Shopkick - New Mobile Service To Drive Legitimate Foot Traffic

Julie Ask

I attended the unveiling of shopkick's new location-based technology at the Best Buy around the corner from my office today. Here are the highlights:

  • Downloadable application for the iPhone at launch in several weeks; will roll out apps for additional phones.
  • If the application is open, it senses where the individual is and what retail partners or other commercial businesses, such as grocery stores, drug stores, restaurants, etc. are nearby. Award points are given when the consumer walks through the door. shopkick installs technology inside the store that acts as a beacon communicating with mobile phones. If the application is open, it will recognize the signal, place the consumer within the store - either at the entrance or a specific department - and award points.

  • Once a consumer is inside the store, the service will award points for browsing and for using the built-in barcode scanner to get more product and pricing information.

The solution is integrated at the point of sale (POS) with the consumer's phone number. With purchases, consumers collect both store loyalty points as well as shopkick loyalty points. Loyalty points can be redeemed for special offers or cash - directly from the application. The value of the points in real retailer dollars will be set by the retailer.

What is interesting about shopkick?

Read more

The Data Digest: Which Music Devices Do People Use?

Reineke Reitsma

The sheer number and types of devices on which people can listen to music have expanded enormously in the past few years. How has that affected people's music consumption? Our Technographics survey data shows that the car stereo is the most popular device on which to listen to music, followed by the home stereo and the PC. About one-third of US adults regularly listen to music on a MP3 player, and 8% listen on their cell phones.

Even though music functionality on phones has been around for about six years, only iPhone owners have adopted it in a significant way. What keeps consumers from adopting new music offerings? A recent Forrester report called "Which Device Offers The Best Music Experience?" uses Forrester's Convenience Quotient (CQ) methodology to assess a sample of devices to evaluate consumer experiences. This analysis shows that every device currently available leaves consumers with a wish list of features and improvements: challenges with installation and setup, an inability to share music, a broken link between music and video, or a lack of logic in the navigation. The tradeoff for consumers is simple: They only adopt something new when the benefits are bigger than the barriers.

United Airlines - Crawling Forward Into The Era Of Modern Mobile With A Unique Approach

Julie Ask

About four or five months ago, I was on a United flight bound to the east coast from San Francisco. For reasons I don't remember, I had booked the ticket on Orbitz (I usually book directly so my records, receipts, etc. are all in my profile). Am boarded. Am sitting in a middle seat. Sigh. "Ping" goes my phone. I receive an alert that our flight has been delayed 20 minutes. I open my bag and pull out a salad. The two gentlemen in between whom I am squeezed look at me oddly and exchange glances as they expect the doors to close and the plane to back away from the gate. Salad finished. "Ping" goes my phone again. There is a maintenance issue with the plane. The "equipment" is being changed and we are being moved one gate over. I begin packing up my things, remove my seat belt and give the guy on the aisle my look that says, "are you moving or what?" He says to me, "where are you going?" I say, "equipment + gate change." He says, "how do you know?" I say, "SMS alert from Orbitz." He says, "What is an Orbitz?" More puzzled looks are exhanged. (Do I really want to explain a text alert in the year 2010 to someone who doesn't know what Orbitz is?) Several minutes later there is an announcement from the flight attendant with the same information, and everyone gets up to move. Now my fellow passengers are more intrigued. A third party is more efficiently delivering information to United's passengers than United is to their agents or customers directly.

I don't know how many times I've seen this poster in a United Airlines jetway and wondered, "Is this recent? or 20 years old? Do a lot of doctors fly? Is that why they advertise pagers?"

Read more

Want To Be Bought? Then Talk Cloud

Peter O'Neill

Continuing my musings about the impact of cloud on our industry (see last week’s blog), I’m in the middle of a cloud project where we are identifying and profiling potential channel partners for an ISV that is about to launch a systems management product for cloud environments. I must say, I’m surprised by the number of channel partners already talking about cloud.

It reminds me of a conversation with staff at Nimsoft, a company recently acquired by CA, about how they were promoting their cloud offerings. My personal view is that Nimsoft managed to complete their exit strategy so quickly and successfully because they focused all of their new product announcements and general positioning toward the cloud. Coincidentally, CA had decided to turn up the heat on its own cloud campaign and promptly bought three technology companies to strengthen the cloud offering and show their commitment — Nimsoft, Cassat, and 3Tera.

While Cassat and 3Tera were cloud-specific solutions, Nimsoft was already successful as a provider of systems monitoring software to enterprises and managed service providers. My theory is that their cloud image was the result of a considered repositioning exercise that culminated in their placement on CA’s wish list. Here’s another example: Yesterday, Adobe announced its intention to acquire Day Software, the Swiss content management ISV. Day Software had a consistent ECM business with modest growth, but I notice that they turned up the cloud messaging over the last months — I suspect this is what got them into Adobe’s sights.

Read more

QR Codes - How Will You Drive Awareness? A Local Case Study

Julie Ask

I was walking through DuPont Circle in Washinton DC last week. I stumbled upon Axis Salon. I was so intrigued by the glass storefront that I had to hang up the phone and stare. The salon front was COVERED in QR codes!!!

Storefront

Close-up of shop name:

Instructions to download: (they recommend 3GVision's i-nigma)

They should be telling consumers more about what phones are compatible, probably. There should probably be more instructions, but at least they OFFER instructions.

Scan the code ... link to a Web site with a coupon.

It's pretty basic, but very effective. They must have a lot of people asking. It's certainly driving buzz - I mentioned it to a couple of people I met in DC, and they knew about it. Partial instructions available. Lack of compatibility with most phones ... maybe an issue, but those who don't know about 2D codes are probably also less likely to ask. Fun.

 

The Marketing Of Mobile Services

Julie Ask

So, driving to work this morning, and I hear Chase advertising its remote check desposit service for the iPhone on the radio. This article has a good set of screen shots and description of the user's experience. Hard to imagine even 5 years ago a couple advertising a mobile service or application. How far we've come. Even three years ago, it was mostly Apple.

One of the top reasons companies give for building iPhone applications and mobile services is marketing -- the connection of innovation and technology to their brand. Chase was giving both instructions to existing iPhone owners to download as well as new customers. A very convenient mobile service being used to draw in new banking customers. It is using the availability of an interesting new feature -- and not simply "free checking" or "low interest rates on mortgages" -- to advertise Chase. It is using the availability of free services -- free mobile services.

Read more

The Immediacy That Mobile Delivers - ESPN's World Cup Coverage On Mobile

Julie Ask

What works well in mobile? Broadly speaking - Convenience. We define the benefits of mobile services as:

1) Content, whereby the user assesses value to the immediacy of having it now.

2) Simplicity.

3) Context (e.g., location).

Here's a great chart from Ground Truth with its analysis of unique visitors viewing soccer content during key moments of the World Cup. ESPN designs a great application, but this service really resonates on immediacy.

See our Yahoo! Fantasy Football report for an in-depth case study on the value of mobile-only and multichannel customers.

The Future Of Application Stores

Thomas Husson

Apple reinvented the distribution of products and services on mobile phones, opening up direct-to-consumer opportunities for nontelecom companies. The numbers look impressive — more than 5 billion downloads and $1 billion paid to developers in the two years since the launch of the Apple App Store.

However, it also generated $429 million for Apple itself in two years. These revenues are not meaningful to Apple’s core revenues. Due to the limited number of paid apps and their significant concentration among games and navigation apps, it is likely that a significant number of independent developers have not recouped their investments via the current revenue-sharing model. The recent launch of iAd is a way for Apple to maintain the attractiveness of its platform, allowing third parties that provide free apps to develop sustainable business models.

But, despite all the hype around apps, only a minority of consumers download them monthly. A recent Forrester survey of more than 25,000 European adults shows that only 4% of all mobile users and 15% of smartphone users report downloading apps at least once per month. However, the fact that 21% of all European mobile users consider apps to be an important feature when choosing a new mobile handset highlights the large gap between today’s limited usage of apps and consumer awareness and interest.

The application store market is still nascent, but it is evolving quickly. However, in the longer run, few players will be able to address the key factors that will make them a success:

Read more

The Data Digest: Profile Of Consumers Who Become Fans Of A Brand

Reineke Reitsma

Most companies are now building a social media strategy, with a presence on Facebook, Twitter and/or YouTube. At the same time there's much debate over the value of a "Facebook fan." In this whole discussion I was wondering which consumers are most likely to become fans of a brand. Our Technographics survey data shows that about 13% of European online adults have become “fans” of a brand, company, or product they liked recently. About 10% were interested in interacting with companies through social media but haven’t done so yet. The first group we called “brand fans,” the other “aspiring brand fans.” How do the two compare?

graphic showing profile of fans and aspiring fans

Aspiring brand fans have a more mainstream online profile: Half of them are male, and they are older in general. Brand fans, on the other hand, are more likely to be female, and two-thirds are younger than 35 years old.  And 20% of these Europeans who are fans of a brand say they are more likely to recommend the brand that they are “friends” with to their network of friends over any other brand. And this is exactly where the value of the Facebook fan lies. As my colleague Augie Ray said in his blog post: "Facebook fans have little actual value until they are activated by the brand."

Amazon Makes It Clear It Will Survive iPadmania

James McQuivey

This is a phenomenal week to be covering the publishing industry. Tuesday, Apple released its quarterly earnings. Big surprise, another record-breaking quarter for the folks in Cupertino. A few billion here, a few billion there, blah, blah. How amazing is it that we're not really surprised by such overperformance in an otherwise still-troubling economic environment? Of great interest to me, the eReader guy, was the final iPad tally for the quarter ending June 26th: 3.27 million units worldwide. Still no good guidance on what the US split is, but no matter how you slice it, iPads are hot. (And, no, I still have not bought one, still holding out for iPad 2.0).

And if you follow the implications of that success, as many in the media have, Amazon should just concede the eReader business, pack up its cream-colored Kindle and go home, right? 

Wrong. And to prove it, Amazon made a point of announcing some news of its own, the day before Apple's results were public. Amazon flaunted its own success in selling both Kindle devices and eBooks. That's right, despite that iPad upstart, the Kindle is still flying off the shelves, selling more units each month than the month before it all through Q2, when the iPad challenger was supposedly pummeling it. And it's dominating the eBook business as well, selling as much as eight in ten of the eBooks of major bestsellers, seeing its eBook sales rate triple over last year. Oh, and Amazon indicated it sells 1.8 eBooks for every hardback book it sells. That's right, even though it discounts hardbacks to paperback prices for many bestsellers.

Read more