Mobile marketing a new era in digital promotion v2013

Mobile Marketing
A new era in digital promotion

Customer & Market Strategy practice - Deloitte

Véronique Filip
Director
Advisory and Consulting:
Customer & Market Strategy

Deloitte Tax & Consulting
560, rue de Neudorf
L-2220 Luxembourg
Tel: +352 45145 2440
vfilip@deloitte.lu

Member of
Deloitte Touche Tohmatsu Limited

Background
• 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

2

Mobile Marketing | A new era in digital promotion

© 2013 Deloitte Tax & Consulting S.à.R.L

Agenda

1
2

4 key steps for a successful mobile strategy

3

3

Mobile marketing: its adoption amongst European marketers

Mobile marketing best practices and future



What is mobile marketing?
“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”*
• Current activity classification is:
– SMS/MMS
– Applications
– Codes
– Display on web
– Search
– Social
– E-mail

Insertion

• Which can use different forms/techniques:
– Insertion
– Branded application, In-App
– In-Game
– In-Maps
– Mobile coupon
– Rich media
– Location based
– Augmented reality

In-Map

Rich Media

Couponing

Insertion

• Could be combined together and combined with offline marketing forms
* Source: Mobile Marketing Association definition – nov 2009
4



With some very trendy techniques
Augmented reality

Branded applications

5



Or some very sophisticated examples
Tesco South Korea Virtual Store

6



Less than half of European marketers are already using mobile
“Does your company use mobile marketing?”

Italy

67%

Germany

50%

22% 11%

25%

25%

Spain

30%

28%

43%

France

30%

28%

42%

UK

28%

European average

Currently using

35%
40%

37%

28%

Plan to use in the next 12 months

31%

• 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

No plans to use

Base: 264 European interactive marketers

Source: Forrester, 2011, European interactive marketing online executive panel survey
7



But mobile marketing remains a largely experimental channel
“What will be your company’s total mobile marketing budget in 2011?”

Spain

70%

France

48%

Italy

41%

Germany

UK

36%

22%

8% 4%

European
average

39%

17%

14%

14%

12%

17%

12% 4%

20%

9% 4%

16%

17%

14%

15% 5% 5%

19%

12%

10%

17%

40%

13%

• Many marketers are using
mobile, but few are putting
significant money into it

6%

€0-€174K

€175-€349K
More than €3.50M

• 1/3 of marketers say
they’re merely testing the
channel

20%

€350K-€799K

€800K-€3.49M

• 1/3 will spend < €175K
Majority’ll spend < € 350K

Don't know

Source: Forrester, 2011, European interactive marketing online executive panel survey
8



Marketer’s tactics don’t always align with user’s behaviour
“How are you implementing mobile marketing?”

“Which of the following activities you do?”

SMS and MMS marketing

Send or receive SMS/text messages
76%
71%
67%
71%

44%
38%
36%

84%

Branded mobile applications
32%

Receive SMS alerts
45%

14%
21%

32%

50%

Mobile-optimized site

20%
41%

31%

24%

Access the mobile Internet

26%

13%
11%
17%
20%

Mobile search
37%
26%

34%

24%

Download applications
5%
4%
6%
8%

Mobile display
20%
19%

18%

14%

Italy

Germany

Base: 5.237 European adults
UK

Spain

France

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
9

Mobile Marketing | A new era in digital promotion Source: Forrester, 2011, Benchmark survey


Most marketers ignore the mobile internet



76%
71%
67%
71%

44%
38%
36%

84%

32%

Receive SMS alerts
45%

14%
21%

32%

50%


20%
41%

31%

24%


26%

13%
11%
17%
20%

Mobile search
37%
26%

34%

24%

5%
4%
6%
8%

Mobile display
20%
19%

18%

14%

Italy

Germany

UK

Spain

France

• 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
10



Message-based marketing remains king



76%
71%
67%
71%

44%
38%
36%

84%

32%

Receive SMS alerts
45%

14%
21%

32%

50%


20%
41%

31%

24%


26%

13%
11%
17%
20%

Mobile search
37%
26%

34%

24%

5%
4%
6%
8%

Mobile display
20%
19%
18%

14%

Italy

Germany

UK

Spain

France

• 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
11



Agenda

1
2


3

12

Mobile marketing: its adoption amongst European marketers




1

Audience: Understand mobile behavior of your target audience
The 2011 Mobile Technographics ladder (Base: 25.533 EU-7 adults)
SuperConnecteds

Access mobile Internet at least weekly and make regular use of multiple
advanced applications and services. The most sophisticated user

12%

Entertainers

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

19%

Connectors

Primary usage of mobile phone is for work
Use app or advanced services that improve productivity or efficiency

7%

Communicators

Primary usage of mobile phone is to connect with other
Unlike talkers they use messaging application: SMS, MMS, IM or email

36%

Talkers
30%

Inactives

Use mobile phones primarily to talk
Mobile behavior is almost exclusively limited to voice calls
Do not own or use a mobile phone

10%

Companies have to understand in which of those categories fall their own customers before planning
any mobile marketing activities
Source: Forrester, January 2011
13



2

Goal: Set your objective
• Mobile strategy must be aligned with business objectives
• For setting objectives, a 3-step approach is commonly used :
A Start with the overall
business strategy

B Identify overall
business objectives

C Choose relevant mobile
objectives, such as:

Increase number
of customers

• Drive new customer acquisition
• Increase customer retention & loyalty
• Increase audience size or page views
• Improve lead qualifications

Increase revenue
per customer

• Drive sales with offers
• Improve branding & customer service
• Increase shopping frequency
• Cross-sell/upsell at point of sale

Reduce design costs

• Reduce development time w.quicker testing cycles

Reduce distribution costs

• Minimize personnel costs as well as machine
capital and maintenance costs associated with
paper products such as tickets

Reduce marketing costs

• Optimize advertising spend with more effective or
targeted marketing

Reduce product costs

• Reduce both working capital requirements and lost
sales through accurate physical inventory counts

Reduce sales costs

• Reduce need for physical displays by offering
product information on cell phones

Reduce customer service
costs

• Reduce time spent by staff on the phone by
utilizing SMS for information snippets such as
«your prescription is ready»

Increase revenues

Reduce costs

14



Define the kind of relationship to achieve with your customer
Relation
Acquaintance
ship

Friendship

Camaraderie

Confidence

15


Objectives
Increase brand
awareness

Acquire new
customers
or direct leads

Develop repeat
business with
customer

Develop brand
loyalty

Examples
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

3

Define the strategy by answering 4 principal questions

Customer reached?
• How many and which customers?
• How quickly?
• Do I need to train?

Commitment?
• For how much time?
• Current investments?
• Future investments?

16


Offer?
• What info, service or product?
• Location/timely delivery?
• Integration w. channels, process?

Value chain?
• Direct distribution/telco/manufacturer
• Free, ad-sponsored or paid?
• Subscription or one-time?


While planning their marketing strategy, managers should
remember that…
Acquaintenceship
demands the
.....
largest scale

Friendship
.....
emphasizes
careful messaging

Camaraderie
requires deeper
.....
knowledge of your
audience

Confidence
.....
involves the most
stakeholders

17


• 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


4

Technology: Choose technology that enhances the consumer
relationship you want
Some technologies suit certain objectives better than others

Display

Search

Email

Social

SMS/
MMS

Bar codes

Branded
apps

Acquaintanceship
Friendship
Camaderie
Confidence

Acquaintanceship
programs

Friendship
programs

Camaraderie
programs

Confidence
programs

Choose technologies
with the greatest reach

Choose technologies
with precise targeting
capabilities

Choose technologies that
delivers personalized
content and offers

Choose deeply engaging,
long-term technologies

SMS can be effectively
paired with offline
messaging to create an
acquaintanceship program

Mobile search and display
offers many options for
targeting the right user at
the right time
Paired with click to call

Mobile-optimized email
helps marketers keep in
touch with smartphone
users
SMS opt-in programs allows
the greatest number of
consumers to receive offers

The best choice for a
confidence program is a
branded mobile application
with a high degree of utility

18



Agenda

1
2


3

19

Mobile marketing: it’s adoption amongst European marketers




Leverage your Consumer Convenience Quotient “CCQ” offering
Immediacy

Simplicity

Context

• Consider what the user
need right now, include
clear call to action that
address customers
needs at the moment

• Consider screen size
• Limit content and
simplify design
• Review regularly

• Leverage relevancy
of your message by
using all information
about the consumer

eBay uses bar code
scan with the phone’s
camera to identify
product quickly

The weather channel
uses location to send
relevant weather
information and ads

Expiring offer increase
the value of having the
information now
20



Technology innovations will drive context capability forward
• Mobile context is “the sum total
of what your customer has told
you and is experiencing at his
moment of mobile engagement”

Technology evolution

2011

2012

2013

2014

2015

NFC
(Near Field Communications)
Extensible sensors

• Situation - Preference - Attitude
Motion control
Augmented reality
HD audio/video

• Today’s fancy features will
become commonplace

Conversational voice

• New sensors will reveal more
about the user’s environment

Pressure sensors

• Motion, voice and touch inputs
will refine the user interface

Heat/light sensors

• Business and technology planning:
embracing existing contextual
information while planning for
anticipated technology

Chemical sensors
Biometrics
(e.g. fingerprints, iris)
Pay attention

Determine market applicability

Source: Deloitte analysis and Forrester – survey conducted with worldwide device manufacturers
21



The evolution of context use will have 4 phases which
represent the future of mobile marketing
Contextual experiences will evolve in 4 stages

Future possibilities:

High

• Biometrics
• Conversational voice
• Gesture-based control

Phase 4 : embracing
motion as a control
mechanism
•
•
•
•
•

Phase 3 :
breaking from
PC contexts

• Sensor can detect smells, analyze breath
and assist navigation in building:
– Recommendations on perfumes
– Targeting in multistory malls
– Virtual product trial for clothing
• Variable price if your customer is in your
store/hotel or in your competitor’s one
• Different price 2 weeks away from
booking

• Consumer’s purchase intent
• In my store? In a competitor’s store?
• Within 1 hour of flight? Two days?

Phase 2 :
layering in
intelligence

Phase 1 :
master the
basic

How wide is the room?
What floor in building? What aisle?
Direction consumer facing?
Light? Dark?
What does this dress look like on me?

• 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

• Basic use of context such as location is
important for search while time can
trigger an action: “only too shirts
remaining at this price”

• Past user behavior
• GPS
• Time of day

Low
2011

2012

2013

2014

2015

Level of sophistication
22



To conclude: what could you expect from mobile marketing ?
High

• Increase usage of
mobile offering
• Entirely new
digital revenuegenerating
services

Revenue from
new services

Incremental
revenue

• Deep engagement
with products under
consideration in a
personal
environment

• Higher profitability • Improved
due to in-store
navigation
higher purchase
precision
• Better targeting • Higher price w.
elasticity
• Increase
• Higher customer
sales/service
satisfaction/loyalty
from brick &
mortar locations
• Better client
experience
Time/
usage

Revenue Low
Basic context

23


Layered intelligence

Break from PC context

Motion based control


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Mobile marketing a new era in digital promotion v2013

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