Mobile marketing a new era in digital promotion v2013

Mobile Marketing

A new era in digital promotion

Customer & Market Strategy practice - Deloitte

© 2013 Deloitte Tax & Consulting S.à.R.L Mobile Marketing | A new era in digital promotion 2

Deloitte Tax & Consulting

560, rue de Neudorf

L-2220 Luxembourg

Tel: +352 45145 2440

[email protected]

Member of

Deloitte Touche Tohmatsu Limited

• Sales and marketing consulting: Co-leading the initiative in Customer Practice

• 20 year’s experience in marketing: EMEA Marketing Director

• Avery Dennison-Xerox-HP/ Newell Rubbermaid-Curver-Waterman/ Nestle/EDF/ Monte Paschi Bank

• 7 departments created with new developing growth strategy

• Brand positioning/differentiated tactics; pull through/integrated campaigns & lead generation model

Background

Véronique Filip

Director

Advisory and Consulting:

Customer & Market Strategy

mailto:[email protected]


Agenda

4 key steps for a successful mobile strategy 2

Mobile marketing best practices and future 3

Mobile marketing: its adoption amongst European marketers 1


“Mobile Marketing is a set of practices that enables organizations to communicate and engage

with their audience in an interactive and relevant manner through any mobile device or network”*

What is mobile marketing?

* Source: Mobile Marketing Association definition – nov 2009

• Current activity classification is:

– SMS/MMS

– Applications

– Codes

– Display on web

– Search

– Social

– E-mail

• Which can use different forms/techniques:

– Insertion

– Branded application, In-App

– In-Game

– In-Maps

– Mobile coupon

– Rich media

– Location based

– Augmented reality

• Could be combined together and combined with offline marketing forms

Insertion Rich Media Couponing

In-Map Insertion


With some very trendy techniques

Augmented reality

Branded applications

http://edibleapple.com/wp-content/uploads/2009/08/augmented-reality-paris-2.jpg

http://edibleapple.com/wp-content/uploads/2009/08/augmented-reality-paris.jpg


Or some very sophisticated examples

Tesco South Korea Virtual Store

Tesco_ Homeplus Subway Virtual Store (self using).mp4.mp4


Less than half of European marketers are already using mobile

67%

50%

30%

30%

28%

40%

22%

25%

28%

28%

35%

28%

11%

25%

43%

42%

37%

31%

Italy

Germany

Spain

France

UK

European average

Currently using Plan to use in the next 12 months No plans to use

“Does your company use mobile marketing?”

• Across Europe 40%

of marketers are

using mobile

marketing

• Another 28% plan to

start in the next 12

months

• Italian being the

more aggressive

adopters

Base: 264 European interactive marketers

Source: Forrester, 2011, European interactive marketing online executive panel survey


But mobile marketing remains a largely experimental channel

70%

48%

41%

36%

22%

39%

20%

17%

14%

8%

12%

12%

17%

14%

4%

10%

9%

15%

19%

14%

13%

4%

4%

5%

12%

6%

17%

16%

5%

17%

40%

20%

Spain

France

Italy

Germany

UK

Europeanaverage

€0-€174K €175-€349K €350K-€799K

€800K-€3.49M More than €3.50M Don't know

“What will be your company’s total mobile marketing budget in 2011?”

• Many marketers are using

mobile, but few are putting

significant money into it

• 1/3 will spend < €175K

Majority’ll spend < € 350K

• 1/3 of marketers say

they’re merely testing the

channel


Source: Forrester, 2011, European interactive marketing online executive panel survey


Marketer’s tactics don’t always align with user’s behaviour

Marketers are much more excited about branded apps than users are:

• 38% of European mobile marketers are creating branded mobile applications

• Only 7% of European consumers say they regularly download mobile applications

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%

Branded mobile applications

Mobile-optimized site

Mobile display

Mobile search

SMS and MMS marketing

“How are you implementing mobile marketing?”


Send or receive SMS/text messages

Receive SMS alerts

Access the mobile Internet

Download applications

Base: 5.237 European adults

“Which of the following activities you do?”

14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%

Source: Forrester, 2011, Benchmark survey

Italy Germany UK Spain France


Most marketers ignore the mobile internet

• Europeans are 2,5 times more likely to browse on mobile Web than to download mobile applications

• But only 30% of marketers have optimized their websites for mobile browsing - only 25% are using mobile

search and only 19% buy mobile display advertising

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%



Mobile display

Mobile search





Receive SMS alerts





14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%




Message-based marketing remains king

• SMS is still by far the favorite mobile pastime of Europeans, accordingly 40% of marketers use SMS &

MMS – but still need to be used wisely

• Only 17% of Europeans check email on mobile, however 41% of marketers optimize their email programs

18%

24%

26%

32%

36%

19%

26%

24%

45%

38%

20%

37%

41%

32%

44%



Mobile display

Mobile search





Receive SMS alerts





14%

34%

31%

84%

8%

20%

20%

71%

6%

17%

50%

67%

4%

11%

21%

71%

5%

13%

14%

76%




Agenda



Mobile marketing: its adoption amongst European marketers 1


Audience: Understand mobile behavior of your target audience 1

The 2011 Mobile Technographics ladder (Base: 25.533 EU-7 adults)

Entertainers

19%

Source: Forrester, January 2011

Companies have to understand in which of those categories fall their own customers before planning

any mobile marketing activities

SuperConnecteds

12%

Connectors

7%

Communicators

36%

Talkers

30%

Inactives

10%

Access mobile Internet at least weekly and make regular use of multiple

advanced applications and services. The most sophisticated user

Heavy consumption of music, video, or games at least weekly

Primary usage of mobile phone is for work

Use app or advanced services that improve productivity or efficiency

Primary usage of mobile phone is to connect with other

Unlike talkers they use messaging application: SMS, MMS, IM or email

Use mobile phones primarily to talk

Mobile behavior is almost exclusively limited to voice calls

Do not own or use a mobile phone


Goal: Set your objective 2

• Mobile strategy must be aligned with business objectives

• For setting objectives, a 3-step approach is commonly used :

Increase revenues

Increase number

of customers

Increase revenue

per customer

• Drive new customer acquisition

• Increase customer retention & loyalty

• Increase audience size or page views

• Improve lead qualifications

• Drive sales with offers

• Improve branding & customer service

• Increase shopping frequency

• Cross-sell/upsell at point of sale

• Reduce development time w.quicker testing cycles

• Minimize personnel costs as well as machine

capital and maintenance costs associated with

paper products such as tickets

• Optimize advertising spend with more effective or

targeted marketing

• Reduce both working capital requirements and lost

sales through accurate physical inventory counts

• Reduce need for physical displays by offering

product information on cell phones

• Reduce time spent by staff on the phone by

utilizing SMS for information snippets such as

«your prescription is ready»

Reduce design costs

Reduce product costs

Reduce marketing costs

Reduce distribution costs

Reduce sales costs

Reduce customer service

costs

Reduce costs

A Start with the overall

business strategy B Identify overall

business objectives

C Choose relevant mobile

objectives, such as:


Define the kind of relationship to achieve with your customer

Acquaintance

ship

Objectives Examples

Increase brand

awareness

Acquire new

customers

or direct leads Friendship

Camaraderie

Confidence

Mobile ads

• Brand message are experienced on a smaller

screen, competing with fewer other elements

• They can forge a clearer idea in the user’s mind of

the brand positioning

Search ads with click to call functionality

• The immediacy of mobile means first transaction is

driven by need and direct intention

• Initial contact at a distinct moment will create

bonding experience with brand and consumer

Mobile opt-in couponing program in store

• Deepen relationship to develop repeat business

• Always on media can bridge offline & interactive

• By opting-in users allow brands to engage with

them in ongoing communication

Branded apps

• Evolve the relationship into ones with deep loyalty,

create confidantes out of consumers

• Customers are willing and proud to carry your

brands everywhere

Relation

Develop repeat

business with

customer

Develop brand

loyalty


Define the strategy by answering 4 principal questions 3

Customer reached?

• How many and which customers?

• How quickly?

• Do I need to train?

• What info, service or product?

• Location/timely delivery?

• Integration w. channels, process?

• For how much time?

• Current investments?

• Future investments?

• Direct distribution/telco/manufacturer

• Free, ad-sponsored or paid?

• Subscription or one-time?

Offer?

Commitment? Value chain?


While planning their marketing strategy, managers should

remember that…

.....

.....

.....

.....

Friendship

emphasizes

careful messaging

Camaraderie

requires deeper

knowledge of your

audience

Confidence

involves the most

stakeholders

Acquaintenceship

demands the

largest scale

• Create campaigns to reach the widest possible audience

• Consider the device types, operating systems and communication

technologies used by the majority of your prospects

• Target the right consumer at the best location and/or time with the

exact right call to action to get an opt-in or sale

• Program should target users at specific locations/times, with

particular characteristics, and/or who are searching for information

• Deepen your knowledge : work with colleagues responsible for

purchases to determine the kinds of offers that are most effective

• Choose when and where to encourage consumers to opt-in for

these communications

• Creating a mobile program that appeal to your fiercest loyalist

means collaborating with internal stakeholders

• Transactional apps require sign-off by executives, legal and

product development in addition to the marketing team


Technology: Choose technology that enhances the consumer

relationship you want

4

Some technologies suit certain objectives better than others

Acquaintanceship

programs

Friendship

programs

Camaraderie

programs

Confidence

programs

Choose technologies

with the greatest reach

SMS can be effectively

paired with offline

messaging to create an

acquaintanceship program

Choose technologies

with precise targeting

capabilities

Mobile search and display

offers many options for

targeting the right user at

the right time

Paired with click to call

Choose technologies that

delivers personalized

content and offers

Mobile-optimized email

helps marketers keep in

touch with smartphone

users

SMS opt-in programs allows

the greatest number of

consumers to receive offers

Choose deeply engaging,

long-term technologies

The best choice for a

confidence program is a

branded mobile application

with a high degree of utility

Display Search Email Social SMS/

MMS

Bar codes Branded

apps

Acquaintanceship

Friendship

Camaderie

Confidence


Agenda


Mobile marketing: it’s adoption amongst European marketers 1



• Consider what the user

need right now, include

clear call to action that

address customers

needs at the moment

Expiring offer increase

the value of having the

information now

Leverage your Consumer Convenience Quotient “CCQ” offering

Immediacy Context Simplicity

• Consider screen size

• Limit content and

simplify design

• Review regularly

eBay uses bar code

scan with the phone’s

camera to identify

product quickly

• Leverage relevancy

of your message by

using all information

about the consumer

The weather channel

uses location to send

relevant weather

information and ads


Technology innovations will drive context capability forward

NFC

(Near Field Communications)

Extensible sensors

Motion control

Augmented reality

HD audio/video

Conversational voice

Pressure sensors

Heat/light sensors

Chemical sensors

Biometrics

(e.g. fingerprints, iris)

2011 2012 2013 2014 2015 • Mobile context is “the sum total

of what your customer has told

you and is experiencing at his

moment of mobile engagement”

• Situation - Preference - Attitude

Technology evolution

Pay attention Determine market applicability

• Today’s fancy features will

become commonplace

• New sensors will reveal more

about the user’s environment

• Motion, voice and touch inputs

will refine the user interface

• Business and technology planning:

embracing existing contextual

information while planning for

anticipated technology

Source: Deloitte analysis and Forrester – survey conducted with worldwide device manufacturers


The evolution of context use will have 4 phases which

represent the future of mobile marketing

Level of sophistication

High

Low

2011 2012 2013 2014 2015

• Past user behavior

• GPS

• Time of day

• Consumer’s purchase intent

• In my store? In a competitor’s store?

• Within 1 hour of flight? Two days?

• How wide is the room?

• What floor in building? What aisle?

• Direction consumer facing?

• Light? Dark?

• What does this dress look like on me?

• Biometrics

• Conversational voice

• Gesture-based control

• Buy via voice based control/authentication

• New generation of product/services not

originate from online waving the phone

over a set of ingredients to find a recipe

• Sensor can detect smells, analyze breath

and assist navigation in building:

– Recommendations on perfumes

– Targeting in multistory malls

– Virtual product trial for clothing

Future possibilities:

Phase 1 :

master the

basic

Phase 2 :

layering in

intelligence

Contextual experiences will evolve in 4 stages

Phase 3 :

breaking from

PC contexts

Phase 4 : embracing

motion as a control

mechanism

• Basic use of context such as location is

important for search while time can

trigger an action: “only too shirts

remaining at this price”

• Variable price if your customer is in your

store/hotel or in your competitor’s one

• Different price 2 weeks away from

booking


• Better targeting

• Increase

sales/service

from brick &

mortar locations

• Better client

experience

To conclude: what could you expect from mobile marketing ?

Revenue

High

Low

Incremental

revenue

Basic context Layered intelligence Break from PC context Motion based control

Revenue from

new services

Time/

usage

• Higher profitability

due to in-store

higher purchase

• Higher price w.

elasticity

• Higher customer

satisfaction/loyalty

• Entirely new

digital revenue-

generating

services

• Improved

navigation

precision

• Increase usage of

mobile offering

• Deep engagement

with products under

consideration in a

personal

environment


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Date post:	09-May-2015
Category:	Marketing
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