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Mobile

What Marketers Should be Doing in 2012


1. What‟s fueling mobile right now

– Key trends to understand that will make a big difference in your mobile

plan

2. Merkle Mobile IQ Index

– Index of more than 20 leading brands

– What makes them successful

– Examples

3. What marketers should be doing this year

– The Four Pillars

– Audience and personas

– Heat map of mobile marketing tactics based on the audience

– Connected CRM

4. Case studies with results

5. Tips

2

Agenda

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3

What’s Fueling Mobile

Right Now

Key Trends to Understand, Ways to Engage the

Consumer


Consumers are mobile

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In 2011, one in three

Americans used a mobile

device to access the

Internet every month (eMarketer)

32%

In the USA, 9 of 10 US

citizens own a mobile

device and 66% are regular

users of SMS (eMarketer)

91%

About 16.2 billion mobile

apps will be downloaded

in 2013 compared to 3.5

billion in 2009 (FutureSource)

4.6x

In 2011 PayPal increased

mobile transactions to $4

billion compared to $750

MM in 2010 (Smartbrief)

5.4x


Source: Radio penetration data per Broadcasting & Cable Yearbook 1996, Internet

penetration data per World Bank / ITU, Morgan Stanley Research

Mobile internet adoption

Mobile internet adoption – faster than radio, tv, and the internet!

5


Source: Katy Huberty, Ehud Geiblum, Morgan Stanley Research

More mobile devices are shipped than PC’s.

The mobile tipping point happened last

year

6


“iPods changed the media industry, iPhones ramped even faster, iPad growth leaves siblings

in the dust.” Mary Meeker

Source: Mary Meeker, Kleiner Perkins, Internet Trends

iPod, iPhone, iPad consumer demand

7


Android is the smartphone operating system for the masses.

Source: Mary Meeker, Kleiner Perkins, Internet Trends

Android ramping faster than Apple

8


52% of mobile internet traffic is from iOS,

while Android trails at 16%...

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Operating System – Market Share

"Apple consumers are Digital Omnivores”

Are iPhone and iPad consumers more

valuable?

Source: Netmarkettrends

9


Source: Kleiner Perkins,Top 10 Internet Trends, Mary Meeker

Over $11 billion in transactions processed from these 5 brands in 2011.

Mobile commerce lift off!

10


Mobile search growth

Google represents 93% of all mobile search.

Mobile phones and tablets account for 8.2% of total browsing. Many brands find that mobile

represents a 10 – 25% share of internet traffic.

Source: Google

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Mobile is becoming a central part of the shopping funnel. Brands without a well-developed

digital strategy are not only missing a tremendous opportunity with these customers but also

risk becoming obsolete.

47%

37% 35% 34% 34%

32% 31% 29%

26% 24% 24%

21% 19%

13%

56%

42% 42%

37% 36%

Home Outdoor Work Traveling In Store

Source: Custom Mobile Retail Advisor Survey Response 2011

Types of Products Purchased Location

Consumer shopping behavior

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Text messaging, downloaded apps, and browsing lead the way for consumer usage.

71%

42% 42%

31% 29%

21%

Sent a Text Used Downloaded Apps

Used a Browser Accessed Social Networking or a

Blog

Played Games Listend to Music

Consumer engagement – marketing

tactics

Source: Netmarket Share, 8/11 13


Merkle’s Mobile Index &

Leading Brands

Mobile IQ Index and Good Examples

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Merkle Mobile IQ

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Having a high mobile IQ is mandatory for the marketer’s success. It’s not something

you are inherently born with; it needs to be cultivated over time based upon

experience, best practices and a sustained focus.

The Merkle Mobile IQ helps build a strong, permission-based marketing foundation

helping to enable a meaningful and profitable relationship with consumer.


Approach & common themes

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• Benchmark & Tracking: Mobile IQ Index assesses mobile programs and serves as a way to track brand

programs over time

• Scoring Methodology: Scoring is based on the criteria associated with each of the 4 pillars - Strategy,

Media Integration, Mobile Marketing Tactics, and Connected CRM

• Three Categories Emerge: The Index scores more than 20 brands ranging from emerging to

intermediate and advanced

• Vertical Lens: Certain verticals such as Retail, CPG, Travel, and Entertainment generally demonstrate

the adoption of mobile marketing ahead of others such as FISERV, Non-Profit, etc.

• Customer-centric Approach: Few brands are executing well across the 4 pillars, however, those that do

maintain a customer centric marketing approach - moving away from mass marketing to a one-to-one

approach

• Evidence that the 4 Pillars are Supported by a Solid Foundation: Advanced and most Intermediate

level brands have established a solid foundation of mobile marketing tactics mapped to the target

audience

• Connected CRM: Brands that have connected mobile data to the customer marketing database are able

to segment and target audiences, leading to personalization

Approach

Common Themes


Merkle’s Mobile IQ Index of Leading Brands

Source: Merkle Mobile IQ. Brand scores based upon consumer facing mobile programs in the United States.

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Intermediate Advanced Emerging

4 6 6

19 20

28 31 32

47 47 51 51

55 56 58 59

70

83 84 85 88 90 91

103 108 109

112 118

122 126 128 130

0

20

4

0

60

8

0

10

0

12

0

14

0


One of the top brands within mobile today, Best Buy takes a 360 approach to integrating

mobile into all media. This includes tactics such as mobile commerce, apps, mobile internet,

SMS, preference center, QR codes, LBS, RFID, NFC, AR, etc...

Best Buy

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Also one of the leading brands in mobile, Starbucks has a mobile strategy the focuses customer preference and convenience. The mobile loyalty program is an extension of the CRM strategy – works with the loyalty card and is tied into commerce.

Starbucks

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Delta now offers completely mobile travel, anytime, anywhere with the recent

release of apps for all device types, mobile internet site, and SMS that sends

the boarding pass attached to a QR code.

Delta

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Target is by far a leader, understanding that offline and online shopping has blended together.

Digital, especially mobile, has been included in all customer touch points. There is a complete

understanding of the target audience with continually improved mobile marketing tactics.

Target

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The mobile preference center on the site allows consumers to pick how they want to

engage with Target. From SMS alerts (based on time zone), to apps for all devices types,

mobile internet site, and QR codes to enhance the shopping experience Target provides a

full suite of ways consumers can connect.

Target

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Over the last several years, Home Depot has been a brand to watch within the mobile space.

They have established a killer QR code program for in store/out of store shopping and reviews

that ties to the how-to program. Home Depot provides content that focuses on consumer

needs to have a better shopping experience.

Home Depot

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One of the most well rounded and consistent retailers within the mobile space that integrates

mobile into key media channels. JCPenney has built a solid foundation of apps, SMS and

mobile internet, however, continues to test and innovate to see what works best for their

audience.

JCPenney

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Regardless of media, the consumer always has an opportunity to join the mobile club.

JCPenney is the only brand that sends out loyalty club reminders, helping to maintain a robust

mobile marketing database.

JCPenney

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How to Develop and Advance a

Successful Mobile Program


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Four pillars of mobile marketing and planning

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Successful mobile programs tie directly to marketing objectives.

Review of consumer profiles, marketing strategy, and business goals to

develop the overarching mobile strategy, value proposition, & roadmap. 1 Mobile

Marketing

Strategy

Implement proven mobile marketing tactics that deliver results.

Review of the consumer profile and segmentation data determines the

primary mobile tactics to reach and engage the largest consumer

share.

2 Mobile

Marketing

Tactics

Connected CRM.

Can be a phased approach until mobile reaches scale. All data capture

stored in the mobile database, can be connected via disposition files or

two way, real-time feed integration. This provides the ability to segment

and target consumers.

4 Connected

CRM

3 Media

Integration

Integrate with key media and channels.

Review of the media / promotional calendar to determine the optimal

channels to integrate the “mobile call to action”.


Define and segment your audience

• We generally see

three mobile

personas.

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Touch Screeners

Green Thumbs

Straight Talkers

• Think about “skating

toward the puck” –

we’ll see penetration

of smart phones and

adoption of tactics

increase rapidly.


‣ Influenced by trends, i.e., what‟s hot

‣ Heaviest smart phone penetration

‣ Nearly half say making a lot of money is important

‣ 96% more likely to download mobile applications

‣ 105% more likely to receive coupons

‣ 101% more likely to check financial accounts

‣ 103% more likely to scan QR codes

‣ 90% more likely to watch video on their mobile device at least once a day

‣ 45% research products for purchase on their mobile device at least monthly

‣ An average of 25% purchase products using mobile devices at least monthly. Likely to be low-involvement purchases, e.g., music, books, etc.

Group 1: Touch Screeners

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18 – 34, Gen X and Y, Small kids


‣ Moms tend to shift their online habits to mobile habits, due to time constraints and flexibility

‣ Spends majority of spare time with family. 90% say that family is most important in their life

‣ 62% access the mobile internet on a monthly basis

‣ 45% More likely to receive coupons

‣ 31% More likely to enter a contest/sweepstakes via SMS

‣ 27% More likely to send/receive personal email from their phones several times per day

‣ Love mobile gaming


‣ An average of 17% purchase products using mobile devices at least monthly. Likely to be low-involvement purchases, e.g., music, books, etc.

Group 2: Green Thumbs

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24 - 44, Gen X and Y, Small kids


‣ Remarkably average group, with few motivations. Distinctly different than Green Thumbs

‣ Spends majority of spare time with family. 88% say that family is most important in their life

‣ This group will advance the most over the next 12 months due to phone upgrades

‣ 14% More likely to access mobile web on a monthly basis

‣ 11% More likely to receive coupons

‣ 13% More likely to enter a contest/sweepstakes via SMS

‣ 21% More likely to send/receive text several times per day

‣ More mobile phones and connected devices in the household now. 240% more likely to 5 or more in household


‣ An average of 14% purchase products using mobile devices at least monthly. Likely to be low-involvement

35 - 54, Gen X and Boomers w/Teenage Kids

Group 3: Straight Talkers

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SMS Voice Mobile

Web Social

Mobile

Email

Mobile

Search Apps Games

Display

Advtg.

Scannable

Codes MMS

Touch

Screeners

(Age 18-31, no

kids)

Green Thumbs

(Age 25-44

w/small kids)

Straight Talkers

(Age 35-54

w/teenage kids)

Mass market tactics Niche market tactics

Heat Map: Legend

High

Medium

Low

Align marketing tactics for maximum effectiveness and ROI.

Mobile tactics heat map based on personas

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New customer ops-in to mobile program & receives a welcome message with a unique redemption code

Start to determine customer value - High, Med, Low based on redemption results & “control groups”

Survey all members with an offer – SMS or mobile landing page

Urgency reminder message to non responders “control group”

Thank you message with offer

1. High 2. Medium 3. Low

Day 1

Day 5

1. Redeemed codes: Send new offer with unique code

2. Non-redeemed codes: Send reminder message “about to expire”

Day 12

Mobile survey to establish preference - drive to Rewards preference center

Day 20

Establish new tactics and offers based on preference & behaviors of rewards and non rewards members

Day 13

Day 25

Day 30

NEXT PHASE

Example of a Text Messaging Touch Stream

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Customer Contact Stream

Customer Database

1 New customer record

created or existing

customer record is

appended with mobile

number 2

Match redemption code to

customer record and build

customer profile

Change message content

and cadence based on

redemption activity

3 Further define target

segments by establishing

high value groups for both

Rewards and non-rewards

members

Message based on group

and preference

4 While running overall opt-in

group message program

begin executing new

mobile marketing tactics

and offers resulting in

additional data attributes

and data capture.

Determine response and

engagement rates.


• Non-integrated data

• Data often sits in many

databases - with the mobile

providers

• No standard approach for

data capture or

measurement

• Data can be “thrown away”

or “forgotten” when

campaign expires

Mobile Data Capture

Connecting mobile data to the CRM

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• Integrate data through

disposition files or

feeds

• Aggregates data from

multiple mobile

sources into one

database

• Enables multi-channel

reporting

• Mobile segmentation

may start here

Mobile

Database

Mobile Database

• Integrated through one data

feed.

• Forwards multi-channel

mobile data to Customer

Database

• Results in multi-channel

segmentation and analytics

• Example: Coordinated

direct marketing among

Email, Mobile, Web

channels

Customer

Database

Connected CRM


• Reverse Append Opportunities

• Wireless Carrier Subscriber Data

• WWW / Mobile Internet Usage Behavior

• Demographic and Profiling Data

• Location Driven Marketing

• Push Marketing Notifications

• Optimize Offline Media Spend

• Improve Acquisition Funnel

• Permission Based Targeting - Likes and Dislikes

• Mobile Phone Number

• Phone Type & Carrier

• Location

• Usage Behavior

• Interactive Advertising

• Direct Mail Open Rate

• Segmentation

Text Messaging

• Organic growth of mobile alert groups lists through opt-in

Mobile Internet Site

• Enables mobile optimized search and brand presentation

Downloadable App

• “Table stakes” for the smartphone audience

QR Codes

• Gives legs to traditional media such as print, direct mail, etc.

Preference Center

• Enables the consumer to share preferences and enables early stage targeting

Important Mobile

Data Capture Key Tactics Overlay Mobile Data to

Develop Customer Profile

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Building the customer profile

35


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Case Studies


The K&G Mobile Rewards

program increases visits and

revenue.

• Matt Stringer, VP Marketing

needed a mobile marketing

program to drive customers to

the store

• Through strategy and planning,

Merkle determined that text

messaging would be the best

way to reach and engage

consumers

• We launched the K&G Mobile

Rewards program Current Instant Win Program

Text SAVE to 79999 In Store “How to Flyer”

37


Mobile Program Results from 2011

Start Date: February 2011

Stores: 107

Mobile List Growth

Weekly: 4,000+

Total Members: 180,000+

Mobile Coupon

Redemption Rate: 94%

Mobile Opt-in,

Annual Value: $108.19

Year 1 Gross

Revenue: $18,536,000

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Mobile is now a key pillar in

the marketing plan

• Mobile is the only way to

reach over 100,000 K&G

Rewards customers

• 40% of Rewards customers

joined the mobile program

• Mobile Rewards customers

are worth at least $30.00

more per year in

incremental revenue

• Overall, 66% are existing

customers, 33% are net

new customers


Text Message Opt in Experience

and Trackable Redemption Code

Offers and Response Rates

$5.00 off 94%

20% off purchase 45%

30% off regular price 20%

$20 off purchases of $100 1%

15% off purchases of $150 or more 0.01%

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1 K&G Mobile Rewards

Program Call to Action

Consumer Redeems

at the Point of Sale 2 3


The LB MSG ME mobile program is a key

pillar of the marketing strategy, driving

significant revenue at the store.

• A key pillar of the media mix and

integrated with all offline and online

marketing pillars

• Over 360,000 active mobile opt-ins with a

less than 3% opt out rate

• 2011 revenue goal beat by 49% for over

$49.5M in mobile revenue

• Mobile drives “instant foot traffic at the

stores”

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Solution:

• Mobile Marketing Strategy, Personas,

Media Integration Planning, Mobile CRM

• Managed Service Campaign Execution,

Management and Reporting

• SMS, Mobile Internet, Mobile Preference

Center, Scannable Codes, Sweepstakes

• Store level segmentation and tracking

Mobile Program Results from May „11

Start /End Date: May 9, 2011/May 24, 2011

Stores: 650

Daily SMS List

Growth: More than 5,813 new opt-ins

each Day

Total Members: 100,000+

Mobile Coupons

Sales: $7.2 million

Facebook app tab –

mobile alert signup

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Tips for Marketers


Tips for marketers

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1 Make sure the four pillars are in place: Successful mobile

marketing strategies include strategy, media integration

2 Integrate mobile with offline & online: It works well when

integrated with other channels.

3 Begin with a connected CRM approach: Connected CRM

results in segmentation, targeting and deeper engagement.

4 Invest in the right mobile marketing tactics: Implement tactics

based on your target audience for maximum effectiveness

5 Work with a scalable partner: A good partner will help you

sensibly evolve mobile, while observing consumer privacy policies


Roundtable Questions

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•Discuss your Mobile IQ…

•Should mobile be treated as a media, channel or both?

•Where should mobile sit within your organization?

Marketing or CRM?


Chris Wayman

VP GM Mobile

561-350-3181

[email protected]

mobile - merkle inc. · successful mobile programs tie directly to marketing objectives. review of...

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