HERE Plans To Acquire Predictive Analytics Vendor Medio To Better Serve Customers In Their Mobile Moments

Thomas Husson

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.

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Something Like Democratic Marketing

Ryan Skinner

Set against marketing messages, I would rather listen to my neighbor’s opinion of a product. A critic’s opinion. An expert’s. Any idiot with an Internet connection, in fact (according to our research, review content from complete strangers is more trustworthy than messages from brands).

The payload of this realization – that marketers’ messages are overinvested in by a million percent and underdeliver by an equal value – strikes our marketing foundations, oh so softly. Thud. Pop. Distant thunder.

Simultaneously it’s never been easier for other people to write about our brands, to create breathtaking personal tributes to our products, to call out our worst policies, and even to slander us. The crowds have snatched the megaphone and they won’t give it back.

These are two factors in a big equation that we’re still only beginning to calculate.

So far, we’ve dealt with these changes pragmatically and conservatively.

Community management is a perfect example of the pragmatic response. Community management is just a series of tribal agreements about playing rules. The brand will not allow threads that include the word “shit”. The brand will retweet only tweets from registered users. The brand answers requests within one hour between 9 AM and 9 PM EST. The brand will blog politely about its topic.

The marketing fortress has collapsed, the mobs are baying for blood, and the sop you throw this change is to play nice? This is what I’d call the Marie Antoinette response.

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The Ongoing Loyalty Battle Between Taxi-Hailing Apps In China

Xiaofeng Wang

Taxi-hailing apps like US-based Uber and UK-based Hailo are gaining momentum globally. As with other segments of the Internet industry, the taxi-hailing app market in China is also mainly about local players. After rounds of fierce price battles earlier this year, two players — Didi Dache and Kuaidi Dache — continue to dominate the market and leave no room for smaller competitors and newcomers. This battle wasn’t just between two niche apps; it was also a struggle between two Internet giants’ mobile payment services: Tencent’s WeChat Payment (for Didi) and Alibaba’s Alipay (for Kuaidi).

Price wars may be an effective way to acquire new customers. For example, Didi went from 22 million to 100 million users in just 77 days by spending RMB 1.4 billion (about US$225 million). That’s less than $3 per new customer. However, it’s a poor strategy to gain customer loyalty. For months, users have switched back and forth between apps simply because of slim (and temporary) price differences. Only recently have Didi and Kuaidi begun to take different approaches to engendering customer loyalty:

  • Kuaidi adopted a loyalty rewards program in cooperation with marketers and eCommerce platforms. Based on the number of rides they complete in a given quarter, Kuaidi divides customers into five loyalty categories: Normal, Silver, Gold, Diamond, and Ultimate. Customers earn different numbers of points for each completed transaction, depending on their level. They can use these points to purchase coupons — either Kuaidi Coupons, good for a discount on their next taxi fare, or other coupons provided by marketers and eCommerce platforms such as
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With iOS 8, Apple Increases The Value Of Its Ecosystem But Only Marginally Improves App Marketing

Thomas Husson

My colleague Ted Schadler explained here how Apple's iOS 8 focuses on developers building new mobile moments.

Once again, Apple increases the value of its ecosystem and will create more stickiness and loyalty by enabling developers and marketers to build new app experiences. The first building block to tap into the new opportunities that wearables and connected objects are opening up is to create a service ecosystem. That’s the reason we haven't heard any product announcements yesterday.    

From a marketing standpoint, Apple introduced some new App Store features for developers, like app previews and app bundles. Marketers will be able to let users buy multiple games or apps at once and for a discounted price. App listings can now include feature video demonstrations to showcase the value of your app. The new “Explore” tab - including the trending topics and the vertical scrolling - will also facilitate app discovery.

However, in comparison with the great iOS differentiated innovations announced to create new app experiences (e.g., HealthKit, HomeKit, Swift, TouchID, and open APIs), Apple mostly implemented incremental changes to its App Store marketing. Most marketers sill complain about Apple’s black box and the lack of transparency about Apple App Store’s ranking algorithm and ratings and review systems.

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What To Learn From The Japanese Mobile-Centric Market

Thomas Husson

Japanese consumers are among the most mobile-savvy in the world: They were shopping, banking, and gaming on mobile phones long before consumers in other nations. The Japanese mobile ecosystem used to be unique; telecom operators specified to Japanese handset manufacturers the design of services to implement on multimedia phones. This is changing in an app world.

Indeed, the mobile market is opening up quickly to the smartphone app ecosystem. While Japan is a mobile-centric society, smartphone adoption has lagged behind other major markets. Many international brands launched their first mCommerce initiatives in Japan several years ago, but the market subsequently disappeared from the innovation radar due to the US-centric smartphone app ecosystem. But this is changing. It is time to take another look at Japan to uncover how the nation is combining innovation and scale as its market embraces smartphone apps.

More than a decade ago, I had the opportunity to work with NTT DoCoMo to introduce i-mode — the mobile multimedia service in France. At that time, Japan was clearly two to three years ahead of the rest of the mobile world. The Japanese market — and more specifically, the i-mode business model — is rumored to have inspired Steve Jobs to launch the Apple App Store. After that, Silicon Valley became the new source of innovation and inspiration for mobile marketers. Now that the app ecosystem has come full circle, marketers should again consider mobile marketing in Japan, benefiting from a more open ecosystem to distribute their apps and engage with Japanese customers. I recently spent a full week in Japan, and it is fascinating to see the relationship people have with mobile phones over there.

There are lots of lessons to learn from the likes of Rakuten, Line, Felica, Softbank, or NTT DoCoMo and from a mature ecosystem of mobile contactless and connective-tissue technologies.

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What Does Acxiom's $310M LiveRamp Bid Mean For Marketers

Susan Bidel

On May 14, Acxiom announced its intention to acquire LiveRamp, a "data onboarding service," to the tune of $310 million in cash. Several Forrester analysts (Fatemeh Khatibloo, Tina Moffett, Sri Sridharan, and I) cover these two firms, and what follows is our collective thinking on the impending acquisition after having been briefed by Acxiom's leadership on the matter.

  • The acquisition sets Acxiom up to displace traditional MSPs. LiveRamp has built integration relationships with four of the biggest managed service providers (MSPs): Epsilon, Equifax, Experian, and Merkle. Acxiom is claiming agnosticism, and it has told us that it is "open to many ways of proving neutrality, including contractual commitments, [and] third-party audits." The firm considers the acquisition "an evolution of Acxiom’s Audience Operating System (AOS), which was launched to connect the ecosystem of marketers, technology, and media more tightly together and make every part of that ecosystem work better." But when we project out a few years, we have a hard time seeing how marketers will justify a standalone customer relationship management (CRM) database when they could, for example, port their POS and order management system (OMS) data directly into AOS and use that as their "customer marketing platform-as-a-service."
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Messaging Apps Are Thriving In The Age of The Customer

Thomas Husson

By now, you've surely heard of the second-largest acquisition in tech history, with Facebook acquiring WhatsApp for $19 billion.

However, you may be less familiar with other messaging apps like LINE, KakaoTalk, KIK, Nimbuzz, SnapChat, Vibes, Whisper, and many others.

If you think messaging apps are just a free way to communicate, you’re missing their potential: They are Mobile’s Trojan horse, as explained by my colleague Julie Ask here.

Messaging apps are mushrooming.They illustrate perfectly the age of the customer, which Forrester defines as a new business era where your customers are now empowered through social, mobile, and other technologies giving them the power to disrupt your business. Why? Because they are mastering the four key market imperatives Forrester has identified as critical to differentiate in the age of the customer:

■  Transforming the customer experience over SMS and other messaging tools. Messaging apps offer differentiated and seamless experiences over SMS and other mobile communication tools. For example, they offer advanced group messaging functionalities, multimedia features, constant innovation, and ability to opt-in or follow brands at consumers’ convenience. They are now morphing into marketing platforms redefining social media.

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Introduce The Marketing RaDaR To China

Xiaofeng Wang

Marketers in China are becoming more aware of the effectiveness of their marketing spending. They will no longer blindly spend a lump sum on China Central Television’s ad auction, for example. Home appliance giant Haier Group recently announced that it will stop spending on traditional magazine ads and maintain paid editorials only.

As Chinese consumers increase the time they spend on new channels such as social and mobile, it's more important than ever for marketers in China to optimize all touchpoints to reach and make an impact on their target audiences, especially when it comes to the new challenge of multichannel and multiscreen orchestration.

My recent report Sharpen Your Mix In China With The Marketing RaDaR illustrates how the RaDaR framework (first introduced by my colleague Nate Elliott) can help marketers successfully prioritize resources across their entire marketing mix in China.

RaDaR refers to “reach and depth and relationship” — three types of channels. Smart marketers are beginning to embrace a four-stage customer life cycle, from discover, to explore, to buy, to engage, then back to discover, and different types of channels support different stages of the life cycle:

  • Reach channels support discovery. Chinese consumers use channels such as in-store promotions and online search to discover brands.
  • Depth channels support exploration and purchase. Chinese consumers use channels such as consumer review sites and friends’ recommendations to research products and services they want to buy.
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Facebook's Audience Network: What It Means For Mobile Ads

Jennifer Wise

Facebook, the social media giant that has already made a large dent in the mobile ad ecosystem, today showed it has no plans to stop the momentum: Welcome, Audience Network.

Before today, there were already several factors working in Facebook’s favor: its reach among avid social users, its engaged and captive audience, and its trove of affinity data, which my colleague Nate Elliott talks more about in his blog post here.

After its Audience Network announcement today, Facebook is breaking the application of its tools and its data out of its own silo, and this could benefit several players:

  • Other developers and publishers could make more money by offering Facebook data-infused mobile ads.
  • Advertisers can dip into Facebook’s rich affinity data to target their ads across other mobile properties.
  • And of course, Facebook itself just extended its potential revenue base and faces a new competitive set with the likes of Google AdMob and MIllennialMedia.
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Facebook Begins Building The Database Of Affinity

Nate Elliott

It’s been clear for a while now that the greatest value of social media to marketers won’t come from placing ads on social sites — it’ll come from using social data to improve the ads marketers place everywhere else. We call this idea the database of affinity, and we believe it could be the Holy Grail for more-effective brand marketing. For nearly a year, Google has helped marketers use the database of affinity to improve the targeting of their online display ads. And today Facebook has finally started to build the database of affinity that has always been its birthright, launching a mobile ad network.

This move is fantastic, if long overdue, news for marketers. It has the potential to improve the performance of all mobile advertising. And if Facebook grows its ad targeting business into other channels and works to better analyze and utilize its data (something it’s lagged at in the past), it could revolutionize brand advertising.

For more analysis on what this means to the mobile ad ecosystem, read my colleague Jenny Wise' take here.