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Digital Coupons “How and Why”Bill CataniaCEO, M-Dot Network

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Questions You’ve Probably Asked

? Is it safe, secure?

What about store brand/private label offers?

How do shoppers redeem?How do we get paid?

What about my print at home coupons?

What about our loyalty program?How long will it take to integrate?

Where does Mobile fit in?

What is our return?

How and where do we get the coupon content?

Who manages this?

Can this work with social media?

WHAT DON’T I KNOW….?

What is my wholesaler doing?

How does this work with our website?

Is it real time?

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Digital Coupons…. The Past 10 Years

Historically, No Clear Direction

Poor Manufacturer acceptance

RESULT: Lack of offers

Poor Shopper adoption

RESULT: Lack of program usage

RESULT: Lack of coupon offers

Impassable Technology gaps

RESULT: Lengthily integration cycles

RESULT: Bad user experience

Retailers have often asked the question: How do I get value?

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The WHY

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Moms Turn to the Internet

“When asked about how they use technology, Moms said that the different devices they use make being a Mom easier.  The devices help them get more done, manage their life and their family's lives more effectively, and stay better connected with family and friends.”  

According to the study, Moms use the following technology and devices:

Computer (89%)Internet (87%)Mobile Device (84%)Television (80%)Digital Camera (77%)CD/DVD Player (75%)Social Networks (55%)

Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.  The study was conducted in two phases: consumer immersion blogs and online quantitative study.  In Phase One, nine moms interacted in an online, secure blogging environment by uploading images, video and text for one week.   In Phase Two, an online quantitative study was conducted with a sample of 3,300 females, ages 21-54, who were either currently pregnant or had one child in their household between the ages of 0-14 years.

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Moms are Looking for Deals

Moms Turn to the Internet First for Information:

“For subjects other than their child's health, Moms turn to the Internet as their primary source of information:”

71%  go online to find deals or discounts71%  to find recipes62%  for family activities, entertainment and travel59%  for personal health questions56%  to find arts/crafts projects54%  for holiday planning and activities50%  to find dieting information49%  for beauty/style46%  to seek answers for financial questions42%  for parenting advice41%  to answer questions on baby/pregnancy

Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.

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Target: Mom

Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.

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Target: Mom

Disney Online's M.O.M. – Mom on a Mission study was conducted in June 2010 by Ipsos OTX MediaCT, with the objective of gaining insights to understand today's Mom, her roles, and how technology and the Internet affect her life.

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Mom’s Are Armed with Smart Phones

According the report, research shows that in Q2 of 2010, 32% of mothers owned a smartphone. That figure represents a 60% increase from Q2 2009.  And, of those mothers with smartphones, 32% indicated that they visit mobile-optimized Internet sites once per week. That also represents a 60% increase from the same period in 2009. 

Scorecard for Mobile Advertising Reach and Targeting (S.M.A.R.T.) report, a monthly snapshot of the mobile advertising universe issued by Millennial Media and based on data collected from the company’s third-party U.S. mobile advertising network.

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The WHY

Provide your shoppers with more ways to save

Attract new shoppers that want to use coupons but won’t use paper!

Deliver targeted digital offers to your shoppers with no delay or wait time

Receive redemption data and usage as it happens

ACT on your data for the purpose of driving:- Increased trip frequency- Increased basket size- Incremental revenue during targeted day parts- Increased profit and margin mix

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The HOW

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Shopper View: How it Works

Shoppers Register via Internet at Retailer website or via Mobile enrollment via Retailer application

Coupons are Loaded to the Shopper’s e-Wallet (Card or Phone Number)

Coupons are Redeemed at POS by entering swiping Shopper Card or entering Phone Number

Redemption data is sent to your clearinghouse for Reimbursement

OR 555-555-5555

Retailer and brands receive Analytics/Data in real-time

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The Ecosystem: 3 Key Categories

Coupon Issuers

Coupon Clearinghouses

Point of Sale Companies

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The Ecosystem: Coupon Issuers

Who Are They?- Major media properties- Mobile phone applications

What do they want?- Coupons to be displayed and clicked on from your retailer website- Coupons to be clipped on THEIR websites, redeemed at your store

What’s in it for them?- They earn revenue when shoppers click on offers- Paper “FSI” business will not last forever, they know it

What’s in it for you?- Your shoppers want deals and these companies have them- You earn revenue from “clicks”- More digital offers = Less paper offers, counting, fraud, etc.

How do they integrate?- With your website company or selected coupon processor

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The Ecosystem: Coupon Clearinghouses

Who Are They?- Traditional “paper” clearinghouses

What do they want/do?- To proactively adapt to the digital coupon era- To have your “whole” coupon business, not just paper- They provide credible audit and reimbursement for your digital coupons

What’s in it for them?- They earn revenue when coupons are redeemed- They maintain market share in a digital world

What in it for you?- You can count on getting paid for redeemed digital coupons- You can trust that a 3rd party is auditing your redemption records

How do they integrate?- With you directly or your selected coupon processor

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The Ecosystem: POS Companies

Who Are They?- Developers of Point of Sale software

What do they want/do?- To support innovation and retailer desired capabilities- Drive innovation through current POS updates- Gain “utility” – one box with many “widgets”

What’s in it for them?- To produce the best, most effective, POS solution on the market

What in it for you?- Seamless integration = speed to market and reliability- Leverage your investment to get more utility from the same system

How do they integrate?- Selected digital coupons processors have integrated directly with the POS- POS integration is deeper than loyalty card integration = more functionality

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Evolution of Digital Coupons

Phone Analogy

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Home phones Paper coupons

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Evolution of Digital Coupons

Phone Analogy

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Mobile v1.0 Digital Coupons v1.0

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Evolution of Digital Coupons

Phone Analogy

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Smart Phones Digital Coupon v2.0

SaaS Platform

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First Generation eCoupons

eCoupons 1.0- Print @ Home

- CRM Integration

Challenges- Fraud- No loyalty data

- Limited rules- Expensive integration- Brand erosion- Limited inventory- Sync Issues

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Next Generation eCoupons

eCoupons 2.0- POS Integration

Unmatched Features- Unlimited rules- Simple integration- Preserve brand- Aggregated inventory- Real time- Social media triggering

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Who is M-Dot?

Retail tech experts

50+ years of engineering and development at Catalina Marketing

Relevant experience at M-Dot: YOUtech, ICL, ACR, NCR, Fujitsu, IBM, SAP, AT&T

Extreme transaction processing

Built and managed the 5th largest private database in the world

Cumulative experience supporting 36,000 retail stores

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Application“Dynamic”

Network Transaction

“Configurable”

Point of Sale

“VERY Stable”

• Coupon issuers (RedPlum, SmartSource, etc.)

• Dynamic layer – API integration• Open framework for approved applications• ANY Mobile & Internet Applications• Retailer built APPS, Customnization

• Offer Reconciliation/Redemption• Retail Tech standards• Security & Compliance• Configurable business rules

• Supported by Retalix• One-time integration• Base code

M-Dot Network: Structure & Function

[apps integrate here]

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POS Integration

• Built and supported by Retalix- ISS45 V8 - Storeline

• Available to retailers after latest POS update

• Configured by retailer or POS dealer

• NO SERVER, NO HARDWARE, NO WIRES!!!

• One-day POS integration (Simple, Easy and Fast)

• Lab test in less than one hour

• Back versions (ISS45 v7, Scanmaster – available as well)

• M-Dot also supports IBM ACE and SA

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M-Dot’s Partnerships

Content Issuers ClearinghousesPOS Vendors Technology

90% of Unique Digital Coupons

Integration with 80% of Grocery POS Systems

100% of Coupon Clearinghouses

Consumer Education, Enrollment- Program branding (IGA + coupon brand)- Program registration- Mobile & Email opt-in- Customized IGA Video - Program FAQ/Education- Login, Logout, Administer account

Coupon Content Frame- All coupon offers are aggregated- Sort/search by category- Send offers to Facebook, Twitter- Click > Load to eWallet

Web Frame

Customized Mobile Coupon Program- Wide availability

a. Mobile web (8,000+ device types)b. Specialized Android appc. Specialized iPhone app

- Program branding (IGA + coupon brand)- Program registration “in app”- Same coupons as found on IGA website- Click/Touch > Load to eWallet- Further customization after launch

a. Shopping list managerb. Recipesc. Store finderd. iPro Loyalty Points/Rewards reportinge. Delivery of targeted offersf. Location-based offer targeting

Mobile

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Consumer Engagement (In-Store and Online)

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Consumer Engagement (In-Store and Online)

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On-Site Registration/Enrollment Materials

• Staffed by M-Dot and or Retailer

• Shoppers enroll on the spot

• Can use coupons during current trip if they register on their way in

• Education/Reinforcement

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Analytics and Business Intelligence: ONE VIEW

ONE SHOPPER VIEWAdvanced Analytics and Business

Intelligence

eMarketing

Loyalty

Digital Coupon

One View to all Analytics

• Loyalty• eCoupons• eMarketing

- Email- Mobile- Social Media

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Summary

Enable your shoppers to interact with technology – They want to

Digital coupons are now achieving scale because MOM wants it to

Provide your shoppers with MORE ways to $ave

Unify your digital marketing programs (email, mobile, digital coupon, loyalty)

The “Final Mile” has been paved, technology gaps do not exist

Drive ROI with new capabilities:- Actionable Date- Time/day-part marketing- Real-time offer delivery- Personalization

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Safe Harbor for Forward-Looking Statements: This presentation includes forward-looking statements regarding expected products, product enhancements and timetables related to these. Retalix retains at its sole discretion the right to modify or change any of these future products and related timetables. Please refer to your written agreements with the Company as the sole source of obligations regarding our delivery of products and services.

Thank you!

Bill CataniaCEO, M-Dot Networkbcatania@mdotnetwork.comCell: 814-244-1539www.mdotnetwork.com