how mobile is empowering consumers and remaking … #2 –connecting digitally discussion: ... case...

Mobile - Empowering Consumers

and Remaking MarketingOct. 9, 2012 Dr. Phil Hendrix

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How Mobile is

Empowering Consumers

and Remaking Marketing

Prepared for Discussion

Dr. Phil Hendrix, immr and GigaOm Pro

Oct. 9, 2012

www.immr.org/mobile-remaking-marketing-201210.pdf



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Topics

� “Path to Purchase”

� 5 Cases Illustrating Impact

� Mobile Capabilities/Functionality

� Implications and Opportunities

� A Look Ahead (2013-2015)

� Discussion (throughout)



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Mobile Driving BehaviorMobile Capabilities

9 in 10 Smartphone Owners have

their smartphone with them

“most of the time” or “always”Source: Edison Research



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Mobile and the Path to Purchase



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Case #1 – Coke Happiness Machine

Brands Connecting

in New Ways



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Case #1 – Coke Happiness Machine

“We used free stuff to

surprise people but what

we gave away was [a dose

of] happiness and a smile.”



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Case #2 – Connecting Digitally

Discussion:

• What’s in it for the

consumer?

• Destination(s)/

Applications?

• Value to the brand?

• Value to the

establishment?

Discussion:

• What’s in it for the

consumer?

• Destination(s)/

Applications?

• Value to the brand?

• Value to the

establishment?



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Case #3. Social-Geo Targeting

Birds of a Feather do

Flock together

• Follow/fans

• Tweets

• Check-ins

CTR �� 7x

Birds of a Feather do

Flock together

• Follow/fans

• Tweets

• Check-ins

CTR �� 7xFoo Fighters



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Case #4 – “Good Push”

Good

Push



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Case #5 – “Mobile Concierge”



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Consumers

Consumers Leveraging Mobile



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Expectations – Share, Know, Use

What I Like

Who I am… Where I

am

What’sNearby

What’s going On

What I respond to

What I’vebought

Where I’ve been What

I need

Where I’m going

Source: Dr. Phil Hendrix, How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing



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Incumbents and Disruptors



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Leveraging Mobile with PEERSM

Source: Dr. Phil Hendrix, How SoLoMo is Empowering Consumers,

Transforming Shopping and Disrupting Advertising and Retailing



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Mobilizing Enterprises



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Capturing, Sharing Images

Which site…

…reached 10m U.S. monthly unique visitors

faster than any independent site in history?

… is generating more referral traffic to

websites than YouTube, Google+, and

LinkedIn combined?



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Sensors Connect Physical – Digital



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Transparency in Real-time



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Cloud = Elastic, Real-time, Scale

Search

• Auto-complete

• Google Instant

• Proximity Search

• Image Search

• Personalized SERs

Augmented Reality Messages,

Ads, and Offers

Big Data +

Algorithms

LocationLocation

SocialSocial

HistoryHistory



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The Elements of SoLoMo

MobileMobile LocationLocation SocialSocial

X X



DevicesDevices

SensorsSensors CloudCloud

BroadbandBroadband

AppsApps InternetInternet

Six Elements of Mobile



DevicesDevices

SensorsSensors CloudCloud

BroadbandBroadband

AppsApps InternetInternet

90%Keep smartphone w/in arms length3

1.2BApps downloaded 12/25-12/312

53%US subscribers own smartphone1

Sources: 1 Pew Research; 2 Flurry; 3Edison/Arbitron

Six Elements of Mobile



ThingsThings

VicinityVicinity

ProximityProximity

PlacePlacePositionPosition

ContextContext

Six Elements of Location



ThingsThings

VicinityVicinity

ProximityProximity

PlacePlacePositionPosition

ContextContext

74%US smartphone owners use their

phone to get real-time location info1

20xMobile users 20x more likely to click

on a map than desktop users3

60%Search on their smartphone daily2

Sources: 1 Pew Research May 2012; 2 Google; 3Razorfish

Six Elements of Location



Close FriendsClose

Friends

ContentContent

SentimentSentiment

PlatformsPlatforms

SharingSharing

NetworksNetworks

Six Elements of Social



Close FriendsClose

Friends

ContentContent

SentimentSentiment

PlatformsPlatforms

SharingSharing

NetworksNetworks1 in 7Facebook accounts for

1 in 7 mins. spent online1

$1BFacebook has agreed to

pay for Instagram2

2.5xLTV of a visitor referred from

Facebook vs. Google3

Sources: 1 Comscore; 2 Flurry; 3Ben Elowitz (Wetpaint)

Six Elements of Social



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SoLoMo (Social + Location + Mobile)

“Social signals are by far the strongest way to

determine what content the mobile audience

will engage with at any point in time.”Tobias Peggs, OneRiot (acquired by WalmartLabs July 2011)



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Mining Digital Signals

Digital Channels

Traces produced

as consumers

interact with Digital

Channels

Internet• Websites

• Microsites

• Search

• Ads

Social• Publish

• Share

• Discuss

• Review

Mobile• Apps

• Location

• 2D codes

• NFC

Interactive • Social TV • OOH

Digital Signals

Source: Dr. Phil Hendrix, Tuning into Consumers’ Digital Signals, 2011



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Importance of Digital Signals

In real�time, on a massive scale, at no cost,

Digital Signals reveal:

ConnectionsContextLocation

Consumers’• Attitudes

• Interests

• Opinions

• Motivations

• Values

• Activities

• Experiences

• Questions

• Connections

• Plans/Intentions

• Responses

• (Dis)satisfaction

Source: Dr. Phil Hendrix, Tuning into Consumers’ Digital Signals, 2011



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Is Mobile Friend or Foe?

“Pain Points” for Shoppers

• Research products

• Making list

• Organizing list

• Finding coupons

• Choosing store(s)

• Confirming availability

…

• Parking

• Locating products

• Product out-of-stock

• Evaluating products

• Getting assistance

• Comparing prices

…

• Redeeming coupons

• Knowing “open to spend”

• Waiting to pay

• Keeping track of receipts

…

• Delivery

• Missing parts/instructions

Planning Shopping Paying

Source: immr research, 2012



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Satisfaction – Online vs. In-store



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The Future of Mobile and Marketing#1. Hyper-local Audiences#1. Hyper-local Audiences

#2. Micro-location#2. Micro-location

#5. Filters#5. Filters

#7. Persistent Location#7. Persistent Location

#8. Ambient Analytics#8. Ambient Analytics

#9. PEER#9. PEER

#3. Micro Networks#3. Micro Networks

#4. Mashups#4. Mashups

#10. Yield Management#10. Yield Management

#6. Curation#6. Curation

Source: Dr. Phil Hendrix, immr



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At the Wheel of (Mis)Fortune

Capitalizing on Mobile in Strategy

Stage 4

Stage 3

Stage 2� Sales

� Finance

� Operations

� Field service

� HR

� Legal

� Support

� IT

Stage 1Connecting to:

� Internal data

� External data

� Platforms

� Partners“There’s an app for that”

Keeping

Up

Keeping

Up

Mobilizing

Processes

Mobilizing

Processes

Leapfrogging

Competitors

Leapfrogging

Competitors

Mobile

Innovation

Mobile

Innovation

Payoff

Agile

Development

Small bets

�� All in

Time, Investment and Payoff

“Two important things to understand”� Returns concentrated in a few big winners

� Best ideas look initially like bad ideas

Paul Graham, YCombinator

Source: Adapted from Mobilizing the Enterprise, Dr. Phil Hendrix



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� Building Customer Loyalty with Mobile†

� Social + Location + Mobile: SoLoMo Analytics

and the Transformation of Shopping†

� The Local Consumer – an In-depth Mosaic†

� How Consumers Are Using Local Search

� Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2†

� The Promise of Hyperlocal: Opportunities

for Publishers and Developers

� Tuning into Consumers’ Digital Signals

� How SoLoMo is Empowering Consumers, Transforming

Shopping, and Disrupting Advertising and Retailing

� Location – the Epicenter of Mobile Innovation †Forthcoming

Recent immr Reports



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About the AuthorDr. Phil Hendrix is the founder and director of immr (www.immr.org), a research and advisory firm focused on

market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He specializes in helping

organizations evaluate and capitalize on opportunities that are new-to-customers and new-to-market. Dr. Hendrix

has extensive experience uncovering customer needs, identifying triggers and hurdles to adoption, and developing

strategies that unlock market opportunities, both B2C and B2B.

As an analyst, Phil focuses on mobile innovation and the implications for companies across industries. He is a

regular contributor at leading industry conferences, including GigaOm's Mobilize, Structure:Data, Street Fight

(hyperlocal), ad:tech, iMedia Summit, Social-Loco and others. His current work focuses on mobile and its impact

on consumer behavior, especially shopping, M-commerce and mobile payment.

As a consultant and advisor, Phil has led significant engagements with startups and Fortune 100 clients in mobile,

consumer electronics, and related categories, including financial services, transportation, insurance and others. He

works closely with senior management and project teams on key issues, including market sizing, segmentation,

positioning, and branding as well as innovation, user experience, and customer retention. Over the course of his

career, Phil has helped clients conceive and successfully launch dozens of new products, services and businesses.

Before founding immr, Phil was a partner with DiamondCluster (strategy and technology consultancy, now part of

PwC), founder and head of IMS (Integrated Measurement Systems), and a principal with Mercer Management

Consulting (now Oliver Wyman). He has held faculty positions at Emory University and the University of Michigan,

where he taught courses in marketing, research, and buyer behavior for MBAs and executives. While at Michigan

Dr. Hendrix also held a joint appointment as a research scientist in the Survey Research Center, Institute for Social

Research.



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Thank you!Dr. Phil Hendrix

Director, immr and GigaOm Pro

www.immr.org

@phil_hendrix [email protected]

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