“According to DM2PRO and Quattro, 15% of advertisers and agencies spent more than 60% of their app budgets on promotion in 2009, but more than one-third spent less than 5%.  Promotional budgets will need to increase along with overall investment for apps to find their way to users.”

Marketers would be wise to consider the immediacy of text messaging to communicate mobile application availability and directly link consumers to download and install it.  Consider the ease by which signage in store can point customers to a text interaction that includes a direct link to download the application.  Convenience is key to entice consumers to take action and matching their behavior (out and about) with a device in hand is a recipe for success.

At the same time, marketers have the chance to create or build upon their opt in database of mobile subscribers, and learn more about them using engagement techniques like surveys and others that collect information about mobile consumers (like their zip codes or product preferences).  This data can in turn be used to segment the mobile audience in ways aligned with unique offers and calls to action.

Standing out from the crowd is already key to app success, so hoping your effort is discovered in the App Store can no longer be considered an effective strategy to ensuring ROI.  I say “App Store,” because the article points to the iPhone as the platform of choice for the time being, well ahead of Android and others.  Remember, when it comes to budgeting for the promotion of your application, among the most effective means to do so is to connect consumers with your app via creative use of text messaging programs.

Yes, that’s a UPS truck snapped today outside the local Starbucks, in all the glory of Chicago winter weather on the company’s busiest day – some 20 million packages according to Donna.

Yet, the Blackberry application, like an iPhone version preceding it, is designed to enable business and consumer customers alike to find a drop off location, receive shipping quotes, order pickups and check on package delivery status.  Dig beneath the details, as we did with Donna, and you gain a greater appreciation for what was involved:

• UPS employs an Information Technology group 5,000 strong, who possess deep mobile application expertise and were responsible for creating applications which interact with UPS’ massive global network of package and delivery data.
• Considerable research went into creating the new mobile application, to understand how best to serve their customers and offer a differentiated user experience from competing delivery services.  To these ends, UPS discovered customers wanted a fully native application as opposed to be directed to a mobile website.  Why?  Because application code can be fully loaded on a handset.  From the user’s perspective, this offers a more natural responsiveness consumers associate with desktop computer applications, with time taken only to bring new data across the network.  Navigating a website, even one optimized for mobile, can often seem more cumbersome and of course in the event of a network lapse the session will end abruptly.  Moreover, the UPS app allows consumers to log into the application once, and automatically upon launch relate any packages to their account to view instant status – no keying in of lengthy tracking numbers are required.
• Some UPS business customers are beginning to request the ability to have text messages sent to recipients and/or senders, providing notification of package delivery.  Even greater reach could be possible were UPS to enable customers to text their tracking numbers to receive instant updates – all of which are capabilities available in Interactive Mediums’ Engagement Platform.

Few organizations have the staff, funding or internal systems to execute a mobile strategy to the extent UPS has; for those who lack any of these critical pieces firms like Interactive Mediums stand ready with a flexible Customer Engagement Platform optimized for mobile interactions as well as a wealth of experience developing mobile applications which map to the way consumers want to engage with a business.

As UPS says “What Can Brown Do For You?” we say “How can Interactive Mediums power more effective mobile interactions for your customers?”

Just keep in mind that fixating on apps as your entre into mobile marketing is not the right approach.  Instead, you need to consider your objectives and how they can be met by available mobile marketing approaches, including apps.

The paper cleverly outlines a hypothetical conversation between a marketer and his executive team.  The marketer mentions that mobile presents a unique opportunity for deeper engagement with their customers (true), but the conversation quickly identifies a mobile app as the means (and many questions emerge).

The paper mentions the following:

• What devices, operating systems and handsets allow us to reach the target audience?
• Where does the transaction with the audience occur?
• Why would our audience seek brand engagement though the mobile channel?
• How will success be measured from both internal metrics and external user perspectives?

These are absolutely the right questions as they don’t imply an application is the answer; instead, they speak to mapping your objectives to the mobile customer experience.  Unfortunately, the paper poses them in line with the assumption that an app is in fact the answer.

The paper includes the same diagram we highlighted in this recent blog post where we commented on research into the types of applications most often retained and used.  Applications can be the centerpiece of many mobile marketing strategies, but certainly not all as highlighted in the research. 

Text messaging and other mobile interactions, as well as the mobile web are equal partners in executing mobile customer relationship management strategies.  All or only some may form the basis of winning mobile marketing strategies.  Partners like Interactive Mediums stand ready to prescribe and deliver the right mix for your business.

A December 1, 2009 article on BrandWeek.com titled, “iPhone Apps Put Brands in Hands,” is a cleverly named piece describing the bandwagon that is the iPhone and highlights a number of successes.  More interesting, I thought, were observations about less than successful apps that others should keep in mind as they approach mobile application projects.

By industry, the article highlights the following less than successful examples:

Retail: Gap’s StyleMixer was a terrific idea other retailers are employing or considering; the ability to create outfits based on clothing item combinations.  Gap’s app failed to resonate because there were too few options for customers to create their custom fashions.  Lesson learned: Understand how your customers want to use your application and interview a representative sample if necessary.

Banking: MasterCard’s Priceless Picks relies on user generated content which is moderated.  Users panned the application, which appears to allow customers to post their “priceless” moments, per the well known advertising campaign.  Users complained of censorship of posts and heavy advertising.  Lesson learned: If the intent is to promote a “fun” application with a social element, be certain that you don’t disappoint customers by building an overtly ad supported and patently restrictive forum.

Consumer Packaged Goods: Budweiser built an application designed to help consumers find the nearest location their product could be purchased.  While at first seemingly useful, the ubiquity of their product makes such an application seem unnecessary, which is how users reacted to it.  Lesson learned: “Finder” style applications are popular but be certain such apps have utility for your targeted customer.  In Buds case, it may have been w(e)iser to create an app which ties in store purchase promotions and a loyalty program designed to drive consumption.

Apparel: This one was out of left field.  Puma created an application which allows users to track the financial performance of their portfolios against the backdrop of a model who removes clothes as the market falls.  The sheer size of the application was its downfall, meaning it took too long to download.  Lesson learned: Even if this app were easy to download, there appears to be no connection between the application’s intended use and the company’s products, to say nothing of its tastefulness.

Media: The Wall Street Journal app requires users to pay a weekly subscription fee, even if one is subscribed to the traditional online version.  With so much news content freely offered online and in apps alike, charging a nominal fee such as this would seem to prevent widespread use, which has been the case.  Lesson learned: If you charge for content that is similar to what others provide for free, reconsider your strategy and think about incorporating advertising to support the investment.

Restaurant/Food: Burger King created an iPhone application that allows customers to place orders, but only from one area of New York.  The company has not yet rolled out the capability nationally, which is expected of a brand with locations everywhere in the U.S.  Lesson learned: For national brands, ensure that if you create a geographically limited application you plan to either kill it or roll it out widely within a reasonable timeframe.  From my POV, Starbucks, are you listening?

These thoughts came to mind upon seeing an article on eMarketer.com today titled, “eMarketer Cuts Through the Mobile Penetration Hype.”  The article debates whether distinctions between “mobile subscriber” and “mobile subscriptions” are material in research suggestion the penetration for mobile ranges between 75 and 90 percent of the U.S. population.  Some multi device owning mobile subscribers may be double counted in estimates using subscriptions as the measure, as in figures published by CTIA – The Wireless Association.

As a marketer, whenever I see presentations illustrating the vastness of the mobile marketing opportunity based on the number of people with devices, I cringe a bit.  By now, it should be common knowledge that the majority of people you would wish to market your products or services to have a mobile phone.  The discussion should instead be focused on (1) who are my customers, (2) how can I serve them better, (3) how can I serve them better via the mobile channel, and (4) what means are at my disposal to do so.

Almost everyone has a text message enabled phone, some demographics more closely align with the iPhone and Smartphones more generally, and soon most mobile device users will be capable of receiving a rich mobile web experience.  The mobile industry does itself a disservice by emphasizing the vastness of mobile device penetration, particularly when talking to marketers who will only achieve results by focusing on relevant and timely interactions with their customers.

This question came to mind today as I read an October 30, 2009 post on MobileMarketingWatch.com titled “Apple Hits 100k Apps, Does Quantity Matter?”  As the number of applications available for the iPhone passes the 100k barrier, the question of quantity versus quality logically arises.  Particularly in light of its popularity as an advertising and marketing platform.  Is the iPhone somehow less attractive to marketers if their message has to compete with 99,999 others?

I agree with the author’s point that many consumers are drawn to the iPhone due to the sheer number and diversity of apps available – like the ad slogan says, “There’s an app for that.”  With respect to advertisers and marketers, the challenge is ensuring a targeted, high quality application is the goal, along with making it patently clear to consumers that the app is available.  The most successful applications today follow this formula, which is why the iPhone should remain a popular choice for the mobile marketer, particularly for reaching its typical user demographic.

The emergence of Android as an alternative this year and into next seems to pose a threat to Apple’s dominance in mobile applications, assuming that it achieves parity or better.  The post points out, however, that:

“The question remains if Android Apps, which there will be fewer of, at least at first, will be of any higher quality than the Apple apps.  According to AndAppStore, there are 259 apps available for Android including ‘aBubblePop,’ so let’s just say the quality competition, if Android hopes to win it, has yet hit its prime.”

I’d like to suggest that the number or quality of applications may be irrelevant, particularly to marketers.  Applications as a segment may continue to be dominated by Apple into 2010 and beyond simply because of the marketing might Apple brings to the game.  The iPhone business blends the niche, maniacal loyalty of Apple’s traditional computer business with the volume market dominance in MP3 music players.  Overlay Apple’s powerful promotional and branding engine, a single app store and a loyal and growing consumer-base, and Android has an uphill battle to say the least.

I sense already that Android will become a great platform for the mobile web, but not so much applications, due simply to the lack of a strong consumer friendly marketing message, and a single, very easy to use app store.  I’m not confident that a diverse market of carrier App stores will be as appealing as Apple’s.  Marketers should note this as they look to take advantage of Android in their marketing plans.

(Additional Context Note: My colleague John Wood, upon reading this post, brought to my attention that Google is in fact hosting its own large scale App Store at http://www.android.com/market/, and that the number of apps for Android today is closer to 10,000, not the 259 as quoted in the MobileMarketingWatch.com post.  In spite of this, I think Apple’s super consumer friendly approach is going to be a tough nut to crack, but if anyone can do it, it’s going to have to be Google).

The article is about an iPhone application designed to promote Toyota’s new Prius as part of a broader product launch intended to take the third generation vehicle mainstream beyond its initial customer base.   Although the app is interesting, I thought the details surrounding the mobile customer experience and target customer were equally so.

The connection to Times Square is a concession to the power of targeting the “out and about” consumer, but in this instance there’s a linkage between application users and the message:

“Using the application, people were able to draw on the Reuters Times Square digital billboard Oct.26-28.”

But why an iPhone as opposed to another platform or none at all?  Although I am sure Toyota considered the platform’s demographics, the company also had data to support an iPhone application as opposed to other platforms; more than 60 percent of traffic to the company’s WAP (mobile optimized) website comes from iPhone users.

The WAP site itself is a centerpiece of the iPhone application’s promotional effort, which also includes interactive print magazine advertisements and the company’s Prius Facebook fan page.

Marketers planning product launches and other marketing programs who have the similar luxury of analyzing mobile web traffic and their sources would be wise to do the same to make more informed decisions when targeting the mobile customer experience.

Two days ago, The New York Times ran an article titled, “Big Cellphone Makers Shifting to Android System.”  By offering a free, open source, rich platform — unlike Microsoft — and that features capabilities similar to that of the iPhone, Google is doing more than either Apple or Microsoft to accelerate the promise of mobile.  If both scale and capabilities are key to a large potential market, Android seems to be satisfying both requirements.  Consider:

“Twelve Android handsets have been announced this year, with dozens more expected next year. Motorola has dropped Windows Mobile from its line entirely in a switch to Android. HTC, a major cellphone maker, expects half its phones sold this year to run Android. Dell is using Android for its entry into the cellphone market.”

“All four of the largest carriers in the United States have now agreed to offer Android phones.” – even AT&T, home of the iPhone.

“Android is ramping with more manufacturers and more price points. It is going to have a pretty significant impact.”

“Android is free, while Windows Mobile costs manufacturers $15 to $25 a phone.”

“Android has attracted far more applications for consumers in the first year than Windows Mobile has in a decade.”

The article raises the specter of failure, however, given the general lackluster response to the initial three Android devices available.  Still, the marketing and commerce possibilities today will pale in comparison to those available once a majority of consumers replace today’s devices with those supporting a rich end user experience like Android offers.

Marketers with an eye on iPhone applications now should look to partners with diverse capabilities so that application requirements, work flow concepts and user experience plans can be re-purposed for creating versions for Android and other rapidly improving platforms such as Blackberry.

Having been in meetings with businesses considering iPhone development projects, I can say not all view the mobile web this way.  Without a well researched understanding of how a customer would interact with the mobile web and derive value from such interactions, many businesses have been offering mobile versions for some time simply because it makes sense (be wherever possible customers might want to find you, convert your site to size correctly on a small screen).  Next, they are looking at Smartphone apps, iPhone in particular, as “must have” novelties to be pursued quickly via re-packaging existing small form web content into an application “container.”  Smart business people are choosing these short sighted paths.  How could this be?

Today I came across two different articles that help explain the situation.  One, titled “The sad state of the mobile Web gets even sadder,” from an InfoWorld blogger, describes how ill-suited the mobile web today is for application developers – especially those using tools such as Adobe Flash, which  recently has been positioned as a rich app development platform to run within mobile browsers.  It goes without saying (but I will anyway), that this means the mobile web for now is a viable content delivery platform alone, to complement other mobile interaction strategies – it cannot practically be otherwise.   So the mobile web has a valuable place within the mobile customer experience, but as basis or reason for developing a Smartphone application it is not.

The other post, from the TechFlash blog, “Microsoft’s Ballmer: The Internet is not designed for the iPhone,” quotes Microsoft’s Steve Balmer answering the question of whether mobile phones could supplant PCs as the technology of choice for mobile consumers:

“Let’s face it, the Internet was designed for the PC.  The Intrnet is not designed for the iPhone…That’s why they’ve got 75,000 applications — they’re all trying to make the Internet look decent on the iPhone.”

Of course his answer is colored by Microsoft’s position, or lack thereof, within the Smartphone space, but it also illustrates how many businesses are incorrectly viewing the mobile web versus applications.

Without widely adopted best practices for navigating the mobile customer experience based on business objectives, too many marketers are taking siloed approaches to mobile.  No, the internet was not designed for the iPhone, but it can provide a conduit to real-time data for an application designed for the unique form factor of a handset and intended to help a consumer perform some task or make a better decision.  The internet was also not designed for the mobile web, but likewise web content can be a powerful contributor to mobile interaction strategies.  Some businesses are doing it right, like Newser, and others would be wise to follow their lead.

Read between the lines, and you realize that like many content-based web businesses, Newser is ad supported.  So anything it can do to provide an attractive platform for serving ad messages to a highly engaged audience drives revenue.

Relative to the mobile web, Newser on the iPhone immediately is a more effective ad platform – users are engaged on a level very different from a mobile website with its load times, page to page navigation, scrolling and general user interface themes that are shared among content websites.

Applications also encompass a great deal of logic stored locally on a mobile device so a user generally perceives a swifter, friendlier experience.  As the mobile web gets better, that many change, yet remember that even with broadband internet now nearly ubiquitous, there is still a healthy market for well designed desktop applications.

Pages views of a mobile web presence can outpace application downloads, but the value of ads served in a native Smartphone application should be generally higher given greater user engagement.  Businesses looking to expand their footprints to the mobile channel, but especially those in content businesses, need to remember this distinction and seek partners like Interactive Mediums that can help best take advantage of native device capabilities.

Similar to how Interactive Mediums client Newser recently extended its service to mobile via an iPhone application as part of an ongoing mobile channel strategy, Coupons.com is also making progress beyond its initial steps.

Although the notions of replacing loyalty cards with mobile devices and presenting digital coupons or bar codes at the point of sale are very sexy, in practice these face all sorts of challenges – technically and process-wise.  Coupons.com appears to have learned how to overcome them by focusing on the mobile customer experience.

“…integrating digital coupons with loyalty cards is the most practical solution to enabling downloadable discounts in busy stores where consumers often have multiple purchases eligible for discounts.”

“We’ve seen the [couponing] industry flirt with all things of digital format for some time, all the way from the absurd—the notion of presenting barcodes on phones in high-volume checkout lanes—to the legitimate and tested, including digital loading onto loyalty cards.”

With a shopping list iPhone application already under its belt, in taking its mobile strategy to the next level Coupons.com has done the following:

• Offer traditional and mobile optimized websites which allow consumers to register their loyalty cards, browse coupon offers, and elect to have certain offers digitally attached to their accounts so at the point of sale they are redeemed as a group, as opposed to one at a time.
• A revised shopping list application which allows consumers to take photos of product bar codes to automatically have items added to a grocery list.  The application also integrates with the coupon program so that eligible products are flagged for addition to the consumer’s loyalty card account.
• Recognize the difference between coupon redemption associated with multi-product purchases (grocery) versus those associated with one large purchase (restaurant).  To that end, the mobile site allows selected offers to be saved on mobile devices for presentment at checkout without need for a loyalty card or account.

The last point is notable as it recognizes that coupons and offers may not be one in the same, and can have different practical applications:

“Mobile presentment has been a technology looking for a use…Where it works best is in low-volume, high-margin transactions—consumer electronics and things like that– and at the local level. We have over 12,000 offers with restaurants, dry cleaners and professional services, and phone presentment works very well there.”

“It’s all about moving people quickly through those checkout lines…Searching for multiple coupons on your phone, then showing each one, perhaps dropping your phone in the process—those are not conducive to speed.”

What is speeding up is the rate at which mobile marketers are learning from, evolving and improving upon their initial experiences.  Exciting times for mobile marketing.

When attempting to use this with my Jewel/Osco grocery preferred card, it failed to work, leading me to conclude that widespread adoption was far from certain.  This evening I had a chance to try the application again, this time with my Blockbuster account.  And it actually worked.

Perhaps Blockbuster stores have more advanced scanning equipment.  No matter why it worked in this case, the experience would have been enhanced further by connecting my debit or credit account so I would not have to separately pay for my DVD rentals.

Assuming other cards may work as well as this example, you could say the application is redeemed.  Just like like mobile codes at the point of sale should.

Setup was a snap.  I simply keyed in the numbers on my cards and the application generated visual bar codes that presumably serve the same function as the code or magnetic strip on the cards.  I had visions of being pushed discounts and special offers to enhance my shopping experience.  So it was with this excited point of view I stopped at Jewel last night to pick up a few things and try out my new mobile loyalty card.  I handed my iPhone to the cashier, they hovered the device’s brightly lit screen over the scanner, and…

Nothing.  It didn’t work, so I had to fish the plastic card from my wallet for the cashier to scan as usual.  If Jewel needs to replace its scanners and point of sale systems for this to work, we are a long ways away from replacing plastic with mobile devices.  My hope is that there was just some kind of glitch, but if not, then it suggests ubiquitous SMS text message-based loyalty programs and coupons have a strong future in enhancing the shopping experience.

The movement to create apps is akin to a modern day gold rush, which means a time is coming soon when demand coalesces around real business needs more so than novelty.  When this happens, the supply side of the equation (i.e. application developers) may experience a shock as customers look to them not for novel applications, but guidance in taking advantage of the mobile channel to achieve real business results.  The same is likely to occur in the text message marketing arena, which is seeing demand driven often by price and one-off tactics.

Marketers with the vision to see mobile as the interaction channel that it is would be wise to partner with firms focused on solving business problems.  Demand for developer talent may be outstripping supply, and low cost text messaging services commonplace, but you can be assured that these extremes will soon come together as the overall mobile marketplace gets closer to an equilibrium.

Location oriented businesses like real estate are increasingly adopting mobile applications to bring device-specific capabilities like GPS and augmented reality to their services – and in so doing adding a layer of value not possible while tethered to a computer.  I was wondering how these capabilities might be of use to me as a car buyer and iPhone user.

At the onset of my buying cycle, I like to browse dealer lots when they are closed, so that I can look at vehicles without being prodded by a salesperson.  I know many people do the same.  Imagine being able to point your device at a particular car, and see instantly its price, features, options, engine/interior photos, reviews, warranty information, financing details, sales contact/test drive scheduler and other information to help inform a buying decision.  How could this be possible?

Not being an iPhone developer, I can only imagine, but I have read how in Asia there are applications of the camera feature being used by consumers to snap pictures of codes from posters which are then scanned at the point of sale to redeem discounts.  Why not match a photo of a VIN or other visible identifier on a vehicle with a database, to then call up all related information about a particular car?

Say I don’t like the color, or the car is used and mileage too high for my taste.  I want to see where I might find the same model in a different color or with lower mileage, and be directed to other dealers in my area, sorted by price.  Using the same lookup described above, a list of matching alternatives could be presented along with the option of point to point directions.

I like to plan this process in advance, but having the ability to change course instantly based on what I discover in real time would be of tremendous value to consumers, I think.  Even “discover” cars that match my preferences by pointing a device at a dealer lot as I drive by and pull up a list of matching inventory automatically.

The key is identifying what problems a mobile application can solve, and there appear to be many.  Moreover, an eye on the Mobile Customer Experience can lead to additional value, such as price change alerts sent via SMS text message with links to details on a mobile optimized website, or the ability to set alerts via an application.  Maybe even a link to grab the vehicle’s CarFax report in real time would add value to the shopping experience, as in the case of a used car.

With Smartphone adoption escalating rapidly, consumers will soon come to expect these and as yet thought of ways of interacting with online services.  In August 2009, analyst firm Gartner Group issued a Smartphone market report (see chart) showing sales gaining 27% in the second quarter over the same time period last year, and penetration as a percentage of all mobile phones increasing to 14% from 10% a year ago.  On the device side, Nokia leads with 45% share, but Apple’s share increased the most, from 3% to 13%, and all observers expect this to accelerate as the proliferation of applications available continues to dominate all other devices.

Thankfully I work for a firm with mobile technology experts who have an intimate understanding of what’s possible, particularly with location and GPS capabilities.

My colleague Doug Barth raised a good point; when it comes to location it’s not simply a question of rich iPhone application or nothing (or dumb phone using tower triangulation).  The often forgotten mobile web has the potential to become the defacto and preferred means of utilizing location based mobile services.  Consider Doug’s insights:

“In iPhone OS 3.0 (the latest version), Safari includes a JavaScript API for finding the current location of a user.  Websites can use that API to get the same location tracking that they previously needed to write a native application under iPhone OS 2.0.

A few sites have taken advantage of this functionality.  Flickr’s mobile site can show photos near you using the location services.  Google’s Latitude service is available as a web app.  It allows visitors to update their location by visiting the website.  Google also supports location-aware searches on supported devices.

Webkit, the browser engine Safari is built on, is also used on a number of other devices (Android, Nokia, Palm Pre, and soon Blackberry).  That may mean that future versions of those devices will inherit the same location aware APIs.”

For mobile marketers, what this means is that it’s more important than ever to understand all the ways by which you can target the on the go consumer, given your business objectives.  A time is coming soon when today’s iPhone-limited location and augmented reality app is available in similar form via mobile web on nearly any device.

I can now eat (or drink) my words because at 5 pm Central time today I received an email promoting two new iPhone applications direct from Starbucks. The message was addressed to me as a loyal customer, which either means I am part of a unique group of frequent customers or they classify everyone in their opt in database as “loyal.”

I was so excited, perhaps due to caffeine addiction, that I bit the bullet and finally upgraded my Blackberry to the latest iPhone. I just had to have these apps. One of them looked as if it would allow the device to be used instead of my black plastic discount/loyalty card at the point of sale. I imagined now being able to have an interactive, on-the-go relationship not just with Starbucks, but another strong brand I prefer, Chipotle Mexican Grill.

Then after buying my new iPhone and thinking about all this, I looked more closely at the email. Apparently, the ability to pay using one of the applications is for now limited to locations in California. As a Chicagoan, I have to wait to enjoy this feature. The second of the two apps appears a more traditional store finder, still a useful application if not similar of what others have already accomplished.

It’s interesting how I adopted the iPhone because I got an email from a brand like Starbucks, with which I have an tight relationship. I imagine that in most cases, iPhone purchases were not based on wanting access to a particular application; rather they were driven by a desire for the experience offered. If nothing else, this was a great example of brand power.

“What really is the role of the mobile application?”

“…why would anyone want to have an application when an easily accessed mobile-friendly Web site would offer the same information?”

The obvious answer today is that it depends on the marketer’s goal and who they are targeting.  Until bandwidth is no longer a constraint and a richness of experience can be created within a mobile browser similar to what is possible on a proprietary platform like the iPhone, applications will continue to play a significant role in successfully marketing to the mobile consumer.

As I’ve said many times here, smart marketers are looking at developing effective mobile customer experiences first, then considering the technologies available to them to execute their programs.  The article raises frustration from app developers on the difficulty of marketing their apps within Apple’s App Store.  I would argue it’s incumbent on app developers or those who hire them to have a plan for engaging on the go consumers such that applications are proactively found as part of a planned experience.  As the article points out the number of apps available today is huge and growing fast, meaning marketers cannot leave to chance that their hard work is recognized among the crowd:

“If marketers and consumers cannot handle 150,000 applications, what will they do one year down the road – when the number may quadruple?”

There are exceptions such as when a stand-alone application has value, but over time I think those examples will be a minority of the successful ones.  As with anything, a focus on cost can cloud judgment, leading marketers down a suboptimal path that fails to see the forest through the trees:

“In many cases, it is far cheaper to build out a mobile or mobile-friendly Web site than it is to create a mobile application.“

“While the site is accessed from all devices, the application is limited to the handset model and platform. This limitation is factored into the cost comparisons.”

Perhaps looking at the relationship between PC applications and the websites of their developers can add to the discussion.  Few see desktop apps going the way of the dodo in spite of high speed internet access and rich web applications.  In fact, the web is a channel for selling, distributing and supporting many software applications.  In time, in spite of Apple’s current day stranglehold on smart applications’ mindshare, I think this will ultimately happen.  You would have to agree if you buy into the notion that it’s the device agnostic mobile customer experience which matters most, not a specific technology like a mobile app or gated app store.

At first, you would not imagine any given the legacy customer base falling outside the typical mobile user demographic. Yet, thinking about it further, there could be several high value applications (and pretty cool ones too) that the brand should move on immediately in my view.

The Motor Company has seen demand crash for its products in recent times due to the economy and as a result has had to layoff workers. At the same time, they have made strides to expand the pie of available customers by tailoring products to a younger, hipper demographic. That’s where “Twist Grip” comes into the picture.

Imagine an iPhone application that allows you to select any HD model, then use the iPhone itself as a virtual “twist grip” to rev the engine up and down (utilizing the iPhone’s motion sensing capabilities).

HD famously tunes the exhaust and engine sounds of its products and I am certain has existing digital sound files which could be repurposed in this manner. The brand is so closely aligned to the sound of its products this would seem to have a lot of appeal to anyone who has ever wondered what the allure was all about.

The Twist Grip application would then be linked to a WAP mobile website with more details about each product so the user could view additional photos, options and features. Moreover, the iPhone application would use its internal GPS to point the user to their nearest dealer to test ride the actual bike.

I am certain an application like Twist Grip would be hugely popular if not as effective at increasing product demand for a variety of demographics. My colleagues and I at Interactive Mediums would be more than happy to help make it happen.

Funny enough, this morning on MobileMarketer.com there was a brief story (“Chipotle Mexican Grill enters the mobile commerce arena”) about the new application, which I didn’t realize supported mobile payments and also utilized the iPhone’s location sensing abilities to find the nearest restaurant from which to place an order. Another interesting attribute of the application is being able to save your order to make repeat purchases faster.

As a frequent diner at Chipotle I was excited to see them extend their service in this way, but as a Blackberry user with no plans to go iPhone, I was disappointed they don’t support other Smartphone applications right now. That’s why I say they should have “grilled me” about my Smartphone usage.

The company claims their customer demographic is a good fit with iPhone users, but I am not among them apparently. It’s especially too bad because as a loyal customer, I would appreciate occasional discounts or special promotions aligned with my eating habits, something I imagine iPhone-toting customers will soon enjoy.

Waiting in line behind large parties staring at the menu debating what to order is never enjoyable, but especially after a long day at work. So submitting my order and paying via mobile has a lot of appeal to me. I could just drive up, pick up then go eat. Hopefully Chipotle will expand the concept to other devices, in recognition that it’s the mobile experience which matters more so than a particular device. Or I need to get an iPhone.

Let’s do the math: According to Apple, it employs about 40 full-time, trained application reviewers–the App Store receives about 8,500 new app submissions and updates each week, which translates to 212 apps per reviewer per week. Except Apple reports that all apps are subject to approval by two different reviewers, so that number doubles to 424 apps per staffer each week–assuming reviewers work the standard eight-hour day, that means each app is approved or rejected in the span of about six minutes. No wonder Apple admits to making “occasional mistakes” in the approval process, according to its statement to the FCC.

Given the shear volume of applications that Apple reviews on a daily basis, it’s no surprise that developers encounter such varying experiences with the submission and approval process. In our experience, the process has been very straightforward and time expedient. One application was submitted to the App Store and live within seven days. In our opinion, the process works pretty smoothly as long as you follow Apple’s Human Interface Guidelines and code around common issues that apps are rejected for.

Other interesting tidbits:

• In the past year, Apple has reviewed more than 200,000 applications and updates
• 95 percent of all apps are approved within 14 days of submission
• Roughly 20 percent of apps are not approved as originally submitted

“Quick-service restaurant Pizza Hut used mobile to generate buzz about its new Hershey’s Dunkers offering and built a mobile database of consumers to remarket to.”

 and

“The results were outstanding, and more than enabled the client to build a vast mobile database which they could use for future marketing.”

The pizza chain’s creative application of a text message sweepstakes was driven by another strategic imperative around using mobile — cutting through the clutter of competitors and other messages:

“Pizza Hut was faced with the challenge of trying to find a way to make its new product launch stand-out from all of the other offerings being launched by competitors in the same market.”

Not only is Pizza Hut building a foundation on top of which it can craft new mobile programs, it is also considering the entire mobile experience as part of its plans.  The above quotes refer to their recent text messaging promotion for Hershey’s Dunkers, yet Pizza Hut has been viewing the mobile channel more holistically for some time.

The article points to Pizza Hut’s recent launch of an iPhone-based order placing application, and a Chinese-only market promotion whereby customers snapped photos of ad materials with mobile devices that could be redeemed for discounts and other prizes.

Driven by the launch of a new product amid an environment of competing messages, Pizza Hut is applying mobile marketing best practices by taking a data-centric approach emphasizing an iterative, ongoing dialogue with its customers considering the entire mobile experience.  Other marketers should take note.

If you’re looking for an innovative iPhone app, we’re here to help. Send an email to hello@interactivemediums.com and we’ll follow up with you.