Tony Lillico, Deutsche Telekom How Mobile Can Support Retail and Retail Customers

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1 Tony Lillico, Deutsche Telekom How Mobile Can Support Retail and Retail Customers

2 Video : The ISIS Experience Tony Lillico 2

3 Agenda. Introduction Deutsche Telekom and its NFC based products My Inspiration Couponing Case Study in Japan The Customer Journey Beyond the Store Check-in While Shopping At POS Conclusion Is Cooperation the Key? Tony Lillico 3

4 Introduction DT Worldwide Technology Business with Telecoms businesses in Europe and the US Mobile businesses operate mainly under T-Mobile, Telekom and Cosmote brands. 50% shareholder in EE business in the UK. On-line payment business acquired in Tony Lillico 4

5 DT : NFC and Related Services To Follow... +? Tony Lillico 5

6 My Inspiration Felica established as an early NFC technology in Japan. Osaifu-Keitai (Mobile Wallet) services launched by NTT Docomo in 2004 and subsequently rolled out across all operators. Joint venture between McDonalds and NTT established 2007 to plan and manage e- marketing promotions to McDonald's newly planned membership club, and the introduction of DoCoMo's id platform for mobile-phone credit cards and ToruCa information-capture service at McDonald's stores. Live service now replaces untargeted paper coupons with highly targeted NFC coupons. Customers opt-in by joining the McDonalds Club, the perceived value of targeted coupons has encouraged huge take up. Tony Lillico 6

7 My Inspiration : The Experience Customer signs up for McDonalds club including agreement on data usage. Pays for food and drink using felica mobile phone. Customer purchase behaviour recorded by loyalty systems. Coupons targeted at customers to encourage additional purchases At times they don t normally use the restaurant Of items they would not normally purchase Win win situation as customers perceive additional value, and McDonalds get a much more targeted couponing scheme. NTT see additional phone usage and adds an additional attraction to its portfolio of wallet services. Tony Lillico 7

8 The Customer Journey Opportunities for Enhancements with or without NFC Beyond the Store NFC tags or QR codes on posters, delivering information or discounts. LBS or indeed links from other mobile services provide targeted information on nearby offers. Coupons delivered based on past behaviour. Vouchers downloaded to phone from web site. Store entry Tapping into store (using NFC tag) enables delivery of targeted offers. Tony Lillico 8

9 The Customer Journey Opportunities for Enhancements with or without NFC While Shopping Tags or QR codes provide additional information on products, link into web site. Inform store of potential customer interest even if they do not buy this time and opens the possibility of immediate incentives to purchase. At POS NFC payment speeds up the checkout process. For SE s QR initiated remote payment or handset based POS devices may reduce costs of improve customer experience. Redemption of vouchers and coupons simplified by NFC. (QR codes interim solution but less flexible). Loyalty schemes transferred to NFC offering new opportunities for customer and retailer. A wallet may only accommodate 1 or 2 loyalty cards but an NFC wallet can handle many more and the consumer always carries their phone. Some MNO s may offer packaged POS services, including equipment and data connections. Tony Lillico 9

10 Conclusion Is Cooperation the Key? GSMA / MNO s and Retailers / Retail Community NFC and related technologies open up new possibilities, based on innovative use cases. MNO s and Retailers both come to the table with different experiences, assessing threats and opportunities from the mobile technology. To ensure an acceptable customer experience from NFC a degree of cooperation is needed. Industry Level (especially for standards) Close bilateral partnerships or JV s such as the NTT-McDonalds may be appropriate in some cases. Key Issues Building win-win business models Innovating to grow the revenue pot v fighting for it. Building a great customer experience for a shared customer. Training, support, promotion, rollout, managing feedback, Tony Lillico 10

11 Thankyou for listening! Video : My Wallet in Poland Its all you need (on you) Tony Lillico 11