There are many different ways to redeem mobile wallet content. These different methods include “online” and “offline” redemption using 2D barcode scanners, redemption through smart devices & tablets and redemption without any hardware at all. This post will go over the various redemption methods and solutions available to help your customers redeem passes in the most cost effective and suitable form to you & your business.
Do I need both hardware and software to redeem passes?
You do not necessarily need to have both hardware and software to give value to your users who download a pass. In many cases, a simple manual verification can suffice. In fact, manual verification is a method preferred by many merchants who’s initial goal is to simply drive up traffic to their stores. Ideally, before implementing any process you should consider all options presented, so that you can be confident on whether you need hardware and/or software or if a simple manual verification process will suit your needs.
Methods for redemption
Redemption by scanning
While it is possible to allow customers to redeem without scanning, redemption via scanning generally provides the best user experience and allows the customer to enjoy the full benefits of digital mobile wallet technology. Here’s why:
- When you scan in real time, users can immediately see changes on their pass.
- Scanning methods that are integrated into your Point of Sale (POS) system allow you to update your financials easily and seamlessly.
- As the number of customers who redeem your passes increases and/or when you increase the number of locations where customers can redeem, you will find that scanning solutions are more scalable than non-scanning options.
- As scanning closes the transactional loop in the whole user redemption process, you will be able to capture analytics. Data analysis will allow you insight into user redemption behaviour and pave the way for future marketing campaigns targeted towards particular market segments.
1. Using 1D or 2D Scanners
- Since iOS9 was released, you are able to use a 1D barcode (code128) on your passes. This means that if you currently have 1D scanners deployed at your locations, there is no need for extra investment to use passes when it comes to redemption. One point to note is that any iOS device using a version less than iOS 9, will not be able to display the 1D code and a 2D code will be displayed. (the fallback 2d code can be chosen in the pass designer). If you want to find out more about 1D barcode redemption, you can check it out here.
If you are going to invest in devices with 2D barcode scanning capability, there are two types of 2D barcode scanners:
- Newer model smart devices (e.g. iPads, iPhones, Android smartphones etc.)
- Handheld scanners
2. Smart Devices
Any smart device with an autofocus camera and a scanning app installed can be used as a “2D scanner”. If you do not have a scanning app already installed, I recommend using the Manatee Works barcode scanner app available on both the Google Play store and the iOS App store.
To redeem, open the installed scanning app, point the camera lens to the barcode or QR code on the customer’s pass. If you used PassKit’s standard redemption update page (that can be setup through our Pass Designer), the app will direct you to the redemption page where you can redeem.
Alternatively, you can integrate directly to your POS system or database via wired transmission. You can also choose to integrate over a wireless, secure connection.
3. Handheld Scanner
The second type of 2D barcode scanner that you can use is a handheld scanner. If you were to choose this option, we recommend the Genesis 7580g Area-Imaging Scanner by Honeywell. This format works best for mobiles because the user can simply wave their phone in front of it without any awkward or clumsy actions from the cashier or without the need for a dedicated motion by the cashier, thus reducing checkout time.
Mobile or fixed? Wired or wireless
Your choice to use a smart device that your staff carries around or have a wired handheld scanner that stays at the sales counter, depends on a number of factors including your sales environment, existing infrastructure, your intended customer experience and of course costs. The Apple store provides its sales staff with iPhones to engage customers as they move around whereas other retailers prefer to integrate the mobile wallet technology into their existing fixed sales counters.
What is “Online” & “Offline” scanning?
“Online scanning” means that passes are updated in real time when they are scanned. This can be done with or without a POS integration – smart devices is an example.
“Offline scanning” refers to the action of scanning a pass but the updates to the pass are not seen in real-time, instead updates are “pushed” to the pass at a later stage. The option may be considered for those instances where there is no active internet action, where speed of the redemption process is a critical factor for the user experience and/or where updates shown on the passes in real time is not crucial. For example, if passes were to be used in a similar fashion to how supermarket items are scanned at the checkout, the process of scanning here could be to update local database records, then at a later stage pushing updates to all of the scanned passes via “offline” batch processing.
4. POS Integration
PassKit offers POS integration services. This integration process depends on your business model, process flow and existing systems and therefore the details are best discussed on case by case implementation That said, once integrated, you will be able to update your financials in real time.
Things to consider
Online scanning: While “online” scanning provides the most engaging user experience, it is more complex and it is also requires a larger implementation investment particularly if you want to integrate with your POS systems. Even without POS integration you may still need to invest in some handheld tablets or handheld scanners to provide to your sales staff to do the redemption.
Offline scanning: While “offline” scanning also has its own advantages, you may need to ensure that there are additional verification processes in place to prevent customers from trying to redeem the offer more than once before your batch processing exercise shows updates to the passes.
Regardless of whether you choose online or offline scanning one important factor that you must consider is the need for staff training on how to redeem.
Non-scanning Redemption
Why redeem without scanning?
While the adoption of mobile wallet technology is growing at a phenomenal pace, understanding and adoption for this technology on both the customer and merchant side will continue to take time, education and effort. Non-scanning redemption methods are designed to be simple, easy to understand and relatively easy to implement. These methods may not harness the full capability of mobile wallet, however they form a great starting point to engage customers in use of this technology.
5. User initiated redemption
A method that has been quite popular has been to have users redeem the passes themselves. At the redemption site (e.g. sales counter) the customer is given a code to put in to activate the redemption, similar to how a customer at a coffee shop may be given the daily passcode to access the free Wi-Fi in store.
This can be implemented by putting a link to a customised redemption page on the back of the customer’s pass. At the point of redemption the merchant can provide a code to the customer that he/she enters upon clicking the redemption link.
Illustrating by example, say a burger place issues a coupon that offers a free drink when buying a meal. When a pass holder goes to the location and is at the counter, he/she can show the promotion on their mobile to the serving staff. The staff member will provide the code to the customer that they enter when they follow the link on the back of the pass. While the customer is doing this, the staff can process the customer’s order and upon completing their order can verify that the pass has indeed been updated. These codes could change daily or be based on the promotion that is being redeemed.
There are two variations on the redemption links used:
- You may choose to attach a unique URL to each pass that you distribute and the code given out at the location can be a universal one.This is illustrated in the example above.
- Distribute a universal URL with the passes and give out unique codes at the location. This can be used for events that need to show exclusivity and where you might treat each user in a different way.
Merchant initiated non-scanning redemption
6. Visual Redemption
In some cases – if you were a club owner or you were running an event – you can simply check that a person has a pass to make sure they are a club member or are allowed entry to an event. This can be done for example for small, exclusive events where there is time for visual verification.
7. Manual Tracking
When the customer shows the sales staff the pass, the sales staff can write down the unique serial number of the pass or perhaps match the name on the pass to pre-existing list of names. Some businesses may ask for an ID to match the name on the ticket or coupon (similar to how airline staff check the customer’s passport against the name on the air ticket). While this type of “redemption” is more of a manual process it is suitable for campaigns where there are relatively small, limited number of passes that are issued. Also, provided you have staff who can do this manual tracking, then this could be an option for if you if you are running small, exclusive events.
Things to consider
As mentioned, visual redemption and manual tacking are more suitable for smaller exclusive events where there are either limited passes to manage and/or there is enough time and staff resources to do the manual tracking. However, if you are counting on a solution that you want you to be able to scale as the number of users and redemption locations increase, then non-scanning options might not be the most manageable and you may need to look at some of the scanning options presented earlier.
Choosing the best redemption method for you
These are 7 different ways you can redeem mobile passes. When figuring out which one best suits your business, think about how you would train your staff, how many passes you are going to distribute, what your current POS system is, and what type of user experience are you going for. Answering these questions will help you decide the best method of redemption for your business.
Have any questions about which method is right for you? Let me know in comments below.
