How to build an opt in brand

proposition that has longevity

The New Revenue Growth & Loyalty

Story

3rd October, 2011

The global leader in mobile marketing and advertising

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mCRM

Gaming

mCare and Services

mCommerce

Loyalty Programs

Mobile Marketing

Mobile Advertising

We manage mobile experiences

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Permission based marketing programs – operators

examples

Surprise & Delight /

Collect points

I-Ticket Promos &

Games

Permission Based

Advertising

Operator invests

Operator invests / customer pays

Operator invests / customer pays

Advertiser invests

Orange Spain ‘Top-up and win’

Vodafone Greece: Loyalty ‘2 for 1 i-Ticket’

T-Mobile USA ‘4G Payday’

Vodafone Portugal

‘Promo 4u’

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Each proposition starts with the customer

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People like promotions and offers

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Over 70% of consumers surveyed use discounts,

promotions or coupon services like Groupon

Source: Recent study conducted by Velti & DMA, Sept,. 2011

And people want relevance

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Source: New research by Ipsos Mori and The Logic Group. Johnson, Mark. “11 Customer Loyalty Trends for 2011”, HotelMarketing.com: Nov. 25, 2010

48% of people feel personally relevant deals are

the second most frequently chosen reason for

spending more with a company

Data personalises dialogue and offers

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Initial Operator Initial Data

During the program data

Campaign Response Preference

Usage behaviour

Purchases Profit

Demographics +

Vodafone Portugal uses customer preference for ads

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Decision making is mostly emotional

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Source: Johnson, Mark. “11 Customer Loyalty Trends for 2011”, HotelMarketing.com: Nov. 25, 2010.

70%

30%

Rational

Emotional

Use different engagement techniques for profitable

and rewarding customer dialogues

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Rational Save Please

Emotional Thank You Surprise &

Delight

Website

SMS

http://lacomunidad.elpais.com/movilesespana/2010/9/26/recarga-y-gana-con-orange PR:

Program WEB Portal

TV Commercial

Orange Spain Rewards Customer Top Up

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Consumers are social

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If Facebook was a country Over 70% of it would

be the 3rd biggest country in the World. Bigger than

the USA and just behind India and China

Source: Facebook, Jan 2011

Encourage customers to amplify through social media

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men

woman

Orange Spain recruits customers via social media

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Mobiles are used more for games than social networking

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Over 60% of people surveyed use their phones for

gaming Vs 49% social networking

Source: Microsoft Tag, March 2011

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Adopt a gamified approach

T-Mobile USA celebrates having the largest 4G network

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People care strongly about their hobbies and interests

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Over 60% of young people would rather

give up sex than music

Source: Marrakesh Records and Human Capital, February 2009

Cinema-themed

Sports-themed

Lifestyle-themed

Music-themed

Link promotions to customer affinities

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Current 3rd party Offers Information launched on VF Websites

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Vodafone Greece allows customers to take friends out for

free and uses mobile coupons

43%

37% 35%

27%

Research Purchase direct to bill

Experience enhancers

Purchase via card/bank details

Source: IAB Consumer M-Commerce Study October 2010 Base All UK Mobile Users (1039)

Consumers are starting to purchase via their mobile

phones, including research and direct purchases

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*Experience Enhancers include coupons, status on purchased items, buying alerts, loyalty schemes and ticketing

CONFIDENTIAL & PROPRIETARY

Argos mobile club makes shopping easier for its 6m+

opted in customers

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47%

42%

33%

32%

29%

26%

25%

11%

11%

7%

out and about

the easiest way of doing it

it provides me with useful info*

spontaneous / impulsive decision

means I don't have to carry so much stuff*

no other online access

experimentation

it's the only way of doing it

knows where you are - more relevant info*

felt like the most secure way

Why did you use your mobile for researching/buying?

Source: IAB Consumer M-Commerce Study October 2010 Base: All respondents who are involved in each area of M Commerce * Indicates this option was only asked of one area of M-Commerce

Easier shopping via mobile is valued by consumers

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NFC will extend mobile commerce even further in the real world, making

PBM and loyalty programmes even more important

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Touch to Share Touch to Discover

Touch to Pay Touch to Ticket

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True customer value and dialogue are the ingredients for

successful a PBM brand

Rewards and

valuable services

Rich Profiling

and relevance

True customer dialogue, not just selling

Connecting with

customer affinities

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Please visit our breakout session for more details

and new research results on PBA

Stephen Upstone VP Sales and Business Development

supstone@velti.com