Mobile Promotion Archive

All retailers to varying degrees are dabbling in mobile couponing as a means of engaging their customers, driving foot traffic and ultimately selling more product.  The technologies employed vary from a numeric code delivered via SMS text message through actual digitized bar codes that render on a mobile device for scanning at the point of sale.

Each of these options today represents a compromise over traditional printed coupons that most point of sale systems recognize.  Coupon codes requiring manual entry lengthen checkout time and can be error prone while mobile device displays cannot always render codes compatible with POS scanners.

Despite these limitations, retailers are pressing forward to take advantage of the value presented by location-based marketing.  Yet to really unleash the value of mobile couponing, it must be ubiquitous and require a minimal change to retailer operational processes in order to be cost effective.  That’s the thought which came to mind when I read a February 19, 2010 item at DMNews.com, titled “Provision Interactive Technologies teams with Ping Mobile for in-store mobile campaigns.”

The article describes a new offering as follows:

“Marketers can create an out-of-home/mobile campaign in a mall, airport, stadium or other public venue, and consumers can respond to the call to action on the signage by texting in. Coupons, tickets, vouchers and other printed items then become available from Provision’s 3D Media Centers, which consumers can print the coupons at the kiosks and redeem.”

Rather than focus redemption around legacy POS systems, this approach represents a value added intermediary that could be positioned in retail environments in a standalone fashion – the quantity of stations limited only by space and budget.  The solution is described as optimal for “malls, airports and other public locations,” but should have equal or greater value when resident in a single retail environment — especially for large retailers with hundreds or thousands of locations unable to upgrade all POS systems en masse.

This solution also alleviates the need to worry about technology and compatibility issues, and focus instead on creative ways of engaging customers with the most relevant offers.  Interactive Mediums’ Customer Engagement Platform features a variety of pre-packaged engagement actions designed just for this purpose.

The news seems to be increasingly populated with stories about 2D or “quick response” codes used as mobile calls to action.  As this article points out today on MobileMarketer.com, “bar codes offer a shortcut to accessing mobile content, information and mobile commerce.”  Considering the simplistic analogy to a shortcut, it’s rather amazing Neustar is attempting to solve the reach/incompatibility problem of 2D codes and in so doing add a presumably high growth aspect to their business.

The article outlines how Visa used 2D bar code technology as part of a sweepstakes promotion conducted at the recent Mobile World Congress in Spain.  You can read the specifics but as we mentioned recently here and here, 2D bar codes tend to find the greatest success in highly localized and controlled environments where there is some certainty around consumer handsets capable of reading the codes.

What Neustar wishes to do is offer a “clearinghouse” service so marketers can employ 2D codes without restricting their potential audience.  They plan to do this by standardizing previously incompatible codes across devices and operating systems.  It sounds like a lot of work to enable consumers a “short cut” to redeem information on their mobile devices.

2D bar codes appeal to our visual nature and longtime experience with traditional bar codes such as those scanned at the grocery store.  These codes imply ease of use, as well as data — lots of data about who purchased what product and when.

Marketers considering building sweepstakes or other promotions around 2D bar codes like Visa should consider the ease by which consumers today text a keyword to a shortcode to redeem information or be pointed to a mobile website – the exact same use case as with a 2D bar code.  Not only are you assured universal reach but even more data about the consumer can be obtained since a text interaction is bi-directional and can include a question and answer component in real time.

Marketers should focus less on the technology employed to engage their customers, and more on creating a compelling message or incentive which calls their customers to action — and then evaluate options for packaging and delivering the offer.  Right now marketers appear blinded by the “sexiness” of 2D bar codes, and Neustar is betting a new line of business on it.

2D barcodes and their imitators are likely to be among the biggest failures of 2010, at least among marketers who use these technologies expecting to achieve direct response rates like those of SMS text message programs.  That’s both a prediction and more strongly worded follow up to this recent post of ours regarding services claiming to offer 2D barcode benefits but that are consumable by nearly every mobile phone user.

Those benefits include ease of interaction; simply point your camera-equipped device at a code to have information immediately presented and/or be pointed to a website.  In localized programs outside the U.S. 2D bar codes have proven successful.  However, as pointed out in this very good post, standardization among devices and software (or more accurately, a lack of it) is a gating factor to widespread accessibility by consumers in the U.S.

“…2D barcodes…are pretty cool solutions for specific applications, such as mobile airline boarding passes or advanced inventory management, but not exactly the best of what’s out there for mobile consumer marketing in today’s rapidly changing world of mobile media and brand interaction.  The name of the game is to get as many high-quality customer interactions and conversation engagements as possible with your targeted demographic.  Severely limiting the potential response pool by applying restrictions will simply decrease the success of the campaign.”

Articles like this on ChiefMarketer.com present a different picture that marketers would be wise to balance against the facts on the ground.

The universal nature of SMS text messaging has created an impression that mobile marketing can access anyone, anytime and anywhere but until technologies like 2D bar codes and augmented reality are as “standardized” as SMS, text messaging will remain the defacto method of reaching as many of your target demographic as possible.

In the meantime, hybrid services requiring a consumer to snap a photo and send it via MMS are emerging that ultimately lack the instant gratification of real 2D codes and the universal nature of SMS.  Marketers be warned.

With competition for mobile consumer mindshare reaching a fever pitch, marketers will increasingly face an engagement barrier, even around SMS text message programs.  To break through and achieve their objectives, marketers should evaluate offerings such as Interactive Mediums’ multi-channel mobile customer engagement platform.

For companies that offer SMS alerting capabilities (including Interactive Mediums) and their customers, results like those cited in this January 29, 2010 MobileMarketingWatch.com post are proof positive of the value of text messaging:

“…a pilot SMS reminder solution…ended with unprecedented results – saving Kaiser nearly $150 per appointment and over $275,000 at a single clinic.”

Efficiencies and costs savings were at the heart of the value in this example, which is apparently driving consumer acceptance of text message alerts – the post’s title is after all, “Survey: Consumers Want SMS Alerts.”  The study was conducted in the U.K., but you can expect similar attitudes prevail in the U.S.

While these numbers are impressive, I would argue that marketers need to keep their eyes on the top line/revenue growth “yin” to the cost savings/efficiencies “yang” offered by text messaging.  That’s the theme behind the diagram included in line with this post.

As marketers in any segment – healthcare or otherwise – approach the mobile channel, they have a variety of options for getting started, as we have previously discussed around mapping strategy to the mobile channel.

Many organizations will approach text messaging from a non-marketing perspective, which can yield impressive cost savings and efficiencies among an entire customer base – which tends to be dominated by customers served at a loss or break-even.  Thus the utility of text messaging as a cost saver.

Those companies that leverage mobile marketing techniques in a parallel fashion to target the revenue side of business should experience even greater results by increasing the pool of highest value customers – the 20 or so percent which generate the greatest value, be it profits or revenue.  The key to unlocking that added value is employing mobile engagement techniques such as promotions and others that call consumers to action.

The title of this article today on DMNews.com titled, “Marketers still missing opportunities with loyalty programs: Survey” immediately brought to mind this recent post of ours, as well as the answer to the missing component: mobile engagement.

The article doesn’t call this out per se, but does strongly imply that engaging in-store strategies such as SMS text message promotions are an absolute necessity to address the potential threat to retailers offered by comparison enabled mobile shoppers:

“…when it comes to consumers, nearly 65% acquired information about the programs in retail environments at the point of sale, compared to only 2.8% who did so on social media networks.”

The article is based on results of a study released today by the Chief Marketing Officer Council and conducted by IBM and Ricoh.  Its key finding is that although marketers are focusing spend on social networks to communicate loyalty programs, consumers are unreceptive to this channel as opposed to strong calls to action in and around the point of sale.

A similar focus on email marketing is also cited as a disconnect between marketer priories and consumer preferences.  Speaking of preferences, relevancy is found to be at the core of effective loyalty programs regardless of how an offer is delivered.  Certainly, data is crucial to developing targeted offers, the kind of which can be efficiently collected also via text message programs such as customer surveys.

Marketers need to as well be aware that even relevant offers may struggle against the tide of comparison shopping enabled consumers expected to change the retail landscape this year and beyond.  Successful retailers will build relevancy into their loyalty programs, but also recognize that engagement strategies such as SMS text message promotions advertised in store can prevent customers from leaving for better deals, addressing key challenges threatening to make loyalty a mythical concept.

This January 20, 2010 article on Mobile-Financial.com features results of a survey of mobile commerce shoppers that retailers would be wise to review.  As we have blogged about before, comparison shopping on mobile devices represents a challenge to retail marketers, one that begs for compelling engagement strategies to keep customers from leaving stores for better deals elsewhere.

The survey finds product recommendations accessible via mobile devices as a huge opportunity for retailers, with 65 percent of those surveyed saying they would make purchases were it easier to find products of interest.  Retailers heeding this advice will implement mobile-accessible product reviews and recommendations based on factors such as real time inputs by a consumer (looking for a plasma screen TV, what are my options?) and historical transaction data if available (purchased TV in the past, suggest a DVD player).

A potential battleground retailers need to keep eyes on is the mobile product reviews/recommendations/comparison space.  On one hand, retailers can develop branded mobile experiences for their customers that are essentially “closed” environments by virtue of product selection limited to that one retailer.  Combined with clever engagement strategies such as mobile promotions, this can effectively combat third parties that aggregate product information, prices and reviews across retailers.

These services could render retail store environments as mere “pick up” spots for products browsed, reviewed, and compared by mobile shoppers.  The retail sector may be in store for a complete shift in power unless mobile engagement strategies rise to the top of marketing plans and priorities.

Nowhere else was the popularity of the iPhone as a marketing platform on display than at the National Retail Federation’s 99th Annual Convention this week in New York.  So says this article posted today on RetailWire.com titled, “Apple Hits the NRF Show Floor, Sort of” (registration required).

Both attendees and exhibitors alike were apparently personally armed with the devices and reportedly had either iPhone apps already in the market or were preparing them.  Large technology vendors in attendance also had iPhone apps to talk about, from Oracle and Sterling Commerce to Intel.  Funny that Apple itself was absent.

The observations reported in the article highlight just how powerful a marketing platform the iPhone has become yet retailers should not forget about text messaging as an effective mobile marketing method that can reach almost any mobile phone user.  Although applications are popular, engagement via text messaging is being used by retailers to overcome challenges around loyalty and comparison shopping behavior.

The best strategy is a balanced one considering the impact but lower reach of a rich smartphone application as opposed to the almost universal reach offered by SMS text messaging, especially those facilitating promotions such as sweepstakes and contests.  Targeting the mobile customer experience first, then determining the blend of approaches to achieve your goals is becoming the standard of excellence for successful mobile marketers.

As if it were not hard enough for marketers to know where to begin with respect to mobile marketing, companies like SnapTag and JagTag are creating confusion around one of the most talked about mobile applications: bar codes.

This January 7, 2009 post on MobileMarketingWatch.com describes an offering by a new company called JagTag that offers a very similar service to SnapTag (which we blogged about here back in October of 2009).

These services appeal to marketer’s fears about the limited reach of smartphones capable of reading bar codes.  This is due to the somewhat real issue of handsets often needing special software to interpret the codes.  When marketers think about bar codes on mobile devices, they should break down the options as follows:

• As a coupon delivery and redeeming method.
• As a replacement for plastic cards (like your grocery store loyalty or video store cards).
• As a means of communicating information and/or pointing consumers to rich mobile interactions.

What Jag and Snap Tags do is imply that by using relatively ubiquitous MMS-enabled camera phones, consumers can be called to action as follows: take a picture of a code, send it via MMS, then receive of something of value – pointers to websites, a text message, offer, coupon code, etc.

I fail to see how this adds value to an interaction in the mobile channel versus even more common SMS text messaging.  The only case I can identify is when a brand wants to create an arguably fun activity for a consumer whereby they have a chance to use the camera feature/MMS sending capability of their phone.  That is a very weak scenario in my view.

Dwell time was a concept I first came across years ago as a web analytics measure designed to provide ecommerce marketers with insight into how long a visitor took to either make a buy decision or abandon the site for another.  It seems the same is happening around mobile enabled consumers as they browse retail stores, introducing new challenges for marketers.

Although it doesn’t say so, this post yesterday on eMarketer.com suggests that providing incentives designed to keep your mobile savvy customers in store is closely tied to ensuring they don’t bail and visit another store for a better deal:

“The threat comes from in-store shoppers using their phones to check sales prices at other retailers.  Compete found that 41% of iPhone users and 43% of Android users do just that.”

“You could argue that every retailer on the planet is an off-balance-sheet showroom for Amazon.  So if you go into a retailer’s store and you see something you like—type in that manufacturer’s SKU number and check the price on Amazon. You’ve looked at it, you’ve touched it, felt it, and now you’re getting the benefit of potentially getting the best price on it too.”

To meet this challenge, the post recommends “A retailer’s best defense for maintaining customer loyalty is to develop a mobile offering that allows in-store shoppers access to customer reviews and other product information on its Website.   This is where the opportunity lies for retailers.  By providing mobile access to their extensive online product information, they help customers feel more comfortable about making a purchase.”

This is a logical recommendation, yet it will not prevent price sensitive, mobile enabled customers from comparison shopping and potentially leaving the store.  It also ignores reseach suggesting that loyalty not be the target, but rather engagement.

To keep customers in-store and increase the probability of purchase, retailers should build engagement strategies into their mobile plans such as text message promotions like sweepstakes and other contests.

Consumers value their time as much as their money, which is why many are excited at the prospect of instantly performing a price comparison quickly then moving onto another store.  Retailers who create engaging mobile programs that keep customers in-store such as promotions lessen the likelihood that they will take the time to visit another store.

2009 marked the beginning of an effort at Interactive Mediums to keep watch on the mobile marketing industry and lend our unique perspective on happenings as they relate to the value we bring to our clients.

The pace of innovation in mobile and urgency to begin engaging customers in mobile interactions demands we pay attention to news of the day.  More importantly is that we have a relevant point of view.  Hello Mobile! is our forum for communicating these views.  Others are listening as well, such as MobileMarketer.com which today recognized our article “9 Steps for SMS Marketing” among the “Top 15 industry-expert columns of 2009.”

As 2010 begins, look for further insights, commentaries and directives from our blog.  Before we look forward though, here are the top 10 most popular posts of 2009 – I wonder what this list will look like next year, the key trends and topics?  Stay tuned.

• Is Apple the Mobile Walmart?
• The Key to Mobile Customer Data
• Acxiom Clients Seeking a Differentiated Mobile Offering Should Look Elsewhere
• Advice to Marketers: Don’t Confuse Mobile Advertising with Mobile Marketing (or Active Customer Engagement)
• Establishment Converges on Active Customer Engagement
• Lessons From Less Than Successful Mobile Apps
• Thankfully, More about Active Customer Engagement
• Vendor Lines Blurring but One Thing is Clear: Active Customer Engagement
• Insight into Apple’s App Store approval process
• Best in Class Marketers to Focus on Customer Engagement in 2010