Mobile Couponing Guidelines (v1.2) Mobile Marketing Association MMA ppt

www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page1of10     MobileCouponingGuidelines(v1.2) March2011   MobileMarketingAssociationMMA www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page2of10  MobileCouponingGuidelines(v1.2)  PURPOSE 2 COMPLIANCE 2 OVERVIEW 2 DISCOVERY&REDEMPTIONMETHODSOFMOBILEPRICEPROMOTIONS 3 FIVESTAGESOFMOBILEPRICEPROMOTIONS 4 MOBILECOUPON/REBATECAMPAIGNBESTPRACTICES‐PRINCIPLES 5 MOBILECOUPONANDREBATESGUIDELINES‐CONSUMERNOTICE 7 REFERENCES 9 WHO WEARE 10 CONTACTUS 10 GLOSSARYOFTERMS 10   Purpose  Thefollowing documentpublished bytheMobileMarketingAssociation(MMA),outlinesGuidelinesand Best Practices in Mobile Price Promotions, specifically coupons and rebates delivered and redeemed throughthemobilephone.  Ourgoalistocreateanenvironmentinwhichtolaunchandprocessmobilepricepromotionsefficiently. This document intends  to define the terms, general processes and best practices for all the parties participating in and enabling mobile coupons and rebates for uses to increase sales and promote consumerloyalty.  Compliance  AllprogramsshouldberuncongruouswiththeletterandspiritoftheMMACodeofConductforMobile MarketingandtheConsumerBestPracticesGuidelinesforCross‐CarrierMobileContentPrograms.  At all times, programs must be in accordance with applicable local (federal and state) laws, rules and regulations.   Overview  CouponsandRebatesare issuedbybrandsorretailerstobeusedasapartofsalespromotionsfortheir products.Otherusesincludeattractingcustomerstoentertainmentattractions(amusementparks,zoos, museums,etc.)andservices(salons,spas,etc.).Thedifferencebetweenacouponandarebatehastodo withthetimingofthereward.Acouponprovidesanimmediatediscount,reducingtheamountowedfor the purchase.A rebate provides a delayed discount, returning the amount to the consumer after the www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page3of10  purchase – through a check, electronic funds transfer, statement credit, loyalty points or voucher/card goodforfuturepurchases.  MMAdefinesMobilePricePromotionsaselectroniccouponsorrebatesthattraversethefullredemption process without the requirement  for conversion into a paper or other hard copy format.While any individual step in the overall redemption process may occur manually, these coupons and rebates can eitherbediscoveredorredeemedviaamobiledevice.  Mobile Price Promotionsare often distributed through avarietyofmobilemeansincluding:SMS, MMS, MobileApplications,MobileWeb,Bluetooth,NFCand1D/2Dbarcodescanning.  Discovery&RedemptionMethodsofMobilePricePromotions  Physical / Traditional Media: Mobile Coupon offers can be presented in traditional media such asprint, outdoor, TV, ra dio, direct mail, in‐store signage/collateral, and product packaging. Coupons presented through these methods includeboth a call‐to‐action and appropriate disclosures regardingany costs to theuserwheninteractingwith thecall‐to‐action.  Digital/ InteractiveMedia:MobileCouponofferscan  bepresented  onwebsites,webads,email, mobile websites,mobileapplicationsandmobilebannerads.Inthesescenarios,thereisacall‐to‐actionresulting from‘clicking’ontheofferthatprovidesdirectionstotheuseronhow toreceivethecouponforusewith themobiledevice.  Examplesofcalls‐to‐action: • Enterphonenumberonawebpageentryformtoreceivecouponviatextmessage • Enterphonenumberonawebpageentryformtoreceiveinstructionsonhowtogetorusecoupon onthephone • SendatextmessagewithaKeywordtoShortcodetoreceivecouponorinstructions • ‘Clickhere’tosave/sendthecouponto[mobileapplication] • Go toawebsitetoviewordownloadthecoupon • Scanordiala1Dor2Dbarcodetohaveacouponsenttoyourphone • SavetoloyaltycardorusersuniqueID  Mobile Coupons are redeemed by consumers by presenting the mobile device or unique identifier at checkoutina retailenvironmenttoobtaina discount at the pointofsale. The redemption processmay occuroneofthefollowingways:  • Consumer Packaged Goods “CPG‐Style” environment: In some cases multiple parties (brand, retailer,franchisees,distributionvendors,etc.)areinvolvedinamobilecouponpromotion.This willrequire thecouponredemptiondata tobeforwardedtoacouponsettlementprocessor,or directlytotheissuer,forreimbursement.  • Closed Loop System “In‐Store” environment: In some cases, the coupon issuer and coupon redeemerarethe same, meaning that nofinancialsettlement is required.Nothingbeyondthe validationofthecouponisrequiredforredemption.  Mobile Rebates can be redeemed by the consumer by texting the appropriate code, scanning a 2D barcode or visiting a mobile site or application.Upon receipt of the necessary proof of purchase www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page4of10 transmitted via a mobile device, the reward is distributed directly to the consumer in the approved manner(check,rewardcard,electronicfundstransfer,etc.).   FiveStagesofMobilePricePromotions  1. SetupandCommunication:Thisstageisnecessarytoensurethatallofthepartiesinvolvedinthe processarepreparedtoactwhenaconsumermeetstherequirementsforredemption.Thismay be an internal process for mobile rebates and “store coupon” type mobile coupons. Alternatively,thismaybe amulti‐organizationaleffortfor“CPG‐style”mobilecouponsrequiring financialreconciliation.  2. Discovery and Acquisition:This stage is when the consumer finds and selects (or opts into) a mobilepricepromotion.Amobilepricepromotioncanbedeliveredinavarietyofways:  a. Pull:Theconsumertakesaction toreceiveaspecificmobilepricepromotion i. Shortcode:Theconsumermustsendatextmessagetoashortcodetoreceive apromotion. ii. Application: The consumer must download an application andthen activate it toreceiveapromotion. iii. Bluetooth:TheconsumermustactivateBluetoothtoreceive apromotion. iv. 1D/2D Code: The consumer must scan the code with the mobile device’s cameratoreceiveapromotion. v. MobileDialCode:Theconsumerdialsaspecialnumbertohaveacouponsent tohis/herphone vi. BannerAds:Theconsumerinteractswiththemobileadunit.  b. Push:TheMobilePricePromotionisdeliveredtotheuseronlyaftertheinitialopt‐inor approval. 1  i. Messaging: The  promotion is delivered through standard messaging formats such as SMS, or WAP push, or enhanced messaging services such as MMS whichisarichergraphicalformatwithimagesandtext. ii. Application: The promotion is delivered to a resident application without the needofinterventionofthe user. iii. Bluetooth, NFC, or RFID: The promotion is delivered to a passive consumer withinaspecifiedproximity.  3. Presentment: This stage is the way that the consumer presents the coupon for validation and redemptionatthepoint‐of‐sale.Tobeamobilepricepromotion,thepresentmentmustinvolve the consumer giving/showing/interacting with something other than a piece of paper (aka a traditionalcoupon)andinvolvessomeactivityrelatedtothemobiledevice.  a. Methodsofpresentmentforamobilecouponinclude: i. Reading acodefrom the mobile device’sscreenandmanually entering it into thepoint‐of‐ salesystem. ii. Using the point‐of‐sale scanner to scan a code from the device’s screen or loyaltycard. 1 AnypushpromotionshouldbeincompliancewiththeMMAConsumerBestPracticesandGuidelines.Formoreinformation,please visithttp://mmaglobal.com/bestpractices.pdf . www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page5of10  iii. Transmission of offer information data into the point‐of‐sale system via BluetoothorNearFieldCommunications(NFC). iv. IntegrationwithaloyaltycardoruniqueID. v. Enteringthemobilenumberintoapinpad orpointofsalesystem.  b. Methodsofpresentmentforamobilerebateinclude: i. Textingauniquecodetoashortcodediscoveredinsideproductpackaging. ii. Scanningabarcodediscoveredinsideproductpackaging. iii. Enterinrebateinformationintoamobileapplicationormobileweb.  4. Validation and  Redemption: This stage ensures that only valid mobile price promotions are honored and attempts at fraud or system manipulation are thwarted.Assuming the consumer meetsthequalificationsforthereward,thesystem(point‐of‐saleforcoupons,cashdistribution systemforrebates)willgrantthereward.  5. Reconciliation: This stage  is necessary for mobile coupons and specifically for those in a “CPG style” environment (involving 2 or more parties cooperating ona promotion, such as a retailer anda manufacturer).Itprovidesamethodfor getting thedataoutofthe point‐of‐salesystem and getting it into a reimbursement process.The ultimate goal is to ensure that the coupon issuer (usually a brand) and the coupon recipient (usually a retailer) get the tracking data and financialreimbursementthateachexpectsinatimelymanner.Thisprocessisusuallymanaged by a coupon clearinghouse.Thefive stages of Mobile  Price Promotion were adapted from the Association of Coupon Professionals Digital Coupon Guidelines, "Digital Coupon Process", 12/2008.http://www.couponpros.org/resources_digital_coupons.shtml .  MobileCoupon/RebateCampaignBestPractices‐Principles  The following five principles are intended to apply broadly across wireless platforms in which coupons may be distributed. They are not meant to  be overly restrictive or prohibitive, but to only provide a frameworktothosethatdistribute,develop,andpublishcouponsonwirelessplatforms.Theyaremeant tohelp protectbothconsumersandbusinessesaswellashelpmaintainthereliabilityandintegrityacross thecoupondistributionindustry.  1. Honest, Trueand Fair: All couponsplacedin themarketfor distribution must behonestand in goodtaste.Couponsshouldbeconveyedinatruthfulandnotdeceptiveor misleadingmanner.  2. Content and Placement: Good taste must always govern the content, placement and presentation of the coupon. All coupons should be  prepared with proper consideration of the typeofproduct being advertised and theaudience to whom the advertising or promotions are directed.  3. Transparency: The corporate name,  product name, or trade name should be identified, clearly, prominently and visually. Developers, publishers or the advertised products corporate entity should have amechanisminplaceforconsumer feedbackon the coupon. All rules that govern thepromotion,i.e.,expirationdates,limits,etc.,shouldalsobemadecleartothe consumer.  4. Price and Value: All prices and values must be confined to specific facts and presented in a prominent,fairandaccuratemanner.  5. Privacy and Security: Privacy should be respected and user consent, opt in, opt out and other www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page6of10 usertermsandconditionsshouldbeavailable. 2   MobileCoupo n/RebateBestPractices‐Campaign‐Specific  Inthespiritoftheaboveguidingprinciplesandinordertoprovideanatmospherethatincludescustomer safetyandisfreefromconsumerabuseandfraudulentbehavior,thefollowingarerecommendedcontent bestpracticesindevelopinganeffectivemobilepricepromotioncampaign:  ‐ Avoidpromotionofanyillegalserviceorproductthatfacilitatesillegalbehavior; ‐ Avoidanycontentthatmisleadsconsumers; ‐ Avoidcontentcontainsextremeprofanity; ‐ Avoidcontentthatcontainsmisleadingorfraudulentclaims; ‐ Avoidcontentthatpromotesorglamorizesalcoholabuseorillegaldruguse; ‐ Avoidcontentthatisdefamatory,libellousorthreatening; ‐ Coupon publishers who intend to reach children should follow all The Children's Advertising Review Unit (CARU) Guidelines 3  as well as understand and account for a child’s limited knowledge, experience, sophistication and maturity of the audience to which the coupon is directed; ‐ Alltransmittedmaterialmustcomplyandconformtoallapplicablegovernmentallaws,rulesand regulations; ‐ All coupons should comply with applicable standards, including applicable marketing and advertisingstandards,adoptedbyvariousassociationsforspecificproductsandservices.  • Contests o Couponsthatincludecontestsandsweepstakesmustclearlyandconspicuouslydisclosethe material terms and conditions of participating and must not be false, deceptive or misleading. o All contests must follow local, state, and federal laws, rules and regulations pertaining to sweepstakes must have any necessary state bond issuance.Contest legal terms and conditionsmustbeeasyforconsumerstoaccess. o Contests that award prizes on the basis of chance are generally illegal unless free entry is possible.Coupons that include this type of contest should adequately describe the availability of such free chances with such phrases as:“No Purchase necessary,” “Void whereprohibited,”orequivalentlanguagemustbedisclosedifpertinent.  o Couponsthatincludecontestsshouldprovidetheconsumerwiththefollowinginformation:  Eligibilityrequirements  Terminationdateofthecontest  Nopurchasenecessary  Voidwhereprohibited  Wheretofindthecompleterules • Food o Foodcouponsshouldnotoverstate,exaggerateordistortthenutritionalvalueoffoods. o All claims made in coupons about food nutrition or health should be able to be substantiatedbyfactualand/orscientificdata. 2 ForinformationonIndustryBestPractices,visitwww.mmaglobal.com/bestpractices.pdf 3 Availableathttp://www.caru.org/guidelines/index.aspx www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page7of10  o Healthclaimsthatdistorttheimportanceoffood,itsingredientsorsuggestadvantages beyondwhatreallyexistsshouldbeavoided.  • DietarySupplementsandVitamins o The words “safe,” “harmless,” “without risk,” or any words or phrases with similar meaningshouldbeavoided. o When appropriate to ensure the coupon is not misleading, the following disclaimer should be used: “This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”  • PharmaceuticalProducts o Pharmaceutical coupons must comply with all applicable laws, rules, regulations or guidanceissuedbytheFDA. o Pharmaceutical coupons should be confined to those symptoms and conditions for whichtheproductisindicated. o Allcouponsmustincludetheestablishednameofthedrug. o The words “safe,” “harmless,” ”without risk,” or any words or phrases with similar meaningshouldbeavoided.  • AlcoholicBeverages o Alcoholicbeveragecouponsmustbeintendedforadultsoflegalpurchaseage. o Couponsshouldnotpromoteexcessiveconsumptionofalcohol. o Couponsforalcoholmaynotconvey“primaryappeal”tounderageconsumers(e.g.,use ofSantaClaus). o Companiesthatproducealcoholbasedcouponsareencouragedtopromotethe“please drinkresponsibly”campaign. o Alcoholic promotions must follow regular guidelines pertaining to local, state, and federallaws,rulesandregulationsforcouponingandsweepstakes.  • PersonalProducts o Allcoupons for personal health productsshouldbe in goodtaste,appropriate and not overlygraphic.  MobileCouponandRebatesGuidelines‐ConsumerNotice  TermsandConditions/Disclaimers • All advertising and promotional material clearly indicates whether the service is a subscription andthecostinvolved,ifany. • Allmaterialtermsandconditionsoftheprogramareclearlycommunicatedwiththeoffer. • Iftermsandconditionsmateriallychangetheofferthentheymustbehighlightedandpresented atfrontofoffer. • Service availability, on a carrier‐by‐carrier basis, should also be fully disclosed. All disclaimers should bedisplayed clearly and conspicuously.As a general rule they should beplaced against contrastingbackgroundandwellspaced. • Disclaimersshouldinnowaycontradictorofferdifferenttermsthanwhatisbeingpresented.  Formatanddelivery www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page8of10 • All advertising material clearly indicates the format and the delivery method of the mobile couponthatuserwillreceive. • The publisher, developer or the named products corporate entity should have a reasonable mechanism in place to allow for consumer feedback as to the use, distribution, feasibility, securityandcontentofthecoupon. • CertainMobilecouponsrequiringreconciliationmayneedtoberegisteredwithaclearinghouse priortopublishing.Thiswillensurethatretailerscanreconcileafterredemption. • All coupons must contain proper sponsor identification.Sponsor identification consists of the nameofthesponsor’scorporatename,tradenameornameoftheproduct.  FraudNotification • Legal copy should appear on the coupon application or the website linking to the wireless couponthatspeakstoprotectionagainstfraudandmisredemption. • It is recommended to use the disclaimer: “Void if mobile coupon is altered, transferred, purchasedorsold.Useforthesepurposesisillegalandconstitutesfraudonmobilecouponsor theapplicationsthatsuppliessuchcoupons.  MobileCouponDesign • The Offer: The coupon offer should be clear, specific, and visible including the purchase requirements such as quantity, size, etc. The purchase requirements should be prominently shownandstatedin simple,easy toreadlanguage.Multiplepurchasesshouldbeclearly stated andshownnexttothefacevalue.Avoidcomplicatedoffers, wherepossible. o IncludelanguageonthecouponorintheTermsandConditionssuchas:  “Couponvalidforitemsindicated”  “Anyotheruseconstitutesfraud”  “Maynotbecombinedwithanyotheroffer”  “Duplicateoralteredcouponswillnotbeaccepted” o Promotionofacoupon,serviceorcampaignshouldclearlyindicatewhethertheservice isasubscription.  • Face Value: The coupon’s purchase requirements should be clearly stated and prominently displayed.  • GuaranteesandWarranties:Referencestoguarantees,warrantiesorsimilartermsmustcomply withallapplicablelawsandgovernmentalrulesandregulations.Ifanydurationorexclusionsare attached a disclosure stating “see dealer (or store) for details”should be included.Use of the term “Satisfaction or your money back” will be construed that the full purchase price will be refundedattheoptionofthepurchaser.  • Source: Include the words "Manufacturer Coupon" or “In‐store Coupon” as appropriate for mobilecouponoffers.  • Useoftheword“Free”: o Anoffermaybedescribedas“free”providedthatallconditionsforobtainingthe“free” productorserviceareclearlyandconspicuouslydisclosed. o Anylimitationsmustbedisclosed. o Text message programs for delivering coupons should always disclose messaging and www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page9of10  datachargesthatapplytotheconsumer(i.e.“msg&dataratesmayapply”). o If a product or service in a promotion is described as “free”, and the consumer mus t meet certain conditions or make payments or purchases in order to receive the free item (e.g., buying X amount, paying shipping&handling fees, completing consumer surveys or providing personal information), those conditions must be  clearly and conspicuouslydisclosed. o It is considered normal practice for a corporate entity to give a maximum value of allowance for “free” coupons.(e.g., this coupon is good for a free one 12.oz. drink, maximumvaluenottoexceed$2.00).Again,anyadditionalconditionsmustbeclearly andconspicuouslydisclosed.  • Expiration Date: It should be clearly visible.Shorter expiration periods limit your liability and promote faster response to your promotion; however, longer expiration dates increase your redemptionrates.Thecouponsexpirationshouldbeprominentlydisplayedwiththemonth,day andyearonthemobilecoupon.Ifthereisnoexpirationthen thewords“NoExpiration”should be placed on the mobile coupon.Any offer without an expiration date should be considered carefully.Ifanofferis utilizing a retailerloyaltyplatform orsomeother type of CRM database system,anexpirationdateshouldalwaysbeused.Mostsystemshavelimitsto theamountsof offersthatcanbehoused.  • Product: Display thename of your product/brand for quick recognition.Ifyou’reusing formats that allow graphics (MMS, application or image) include a logo or product image to increase recognition.Allimagesshouldbeappropriatefortheviewingaudience. o Redemption Offer code: Redemption codes can be numeric or alphanumeric.Each promotionshouldbecodedinsuchawaytobedistinctfromotherpromotionsthatmay berunningatthesametime–eitherfromthesameissuerorothers. o Barcode: Any barcode displayed must be compliant with the redemption mechanism. Alphanumericcodeisrecommendedincasethatthevalidationscannerdoesn’treadthe code. o MMS:IfusingMMS,indicatewhatthevalueisandwheretoscan.  BarcodeonMMSshouldhavemorethan90%accuracyandanalternativeway toinputthevalidationcode.  References  Thefollowingdocumentsprovideadditionalsourcesofinformationandreference:  • TheMMACodeofConduct(http://www.mmaglobal.com/modules/content/index.php?id=5)  • TheMMAConsumerBestPracticesGuidelinesforCross‐CarrierMobileContentPrograms (http://www.mmaglobal.com/bestpractices.pdf ) • TheMMAIntroductiontoMobileCoupons(http://mmaglobal.com/mobilecoupons.pdf)  • DigitalCouponsGuidelinesfromtheAssociationofCouponsProfessionals(ACP)– (http://couponpros.org/resources_digital_coupons.shtml )  www.mmaglobal.comMobileCouponingGuidelines(v1.2) ©MobileMarketingAssociation2011 Page10of10  WhoWeAre  TheMobileMarketingAssociation(MMA)isthepremierglobalnon‐profitassociationestablishedtolead the growth of mobile marketing and its associated technologies. The MMA is an action‐oriented organization designed to clear obstacles to market development, establish mobile media guidelines and bestpracticesfor sustainablegrowth,andevangelize themobile channel foruseby brandsandcontent providers. The 450+ global member companies include agencies, advertisers, han d held device manufacturers, wireless operators, aggregators, technology enablers, market research firms and all companies focused on marketing via the mobile channel. The Mobile Marketing Association’s global headquarters are located in the United  States with regional chapters in Europe Middle East & Africa (EMEA), Asia Pacific (APAC), and Central & Latin America (LATAM) consisting of representatives in over fortycountriesacrosstheglobe.Formoreinformation,pleasevisitwww.mmaglobal.com   Mobile Commerce Committee: Is chartered with developing best practices and guidelines in regards to mobile commerce initiatives. The ultimate goal of the committee is to, eventually, enable a simple, consistent and compatible consumer experiences across all carriers. The committee will establish balancedguidelinesthatencouragebrand,retailandmediaadoption todriveconsumption.  MobileCouponingTaskForce:TheTaskForceischarteredwithdevelopingbestpracticesandguidelines inregardstomobilecouponingcampaigns.  The Task Force, co‐chaired by Mobile Dreams Factory and  Inmar developed these guidelines in collaborationwithrepresentativesfromMMAmembercompaniesincluding:  MobileCouponing Committee Cellfire Inmar MobileDreamsFactory Infinian VerizonWireless   ContactUs  Formoreinformation,pleasecontacttheMobileMarketingAssociationat:   MobileMarketingAssociation   Website:www.mmaglobal.com   E‐mail:mma@mmaglobal.com   Phone:+1.646.257.4515   GlossaryofTerms  TheMMAmaintainsanomenclatureglossaryforalltermswithinMMAguidelines,educationdocuments andresearch.TheGlossaryisavailableathttp://mmaglobal.com/wiki/mma‐glossary . .    Mobile Couponing Guidelines (v1. 2) March2011    Mobile Marketing Association MMA www.mmaglobal.com Mobile Couponing Guidelines (v1. 2) Mobile Marketing Association 2011. www.mmaglobal.com Mobile Couponing Guidelines (v1. 2) Mobile Marketing Association 2011 Page1of10     Mobile Couponing Guidelines (v1. 2) March2011