Going Mobile
By Glynn Davis | Published: 07 March, 2006
Mobile phones could soon be playing an important part in the marketing of shopping centres if a trial in four CSC malls and USS's Telford centre proves a success.
The three-month trial, operated by mobile marketing agency Redeemit, begins in March and initially uses a mobile phone-based prize draw to prove that mobiles, when used in conjunction with other media, can help to drive specific customer groups into shopping malls.
The Redeemit technology will make it possible for malls to accurately measure how effective each form of advertising is at attracting specific shopper demographics. They will be able to see that, for example, local radio advertising has driven 16 to 19-year-olds into the mall. Both CSC and USS hope this will allow them to better utilise their marketing budgets, improving the bottom lines of both retailers and mall operators.
Andrew Wood, chief executive of Redeemit, says: "There is a healthy cynicism of marketing [individual shopping centres] locally and we represent the opportunity for centre managers to add value to the marketing money being spent by the retailers at each centre. When this is aggregated up for a retailer located within various centres then it will provide a big uplift in sales."
Phase one takes place at Lakeside, Bromley, Uxbridge, Watford and Telford and involves running competitions to win prizes such as a plasma screen, which will be advertised in and around the mall using a variety of media.
Outside the centre this will comprise a mixture of six-sheet advertising panels, A1 posters and local radio ads while inside the malls there will be digital screens, point-of-sale posters, the centre's public address system and the malls' customer magazines.
Wood says: "We are creating an environment in the hinterland of the malls. The goal is driving footfall so we need to grab x million people outside centres and divert them in."
Each competition ad will include a short code number that the consumer has to text in to at a cost of £1. They will immediately be sent a 'voucher' to their mobile informing them that they can find out if they have won by visiting their local shopping centre.
At the participating centre they will then have to hold their phone over one of the Redeemit scanners that will be located on the customer service desks. Lakeside will use two devices, the other malls will have one each.
This scanner reads a unique code within their voucher - which is made up of a matrix of small black, white and grey blocks - and prints out a paper voucher that indicates whether they have won or not.
According to Wood this 'closing of the loop' - where it is actually known that the consumer has responded to an advertisement - is the Holy Grail of marketing because it proves the effectiveness of the different forms of advertising media. Because the competition adverts will include different short codes it will be possible to accurately measure how many people responded to each form of media. This will show the mall owners exactly how effective each advert has been.
"CSC is turned on by the persuasiveness of mobile phones. They know that they are a good thing to be involved in," suggests Wood.
And he is confident that the prize draw mechanic will prove effective at supporting CSC's belief in the potential of mobiles: "History dictates that many people will enter competitions if they are not expensive and they will not then be spammed."
Phase two of the project involves converting 'engaged' customers into actual increased sales for the retailers in the mall.
Once those customers that have entered the competitions 'opt-in' to accept future offers and promotions via their phones, their details will be stored in the Redeemit database. They will then be targeted by retailers in the malls who will be able to send targeted promotions to shoppers that fit their required demographic.
As in phase one this will involve the consumer scanning their phone over the Redeemit unit and a paper voucher being printed. This will include a barcode that can be taken to the relevant retailers' store in the mall. Once scanned at the point-of-sale the customer will receive the necessary promotional offer or discount.
Along with sending vouchers direct to consumer phones, the competition mechanic can also still be used. Wood has already signed up a retailer from the entertainment sector that is planning to run competitions whereby the printed paper voucher received by the customer will not only reveal whether they have won but also provide them with an offer that will then drive them into the stores.
"Such offers will only be available via Redeemit and will be in excess of any other promotions. And they will only cost the price of sending the short code text message in."
As consumers become more engaged with the Redeemit solution, data related to their preferences can be collected, thereby ensuring that they will only be targeted with relevant offers and promotions.
The success of phase two and the longer term future of Redeemit in the UK's malls will depend on retailers. Wood says: "Although it is just another channel between retailer and customer, being in the mall we can be more integrated. We will be asking what retailers want to get out of it, what data they want and what customers will be happy to receive."
The success of this ongoing activity will determine whether the concept is rolled out to other CSC centres and if other mall operators adopt it.
