Mobile Marketing

Mobile Marketing

Will Shuckburgh, Business Development Director, Nectar

3rd March 2011

Private and confidential

Agenda

• Nectar

• Why mobile, why now?

• Customer Insight

• The Nectar App

• Results

• Some things we have learned


Groupe Aeroplan is the global leader in loyalty management

• Miles-based coalition in Canada

• 5 million members

• 75 earn partners and 188 burn partners

• Points-based coalition in UK and Italy

• 12m 12-week active UK households

• 14 earn partners and 30 burn partners

• Nectar Italia launched March 2010

• Nectar Chile launched August 2010

• Customer-centric retailing business

• Tools and SKU analytics platform

• 100+ Consumer Packaged Goods partners

• Present in 7 markets in the Middle East

• 130 partners

• HSBC principal partner and 40% shareholder

• Loyalty Marketing Services Provider

• Presence in North America, EMEA and Asia Pacific

• Global leader in loyalty • C$2bn turnover• Over 3,000 employees• Presence in over 16 countries in

North America, Europe, Middle East and Asia

http://www.nectar.com/


Nectar is the UK’s largest loyalty programme with over 50% of UK households

Points Issuing Partners Rewards PartnersCollectors

15.1M Households active in the last 12

months

Database

Nectar Business

Plus over 450 online retailers on eStores including:

Source: Nectar Stats, January 2011

http://www.nectar.com/collect/motoring/hertz.points

http://www.nectar.com/collect/motoring/hertz.points

http://www.laithwaites.co.uk/default~linkid~index~brand~LAIT~cid~SEARCH%7CGOOGLE%7CBRAND%7CBRAND%7CLAITHWAITES%20MISSPELLING%7CC2~mscssid~10AE6029CCE446A8A82787EC0F512CC6.aspx

http://www.visionexpress.com/


Agenda

• Nectar



• The Nectar App

• Results



In the beginning there was paper…

• Very, very personalised paper

• 5m+ unique offer combinations in a Points Update Mailing

• Award winning trigger campaigns: Home Mover’s Kit etc


And then there was digital...

• www.nectar.com receives circa 2m unique visitors per month

• Most visited areas: eStores, offers, account management, rewards

• C. 1million collectors have transacted through Nectar eStores across Nectar and Nectar Business

• 45% of registrations are online


We developed a paper-less offer engine


Mobile – Why now?

• Mobile phone internet access developments:

• Screen size and clarity

• Flat rate monthly data charge

• Mobile network speed

• Demise of walled gardens

• By 2013, more people will access the web from a mobile than a PC (Gartner)

• Member appetite – Facebook comments + collector survey

• Critical mass of smartphones


“Nectar Everywhere” - Customer Value Proposition

Value ₤

ConvenienceInspiration ♥

NectarEverywhere

Data will drive relevance in all three areas


Agenda

• Nectar



• The Nectar App

• Results



Key Market Research findings

• Nectar smartphone survey, June 2010, 201,258 respondents

• 36% own smartphone

• 58% have had a smartphone for less than 1 year

• 59% find out about new apps via App store or friends

• Distribution of the best known types

1. iPhone

2. Blackberry

3. Android

• Android is expected to overtake iPhone in 2011


Over 40% of all smartphone users download an app at least once a month

n=73,897

0

10

20

30

40%

Everyday

2.8%

More ThanOnce a Week

8.6%

Once aWeek

8.6%

2 to 3 timesa month

13.8%

Oncea month

8.4%

Once every2 to 3 months

7.7%

LessOften

15.9%

NeverDownload

34.4%

How often, on average, do you download apps to your phone? All smartphone users.

40%

Private and confidentialn=20,005

iPhone users download apps more often than other smartphone users

0

10

20

30%

Everyday

6.0%

More ThanOnce a Week

20.0%

Once aWeek

18.3%

2 to 3 times amonth

26.7%

Once amonth

12.1%

Once every 2to 3 months

7.2%

Less Often

5.8%

NeverDownload

3.9%

How often, on average, do you download apps to your phone? iPhone users

80%


Customers told us that they want…

Convenience and value

• Access to Nectar point offers on the go and in their own time

• To see their points balance and manage their account 24/7

• Store finders to easily locate where they can collect and spend points

• To receive communications when new offers are available through the app (70% are happy to receive alerts from Nectar)

• Attainable and worthwhile offers that are updated frequently (weekly or monthly)

Nectar iPhone App survey, June 2010, 201,258 accounts participated in the survey


Agenda

• Nectar



• The Nectar App

• Results



Nectar app functionality

Points balance One-to-onebonus points offers

Store locator Programmeinformation


The business model

• Mobile Offers

• One-to-one offers wherever members go

• No paper or point of sale interaction

• Very cost efficient channel

• Combines our Insight and Currency

• Clear monetisation model

• App is free for customers

• CPG’s and partners charged for offers

• Bonus Points revenue


Opting in


We’ve also built Sainsbury’s iPhone app

Sainsbury’s news Store locator In store offers One-to-onebonus points offers


With a distinctive Sainsbury’s look and feel


Agenda

• Nectar



• The Nectar App

• Results



iPhone app launch results

• Nectar and Sainsbury’s apps launched on 16th August 2010

• 0.5M downloads of the Nectar app so far

• Over half a million user sessions

• Nectar app #3 in the UK free app chart within four days


Collectors love our new app


App reaction – our partners

“The Sainsbury’s App is more than meeting expectations in terms of customer demand and we are excited that, working together with Groupe Aeroplan, our app will evolve through a solid development pipeline”

“I really like the site locator and the personalised offers. So much easier, friendly and accessible than to have to use a website when you are ‘on the go’ as our customers are!”


Initial results for partners have been outstanding

• Results to date of targeted offers for Nectar’s 3 biggest retail partners:

• 23%-57% offer opt-in

• 4% -48% of targeted customers completing the right purchase

• £Multi-million incremental spend

• High ROI, which will guide channel pricing

• Collectors responding to the offers have benefitted from hundreds of thousands of pounds worth of rewards


Very good CPG results as well


Mobile – where next?

• “Nectar Everywhere” strategy: right offer, right people, right place, right time

• Mobile website

• Roadmap of new functionality for the apps

• Further platforms

• Integration of website and mobile data into our warehouse


Agenda

• Nectar



• The Nectar App

• Results



Key Considerations

• Prioritise your app platforms by download volumes & demographic fit

• Engage staff and customers early in the design cycle, limited ability to trial

• How to drive repeat usage?

• Does your web analytics tool allow you to track the interactions through your app?

• Customers expect new releases and features – set out a roadmap

• Feedback is instant through the app store and other social media – be ready to respond

• You have to ask for good reviews - in app prompting

• Many retail environments have limited or no mobile coverage – make it work off line

• Many retail scanners won’t scan a barcode image on a mobile phone – remember that a bad customer experience can damage overall brand perception

• Strike up a relationship with Apple – proves very handy at times


Thank you

Documents

Mobile Marketing