Developing a Mobile Strategy

Beyond Marketing: Developing a Mobile Strategy

Jeremiah OwyangIndustry Analyst and Partner

For Mobile Marketing Strategies SummitApril 28, 2011

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© 2011 Altimeter Group© 2011 Altimeter Group

Mobile Matters: The Business Case

© 2011 Altimeter Group

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In 1983, the first commercial wireless call

was placed with a Motorola DynaTac. The phone

cost $3,995, weighed over 2.5 pounds, and was 10

inches tall (without the antenna).


Mobile has come a long way…


…As has computing


Mobile growth is explosive6


This year, more smartphones and tablets will be sold than PCs

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Image by zetson used with Attribution as directed by Creative Commons http://www.flickr.com/photos/zetson/254608875


Beyond Mobile Marketing: Developing a Mobile Strategy


Understand the medium and the context9

GPS

Touch

Sensors (A/V)

Contacts

Features

Location-Aware

Intimate and Interactive

PhysicalIntelligence

Personal and Social

What it means:

PortabilityRelevant at Point of Consideration


The traditional purchase funnel is outdated10


The Customer Hourglass looks at the entire experience11


Airport retailers advertise in GateGuru13

Airport retailers purchase location-aware advertising

on GateGuru to drive users into stores.

GateGuru is an airport resource for travelers.


Increase foot traffic with location-based Facebook Check-in Deals

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North Face utility app Snow Report (and Trailhead) reach its target demographics

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Snow Report users view weather and snow

updates, as well as tweets from and about their

favorite resorts.


Nestle Purina builds pet-friendly utility app 16

Purina created a location-aware database of pet-

friendly places in the US to increase brand

awareness and affinity.


Location data provides context

When earned advocacy (the last phase) is done well, it fuels awareness

Expect paid media to fuel this first phase

Key Take-Aways17


PlaceCast sends opt-in ShopAlerts based on virtually bounded target areas

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After opting-in to ShopAlerts, consumers receive discount alerts based on “geo-fenced,” or virtual boundaries.


Browse engagement rings and save favorites in Tiffany’s app

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With Tiffany’s app, users can browse rings, learn

about settings, save favorites, and determine

a ring size.


Find the right bulb with GE’s Moodometer21


Use QR codes to help prospects with their purchasing decisions

http://www.slideshare.net/PSFK/psfk-presents-future-of-mobile-tagging-report

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Learn more about Meyer’s natural beef processes.

Get a tour of Windermere real estate properties.


Mobile professionals find office space worldwide with Regus augmented reality app

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Users can locate and schedule a viewing at

any Regus global network office center.

The app features search filters, maps,

turn-by-turn directions, and augmented reality

overlays of location and distances on real-time

views.


Repurpose your product inventory information and apply onto the real world

Allow consumers to opt-in to receiving information on deals readily

Yet don’t over-invest in “Machine Language” like QR codes as new technology will provide instant context using mobile and social data

Key Take-Aways24


Target shoppers create wedding and baby shower registry lists – and share

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For holidays, kids drag toys into Toys R’ Us Christmas wish list iPad app

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Parents can view and edit their childrens’ wish list and share it with family and friends through email, Facebook, SMS and the Toys “R”

Us Wish List.


View and add weekly sales items to ShopRite shopping list – and sync between mobile and website

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• Reduce friction and allow purchasing to happen from simple clicks

• While still emerging, social commerce will fuel increase in sales for mobile commerce by populating shopping lists based on social and location data

• Expect next-generation applications to pre-populate these lists based on historical and social data

Key Take-Aways29


Over 3M have paid with Starbuck’s mobile app31

The mobile card program was tested in 2009, and found to be

the fastest way for customers to pay. It’s

available at 6800 stores. Customers purchase credit via

PayPal or credit card.


Refill prescriptions with Walgreens’ scan app32

In addition, over 1 million customers have subscribed to

Walgreens’ prescription text alerts.


Check in store inventory with Crate & Barrel’s mobile website

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Customers can browse and read reviews from their

mobile phones, and then check in-store

availability.


4% of total sales come from Gilt Groupe’s interactive iPad app

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177,000 shoppers have downloaded the

app and as of January 2011 about 100,000 actively use it on a monthly basis,

according to Gilt Groupe.


• Remember, point of purchase is no longer limited to a physical location

• Nor is it limited to the time of purchase –pre paying exists now, and expect a form of post-paying to someday emerge

• Expect gamification and cashing in of social capital to streamline sales

Key Take-Aways35


USAA customers scan and deposit checks37

In 2009, USAA was the first bank to launch a

mobile banking app with check deposit by scan

functionality. Chase followed in 2010.


Delta flyers board with e-boarding passes38

The app allows flyers to check-in, use e-boarding passes, receive text alerts, rebook and cancel

flights, and share flight details with

family/friends.


Request roadside assistance via AAA app39


LeWeb attendees connect with colleagues other via LinkedIn integration

LeWeb 2010 attendee profiles are updated with LinkedIn information, after logging on with their LinkedIn accounts. This feature is provided

through Presdo Match.


• Reduce support costs by giving information to consumers on hand

• Use a tiered approach:

• Load up most frequented asked questions first

• Then follow up by providing the ability for them to conduct peer to peer support

• Finally provide them with direct-to-company support when these avenues have quickly been exhausted

Key Take-Aways41


Starbucks partners with Foursquare to offer barista badges and drink discounts to Mayors

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Kraft’s top selling iFood app keeps cooks coming back with recipes, coupons, and sharing features

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A top paid selling app, users come back for new

recipes and Kraft coupons. In addition,

Kraft gathers user data to understand customer

behaviors and preferences.


• Loyalty programs of the past are based on long term commitment and total potential spending value

• In the future, factor in social influence, as well as ability to share with others into your loyalty programs by recognizing then to their peers

• The natural outgrowth of loyalty programs involves social gaming, where increased spend and social capital are factored in

Key Take-Aways45


Tasti D-Lite rewards brand advocates with points that translate into free products

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Tasti D-Lite customers earn TastiRewards

every time they make a purchase using a

rewards card that can automatically trigger

updates to Facebook, Twitter, or Foursquare

accounts.


• The holy grail of marketing, this is the lowest cost –yet highest trusted form of marketing

• When done correctly, this fuels the top of the marketing funnel, growing the program over and over

Key Take-Aways48


Summary


First, understand how your customer uses mobile technologies in their customer hourglass.

Think bigger than the marketing department –your customers desire a full experience. Seek input from marketing, sales, support, and loyalty programs

Use data types in combination for deadly advantage: social profiles, with location data with historical preference

Summary51


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Jeremiah [email protected]

m

web-strategist.com/blog

Twitter: jowyang

THANK YOU

With assistance from Researchers Christine Tran and Andrew Jones


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Altimeter Group is a research-based advisory firm that

helps companies and industries leverage disruption to

their advantage.

Visit us at http://www.altimetergroup.com or contact

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Developing a Mobile Strategy

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