Chris Silva, GSMI Mobile Marketing Strategies Keynote, 2011

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Mobile Marketing Strategies SummitDecember 7, 2011

Chris SilvaIndustry Analyst, Mobile

Creating An App For That: Choosing Your Mobile Strategy

© 2011 Altimeter Group

Mobile Is Increasingly Users’ Preferred Computing Platform



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The cost, technology and utility of smartphones drives their majority among

mobile phones.

The average Android device owner spends nearly 1.5 hours daily actively interacting with

their handset.


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Barriers To Mobile Adoption Come Crashing Down

* Source: Nielsen** Source: Gartner*** Source: Pyramid Research

$.08 Effective cost/MB

Q1, 2011*


Q1, 2010*


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Q1, 2011*


Q1, 2010*

512MHz processor, single core§

1+GHz processor, dual core


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Q1, 2011*


Q1, 2010*

1.5B Forecast smartphone sales,

2011***

172MSmartphone units

sold, 2009**

512MHz processor, single core§

1+GHz processor, dual core


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Mobile interaction becomes deeper, more ingrained

This was 37% in May, 2011, and 40% in June,

2011


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People can’t buy smartphones fast enough

iPhone 4s: 4M devices in its first weekend, bests Kinect as fastest

selling device ever!


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Tablets are quickly following

Apple’s iPad sold at a rate of 14.8/hr on Black Friday 2011. The pile – if stacked – would be measured in miles.


Holiday will be a big test for mobile strategy as device dependency increases

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Almost half of holiday shoppers in 2011 will be looking for last minute

stores and gifts via mobile, will you be there?


“Getting To Mobile” Isn’t A Strategy



Mobile Strategy Takes One Of Three Paths12

• Target: Buyers• Goal: Drive revenue and transactions• KPIs: Registered Users, Average PurchaseEnrich

• Target: Shoppers, New Contacts• Goal: Drive brand affinity, consideration• KPIs: Engagement, amplification, goodwill

Engage

• Target: Internal constituents and trusted partners

• Goal: Secure use of information on mobile• KPIs: Productivity gains relative to function

Entrust

Christian Silva

Bottom item needs to be de-emphasized, made more transparent.


For brands and retailers: look at the entire buying experience

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Enrich: Driving revenue through mobile transactions15


Customer facing apps, look at the entire experience16

Enrich


Enrichment done right, over 3M have paid with Starbucks mobile app

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The mobile card program was tested in 2009, and found to be

the fastest way for customers to pay. It’s

available at 9000 stores. Customers purchase credit via

PayPal or credit card.


Enrichment done wrong, playing up the limitations of mobile

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Users must download all catalog content, a

situation exacerbated when relying on a carrier

network vs. wifi


Complexity of task increases complexity of rollout, deepens ROI

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Taking data like credit card info from the field introduces more

complexity and security requirements for the mobile

device, how it is managed and how information is transacted.


Com

plex

ity

Return

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Complexity and return mirror feature depth


Com

plex

ity

Return

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• Exploratory• Existing content• Non transactional


Com

plex

ity

Return

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• Interactive, multi channel• Heavily transactional• New content


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Engage: Driving customer interaction via mobile interaction

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Customer facing apps, look at the entire experience25

Engage

Engage


Engagement done right: North Face utility app Snow Report (and Trailhead) engage with its target

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Snow Report users view weather and snow

updates, as well as tweets from and about their

favorite resorts.


Engagement done wrong: Longhorn Steakhouse puts customers behind the grill, but not in the restaurant…

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Users can flip a steak to their desired temperature, and hear it sizzle!

… but they won’t find restaurant locations, links to the company website, menus, Q&A, contact us, etc.

© 2011 Altimeter Group© 2011 Altimeter Group

Choosing A Winning Strategy


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3 Paths To Mobile Strategy, Which Are Yours?


Enrich or Engage: choose your path30


Choose the path you’re seeking to engage with customers – enrich or engage

• Develop a go-to-market based around user interaction and addressing user pain;

• Develop metrics that match those interaction/pain points, number of downloads is irrelevant;

• Understand the areas of impact for your business, establish a baseline and look at app-unique behaviors.

Iterate and expand

• iOS, while popular, is not the only game in town by far

• Cross-disciplinary teams make winning strategies

What is the endgame?31


Upcoming research: Altimeter app scorecard32

Category Sub Elements Potential Score Ranking*

Application Features

Platform and device support, localization, inbound media, multimedia, social

35 points Average score: 9.06

Application Strategy

Future feature support, future platform support, application development iteration

25 points Average score: 6.05

Application Impact

Registered users, net new revenue, cost of development

15 points Average score:

N/A

* Averages reflect some incomplete information due to NDA


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Upcoming research

Santa’s Little Helpers: Mobile Retail Strategy For Holiday 2011

Publishing December, 2011

Entrust: Finding Partners For B2B Mobile Success

Publishing March, 2012

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THANK YOU

Chris Silva

Industry Analyst,

[email protected]

makemobilework.com

Twitter: 802dotchrisGet my research on my blog:

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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage.

Visit us at http://www.altimetergroup.com or contact

[email protected].

ABOUT US

http://www.altimetergroup.com/

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Chris Silva, GSMI Mobile Marketing Strategies Keynote, 2011

Technology