Chris Silva, GSMI Mobile Marketing Strategies Keynote, 2011

1 Creating An App For That: Choosing Your Mobile StrategyMobile Marketing Strategies SummitDecember 7, 2011Chris SilvaIndustry Analyst, Mobile

3 The cost, technology and utility of smartphones drives their majority among mobile phones. The average Android device owner spends nearly 1.5 hours daily actively interacting with their handset.© 2011 Altimeter Group

5 Barriers To Mobile Adoption Come Crashing Down $.08 $.14 Effective cost/MB Effective cost/MB Q1, 2011* Q1, 2010* 1+GHz processor, 512MHz processor, dual core single core§* Source: Nielsen** Source: Gartner*** Source: Pyramid Research© 2011 Altimeter Group

6 Barriers To Mobile Adoption Come Crashing Down $.08 $.14 Effective cost/MB Effective cost/MB Q1, 2011* Q1, 2010* 1+GHz processor, 512MHz processor, dual core single core§ 172M 1.5B Forecast Smartphone units smartphone sales, sold, 2009** 2011**** Source: Nielsen** Source: Gartner*** Source: Pyramid Research© 2011 Altimeter Group

10 Shoppers Plan to Use Smartphones Holiday will be a big test for mobile strategy as device dependency increases Compare Prices to Locate Stores, Products and 55% Will use GPS/location features on some/most shopping trips 47% Will use smartphones to compare prices Almost half of holiday shoppers in 2011 will be 42% looking for last minute stores and giftsnearest store Will search for via mobile, basedyoucurrent location will on be there? Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011 23 (Q23a). In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?© 2011 Altimeter Group

12 Mobile Strategy Takes One Of Three Paths • Target: Buyers • Goal: Drive revenue and transactions Enrich • KPIs: Registered Users, Average Purchase • Target: Shoppers, New Contacts Engage • Goal: Drive brand affinity, consideration • KPIs: Engagement, amplification, goodwill • Target: Internal constituents and trusted partners Entrust • Goal: Secure use of information on mobile • KPIs: Productivity gains relative to function© 2011 Altimeter Group

17 Enrichment done right, over 3M have paid with Starbucks mobile app The mobile card program was tested in 2009, and found to be the fastest way for customers to pay. It’s available at 9000 stores. Customers purchase credit via PayPal or credit card.© 2011 Altimeter Group

19 Complexity of task increases complexity of rollout, deepens ROI Taking data like credit card info from the field introduces more complexity and security requirements for the mobile device, how it is managed and how information is transacted.© 2011 Altimeter Group

26 Engagement done right: North Face utility app Snow Report (and Trailhead) engage with its target Snow Report users view weather and snow updates, as well as tweets from and about their favorite resorts.© 2011 Altimeter Group

27 Engagement done wrong: Longhorn Steakhouse puts customers behind the grill, but not in the restaurant… Users can flip a steak to their desired temperature, and hear it sizzle! … but they won’t find restaurant locations, links to the company website, menus, Q&A, contact us, etc.© 2011 Altimeter Group

29 3 Paths To Mobile Strategy, WhichPlan Yours? Smartphone and Tablet Shoppers Are to Download Shopping Apps This Year 52% 42% of Tablet users are Very/Extremely Likely of Mobile Device users are Very/Extremely to DL a shopping App this year Likely to DL a shopping App this year Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011 Base: Likely to use tablet/smartphone for Holiday Shopping (n= 599 ) (Q25). And, how likely are you to download or use an “app” (application) to do your Holiday Shopping this Season? 25© 2011 Altimeter Group

31 What is the endgame?  Choose the path you’re seeking to engage with customers – enrich or engage • Develop a go-to-market based around user interaction and addressing user pain; • Develop metrics that match those interaction/pain points, number of downloads is irrelevant; • Understand the areas of impact for your business, establish a baseline and look at app-unique behaviors.  Iterate and expand • iOS, while popular, is not the only game in town by far • Cross-disciplinary teams make winning strategies© 2011 Altimeter Group

32 Upcoming research: Altimeter app scorecard Category Sub Elements Potential Score Ranking* Application Platform and 35 points Average device support, Features localization, score: 9.06 inbound media, multimedia, social Application Future feature 25 points Average support, future Strategy platform support, score: 6.05 application development iteration Application Registered users, 15 points Average net new revenue, Impact cost of score: development N/A * Averages reflect some incomplete information due to NDA© 2011 Altimeter Group

33 Upcoming research Santa’s Little Helpers: Mobile Retail Strategy For Holiday 2011 Publishing December, 2011 Entrust: Finding Partners For B2B Mobile Success Publishing March, 2012© 2011 Altimeter Group

34THANK YOUChris SilvaIndustry Analyst, Mobilecsilva@altimetergroup.commakemobilework.comTwitter: 802dotchris Get my research on my blog:

35ABOUT USAltimeter Group is a research-based advisory firm that helpscompanies and industries leverage disruption to their advantage.Visit us at http://www.altimetergroup.com or contactinfo@altimetergroup.com.

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Chris Silva, GSMI Mobile Marketing Strategies Keynote, 2011

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