Text HELLO to 63901 2017 UK - Amazon Web Services · 2017-05-15 · mobile. As technology has evolved, so have we. Now, with funding from our strategic partner, Syniverse, we are

2017 UKMOBILE REPORT

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2017 UK Mobile Consumer Report | 2

We are a leader in mobile engagement automation. Paired with the best and brightest minds in mobile marketing, our one-of-a-kind platform

helps brands connect with their consumers through SMS, mobile wallet, and more.

About VibesA f e w w o r d s

Vibes is the brainchild of two lifelong friends, who, over nearly 20 years, have grown the company from a two-man operation to a 150-person enterprise. Even before text messaging was introduced to the market, we helped brands across the US and Canada engage with their consumers and raise revenue through mobile. As technology has evolved, so have we.

Now, with funding from our strategic partner, Syniverse, we are expanding to bring our cutting-edge mobile technology and expertise to the UK. See what we found from a recent survey about US and UK mobile habits. Then, get in touch if you want to learn more about what Vibes can do to leverage these habits for your brand.

“ I t ’s not about advert is ing;

i t ’s about how you engage

someone in the most

int imate, powerfu l way —

and that ’s by weaving

personal ized exper iences into

a consumer ’s everyday l i fe.”

Jack Phi lb in, Co-Founder & CEO

contentsWe l c o m e t o t a b l e o f

04Executive Summary

06US & UK Consumers: A Comparison

09Mobile Consumer Study: Offers & Coupons

15Mobile Consumer Study: Loyalty

19Key Takeaways

22Methodology


In less than a decade since it was first brought to market, smartphone use has blown up in the UK. More than four in five consumers own a smartphone and

collectively check them a billion times a day1.

Executive Summary

Consumers’ continuing passion for smartphones presents exciting opportunities for marketers, brands, and enterprises to engage with them.

One of the most effective channels for mobile engagement is mobile wallet. Mobile wallets like Android Pay and Apple Wallet are best known for facilitating mobile payments and storing boarding passes and tickets – but smart marketers use these apps to deliver branded content, such as offers, coupons, and loyalty cards, to consumers. Leading brands and retailers in the US and UK alike use sophisticated mobile wallet marketing

campaigns to achieve positive business outcomes, such as driving in-store visits, increasing basket size, and improving loyalty.

Our 2017 UK Mobile Consumer Report found mobile wallet adoption is still in its nascent stage, with approximately one in four consumers currently using mobile wallet to store offers and coupons, airline boarding passes, loyalty cards, and tickets. But marketers therefore have a prime opportunity to capture this market before their competitors. This report features

new mobile consumer preference data from the UK. Get the information that can help shape your mobile engagement strategy — whether you are extending your mobile wallet marketing programme across the Atlantic or testing it out for the first time.

THIS REPORT WILL HELP YOU:

Discover the similarities and differences between US and UK consumer preferences

Better understand how mobile wallet marketing can enhance existing direct marketing and loyalty programmes

Learn how to leverage mobile wallet technology to connect to the modern mobile consumer

1

2

3

1Deloitte Global Mobile Consumer Survey 2016: UK Cut https://www.deloitte.co.uk/mobileuk/

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What good is paying for goods and services with your phone if you still have to whip out your wallet for paper coupons and plastic loyalty cards? Vibes mobile engagement platform provides a new way for marketers to deliver content like

offers, coupons, loyalty cards, tickets and more.

PAYMENTStore your credit card

information here so you can ditch your physical wallet.

CARDS & PASSESStore your loyaltymembership and gift cards,as well as all yourdigital offers, in one easy-to-access spot.

What is mobile wallet?


Consumers on both sides of the Atlantic show a strong appetite

for coupons and offers, which suggests marketers could benefit

from making the process of acquiring, saving, and redeeming

coupons and offers much more convenient. In the UK, consumers

are fiercely loyal to a select number of brands, which presents

marketers with an opportunity to further improve the experience

by mobilising their loyalty programmes.

UK & US Consumers: A Comparison

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The US outpaces the UK when it comes to saving offers to mobile wallet, but UK consumers have quickly taken a liking to it. In the US, consumers are more likely to save a coupon to mobile wallet, with 35 percent doing so compared to 16 percent in the UK. Even though fewer brands and retailers have sophisticated mobile wallet marketing programmes in the UK, this data may indicate that UK consumers understand the value of mobile wallet and may be willing to use it.

I keep physical coupons in my wallet/purse

I save coupons in my email

I save coupons to my mobile

I don’t keep track of coupons

or offers

Other

1%15%16%

40%

70%

QUESTION: 3 | UK

HOW DO YOU currently keep track of coupons and offers?

UK and US consumers both rely heavily on paper-based coupons. Seventy percent of UK consumers keep a physical coupon with them in their wallet or purse (69 percent in the US), underscoring the potential opportunity for marketers to streamline and simplify the process of saving and organising offers.

Like in the US, the vast majority of UK consumers use coupons and offers. For nearly all consumers, coupons and offers are engrained into the everyday shopping experience. Currently, only 15 percent of UK consumers (10 percent in the US) don’t track retailers’ offers.



UK consumers do not print out coupons and redeem them in-store as frequently as their US counterparts. This data suggests the hassle of printing and bringing coupons to physical retail locations is not worth the effort for many UK consumers. But what if marketers removed such cumbersome steps from the process? Mobile wallet makes it easier to store and redeem coupons and offers.

HOW FREQUENTLY DO you print out coupons and take them in-store for redemption?

EVERY TIME I SHOP

MOST OF THE TIME

SOMETIMES

RARELY

NEVER

US

UK

18%

20%

44%

13%

6%

7%

40%

23%

26%

13%


By relying on traditional distribution channels for coupons

and offers, brands are missing out on opportunities to bolster

their connection with consumers. For customers, being able to

access coupons and offers on the go makes for a better, more

convenient shopping experience; and for brands, mobilising

coupons and offers can create a lasting, interactive relationship

with customers on their personal devices, and make it easier to

track redemptions both in-store and online.

UK Mobile Consumer Study: Offers & Coupons

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By using Apple Wallet, consumers can save offers from email or SMS directly to their iPhones, so they are always on hand. Personalization, real time updates

and redemption notifications are also possible.

OFFER FRONT1. Your logo, front and center, as well as the expiration

date, helps users to organise the offers in their wallet.

2. Offer “strip image” area allows marketers to display branded creative and offer details.

3. Here you can personalise the offer for each user.

4. Multiple barcode formats offer flexibility for various POS systems.

5. Provide a link to your app (left side). Consumers can click the “i” button to “flip” the pass over for more details (right side).

OFFER BACK6. See a summary of the offer.

7. With “Automatic Updates” turned on, marketers can send redemption reminders, among other communications, which appear on the users’ lock screen.

8. “Share Pass” allows consumers to share the offer with others.

9. “Remove Pass” gives consumers the option to take the offer off their device.

10. This allows you to provide consumers with additional information about your business, such as a link to the website or list of locations.

Offer Anatomy

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7

8

9

10

2

3

4

5

NAME

Sam Jones

123456789

DETAILS

Tap “i” for details

EXPIRES

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AMERICAN EXPRESSAMERICAN EXPRESS

A C E SAA R T I S A N C O F F E E C O .

F R E E S M A L L L A T T Eon your next visit

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With Android Pay, offers can be saved directly to consumers’ Android Devices. These passes are personal to the consumer and can be updated in real-time.

OFFER1. Your company’s logo along with the offer title,

merchant, and personalized bar code. It is also possible to include an expiration date.

2. Location aware

3. Area to include website information if applicable.

OFFER (CONT.)4. This area is designated for the offer creative and image.

5. The offer-holder’s name will be populated here

6. This area can be used for additional information that

might be useful, such as a website or location tracker.

7. Select to remove the offer from Android device.

Offer Anatomy

1

4

5

6

7

2

3

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Consumers are extremely invested in their email inboxes, rarely letting offers or coupons go ignored. This suggests marketers could benefit from leveraging email as a primary channel for distributing mobile wallet content and activating e-offers. Adding a simple “Save to Wallet” option to an email, which allows consumers to add a coupon or offer to their mobile wallet in just a few taps, has delivered significantly higher redemption rates – in some cases as much as 10 times higher – for our customers.

HOW OFTEN DO email offers or coupons get lost or ignored in your inbox? Approximately 75 percent of smartphone

users would prefer to receive mobile wallet offers via email. A retail client saw a 10x increase in redemptions when they added a “save to phone” option to their emails offers.

11%Every time/Most

of the time

33%Often/Sometimes

27%Rarely

18%Never



Nearly two in five consumers say they’d have a more positive opinion of a retailer that began delivering coupons and offers that they could save in their smartphones. Giving consumers this convenient option for storing and redeeming coupons and offers can have a measurably positive impact on brand perception.

HOW WOULD YOUR perception of a retailer or brand change if they started to deliver digitized coupons and offers for you to save in your smartphone?

TEXT OFFER TO 63901

39%A much/somewhat

more positive opinion of the retailer

40%No impact

7%Diminished opinion

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Our data shows that consumers fail occasionally to redeem a coupon or offer before it expires. Brands that deliver coupons by mail have no ability to influence redemption, whereas on mobile they can use any number of channels, such as SMS and mobile wallet notifications.

HOW OFTEN IN the last 6 months have you failed to redeem a coupon or offer in time because it had already expired?

OR mobile wallet notification

SMS

When Vibes client Chipotle sent an SMS reminder to those customers who had received an offer but had not redeemed it, they saw a 35 percent incremental redemption rate.

10%Every time/Most

of the time

41%Often/Sometimes

40%Rarely/Never



Missing the window of use for a coupon or offer is a frustrating experience for many shoppers. Nearly two in five consumers are irritated when they neglect to take advantage of a coupon or offer before it loses its value.

HOW OFTEN are you irritated when you miss the expiration date of an offer or coupon you wanted to use?

The beauty of offers stored in mobile wallet is that marketers can refresh them. When a customer has an unused, expired offer, you can automatically change or replace it — a great way to avoid angering customers and to get them back in your store.

27%Every time/Most

of the time

25%Often/Sometimes

29%Rarely/Never

NAME

Sam Jones

123456789

DETAILS


EXPIRES

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P U R C H A S E T H E F I R S TT H E N E X T O N E I S O N U S

Select pastries


You can give your loyalty members the option to leave their

plastic cards at home in exchange for a digital version that’s

with them at all times. A mobile loyalty programme creates

two-way, dynamic communication between your brand and your

customers. Mobile loyalty also provides a valuable tool to drive

foot traffic, reduce costs from plastic card distribution and

measure the success of your loyalty programme.

UK Mobile Consumer Study: Loyalty

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Apple Wallet makes it easy for brands to integrate their loyalty programs with mobile. Consumers can easily save their loyalty cards to their iPhone.

Loyalty Anatomy

1

2

3

4

5

LOYALTY FRONT1. Your logo, front and center, as well as the consumer’s

personal loyalty details, such as member level (gold, silver, etc.) or member start date.

2. Loyalty Card ‘strip image’ area allows marketers to display branded loyalty program creative

3. Loyalty program participant’s name.

4. Multiple barcode formats offer flexibility for various POS systems.

5. Provide a link to your app (left side). Consumers can click the ‘I’ button to ‘flip’ the pass over for more details (right side).

LOYALTY BACK6. See a summary of the Loyalty Card.

7. With ‘automatic updates’ turned on, marketers can send loyalty status reminders, among other communications, which appear on the users’ lock screen.

8. “Share Pass” allows consumers to share the loyalty card with others.

9. “Remove Pass” gives consumers the option to take the loyalty card off their device.

10. This allows you to provide consumers with additional information about your loyalty program, such as how to earn points or how to achieve the next membership level.

6

7

8

9

10

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NAME

Sam JonesDETAILS


123456789

MEMBER SINCE

2012

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P R E M I E R M E M B E RP R E M I E R M E M B E R


Take out plastic loyalty cards from the equation - Android phone users can save their loyalty cards directly to their phone for easy access.

Loyalty Anatomy

1

2

3

LOYALTY CARD1. Place company logo, name and loyalty level info

here. The personalized bar code will record the holder’s activity.

2. Member activity can be recorded here.

3. Company website info can be linked here if applicable.

LOYALTY CARD (CONT.)4. This area is designated for the loyalty program

creative and image.

5. Include any additional information here such as how to earn points, or achieve the next loyalty level.

6. “Remove Pass” gives consumers the option to take the loyalty card off their device.

4

5

6

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The overwhelming majority of consumers have between one and four loyalty cards and 90 percent of them use their cards on a monthly basis. With a limited number of cards that get frequent use, it’s clear that consumers do not sign up for loyalty programmes on a whim. Instead, they opt into a rewards programme with a brand they love and with which they find value.

HOW MANY LOYALTY cards do you use monthly?

HOW WOULD YOUR perception of a retailer change if they started to deliver digitized loyalty cards for you to save in your smartphone?90%

1-4

9%

5-10

1%

11-16

16%A much more positive opinion of the retailer

28%Somewhat more positive

44%No impact

11%Diminished opinion



Easy access to rewards is the top reason consumers sign up for these programmes. But the signup process can be unnecessarily complex, requiring consumers to visit a store to register for a card or sign up and wait to receive one via mail. Removing plastic cards from the equation simplifies the process and allows customers to enjoy instant access to point balances and rewards.

WHY DO YOU sign up for new loyalty programmes?

FORM FOR LOYALTY

So I can earn rewards

Because I only sign up with programmes

that I use daily

So I can get discounts on future purchases

So I can get exclusive deals

So I can be informed on discounts/sales before

non-loyalty members

Information about new ranges of services

Information about the company

Nothing makes me sign up for loyalty

Easy registration

70%

59%

43%

28%

23%

18%

11%

4%

5%TEXT LOYALTY

TO 63901

bla.com

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Our 2017 UK mobile consumer data is loaded with insights, but there are a few key takeaways that we believe every enterprise and brand should keep in mind whether

they are launching or refining a mobile strategy.

Key Takeaways

01 02The UK market is still maturing with mobile

wallet marketing, which presents a tremendous

opportunity for brands and retailers. Mobile

provides convenience and immediacy, which has

made it the go-to device for consumers in the

UK. Brands and retailers must capitalise on this

shift. In the US, our customers were among the

first businesses and brands in the world to launch

mobile wallet programs and define success and ROI.

As a result, we’ve accumulated data on this channel

and optimised campaigns accordingly. Many of

our customers now routinely see eight-figure

sales results directly attributed to mobile wallet

marketing. UK brands and businesses can position

themselves for similar success down the road by

getting started with mobile wallet immediately.

Take advantage of the unique functionality of mobile

wallet to improve your loyalty and marketing.

Android Pay and Apple Wallet allow you to notify

consumers who have saved a coupon or offer

when they are near a store or remind them when

an approaching expiration date. Mobile wallet

content is dynamic, meaning it can be updated

in real time. For example, after a coupon expires,

you can change the content saved on a customer’s

mobile wallet to extend the expiration date – or

send a reminder, which on average drives 9 percent

incremental redemption rates for our customers’ in-

market mobile wallet offer programmes. On modern

point-of-sale terminals, customers can pay, and

accrue or redeem loyalty points, in one transaction,

instead of scanning a loyalty card and then tapping

or inserting a debit or credit card.


Key Takeaways

03

04

Extend the power of mobile wallet across channels.

One of the best practices for succeeding with

mobile wallet is to use a multichannel approach,

which can help customers become familiar with

mobile wallet technology and increase coupon

redemption. Savvy brands and retailers distribute

mobile wallet content across a variety of marketing

channels, including email, SMS/MMS, mobile web,

mobile ads, social media, direct mail, and apps.

The saving and redemption process is simple for

consumers, requiring just a couple of taps to save

a coupon to Android Pay or Apple Wallet from an

email, mobile site, text message, social media link,

or other channel. Mobile wallet is a versatile mobile

tool that brands and retailers should put to use.

Brands and retailers will gain a competitive

advantage by mobilising their offers and loyalty

programmes. In mobile, experimentation and a

willingness to take risks can lead to a competitive

advantage. Enticing customers to manage their

coupons, loyalty points and rewards in Apple Wallet

or Android Pay puts their brand in close proximity

to the customer’s debit and credit cards — valuable

real estate for any marketer. Successful brands are

transitioning traditional consumer touch points —

plastic loyalty cards, paper coupons, credit cards

— to mobile to create a unified experience for

consumers on the device they use most.


Mobile is not a stand-alone channel. It is what connects each part of your brand’s ecosystem.

If you’re thinking of starting or expanding a mobile program, our enterprise-grade mobile engagement platform is one-stop shopping. Vibes’ platform helps you drive engagement and your bottom line through SMS campaigns, mobile wallet ads, and loyalty cards. Visit www.vibes.com/uk to learn more about how we can help your brand hit its mobile marketing goals.

How to get started?

Consumer engagement drives revenue

A D V

A P P

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S O C I A L


Vibes commissioned independent market research company, Opinion Matters, to survey 2,002 adult mobile consumers in the UK and the US

who also participate in at least one loyalty program. Our goal was to better understand their perceptions and opinions around coupons and loyalty and

the impact of mobilizing these programs.

Answers of “not applicable” are not depicted in the graphs, and all percentages are rounded. In some cases, respondents were permitted to choose all that apply. As a result, total shown responses may not add up to 100.

Sample

Total n= 2,002

Loyalty card holders

Ages 18+

US and UK residents

Methodology

Methodology

Respondents recruited via paid US and UK national

panels sample

Fieldwork conducted in September 2016

We help marketers unlock new revenue by arming them with the technology and expertise they need to succeed in mobile marketing. Catapult, our mobile engagement platform, enables marketers to easily manage all mobile communication channels including text messaging, push notifications, Apple Wallet, Android Pay and mobile web campaigns — all through a single interface. Vibes has delivered more than five billion mobile experiences on behalf of customers that include Chiptole, Gap, Old Navy, Home Depot, PetSmart, Foot Locker and Allstate, and is the preferred strategic partner for global mobile engagement company, Syniverse. To learn more about Vibes, visit www.vibes.com.

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Text HELLO to 63901 2017 UK - Amazon Web Services · 2017-05-15 · mobile. As technology has evolved, so have we. Now, with funding from our strategic partner, Syniverse, we are