Brands Archives - PASSWORKS

SEPHORA DIGITAL STRATEGY & THE IMPORTANCE OF APPLE WALLET

Sephora has built a reputation as a big player in mobile. The Sephora mobile strategy is wide ranging and might seem complex, but there is a pattern that they use repeatedly.

First, and most important, Sephora strategy is customer focussed and on providing an informed experience, rather than holistic or technology focussed. Secondly, with the customer always at the centre, Sephora develops integrated cross-channel strategies that merge seamless for the customer.

“Sephora strategy
is customer-focused
and on providing
an informed experience”

Sephora knows digital. They know the importance of mobile and how mobile fits into the bigger picture, whether online or offline and, most of all, they understand how to combine and move between channels in a way that makes sense to their customers.

Sephora have their hands in Web, App, social networks (Facebook, Twitter and Pinterest), CRM, email, SMS, mobile commerce, digital loyalty using Apple Wallet Passes (Passbook) and more.

Main Elements of Sephora’s Mobile Strategy

Updated & excellent usability on the Website
Good mobile App
CRM with Email and SMS
Apple Wallet (Passbook) with Loyalty Card, Discount Coupons and Gift Cards
Integration with social networks such as Facebook, Twitter and Pinterest
Mobile Shopping experience
Seamless experience across functionalities and promotions
Active promotion of mobile features across all channels

Overview of Mobile Results and Performance

1/3 of all traffic to the Sephora website is from mobile devices
Over 50% of Sephora’s emails are opened on mobile devices
Mobile website m.sephora.com (full shopping and Beauty Insider)
Successful Sephora Apps
More than 600,000 Sephora customers who have their Loyalty Card installed it on Apple Wallet
Apple Wallet users spend twice as much annually and purchase twice as frequently as average Sephora customers

“1/3 of all traffic to the Sephora website is from mobile devices”

There is a lot to learn from the way Sephora has implemented their mobile strategy. Sephora has driven significant value from connecting in-store and offline media with Mobile Apps and Apple Wallet Passes, using multiple channels to build awareness. Email, SMS, Mobile Media, QR Codes and loyalty programmes have been put to good effect in supporting consistent brand messaging throughout.

For retailers, integration with existing loyalty programs makes excellent sense as a first step into mobile. And the use of services like Apple Wallet to enable digital loyalty cards, offers and coupon redemption are a must have without the need to build custom technology.

Mobile Wallets: the ability to send Notifications

Even that you have a great App, not all your target clients will want it. This is supported by a recent Forrester research that found out “60% of US consumers have two or fewer retailer apps on their phones, 21% do not have any and only 3% had more than 10”.

Having said this, your customers will probably fall in one of two categories:

Brand loyalists who want your App, or
Not interested in downloading another App.

With the customers who have your App installed, you can use push notifications to send relevant information at right moment and time driving customer engagement and conversion. But as previously seen, only a part of your customers will have your App.

These facts impact your mobile marketing strategy and automatically brings questions that the marketers need to answer. How are you going to reach your customers? How are you going to create an active mobile engagement? How can I send push notifications to my customers?

The answer is Mobile Wallets Marketing.

With Mobile Wallet Marketing brands can create mobile wallet passes that can be downloaded in Apple Wallet or Android Pay (native Apps). This a great opportunity for brands and a brilliant solution for those customers who like your brand, but for some reason don´t want to install your App.

By using mobile wallets, brands can be on their consumer´s smartphone and engage with them in real time. One of the best things about mobile wallet is the possibility to send notifications that can appear on the smartphone lock-screen, similar to push notifications coming from apps. And since mobile wallets do not require any opt-in, they can act as a “small App”, allowing you to message your customer without them need to install your own App.

Basically, mobile wallet gives you the opportunity to communicate and engage directly with your customers without requiring a heavy commitment from them.

The Questions Behind Mobile Wallets

Since the launch of Passworks several questions regarding the technology and the usage of the platform arose. We listed what are the most common doubts or questions that have been asked:

“What is Passbook? And what is it for?”

Passworks has been present in several marketing, retail and technology events as an exhibitor to show and explain how our technology works. Typically, Passworks generates huge interest from the visitors and a decent percentage have heard about Passbook application. Nevertheless, the majority of the visitors do not know or understand what is the purpose of Passbook and there are many questions about it: ”I have this app on my iPhone but I never use it. I don’t know what is it for.”.

At Passworks, we face this double challenge of having to demonstrate the benefits of our platform and technology, but also to go back and explain the concept of mobile wallets and Passbook.

Passbook is an Apple application, launched with iOS 6 on September 2012, pre-installed in all iPhones and iPod touch devices that allows users to store coupons, boarding passes, even tickets, store cards, and starting with iOS 8.1, credit cards, loyalty cards and debit cards via Apple Pay.

“Do I have to download an App?”

Many people believe that there is the need to download another App in order to have access to the mobile coupons, membership passes, tickets, etc. Incorrect. Passworks integrates with existing several wallet Apps, such as Passbook or Pass Wallet, in order for the user to just easily add the pass into that app.

“How do I receive the pass into my phone?”

This question is asked several times at the beginning when people start to understand the huge benefits that the technology brings.

Passes can easily be distributed into the users mobile via email, SMS, MMS, web links, integration with social media, an App or through scanning a QR code.

“Does it send trigger location-based notifications?”

Passworks technology enables brands to associate locations and messages to a specific pass, in order for the customers that has the pass installed receive a push-notification to remind them about the pass content when they are close to the pre-defined location.

“Can I insert unlimited locations to the platform?”

Unfortunately, the technology itself limits the number of locations to 10 places. Nevertheless Passworks developed several alternatives for bigger clients that wish to add much more locations.

“How Can I redeem the voucher?”

The brands have the possibility to add to the pass a barcode, that can be a QR Code, PDF 417, EAN 128 or Aztec. This code allows brands to count the number of passes issued and also can be read at point of sale via a classic POS scanner or using Passworks technology that includes a Scanner App or redeemer web page.

“Which KPI´s can I measure with the Passworks?”

KPI´s are an important part of the information required to determine and explain how a company progresses towards its business and marketing goals. Passworks understands that it is essential to provide a solution for brands to measure their campaigns.

Using Passworks platform you can access to several data regarding your campaign, such as number of passes download, installs, active passes, how many people have delete the pass and much more. Inclusive, If you decide to create personalized passes, like a membership card or a store card, you can even know the exact behaviour of each customer.

Those are the most common question, but if you have any other doubt don´t hesitate in reaching us at hello@passworks.io. We are here to help!

Nevertheless, have in consideration that the usage of Passbook is very different from country to country. As an example, in the United States Passbook is broadly used for mobile coupons, store cards and boarding passes. While in the UK the technology is on a more initial phase.

But the feedback we received from our customers and partners on the technology and Passworks is great. No doubts about the increase and growth of mobile wallet marketing that will allow brands to better engage with their customers in real-time and based on their location.

The importance of Mobile Marketing for Brands

Consumers have a strong relationship with mobile devices because they empower freedom while maintain the user completely connected. There isn’t a single day that passes by without checking the mobile phones regularly — even if it’s only to see if there’s a new notification or to check the time. (Hopefully with the new iWatch we’ll stop using our phone to check the time).

Mobile phones are no longer just communication means and started to become distribution channels. Mobility became the status quo of attention span from consumers, creating an opportunity for brands to be nearer the mind and hearts of their target audiences.

With mobile marketing, a brand creates access for its own content, asking the consumer for permission to receive that same content. “Mass marketing”, however, involves “permission marketing”, which requires personalized information that comes with a counterpart: a commitment and investment (too high) to match consumers’ high expectations on quality content and the ability to scale.

Considering the mobile context, there is a shift on consumer’s habits, motives, and consumption that changes the focus from the product to the consumer because ultimately it is he that decides to share or to be contacted by brands. Luckily, with mobile marketing there are many ways to engage consumers, such as push notifications, messaging, e-mail, passbook campaigns, apps and social media. However, in order to do so it must always be highly relevant because we’re talking about a media that is much more personal and intimate. One that stands in a world where the attention time frame is very short. Also, it has to be thought as a strategy and not just as a communication plan that uses mobile marketing as a mean because competition in the mobile context is for interested attention. With the stimulus that populates the audience’s mind the goal is to fulfill consumer’s goals at specific moments.

46% of consumers think that brands don’t provide relevant content and 54% think that mobile websites just aren’t enough. However, they all agree that it is easier to find information. Why does this happen? Despite what you might think, it’s not about what mobility allows you to do – which is to provide information at any given time and moment to any consumer – it’s about what it means: the ability to move or be moved freely and easily. Adaptability. Flexibility. Versatility.

The ability to move or to be moved:
In order to engage with a consumer a brand must know how to be the most relevant, especially if we live in the Era of “2-Second-Attention” generation. Every second is a chance to engage and it only takes a glance to be on top of mind or to be ignored. The consumer needs to be moved by the brand while he has the freedom to be on the move and to feel that particular bit of information is going to change his life.

Mobile marketing is redefining commerce and retail:
In the end, the biggest challenge for a brand is to know how to manage all this scalable messaging into a sustainable relationships — in a time where mobile marketing control depends on the consumer — while keeping its own identity and maintaining a personal 1:1 connection (which makes every marketing strategy even more fleeting).

Nevertheless, it’s possible. And an amazing opportunity.
A brand just needs to know how to use the right channels for this new “opt-in” consumer and to understand what is the exact content consumers’ look for to be relevant for them.

The rise of mobile wallet marketing opportunity

In recent years, we have seen the rise of mobile payments and how they been changing the way customers and businesses interact. From PayPal, Google Wallet, Square, Isis and passing on to Visa and MasterCard, everyone has been focusing on driving mobile payments, improving and transforming the way people shop and pay.

Only more recently, have the mobile wallet non-payment features started to emerge. Primarily with the launch of Apple Passbook, and later with the new updated version of Google Wallet, mobile wallets have been redesigned to meet the needs of brands in delivering compelling content to consumers on their smartphones via the use of dynamic passes (such as digital coupons, loyalty cards, boarding passes, event tickets and others offers), push notifications and real time location based messages. Taking advantage of these features has become fundamental in the industry in allowing brands and retailers to communicate more effectively, while giving consumers an easier way to organize their items in one place.

This is a huge, and very real opportunity for brands and retailers to communicate and further build relationships with their customers. These new functionalities allows to easily send personalized offers, distribute passes which drive store traffic and increase both conversion rates and consumer loyalty and enabling a very cost-effective location-based marketing campaign.

At the end, brands and retailers can start exploring the emergence of mobile and social platforms as an opportunity to increase share of mind and share of wallet to create an interconnected and seamless experience between mobile and the shop floor.

Consumers have already made it clear they want a mobile wallet solution that gives them a seamless experience while helping to better organize all their shopping-related information, thus creating a better, more convenient overall shopping experience.

No longer do consumers need to carry all their paper coupons or plastic cards when shopping, traveling or going to an event. Instead, they can place their coupons, offers and cards in the mobile wallet and let the technology work for them. They can also be reminded of offers when close to a retail store or when a certain offer is about to end with a push notification that will appear on the screen of their smartphone.

Mobile is the ultimate and effective form of custom media because it is personalized and contextualized to the consumer. This is why it is important for marketers to create personalized and contextualized, relevant content based on their client profile. And if used properly, Google Wallet, Apple Passbook or other mobile wallets are effective solutions for brands to leverage customer acquisition, engage with consumers and drive traffic to their store. Nevertheless, these mobile wallets are not brand or retailers friendly in a way that is easy for the marketers to create offers or vouchers, design campaign and distribute them their target consumers.

Passworks is a new best in class solution for brands and retailers, that enables effective customer acquisition and strong engagement that drives store traffic. It’s an integrated solution for mobile marketing campaigns management using Software-as-a-Service (SaaS) or an Application Program Interface (API) to create engagement mobile wallet campaigns.

With Passworks’ marketers can design their dynamic passes (digital coupons, membership cards, loyalty cards, event tickets, travel tickets), create the respective marketing campaign, choose a profile target, define location-based notifications, and distribute them directly to customers´ phones of all major mobile platforms via Apple Passbook, Google Wallet, Windows Phone Wallet and other their parties Apps through integration with social networks among other channels.

“Sephora strategy is customer-focused and on providing an informed experience”