Harvester Restaurants’ couponing success

I missed this case study first time around, but since I seem to be thinking a lot about mobile and retail at the moment, I thought it worth sharing.

Harvester is a chain of family-friendly restaurants with 200 outlets across the UK. They’re open seven days a week and offer grills, sauces and sides, as well as a brunch menu and vegetarian options at very competitive prices. I haven’t been to Harvester restaurant in almost 30 years, so I can’t comment on the quality of the food but I have friends who enjoy it.

To attract new customers and to build repeat business, they rely on regular offers and you’ll see their website shows the latest offers and the latest menus. When the Apple Passbook arrived on the scene, mobile advertising firm, Millennial Media, teamed up with mobile couponing firm, Eagle Eye, to create a campaign to drive customers to store.

According to Gavin Stirrat, MD EMEA for Millennial Media, they served display adverts to iPhone 5 users and those who had upgraded to iOS 6, with a skew towards families. When you clicked the banner, you reached a landing page communicating the offer - £5 off when you spend £30 or more -  and the call-to-action to add this to your Passbook. Eagle Eye then pushed the individually coded coupon to their smartphone. No additional customer details were required making the process as seamless as possible.

Once the voucher was loaded into Passbook, you could redeem the voucher in the restaurant via the restaurant’s existing Chip & Pin terminal. In this way, it was possible to measure redemption rates and ROI. The campaign ran for two weeks and in that time, 16,000 vouchers were issued and around 700 were redeemed offering a 4.4% redemption rate. As the offer was for a minimum spend of £30, it drove at least £21,000 in revenue. And remember, this was just marketed to a subset of iOS customers who had iPhone 5 or iOS 6 so they had the improved Passbook functionality.

It seems that even iPhone 5 customers like a bargain…

More on Millennial Media’s site here and here. Press release on Eagle Eye’s site here.

Further reading on how digital can drive customer engagement, footfall and loyalty in the High Street from Eagle Eye’s Andy Smith in British Retail Consortium’s Winter 2012 publication. (It’s one of those magazine reader thingies so it won’t work on a tiny mobile screen).

Monday musings

• Bill Thompson discusses security risks in the new i-phone and the wider implications of a networked customer base and how the corporates need to adapt to our needs and not the other way round. I think he has a point but it's a challenge.

• The BBC suspended all phone competitions last week and is under scrutiny from Ofcom for malpractice over the phone lines and fake competition winners to a variety of programmes including Children in Need, Comic Relief and Blue Peter. The media has also responded.

• Any phone can be a credit card as the clever folks at Masabi has come up with a new way to manage secure transactions using your mobile phone using just 3kb of handset memory.

• Desperate for the loo? Don't know where your nearest one is? Then help is at hand with Mizpee. Trouble is it only works in the US and I find it hard to believe they have every single loo in the US on their database. But hey, maybe they have. Anyone tried it?

• User generated content, social media and how to make money from it. Well these were the topics tackled by the w2forum last week. Unfortunately, no-one had any definitive answers as it's still too early to know how best to monetise this area.

"Roy Vella, Head of Mobile Payments at PayPal, summed up the feeling in the room when he pointed out that none of the best-known social networking sites on the web, such as MySpace and FaceBook, were initially about monetisation, and that “the monetisation stuff” is only happening because there are so many eyeballs.
“You want to know how do big companies make money out of all those eyeballs” said Vella. “The answer is, I don’t think we know yet.”

Vella also warned brands that they would need to exercise caution if they were going to try to establish a presence on social networking sites, mobile or otherwise. “If you threw a party and a corporation showed up, how would you feel about it?” he asked. “It’s a new space, and we all have to tread carefully. The way to succeed is the way it has always been – to delight customers.”

• Half a million web 'n walk users on t-mobile in the UK and expected to rise to 1m by the end of the year.

• Nokia has launched a mobile gig guide for Leeds and Reading festival.

Nokia and Mastercard are teaming up on mobile payments

This looks like an interesting mobile payments development...

"Consumers will be able to use a phone as a wallet or as an access card simply by waving it over a wireless reader -- and in some cases punching a PIN number into the phone -- similar to how travelers in Tokyo and London access public transport (referring here to the brilliant Oyster Card that we use in London for all London Transport services).

...The world's biggest payment card company, MasterCard, is also involved in the initiative, which is cheaper and much faster than other wireless payment experiments, like those using SMS text messages. Trials with the new standard are set to start in October." (via Reuters)

So I wonder a) if this will take off and if it does b) where this will leave the likes of Paypal by mobile, Luup and the like. The mobile payments war is definitely still not won yet and this is still very early days.