Most retailers, and other selling services, look to drive traffic in-store, to their mobile app, or to their website. But why not engage your customers where they already are, on social networks and media platforms like Facebook and The New York Times. Mobile allows you to do this.
Facebook’s F8 announcements today put forward new tools to do just that.
This is the notion of “borrowing mobile moments” that we talk about in our new book, The Mobile Mind Shift. For brands that don’t already own their customer’s mobile moments or can’t manufacture mobile moments effectively, third parties like Facebook, with large audiences and minutes of use, can offer instantaneous engagement. It’s highly contextual and offers a great mechanic to engage with your customers – where they are and where they want to be.
Facebook has driven 350M app installs through their mobile platform. For those of you looking to generate revenue, 60% of the top grossing ads use Mobile App Ads. (Source: Facebook’s Ime Archibong)
One quick case study:
“Facetune” – tweak and tune photos before you share
#283 to #2 in under 5 days in the US with $500 in marketing budget
#1 in 78 different countries (now in 94 countries they are the #1 slot)
You want to increase the engagement in your mobile app
One solution - and the most common - is to drive engagement in your app directly through push notifications.
Rumors have been circulating about a potential Apple iWatch. Very few executives we have surveyed about wearables have a strategy or are planning a strategy for their content and services for wearable devices. I am in love with my Pebble, but anxious for something more stylish that looks and feels more like my FuelBand, but with color, multiple apps, and a display that does just a wee bit more.
A few early tips. Think:
1) Atomized content (think small, minimal)
2) Dynamic content delivery based on a combination of real time, historical and operational data. (See report)
3) Notifications - the majority of interactions with your customers (for many of you) will be glanceable alerts. (And, yeah, you are going to have to stop measuring the performance of your mobile apps based on opens and time spent.) I don't necessarily need to make a purchase on this device, but I need to know if the sale is on. I need to know if the gate for my flight has changed. I can go into the app to change my reservation. Apps will soon be too heavy and finding/opening apps will involve too much friction to receive simple bits of information.
Here is an artist's mock up of a potential Apple iWatch device as well as a photo of the Samsung Gear Fit.
Nike reportedly laid off their hardware engineers from the FuelBand team. (See CNET) Financial analysts are speculating that it is to focus on software. Besides, hardware is difficult and the margins tend to be low. We've seen it with product recalls and free replacements from competitors Jawbone and Fitbit. It is difficult to ship excellent hardware products consistently.
My point of view:
1) I have about 5 wearable devices and 4 mobile apps on my phone to track my steps, active calorie burn, route, etc. I wear bulky devices with built in heart rate monitors. I wear a Nike FuelBand and other single purpose devices. I compare the data I collect from the different devices. Last week on a day I burned more than 1,200 active calories and 1,200 inactive calories, two devices were within 2 calories of each other. One was simple - no display. One was bulkier with a full range of sensors. Nike has been more focused on active calorie burn than total burn - which as a runner - is what I want. Mobile apps can do this, too.
2) Mobile apps scale faster with almost no barriers to acquisition. The same CNET article reported that Nike has added 10 million users to its Nike+ platform since August 2013 growing from 18 million to 28 million users.
3) Nike's resources will be better spent figuring out how to ingest more data sources and improving their (software = mobile app) engagement with consumers. The engagement mechanics within the mobile app are the key to shifting consumer behavior. (See Forrester mHealth report)
We talk about the notion of the Mobile Mind Shift in our upcoming book.
We define the mobile mind shift as: the expectation that I can get what I want in my immediate context and moments of need. We'll be releasing a tool to measure how shifted your customers are. We focus a lot of our attention on mobile apps - those services that have been designed to meet consumer needs on the go. According to Flurry, about 13% of consumers reach for apps on their phones more than 60 times per day. And it's growing fast!
Flurry just released some numbers to show how often consumers reach for their phones:
Facebook today announced a new optional feature– the ability to see which friends, or friends within a created group, are nearby. The social network is smartly looking to better serve its members who have made the mobile mind shift, expecting to get what they want in their immediate context and moment of need. In this case – knowing when a friend is nearby.
Prviacy will be a concern with this feature, but users are protected by opt-in’s and by only mentioning how close someone is, not their specific location. Connecting directly in person requires a number of steps including messaging and permission. A few thoughts:
1) This isn’t original, but Facebook has a better shot at success than the original services.
About 10 years ago, Sam Altman started a company called Loopt that he sold about two years ago to Green Dot for $43.4M. It started out as friends connecting, but eventually needed to make money. Mobile advertising wasn’t a big market 10 years ago – in fact, it is still somewhat small today. But Facebook has two key advantages now: first, they have more than one billion users so they don’t have to recruit (and many of my friends will already have the app on their phone). Second, they don’t have pressure to make money near term. Facebook will win if even 5% or 10% of their members adopt.
Amazon plans to launch a smartphone this fall, according to The Wall Street Journal (reported based on undisclosed sources in the SF and Seattle area who have seen the device).
A few common questions:
1) Will they succeed?
Well, it depends on Amazon’s definition of success.
Is it about media? Amazon is still somewhat new to developing, building, distributing, and supporting hardware. If this device adds to its portfolio of PC, Kindle, and Fire TV to be yet another screen for Prime subscribers, that may be enough. The notion of subsidized hardware to support an extended media play is interesting. My colleague James McQuivey leads our research there.
Is it about commerce? mCommerce is a big deal in mobile, but not a big deal within the broader context of consumer spending. Offline commerce dwarfs eCommerce and eCommerce dwarfs mCommerce. The big opportunity in mobile is the influence of sales locally. But Amazon also plays in this space.
Is it about payments? I’d say unlikely in the near term, but I like the idea of using my Amazon account (linked to my credit card) for quick and easy online payments. However, it’s hard to imagine the same level of convenience translated into the physical world – with the greatest possibility in mCommerce. My colleague Denee Carrington is our expert here.
Augmented reality has represented the potential for the magical enhancement of our physical world through digital content. (See report) Too many of the use cases today - especially in marketing - have been gimmicks leaving a user to scratch his head and think, "I don't get it." Some have offered entertainment. Some have delivered games and rewards (e.g., Zappar). A few have offered true utility in a consumer's mobile moment - Amazon, Yelp, or the Commonwealth Bank of Australia (see case study) by simplifying the discovery and consumption of simple, 2D information.
Finally, we are beginning to see more examples of how augmented reality can offer true utility to consumers in those mobile moments when they are struggling to complete a task. In this example, Mitek uses AR to help correct or guide a consumer's use of the camera to send or input information to a bank or service. This offers one example of why companies need to continue to revisit emerging technologies. They can very quickly move from gimmicky to reality. Mobile shifts consumer expectations very quickly.
It was just a matter of time. They started with taking people from point A to point B. They gave us some glimpses of what might come by dropping off ice cream and litters of kittens. Uber became (and continues to become) incredibly efficient by matching supply and demand, all from the mobile device. How successful? A valuation of $3.4B back in August 2013.
Some may argue (and I got this question yesterday from a journalist) "they could have done this without mobile services." I disagree. Mobile has added a level of convenience and improved the customer experience dramatically. Convenience. Convenience. Convenience. Uber has embraced what we call the mobile mind shift and is expertly serving customers in their mobile moments - a concept explored in depth in our upcoming book.
Uber (and similar services) have grown the overall business for private car transportation. What are they cannibalizing? I haven't done this analysis, but for me - I drive less and spend a lot less on parking. Do I spend more on Uber than I would have on parking? Probably, but they are so enjoyable to do business with. (See our customer experience framework).
- Mobile phones (subsidized) are relatively cheap - or at least affordable as a cost of doing business for your typical driver. Dedicated hardware isn't.
- A mobile app for the drivers (and now cyclists) pinpoints exact pick-up locations PLUS shows the hotspots for demand based on time of day, location, weather, holidays, local events, and probably a hundred other factors. There is no other way to communicate easily to drivers where they should wait to pick up rides.
Amazon is testing a new device to facilitate making a grocery list and ordering groceries through their AmazonFresh service in markets such as San Francisco and Seattle. (See TechCrunch article.) Consumers can add items to the list through voice or by barcode scan. Two things (for me) make this an interesting experiment to watch.
1) Amazon looks to profit from what we call "a mobile moment," a concept introduced in our forthcoming book, The Mobile Mind Shift. Or more specifically in this case, an impulse sales moment. As a consumer, I add an item to my grocery list before I forget. I may or may not order that day - it may be tomorrow, but I will buy it. The Dash adds convenenience - it removes friction from my shopping process. The Dash takes advantage of the immediacy of mobile. (See our report on how to create mobile moments).
I had the opportunity to attend Nokia's event in San Francisco yesterday. Stephen Elop (EVP Devices & Services), Jo Harlow, Vesa Jutila and Valerie Buckingham among other executives answered questions. See the press event here. High level take away: they released a series of colorful, large & bright screened devices with INSANE camera capabilities at a wide range of price points.
Their Achilles heal is still apps - or lack thereof. They've made progress. They have 245,000 apps today (compared to Apple's 1M plus) and they are adding 500/day. They are doing well with the 100 most popular apps (think eBay, Facebook, Instagram, etc.).
Here are a few things that matter to you:
1) More and more consumers will buy these phones. Nokia phones - despite the lack of apps - will become increasingly difficult for consumers to ignore. They have large screens. They are finger-friendly with large icons. They are "glance friendly" - with live content on the homescreen page. They have INSANE photo/video capabilities that can make any of us look like professionals. They are price competitive. I had total phone envy yesterday as I sat there with my small-screened phone.
2) Your larger competitors will start to build native apps for the Windows family of phones. Many of your focus on iOS and Android today. (See research) Watch your traffic and device adoption among your customer base. It may not be time yet, but you shouldn't ignore them flat out.