Presentation on theme: "Rome, 6th October Ercan Kilic, GS1 Germany"— Presentation transcript:
1Rome, 6th October 2014 - Ercan Kilic, GS1 Germany How digital (especially mobile coupons) will be distributed and redeemed at the POS (virtual and physical POS)Rome, 6th OctoberErcan Kilic, GS1 Germany
3Why is GS1 Germany active in Mobile Commerce? GS1 has observed a world wide development of payment methods – they become increasingly contactless.The way in which customers pay for goods, redeem coupons, collect points, etc. change dramatically and more rapidly.These changes in customer behavior have an enormous impact on the business models of our clients and also in their investments in technologyGS1 Germany assumes the responsibility to offer solutions that enable its clients to benefit from the potential resulting from these changes.
4Mobile Payment Mobile ist wichtig für Retailer und Hersteller Das haben auch schon die großen Player erkannt wie Over the top player Google, Paypal, Amazon, Apple & Co.
5GS1 is not active in the payment eco-system … but when it comes to Mobile Wallets then GS1 standards will be part of the different POS scenarios and new processesBanksMNOsAcquirer& Mobile no nicht viel passiert – butTSMIAPsPayment Networks
6Yesterday: Payment was manageable and easy to understand Real Worldphysical POSCashILLUSTRATIIONDebit CardDirect Debit Credit CardProducts via BanksManageable product portfolioDistinction between payment at POS and Online – very clearVirtual World E-CommerceCredit CardsBank transferDebit entryLastschriftOnline Banking (Vorauskasse, Rechnung)
7Convergence of Payment The Wallet Hype ILLUSTRATIONReal World physical POSCash1mWalletsDebit CardDirect Debit Credit Card2eWalletsVirtual WorldE-CommerceCredit CardsBank transferDebit entryOnline Banking (Vorauskasse, Rechnung)Banktransfer
8Mobile WalletOTTs, Internet Giants, Banks, MNOs, Handset Manufacturers, Retailers want to provide Mobile Wallets by offering value-add services to customersIt`s not only Payment – it`s more than that - it`s the convergence of payment, couponing loyalty product info, etc. & co.The whole scenario is driving to mobileSource: Vodafone
9Mobile Wallet – the Google Wallet It is complex to set up, maintain, enrich and drive broad acceptance of mobile wallets!Abbildungen: Google.com
10Apple Pay - a late start to the market but with an innovative set-up Factsheet:Integrated into Apple Passbook on IOS 8Cards already stored in Itunes can be usedAlternatively cards can be added by taking a photoSupports NFC-based POS payments and one-click payments in apps and online storesAuthorization of transactions via fingerprint sensorNo credit card data is forwarded to the merchant, no transaction records are kept by AppleLaunches first in the US in October 2014Will support the Apple watch after launch in 2015
12The impact of Apple Pay The break-through will come with Apple Pay The market for mobile payment will benefit in generalApple Pay will clearly raise the awareness for contactless payments worldwideCustomer demand will be driven by Apple Pay (contactless payments might become cool)Apple unlocks the access to a well-funded group of customer with affinity to new technologiesApple Pay’s one-click-payment feature for apps and online stores will open up a severe battle between Apple and e-wallet providers like Paypal
13Apple vs. paypalPaypal - the market leader Online Payment
14What`s the strategy of retailers in US A Network of America`s favorite merchants
16Isis hits 20,000 daily wallet activations – per day 14. Mai 2014Isis hits 20,000 daily wallet activations – per dayISIS-Wallet daily activations68 NFC-Smartphones support the Wallet across three operatorsPreloaded on 14 SmartphonesOver redeemed Coupons at Jamba Juice in QUS mobile payments venture Isis revealed it has averaged more than 20,000 daily activations of its wallet app over the last 30 days, the first time it has lifted the lid on take-up since its nationwide launch last November.Its growth is double the rate of the prior month, said the venture, which is backed by AT&T, T-Mobile US and Verizon Wireless.Of course, activations do not necessarily translate into active users, which is the real test of whether the service has achieved popularity.In addition, the venture announced that 68 mobile devices support the wallet across the three operators, up from the “more than 40 smartphones” it revealed at the time of its launch last year.Today the wallet app comes preloaded on 14 smartphones, said the venture.Isis has courted US retailers, of which Jamba Juice has become a prominent supporter. It is giving away a free smoothie every time a consumer uses the mobile wallet to pay.Its stores have seen a more than 50 per cent month-over-month growth in wallet use, it said. By the end of Q1, Jamba Juice customers had redeemed over 270,000 free smoothies, and it expects to hit one million redemptions by the fall.Generally, data about user interest in Isis’ NFC-based payments service has been scarce, even before last November’s launch.Prior to commercial launch, Isis did reveal that acceptance of contactless payment doubled in the two US cities where Isis ran its trial. And that the average user in its Salt Lake City trial (one of the two cities) pays for goods or services five times or more per week using their handsets.Now Isis plans to make consumers feel more at home with mobile payments, according to CEO Michael Abbott (pictured). “We continue to offer compelling consumer deals – all with the goal of helping consumers become very more comfortable with mobile wallets.”
19Mobile Wallet contains different Services Debit CARDEC Card (national Debit)Credit CARDCouponLoyaltyRetailer CARD (Payment, Coupon, Loyalty)Digital ReceiptsRefund ReceiptsProductinformationInteraction with Smart-Shelfs, Smart-Posters….New services will come up soon - challenges for standardisation
20POS Interaction – Increase of technologies and interfaces at the retailer´s POS cash register - tillNFC-TerminalNFC-ReaderPhoto ScannerQR Code DisplayLaser ScannerBLE BeaconcameraNFCBLEQR CodeIFRW-LANSMSTechnologies / Interfaces1D / 2D BarcodesLaserscannerPhotoscannerBeacon / BLEBluetoothRFIDNFC-TerminalNFC-Reader separatetc.Es gibt theoretisch eine Vielzahl an Technologien, über die das Smartphone mit der Kasse / dem Terminal des Händlers kommunizieren könnenEs ist noch nicht klar, welche Technologie sich letztendlich durchsetzen wird oder ob mehrere Technologien relevant sein werdenErhebliches Investmentrisiko für Händler abwartende HaltungDie GS1 adressiert diese Thematik bereits in der Arbeitsgruppe (Erstellung einer Technologiematrix)Henne-Ei Problem: Händler sind abwartend, warten was der Kunde möchte. Kunden hingegen sind auch verunsichert ob der vielen Möglichkeiten und halten sich auch noch zurückGS1 Germany widmet sich diesem Problem und hat eigens für diese Thematik eine eigene Unterarbeitsgruppe gegründet, um die Händler zu unterstützen! Unter anderem wird gemeinsam eine Technologiematrix entwickelt, die den Händlern als Entscheidungshilfe dienen soll.Fakt ist aber auch, dass alle neuen ausgelieferten Terminals mit NFC ausgestattet sind, sodass eine relevante NFC-Abdeckung zwangsläufig zustande kommen wird. Insofern wird die Coupon-Einlösung über NFC immer relevanter, speziell im Hinblick auf die Komplementäre Nutzung mit Mobile Payment innerhalb einer Mobile Wallet (Konvergenz)!NFC - reverse vending machineRetailers are uncertain and not willing to make large investments at the POS!
21Confusion in today’s Digital Coupon Landscape BrandsRetailersConsumersHow to set up a successful couponing strategy?Which distribution channel should we use – wap, App, SMS, or others?How to set up cross-retailer campaigns?Is there a simple (self-service) tool that features performance measurement and real-time campaign management?What do consumers expect?Which technologies and interfaces exist and which ones are relevant for us?What does that mean for my investment in digital infrastructure at the POS?Threat: other players such as Cashback Couponing providersYes, I want coupons - but where can I redeem them and how?Which retailers support this coupon campaign?I do not want to download several coupon apps! Couponing has to be simple!
23Mobile Couponing Landscape Mobile distribution channelsMedia AgencyLead AgencySpecialized AgenciesProcessesBrands / coupon issuersRetailersClearing Houses
24Areas of tension in Mobile Couponing Prerequisite for the broad acceptance of Mobile Couponing: Efficient processes along the line from distribution to redemption!Coupon distributionCoupon redemption
25Areas of tension in Mobile Couponing Distribution: Not criticalChallenge: Redemption at POS12Receive couponRedeem couponpresentscanNFCBLE
26Coupon distribution Coupon Issuer Efficient coupon distribution across several distribution channels is limited today!Viele unterschiedliche Reichweiten meist nicht zentral über ein Tool steuerbar, viele ineffiziente ProzesseAbhängigkeit von Clearing-Häusern bei der Verteilung an die ReichweitenReichweitenanbieter (Wallet / App Anbieter - bspw. Coupies) stehen teilweise im Wettbewerb zur B2C Reichweite des Clearing-Hauses (z.B. eigene Coupon Wallets)händlerübergreifende, nationale Coupon-Aktionen können dadurch nur eingeschränkt umgesetzt werdenEingeschränkte Messbarkeit und somit unzureichende Erfolgsmessung der KampagnenKitKat Brand AppConsumer
27Mobile Advertising Campaign 1.0 No tracking possible – hoping for awareness!End of campaign!Ad ImpressionsVisitsbanner placementtillclicksCTR = 10%ConsumerMeasurement ???
28The Challenge - how to redeem mobile coupons at the till Frontend: POS / till:cash register - tillNFC-TerminalNFC-ReaderPhoto ScannerQR Code DisplayLaser ScannerBLE Beacon0,50€0,50€ günstiger!cameraNFCBLEQR CodeTechnology – Smartphone1D / 2D BarcodesLaserscannerPhotoscannerBeacon / BLEBluetoothRFIDNFC-TerminalNFC-Reader separatetc.IFRW-LANSMS
29Mobile Advertising 2.0 - CXP solves the measurement issue CXP enables measurement along the whole coupon cycle!Distribution:CouponsAd Impressions0,50€ off !Visits0,50€ off !1.000 redemptions at tillBanner placementCXPtillclicksDetailed reportsCTR = 10%Konsument5.000 clicksTill integrationCoupon is activated0,50€ off !Measutrement = Redemption Rate, e.g. 1% Performance Marketing!
30POS: Processing of digital coupons through the backend of the retailer Problem: lack of standards leads to incompatibility and less efficiency!Clearinghaus 11till1Clearingtodaytill2Industry /Coupon-IssuerInter-ClearingClearingClearinghaus 22till3Clearinghaus 33till4ClearingWe address this challenge in our working groups!
31Standardized communication based on EPCIS Standardized communication between retailers and and coupon service providersStandardized communication communikation leads to compatibility and optimized efficiencytillTOMORROW?Clearinghaus 1Clearinghaus 2Clearinghaus 3ClearingCoupon issuerStandardized communication based on EPCISClearingtillClearingBilderquelle: Google
32GS1 standards and data architectures in the Coupon-Cycle GLNGlobal Location Number:A unique identifier that refers to a specific location. A location could be an organisation, warehouse, retailer, platform or role.GTINGlobal Trade Item Number:A unique code, belonging to a specific organisaiton, that identifies a product at a packaging level.Global Service relationship Number:A unique code relating to a relationship with a specific consumer. For example identifying a unique consumer.GSRNGlobal Coupon Number:An identifier relating to a specific coupon and its use, business rules and creative. The GCN holds the generic information about that coupon (or series of coupons)GCNSGCNSerialised Global Coupon Number:This is a single, unique, instance of a GCN.
33Mobile Payment Pilot is based on NFC and Mobile Wallet Mobile Payment Pilot based on NFC und Mobile WalletCross MNO and Cross Retailer modelNFC-City BERLIN
34Vision of “NFC City Berlin“ The goal of “NFC City Berlin“ is to set up a lighthouse project that establishes the “Eco System“ of Mobile Payment.A critical mass and an impulse for NFC will be achieved by joining forces at the issuance side and at the point of acceptance.The Mobile Payment project will be established first at main market participants. Subsequently, the project will be extended by more participants and use cases.That includes harmonization of different services and transaction types such as couponing and ticketing but also parking, carsharing, access via NFC.The constant use of NFC services increases customer acceptance to use smartphones not only in retail but also in other services and Scenarios (different use cases).“NFC City Berlin“ considers basically:Customer acceptanceTechnical interactionBusiness models“NFC City Berlin“ is the first step towards an overall contactless communication and transaction at the physical POS.
35Goal of NFC City Berlin Customers Technique & processes AcceptanceUsageBehaviorTechnique & processesComplexity and functionalities of wallet & cash systemsProcesses & interactionEcosystem & partner modelsDevelopment and testing of business models“NCF City Berlin“ delivers important insights about the interplay of the different parties and components:CustomersTechnique & processesEco system & partner modelsThat enables the participating companies to position themselves strategically early in the Mobile Payment field.On this basis, all parties are able to refine their products and services.The participation in the development and in the implementation of a contactless payment infrastructure enables all parties to proactively form a strategic positioning within the ecosystem.
36Key objectives of the NFC City Project Support creating a partner model between the key stakholdersBuilding a sustainable eco-system togetherFiguring out the ideal Mobile Payment SolutionTesting the soultion(s) - User Experience / DesignOptimizing the processes between the Stakeholders and especiallyConsumer/Smartphone and Terminal/Cashier system / till of the RetailerGenerating insights concerning the customer acceptanceMeasuring transactionsGenerating Reportings concerning performance and huser behaviorGenarate insights for all stakeholder - also for value added service providersCouponingLoyaltyAdvertising and othersBuild focus groups to undestand customers needs – surveys in stores etc.Preparing roll-outsDeveloping and providing best practises and recommendations for the communityDefining standards
37Contact GS1 Germany GmbH Ercan Kilic Head of Mobile Commerce Maarweg 13350825 KölnTel:Mobile:Fax: