© 2014 GS1

How Mobile Operators are enabling digital coupons

2

Paul CrutchleyStrategic Engagement Director - GSMA

© 2014 GS1

111 national organisations…

…150 countries served

Close to 2,000,000 member companies

Not for profit, member controlled, for more than 40 years

25 different industries

2,000 staff

GS1 & GSMA. A great match

© 2014 GS1

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Merchants, town centres and shopping malls have been finding the best way to target customers for years. Yet mobile is an expanding communications channel and we have to consider it carefully.

High Street/ Shopping

Centre5000

people

Purchase

200people

Affinity

100people

Increase footfall Combine eyes with feet Build affinity over time

Know Your Customer

Store

500people

Increase withstrategic engagement

Retail is more than just a transaction

© 2014 GS1

We need to consider the ecosystem, the PoS processes and the customer journey if we are to make good decisions with regards to the creation, distribution and redemption of couponing and loyalty.

Purchase + Couponing /

Loyalty

Time Sensitive

Set up and Communicat

e

Discovery and

Acquisition

Presentment

Reporting and

Settlement

Validation and

Redemption

Within the process

At PoS On the mobile

Consideration of interoperability and collaboration

© 2014 GS1

• Substantial research in what retailers and their ecosystem want• Mobile Commerce in Retail whitepaper, Loyalty & Couponing

whitepaper, iBeacon / BLE overview, Market Research conducted• Published open Technical Architecture & API proposal for

couponing and loyalty using NFC (2tap)• Market engagements with retail ecosystems and ‘in market’

collaborating mobile operators in Asia, and several in Europe.• Built on a sound and solid framework of proposition, business and

technical strategy.

2013 / 2014 progress of the retail work

© 2014 GS1

Global reach Promoting innovation, interoperability, collaboration & standardisation

China is seeing all 3 operators and regional

operators commit towards retail

implementations in 2014 / 15

In the US Softcard launched couponing and

loyalty services cross mobile operators, 80

handsets available and 30M sales in 2014 (5M

app downloads)

Canada’s Enstream have a collaborative project supporting payment as well as

couponing and loyalty

Norway’s mobile operators are now

planning for a 2015 launch of couponing and

loyalty

Italy has collaboration

between all mobile operators (as we see here today)

Germany’s mobile operators are

collaborating on interoperability for mobile couponing

and loyalty

Orange in France have launched b2b

retail services with a collaborative plan across the country

GSMA’s target markets: collaboration & interoperability

© 2014 GS1

GSMA• Mobile commerce in Retail• Mobile Loyalty & Couponing• Tech Specification Coupon

and loyalty• A well engaged and

researched retail ecosystem• A desire from the mobile

industry to bring couponing to life

GS1 Digital Coupon specification Technical Specifications Event Database Standards The Business Vocabulary

associated with events in the event database

An Open Source version of the event database (EPCIS)

Joint GSMA / GS1 project – Provide recommendations for enabling the mass

distribution and acceptance of digital coupons Give guidance to the ecosystem, brand and

merchant

This joint opportunity was not to be missed.

© 2014 GS1

Today

X Retailers/Brand & X Operators

1 Retailer/Brand & 1 Operator

Collaborative

futureX Retailers/Brand & X Operators

Potential fragmented

future

At risk of ‘hyper fragmentation’ in mobile apps

© 2014 GS1

Merchant closed loop couponing solution

Merchant open loop couponing solution

Brand closed loop

couponing solution

Brands open loop

couponing solution

Multiple Merchants

closed loop couponing solution

Merchants open loop couponing solution

Merge Merchants & Brands open

loop couponing solution

Brand open loop

couponing solution

Multiple Brands closed

loop couponing solution

Single to Mass Market

© 2014 GS1

Can create a coupon

Understand

ecosystem

Transfer mechanis

ms (NFC/BLE

etc)

Technical capabilities (applets

etc)

Open coupon format

Assumptions

Understand retailer distributio

n to settlemen

t ecosyste

m

Determine

customer journey

Discuss and

determine ideal

digital mass

distribution process

Identify new areas

within ecosyste

m

Objectives:

Create and agree

a common way of

thinking

Prior to discussing Acceptance and Distribution

© 2014 GS1

SETTLEMENT

OFFER ISSUER

COUPON DATA

POOLS

OFFER/ COUPON

DISTRIBUTORS

CONSUMER MOBILE

RETAIL ECOMMERCE &/ STORE

POS

OFFER VALIDATOR

COUPON EVENT

REPOSITORY

CAMPAIGN MGT &

REPORTING

Key:DistributionAcceptanceRedemption

Next - Making couponing and loyalty mass market

© 2014 GS1

Offer Issuer

Campaign Manager / Agency

Data Pool Event Repository

Distributor

Validator Store

Consumer

Settlement

GTIN

GLN Merchant

GLN Event

Creative

Parameters

GLN Settlement

GLN Distributor

GLN Validator

GTIN

GLN

GCN

Parameters

SGCN

GLN Merchant

GLN Settlement

GLN Distributor

GLN Validator

GCN

GSRN

SGCN (burn)

SGCN

GCN

SGCN

GTIN

GLN Merchant

GLN Event

Parameters

GLN Merchant

GCN (range 1)

GCN (range 2)

GSRN

Creative

SGCN (burn)

SGCN

Parameters

GLN Merchant

GSRN

Creative

SGCN (burn)

SGCN

Data modelling exercise as part of the development

© 2014 GS1

The following need to be added:• Coupon Data Pool for the issuance of campaign

coupons• Coupon Event Repository as the single truth for

campaign redemptions• Campaign management platform to interface to

the Coupon Data pool, Coupon Event Repository, distributors and settlement

• Possibly a marketplace of offers working with distributors

We believe these additions create new opportunities for the ecosystem• Ecosystem players may fulfil one or all of these

new functions• A market may have a single Coupon Data pool

and Coupon Event Repository, or many

Coupon Datapo

ol

Coupon Event

Repository

Campaign Managemen

t

Marketplace

What’s next - What Needs To Be Built

© 2014 GS1

• Wide distribution of coupons through multiple and NEW channels

• Targeting and controlled distribution• Distribute coupons across multiple retailers• Unique codes reducing fraud and identifying

consumers that engage• Fast and easy consumer experience• Live view of campaign effectiveness from

distribution through to redemption• Fast settlement

This process with mobile can deliver these benefits

© 2014 GS1

• Complete review sessions with retailers and brands

• Compile whitepaper together, expected publication November

• Technical evaluation and API identification• For GSMA – further assessment for Mobile

Operator role• Engagement with mobile operators in

implementing markets

Our Next Steps

© 2014 GS1

“Engage with the digital commerce ecosystem to stimulate the development and on-boarding of

service applications”

• Define the core functionality and technology to enable couponing and loyalty

• Determine a solution for mass distribution and acceptance of couponing

• Develop consistent case studies for interoperability in the ‘in-store shopper journey’

• Support go-to-market activities between mobile operators & merchant ecosystems in selected markets

GSMA’s digital commerce retail project 2014/15