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

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MobileCouponingGuidelines(v1.2)
March2011   MobileMarketingAssociationMMA

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
MobileCouponingGuidelines(v1.2)
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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.
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
Overview
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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


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purchase – through a check, electronic funds transfer, statement credit, loyalty points or voucher/card
goodforfuturepurchases.
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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

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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
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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
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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 />.


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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. />.

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

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usertermsandconditionsshouldbeavailable.
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

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 />

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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

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• 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


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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( />
• TheMMAConsumerBestPracticesGuidelinesforCross‐CarrierMobileContentPrograms
( />)
• TheMMAIntroductiontoMobileCoupons( />
• DigitalCouponsGuidelinesfromtheAssociationofCouponsProfessionals(ACP)–
( />)
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www.mmaglobal.comMobileCouponingGuidelines(v1.2)
©MobileMarketingAssociation2011 Page10of10

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WhoWeAre
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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
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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.
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MobileCouponingTaskForce:TheTaskForceischarteredwithdevelopingbestpracticesandguidelines
inregardstomobilecouponingcampaigns.
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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
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ContactUs
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Formoreinformation,pleasecontacttheMobileMarketingAssociationat:

 MobileMarketingAssociation

 Website:www.mmaglobal.com
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 E‐mail:
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 Phone:+1.646.257.4515
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GlossaryofTerms
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TheMMAmaintainsanomenclatureglossaryforalltermswithinMMAguidelines,educationdocuments
andresearch.TheGlossaryisavailableat />.