The Pesky PIN problem:
Mobile PIN usage in quick service restaurants (QSRs) as a way of driving sales is as old as mobile marketing - successful promotions hit the street ten years back in the UK. The challenge has always been providing a simple mechanism to print a proof of purchase PIN.
Coca-Cola’s mobile PIN solution is easy: They have an existing mechanism for PIN provisioning under cap. Now, some QSRs have run mobile PIN on products by stickering or putting codes on wrappers and cups. When SUBWAY ran a “text the PIN” hockey-related promotion five years ago, national sales rose by 15 points over a similar period the previous year. However, franchisees don’t like to sticker.
However, inserting proof-of-purchase PINs in-product to run a promotion is a logistical challenge, especially for a franchised chain. Therefore, the market needs to work on a way of taking PIN provisioning pain off the table. There are only two options and they are both at retail point of sale:
1. Automated EPP (Electronic Proof of Purchase)
EPP can be used to trigger a credit event off a shopper’s loyalty card based on purchase behavior. If there is an existing mobile opt-in, SMS can be sent to shopper advising them of the credit reward after a single purchase or based on a group of product bought. The retailer can allow for “good” breakage by requesting the shopper’s respond to the SMS for a credit to be triggered.
2. Dynamic PIN-on-RECEIPT
Likewise, a mobile PIN can be printed on the receipt based on purchase behavior. This is a more optimal channel as there is natural breakage as well as the opportunity to capture mobile opt-in. As long as the retailer has an always-on PIN reward at the bottom of the receipt based on end cap call-to-action, this channel can be effectively used for airbonus, mSurveys, general mPromotions and of course mCRM activation.
Importantly, the solution does not slow down the aisle or require the retail clerk or franchisee to do anything beyond business-as-usual. Fraud is unlikely (unless the clerk pockets the receipt) and we are entering into a mobile relationship with every participating shopper.
Whether the manufacturer or the retailer do the work, the reward for all parties in the value chain is too great to be ignored. Everyone wins: Carrier, service provider, manufacturer, retailer, and, of course, the consumer.
