Mobile
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1.
What‟s fueling mobile right now
– Key trends to understand that will make a big difference in your mobile
plan
2. Merkle Mobile IQ Index
– Index of more than 20 leading brands
– What makes them successful
– Examples
3. What marketers should be doing this year
– The Four Pillars
– Audience and personas
– Heat map of mobile marketing tactics based on the audience
– Connected CRM
4. Case studies with results
5. Tips
2
Agenda
3
What’s Fueling Mobile
Right Now
Key Trends to Understand, Ways to Engage the
Consumer
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Consumers are mobile
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In 2011, one in three
Americans used a mobile
device to access the
Internet every month
(eMarketer)
32%
In the USA, 9 of 10 US
citizens own a mobile
device and 66% are regular
users of SMS
(eMarketer)
91%
About 16.2 billion mobile
apps will be downloaded
in 2013 compared to 3.5 billion in 2009 (FutureSource)
4.6x
In 2011 PayPal increased mobile transactions to $4 billion compared to $750 MM in 2010 (Smartbrief)5.4x
Source: Radio penetration data per Broadcasting & Cable Yearbook 1996, Internet penetration data per World Bank / ITU, Morgan Stanley Research
Mobile internet adoption
Mobile internet adoption – faster than radio, tv, and the internet!
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Source: Katy Huberty, Ehud Geiblum, Morgan Stanley Research More mobile devices are shipped than PC’s.
The mobile tipping point happened last
year
“iPods changed the media industry, iPhones ramped even faster, iPad growth leaves siblings in the dust.” Mary Meeker
Source: Mary Meeker, Kleiner Perkins, Internet Trends
iPod, iPhone, iPad consumer demand
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Android is the smartphone operating system for the masses.
Source: Mary Meeker, Kleiner Perkins, Internet Trends
Android ramping faster than Apple
52% of mobile internet traffic is from iOS, while Android trails at 16%...
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Operating System – Market Share
"Apple consumers are Digital Omnivores”
Are iPhone and iPad consumers more
valuable?
Source: Netmarkettrends
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Source: Kleiner Perkins,Top 10 Internet Trends, Mary Meeker
Over $11 billion in transactions processed from these 5 brands in 2011.
Mobile commerce lift off!
Mobile search growth
Google represents 93% of all mobile search.
Mobile phones and tablets account for 8.2% of total browsing. Many brands find that mobile represents a 10 – 25% share of internet traffic.
Source: Google
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Mobile is becoming a central part of the shopping funnel. Brands without a well-developed digital strategy are not only missing a tremendous opportunity with these customers but also risk becoming obsolete.
47% 37% 35% 34% 34% 32% 31% 29% 26% 24% 24% 21% 19% 13% 56% 42% 42% 37% 36%
Home Outdoor Work Traveling In Store
Source: Custom Mobile Retail Advisor Survey Response 2011
Types of Products Purchased
Location
Consumer shopping behavior
Text messaging, downloaded apps, and browsing lead the way for consumer usage. 71% 42% 42% 31% 29% 21%
Sent a Text Used Downloaded Apps
Used a Browser Accessed Social Networking or a
Blog
Played Games Listend to Music
Consumer engagement – marketing
tactics
Source: Netmarket Share, 8/11
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Merkle’s Mobile Index &
Leading Brands
Mobile IQ Index and Good Examples
Merkle Mobile IQ
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Having a high mobile IQ is mandatory for the marketer’s success. It’s not something you are inherently born with; it needs to be cultivated over time based upon
experience, best practices and a sustained focus.
The Merkle Mobile IQ helps build a strong, permission-based marketing foundation helping to enable a meaningful and profitable relationship with consumer.
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Approach & common themes
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• Benchmark & Tracking: Mobile IQ Index assesses mobile programs and serves as a way to track brand programs over time
• Scoring Methodology: Scoring is based on the criteria associated with each of the 4 pillars - Strategy, Media Integration, Mobile Marketing Tactics, and Connected CRM
• Three Categories Emerge: The Index scores more than 20 brands ranging from emerging to
intermediate and advanced
• Vertical Lens: Certain verticals such as Retail, CPG, Travel, and Entertainment generally demonstrate the adoption of mobile marketing ahead of others such as FISERV, Non-Profit, etc.
• Customer-centric Approach: Few brands are executing well across the 4 pillars, however, those that do maintain a customer centric marketing approach - moving away from mass marketing to a one-to-one approach
• Evidence that the 4 Pillars are Supported by a Solid Foundation: Advanced and most Intermediate level brands have established a solid foundation of mobile marketing tactics mapped to the target
audience
• Connected CRM: Brands that have connected mobile data to the customer marketing database are able to segment and target audiences, leading to personalization
Approach
Merkle’s Mobile IQ Index of Leading Brands
Source: Merkle Mobile IQ. Brand scores based upon consumer facing mobile programs in the United States. 17 Intermediate Advanced Emerging 4 6 6 19 20 28 31 32 47 47 51 51 55 56 58 59 70 83 84 85 88 90 91 103 108 109 112 118 122 126 128 130 0 20 40 60 80 100 120 140
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One of the top brands within mobile today, Best Buy takes a 360 approach to integrating mobile into all media. This includes tactics such as mobile commerce, apps, mobile internet, SMS, preference center, QR codes, LBS, RFID, NFC, AR, etc...
Best Buy
Also one of the leading brands in mobile, Starbucks has a mobile strategy the focuses customer preference and convenience. The mobile loyalty program is an extension of the CRM strategy – works with the loyalty card and is tied into commerce.
Starbucks
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Delta now offers completely mobile travel, anytime, anywhere with the recent release of apps for all device types, mobile internet site, and SMS that sends the boarding pass attached to a QR code.
Delta
Target is by far a leader, understanding that offline and online shopping has blended together. Digital, especially mobile, has been included in all customer touch points. There is a complete understanding of the target audience with continually improved mobile marketing tactics.
Target
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The mobile preference center on the site allows consumers to pick how they want to
engage with Target. From SMS alerts (based on time zone), to apps for all devices types, mobile internet site, and QR codes to enhance the shopping experience Target provides a full suite of ways consumers can connect.
Target
Over the last several years, Home Depot has been a brand to watch within the mobile space. They have established a killer QR code program for in store/out of store shopping and reviews that ties to the how-to program. Home Depot provides content that focuses on consumer
needs to have a better shopping experience.
Home Depot
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One of the most well rounded and consistent retailers within the mobile space that integrates mobile into key media channels. JCPenney has built a solid foundation of apps, SMS and mobile internet, however, continues to test and innovate to see what works best for their audience.
JCPenney
Regardless of media, the consumer always has an opportunity to join the mobile club.
JCPenney is the only brand that sends out loyalty club reminders, helping to maintain a robust mobile marketing database.
JCPenney
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How to Develop and Advance a
Successful Mobile Program
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Four pillars of mobile marketing and planning
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Successful mobile programs tie directly to marketing objectives.
Review of consumer profiles, marketing strategy, and business goals to develop the overarching mobile strategy, value proposition, & roadmap.
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Mobile MarketingStrategy
Implement proven mobile marketing tactics that deliver results.
Review of the consumer profile and segmentation data determines the primary mobile tactics to reach and engage the largest consumer
share.
2
Mobile MarketingTactics
Connected CRM.
Can be a phased approach until mobile reaches scale. All data capture stored in the mobile database, can be connected via disposition files or two way, real-time feed integration. This provides the ability to segment and target consumers.
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Connected CRM3
Media IntegrationIntegrate with key media and channels.
Review of the media / promotional calendar to determine the optimal channels to integrate the “mobile call to action”.
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Define and segment your audience
• We generally see
three mobile
personas.
28Touch Screeners
Green Thumbs
Straight Talkers
• Think about “skating
toward the puck” –
we’ll see penetration
of smart phones and
adoption of tactics
increase rapidly.
‣
Influenced by trends, i.e., what‟s hot‣
Heaviest smart phone penetration‣
Nearly half say making a lot of money is important‣
96% more likely to download mobile applications‣
105% more likely to receive coupons‣
101% more likely to check financial accounts‣
103% more likely to scan QR codes‣
90% more likely to watch video on their mobile device at least once a day‣
45% research products for purchase on their mobile device at least monthly‣
An average of 25% purchase products using mobile devices at least monthly. Likely to be low-involvement purchases, e.g., music, books, etc.Group 1: Touch Screeners
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‣
Moms tend to shift their online habits to mobile habits, due to time constraints and flexibility‣
Spends majority of spare time with family. 90% say that family is most important in their life‣
62% access the mobile internet on a monthly basis‣
45% More likely to receive coupons‣
31% More likely to enter a contest/sweepstakes via SMS‣
27% More likely to send/receive personal email from theirphones several times per day
‣
Love mobile gaming‣
30% research products for purchase on their mobile device at least monthly‣
An average of 17% purchase products using mobile devices at least monthly. Likely to be low-involvement purchases, e.g., music, books, etc.Group 2: Green Thumbs
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‣
Remarkably average group, with few motivations. Distinctly different than Green Thumbs‣
Spends majority of spare time with family. 88% say that family is most important in their life‣
This group will advance the most over the next 12 months due to phone upgrades‣
14% More likely to access mobile web on a monthly basis‣
11% More likely to receive coupons‣
13% More likely to enter a contest/sweepstakes via SMS‣
21% More likely to send/receive text several times per day‣
More mobile phones and connected devices in the householdnow. 240% more likely to 5 or more in household
‣
24% research products for purchase on their mobile device at least monthly‣
An average of 14% purchase products using mobile devices at least monthly. Likely to be low-involvement35 - 54, Gen X and Boomers w/Teenage Kids
Group 3: Straight Talkers
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SMS Voice Mobile
Web Social
Mobile Email
Mobile
Search Apps Games
Display Advtg. Scannable Codes MMS Touch Screeners (Age 18-31, no kids)
Green Thumbs (Age 25-44 w/small kids)
Straight Talkers (Age 35-54 w/teenage kids)
Mass market tactics Niche market tactics
Heat Map: Legend
High Medium Low
Align marketing tactics for maximum effectiveness and ROI.
Mobile tactics heat map based on personas
New customer ops-in to mobile program & receives a welcome message with a unique redemption code
Start to determine customer value - High, Med, Low based on redemption results & “control groups” Survey all members with an offer – SMS or mobile landing page Urgency reminder message to non responders “control group” Thank you message with offer 1. High 2. Medium 3. Low Day 1 Day 5 1. Redeemed codes: Send new offer with unique code 2. Non-redeemed codes: Send reminder message “about to expire” Day 12
Mobile survey to establish preference - drive to Rewards preference center
Day 20
Establish new tactics and offers based on preference & behaviors of rewards and non rewards members
Day 13 Day 25 Day 30 NEXT PHASE
Example of a Text Messaging Touch Stream
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Customer Contact Stream
Customer Database
1
New customer record created or existing customer record is appended with mobilenumber
2
Match redemption code to customer record and build customer profile
Change message content and cadence based on redemption activity
3
Further define target segments by establishing high value groups for both Rewards and non-rewards members
Message based on group and preference
4
While running overall opt-in group message program begin executing new mobile marketing tactics and offers resulting in additional data attributes and data capture. Determine response and engagement rates.@MerkleCRM #digex2012 Join the Conversation
• Non-integrated data • Data often sits in many
databases - with the mobile providers
• No standard approach for data capture or
measurement
• Data can be “thrown away” or “forgotten” when
campaign expires
Mobile Data Capture
Connecting mobile data to the CRM
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• Integrate data through disposition files or feeds
• Aggregates data from multiple mobile
sources into one database
• Enables multi-channel reporting
• Mobile segmentation may start here
Mobile Database
Mobile Database
• Integrated through one data feed.
• Forwards multi-channel mobile data to Customer Database
• Results in multi-channel segmentation and analytics • Example: Coordinated
direct marketing among Email, Mobile, Web channels
Customer Database
• Reverse Append Opportunities • Wireless Carrier Subscriber Data
• WWW / Mobile Internet Usage Behavior
• Demographic and Profiling Data
• Location Driven Marketing • Push Marketing Notifications
• Optimize Offline Media Spend • Improve Acquisition Funnel
• Permission Based Targeting - Likes and Dislikes
• Mobile Phone Number
• Phone Type & Carrier
• Location • Usage Behavior
• Interactive Advertising • Direct Mail Open Rate
• Segmentation
Text Messaging
• Organic growth of mobile alert groups lists through opt-in
Mobile Internet Site
• Enables mobile optimized search and brand presentation
Downloadable App
• “Table stakes” for the smartphone audience
QR Codes
• Gives legs to traditional media such as print, direct mail, etc.
Preference Center
• Enables the consumer to share preferences and enables early stage targeting
Important Mobile
Data Capture
Key Tactics
Overlay Mobile Data to
Develop Customer Profile
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Building the customer profile
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36
The K&G Mobile Rewards program increases visits and revenue.
• Matt Stringer, VP Marketing needed a mobile marketing program to drive customers to the store
• Through strategy and planning, Merkle determined that text messaging would be the best way to reach and engage consumers
• We launched the K&G Mobile
Rewards program Current Instant Win Program
Text SAVE to 79999 In Store “How to Flyer”
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Mobile Program Results from 2011
Start Date:
February 2011
Stores:
107
Mobile List Growth
Weekly:
4,000+
Total Members:
180,000+
Mobile Coupon
Redemption Rate:
94%
Mobile Opt-in,
Annual Value:
$108.19
Year 1 Gross
Revenue:
$18,536,000
38Mobile is now a key pillar in
the marketing plan
•
Mobile is the only way to
reach over 100,000 K&G
Rewards customers
•
40% of Rewards customers
joined the mobile program
•
Mobile Rewards customers
are worth at least $30.00
more per year in
incremental revenue
•
Overall, 66% are existing
customers, 33% are net
new customers
Text Message Opt in Experience and Trackable Redemption Code
Offers and Response Rates
$5.00 off 94%
20% off purchase 45%
30% off regular price 20%
$20 off purchases of $100 1%
15% off purchases of $150 or more 0.01%
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1
K&G Mobile Rewards Program Call to ActionConsumer Redeems at the Point of Sale
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The LB MSG ME mobile program is a key pillar of the marketing strategy, driving significant revenue at the store.
• A key pillar of the media mix and integrated with all offline and online marketing pillars
• Over 360,000 active mobile opt-ins with a less than 3% opt out rate
• 2011 revenue goal beat by 49% for over $49.5M in mobile revenue
• Mobile drives “instant foot traffic at the stores”
Solution:
• Mobile Marketing Strategy, Personas, Media Integration Planning, Mobile CRM • Managed Service Campaign Execution,
Management and Reporting
• SMS, Mobile Internet, Mobile Preference Center, Scannable Codes, Sweepstakes • Store level segmentation and tracking
Mobile Program Results from May „11
Start /End Date: May 9, 2011/May 24, 2011
Stores: 650
Daily SMS List
Growth: More than 5,813 new opt-ins each Day
Total Members: 100,000+
Mobile Coupons
Sales: $7.2 million
Facebook app tab – mobile alert signup
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Tips for marketers
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1
Make sure the four pillars are in place:
Successful mobile
marketing strategies include strategy, media integration
2
Integrate mobile with offline & online:
I
t works well when
integrated with other channels.
3
Begin with a connected CRM approach:
Connected CRM
results in segmentation, targeting and deeper engagement.
4
Invest in the right mobile marketing tactics:
Implement tactics
based on your target audience for maximum effectiveness
5
Work with a scalable partner:
A good partner will help you
sensibly evolve mobile, while observing consumer privacy policies
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Roundtable Questions
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