You are here: silicon.com > Retail & Leisure

How mobile is your corner shop?

Mobile barcodes - coming to a convenience store near you?

Tags: retail

By Julian Goldsmith

Published: 13 April 2007 13:34 BST

Forget clipping vouchers out of magazines - why not get coupons sent straight to your mobile phone? Convenience stores are getting involved with a mobile phone-based loyalty scheme but, asks Julian Goldsmith, who will the real winners be?

Plans by convenience store retailers to team up with consumer goods giants and offer a mobile phone-based loyalty scheme is a ringing endorsement of mobiles as electronic wallets.

In the 'Shop Scan Save' scheme, shoppers will receive a text message containing a barcode that can be scanned to score a discount on a number of goods. They will be able to text keywords to get discounts on goods they want to buy.

It's not before time for Co-op, Costcutter, Londis, Nisa-Today's, Spar and about 9,000 independent corner shops to start mining the CRM benefits of a loyalty card system, with other supermarkets years ahead of them.

silicon.com Retail & Leisure

Get the latest retail and leisure news straight to your inbox. Sign up for the R&L newsletter today!

Mobile ticketing and vouchering is slowly being taken up. For example The O2 - formerly known as The Millennium Dome - is expected to be filled with mobile ticketing opportunities.

Mobile phone network O2 has been piloting mobile ticketing, where punters have barcodes displayed on their mobile phone screens which are scanned for them to gain entry.

So it's a good sign that corner shops have also signed up to the technology, as it will undoubtedly raise the public profile of mobile ticket and vouchering.

But it doesn't mean it will be a roaring success. The number of loyalty card holders who actually redeem their loyalty points is often low.

It's true the Shop Scan Save scheme will be even more targeted to individual shoppers' needs, and trial results have shown it to be between five and 10 times more effective in encouraging redemptions but that was in conjunction with a 10-week TV advertising campaign. This may tail off when the adverts stop.

Cheat Sheets

♦ Mobile location-based services
♦ FMC
♦ 3G

Also, customer behaviour in corner shops is different to supermarkets. These retailers are called convenience stores because shoppers go in at their convenience. Consumer brand identity and loyalty is less strong in this sector.

The key for the retailers - and presumably their consumer goods partners - is the data they will get about customers when they sign up, which will be used in ranging and merchandising decision-making.

But perhaps the real winners will be the mobile phone operators who will be able to make mobiles even more central to the lives of their users.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure


  • Jobs
Purchasing Manager - 40-45K+bonus & car allowance

They should also be able to demonstrate ability in the key responsibilities detailed below: - To develop a strategy for selecting and managing ...

ERP Systems Operations Manager / ERP Manager (SAP) - St Davids Park, Deeside, North West

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods ...

TWS Scheduling Specialist - UNIX AIX/TRU64, Windows O/S, MS Office, Shell - St Davids Park, Ewloe, Deeside

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods ...

Tim Ferguson
How did the Heathrow T5 launch go so wrong?
Shiny new terminal, same old story... right?

Julian Goldsmith
Retail leaders will open up in tough times
Rather than cut back, the best will innovate to ride the slump

Penelope Ody
Retail in a rut: IT to the rescue?
Technology needs to meet changing consumer demands...

silicon.com
Online age verification Bill is cynical manipulation
Leader: More about political ambition than protecting children

silicon.com
Leader: Missing Xmas parcels highlight online fulfilment dangers
Will the increase in demand backfire on retailers?

Paula Barrett
E-tailers beware: OFT web sweep is imminent
Opinion: a legal eye over Distance Selling Regulations

CIO50 2008
The silicon.com CIO50 2008 profiles the most influential and innovative tech chiefs in the UK across all industries and organisation size, from the biggest FTSE100 companies to high growth dot-com start ups and the public sector. The list was voted on by the UK CIO community and a panel of experts. Find out more in our latest special report.


IT services
Outsourcing, offshoring and much more...



Quick Sitemap Links: