Offers App Product Positioning
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Transcript of Offers App Product Positioning
© 2013 Karthik Ethirajan, all rights reserved
Offers App Product Positioning Karthik Ethirajan September 2013
© 2013 Karthik Ethirajan, all rights reserved
Agenda
2
1. Mobile Influence on Retail
2. Coupons Industry Outlook
3. Offer App Success Factors
4. Offer Types
5. Business Model
6. Targeting Techniques & Offers TAM
7. UX
8. Distribution
9. Merchant Value Proposition
10. Consumer Value Proposition
© 2013 Karthik Ethirajan, all rights reserved
Mobile influence on in-store retail sales, not to be
confused with mCommerce, is significant
3
Mobile levers
can enhance
“in-store”
experience
Retail
Store Online
2012 Sales ($ in Billion)
Mobile
Source: Mobile Shopping from In-Store, eMarketer, Jun 2010; The
Dawn of Mobile Influence, Deloitte, Jun 2010; US Online Retail
Forecast, Forrester, Mar 2010
Mobile-Influenced Retail Sales
Mobile influence on store sales will increase from 5% today to 19% by 2016
Consumer Retail Shopping Experience
Myth Reality
1. Shoppers have channel
preferences
Path to a transaction (e.g., first
research point) traverse many
channels
2. Deal seekers are bad
customers
The most savvy and active
coupon users have the highest
income
3. Consumers are
overwhelmed with coupons
and deals
Deal fatigue from consumer
point of view is overstated
4. Mobile commerce is a
force to be reckoned with
Most retail sales still happen
in-store
5. Showrooming will kill
bricks-and-mortar retail
Mobile levers can help
counteract effect of
showrooming
© 2013 Karthik Ethirajan, all rights reserved 4
Consumer data shows that mobile is poised to disrupt
the coupons industry
Coupons Today Future
FSI 44%
Instant Redeemable
18% Electronic Checkout
8%
Shelf Pad 6%
Internet 5%
Direct Mail 4%
Others 16%
FSI 88.8%
In-ad 2.6%
Magazine 1.2%
Internet 0.4%
Others 7.0%
Distribution Redemption
Distribution
(billions)
Redemption
(millions)
Redemption
Rate Use
Print 310 3000 1% In-store
Online 1.5 173 13% In-store &
Online
Mobile - 34 35-60%* In-store &
Online
Distribution
Consumers and merchants are disconnected when it comes to coupon distribution and redemption methods
Redemption rates show consumer preference for digital coupons
Digital coupons are set to grow rapidly
Opportunity Gap
• Location aware for mobile redemption rate
• 2/3rd of all coupons redeemed are food related Source: 2013 Coupon Trends, Inmar; How Big is
Coupon Industry, Savings.com C; Vibes
© 2013 Karthik Ethirajan, all rights reserved 5
Success of a carrier branded Offers app relies on
delivering these values to consumers and merchants
Save money on-the-go while shopping or consuming services by utilizing our offers and value-added functions that are easy to use
Identify new profitable customers and drive in-store sales using our refined targeting and understand consumer behavior from our reports
Consumer Value Proposition
Merchant Value Proposition
Our differentiation lies in our execution of the success factors and bringing to
bear the unique carrier assets (a) subs (b) subs data and (c) distribution
Success Factors
Premium Relevancy UX with Opt-in,
Search, Redeem, etc.
Premium Targeting & Reporting Onboarding,
Campaign execution
Content Data Experience
Consumer
Merchant
Key Metrics: Downloads Active Users
User
Adoption
CTR Revenue
Campaign
Performance
© 2013 Karthik Ethirajan, all rights reserved 6
Offers app will have all offer types under one roof
Direct Premium
Premium Offers from Partners
Regular Offers from Partners
Deals CLO
National
eGifting
Local
Venues
/Events
National
Drives
Revenue
Drives
Engagement
Va
lue
Vo
lum
e
• Partners shown may be in consideration, and not necessarily operational
© 2013 Karthik Ethirajan, all rights reserved 7
Offers will be sourced directly from merchants as well
as from content providers via a rev share model
Business Model
with Merchant
Transaction
Type Typical Offer Types Purpose
CPS Closed CLO, Deals, National,
eGift
Premium Drives
Revenue CPC
Open
Local
CPM Venues/Events
Non-
Monetizable National Regular
Drives
Impressions
3rd Party Content
Providers
Direct Sales
Merchants Publisher
CPS/ CPC/ CPM
App
Web
SMS
Notification
Ad
CPS/ CPC/ CPM
APIs
Merchant Portal
Rev Share
100% Commission
Offer Source
Each business model from merchant lends itself well to certain offer types
© 2013 Karthik Ethirajan, all rights reserved 8
Targeting techniques differ by offer type and are
constantly evolving. Offers TAM is ~4B across all offer
types with varying growth rates.
Offers
$0.5B
CLO
< $100M Venues
/Events
< $100M
eGift
Cards
$0.6B
Daily Deals
$2.7B
FU
TU
RE
Lo
ca
l
Me
rch
an
ts
Na
tio
na
l
Bra
nd
s
Targeting Demographic Contextual Behavioral
Data
• Personal data
• Interests
• Time
• Place (real-time
location)
• Shopping habits
• Mining social graph
• Predictive measures
Application Works for Deals Ideal for mCoupons Convergence
Smaller segments are the fastest growing
Market includes online & mobile
Share of mobile traffic growing faster than online
TAM is based on sales commission (not coupon face value)
Revenue share with partners not accounted yet
Offers TAM ~ 4B
© 2013 Karthik Ethirajan, all rights reserved
Key elements of consumer and merchant experiences
9
Search
By brand, price, product type, etc.
Web Portal
Opt-in/out, one stop for housekeeping, dashboard view, cloud saving of offers, etc.
Preloaded App
No downloads necessary
Merchant Experience
Registration
Simple and a few steps SMS enabled Double opt-in for location is industry
standard Key to reducing opt-in abandonment
Preference Settings
Greater control over category selections, profile data and privacy settings
Purchase
Seamless in-app checkout for offer types that require payments
Redeem
Paperless results in higher consumer engagement
Experience contained within the app Key to reducing shopping cart
abandonment
Easy Opt-out
Consumer Experience
Experience is about how features are implemented.
Meaningful features that are well tested are a value-add,
and those that are not are value-subtracted
Onboarding
Provisioning Campaign setup Templates
Reporting
Self-reporting Real-time reporting that allows campaign
parameters to be adjusted
Payments
Fast Automatic
Superior UX will lead to better star
rating in app stores making
discoverability easier
© 2013 Karthik Ethirajan, all rights reserved
Push Pull
While there are many distribution methods, messaging
is important for reaching non-smartphone customers
10
Messaging is key to reaching
feature phones (~50% subs)
SMS is the most preferred method of receiving
mobile coupons. It has 10x CTR as pull methods.
U.S. consumer on averages sends 600
messages per month. 97% of all text
messages are opened (83% within one hour).
App
Web
SMS / MMS
Notification
Mobile
PC
Desired
Effect
• Brand
reminder
• Promote
impulse buy
• Retention
consumer
behavior
• Drive impressions
for Pinsight
Media+
Push & pull distribution influences different
but complimentary traits of consumer
behavior
Distribution Methods Power of Messaging
© 2013 Karthik Ethirajan, all rights reserved 11
© 2013 Karthik Ethirajan, all rights reserved
Finally, a consumer shopping app that provides
all discount offer types for major brands as well as
local merchants under one roof
12
Top Brands Shop With
Mobile Coupons
Daily Deals
eGift Cards
Loyalty Cards
Card Linked Offers
Discounts at Local
Merchants
Retail Offers
Offers at Venues &
Events
Premium Offers*
Opt-in: Simple registration flow, app preloaded on new devices
* Requires subscription to
Entertainment Books
Coupons On-the-go: Find offers en route, use them in the store
Local Events: Find information about events happening near you
Mobile Loyalty Cards: Why carry store cards when you can scan & load them in your mobile
Create Product Lists: May be you will find coupons related to the items on your list
Deals Near You: View deals near you on a map or sorted by distance
Be Social: You can Like/Dislike, save or share your favorite offers with your friends
Your One Stop Deal Shop!!
© 2013 Karthik Ethirajan, all rights reserved 13
Scan a barcode or read a redemption code at the POS
A stored loyalty card ready for use at the store
Search for coupons or browse a category
Share cool offers on your favorite social networks or via email or text
User preference settings
Create and manage your product lists