Marketers often ask me what their mobile strategy should be: What are the key elements? How can they make sure it’s successful? Where should they put their money? These may sound like simple questions, but given how complex the technology and landscape are there’s a lot more involved in answering them than it may appear at first glance.
In an effort to unravel the complicated answers to these questions, I undertook some research that led me to the essential question that lurks behind marketers’ inquiries but is rarely stated: Is “mobile” a true marketing channel that demands its own strategic expertise and focus, or is it simply a different device through which consumers come into contact with messages you've already established for other campaigns? The answer is that it’s both.
In my latest report, "Evolving Your Mobile Marketing Presence," I talk about how marketers are working through the stages of mobile skills and strategy development in an effort to approach mobile as wisely as possible. After talking with marketers, vendors, and agencies, these are the phases I identified:
For more information about each of these phases and how marketers are tackling them, Forrester clients can access the complete report at the link above.
As I’ve mentioned before, I’m going to be focusing on mobile marketing for much of this year, so I’m very interested in hearing about your own experiences. Have you asked yourselves the device versus channel question? How are you approaching each of these phases?
Mondy Beller, the VP of eCommerce for PacSun, spoke just before I did at the Responsys event about the integrated marketing programs PacSun is developing. Here are the lessons I learned from her:
Your biggest priority should be to build a unified customer database. Beller gave some great examples of multichannel campaigns — running email or Facebook messages that match with customers' recent purchases or daily promotions that are running in store. None of these work without a single customer database that stores all of the customer information.
Develop trust with your customers. Beller said PacSun is lucky because its young target audience is both technology savvy and wants to engage in an interactive relationship with PacSun. This makes it easier for PacSun than for other brands to gain customer permission, registrations, and behavioral data. But PacSun still works to nurture trust with its audience. It uses QR codes in stores to get shoppers to log products they browse or to register for mobile promotions. It will also be using iPads to help sales reps show fashions or register customers for email or Facebook while they are in the store.
Use Facebook for research and relationship building. PacSun certainly uses Facebook to distribute promotions. But it also uses it to converse with customers. It reads and responds to comments fans post. It posts questions and conversation starters. And it listens to the community to test product ideas, pricing, and the buzz about current promotions.
I spoke last week at Interact 2011, a Responsys-sponsored event attended by about 600 of its current clients and prospects. The theme of this year's event was "The New School of Marketing," a framework Responsys has developed to help marketers better connect with empowered consumers. The fundamental principles of New School Marketing are that it is: permission-based, automated, cross-channel, and focused on engagement. See what Responsys thinks will change from current approaches to those that are part of New School Marketing:
I found the event to be extremely well produced (not just because it featured a fantastic performance by the iconic Cyndi Lauper -- see photos below) and full of some great marketer stories which I'd like to share in my next several posts.
I recently read about a California ruling that prohibits most offline merchants from collecting ZIP codes for credit card transactions. According to the LA Times:
“The high court determined that ZIP Codes were "personal identification information" that merchants can't demand from customers under a state consumer privacy law.”
One justice was more specific about the ruling, saying that the privacy law in question was intended to prohibit retailers from collecting and storing consumer information that wasn't necessary to the transaction.
The attorney who brought the law suit took the implications further saying that, “the decision would help protect consumers from credit card fraud and identity theft.”
So there are actually 2 issues here:
1) The collection of non-essential data
2) Security problems that facilitate the use of the data for illegal purposes
The marketing and privacy discussion is full of complex issues being conflated in similar ways. Even terms like “consumer data” and “privacy” are so loaded that there are conversations between parties using the same words, but not talking about the same thing.
Most marketers are interested in data that gives them a better understanding of their audiences overall. Generally, we’re not talking about marketers collecting the kind of personal information on your credit report — complete address, bank accounts, etc. Most of you reading this post are well acquainted with this distinction, but are consumers? I suspect most aren’t.
Nokia just published its fourth-quarter and annual results for 2010. I am not going to focus on the overall announcements and what they mean for Nokia’s device business in particular, but Nokia’s update on the Ovi Store is quite interesting.
Here are some of the key takeaways from a data perspective:
4 million-plus daily downloads on the Ovi Store.This is an increase of 200% from the 2 million daily downloads statistic shared at Nokia World in mid-September. If momentum continued and we assumed an average of 5 million-plus daily downloads throughout 2011, this would represent close to 2 billion downloads for 2011 alone. That’s not bad considering that Apple just announced 10 billion cumulative downloads since the launch of the Apple App Store in July 2008.
Good performance in BRIC and emerging countries.Seven of the top 10 most active countries are in the BRIC region or are emerging countries. These include: China, where Nokia claims to be the No. 1 store with 65% share (based on independent research); India; Indonesia; Russia, which sees more than 1 million downloads per week; Saudi Arabia, Turkey, with 1.6 million downloads per week; and Vietnam. One should not forget that growth and volumes will increasingly come from these regions. As a result, developers may increasingly be open to Nokia’s pitch that it offers local reach and global scale. One of the main advantages of the Ovi Store is its ability to provide operator billing (currently available in 32 markets), which makes a lot of sense in unbanked or underbanked countries where credit card penetration is low. Interestingly, 27% of the current downloads come from low-end devices (e.g, Nokia’s S40 proprietary platform) — meaning that apps are not just for “smartphones.”
In a recent post, my colleague Julie Ask and I examined what happened in the mobile space in 2010. In a new report, we are highlighting what we expect the key trends to be in 2011. While we believe that most of the trends identified last year will continue throughout the year ahead, here’s a snapshot of more specific trends that will shape the market in 2011.
• The mobile/social/local combo will explode in usage but generate little revenue.
• 2011 will be the year of the “dumb” smartphone user. Thanks to handset subsidies, smartphones will be available to the masses. Expect new smartphone users to be less engaged and active than the first cohorts of Android and iPhone early adopters. The good news is that thanks to customer education and the convenience that these devices offer, even “dumb” smartphone users will consume more mobile media than ever before and will have incremental usage of mobile data!
• The mobile fragmentation problem will continue in 2011. Prioritizing mobile developments will still be a challenge, and cross-platform development has not yet been achieved successfully.
A year ago, I tried to highlight what the key trends for 2010 would be. I wrote: “I’m not going to say that 2010 will be ‘the year of mobile’ or ‘the year of mobile marketing.’ I think 2010 is more likely to be the ‘year that every firm needs a mobile strategy.’ Mobile is simply too disruptive to merely have a year. After all, who remembers the year of the TV or the year of the Internet? Instead, I think 2010 will be a key year in mobile's transition to center stage in the digital marketplace. A new mobile decade is opening up, and now is the time to start your journey. In the past 10 years, mobile phones have changed the way we communicate and live. In the next 10 years, they will change the way we do business.”
Interestingly, that report — “2010 Mobile Trends” — was one of the most-read at Forrester, highlighting that a growing number of companies are starting to take mobile seriously.
So many things happened in 2010 that it is difficult to sum up the year. However, my colleague Julie Ask and I took a step back to offer our high-level take:
• New entrants are disrupting existing mobile ecosystems. Non-telco companies, such as Apple, Facebook, and Google, increased in importance as key players in the mobile ecosystem. Together, Apple and Google are closing in on controlling about half of the smartphone market and mobile advertising share in the US and have obtained a lot of traction in Europe and other regions of the world.
In the last few months, we've talked a lot about how quickly the mobile marketing space is moving — and with nearly 75% of marketers telling us they're implementing or planning to implement mobile campaigns in the next year, we're not expecting the pace to slow any time soon.
Since we've just switched over to our 2011 calendars, now is the time to make some predictions about what that mobile marketing growth is really going to look like. In our new report, we take a look at:
The potential for marketer-branded application fatigue. (Warning: Those allergic to puns may want to tread lightly on this section.)
Emphasis on interactive fundamentals — like display and search — for the mobile marketer.
The carving out of mobile-specific expertise both within and independent of interactive teams.
Innovation on the marketing potential of location-based services.
Forrester clients can read the full report here. Whether you're a client or not, I invite you to share your own mobile marketing predictions in the comments below. What do you think will happen in the world of mobile marketing this year?
First of all, the technology is not new at all. It is simply moving from PC and industrial environments to a marketing and mobile context.
Let’s face the reality: for now it is primarily used by brands willing to launch innovative mobile services and in search of a “wow” effect.
Few consumers are currently holding up their smartphone to interact with their environment as a totally natural gesture. Whether you look at the installed base of Junaio or Layar’s mobile users, this is a niche market.
From a pure technology standpoint, AR requires object recognition and computerization on the mobile device itself, as well as 3D rendering to superimpose images on the real world. This is a technology that only a few companies such as Metaio and Total Immersion really master.
The information displayed must be ultra-accurate and delivered in a perfectly seamless way. This is still far from being the norm for many of the so-called mobile AR applications.
To put it succinctly, mobile AR is not yet delivering its promise. There are certainly more significant short-term opportunities to tap into with Web-based and kiosk-based AR solutions, in particular related to eCommerce.
However, Forrester believes consumer product strategists should not dismiss the technology. On the contrary, it is likely to trigger disruption in the years to come and to open up new opportunities.
Is this a key technology moving forward? Yes.
Think of mobile AR as: “A way to click on the real world with your phone the way computer users navigate their desktop with a mouse. Just point in the direction you want to search, or at a place you want more info about,” which is how GeoVector summed it up in promoting its World Surfer application.