How Mobile Operators are enabling digital coupons

Paul Crutchley
Strategic Engagement Director - GSMA

2
© 2014 GS1
 GS1 & GSMA. A great match

Not for profit, member controlled, for more than

40 years
111 national organisations…
2,000 staff

…150 countries served

Close to 2,000,000 member companies

25 different industries

© 2014 GS1
 Retail is more than just a transaction

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.

Increase footfall Combine eyes with feet Build affinity over time

High Street/ Store Purchase Affinity

Customer
Customer
Customer

Customer
Targeting
Targeting
Targeting

Targeting
Shopping Centre

5000 500 200 100

people people people people

Increase with
strategic engagement
Know Your Customer

© 2014 GS1
 Consideration of interoperability and
collaboration
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.

At PoS On the mobile Within the process

Set up and
Communicate

Purchase +
Couponing / Loyalty Validation and Discovery and
Redemption Acquisition

Reporting and
Time Sensitive Presentment
Settlement

© 2014 GS1
 2013 / 2014 progress of the retail work

• 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.

© 2014 GS1
 GSMA’s target markets: collaboration &
interoperability

Global reach
Promoting innovation, interoperability, collaboration
& standardisation

© 2014 GS1
 This joint opportunity was not to be missed.
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

© 2014 GS1
 At risk of ‘hyper fragmentation’ in mobile
apps

Today
1 Retailer/Brand & 1 Operator

Potential
fragmented
future
X Retailers/Brand & X Operators

Collaborative
future
X Retailers/Brand & X Operators

© 2014 GS1
 Single to Mass Market

Brand open loop

couponing solution

Multiple Brands
Brand closed loop Brands open loop
closed loop
couponing solution couponing solution
couponing solution

Merge Merchants
Merchant closed Multiple Merchants Merchants open
& Brands open
loop couponing closed loop loop couponing
couponing solution
loop couponing
solution solution
solution

Merchant open
loop couponing
solution

© 2014 GS1
 Prior to discussing Acceptance and
Distribution
Assumptions

Transfer
Technical Open
Can create a Understand mechanisms
capabilities coupon
coupon ecosystem (NFC/BLE
(applets etc) format
etc)

Objectives:
Understand Discuss and
Create and
retailer determine
Determine Identify new agree a
distribution ideal digital
customer areas within common
to mass
journey ecosystem way of
settlement distribution
thinking
ecosystem process

© 2014 GS1
 Next - Making couponing and loyalty mass
market

OFFER ISSUER
SETTLEMENT
CAMPAIGN MGT
& REPORTING

COUPON DATA
POOLS

OFFER COUPON EVENT OFFER/ COUPON

VALIDATOR REPOSITORY DISTRIBUTORS

RETAIL
CONSUMER
ECOMMERCE &/
STORE POS
MOBILE Key:
Distribution
Acceptance
Redemption

© 2014 GS1
 Data modelling exercise as part of the
development
Offer Issuer Data Pool Event Validator Store Settlement
Repository GCN SGCN
GTIN
GLN Merchant SGCN Parameters
GTIN
GLN Merchant GLN Settlement GTIN

GLN Merchant
GLN Distributor
GLN Event
GLN Validator GLN Event

Creative Parameters
GCN

Parameters GSRN

SGCN (burn) Distributor

Campaign GLN Settlement
SGCN GLN Merchant
Consumer
Manager / GLN Distributor GCN (range 1)
GLN Merchant

Agency GCN (range 2)

GSRN
GLN Validator
GLN GSRN Creative

Creative SGCN (burn)

GCN
SGCN (burn)
SGCN
SGCN

Parameters

© 2014 GS1
 What’s next - What Needs To Be Built
The following need to be added:
• Coupon Data Pool for the issuance of campaign coupons Coupon
Datapool
• Coupon Event Repository as the single truth for campaign
redemptions
• Campaign management platform to interface to the Coupon
Coupon Event
Data pool, Coupon Event Repository, distributors and Repository
settlement
• Possibly a marketplace of offers working with distributors
Campaign
We believe these additions create new opportunities for the Management
ecosystem
• Ecosystem players may fulfil one or all of these new functions
• A market may have a single Coupon Data pool and Coupon Marketplace
Event Repository, or many

© 2014 GS1
 This process with mobile can deliver these
benefits
• 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

© 2014 GS1
 Our Next Steps

• 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

© 2014 GS1
 GSMA’s digital commerce retail project
2014/15

“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

© 2014 GS1