Close
 

The next generation: Scott Bradley talks VMob

  • News
  • August 20, 2015
  • Sarah Dunn
The next generation: Scott Bradley talks VMob

VMob is a Kiwi organisation which is huge overseas. Its clients include 7/11 in Australia, Esso in Europe, and half of McDonald’s 33,000 stores across the globe. There are 20 million people McDonald’s VMob-powered Japan loyalty programme alone.

“They call it the next-generation loyalty programme,” Bradley says.

VMob uses app technology to deliver targeted, highly personalised marketing to customers through their mobile phones. In return for the odd free offer, it collects an extraordinary range of data from customers.

Bradley gives an example based upon himself: one day, he gets a cheeseburger at McDonald’s. Accessing his mobile’s location services, VMob knows his location. It knows he is normally based in Auckland, and since he’s at the Taupo branch, it can also tell he is on a trip.

Thanks to the location data, VMob can check the local weather reports in real time and tell what kind of conditions might have contributed to his decision to buy a burger. Was it particularly cold that day?

VMob can also look at users’ social media profiles. This means it can build an understanding of the customer’s interests based on their ‘likes’ on Facebook – finding out, in this case, that Bradley is a rugby fan.

“Now, we’ve got three salient data points without the customer ever purchasing a product from us.”

When you understand customers, you can influence their behaviour, Bradley says. Mobile loyalty is all about recognising and influencing customer behaviour in real time.

“Ultimately, that’s what loyalty programmes do. We try to influence customer behaviour to get them to come back to us.”

Traditional loyalty programmes are less intuitive, Bradley says, bringing up a scenario where a customer buys a coffee every morning from McCafe. A traditional loyalty programme might offer that customer a deal where if they buy five coffees, the sixth is free.

“If we see the customer come in five days, why would we offer them a free coffee when they’re going to buy one anyway?”

Instead, Bradley says, VMob would look to prompt that customer with a freebie if they came near a McCafe later in the day. Research has shown that big coffee drinkers tend to crave another one between 2pm and 4pm in the afternoon. If VMob can get that customer buying a coffee twice every day instead of once, they’ve doubled the frequency of visit and increased their spend.

“You can’t do that in an email,, you can’t do that in a letter,” Bradley says.

This level of personalisation is a fine line to walk. Bradley says it’s important to start with permission-based data capture – do nothing without the customer’s say-so – and include the ability for them to opt out.

He underlines the “huge” reputational risk to McDonald’s if VMob took data without the customer’s express permission, but says customers are very happy to hand over their data in return for a free cheeseburger or drink.

Personalisation is a big part of what makes VMob work. It offers customers rewards that are relevant to them, and nothing that isn’t. Bradley quotes a study that shows a 700 percent increase in engagement following personalisation.

“This is where retailers are really struggling. They publish these apps that are generically the same as each other.”

He thinks retailers should tap into their traditions, saying retailers have been personalising their offers for hundreds of years as they remember return customers and greet them by name. They need to take this mindset into the mobile space, Bradley says.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Direct sales: How multi-level marketing works

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: How multi-level marketing works

The $200 million-plus direct sales economy contains many lessons retailers can use. As part of a wider look at this thriving corner of retail, we created a quick explainer showing how this business model typically works.

Read more
 
 

Direct sales: Meet the upliners

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the upliners

We profiled different participants in the direct sales industry to find out what retailers can learn from them. Meet Isagenix distributors Adam Nesbitt and Bianca Bathurst.

Read more
 
 

Direct sales: Meet the business builder

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the business builder

As part of a wider story looking at what retailers can learn from the direct sales industry, we profiled Isagenix distributor Ben Frost.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Leveling up: Exploring multi-level marketing in New Zealand

Is the $200 million-plus direct sales economy retail by another name or something different? Regardless, what can we learn from it?

 
 

A spectrum of retailers

  • Opinion
  • April 18, 2019
  • David Farrell
A spectrum of retailers

In recognition of April being Autism Awareness Month, retail commentator Dave Farrell considers the role of those on the spectrum in retail.

Read more
 

How on-trend is your retail business?

  • Sponsored Content
  • April 18, 2019
  • Sponsored content
How on-trend is your retail business?

New insights from Visa highlight five evolving trends emerging from savvy retailers around the world. We’ve taken these global trends and looked at how they are playing out with merchants in New Zealand, and we’d now like to hear what you think of them.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}