A year ago, I blogged about the fact that the app economy was blurring the lines and opening up new opportunities, with a lot of new entrants in the mobile space, be it with mobile CRM and analytics, store analytics, dedicated gaming analytics, etc.
Since 2010, more than 40 companies have raised about $500 million in that space! Watch it closely – consolidation will continue, as evidenced recently by Yahoo’s acquisition of Flurry.
While a lot of innovation is happening on the supply-side, too many marketers have not defined the metrics they’ll use to measure the success of their mobile initiatives. Many lack the tools they need to deeply analyze traffic and behaviors to optimize their performance.
Fifty-seven percent of marketers we surveyed do not have defined mobile objectives. For those who do, goals are not necessarily clearly defined, prioritized, and quantified. Only 38% of marketers surveyed use a mobile analytics solution! Most marketers consider mobile as a loyalty channel: a way to improve customer engagement and increase satisfaction. Marketers must define precisely what they expect their customers to do on their mobile websites or mobile apps, and what actions they would like customers to take, before tracking progress. Too many marketers focus on traffic and app downloads rather than usage and time spent. While 30% of marketers surveyed consider increasing brand awareness as a key objective for their mobile initiatives, only 16% have defined it as a key metric to measure their success!
I had the opportunity and privilege to get an early look at the new Amazon Fire phone. It delights in many ways, but I’ll focus on the shopping experience enabled through Firefly.
For those who may not remember, Amazon put a dedicated physical button on the left hand side of the phone that launches directly into image recognition. If the image is recognized, then a web-based mCommerce experience launches. The user can then buy the product or it on a wish list, among other things. From there, the experience is more ‘traditional Amazon.’ The ‘new’ is the image, email, URL, etc. recognition.
Why is selling mobile phones important for Amazon? mCommerce in the US alone will add up to nearly $100M by the end of 2014. The new battleground for retailers is in the mobile moment – the point in time and space when a consumer pulls out her phone to get something she needs immediately and in context. Amazon’s FireFly service facilitates two core types of mobile sales moments:
Impulse Sales Moments – these are often flash sales (e.g., WTSO.com, SteepAndCheap, etc.) or spontaneous purchases (e.g., Groupon). The opportunity for Amazon here is in minimizing the friction between consumers seeing something they want, and enabling them to buy it before they forget about it, or find it later in a store nearby.
Replenishment Sales Moments – the phone (or something like an Amazon Dash) is with me when I realize a shampoo bottle or milk is empty or I need more toothpaste.
One of my first mobile moments this morning was a text from my husband on WeChat announcing that he had a Lark sleep quality rating of 9.4. We’ve become competitive sleepers. The Lark is a wearable device worn on the wrist at night to track the quality (e.g., number of times awake) and length of sleep. Activating the device requires you to set an alarm (and lets me know how few hours I have to sleep). The device wakes you by vibrating on your wrist. Disarming it in the morning includes journaling information on how you feel and what occurred that may have helped you to sleep well or disrupted your sleep.
While I love this device, in April Lark announced it will discontinue making hardware, but support existing units. It’s retained hardware staff to continue to understand how to make the most of data collected from sensors on the phones. Similarly, Nike didn’t announce it was discontinuing the FuelBand, but there were rumors it had laid off its hardware team.
Why these shifts?
These devices and apps are creating mobile moments by sharing basic data, a concept outlined in our new book, The Mobile Mind Shift. But, the excitement of reaching milestones of 5,000 or 10,000 steps a day or shifting your sleep behavior quickly fades once consumers have a sense of what it takes to reach these goals. In fact, overtime data can even demotivate individuals.
In order to change consumer behavior in the long-term, these wearables must offer effective engagement mechanisms that create relevant mobile moments that change over time with consumer needs. To succeed requires:
With the launch of Firefly, Amazon has the opportunity to create millions of what Forrester calls impulse sales moments. These are the mobile moments when I pull out my phone and make an unplanned purchase – even if it is for something that I need. Impulse sales moments are one of the leading mCommerce opportunities, which we detail in our new book, The Mobile Mind Shift. They include flash sales, sales of diminishing/remnant inventory, or sale of goods that I would have otherwise forgotten to buy. WTSO, Backcountry.com, and Gilt all use this tactic.
How often have you seen something you wanted to buy only to later forget? Sometimes it is as simple as milk at the grocery. Other times it is the latest kitchen gadget at your friend’s home.
Yesterday, Amazon announced its new Firefly service (and hard button on the Amazon Fire Phone). As a consumer, you point your phone at an object or hold it to listen to music, and the Firefly service will identify the product, music, or video. Amazon uses a combination of optical or audio recognition.
Buying products on Amazon – especially for Prime members – is already low friction with 1-click purchase. Firefly takes even more friction out of the process.
Today, Nokia’s HERE just announced it plans to acquire Medio Systems, a Seattle-based company that is a pioneer in the emerging field of real-time predictive analytics. I met Medio founder and CTO, Brian Lent, a couple of times in the past few years and have always been impressed by his vision of what analytics would become.
Such an acquisition will help HERE and then Nokia Networks and Technologies deliver more contextualized and personalized experiences by adding smart data to its location intelligence capabilities.
At Forrester, we believe that to embrace the mobile mind shift, companies will have to serve customers in their mobile moments. To do so, they must anticipate their customers’ next likely actions. Already, almost 1 in 4 smartphone users expect their mobile experiences to change based on their location.
According to Nokia, it could, for example, mean delivering individual restaurant recommendations to someone ready for lunch, giving drivers routes that match their driving style based on real-time conditions, or helping businesses personalize their customer offerings.
To be able to deliver these experiences and engage with customers in real time, marketers will have to think about mobile not as yet another digital channel but as a catalyst for business transformation. To do this, Forrester believes they need a business discipline to win in the mobile moment by implementing what we refer to as the IDEA cycle, by:
• Identifying the mobile moments and context.
• Designing the mobile engagement.
• Engineering platforms, process, and people for mobile.
Globally, consumers will own more than six billion mobile phones by the end of 2014, and about two billion of them will be smartphones. With this penetration comes the mobile mind shift - the expectation to be able to access any information or service on the mobile device, in the moment of need.
What’s more, consumers reach for their mobile phones 100 to 200 times a day. In these mobile moments, they expect companies to understand their context and offer relevancy as well as both curated and streamlined experiences on mobile devices. They want to see if their children are home from school, buy coffee, access coupons, check in for a flight, check stock prices, use Skype to call Singapore, and play Candy Crush. Enterprises must learn how to, and then serve, customers in these mobile moments. Otherwise, they will lose – an entrepreneur like Uber’s Travis Kalanick will disrupt their business just like he did with taxis.
Mobile moments extend all of the way through the customer’s journey.
But while mobile has definitively become the most important digital platform for most companies to engage with their customers, too few enterprises have embraced this opportunity. Too many view the mobile phone as simply a smaller screen or another channel.
Only a few businesses, like Starbucks, have been able to curate and own mobile moments with their customers. More than 10 million customers engage with the coffee chain each week through its mobile payment app. Starbucks owns what we call Loyalty Mobile Moments. For them and others like Citibank, USAA, and United Airlines, they must strive to excel in those moments of truth.
In the early 1900s, author Kin Hubbard said, “A bee is never as busy as it seems; it’s just that it can’t buzz any slower.” A century later, things haven’t changed much — except that today, those bees are us and that buzzing comes from our mobile phones.
Survey data tells us that consumers regard their mobile phones as catalysts for productivity. Considering the amount of time consumers spend using the device and how essential they characterize the technology to be, it’s easy to take their word for it. But not so fast: Mobile tracking metrics show that consumers rarely ever conduct productivity-related tasks on their devices. In fact, the official US productivity rate has dropped to its lowest point in the past two decades.
In this case, the conflicting data points are not wrong, they are complementary — and the resulting insight is even more valuable than the sum of its parts. A combination of Forrester’s Consumer Technographics® data, mobile tracking numbers, and ConsumerVoices output reveals that consumers engage far less frequently in productive behaviors than expected — and suggests a new understanding of what “mobile productivity” really means.
Governments face an alphabet soup of digital transformation with eGovernment and mGovernment mandates. Do I hear an sGovernment, anyone? The trend in engaging via new digital channels is clear: 52% of US online adults have engaged in one or more government related activities. For example, 19% have renewed a driver’s license or vehicle registration online, and 16% have paid a bill such as a traffic fine or utility payment. In the age of the customer, government organizations must understand and address the needs of their citizens. For governments, it's the "age of the citizen," with demands for greater transparency and accountability, improved efficiency, and, above all, better service delivery. Citizens no longer accept the shoulder shrug and age-old excuse that government is "like that" when service quality isn't as expected. And, part of that service quality for some is to be able to embrace a mobile moment to look up information or complete a task. Some government organizations hear the call and are making great strides to embrace and enable new mobile delivery channels — where appropriate. But many struggle to invest in what they do consider a strategic initiative. Of those who consider mobility a strategic priority, only 30% in government have increased spending on mobile projects, compared with 51% in other industries.
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.