the direct mail costs

• Drive increased footfalls during low periods of the day or week through targetted CRM messages

• Increase transaction values with coupons, and gift vouchers

• Build and utilize a database of customer interactions for on-going CRM

VoucherNet™: How does it work

Brands engage customers through online, mobile, IVR, social media and other media touchpoints

Real time and secure

coupon validation Data Capture and

stored for reconciliation

Discount reconciliation

3bRAPOS™Server

Mobile coupon number entered in the box office till or scanned directly off the handset

Run targeted outbound CRM campaigns

Receive a barcode and/or unique PIN based mobile coupon

1 2 4

OR

3a

Orange Wednesdays – mCouponing

Challenge:• Differentiate Orange brand• Reduce Orange Churn • Increase cinema sales

Solution:• Promotion: 2-for-1 cinema tickets on Wednesday• Customer receive 2-4-1 unique text ticket codes on the mobile • Text-code is redeemed through a wireless redemption device at

the cinema• Advertising Method: Bill Inserts, London Tube posters, outdoor

media, targeted film magazines, national press, radio and online , National TV

Results:• 2.5% reduction in churn (£60m/year)• Wednesday now second highest day after Saturday• Over 400,000 coupons redeemed per month across a base of 10

million customers• Orange Wednesdays has a strong brand recall and has been

extended into other promotions

“Arguably one of the biggest marketing buzzes of the past 12 months was created by telecoms provider Orange, with its ground-breaking Orange Wednesdays campaign” Media Week

Loyalty Club: Opportunities for data collection and Targeting

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Example outbound CRM Campaigns

Example outbound CRM CampaignsData Collected and Analysed

1. Ticket Purchase Date/Time

2. Ticket Purchase frequency

3. Movie Selection

4. Cinema Selected

5. Movie Selection Profile

6. Conversion Ratios

7. Social Recommendations

1. Customer Demographics

2. Email & Mobile Details

3. Customer Segmentation: Frequency based, Genre Based, Cinema location based

Thank you note with film recommendation based on the film seen previous week

Outbound messages to promote film releases to relevant segments

Specific campaigns to low frequency customers to drive footfall

Follow up reminders at specific times of the day to match customer behaviour

Promote local cinemas to drive traffic

Case Study: Increase Repeat Sales

Challenge:• Drive repeat sales from infrequent customers• Identify which promotions are working best• Reduce the lead time to set up campaigns, test and iterate

Solution:• Customers in the DB that had not visited BB received a coupon

on the phone• Different offers tested: : 2-for-1 offers, 50% discount, money off

rental• Promotion: 2-for-1 cinema tickets on Wednesday• Customer receive 2-4-1 unique text ticket codes on the mobile • Text-code is redeemed through a wireless redemption device at

the cinema

Results:• Average 5% redemption rate• 10% for 2-for-1 offer• Able to successfully drive traffic for a low traffic day of the week