Archive for August, 2009

First Moment of Truth & Mobile Coupons

Mobile Coupons & the First Moment of Truth (FMOT)

A few years ago, P&G (Procter & Gamble) introduced their findings that brands have “three to seven seconds to win the consumer” in-aisle. First Moment of Truth (FMOT, pronounced EFF-mot) are the 3-7 seconds after a shopper first encounters a product on a store shelf. It is in these precious few seconds, P&G contends, that marketers have the best chance of converting a browser into a buyer by appealing to their senses, values and emotions. Other Consumer Packaged Goods companies proceeded to assign FMOT directors to develop FMOT marketing strategies to win the consumer in this shopping inflection.

While in-store marketing certainly isn’t new to anybody involved with digital merchandising initiatives like touchscreen kiosks and digital retail signs, the advertising world at large traditionally didn’t pay a lot of attention to it, instead choosing to focus on mass-media like TV, print and radio. So over the last few years, marketers have testing new ways to attack FMOT.

Today, everyone is looking at mobile – THE just-in-time retail solution to compliments any FMOT strategy. So how do you make that item you’re marketing make it into your customer’s shopping cart? On average, 80 percent of the consumer’s shopping list is bought. However, the shopping list only account for 40 percent of their final basket. This allows for a fair amount of freestyle shopping and FMOTing.

One influential factor could be a mobile coupon. Traditional paper coupons produce 0.05 percent redemption. But mobile coupons enjoy a 20 to 40 percent higher redemption rate than paper.

Grocery stores including Kroger and Safeway are testing solutions that take mobile offers and link them to store cards. Mobile coupons are selected on the phone and transferred to the physical loyalty card which is swiped at checkout. In recent trials with J.C. Penney in Houston, the company tested 2D codes presented on the phone. These codes were then scanned with specially installed image scanner at checkout. Traditional laser scanner cannot read the screen because of refraction.

All encouraging news for 2-D barcodes, but the sample size is still small. The challenge will be growing the installed base of mobile-powered consumers.

Other reasons to use Mobile Coupons to effect First Moments of Truth:
1. It is cost-effective. Unlike newspaper coupons, you only pay for engagement.

2. Mobile Coupning represents a NEW demographic. The retailer is not cannibalizing the existing paper coupon consumer. Statistics show that 30 percent of mobile coupon users have never clipped a paper coupon.

3. The medium allows for onward engagement. Unlike paper coupons, you have a two-way channel.

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August 17, 2009 in Blog   |   No Comments