Marketing buzz on mobile

Retailers are constantly trying to attract new consumers. Besides traditional marketing methods, the proliferation of personal computers and the Internet has  allowed for new types of marketing.

The new connected consumer can use the Internet and mobile technology, inside and outside the store, to interact with other consumers and friends, check references, validate their buying options, share their shopping experience and write reviews about a retailer or a product/service using their favourite social networking tool.

Through promotional emails or website advertisements, a casual user can also be immediately turned into a customer making an online purchase. Now, as cell phones and mobile devices have become ubiquitous, they are also rapidly becoming a new platform through which retailers can increase their reach and interaction with consumers.

Technological advancements make it easy

Advancements in barcode scanning technology, such as the emergence of area-imaging scanners that can read barcodes off mobile phone displays, are now making it possible for consumers to receive and redeem coupons on their mobile phones via email or SMS/MMS messages.

Retailers scan the coupon directly from the digital display of the consumer’s mobile device at the point-of-sale, which eliminates the need to carry paper printouts and ultimately increases customer satisfaction. These advancements provide retailers with new opportunities to engage with their customer base in real time, while saving costs and wastes associated with paper coupons.

This new use of the mobile device is much more than just a ‘neat trick’. Coupons are a time-tested and effective marketing tool. In the “Mobile Couponing Survey” conducted by Harris Interactive on behalf of Honeywell (December 2009), 86 per cent of adults polled have redeemed traditional paper coupons from a newspaper or magazine and 65 per cent of adults have redeemed electronic coupons from the Internet or through email. The same survey showed that 46 per cent of the adults polled, who own a mobile phone, are at least somewhat likely to try receiving and redeeming barcoded coupons via their mobile phones. Jupiter Research estimates that by 2011, over $ 7 billion in sales will be generated by three billion mobile coupons.

Additionally, there is a significant increase in mobile coupon redemption rate when compared to their printed counterparts. While printed coupons are redeemed at a rate of 1 per cent (according to CMS Inc, a coupon processing agent and promotions logistics service), Jupiter Research finds a 5 per cent redemption rate for mobile coupons. In addition to the 500 per cent increase in the redemption rate, mobile coupons save on printing cost and give the retailer a positive image – of one who provides ‘green’ marketing promotions to their customers.

Attempting to take advantage of this phenomenon, Target came into news in March 2010 as the first major retailer to deploy a nationwide barcoded mobile couponing solution in all its stores. Consumers interested in getting mobile coupons from Target must “opt in” by registering on their website or texting a keyword to the designated short code. Enrolled consumers will receive exclusive coupon offers once a month from the retailer.

More advantages and benefits

ABI Research reports that 63 per cent of consumers feel a coupon is the most valuable form of mobile marketing, yet retailers have so much more to be excited about. With consumers’ lifestyles becoming increasingly phone-centric, more functions are migrating there. Starbucks has launched a mobile device application that would replace the plastic gift card, allowing the barcode to be scanned directly from the mobile device screen. Similarly, several large supermarket chains have begun to offer loyalty cards as a barcode on a mobile device, instead of the traditional plastic card.

The mobile device allows retailers to truly interact with consumers in unique ways. Billboards and displays on a grocery shelf can prompt consumers to send an SMS message in order to receive an instantaneous coupon. For example, a “15 per cent sale on anything in the store” offer that is valid during a limited window of time can be sent directly to a consumer’s mobile device. This type of promotion provides consumers with an additional incentive to make a purchase, or to make a purchase that is worth more than what they initially intended to spend.

Other interactions that go beyond the mobile coupon include mobile ticketing. In St Paul, Minnesota, the Saints baseball club allows purchased event tickets to be sent to the customer’s cell phone in the form of a 2D barcode. At the event entrance, the gate attendant scans the barcode directly from the mobile device display. Airlines, such as Continental and Delta, have deployed similar tactics for check-in at the boarding gate.

Tesco recently launched a series of virtual stores that leveraged barcode scanning technology to improve its customers’ shopping experience. The Korean retail giant’s Home Plus chain was looking for ways to improve its market share without adding physical stores. Capitalising on the 10 million smartphone users in South Korea, the company looked to mobile shopping as a solution. Tesco set up virtual grocery stores in subway stations by plastering large-scale photos of store shelves that were ‘stocked’ with groceries and products just as they would be in a traditional Home Plus store. Each item featured a QR code, which could be scanned by a person’s mobile phone and immediately added to a virtual shopping basket. A customer could then use his phone to pay for the groceries online and have them delivered to his home.

Bringing it all together

The key to successful mobile marketing is getting all the pieces working together. Well-designed marketing campaigns need to target the correct customer with the right promotion. As witnessed with South Korea’s Tesco, the company brilliantly identified its customers’ needs (ease-of-use shopping), pain points (lack of time), and paired these with a promotion location that was central and routine for millions of South Koreans (subway stations).

Next, the right barcode needs to be delivered by the right mobile marketing solution provider to ensure that it will be properly displayed on each customer’s mobile device. And of equal importance, the proper barcode scanner must be utilised. Laser scanners that require reflection from spaces in barcodes will not work, since LCD screens do not reflect light. Only scanning devices that use area-imaging technology will correctly scan barcodes from the screen of a mobile device. 2D imagers provide a level of flexibility beyond that of any other barcode scanning technology because they allow you to read any linear or 2D barcode. Therefore, regardless of what barcode symbology is used, 2D imaging will work and enable you to adapt to changes.

Given the increasing popularity of mobile couponing, mobile ticketing and e-loyalty applications, enterprises would be wise to begin implementing devices that are capable of reading barcodes in low-light conditions (as mobile screen dimness varies); advanced decoding algorithms providing aggressive reading and fast performance; and high tolerance to hand motion for ease of use in high-traffic, scan-intensive environments.

The author is the Country Manager for Honeywell Scanning & Mobility, India