There has already been a lot of buzz recently around how mobile devices like the iPod Touch and iPhone have potential to be 
deployed as Point of Sale (POS) devices. However, another significant opportunity emerging for retailers is the chance to connect with the millions of mobile devices through their existing POS systems.
At this week’s Retail 3.0 Virtual Conference & Expo, one of the online seminars focused on next generation mobile strategies and highlighted the emerging opportunities to drive loyalty and purchases with real-time promotions integrating mobile devices and conventional POS equipment. Gary Schwartz, Founder & President of Impact Mobile, pointed to several potential strategies for mobile integration in his presentation “Connecting Your Touchpoints.”
Schwartz, who is working with the National Retail Federation (NRF) and the Mobile Marketing Association (MMA) to drive a joint task force on retail with a vision to build a "Mobile Store of the Future," stressed that retailers need to tie the mobile phone to the market basket. “Consumers are using their mobile device as a communications tool and if retailers want to establish communication with the mobile consumer they need to develop a relationship with the mobile phone number and establish a two-way conversation,” Schwartz said.
A privately held company headquartered in Toronto, Impact Mobile activates traditional and digital media and helps drive consumers to high-ROI destinations such as retail point of sale. Once retailers have demonstrated value and gotten consumers to opt-in to a relationship, Schwartz pointed out that retailers have the ability to drive core performance goals, such as:
- Increasing in-store traffic
- Increasing Web traffic
- Offering Just-in-Time Deals, and
- Promoting Trials
While many retailers have rushed out to develop an iPhone App to connect with mobile customers, Schwartz suggested they may be better served by focusing on SMS and mobile Web offers. He pointed to research showing most consumers only regularly use between 1 and 5 apps they download, and many apps just become wallpaper and are forgotten by consumers.
Rather than trying to take consumers to a separate app, Schwartz shared research showing SMS/text and Internet were by far the most popular kinds of usage and recommended retailers focus on extending relevant offers via SMA and mobile web channels. “Mobile marketing allows retailers to keep the conversation going with consumers are out of your store,” Schwartz said. “It also helps you activate all of your other channels and builds a bridge to POS, Web and CRM programs.”
Mobile may represent a new sales channel, but Schwartz pointed out that it can serve as a horizontal push to support vertical programs. “All of the traditional promotional channels retailers use—coupons, flyers, shelf-talkers and POS—can all be optimized via mobile,” he added. “The goals shouldn’t change, mobile just enables retailers to digitize paper and run those promotions in a cost effective way.”
Although he admitted mobile coupons have created redemption challenges for retailers and consumer products companies, Schwartz pointed to PIN codes as a big opportunity which could be managed with existing POS equipment. Pointing out that large consumer brands have seen incremental sales lift of 15% and 30% on proof-of-purchase PIN codes which are delivered on packaging, he suggested retailers should sample “PIN-on-receipt” promotions.
Schwartz said Impact Mobile is currently integrating into various POS networks to allow for “dynamic PIN allocation to terminals which can be provisioned in batch or dynamic processing. The PIN-on-receipt allows for immediate redemption with mobile and online redemption, which “drives business intelligence, revenue and growth for CRM programs” while the customer is still in the store environment. After printing the PIN number on the receipt after the customer has made a purchase, that customer can then enter the PIN instantly via SMS, which provides instant and measurable redemption information, and supports a 1-to-1 relationship with customer.
Impact Mobile is also successfully piloting “single-click” m-commerce applications, Schwartz said, where after an initial PCI compliant transfer of credit card information on their first purchase, consumers are “single click enabled” for all future purchases from their mobile phone.
