How To Develop Effective Mobile Marketing Strategies In China

Xiaofeng Wang

Our Chinese Mobile Consumers Are An Attractive But Unique Audience report showed how marketers in China are facing the most promising — yet most complex — mobile market in the world. To help marketers overcome mobile challenges in China, we’ve recently published a follow-up report, Drive Effective Mobile Marketing In China.

Mobile is changing the daily life of Chinese consumers; the phone-addicted population (ditouzu) is growing fast. With high adoption and usage of mobile devices, consumers in China are experiencing the mobile mind shift: the expectation that they can get what they want in their immediate context and moments of need. However, marketers in China are not keeping up with consumers. Why? They aren’t thinking about mobile strategically:

  • They hold false assumptions on how to reach Chinese mobile consumers. Most marketers in China still think in a traditional way: They assume that consumers in tier one cities are the most active mobile Internet users; that Chinese mobile users can actually use the mobile Internet on the go; and that a city-tiered approach in mobile marketing will be successful.
  • Their mobile marketing strategies are still experimental. Although many marketers in China have tested mobile, only few have incorporated it as a consistent marketing channel. Marketers only spend a very small portion of their ad budgets on mobile.
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Case Study: Improving Social Media Measurement In China

Xiaofeng Wang

Ever since we published the Social Media Measurement In China report (and accompanying blog post) last year, marketers in China have been constantly asking us if we have any case studies. This year, we interviewed Nestlé China, one of the few marketers in China that has started to measure the link between social media metrics and business outcomes rather than basic volume and engagement metrics. The result: our new Case Study: Nestlé China Raises The Social Media Measurement Bar For Its Ice Cream Brands report.

Nestlé China's ice cream business unit has two major brands: BenNaNa and Five Rams. BenNaNa is an unusual ice cream stick with a peelable jelly shell that shapes the ice cream, which is eaten just like a real banana. Because of its playfulness, BenNaNa is the No. 1 kids’ brand in China and is also popular among young consumers. Five Rams, a local brand that has been based in Guangzhou for more than 50 years, was licensed by Nestlé in the 1990s. As a regional brand, Five Rams is the category leader in Guangdong province.

Nestlé started using social media in 2012. For the first two years, the company confined its social marketing efforts mostly to Sina Weibo, as it had tested other platforms but did not find any that generated good performance. Starting this year, the Nestlé marketing team added WeChat to its social spectrum and gradually shifted its efforts to this rapidly growing mobile social platform.

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Can Huawei’s Honor Write A New Brilliant Canto?

Vanessa Zeng

On June 24, I attended the launch event for the new flagship of Huawei’s Honor product family, the Honor 6, in Beijing. As one of the world’s largest telecom equipment manufacturer, Huawei has been cultivating a mobile phone business in the past few years, and became the third largest smartphone vendor in the world at the end of 2013. Until now, Huawei’s mobile phone business has mainly followed a B2B2C business model: selling its devices via mobile network operators. Huawei launched Honor in December 2013 as an independently operated Internet brand that aims to adapt quickly to changes in the age of the mobile Internet and provide high-performance products at reasonable prices. As a former member of the mobile phone fraternity, I was impressed by Huawei’s technical leadership at the two-hour launch event — but behind the revelry, I noted that Huawei faces a few dilemmas:

  • A confused brand proposition. Huawei’s speakers spent a lot of time talking about the Honor 6’s technology framework and chipset, but didn’t mention what consumers can get from those technical advantages. The Honor 6 is a high-performance product with powerful functionality — high-speed LTE Cat6, an octacore Kirin 920 processor, long battery life, a powerful camera, innovative features, and a fancy Emotion UI — that retails for just RMB 1,999 (usually the price of a mid/low-end smartphone in China). Honor 6 is marketed as “the world’s fastest 4G smartphone”, but the promotional video suggests that the phone’s target audience is the young struggling working class. The brand message is inconsistent with the product positioning.
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Forrester’s Marketing & Strategy Summit Is Coming To Sydney August 13th!

Michael Barnes

I’m thrilled to announce that in less than six weeks’ time Forrester Research will hold its first-ever Summit for Marketing & Strategy Professionals in Sydney, Australia.

The entire Australia team is incredibly excited about this landmark event for Forrester. Here’s why:

The theme for this year’s event is “Winning In The Age Of The Customer.” What does this really mean? It’s simple, really. Empowered by digital platforms, your customers are free — free to act on their own needs and priorities, free to pick their own moments of engagement, free to design their own experiences — and free to ignore your own best efforts to shape and control all three. Forrester calls this new reality “the age of the customer.”

We’ll be releasing some brand-new research at the event that sheds light on the current state of customer experience management practices in Australia. While I don’t want to give away the ending, suffice it to say that Australian firms of all sizes are making customer experience a strategic priority. Firms across Australia increasingly have C-level executives driving their focus on CX, and they expect to get significant value from their efforts.

But not all firms are at the same level of maturity — or even awareness. While some are finding ways to pull ahead of competitors through CX differentiation, others have not even gotten started yet. That’s why we’ve tailored this event to show attendees the one sure path to CX maturity and provide detailed guidance on how to advance along that path.

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How Hampton Hotels Built And Sustains Its Customer-Obsessed Culture

Sam Stern

My latest report, "How Hampton Hotels Built And Sustains Its Customer-Obsessed Culture," is a case study of the hotel chain. The brand has been on a nearly 10-year journey to differentiate its hotels from competitors on the basis of exceptional guest experiences. It all started back in 2004. As part of the brand's 20th-anniversary celebration, Hampton asked its hotel owners to make about 120 product upgrades ranging from curved shower curtain rods to easy-to-use alarm clocks. Within a year, competitors had copied all of the new features.

The next year, in response to the cutthroat competition in the hotel industry, Hampton embarked on a culture transformation intended to differentiate its hotels from competitors by delivering superior guest experiences. Along the way, the team at Hampton learned important lessons about how to create and sustain a customer-obsessed culture:

  • Leverage executive support. The Hampton brand team began by making sure it had executive support for a culture transformation. That was smart. In previous research, I found that every successful culture transformation has had active executive support. The team at Hampton took advantage of having a strong advocate for customer focus in the form of Phil Cordell, who was the global head of focused service and Hampton brand management. He backed the transformation and created a new position, senior director of brand program development and integration, and appointed Gina Valenti to lead the transformation efforts.
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The Innovative Tool That’s Transforming Customer Experience Training

Sam Stern

Companies want customer-obsessed cultures that will help them differentiate in the age of the customer. But transforming a culture can be a challenge: It requires all employees to understand who their customers are, how customers perceive their interactions with the company, and what roles employees need to play in delivering the overall experience. Enter learning maps, which are fast becoming the centerpiece of small-group interactive training sessions at many companies.

In my recent report, "Executive Q&A: Learning Maps; Innovative Tools For Customer Experience Training," I answered some of the common questions related to creating a learning maps to help companies decide if they should develop their own learning maps.

What are learning maps?

Learning maps are large-scale visualizations that use data, graphics, and illustrations to tell a story. The maps are training tools that abstract significant amounts of information into a format that facilitates conversations and understanding for diverse groups of employees.

How are learning maps used to improve customer experience?

Learning maps are typically used in small-group interactive training sessions to help employees understand the company's customer experience strategy and their role in delivering against that strategy.

What are the common scenarios where learning maps add value?

Some of the specific use cases for deploying learning maps include:

  • Sharing a new customer experience strategy.
  • Changing a specific part of the customer experience.
  • Training managers.
  • Integrating employees from acquired companies.
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When Mobile Becomes The New Face Of Social

Thomas Husson

Messaging apps have the potential either to become digital platforms or to significantly enhance the power of current platforms because they so clearly deliver the three things that determine digital platform power: frequent interactions, emotional connection, and convenience. WeChat is for example already morphing into a digital platform offering, thanks to the deep pockets of its parent company, the Chinese Internet giant Tencent.

While today’s opportunities are limited by consumers’ reluctance to engage with brands on such intimate channels and by immature marketing tools, it is definitely time for marketers to experiment and to anticipate the next steps.

Indeed, you’ve surely heard of the second-largest acquisition in tech history, Facebook’s purchase of WhatsApp for $19 billion. However, you may not have heard of KakaoTalk, Kik, Line, Secret, Snapchat, Tango, Viber, or Whisper.

These messaging apps are the new face of social in a mobile context.

Contrary to social media that are generally public broadcast mechanisms that facilitate one-to-many communications, a messaging app is a typically private, one-to-one or one-to-few communication and media tool optimized for mobile. Such smartphone apps can access your address book, bypassing the need to rebuild your social graph on a new service. As Evan Spiegel, the CEO of Snapchat, puts it, “We no longer capture the real world and recreate it online – we simply live and communicate at the same time.”

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Tencent’s News Portal Is Differentiating Itself By Using IBM Social Analytics During The World Cup

Gene Cao

Contributed by James McCormick and Allison Smith

Tencent’s news portal is one of the largest online news portals in China, with more than 25 channels covering all types of news. Tencent faces fierce competition, which it intends to combat by building its analytics competency. With the eyes of millions of Chinese soccer fans on the World Cup, Tencent has a chance to better target its news and reports by using social analytics — which the news portal did by launching a mini-site of World Cup 2014 coverage. More than 50 advertisers showed interest in the World Cup site, thinking that it would differentiate Tencent’s news offerings and draw more traffic. And they were right: The site got more than 3 million hits in the first week of the Cup.

Tencent now has the first social analytics website for sports in China. Supported by IBM’s Social Analytics engine and hosted in its SoftLayer data center in Hong Kong, the site aggregates data from most leading Chinese social platforms including Qzone, Renren, Sina Weibo, and Tencent Weibo. Full coverage of these social platforms can help Chinese businesses get a fuller picture of customers to better personalize and target offers. Tencent’s news editors also have a separate social analytics tool to find buzzwords or popular terms on social platforms and highlight these attention-getting phrases in their titles and articles.

This investment is delivering two major benefits to Tencent:

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Facebook's Mood Manipulation Study: What Does It Mean To Brands?

Fatemeh Khatibloo

By now, most of you will have read or seen multiple media stories about Facebook's recently published mood manipulation study. There's a lot of debate about the ethical implications of the research, and several European data protection agencies have already announced investigations into whether Facebook violated local privacy laws with the study.

But we think the questions for marketers go deeper: how will this research, and user response to it, affect how brands are able to engage with their customers on Facebook? My colleague Nate Elliott and I have just published a Quick Take on the subject. Our high-level assertions: 

  • While Facebook’s study crosses ethical lines, the data use is likely legitimate. Consumers are understandably outraged by why they perceive as an abuse of their postings. But Facebook’s Data Use Policy explicitly allows the firm to use data for internal research purposes. Still, the potential for users to abandon Facebook is real.
  • Facebook has novel data to analyze, and long term, that could change marketing practices significantly. The kinds of data that Facebook is starting to exploit are highly unique. It could actually combine evergreen affinities with contextually specific emotional states to change how brands buy media and measure performance.
  • But the short term implications may cut its opportunities off at the knees. If Facebook, with all of its research and experimentation, causes users to feel like lab rats, it’s possible that they will leave the site in droves. That outcome could severely limit brand reach — and that could signal the end of Facebook’s marketing customers, especially given today’s already reduced reach.
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Few Insurers Are Currently Proud Of Their Mobile Offerings, And Rightly So

Oliwia Berdak

Have you ever had the pleasure of making the acquaintance of Maxwell the Pig? Maxwell is a likeable if slightly assuming animated pig. At times he can be a bit dismissive of those who aren’t as digitally savvy as he is.

Maxwell is also a celebrity, featuring in a number of videos promoting Geico’s mobile insurance offerings.  In one he bewilders a policeman with his digital insurance ID, in another he demonstrates how time and space have been obviated by the convenience and ubiquity of mobile insurance. Talk of the mobile moment!

Even if you don’t know Maxwell, perhaps you know other such celebrities? I thought not. That’s because there aren’t many companies that are willing to advertise their mobile insurance services as proudly as Geico is doing. For my new report, I surveyed the mobile offerings of more than 30 insurance companies in developed economies. The results clearly show that plenty remains to be done, both in terms of customer adoption and what’s on offer.

The big US insurers such as Geico and Progressive are leading the pack, offering a growing range of mobile functionality that lets customers get quotes, file and track claims, locate a repair shop, pay bills, and save documents simply by taking pictures with their smartphones. Offering functionality that makes it easy for customers to achieve their insurance-related aims seems like the basics, but a lot of companies still haven’t got it right.

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