Location, Context and Behavior:How Location-Based Mobile Marketing Increases Relevance for           Consumers, Effectiven...
#MobiU2011, @twitterhandle @companyTopics for today•   Location: The New Context    o   How we used to use location    o  ...
#MobiU2011, @twitterhandle @companyLocation: Always a Key Driver of Marketing Effectiveness•   DMA, MSO, ZIP Code,    Cens...
#MobiU2011, @twitterhandle @companyLocation is the New Context  “Mobile represents one of the most rapid cases of  consume...
#MobiU2011, @twitterhandle @companyWhere consumers are is predictive ofwhat they will do•   Reach consumers in the moment:...
#MobiU2011, @twitterhandle @company  $1 trillion dollars of offline retail sales per year influenced  by digital marketing...
#MobiU2011, @twitterhandle @companyHarris Poll:Consumers value text messaging more than other phone activities• Men more l...
#MobiU2011, @twitterhandle @companyHarris Poll:Consumer Of All Ages Are Interested In Mobile Offers                       ...
Harris Poll:                                                             #MobiU2011, @twitterhandle @companyConsumers Want...
#MobiU2011, @twitterhandle @companyWhat are geofences?Geō-fence noun : a field around any location set to trigger a person...
#MobiU2011, @twitterhandle @companyWhat We’re Learning   From pilot, specific brand   programs and carrier programs, US   ...
#MobiU2011, @twitterhandle @companyWhat We Know from All ProgramsLocation based text marketing can:•   Impact brand awaren...
#MobiU2011, @twitterhandle @companyKey Insights for Retail Brands1.   Texts have most immediate impact on lower     consid...
#MobiU2011, @twitterhandle @company     Results for Individual     US Retail Brand Programs                               ...
#MobiU2011, @twitterhandle @companyKey Insights for Carrier ProgramsSuccess of the program depends on:1.   Acquisition-ori...
#MobiU2011, @twitterhandle @company Results for International Carrier                                                     ...
#MobiU2011, @twitterhandle @companyInternational carrier has an 83%somewhat to very positive rating                       ...
#MobiU2011, @twitterhandle @companyMessaging    Different approaches for different    strategies
#MobiU2011, @twitterhandle @companyObjective/Messaging Examples • Weapon for “Burger Wars”            • Reach them at thei...
#MobiU2011, @twitterhandle @companyWhat We’re Learning: Messaging•   Consumers want location-based text messages to feel d...
#MobiU2011, @twitterhandle @companyStrong Messaging Examples From Carrier AndIndividual Brand Messaging•   Urgency:     • ...
#MobiU2011, @twitterhandle @companyFinding Your Location Relevance:Location-based Messaging Strategies To Consider •   Geo...
#MobiU2011, @twitterhandle @companyResults from carrier program byproduct category
#MobiU2011, @twitterhandle @companyCarrier Messages Increased LikelihoodTo Visit By Nearly 50%                            ...
#MobiU2011, @twitterhandle @companyOver 50% Did Visit Post Receipt                                              After rece...
#MobiU2011, @twitterhandle @companyNearly ¼ On Average Purchased Post Receipt:Purchase Highest For Health & Beauty Product...
#MobiU2011, @twitterhandle @companyMoney-off Discounts Had Greatest Impact OnRedemption; Location/Convenience Cited By Nea...
#MobiU2011, @twitterhandle @companyMessages Had Greatest Purchase Impact On Prior Purchasers, But35% Of Non-regular-purcha...
#MobiU2011, @twitterhandle @companyFor nearly 50%, the retail visit prompted by the text wasunplanned; for 19% text served...
#MobiU2011, @twitterhandle @companyFor A Department Store, Messages Had Multi-ChannelImpact: 45% Visited Website Post Rece...
#MobiU2011, @twitterhandle @companyYou Know Marketing & Your Customers,Use Best Practices•   Keep in mind best practices l...
#MobiU2011, @twitterhandle @companyThe futureAs mobile commerce and payments become widespread…
#MobiU2011, @twitterhandle @companyThe future of mobile marketing – our world view•   Mobile content will be primarily an ...
#MobiU2011, @twitterhandle @companyMobile wallet will close the loop onpromotions driving real-world purchases            ...
Within reach…                                      “I’m hungry…”                                                       Ale...
Thank you!    Alistair Goodman, CEO, Placecastt: 510.502.3596 e: alistair@placecast.net        Presented by the Heartland ...
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MobiU2011 Lecture: STRAT221 Location Behavior Insights - Placecast

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Content is King. Regardless of industry, content is the key to creating relevance with consumers. Whether Retail, CPG, Automotive, Healthcare or Insurance, brands all create and distribute content. How can mobile be used to open more communications? Sam Jemielity has managed content in a myriad of forms, from print to internet to mobile. His experiences will help you understand how to leverage mobile to extend the reach of your message and bring your brand’s content to your consumer anywhere, anytime.

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MobiU2011 Lecture: STRAT221 Location Behavior Insights - Placecast

  1. 1. Location, Context and Behavior:How Location-Based Mobile Marketing Increases Relevance for Consumers, Effectiveness for Marketers Alistair Goodman, CEO, Placecast, @Placecast Event hashtag #MobiU2011 Presented by the Heartland Mobile Council
  2. 2. #MobiU2011, @twitterhandle @companyTopics for today• Location: The New Context o How we used to use location o How location can be used in mobile o What are geofences? How are they used in mobile marketing?• What we’re learning o Key insights by brand specific programs o Key insights by carrier o Messaging and behavior o Emerging best practices• What’s next… o Closing the loop in the mobile payments future
  3. 3. #MobiU2011, @twitterhandle @companyLocation: Always a Key Driver of Marketing Effectiveness• DMA, MSO, ZIP Code, Census Block Group, PRIZM Cluster…• Location targeting has always been a way of increasing marketing effectiveness • Reach of key demography • Reach by key lifestyle attributes• Relatively blunt tools for predicting most likely response
  4. 4. #MobiU2011, @twitterhandle @companyLocation is the New Context “Mobile represents one of the most rapid cases of consumer adoption/behavior change of a medium ever seen...[Consumers now] live in an always-on world of information that is with them in the moment of truth for marketers: the point of purchase. As Matt O’Grady, EVP Media Audience Measurement at Nielsen notes: “the mobile phone may be the last in line that influences before the purchase and it’s possible to know if the consumer is actually in a store.” What Marketers Need to Know about Mobile Metrics August, 2011
  5. 5. #MobiU2011, @twitterhandle @companyWhere consumers are is predictive ofwhat they will do• Reach consumers in the moment: o To Remind them prior to shopping trips of time sensitive offers o On their way to a mall to tell them about new products and promotions o In a store as they are deciding between brands
  6. 6. #MobiU2011, @twitterhandle @company $1 trillion dollars of offline retail sales per year influenced by digital marketing: Now all digital goes mobilehttp://www.businessinsider.com/using-mobile-to-bridge-the-gap-between-online-and-offline-marketing-2011-9
  7. 7. #MobiU2011, @twitterhandle @companyHarris Poll:Consumers value text messaging more than other phone activities• Men more likely to do early adopter activities like purchasing via mobile devices• Relatively low interest in social/location services How important, if at all, is it for you to be able to do each of the following activities on your cell phone/Smartphone? Base: Extremely/Very important 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 40% Text message 39% 42% 25% Access the Internet 20% 30% 14% Search for a retail location 9% 18% 12% Access local information/activities via an… 10% 15% Total 11% Access social networks (e.g., Twitter,… 9% 14% 7% Male Make a purchase 5% 9% Location-based social networking (e.g., … 5% 7% Female 3% n=1719 Source: Placecast The Alert Shopper II, Harris Poll, July 2010
  8. 8. #MobiU2011, @twitterhandle @companyHarris Poll:Consumer Of All Ages Are Interested In Mobile Offers At least Somewhat Interested Base: Cell Phone/Smartphone Owners Total 50% Men 44% 45% 42% Women 40% 40% 35% 30% 29% 30% 30% 26% 25% 21% 20% 20% 16% 17% 14% 15% 10% 5% 0% 18-34 35-44 45-54 55+ n=1719 Placecast The Alert Shopper II, July, 2010 Assuming you gave permission, how interested, if at all, would you be in receiving text alerts about new products, sales and/or promotions from your
  9. 9. Harris Poll: #MobiU2011, @twitterhandle @companyConsumers Want Relevant Mobile Marketing From Retailers Categories of Interest – Location-based Alerts Almost equal interest in restaurants, fast food, travel, health 0% 20% 40% 60% 80% 100% Grocery coupons and promotions National restaurant chain promotions and offers… Entertainment products and availability (e.g., movie… Fast food menu items and promotions Beauty and fashion (e.g., shoes and accessories) Coffee and beverage promotions Electronics product offers and promotions (e.g.,… Travel services, special rates and amenities (e.g., … Health-related offers including gym services and/or… Convenience store products Home furnishings Male Female Infant and child-related products/services/events Bar or nightclub offers and promotions Sporting goods and equipment Other None Placecast The Alert Shopper II, July, 2010
  10. 10. #MobiU2011, @twitterhandle @companyWhat are geofences?Geō-fence noun : a field around any location set to trigger a personalizedmarketing message to a consumer entering or exiting the defined area. How it’s created: • Upload location addresses • Create “Place Profile” Flexibility: • Any location, size or shape • Change based on time of day and day of week Geo-fencing Strategy: • Time-based, event based or contextual • Integrates with other user data
  11. 11. #MobiU2011, @twitterhandle @companyWhat We’re Learning From pilot, specific brand programs and carrier programs, US and overseas
  12. 12. #MobiU2011, @twitterhandle @companyWhat We Know from All ProgramsLocation based text marketing can:• Impact brand awareness• Impact store visitation• Act as a reminder to visit retailer• Drive purchase among both prior and new purchasers• Increase convenience and relevance in the mind of consumers• Be preferred over other forms of promotional marketing• Increase loyalty towards the brand running the program• Generate word of mouth/social media connection
  13. 13. #MobiU2011, @twitterhandle @companyKey Insights for Retail Brands1. Texts have most immediate impact on lower consideration products with many retail outlets More chances to purchase, triggers impulse buying Actions most likely taken in 1 – 3 day time frame2. But texts help to build loyalty, increase awareness of new product intros for higher consideration products Actions take place over longer time frame3. Texts drive multi-channel behavior – be prepared4. Messaging and frequency strategies: Promotions/offers drive highest response Informational messages welcomed as long as location enhances relevance
  14. 14. #MobiU2011, @twitterhandle @company Results for Individual US Retail Brand Programs Average Likelihood to 59% - 87% visit retailer 75% 0% 50% 100% Retail 59% - 90% visitation 73% 0% 50% 100% Purchase 41% - 80% 65% post receipt 50% 0% 100% Appeal of SMS 28% - 61% 48% due to convenience of mobile receipt 0% 50% 100%1
  15. 15. #MobiU2011, @twitterhandle @companyKey Insights for Carrier ProgramsSuccess of the program depends on:1. Acquisition-oriented messaging2. How well promoted it is to the consumer base3. How well the program delivers value to the recipients4. How much control/input consumers are given: Preference centers5. Geo-fencing strategy: Find your location relevance6. Frequency management
  16. 16. #MobiU2011, @twitterhandle @company Results for International Carrier Average Recall 22% - 93% 57% 0% 50% 100% Likelihood to 34% - 58% 46% visit retailer 0% 50% 100% Retail 43% - 67% visitation 53% 0% 50% 100% Purchase 14% - 46% 22% post receipt 0% 50% 100% Intent to Purchase 16% - 29% 17% post receipt 0% 50% 100%Appeal of SMSdue to convenience 16% – 42% 34%of mobile receipt 0% 50% 100% International carrier aggregate results, 8/11
  17. 17. #MobiU2011, @twitterhandle @companyInternational carrier has an 83%somewhat to very positive rating Perception of International Carrier Program 35% 32% 30% 26% 25% 25% 20% 15% 13% 10% 5% 4% 0% Extremely positive: Very positive: Somewhat positive: Neutral: Negative: Would I really liked this This is an effective I like to know about No opinion not use in program way for merchants new product or get future/had little to connect with me discounts value to me Total: 4,288; n= 821 - 1,248
  18. 18. #MobiU2011, @twitterhandle @companyMessaging Different approaches for different strategies
  19. 19. #MobiU2011, @twitterhandle @companyObjective/Messaging Examples • Weapon for “Burger Wars” • Reach them at their passion points • Promote different menu items while hiking, biking and skiing, in throughout the day addition to around stores. • Redemption via discount code • Weather triggers as well Direct Response Experiential • Introduction of Via Ready Brew in • Drive traffic to store and website the UK market • Increase frequency and basket size • Induce trial on premises and • Offer special deals to best purchase at grocery stores customers Storyboarding Loyalty
  20. 20. #MobiU2011, @twitterhandle @companyWhat We’re Learning: Messaging• Consumers want location-based text messages to feel distinct and exclusive to the program• Offers – especially time sensitive offers– tend to trigger highest response• Variation can increase impact• But a solo, strong, message that felt unique also worked well• Location was very important in messaging o Consumers expect relevance and found location to increase it o The more retailers that were tagged, the higher the likelihood to respond but even retailers with solo locations saw substantial response rates
  21. 21. #MobiU2011, @twitterhandle @companyStrong Messaging Examples From Carrier AndIndividual Brand Messaging• Urgency: • 4 hrs only: 50% off mini portable speakers & many more deals! Be sure 2 stop in Sat 4 a chance 2 win a $500 gift card @ur nearest XX store. • XXXXX alerts: Update- $10 coupons start 2day! We’re giving u an xtra day 2 get a $10 coupon for every $50 spent. Offer valid in stores only thru 12/24• Exclusivity & Tone: • Exclusive 2 day offer 4 mobile users! Take 15% off everything excluding furn & rugs thru 11/30. In-store only. Show this msg @ur XX store 2day! • Collect one of 3 limited edition Impulse and Barry M special packs featuring your favourite XXXX fragrances & an exclusive Barry M lipgloss. Worth over £6 and they’re available in stores now for just £3. Get yours from <variable>.• Click through to coupon: • Get $5 OFF any purchase of $50 in the entire store! Shop today and save @375 E Allessandro Blvd. For Coupon: http://bit.ly/mezAJE• Offer codes: • Surprise your Valentine with flowers. Get 10% off all XXXX flowers until 14 Feb. Use code 0747165 online or at the till in store. Terms and Conditions at http://mands.mobi/flr.• Events & Time Sensitivity: • XXXXX alerts: Come by 4 cocktails, Chef Michel Bras, & his new line of kitchen tools 6-8PM on 3/1 @WS Columbus Circle. RSVP at 855-382-0822 by 2/27
  22. 22. #MobiU2011, @twitterhandle @companyFinding Your Location Relevance:Location-based Messaging Strategies To Consider • Geo-Fencing doesn’t just have to be about retail locations, consider: • Events: related to celebrity product lines or endorsements - venues as part of a musicians tour • Points of interest: foodie hotspots as they relate to recipes, classes, and/or cookware at a store; for outdoor apparel, parks and recreation sites, ski slopes • Relevant places: that appeal to target demos/lifestyle (post-work beverage push geo-fenced gyms) • Areas of activity: (skateparks, malls, music venues, etc.) related to youth-centered retailers • Sponsored venues: or sports teams as related to brands • Mom-places: Schools and other areas where moms might be likely to be thinking about errands, dinner recipes, quick take-out meals, etc. • Travel destinations: and popular tourist spots related to outlet-store brands
  23. 23. #MobiU2011, @twitterhandle @companyResults from carrier program byproduct category
  24. 24. #MobiU2011, @twitterhandle @companyCarrier Messages Increased LikelihoodTo Visit By Nearly 50% Likelihood to Visit By Category60% 56% 57% 50%50% 46% 48% 48%40% 36% 33%30%20% 12%10% 6% 8% 1% 0% All Retail Health & Beauty Fast Food Increased Neutral Decreased Total: 3,025; n= 1,247 – 1,778
  25. 25. #MobiU2011, @twitterhandle @companyOver 50% Did Visit Post Receipt After receiving text message, did you visit? By Category60% 54%50% 47% 53% 42%40% 38% 32%30% 24%20% 16% 17% 15%10% 8% 5% 3%0% All Retail Fast Food Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text messageTotalg: 4,019; n= 1,784 – 2,235
  26. 26. #MobiU2011, @twitterhandle @companyNearly ¼ On Average Purchased Post Receipt:Purchase Highest For Health & Beauty Products Which Had StrongCall To Action Did you purchase due to receiving text message? By Category 80% 70% 67% 64% 61% 60% 50% 41% 38% 40% 29% 30% 26% 22% 23% 20% 20% 17% 14% 10% 0% All Health & Beauty Retail Fast Food Total: 4,114; n= 964 – 2,044 Yes No, but I intend to No
  27. 27. #MobiU2011, @twitterhandle @companyMoney-off Discounts Had Greatest Impact OnRedemption; Location/Convenience Cited By Nearly 30% Reason for Redemption By Category The money-off discount 23% It’s a product I wanted/wanted to try 14% I was near a store 15% I wanted to win one of the prizes 10% I was intrigued by the information in the text message 7% There is a holiday coming up that I need to shop for 7% The text mentioned my local store by name / location 6% I saw an ad and it reminded me I needed to shop/buy 6% Because it was convenient to redeem on my mobile 6% Other 5% 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Total: 1,287; n= 343 - 529 All Retail Fast Food Health & Beauty
  28. 28. #MobiU2011, @twitterhandle @companyMessages Had Greatest Purchase Impact On Prior Purchasers, But35% Of Non-regular-purchasers Bought Or Intend To Have you purchased Women’s Personal Care Product yet? Base: Respondents who recall receiving message70% 65% 60%60% 49%50%40% 29% 28%30% 22% 16% 19%20% 12%10%0% Yes No, but I intend to No All Respondents Regularly Purchase Do Not Regularly Purchase All Respondents, n=722 Those who regularly purchase, n=216 Those who do not regularly purchase, n=506
  29. 29. #MobiU2011, @twitterhandle @companyFor nearly 50%, the retail visit prompted by the text wasunplanned; for 19% text served as reminder Was your visit to XXXX store/the XXXX website planned before you received the text message? Base: Respondents who recall receiving text message 60% 49% 50% 40% 30% 19% 19% 20% 14% 10% 0% Yes, my visit was already Yes, my visit was already No, my visit was n/a – I did not visit a planned. planned but the text unplanned. store/website after the reminded me. text message was n= 960 received.
  30. 30. #MobiU2011, @twitterhandle @companyFor A Department Store, Messages Had Multi-ChannelImpact: 45% Visited Website Post Receipt After receiving an XXXX message about XXXXXXX, did you visit their website? Base: Respondents who recall receiving text message 60% 54% 45% 50% 40% 30% 24% 20% 16% 10% 5% 0% Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text n= 960 message
  31. 31. #MobiU2011, @twitterhandle @companyYou Know Marketing & Your Customers,Use Best Practices• Keep in mind best practices learned through years of DR, email and CRM: o Develop tone that fits the brand and the product and makes it sound distinctive o Be careful of message burn-out, frequency o Make it simple to follow up on/redeem o Create a sense of urgency: Have a direct call to action/specific time/date if this is a promotional message o Give them something to click through to
  32. 32. #MobiU2011, @twitterhandle @companyThe futureAs mobile commerce and payments become widespread…
  33. 33. #MobiU2011, @twitterhandle @companyThe future of mobile marketing – our world view• Mobile content will be primarily an advertiser supported medium• Mobile advertising currently based on search and display web paradigm… but this is not necessarily the end game• Apps are problematic: need to be dowloaded, GPS only available when app is on, and inventory is fragmented• Not about “ads” in the traditional sense, but “offers” that are actionable in the real world o Opt-in o Location-based o Personalized o Transactible at POS or via credit cards o Today priced per-campaign or delivery, eventually will be performance-based
  34. 34. #MobiU2011, @twitterhandle @companyMobile wallet will close the loop onpromotions driving real-world purchases Mine CRM/Purchase Data Credit Cards Purchase data & Mobile Wallets fed back to Promo Email CRM Daily Deal Sites Consumer Opt-in to buys at White-label Merchant ShopAlerts Phone # + Consumer Gets Preferences Carriers w/ Billing Custom Offer tied to account For marketers, this allows for optimization of mobile promotions with back-end conversion metrics based on CPA
  35. 35. Within reach… “I’m hungry…” Alerts for Nearby Offers from Favorite Brands Check-in & Fun Instant Deals Friends Nearby… Dinner? Search for NearbyLocations & Review Pay with your phone (All available through the lens of my camera phone) © 1020 Inc., Proprietary and Confidential, 2010
  36. 36. Thank you! Alistair Goodman, CEO, Placecastt: 510.502.3596 e: alistair@placecast.net Presented by the Heartland Mobile Council

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