Presented by the Heartland Mobile Council
Location, Context and Behavior: How Location-Based Mobile Marketing Increases Relevance for
Consumers, Effectiveness for Marketers
Alistair Goodman, CEO, Placecast, @Placecast
Event hashtag #MobiU2011
#MobiU2011, @twitterhandle @company
• Location: The New Context o How we used to use location
o How location can be used in mobile
o What are geofences? How are they used in mobile marketing?
• What we’re learning o Key insights by brand specific programs
o Key insights by carrier
o Messaging and behavior
o Emerging best practices
• What’s next… o Closing the loop in the mobile payments future
Topics for today
#MobiU2011, @twitterhandle @company
Location: Always a Key Driver of Marketing Effectiveness
• DMA, MSO, ZIP Code, Census Block Group, PRIZM Cluster…
• Location targeting has always been a way of increasing marketing effectiveness
• Reach of key demography
• Reach by key lifestyle attributes
• Relatively blunt tools for predicting most likely response
#MobiU2011, @twitterhandle @company
Location is the New Context “Mobile represents one of the most rapid cases of consumer adoption/behavior change of a medium ever seen...[Consumers now] live in an always-on world of information that is with them in the moment of truth for marketers: the point of purchase. As Matt O’Grady, EVP Media Audience Measurement at Nielsen notes: “the mobile phone may be the last in line that influences before the purchase and it’s possible to know if the consumer is actually in a store.”
What Marketers Need to Know about Mobile Metrics
August, 2011
#MobiU2011, @twitterhandle @company
Where consumers are is predictive of what they will do
• Reach consumers in the moment:
o To Remind them prior to shopping trips of time sensitive offers
o On their way to a mall to tell them about new products and promotions
o In a store as they are deciding between brands
#MobiU2011, @twitterhandle @company
$1 trillion dollars of offline retail sales per year influenced by digital marketing: Now all digital goes mobile
http://www.businessinsider.com/using-mobile-to-bridge-the-gap-between-online-and-offline-marketing-2011-9
#MobiU2011, @twitterhandle @company Harris Poll: Consumers value text messaging more than other phone activities
40%
25%
14%
12%
11%
7%
5%
39%
30%
18%
15%
14%
9%
7%
42%
20%
9%
10%
9%
5%
3%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Text message
Access the Internet
Search for a retail location
Access local information/activities via an …
Access social networks (e.g., Twitter, …
Make a purchase
Location-based social networking (e.g., …
How important, if at all, is it for you to be able to do each of the following activities on your cell phone/Smartphone?
Base: Extremely/Very important
Total
Male
Female n=1719
Source: Placecast The Alert Shopper II, Harris Poll, July 2010
• Men more likely to do early adopter activities like purchasing via mobile devices
• Relatively low interest in social/location services
#MobiU2011, @twitterhandle @company
42%
30%
21%
17%
44%
29%
16%
20%
40%
30%
26%
14%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
18-34 35-44 45-54 55+
At least Somewhat Interested Base: Cell Phone/Smartphone Owners
Total
Men
Women
Placecast The Alert Shopper II, July, 2010 Assuming you gave permission, how interested, if at all, would you be in receiving text alerts about new products, sales and/or promotions from your
n=1719
Harris Poll: Consumer Of All Ages Are Interested In Mobile Offers
#MobiU2011, @twitterhandle @company
0% 20% 40% 60% 80% 100%
Grocery coupons and promotions
National restaurant chain promotions and offers …
Entertainment products and availability (e.g., movie …
Fast food menu items and promotions
Beauty and fashion (e.g., shoes and accessories)
Coffee and beverage promotions
Electronics product offers and promotions (e.g., …
Travel services, special rates and amenities (e.g., …
Health-related offers including gym services and/or …
Convenience store products
Home furnishings
Infant and child-related products/services/events
Bar or nightclub offers and promotions
Sporting goods and equipment
Other
None
Categories of Interest – Location-based Alerts Almost equal interest in restaurants, fast food, travel, health
Male Female
Placecast The Alert Shopper II, July, 2010
Harris Poll: Consumers Want Relevant Mobile Marketing From Retailers
#MobiU2011, @twitterhandle @company
What are geofences?
Geō-fence noun : a field around any location set to trigger a personalized
marketing message to a consumer entering or exiting the defined area.
How it’s created: • Upload location addresses • Create “Place Profile”
Flexibility: • Any location, size or shape • Change based on time of day and
day of week
Geo-fencing Strategy: • Time-based, event based or contextual • Integrates with other user data
#MobiU2011, @twitterhandle @company
What We’re Learning
From pilot, specific brand programs and carrier programs, US and overseas
#MobiU2011, @twitterhandle @company
What We Know from All Programs
Location based text marketing can:
• Impact brand awareness
• Impact store visitation
• Act as a reminder to visit retailer
• Drive purchase among both prior and new purchasers
• Increase convenience and relevance in the mind of consumers
• Be preferred over other forms of promotional marketing
• Increase loyalty towards the brand running the program
• Generate word of mouth/social media connection
#MobiU2011, @twitterhandle @company
1. Texts have most immediate impact on lower consideration products with many retail outlets
More chances to purchase, triggers impulse buying
Actions most likely taken in 1 – 3 day time frame
2. But texts help to build loyalty, increase awareness of new product intros for higher consideration products
Actions take place over longer time frame
3. Texts drive multi-channel behavior – be prepared
4. Messaging and frequency strategies:
Promotions/offers drive highest response
Informational messages welcomed as long as location enhances relevance
Key Insights for Retail Brands
#MobiU2011, @twitterhandle @company
Results for Individual US Retail Brand Programs
14
Average
Likelihood to
visit retailer 0% 100% 50%
59% - 87% 75%
Retail
visitation 0% 100% 50%
59% - 90% 73%
Purchase
post receipt 0% 100% 50%
41% - 80% 65%
Appeal of SMS
due to convenience
of mobile receipt 0% 100% 50%
48% 28% - 61%
#MobiU2011, @twitterhandle @company
Key Insights for Carrier Programs
Success of the program depends on:
1. Acquisition-oriented messaging
2. How well promoted it is to the consumer base
3. How well the program delivers value to the recipients
4. How much control/input consumers are given: Preference centers
5. Geo-fencing strategy: Find your location relevance
6. Frequency management
#MobiU2011, @twitterhandle @company
Results for International Carrier
Recall
0% 100% 50%
22% - 93% 57%
Likelihood to
visit retailer 0% 100% 50%
34% - 58% 46%
Retail
visitation 0% 100% 50%
43% - 67% 53%
Purchase
post receipt 0% 100% 50%
14% - 46% 22%
Intent to
Purchase
post receipt 0% 100% 50%
16% - 29% 17%
Appeal of SMS
due to convenience
of mobile receipt 0% 100% 50%
34% 16% – 42%
International carrier aggregate results, 8/11
Average
#MobiU2011, @twitterhandle @company
International carrier has an 83% somewhat to very positive rating
26% 25%
32%
13%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Extremely positive: I really liked this
program
Very positive: This is an effective way for merchants to connect with me
Somewhat positive: I like to know about new product or get
discounts
Neutral: No opinion
Negative: Would not use in
future/had little value to me
Perception of International Carrier Program
Total: 4,288; n= 821 - 1,248
#MobiU2011, @twitterhandle @company
Messaging
Different approaches for different strategies
#MobiU2011, @twitterhandle @company
Objective/Messaging Examples
Storyboarding
• Introduction of Via Ready Brew in
the UK market
• Induce trial on premises and
purchase at grocery stores
Experiential
• Reach them at their passion points
while hiking, biking and skiing, in
addition to around stores.
• Weather triggers as well
Direct Response
• Weapon for “Burger Wars”
• Promote different menu items
throughout the day
• Redemption via discount code
Loyalty
• Drive traffic to store and website
• Increase frequency and basket size
• Offer special deals to best
customers
#MobiU2011, @twitterhandle @company
What We’re Learning: Messaging
• Consumers want location-based text messages to feel distinct and
exclusive to the program
• Offers – especially time sensitive offers– tend to trigger highest
response
• Variation can increase impact
• But a solo, strong, message that felt unique also worked well
• Location was very important in messaging
o Consumers expect relevance and found location to increase it
o The more retailers that were tagged, the higher the likelihood to respond but even retailers with solo locations saw substantial response rates
#MobiU2011, @twitterhandle @company
Strong Messaging Examples From Carrier And Individual Brand Messaging
• Urgency: • 4 hrs only: 50% off mini portable speakers & many more deals! Be sure 2 stop in Sat 4 a chance 2 win a $500
gift card @ur nearest XX store.
• XXXXX alerts: Update- $10 coupons start 2day! We’re giving u an xtra day 2 get a $10 coupon for every $50 spent. Offer valid in stores only thru 12/24
• Exclusivity & Tone: • Exclusive 2 day offer 4 mobile users! Take 15% off everything excluding furn & rugs thru 11/30. In-store only.
Show this msg @ur XX store 2day!
• Collect one of 3 limited edition Impulse and Barry M special packs featuring your favourite XXXX fragrances & an exclusive Barry M lipgloss. Worth over £6 and they’re available in stores now for just £3. Get yours from <variable>.
• Click through to coupon: • Get $5 OFF any purchase of $50 in the entire store! Shop today and save @375 E Allessandro Blvd. For
Coupon: http://bit.ly/mezAJE
• Offer codes: • Surprise your Valentine with flowers. Get 10% off all XXXX flowers until 14 Feb. Use code 0747165 online or
at the till in store. Terms and Conditions at http://mands.mobi/flr.
• Events & Time Sensitivity: • XXXXX alerts: Come by 4 cocktails, Chef Michel Bras, & his new line of kitchen tools 6-8PM on 3/1 @WS
Columbus Circle. RSVP at 855-382-0822 by 2/27
#MobiU2011, @twitterhandle @company
Finding Your Location Relevance: Location-based Messaging Strategies To Consider
• Geo-Fencing doesn’t just have to be about retail locations, consider: • Events: related to celebrity product lines or endorsements - venues as part of a
musician's tour
• Points of interest: foodie hotspots as they relate to recipes, classes, and/or cookware at a store; for outdoor apparel, parks and recreation sites, ski slopes
• Relevant places: that appeal to target demos/lifestyle (post-work beverage push geo-fenced gyms)
• Areas of activity: (skateparks, malls, music venues, etc.) related to youth-centered retailers
• Sponsored venues: or sports teams as related to brands
• Mom-places: Schools and other areas where moms might be likely to be thinking about errands, dinner recipes, quick take-out meals, etc.
• Travel destinations: and popular tourist spots related to outlet-store brands
#MobiU2011, @twitterhandle @company
Results from carrier program by product category
#MobiU2011, @twitterhandle @company
Carrier Messages Increased Likelihood To Visit By Nearly 50%
46%
56%
50%
36%
48%
33%
48%
57%
6%
12%
1%
8%
0%
10%
20%
30%
40%
50%
60%
All Retail Health & Beauty Fast Food
Likelihood to Visit By Category
Increased Neutral Decreased Total: 3,025; n= 1,247 – 1,778
#MobiU2011, @twitterhandle @company
32%
38%
24%
16% 17% 15%
5% 3%
8%
47%
42%
54%
0%
10%
20%
30%
40%
50%
60%
All Retail Fast Food
After receiving text message, did you visit? By Category
Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text message
Totalg: 4,019; n= 1,784 – 2,235
Over 50% Did Visit Post Receipt
53%
#MobiU2011, @twitterhandle @company
Nearly ¼ On Average Purchased Post Receipt: Purchase Highest For Health & Beauty Products Which Had Strong Call To Action
22%
38%
26%
14% 17%
20%
29%
23%
61%
41%
67% 64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
All Health & Beauty Retail Fast Food
Did you purchase due to receiving text message? By Category
Yes No, but I intend to No Total: 4,114; n= 964 – 2,044
#MobiU2011, @twitterhandle @company
Money-off Discounts Had Greatest Impact On Redemption; Location/Convenience Cited By Nearly 30%
5%
6%
6%
6%
7%
7%
10%
15%
14%
23%
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Other
Because it was convenient to redeem on my mobile
I saw an ad and it reminded me I needed to shop/buy
The text mentioned my local store by name / location
There is a holiday coming up that I need to shop for
I was intrigued by the information in the text message
I wanted to win one of the prizes
I was near a store
It’s a product I wanted/wanted to try
The money-off discount
Reason for Redemption By Category
All Retail Fast Food Health & Beauty Total: 1,287; n= 343 - 529
#MobiU2011, @twitterhandle @company
29%
22%
49%
60%
28%
12% 16% 19%
65%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No, but I intend to No
Have you purchased Women’s Personal Care Product yet? Base: Respondents who recall receiving message
All Respondents Regularly Purchase Do Not Regularly Purchase
All Respondents, n=722 Those who regularly purchase, n=216 Those who do not regularly purchase, n=506
Messages Had Greatest Purchase Impact On Prior Purchasers, But 35% Of Non-regular-purchasers Bought Or Intend To
#MobiU2011, @twitterhandle @company
For nearly 50%, the retail visit prompted by the text was unplanned; for 19% text served as reminder
14% 19%
49%
19%
0%
10%
20%
30%
40%
50%
60%
Yes, my visit was already planned.
Yes, my visit was already planned but the text
reminded me.
No, my visit was unplanned.
n/a – I did not visit a store/website after the
text message was received.
Was your visit to XXXX store/the XXXX website planned before you received the text message?
Base: Respondents who recall receiving text message
n= 960
#MobiU2011, @twitterhandle @company
For A Department Store, Messages Had Multi-Channel Impact: 45% Visited Website Post Receipt
24%
16%
5%
54%
0%
10%
20%
30%
40%
50%
60%
Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text
message
After receiving an XXXX message about XXXXXXX, did you visit their website?
Base: Respondents who recall receiving text message
n= 960
45%
#MobiU2011, @twitterhandle @company
You Know Marketing & Your Customers, Use Best Practices • Keep in mind best practices learned through years of DR, email and
CRM:
o Develop tone that fits the brand and the product and makes it
sound distinctive
o Be careful of message burn-out, frequency
o Make it simple to follow up on/redeem
o Create a sense of urgency: Have a direct call to action/specific time/date if this is a promotional message
o Give them something to click through to
#MobiU2011, @twitterhandle @company
The future As mobile commerce and payments become widespread…
#MobiU2011, @twitterhandle @company
The future of mobile marketing – our world view
• Mobile content will be primarily an advertiser supported medium
• Mobile advertising currently based on search and display web paradigm… but this is not necessarily the end game
• Apps are problematic: need to be dowloaded, GPS only available when app is on, and inventory is fragmented
• Not about “ads” in the traditional sense, but “offers” that are actionable in the real world
o Opt-in
o Location-based
o Personalized
o Transactible at POS or via credit cards
o Today priced per-campaign or delivery, eventually will be performance-based
#MobiU2011, @twitterhandle @company
Mobile wallet will close the loop on promotions driving real-world purchases
For marketers, this allows for optimization of mobile promotions with
back-end conversion metrics based on CPA
Daily Deal Sites
Mine CRM/Purchase
Data
Promo Email
Opt-in to White-label ShopAlerts
Phone # + Preferences
tied to account
Consumer Gets Custom Offer
Consumer buys at
Merchant
Purchase data fed back to
CRM
Credit Cards
& Mobile Wallets
Carriers w/ Billing
© 1020 Inc., Proprietary and Confidential, 2010
Within reach…
“I’m hungry…”
Search for Nearby
Locations & Review
(All available through the lens of my camera
phone)
Source: media-cdn.tripadvisor.com/.../times-square.jpg
Pay with your phone
Alerts for Nearby Offers from
Favorite Brands
Instant Deals
Check-in & Fun
Friends Nearby… Dinner?
Presented by the Heartland Mobile Council
Thank you!
Alistair Goodman, CEO, Placecast
t: 510.502.3596 e: [email protected]
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