Mobile Marketing:
How to Optimize the Newest, Most Ubiquitous Channel
in Financial Services
June 3, 2009

Over 4 billion mobile users today
More than PC owners
More than credit card owners

Greater speed
Global 3G Penetration
multiplies use and
is 7% and Growing
innovation

The U.S. Is Beginning To Lead In Mobile
50 million mobile
subscribers access the
Web monthly (18%)
Smartphone use doubled
from 7% to 14% in 2008
37% of handsets now
have 3G
Nielsen Global Online Media Landscape 2009

Habits and Practices

Mobile Device Is a Personal Lifeline
Everything we love about
Broadband/PC…
Made to fit our on-the-go
lifestyles
Raise your hand if you
spend more time away
from your desk than at it

Leading Indicator:
Most Chinese mobile users sleep
within 1 meter of their phones.

Mobile Fits Our ―Snacking‖ Culture
Check Email
Update Facebook Status
Send an SMS
Browse Photos
Check Bill Payments

The iPhone Is Unlocking the Potential of Mobile
Adoption is powered by a
vast advertising campaign.
Have you seen ads for
Google Android?
…For Symbian?

The iPhone Is Unlocking the Potential of Mobile
The App Store makes it
easy to install and
distribute useful services.
1 Billion downloads in less
than 9 months

Innovation Continues with OS 3.0 in Summer ’09
+100 New Features
+1,000 New APIs
Examples:
- In-app purchases
- Transaction alerts without app
launch

iPhone Is Achieving Critical Mass

iPhone Users Are Much More ―Engaged‖
4 times more likely to
use mobile Internet
6 times more likely to
use mobile applications
6 times more likely to
watch mobile video
Nielsen Global Online Media Landscape 2009

iPhone Is Following the iPod Success Model
1. Very strong product
2. Trusted, loved brand
3. Winning online ―store‖
4. Continual innovation
and improvement
iPod still has a 70% share
Choose the iPhone for your best apps

Winning in Mobile Through
Meaningful Marketing

Traditional Banner Approaches Won’t Work
Banners are ignored when
people are actively
searching for information.
Screen size is too small for
strong branding impact.

Mobile Marketing Faces a Wary Consumer
Mobile is the ―least trusted‖
form of advertising.
The most active users want
ads the least.
• Only 10% respond to mobile ads.
• 79% did not see ads.
• 67% found it unacceptable to have
ads on their mobile device.
Source: Nielsen

Mobile Ad Interruption Will Not Be Tolerated
The dream of mobile ad alerts is
DOA.
72% of Americans have registered
on the Federal Do-Not-Call List.
Service providers fear losing
$50/month customers in exchange
for pennies per ad unit.

Digital Has Created the ―Selfish Consumer‖

Customer Expectations Are Rising
Everywhere
Your Competitive Set Just Got a Lot
Bigger

Customer Expectations Are Rising in Digital
FedEx Tracks Your Package …
So Domino’s Must Track Your Pizza

Customer Expectations Are Rising in Digital
Facebook Alerts Me with Updates …
So Delta Had Better, Too

Mobile Enables Value-Added Marketing
Marketing itself can deliver
on customer needs.
Useful apps are marketing
that consumers choose to
engage with.
And they might even make
$.99 each.

Option 1: Information Resource
For brands that are more about solving an unmet need
May be an integration of marketing, product/service and
customer relations

Charmin: Sit or Squat

REI: Snow and Ski Report

HP: Wireless Printing

Option 2: Entertaining Experience
For brands that are about lifestyle and personal
identification
Special opportunity to link like-minded people in social
networks

Chanel: Fashion Preview

Coke: Spin the Bottle

Zippo: Virtual Lighter

A Simple Strategy Model that Enables
Mobile Success

Strategic Framework

Business Objective
Focus on single trigger for
business growth.
Often useful to start with the
Purchase Funnel.
Must be measurable.
Examples:
• Improve closure rate on new account
applications.
• Increase number and percentage of
customers using online bill pay.

Customer Insight
Single, focused piece of information
about your Target, tied to the Business
Objective
Can come from historic data or new
research
Best are surprising and lead to initial
ideas
Examples:
• Smartphone users spend less than 5
minutes online per session.
• People who write down how they will use a
new product are 50% more likely to do so.

Marketing Strategy
Your choice of the action you
will take to leverage the Insight
to deliver on the Business
Objective
Typically distinctive from the
competition
Examples:
• Nike: create innovative services that
allow runners to get more from their
workouts (Nike+).
• Hyundai: Offer an ―insurance policy‖
for car buyers who are worried about
losing their jobs.

Concept Development and Execution
Where your creative partners
translate these choices into
customer-facing work
Make sure to stick to the Brief
(Objectives/Insight/Strategy)
Multiple stages and
opportunities for feedback from
customers, your management
and other stakeholders

Measure Results
Should be fully funded and planned in
from the beginning
Measure Meaning
• Are people choosing to engage?
• Do people value the time spent?
• Are they recommending to others?
Measure Marketing
• Is this delivering on the Business Objective
you started with?

Examples of Mobile Marketing
Approaches
Source of Examples: iMedia Breakthrough Conference March 2009

Kraft: Business Objective
Increase brand penetration and share among new
consumer groups.

Kraft: Customer Insight
Younger consumers
are spending less time
in ―traditional‖ online
environments.

Kraft: Marketing Strategy
iFood Assistant:
Delicious food at your fingertips—anytime, anywhere
• Mobile is more useful when shopping for ingredients and
when reading recipes in the kitchen.
• Leverage vast amount of existing cooking content on
Kraftfoods.com.
• Chance to break-through on an emerging iPhone platform

Kraft: Measuring Results
Met 3-year download goal in a matter of weeks
Millions of dollars in PR coverage for Kraft
Over-represented with Gen-Y and Men
$.99 charge actually improves the value impression

CoverGirl: Business Objective
Improve Trial with a younger audience.

CoverGirl: Customer Insight
Women are highly
engaged in beauty-
focused
magazines….often
actively searching for
new products and
samples.

CoverGirl: Marketing Strategy
Allow women to “text to sample” products
• Younger consumers are much more likely to act on
the offer.
• Significantly lower cost than including physical
samples – both in shipping and waste.
• ―While supplies last‖ adds some motivation to act
now and understanding that not everyone will receive
a sample.

CoverGirl: Measuring Results
• Sample supplies are typically exhausted just days after
the magazines hit stores.
• Driving traffic to a ―color match‖ tool, another example of
meaningful marketing.
• Mobile ―is no longer innovation…it’s just part of the
traditional advertising program for us.‖

―Attracting and retaining customers is no
longer just about what banks offer, but
how they offer it.‖
Conrad Lisco, Mobility Planning Director, 5th Finger
At minimum, this is online banking all
over again

Mobile Banking Is Now Relevant and Growing
3.1 million mobile banking
households in U.S. in 2008
Up from 400,000 in 2007
7 million predicted for 2009
80 million in North America
in 2014
Berg Institute 2009

Mobile Bankers Can Be More Profitable
150% of profits are derived from just 20% of customers.
Banking Strategies
Only 40% of a retail bank’s customers are
profitable, contributing approximately 300% of the value.
Council on Financial Competition

Mobile Banking Is Another Sticky Service
Great service and
inconvenience of moving
business elsewhere
Following the pattern of:
• Direct deposit
• Online bill pay
• Reward programs

This Is How Your Next Customer Does Business
Younger households own
neither landlines nor
watches.
Lack of mobile service is a
clear, negative differentiator.
Meet their expectations or
lose the entry point for a
lifetime relationship.

Three Approaches for Mobile Financial
Services

1. Cover the Basics

Cover the Basics:
Meeting Customers’ Expectations
Whatever financial service you provide, it should be
accessible via mobile.
At minimum, this is a cost-reduction measure.
• 50% of all calls to bank customer service centers are from mobile
phones, and will rise to 70% by 2010 (Celent)
• Many calls are simple balance requests.
Trade-off in favor of broad mobile access (SMS > iPhone)

Cover the Basics:
Meeting Customers’ Expectations
Information Services Account Access
• Use ATM and branch • Check balances and
finder transactions
• Click to call for customer • Pay bills
service • Transfer funds

Cover the Basics: Bank of America
Relaunched mobile banking
platform in late 2007
Software for
iPhone, Android, BlackBerry and
Windows Mobile
Services:
• Check balance
• View transactions
• Transfer money
• Pay bills

Cover the Basics: Bank of America
1.9 million users by Jan 2009
• 100,000 users on peak days
• Up from 1 million in June 2008
• Roughly 50% share of all mobile banking
• Compare to 29 million online banking customers
80% are reviewing balance and transactions; 40% transfer money or
pay bills
40% use iPhone or iPod Touch (174 index vs. market share)
Driving new business: 8% to 10% signed up for mobile service in the
first 90 days of opening an account

Cover the Basics: E*Trade Mobile Pro
Complete view of
accounts, stock and options
trading, streaming quotes and
money transfers
Available on both iPhone and
BlackBerry
#1 download on iPhone Finance
App list

Cover the Basics: MasterCard ATM Hunter
Launched April 2009
Uses GPS to automatically
calculate location
Filter by:
• Surcharge-free
• Drive-thru
• Wheelchair access
• Deposit sharing

2. Provide Added Services

―A major thing that banks need to have been
doing all along is providing more value to
customers about how they manage their money
and financial lives and not simply offering them
checking and savings accounts.‖
Ron Shevlin, Senior Analyst, Aite Group LLC

Provide Added Services:
Go to Higher-Level Benefits
Go beyond your basic financial services and offer something more
to your customers.
By offering value-added services, you forge a stronger, more
relevant relationship with customers.
It is possible to create from scratch or license/sponsor from others.
In this economy, people are actively looking for help in managing
their money.
The best applications just might get free advertising….

Provide Added Services: Wesabe
iPhone app tracks deposits and
purchases through all bank,
investment and credit card
accounts.
Create graphs of spending, show
progress against monthly targets.
Offering a white-label version:
• Everything on the current Wesabe platform
• Opportunity to add ATM finder and mobile
account access

Provide Added Services: Wesabe
iPhone app tracks deposits and
purchases through all
bank, investment and credit card
accounts ―We think that financial
institutions will be able to provide
Create a better experience than Wesabe
graphs of spending, show
progress against provide targets own.‖
can monthly on our
Marck Hedlund, Wesabe Co-Founder and CEO
Offering a white-label version:
• Everything on the current Wesabe platform
• Opportunity to add ATM finder and mobile
account access

Provide Added Services: Local Sports App
Many banks tie to sports teams for
local community focus.
Often includes stadium ATMs and
branded debit card
Create an iPhone app that features
the local team.
• News, highlights and schedule
• Include ATM finder and marketing
messages
• Ask tellers to invite iPhone users to
download application

3. Lead the Way

Lead the Way:
Innovation That Drives Attention
Doing what no one has done before—at least in financial
services
Draws high word-of-mouth and free PR coverage
Helps establish the brand as a leader in the market
Usually focused on using the most cutting-edge features of
a single platform

ING Ultra-ATM Finder

Enabling the Mobile Wallet

For More Information:
Text ―mktgwithmeaning‖ to 50500
Bob Gilbreath
Chief Marketing Strategist
Bridge Worldwide
b.gilbreath@bridgeworldwide.com
www.bridgeworldwide.com
www.marketingwithmeaning.com
@mktgwithmeaning.com