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Mobile Marketer Guide to m-Commerce November 2012


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  • 1. CONTENTSPAGE PAGE3 INTRODUCTION 36 Case studies on mobile campaigns and programs Mobile commerce set to blaze new trails during retail sites By Mickey Alam Khan By Lauren Johnson4 The state of mobile commerce 39 Mobile coupons: The tipping point of By Rimma Kats mobile commerce By Shuli Lowy7 How to create a mobile commerce site By Rimma Kats 41 The allure of mobile coupons By Rimma Kats10 Unique marketing opportunities with SMS By Colleen Petitt 42 Mobile coupons: A little less conversation, a little more action12 Creating a mobile CRM program with SMS By Jeffrey Sampson By Chantal Tode 44 What types of coupons work best for15 Using SMS and short code marketing to drive mobile commerce? traffic to retail locations By Lauren Johnson By Rimma Kats 46 Case studies on mobile coupon programs17 Increase ROI with measurable results By Chantal Tode By Robin Eyre 48 Proximity and presence in retail mobile18 The case for mobile commerce marketing: three consumer benefits By Chantal Tode By Jack Philbin20 3 tips for using mobile direct display advertising 50 How to make a mobile commerce site transactional By Dave Lawson By Lauren Johnson22 Increase engagement, sales and loyalty with 51 Billing options on a mobile commerce site mobile rich media By Chantal Tode By Matevž Klanjšek 53 How secure are mobile commerce transactions?24 Do retailers get mobile commerce? By Chantal Tode By Lauren Johnson 55 The role of wireless carriers in mobile commerce26 How to create a mobile commerce application By Chantal Tode By Lauren Johnson 57 Research on mobile commerce28 Will simply repurposing the ecommerce site work? By Lauren Johnson By Lauren Johnson 59 Mobile commerce in a multichannel environment30 The effect of HTML5 on mobile strategy By Lauren Johnson By Chantal Tode 61 Legal developments affecting mobile commerce32 5 in-app metrics you are not measuring, but By Michael B. Hazzard and Jason A. Koslofsky should be By Raj Aggarwal 63 The legal do’s and don’ts of mobile commerce By Chantal Tode34 Own the in-store customer experience via location-aware branded app 65 Mobile commerce: Your customers are demanding it By Dan Lowden By Jared FriedmanPAGE 2 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 2. INTRODUCTIONMobile commerce set to blaze new trailsM obile commerce is the one mobile channel on fire. As re- tailers are learning – to their chagrin or delight – mobilecan be their best friend, worst enemy or, as many view it, as timized shopping experience on mobile. Smartphones are already playing a critical role in driving traffic to retail stores, in addition to threatening the viability of bricks-and-mortar operations withthe frenemy. the new showrooming phenomenon where consumers research in stores on their phones only to buy elsewhere for cheaper – Amazon.But those reservations do not matter. What is indisputable is thatmobile is the future of retail. Savvy retailers are ahead of their Tablets, on the other hand, are now stealing share from laptop-customers, offering shopper-friendly mobile sites, applications, and PC-based ecommerce, making shopping more enjoyable andSMS- and email-based loyalty programs, coupons, QR codes and appealing. Many retailers now claim that tablet commerce is ontargeted, geo-fenced mobile advertisements and integration into its way to becoming the dominant mobile revenue channel.Apple and Google’s loyalty and commerce initiatives. Covering groundShow grooming Please read this guide from page to page, and pass along the linkMobile commerce is expected to account for 20 percent of online to colleagues and clients. Included in this edition are insightssales in 2012, according to IBM. But that is just the beginning. from some of the smartest minds in mobile commerce. We thankAs consumers get more comfortable shopping on smartphones them for their contribution, time and effort.and tablets, overcoming issues such as unfamiliarity and securityfears, they will take to mobile commerce at an even faster adop- Also, many thanks to our advertisers OpenMarket, Appcelerator,tion rate than ecommerce. Sadly, not all retailers understand the Fiksu and SiteMinis. Their work for clients has helped shape smartspeed of adoption that they can expect from consumers, nor the mobile commerce strategy and tactics. Finally, a big thank-youheightened expectation levels from their target audience. to associate editor Rimma Kats for her art direction, editing and reporting, as well as associate editor Chantal Tode and associateWhat this Classic Guide to Mobile Commerce does is pro- reporter Lauren Johnson for their reports. Ad sales director Jodievide how-to advice, pointers and best-practice tips on how Solomon’s contribution is also much valued, as is content assis-to get a retailer started in mobile commerce. It is also use- tant Kristina Mayne’s help.ful for retail executives who are already including mobilein the mix to evaluate how they stack up with best practice. The Mobile Marketer/Mobile Commerce Daily team has worked hard to maintain the standards expected of them and the publi-Mobile must not be viewed as merely yet another technology. cations. We hope this Classic Guide will help retailers interestedInstead, it is to be respected for what it has done to consumers: in mobile commerce set new standards as well.liberated them from time and space constraints associated withsearching, shopping and buying. It is not technology that is mo-bile, it is the consumer.Indeed, given the state of the economy and the increasingly fin- Mickey Alam Khanicky nature of consumers, retailers have little time to offer an op- Mickey Alam Khan Rimma Kats Jodie Solomon 401 Broadway, Suite 1408 Editor in Chief Associate Editor Director, Ad Sales New York, NY 10013 mickey@ rimma@ ads@ Tel: 212-334-6305 Fax: 212-334-6339 Email: Website: Chantal Tode Lauren Johnson Kristina Mayne For newsletter subscriptions: Associate Editor Associate Reporter Content Assistant chantal@ lauren@ kristina@ newsletter For advertising: advertise For reprints: reprints@mobilecommercedaily.comMobile Commerce Daily covers news and analysis of mobile, retail and commerce. The Napean franchise comprises Mobile Marketer,, the Mobile Marketer Dailynewsletter,,,, the Mobile Commerce Daily newsletter,, Classic Guides,webinars, Mobile FirstLook, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2012 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.PAGE 3 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 3. The state of mobile commerceBy Rimma KatsT he mobile commerce space is growing at an Marketers tend to be fearful and cautious about mobile. exponential rate and with new technologies such as NFC and augmented reality being incorporated However, it is important that marketers test and try outinto marketing strategies, there is no doubt the industry new mediums.will take bigger leaps next year. Marketers need to understand mobile consumer behaviorCompanies such as eBay and Starbucks have seen success and the best way to do this is to link a mobile marketingwith mobile and are increasingly looking at new ways to campaign with mobile commerce conversion consumer interaction. “The sky is the limit,” Mr. Kerr said. “As social commerceMarketers are beginning to incorporate different struggled to find itself, mcommerce will keep mediums into their strategies, rather than solelyusing one. “As connections speeds increase generally and more retailers deliver a user-friendly mobile site, mobile“A mobile commerce site is no longer a nice-to-have,”said Wilson Kerr, vice president of business developmentand sales at Unbound Commerce. “For any online retailer,integrated mcommerce is now a must-have.“Apple alone has sold almost 220 million iPhones andover 50 percent of Americans now own a connectedsmartphone,” he said. “Mobile commerce is expectedto hit $20 billion this year, up almost 65 percentfrom 2011.“EBay expects to see its mobile commerce grow from $5billion to $8 billion, without any impact to ecommerce.Yet, despite these insane numbers, only about 30 percentof top 500 online retailers have a mobile site.”Driving innovationMobile commerce is here to stay and growing fast.According to Mr. Kerr, smart retailers will not viewa mobile site as a mirrored, smaller version of theirWeb site.“The fact is that mobile consumers behave differentlythan online shoppers,” Mr. Kerr said. “They buy more,faster and can use mobile to find retail locations.“Mobile is a unique new channel and we are onlybeginning to learn how powerful it will become,”he said.PAGE 4 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 4. consumers will become increasingly comfortable withmaking purchases online, on their phones,” he said.“Retailers should beware revenue-share deals that allowthem to launch a mobile site for little upfront fees, asthey will almost certainly pay for more later.”New directionThe mobile commerce space is getting interesting.This is because the line is blurring between destinationand ecommerce, most visibly in Apple stores, according the ‘cash register’ potentially works right on a mobileto Tom Limongello, vice president of marketing at Crisp. application,” Mr. Limongello said.“The cashier walks over to you as you are looking at “Also, the payment process is getting easier, from cardthe product, and the same happens on your phone as swipe machines being embedded into phones via Square to apps that are scannable like LevelUp, Belly and Starbucks to the first NFC posters that Android devices can interact with, payments and commerce is no longer tied to a fixed register,” he said. There are many areas in the mobile commerce space that marketers can improve on. Take curation, for example. Putting the right product in front of consumers at the right time is key. Whether the media is outdoor, in-store or on-device, splitting up time based on the most likely product to be bought based on the time of day, week or even month can be optimized so much to drive mobile commerce based on a variety of factors that include outdoor events, television programming, film releases, product releases and merchandise sales of any kind. Mobile commerce is going to be all about personalization and relevance. Marketers who marry the two will see success. “I think mobile can help flatten out the buzz-driven variability in the social commerce space,” Mr. Limongello said. “For example, mobile can offer a way to driving more regular ticket sales to concerts.”PAGE 5 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 5. How to create a mobile commerce siteBy Rimma KatsR etailers are constantly looking at mobile as an ideal customer experience just as comprehensive and easy-to- medium to drive incremental sales. However, when use as the traditional Web site,” she said. developing a commerce-enabled mobile site, mar-keters need to take understand consumer needs to fulfill“In addition, we anticipate seeing more mobile commercetheir coals. sites that intersect mobile and social, allowing custom- ers to not only shop but also socialize and share theirWhen developing a mobile commerce-enabled site, it is favorite products and activities with friends. And lastly,important that marketers clearly decipher and outline we expect to see tablet commerce continue to grow intheir business goals for mobile, whether it is increas- popularity and usage.”ing sales ROI, brand engagement, or a combination ofboth. After establishing clear goals, marketers should Mobile shoppingdetermine which specific areas of their value proposi- Mobile provides a big opportunity to retailers.tion they want to emphasize on mobile, in addition toany additional unique features they want to add to the Indeed, having a mobile-optimized site is experience.“It is also important for marketers to understand theircustomers’ needs and what they would benefit from in amobile environment,” said Carin Van Vuuren, chief mar-keting officer of Usablenet, New York.Critically importantA mobile site is critical for marketers for a very simplereason – mobile is where consumers are spending a sub-stantial amount of their time browsing and shopping.Mobile has evolved from being viewed as a luxu-ry to being recognized as a necessity for a brandto experience true success in today’s smartphone-driven world.Additionally, a mobile site is a great way for marketers toincrease engagement between their brand and consum-ers, in addition to bridging the gap between offline andonline purchases.“As smartphones and tablets have become key driversof Internet usage, brands are now realizing that it’s notenough to just offer a simple optimized site,” Ms. VanVuuren said.“With that in mind, we expect to see more and morebrands turning to strategies that leverage next-genera-tion features and technologies like HTML5 that make thePAGE 7 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 6. perience for mobile will substantially improve sales and customer acquisition.” With more than 50 percent of Americans now owning a smartphone and 64 percent of those consumers using their mobile devices to shop online, a mobile site is a must-have for brand marketers. Mobile commerce sites let brands connect with their customers 24/7 whether they are at home, on the go or inside of the retail store. “By offering a unique and elegant mobile shopping expe- rience across all smartphone device platforms, the brand can create a positive shopping experience for the widest range of customers,” Mr. Lowden said. “It is then when the brand moves the consumer from an occasional shopper to a loyal customer that they can entice them to download the branded mobile app for the loyalty program and location-based features to create an even deeper, more significant relationship,” he said. According to Mr. Lowden, mobile is becoming much more than just strict mobile commerce.Consumers are constantly on their mobile devices and “More and more consumers are using their smartphonesare continuing to turn to them to make purchases – both as a shopping companion to aid the in-store experience,small and large. look for relevant offers and find the nearest locations,” Mr. Lowden said.“A mobile-optimized site that allows consumers to eas-ily search, browse and buy is the first step in enabling “By the end of 2012, we are going to see a significanta mobile channel,” said Dan Lowden, vice president of increase in brands that enable consumers to check-in tomarketing at Digby. a store location to see promotions and receive discounts, scan UPC and QR codes to access more detailed prod-“Key features of the mobile site should include: rich uct information including ratings and reviews and videoproduct photographs, complete product descriptions, demonstrations, and participate in store exit surveys thatcustomer-submitted product ratings and reviews, prod- can earn shoppers loyalty club points,” he said.uct video demonstrations, shop by category, shop bybrand, store locator, email, share to Twitter and Facebook “Consumers will have the ability to receive highly rel-and a complete, ever-present site search,” he said. evant messages and offers directly from their favorite retailers and brands based on where they are and what“It is important to note that the brand’s mobile site they’re doing, and retailers will be able to view shoppershould not be a cut-and-paste of the online site, but in- behaviors from check-in to exit, understand the lengthstead designed for the unique ways in which consumers of visits to stores or other locations, and observe geo-use mobile. Brands who create a rich, easy-to-use ex- graphic trends.”PAGE 8 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 7. YOUR CUSTOMERS HAVE GONE MOBILE ...... ARE YOU GOING WITH THEM? They’re using an iPhone in the morning, laptop during the day, and a tablet in the evening. Let Appcelerator help you learn how to reach your customers throughout the day, wherever they are. How do you build a scalable mobile strategy? How can mobile drive new revenue? How will you use mobile to improve your business processes? We help some of the best brands in the world plan and execute their mobile strategies. We’d like to help you, too. © 2012 Appcelerator, Inc. All rights reserved. Appcelerator is a registered trademark of Appcelerator, Inc.
  • 8. Unique marketing opportunities with SMSBy Colleen PetittS MS marketing is one of the most immediate and pow- characters to deliver a message erful ways to reach customers. Yet it is often over- that will spur customers to action. looked in deference to more traditional approaches. Not 160 words – 160 characters.That is potentially a significant strategic mistake, con-sidering the open rate for texts is 98 percent – compared It is critically important to find theto 22 percent for emails. Additionally, the average num- right audience for an SMS cam-ber of emails a customer receives a month is 1,216. The paign and make each one of thoseaverage number of texts? 178. characters count. Colleen PetittMoreover, 91 percent of Americans own a mobile Targeting and segmentationphone. Eighty-two percent never leave home without The first step in designing a successful SMS campaign istheir phone. to define the target audience, determine what the busi- ness objective is and then refine the message.Of course, SMS campaigns do have certain limitations,one of the biggest being that a marketer has only 160 Customer segmentation qualifications could include: 1. Age of consumer. What age range do you want to reach? According to a 2010 Yankee Group study, the sweet spot for SMS is between the ages of 20 and 34, where 60 to 70 percent of those polled text every day. The percentage drops after age 35 to about 45 percent, so an SMS campaign aimed at senior citizens would probably not see the same success as one that targets twenty-somethings. 2. Location. What offers can you make to customers that are location-specific? Is it an unusually hot day? Send a message that says “It’s hot outside, but our yo- gurt is ice cold. Show this text for buy 1 get 1 free.” Provided they have opted-in, consumers welcome this kind of relevant, real-time interaction. 3. Customer value and engagement. Regular custom- ers should receive different messaging than prospects. If someone signed up in store versus through a radio ad, you should create message streams that address their experience. While this level of targeting is critically important, it isPAGE 10 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 9. and two keywords for polling. In this case, the keywords are “A” or “B.” Host Ed Schultz reveals the results of that night’s poll at the conclusion of each episode. Another example is “American Idol.” The show invites viewers to text the keyword VOTE to a separate short code for each contestant. Keywords must be kept short – ten characters maximum – and aligned with preexisting brand language. They also must be preapproved by carriers and follow the Mobile Marketing Association Guidelines. Adjusting copy Another crucial element of successful SMS campaigns is targeted copy. With only 160 characters to spur recipients into action, marketers must think small and precise for SMS, saving longer messages for email.impossible without a short code and a keyword. For example, when planning to market a special event, a marketer might use email to promote detailed informa-Short codes and keywords tion, then send a short text message alert on the day ofShort codes are 5-6 digit telephone numbers that can only the used from mobile phones and are country-specific. At the end of the day, only three questions need to beOptimally, short codes are easy to remember and difficult answered in an SMS forget, and they help consumers engage with a brandvia a wide spectrum of activities, ranging from survey What is the brand, product or service? What is in it forpolling and charitable giving to news alert subscriptions the customer? What should the customer do next?and mobile services. That said, the message length and carrier approval pro-A keyword is the word or phrase consumers send to a cess for SMS campaigns may seem daunting.short code to subscribe to mobile marketing. For savvy marketers who are willing to get creative aroundFor example, a marketer may ask consumers to text the these guidelines, a compelling and innovative SMS cam-keyword JOIN to a short code to subscribe to a breaking paign can markedly improve the customer alert. Colleen Petitt is director of digital and email services at“The Ed Show” on MSNBC uses a dedicated short code Aprimo. Reach her at 11 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 10. Creating a mobile CRM program with SMSBy Chantal TodeS MS is the gateway to mobile CRM programs that can “With typical response rates of more than 95 percent, drive customer loyalty. Merchants are seeing strong mobile marketing via text messaging offers a uniquely results from well-executed SMS campaigns, which powerful and highly personal communication channelcan be the underpinning for a mobile CRM program that compared to other media,” said Jack Philbin, cofounder/drives customer loyalty and enables merchants to deliver CEO of Vibes,, offers and other important communications. “Consider for a moment that 91 percent of AmericansMcDonald’s, IKEA and others have all discovered the keep their mobile phones within reach 24/7,” he said.importance of SMS for engaging customers in ongoingconversations and being able to easily reward them for “With this level of impact, building a mobile databasetheir patronage. and creating a strategic text messaging strategy needs to be a foundational component of any brand’sHowever, despite the fact that research shows that SMS mobile CRM plan.”can produce engagement rates of up to eight times higherthan retailers normally achieve via email marketing, A ubiquitous toolmany retailers are still merely dabbling in SMS. The main focus of merchants with large CRM databases has been to use SMS to offer an alternative communication tool for new and existing consumers. This enables customers to receive text alerts or reminders via SMS instead of email. Many are missing out on an opportunity with SMS to drive deeper engagement with interested customers. “There is no simpler way to immediately interact with your consumer than SMS,” said Jeff Kilman, CEO of Pocketstop, Dallas, TX. “For both opt-in and ongoing communication, there is no tool that is more ubiquitous and easier to use. “When embarking on an SMS-driven mobile CRM strategy, a merchant should develop a plan that will use the collected data to make smarter and more-timely relationships with customers,” he said. “This can be accomplished by putting together a roadmap for building an audience, engaging that audience, connecting them into the most relevant marketing channels available and then keep that dialogue ongoing.” Merchants should be starting now to begin planning their SMS strategy for the fourth quarter, as this is typically when retailers can expect their mobile databases to growPAGE 12 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 11. at the fastest rates for the year while monthly churnrates are typically lower.The first step in the CRM lifecycle is to create awareness,which retailers can do with a simple text call-to-actionmessage such as printing a keyword and short code ona print ad letting consumers know that they can text tosign up to receive discounts.This helps engage customers while identifying andbuilding a database of interested consumers.Once consumers are in the database, retailers need tocreate a strategic, targeted engagement strategy viatext messaging.This helps marketers build a one-on-one relationship.“Sending the same deal or coupon via text that was sentvia email will not cut it,” Mr. Philbin said. “It should beunique and make the recipient feel special.“This will build further engagement and ultimately helpdrive consumers to the store,” he said.“By leveraging text messaging in combination withmultiple touch points, retailers can ultimately leadconsumers through the customer journey–awareness,engagement, transaction and loyalty.”Holistic approach redemption methods with new technology, providingRetailers should also think about leveraging text relevant content on a consistent basis and integratingmessaging as one piece to their overall mobile strategy. SMS as a part of an overall customer service and marketing strategy.By integrating mobile calls to action into cross-channelmarketing initiatives and promoting them through in- However, the benefits of SMS significantly outweighstore, Web, email, print, and social channels such as any hurdles.Facebook, retailers will see the best results for the efforts. “Because it exerts the power of ubiquity andSMS does come with some challenges. personalization, mobile should be viewed as a multi- channel approach through which all marketing effortsThe biggest challenge for a merchant in a SMS-driven can be deployed,” Mr. Philbin CRM is merging that data with all of the otherdata silos that it has in its system. “By doing so, customers will receive a more holistic and cohesive experience, while the retailer improves theOther challenges include combining old traditional value of its brand’s overall marketing strategy,” he said.PAGE 13 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 12. Using SMS and short code marketing to drive traffic to retail locationsBy Rimma KatsS MS is no doubt one of the best channels that he said. “Unless they want to read a 160-page guide marketers can use to drive in-store foot traffic, as developed by the MMA and carriers – and who doesn’t well as keep an ongoing dialogue with consumers. – newbies should consult with experienced mobile providers who can guide them through the process thatWhat is great about the channel is that marketers are begins with obtaining a short code and ends with a valuenot only reaching consumers with smartphones, but exchange with mobile subscribers.feature phones as well. “Even before that happens, marketers should set clearWhen used correctly, SMS can become the right tactic objectives and ensure that SMS is the right tactic.”for marketers. Driving foot traffic“First off, marketers need to understand the rules SMS is critical for marketers looking to drive in-regarding text messaging programs,” said Jeff Hasen, store traffic.chief marketing officer of Hipcricket. By opting mobile users into VIP clubs, retailers have“Of course, they cannot just buy a list and spam everyone,” the ability to bring people into a store with the lure of previews, offers and celebrity appearances. “If you send those kind of messages via email, people may show up in 2016 – or never,” Mr. Hasen said. “The SMS advantages involve reach, immediacy and permission,” he said. “There is no doubt that mobile commerce is aided by text campaigns that give consumers what they want, when they want it. “Retailers looking to move product quickly have the ability to reach out to an opted-in member who will be most receptive and likely to buy.” There are several steps marketers must take to create a successful SMS and MMS campaign that drives high return on investment. It is important for marketers to determine their goals and objectives. The first step any marketer must take is to select the key goals and objectives they want to achieve through SMS. “Is your goal to increase conversion in-store?” said James Citron, CEO of Mogreet. “Are you trying to build a loyalty club?” he said.PAGE 15 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 13. messages at times during the day most relevant for the consumer to open the message and, if the content is compelling enough, buy the product. “The more relevant and compelling the SMS message is, the more likely a consumer is to take advantage of it – a compelling promotion such as a coupon code redeemable in-store delivered to the right customer base results in higher in-store traffic.” Evolution of mcommerce Mobile commerce is quickly becoming a significant driver of commerce revenue for retailers – ranging from 10 percent to 50 percent of all digital commerce depending on the retailer. SMS and MMS is the simplest and most intuitive way to drive increased mobile commerce revenue through targeted promotions. This helps marketers create a two- way conversation with new and existing customers and ultimately lets them create a long-term relationship with their audience through mobile messaging. “As smartphone penetration in the U.S continues to grow, and as mobile devices become integral to the research/ purchase funnel, retailers have to ramp up their mobile efforts,” Mr. Citron said. “Marketers should create user-friendly mobile sites, build“For many mobile commerce marketers, the goal is both.” and activate SMS/MMS databases, design QR codes that do more than share existing Web content, utilizingSecondly, marketers should determine their incentive multichannel marketing techniques such as the social– what will drive their audience to participate and sharing of MMS messages,” he said.text-in?Lastly, companies should also select engaging content.The better the content, the higher the response rate.“SMS and MMS marketing drives in-store traffic throughrelevance, immediacy and localization.” Mr. Citron said.“Text messages’ naturally high open rates mean it hasthe ability to drive immediate action by recipients,” hesaid. “Smart mobile marketers create time-based SMSand MMS messaging marketing programs, deliveringPAGE 16 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 14. Using SMS and short code marketing to drive traffic to retail storesBy Robin EyreW hen it comes to mobile commerce, the No. 1 Ubiquity goal for retailers and brands is to implement In the developed world programs that ultimately increase ROI with almost every household has ameasurable results. mobile phone.Mobile phones have truly become a global phenomenon More than 99 percent ofin the past 15 years with close to six billion units in messages are read within fiveuse and whether you have a standard or smartphone, minutes of receipt.and wherever you are, they will all have two things incommon: the ability to call and text. Emails, in contrast, may never be opened, let alone read. Robin EyreSavvy retailers cottoned on to this quickly using thesimple text message as another channel through which Cost and measurabilityto sell and market their products and services, using itRelative to other forms of direct marketing, costs of anstrategically, often in conjunction with other channels SMS are low and statistics such as delivery, replies if aand with great results and happy, loyal customers. short code is included, call-backs and purchases if a code or call to action are included are all measurable which isSo what is the attraction of SMS? Why are millions of important when assessing a campaign’s messages sent every day? The great thing isfew other channels are able to tick all the same boxes. Multichannel SMS often works best in conjunction with multichannelSimplicity campaigns.A message is simple to construct, send and receive andgets direct to the customer within seconds. With only Sure, sending a delivery reminder might only necessitate160 characters to play with which must include an opt- one text, but retailers have consistently found thatout clause, you are forced to be succinct and creative. strategic text marketing works best in conjunction with a number of channels and reinforcing the message acrossVersatility email, direct mail, television ads, and the print media.SMS can be used in virtually any function: marketingpromotions, purchase confirmation, delivery notices, Robin Eyre is marketing manager at Collstream Ltd. Reachappointments and reminders and customer service. him limit is your imagination. CustomizationMessages can be customised depending on location, age,product, promotional offer and price. With automatedCRM systems the data is easily uploaded.SpeedMessages can be delivered with seconds or staggeredover a set time period. If a call center is involved andtraffic is slow, the number of messages being sent can begiven a boost to increase interaction.PAGE 17 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 15. The case for mobile commerce By Chantal TodeA s mobile use continues to grow and affect larger areas of consumers’ daily lives, it is not enough for retailers to simply be present in mobile anylonger – they also need to have a functional offering thatenables users to purchase what they want, whenever andwherever they want it.While there are many considerations that go intocreating mobile commerce strategy, retailers need toact quickly because they are missing out on a growingopportunity to capture sales via smartphones and tablets.While sales transacted via mobile devices are currently asmall portion of overall retail volume, they are growingquickly and are particularly important around holidaysand special occasions, when users are looking to makelast-minute purchases. “Except in the rarest of cases, mobile commerce is an essential component of a retailer’s digital platform,” said Tom Nawara, group vice president of emerging solutions and innovation at Acquity Group, Chicago. “Customer habits and behavior have changed, and they now expect the brands they interact with to have a functional mobile presence.” Mcommerce volumes grow The examples of retailers who are driving noteworthy transaction volumes via mobile commerce are growing. EBay predicts it will see $10 billion in mobile volume transactions this year, while flash sales site Rue La La recently said that mobile sales surpassed online sales for the first time ever on April 14, representing 53 percent ofPAGE 18 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 16. shoppers to find the product they are looking for as efficiently as possible,” said Scott Forshay, strategist for mobile and emerging technologies at Acquity Group. “Having a transactional-capable mobile Web site also plays a vital role in mobile marketing strategies.” Tablet commerce It is also important to understand mobile commerce does not simply mean a transactional mobile site. Tablets are a quickly growing area for retailers, with consumers gravitating to these devices for activities such as shopping because of their bigger screen sizes, and retailers who are optimizing shopping experiences for these devices are reaping the benefits. “The term ‘mobile’ can mean different things to different people and the landscape is constantly shifting,” Mr. Nawara said.“ Just when retailers were getting to the point of optimizing their big browser ecommerce sites, they now have to contend with mcommerce, tcommerce and even couch commerce with the rise of smartphones and tablets.the day’s total revenue. “In addition, true mobile commerce includes more thanMobile commerce can also play a significant role in just mobile sites or apps, with retailers also having toretailers’ broader mobile marketing strategies. determine how to execute in mobile search, SMS/MMS, mobile offers and coupons and mobile advertising,”Whether a retailer is using SMS, MMS or QR codes for a he said.promotional offer, it is important to direct consumers toa mobile-optimized product detail page specific to that “Understanding the various need states of customersoffer as this will provide a clear call to action that can across these devices, contexts and tactics can be difficultdrive transactions on a mobile device. for retailers, but it isn’t an impossible task.”One of the first considerations that needs to go into What is most important is that retailers do not think increating a mobile commerce strategy is figuring out terms of specific techniques – such as wanting to do anhow to deliver an optimal shopping experience for app because everyone else has one – but in terms of howmobile shoppers. their consumers are looking to transact with them via mobile and how best they can support that activity.“Retailers must first understand the prototypical mobileuser experience – as consumers are often engaging in “This approach will lead retailers to the creation oflimited time intervals – and design the user experience an omnichannel platform and allow them to focus onwith elimination of unnecessary steps in the checkout strategic mobile initiatives rather than just grasping atpath and a simple, logical navigational flow that allows ad hoc tactics,” Mr. Nawara said.PAGE 19 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 17. 3 tips for using mobile direct display advertisingBy Dave LawsonA s mobile grows, so does the technology behind ing and tracking these it and the amount of ways marketers can con- multichannel touches sider, target and build relationships with on-the- can enable a more suc-go consumers. cessful connection of digital dots. This ap-An often overlooked arrow in the mobile marketing proach evolves commonquiver is that of mobile direct display advertising, which retargeting tactics intois treated as a direct communication channel similar to a refined relationshipSMS and email. remarketing practice.Like it or not, everyone is connected by multichannel The real opportunity forconsumerism and marketers can expect to interact with marketers lies in not justconsumers at any place and time. delivering mobile display ads, but in delivering a Dave LawsonTaking a profile-based approach to your mobile market- better experience throughout the entire engagement with the customer. Properly making use of mobile display ads throughout the customer lifecycle helps drive conversions or other desired actions such as sharing, liking, opting-in, check- ing-in and more. Here are three keys for using mobile direct display advertising to deliver a great customer experience and boost conversions. Take a holistic approach to targeting It all starts with data. Having access to all of your mul- tichannel data is critical for creating successful mobile direct display campaigns. Using data from an individual as the organizing principle lets marketers avoid the typical barriers when it comes to making use of customer data. Take for example, Jim. He is a customer of yours and has signed up for your emails and SMS alerts. Because all of your data is stored in a centralized profile management system, you also know Jim has visited your mobile site, opened a few emails on his smartphone, and has seen 15 ad impressions. With this data in hand, you decide to show Jim a display ad on his mobile device of the blue sweater he clicked onPAGE 20 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 18. when he read your email, which leads him to purchase.Having all of your data wrapped around a customer pro-file – such as Jim’s – not just a device profile, lets mar-keters see which combination of ads and other channelswere most effective by giving a glimpse into referral in-formation and click-throughs.Use customer profile data to improve ad spendNow that you have a complete customer profile for eachcustomer, you can use that information to help makebetter ad buying and rendering decisions.The holistic view of each customer gives you a look atthe entire interaction that the customer has with yourbrand. It allows you to see the types of consumers youshould be serving ads to and model them out againstfuture consumer interactions that will occur.You can also determine which consumers would likelynot respond well to ads, which saves you money.Change how you plan your marketingIn order to effectively execute this mobile advertisingtechnique, you must implement a customer-centric,consolidated approach to your marketing.Using this approach lets you knock down silos tomake better advertising decisions and improve yourorganizational efficiency. the brand journey.This is accomplished on many levels. Additionally, you will not be burning Jim out with mes-As illustrated in the Jim example, instead of going saging best intended for Suzie or for yet-to-be-identifiedchannel-by-channel to get permissions, develop content, new prospects.segment, deliver, test, measure and optimize. By leveraging a direct digital marketing approach toYou can decide how to treat customers across all your mobile advertising, you are not just opening up achannels while respecting your place in their journey single new option, you are setting your marketing up forwith your brand. a game changing pivot that will prepare your organiza- tion for success now and in the future.Not only will this orchestrated message flow create amore satisfying experience for Jim, it will deliver bet- Dave Lawson is director of mobile and digi-ter efficiency because you do not have to execute 100 tal unification at Knotice, Akron, OH. Reach himpercent of each step across all the relevant touches of at 21 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 19. Increase engagement, sales and loyalty with mobile rich mediaBy Matevž KlanjšekT here is no doubt that mobile marketer’s key objec- tives always include increasing consumer engage- ment, sales and loyalty. To achieve these goals, they use mobile advertis- ing to build relationships with consumers and en- gage them by asking them to do something specific – browse through products and shops, find a store nearby, get a coupon or book a test drive. Static banners that click through to a mobile land- Matevž Klanjšek ing page or service can be effective, but consumers presentations. There is a trade-off between the loadinghave become hooked on the rich capabilities of their most time and the quality of the images, so be selective, butfavorite devices. better images typically produce better results.Rich mobile advertisements allow brands to fully engage, Starting your ad with a video draws users in. The mostenabling users to scroll through product image galleries, effective videos are compact, serving as a teaser andwatch product demos, scroll through product specs and prompting the user to continue the engagement rathereven share a brand message with their friends—mak- than watching and leaving the the shopping experience much more fun, interestingand memorable. TV commercials are not recommended as users have al- ready seen them.So how should you drive engagement, sales and loyaltywith your mobile advertising? In the right context such as a music-related publisher, audio can be very relevant and effective.1. Grab the user’s attention. As with any other suc-cessful and effective ad, it all starts with captivating the 2. Present your products through engagement. Beau-user’s attention. A meaningful call-to-action is essential tiful product shots can be presented in a variety of waysand you will want to test different options to find the best to make the product part of a rich, fun experience, keepperforming message. the audience engaged for longer and, most importantly, get them to make a purchase.Great copy can drive up to 20 percent higher click-through rates. By incorporating rich features such as Integrating games into your ads gets users emotionallyvideo content and image galleries directly into creative involved and allow you to present all of the products youad units, brands give users more options for response. are promoting.Attractive and high quality photos work well for product Users get addicted to the game and often want to playPAGE 22 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 20. the ad experience especially when you want to collect data or get them to subscribe. 3. Integrate social media. Integrating social media ele- ments into your mobile ads has a positive novelty factor effect and makes your brand cool, fresh, and up-to-date. It also extends your reach and helps with acquisition. If your brand has a Facebook page or Twitter profile, do not forget to include buttons to take your users there. It is an easy first step towards bringing social media into your ads and it’s also quite effective – typically 3-10 per- cent of users will tap on each. Newer social media services like Instagram and Pinterest excite users and increase their willingness to engage. We have seen 15 percent of users want to follow a brand on Instagram. To be truly social, it is important to get your users to do more than just follow or like you – get them to share your product on Facebook or post it to Twitter. Even better, encourage them to be creative. For example, you could have users create a poster for your brand with- in the ad. They will love doing it and we have seen more than 20 percent post it to Facebook. 4. Make your ads location-aware. However global, all business is local business. To drive purchases, leverage the user’s location to direct them to the nearest store and offer products that areit again. relevant for where they live or work.Completion rates for games are consistently high, 80-90 Store locator is a simple and effective way to get users topercent, and after playing, users are more than twice as start shopping. When communicated clearly, more thanlikely to find a nearby store or start shopping. 10 percent of users will search for the local store within the ad.Integrating your products as elements within the gameand pausing each time the product appears for an expla- For ticket sales, location awareness can be even more ef-nation is highly effective – users are three times more fective - up to 15 percent of users will look for tickets forlikely to see all the products than they are when viewing their local theater, music show or sports event.a standard product gallery. Matevž Klanjšek is cofounder and chief product officer atGamification is another great way to get users through Celtra. Reach him at 23 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 21. Do retailers get mobile commerce?By Lauren JohnsonW ith consumers comparison-shopping and often buying from competitors while in-store, many retailers are beginning to see mobile as not onlya necessary part of driving sales, but also as a way tobust competitor shopping.With online-only retailers such as Amazon promotingcomparison-shopping in-store, some retailers now viewmobile as a threat to business versus being an add-on toa digital commerce strategy.Although mobile is still a new channel to many retailers,it is clear that marketers are beginning to understand themedium more.“Many retailers view mobile as a threat to their in-storeexperience, since consumers can browse information andcompetitor-pricing while they are shopping,” said DianeZoi, vice president of business development at RevelTouch, Los Altos, CA.“However, there is an exciting opportunity for retailers andbrands to see mobile devices as allies that enhance theshopping experience for both retailers and consumers,”she said.Retail opportunityLast year, Amazon upped its mobile strategy during theholidays with a campaign that rewarded consumers who Nowadays, consumers want instant access to products,used its Price Check application with a $5 rebate. regardless of whether it is in-store or online.By incorporating an incentive, Amazon was able to drive One way that retailers are proving that they understanduser engagement. mobile is by incorporating bar code scanning capabilities into apps and services that are aimed at helping in-storeThe app uses image recognition to let users snap pictures shoppers learn more about the company’s products.of products and UPC codes and then scours the Web tofind the best price on the item. Retailers are also implementing in-store mobile tools to help shoppers, which not only empowers associatesAlthough the app gave consumers an incentive to shop but can also show consumers the value in transactingvia their device, the Amazon promotion was a flashing via mobile.sign that mobile poses a threat to both bricks-and-mortar and online retailers. Furthermore, many retailers “IPads have emerged as an inspiring and effectivefind the app to be a threat to their business. shopping device,” Ms. Zoi said.PAGE 24 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 22. “They are bringing shoppingexperiences to life – throughtouch, stunning visual displayand interactivity — for thefirst time in ecommerce andforward-thinking brands areusing them to enhance the in-store experience,” she said.Late to the game?Although retailers understandthat consumers are gravitatingto mobile as a way to accessinformation, is it too late forretailers just now getting afooting in the channel?As revenue from mobilecontinues to steadily increase,the swap from seeing mobile asa tacked-on part of a company’smarketing offerings to a way todrive both in-store and onlinecommerce is becoming clearerto many retailers. Additionally,there is a fundamental differencein understanding how mobileimpacts a retailer and actuallyimplementing mobile tacticsinto a business plan.There is also a growing gapin the differences betweensmartphones and tablets thatmarketers need to approachwith different strategies.For instance, a study earlier this year from digital will need to include more personalization and featuresmerchandising platform Zmags found that only that go beyond basic transactions to keep up withapproximately one-third of the top 100 retailers in a new group of consumers who expect that theirthe United States have developed tablet-specific favorite brands and retailers will be available via theirmobile sites. mobile devices.Although many brands and retailers have developed “Retailers and brands need to invest in having an opti-basic apps and mobile sites, few take full advantage mized presence in all channels or they risk leaving op-of the opportunities that mobile offers for specific portunities for customer engagement and conversion ongroups of mobile devices. The next phase of mobile the table,” Ms. Zoi said.PAGE 25 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 23. How to create a mobile commerce applicationBy Lauren JohnsonR etailers, brands and publishers are quickly realiz- commerce. But, many apps still miss the mark when ing that mobile is contributing to revenue, meaning giving users a streamlined and personalized experience. that equipping services such as applications withcommerce is a crucial part of a mobile strategy. For instance, if a company’s goal is to drive ROI from an app, it is crucial to keep users inside the appAs mobile becomes more sophisticated, simply having to app or mobile Web site is not sufficient in givingusers an added value. For example, publishers can Instead, many apps direct users to a Web site to finishinclude commerce features as a way to not only increase the transaction. Not only does this mean that consumersin-app subscriptions, but also let consumers shop abandon the app, but the value of it also demolishes.from advertisements. On the other hand, making the user experience inside an“Publishers simultaneously generate diversified revenue app fun and quick is a great way to give consumers anand an improved user experience by introducing incentive for shopping via their handsets.commerce capabilities to their Web sites and mobileapps,” said Kate Gleckner, director of marketing andbrand management at DropWallet, Cherry Hill, NJ.Seamless transactionSimilar to all marketing initiatives, the key to developinga mobile commerce app is to keep the user experiencetop of mind.Additionally, it is important to add commerce to an appin any place where consumers are naturally inclinedto pay for content, such as next to products andin advertisements.Not only is adding commerce to advertisements a wayto drive revenue, it is also a function that consumers arestarting to expect from a mobile experience.For instance, a study from GfK MRI iPanel in Februaryfound that 70 percent of tablet magazine readers wishedthat apps included more personalized ads, including theability to shop from pages.However, that consumer need is not just from publishers- users also expect to shop from directly inside a brandor retailer’s apps.Inside scoopMany marketers are experimenting with in-appPAGE 26 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 24. Take Amazon-owned online retailer Zappos, for instance. items are both great ways to build into a commerce- enabled application. Sephora’s iPhone app includesWhen iPad users add items to their online shopping both customer reviews and related products for eachcarts, little kittens fall from the top of the screen. By item’s page.including interactive features such as this, brands cangive consumers a better experience shopping from a By using a consumer’s browsing and buying behavior,small screen. brands and marketers can drive increased basket sizes and ROI from their commerce-enabled apps.Zappos also uses push notifications to alert users ofnew products and 360-degree views to help show “In order to successfully adopt mobile, publishers willconsumers what shoes look like from different angles. need to clearly understand the average mobile user, who is always on the move and demands results with oneAdditionally, by letting users log-in once and save click,” Ms. Gleckner said.information such as shipping and billing details,marketers can use mobile commerce to their advantage “Introducing mobile commerce to the publishing industryby streamlining the shopping experience. requires a balance between the commerce initiative’s two primary goals — an improved user experience andOther features such as user reviews and recommended diversified revenue,” she said.PAGE 27 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 25. Will simply repurposing the ecommerce site work?By Lauren JohnsonW ith mobile steadily contributing to more Web commerce sites need to be designed for specific paths traffic, marketers are realizing that if they do not to a final product versus an ecommerce site, which is have an optmized site, they will be left behind. more tailored to the experience of shopping rather than purchasing,” he said.Given its reach to both smartphones and feature phones,many marketers’ first endeavor into mobile is with an Slim pickingsoptimized site. However, a mobile site forces brands to One of the biggest mistakes marketers make with mobilethink from the ground up about the most crucial elements sites is trying to cram every aspect of a Web presencethat consumers will want access to while on the go. into a mobile experience.“Mimicking the convenience of an ecommerce site Even though consumers have shorter attention spansworks for mobile, but when it comes to design you need while on their handsets, they have higher create more of a hybrid layout,” said Mike DiMarco,director of media at FiddleFly Inc., Columbia, MD. With smaller screens and different user habits, an optimized site needs to have different goals“Mobile users are far more action-driven, so mobile and functions compared to a Web site, especially with commerce. For instance, checking out on a mobile commerce- enabled site needs to be quicker and easier than the desktop site. While it might be OK to ask a consumer to enter information several times on the Web, mobile users want to enter information once and have it saved. Less is more In addition to a quicker check-out, mobile commerce sites also need to include more action-driven features than a Web site. Including strings of product reviews might be helpful for a consumer searching on a PC. However, mobile users are more impulse shoppers who most likely already know what they are looking for. Retailers can merchandise their mobile sites to only include the most popular items on the homepage, for instance. For users looking for something specific, a search bar is one of the most effective features for marketers to include in mobile sites.PAGE 28 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 26. Similarly, letting users save items to their shopping looking for instant information.baskets that can quickly be accessed later is also a smartfeature to include. Therefore, including features such as store locators and click-to-call functionality is crucial for retailers andFinally, location and context need to be prominent marketers looking to tie their mobile initiatives to afeatures on any mobile commerce site. multichannel strategy.Not only does mobile help drive online commerce, “Both ecommerce and mobile commerce can beit also increases foot traffic and in-store ROI for browsing-oriented,” Mr. DiMarco said.many retailers. “However, more often than not, mobile users are alreadyAlthough there is a growing percentage of consumers informed and ready to buy,” he said.wanting to buy via mobile, there are still groups ofconsumers who are not comfortable transacting from “The smaller screen does not offer nearly as much realtheir handsets. estate to get distracted while making purchases, so a mobile commerce experience is generally much moreAdditionally, mobile users are most likely on the go and streamlined from intent to actual execution.”PAGE 29 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 27. The effect of HTML5 on mobile strategyBy Chantal TodeF or retailers looking to reach a wide swath of existing marketing at Kony, Orlando, FL. customers and prospects, HTML5 holds a lot of promise and is quickly gaining steam. “It’s beyond the testing phase and well into deployment,” he said. “Retailers are embracing HTML5 features andAlready, some of the biggest brands are leveraging functionality as fast as they can in order to reachHTML5 and the technology is expected to be used for customers across all mobile platforms and operatingthe majority of Web sites and apps soon. The reason for systems as efficiently and cost-effectively as possible.”the technology’s growing popularity is the many benefitsit provides, such as lowering development costs, being User experience is keyable to easily distribute content across multiple devices According to data from Uberflip, 48 percent of developersand offering a more app-like user experience through are already using HTML5, and by 2015, 80 percent of allthe browser. mobile apps will be based wholly or in part on HTML5.“Considering the heavy focus United States retailers This shows that retailers need to incorporate HTML5 inand merchants place on mobile Web experiences versus their mobile strategy if they have not done so already.native apps, HTML5 is playing a significant role in theirmobile strategies,” said Chris Dean, director of product For example, specialty retailer PacSun recently introduced an HTML5 lifestyle-based site that will be updated seasonally to coordinate the brand’s marketing efforts. ShopNBC is another retailer which has invested in HTML5. HTML5 enables brands to create mobile Web sites that have some of the same functionality as apps as well as apps that can be deployed across a variety of devices. However, it is still important to keep user experience in mind when embarking on an HTML5 strategy. Optimization is key when it comes to offering a user- friendly HTML5 experience across all devices, and especially with tablets and smartphones. While the majority of Internet traffic from mobile devices comes from iOS devices, retailers still need to be sure they are providing an optimal experience for all prospective buyers. The risk is simply too great of not doing so, with prospective customers who encounter a less-than- optimal brand experience in mobile likely to take their business elsewhere. “The experience must be optimal for all prospectivePAGE 30 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 28. This is important because after investing the money to develop an app, many brands discover they have a hard time encouraging customers to download the app and use it repeatedly. By incorporating some of the neat features possible with HTML5, retailers can see a better return on their investment. “While many retailers struggle with creating a sticky native mobile application that users will both download and then revisit, HTML5 will help solve this problem through its rich, native-like features and functionality that enhance user-experience,” Mr. Dean said.buyers, regardless of their device preference,” Mr. “These include easy updates, search, discover andDean said. transact capabilities, location-based features and real- time promotions - as well as local storage capabilities“Don’t forget, the look and design must be appropriate for both app and data elements which are slow-movingper device – an experience designed for a smartphone and help in a faster user experience,” he said.will not look as good on a tablet unless specificallydesigned to function across all platforms and devices,”he said.“And for the 50 percent of U.S. mobile phone userswho still have feature phones, retailers must ensure anappropriate and graceful fallback to earlier, non-HTML5legacy mobile Web technologies.”Keeping currentHTML5 can be an important strategy for retailers becauseit can make it easy to update content.“Mobile Web enables retailers to more easily updatetheir offerings and, importantly, leverage existing Webdevelopment resources,” Mr. Dean said.“Employing HTML5 thus enables retailers to takeadvantage of this key feature of mobile Web, whilestill providing users with a more native-like and user-friendly experience than prior HTML versions permitted,”he said.HTML5 can also help retailers deal with issues such asencouraging consumers to come back to their mobileofferings again and again.PAGE 31 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 29. 5 in-app metrics you are not measuring, but should beBy Raj AggarwalA s your mobile application presence moves from a screen and other sales- nice-to-have to a core business driver in 2012, related details, you keep the corresponding analytics to measure this pres- a running total of a us-ence need to follow suit. er’s total purchases. This will give you a windowAdditionally, as companies look to drive their mobile into your top shoppers’strategies with data, it is imperative they focus on highly behavior and how bigactionable and valuable in-app metrics. the pipeline of future top customers is.While basic user and purchase information provides ahigh-level look at the app itself, these deeper insights It is a quick and easy waycan power its evolution. to pinpoint what user segments hold the high-Customer lifetime value est value and are worth Raj AggarwalIn addition to tracking what product and category a user spending your advertis-is buying, the path by which they got to the purchase ing budget on. Monthly per user metrics While app metrics like total users and total sessions are valuable, the aver- age per-user engagement is a truer indicator of the health of your app. These are a good starting point for any app report, and can also be used as indicators of how your users like or dislike a change in navigation or layout. When is a user’s first conversion/ purchase? This is a deep-dive metric that might require a little work but gives valuable insights into indi- vidual user behavior. Tracking the number of sessions, item views or days between the av- erage user downloading your app and making his first purchase can provide valuable forecasting data and allow you to not only place an ROI value on an individual user acquisition but also a timeframe inPAGE 32 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 30. which they will reach that value. It is easier to read and follow the overall trend of how long users stay on an item before making decision onThis approach can also be used to determine the number buying it or not.of searches, items viewed, items placed in cart or otherfunnel-based event before a purchase. User Segmentation Not all your users are alike so marketers should sepa-This is useful for instrumenting logic to place special rate them into categories that will make it easier tooffers where they will be most effective at stimulating evaluate patterns. Fortunately, there are multiple actionsa purchase. in your app that provide a glimpse of what kind of users they may be.Time spent on product view screenTime on a screen can be a difficult metric to get right: One of the simplest distinctions is to segment us-either you give up granularity for ease of viewing in a ers who have bought an item compared to those whodashboard, or you give up flexibility in deep data dives. have not. Once you have those two groups identified you can begin to examine the differences in users’ actionsThe solution is to capture both a raw and bucketed value across your app to see how to make the browsers morecount for the seconds on a page. like the buyers.With the raw data you can see exactly how long do peo- Whatever categories end up being applicable in yourple spend looking at certain items on their mobile phone specific case, it is important to have a well-definedbefore buying. Short view times could indicate impulsive set of actions that define a user in a certain seg-shoppers or those who know what they want prior to ment, limit overlaps and limit ease of crossing backlaunching the app. and forth.Bucketed data is a perfect app-wide metric to be viewed Raj Aggarwal is CEO of Localytics, Cambridge, MA. Reachin your analytics provider’s graphical dashboard. him at 33 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 31. Own the in-store customer experience via location-aware branded appBy Dan LowdenS ince mobile technology was introduced to the re- For 2013, multichannel retailers should implement lo- tail industry a few years ago, it has generously re- cation-based marketing and analytics in their mobile shaped the way that retailers and brands interact strategy through their own branded rich mobile appwith consumers. to better understand and engage with consumers like never before. Eighty-seven percent of all United States retailers have To fully engage with consumers in-store through their some kind of mobile capabil- own branded rich apps, retailers should: ity, whether it is a store lo- cator and product search Create geofences around physical store locations and functions or a full mobile- other points of interest. A geofence is a virtual bound- optimized site. ary that can be placed around specific locations, allow- ing brands to effectively identify and communicate with The trend for commerce in- consumers nearby and within those geofenced locations tegration into mobile is on through the consumers’ pre-downloaded mobile app. Dan Lowden the rise.Fifty-five percent of retailers have a commerce func-tion as part of their rich, unique mobile shopping ex-perience through their branded mobile-optimized siteand rich app that enables consumers to easily andconveniently search, browse and buy anytime and any-where. However, this is no longer enough in today’sretail marketplace.To combat wandering consumer attention, retailersshould align their in-store and mobile commerce strate-gies to have more control over the customer experience.The nation’s most innovative retailers are integratinglocation-based technology into branded rich mobileapps so they can develop a deeper relationship withcustomers by engaging with them in a more relevant,personal way.Location awareness is completely transforming the rela-tionship between brands and consumers.For the first time ever, brands have the power to en-gage directly with their customers based on where theyare – when at home, when mobile and especially in thestore – and it is all available through their own brandedrich app.PAGE 34 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 32. Geofences can vary in size and shape so brands can geo- store. While inside the store, send the shopper messagesfence relevant locations of interest including a store, through the app about in-store events, time-sensitivepark, airport, sports stadium or even larger geographic deals, product launches or anything that the retailer be-areas such as a neighborhood, city or ZIP code. lieves is relevant and valuable to the consumer.Engage with the consumer when they breach a geofence Once the consumer exits the store, send the shopper ato drive them to the store, and encourage him or her to store exit message. An exit message can include an in-check-in. vitation to a store survey, a loyalty promotion or even a simple “thank you” for visiting the store.Once the consumer is inside of the geofenced area, brandsshould drive traffic to the store by sending a promotional By developing a rich mobile app with location-awareoffer or alert her to a flash sale or event through a push technology, marketing, analytics and commerce, brandsnotification in the app. can effectively drive consumers to the store and en- gage with them while there to not only serve themRetailers should place a sign in the entrance of retail better, but also gain a deeper understanding of buyerstores reminding shoppers to download the app and preferences and habits, uncover conversion rates forcheck-in to receive special offers and messages. products purchased in the retail store, and influence buying decisions.Offers should be stored in an offer wallet inside the appfor easy access when checking out or during another Dan Lowden is vice president of marketing at Digby,store visit. Austin, TX. Reach him at bar code scanning in the rich app. Bar codescanning empowers shoppers with detailed informationabout specific products so that they can make more edu-cated purchase decisions.As customers walk through the store, they can scanproduct UPC codes to access the retailer’s productcatalog and view product descriptions, ratings and re-views, add to wish list and registry and even see avideo demonstration.When a scan occurs, the retailer can send a promotionaloffer or recommend other products that could be consid-ered for purchase to help cross selling. Place QR codes tohighlight featured promotions in the store and have a QRcode reader in the app. QR code scanning gives shoppersthe ability to instantly see offers and messages on thefeatured products.Scanning QR codes not only generates insights into prod-uct preferences, but also creates an opportunity to serveor highlight relevant and time-sensitive promotions.Engage with consumers while inside and exiting thePAGE 35 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 33. Case studies on mobile campaigns and programs during retail salesBy Lauren JohnsonW hen it comes to mobile commerce, the No. 1 on the American Express iPhone app. During the pilot, goal for retailers and brands is to implement consumers mostly in Los Angeles and New York received programs that ultimately increase ROI with offers from merchants such as Baskin-Robbins andmeasurable results. Dunkin’ Donuts.So far, marketers have tested a variety of different “We are committed to bringing cardmembers andprograms across all mobile channels. merchants closer together across social and mobile channels where they are already engaged,” said LukeHere are some examples of programs that are working: Gebb, vice president of global network marketing at American Express, New York.American Express pilots mobile offers service todeliver relevant, personalized deals “Our mobile offer engine was created to cut through theAmerican Express rolled out a mobile offers service that clutter of a crowded deal marketplace, to deliver highlyrecommends and ranks relevant merchant deals based relevant, personalized offers to cardmembers,” he said.on a cardmember’s spending history and location. EBay leverages daily deals in interactive iAd campaignThe service was piloted through the My Offers feature EBay launched an iAd campaign that curated daily deals and encouraged consumers to download the company’s iPhone app to purchase them. EBay claimed that the campaign marked the first time Apple has allowed an advertiser to deep-link to a specific location in-app. The iAd campaign also helped the company drive downloads for its iPhone app. “The strategy in launching eBay’s first iAd for Brand was two-fold,” said Steve Yankovich, vice president of eBay Mobile, San Jose, CA. “First, to leverage daily deals as a means to drive downloads and, second, to encourage engagement with our current users,” he said. Staples rolls out tablet-optimized experience Earlier this year, office supplies retailer Staples launched a tablet-optimized site to provide a rich browser-based experience for shoppers. Staples reported that its traffic from tablet devices grew throughout last year at a faster pace than smartphones. With the penetration of tablets growing and shopping proving to be a popular activity on tablets, more retailers are considering a tablet strategy, but Staples is one of the first to actually introduce a tablet experience forPAGE 36 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 34. its customers.“When we were looking at other retailers and non-retailers to see what others are doing, we realized thatthis is a brand new medium from a retailer perspective,”said Prat Vemana, director of mobile strategy at Staples,Framingham, MA.“We did extensive customer research trying to understandhow our customers are using tablets in terms of shoppingand that lead us into the thinking that we should try toprovide a new kind of experience leveraging the featuresthat the medium offers,” he said.“We are bringing significant value and leveraging themedium and what it offers.”Sephora bolsters mobile sales via promotionSephora introduced a campaign that helped spread theword out about its revamped mobile site, Web site andiPhone app, as well as let consumers vie for prizes bychecking out the company’s new shopping tools.Sephora’s promotion lasted 15 days and encouragedconsumers to visit the company’s Web site for a chanceto win daily prizes.Sephora promoted the initiative through mobile ads thatran within the TV Guide iPhone app, as well as via itsFacebook page. iPhone and Android apps to let fashion-savvy consumers shop the latest trends, as well as check prices and read“At Sephora, we are so excited about the launch of our new product that we wanted to shout it from the mountaintops,”said Bridget Dolan, vice president of interactive media at Via the app, consumers can also locate the nearestSephora, San Francisco. location to learn more about in-store events and special offers. The app is available for free download in Apple’s“Most importantly, we had to break through to get App Store and Google Play.women to try the new site,” she said. “The launch of our Bloomingdale’s Big Brown Bag“Creating the 15 Days of Beauty Thrills with once-in- mobile application for iPhone and Android is part of oura-lifetime prizes and experiences from our top brands commitment to enhancing our customer’s omnichannelhelps to drive women to our new site to see what all of shopping experience,” said Anne Bridges, senior vicethe excitement is about and experience it firsthand.” president of site merchandising, Internet productions and planning at, New York.Bloomingdale’s enhances shopping experience viamobile app “We’re now inviting couples to use their phones – insteadDepartment store chain Bloomingdale’s rolled out of a gun – to scan items to add to their registry,” she said.PAGE 37 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 35. Rue La La drives 25pc increase in user sessions with Case-Mate aims to increase sales via commerce-push notifications enabled mobile siteFlash sales site Rue La La has steadily increased its use Mobile accessories company Case-Mate lets users buyof push notifications over the past year and is finding gadgets for their handsets via a commerce-enabledthat the strategy has helped it drive an increase in mobile site.user sessions. Case-Mate rolled out the mobile site after seeingThe push notifications were designed to remind shoppers approximately 20 percent of traffic coming fromabout the daily flash sales held by Rue La La at 11 a.m. smartphones and tablets. Case-Mate worked withevery morning. commerce service ShopVisible on the initiative.The online retailer first began using push notifications in “Our goal was to make the site mobile-friendly andJanuary 2011 and ramped up the number of notifications enhance the shopping experience,” said Adam Roe, vicesent during the holiday season. president of ecommerce and custom cases at Case-Mate, Tucker, GA.“We see a lot of benefit and promise for our customersin Urban Airship’s set of tools,” said Ashley Harmeling, Walmart, Procter & Gamble drive mobile shoppingmarketing director at Rue La La, Boston. with QR codes Walmart and Procter & Gamble are placing QR codes on bus shelters and trucks to encourage on-the-go consumers to scan and instantly buy products from brands such as Tide, Pampers and Gillette. The initiative targeted urban shoppers in Chicago and New York. “QR codes are one of those things that for us is really big,” said Chad Brizendine, brand manager of Walmart Grooming at Procter & Gamble, Fayetteville, AR. Rockport uses outdoor promotion, QR codes to drive sales Adidas’ ran a live promotion in New York that used mobile bar codes to let consumers buy shoes via their handsets. Rockport used a live demonstration to launch the TruWALK line of running shoes. Rockport worked with Unbound Commerce on its mobile initiatives. “This TruWALKzero launch event generated a lot of buzz, but Rockport took this a step further and tied in a commerce-enabled, linked call-to-action, so success could be judged in part by incremental sales lift,” said Wilson Kerr, vice president of business development and sales at Unbound Commerce, Boston.PAGE 38 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 36. Mobile coupons: The tipping point of mobile commerceBy Shuli LowyT here is something magical about getting a good deal which drives consumers of all ethnic, social, and financial dispositions to purchase. Mobile is rapidly becoming a criti- cal component in any retail strat- egy, with research showing that 70 percent of smartphone owners use their phone to help with in-store purchasing decisions, and 26 per- cent buying directly via the mobile Web or mobile applications. Shuli Lowy Marketers are also realizing thatmobile is now one of the most important channels theyhave for consumer communication and promotion, andthat a well designed and effectively delivered mobilecoupon can be the factor that leads the consumer topurchase your product rather than your competitor’s.There are four primary methods with which to promoteand deliver mobile coupons to your customers: mobile It is estimated that over a quarter of all downloaded appsbanner ads, mobile applications, QR codes and SMS. are opened once and then never again.Each of these mediums engages the audience in an en- Considering the billions of dollars that are invested intirely different manner and therefore carries distinctly building mobile apps, this is disappointing for manydifferent features. businesses that have invested time and money and see very little return.Promoting a coupon or discount via a mobile banner adis a great way to reach new customers and drive them to The primary issue causing this crisis is that manypurchase your product. mobile apps do not provide sufficient value to the end user, which is where mobile coupons come in.Furthermore, the sophisticated targeting techniquesavailable allow vendors to zero-in on their niche clien- Using push notifications, brands can send coupons ortele and ensure their ads are reaching the right people. notify consumers about the latest promotions as an in- centive to drive the end users back into the app.Mobile ads can be targeted in response to specifickeyword searches, within hyperlocal geofences, on QR codes are a phenomenal way to promote and dis-specific phone and app types, at particular times of tribute mobile coupons as well. The primary strengththe day. Having a detailed understanding of your target of a QR code is that it requires initiative from the con-audience is enormously helpful in ensuring a well tar- sumer standpoint and leads to some unknown surprisegeted and successful campaign. – both aspects which create a deeper and more engaging brand experience.Mobile coupons also present a golden opportunity whenit comes to mobile apps. However, a QR code is unlikely to be used unless it is at-PAGE 39 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 37. tached to some sort of call-to-action. capabilities of the other channels and is considered a relatively old technology, it still remains one of the mostFor example, an ad with a QR code and a caption which effective and oft-used forms of distributing mobile cou-reads “Scan for an exclusive promotion” is a great way incentivize a passerby to engage with your brand andsubsequently buy your product. As we continue to watch the growth of mobile com- merce, we can expect a tremendous growth in the distri-Finally, SMS is one of the most effective methods of bution and usage of mobile coupons in the coming years.distributing mobile coupons due to the fact that non-smartphone users can also participate. Marketers designing campaigns involving mobile cou- pons must first begin with educating themselves aboutIn addition to reaching a much broader base, SMS mes- the distribution options available and gain a deeper un-sages have been proven to reach people effectively and derstanding of the target demographic, the nature of theimmediately, with an estimated 97 percent of SMS mes- brand involved, and the campaign goals.sages being opened and read. Regardless of the method used, mobile coupons are un-SMS programs are also substantially cheaper to run than doubtedly a crucial element to driving mcommerce.banner ad campaigns or mobile apps and have histori-cally had high redemption rates when it comes to mo- Shuli Lowy is marketing and client services manager atbile coupons. While SMS lacks the full graphic display Ping Mobile. Reach her at 40 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 38. The allure of mobile couponsBy Rimma KatsT he future of coupons is mobile and marketers must incorporate the technology into their efforts to drive consumer engagement.Currently, marketers such as retailers and grocery storesare not incorporating mobile coupons in their day-to-day initiatives. However, by not doing so, companies aremissing on a big opportunity.“Simply put, mobile is the future, not just for coupons,and not just for payments or commerce, but for so manyaspects of daily life,” said Dave Kaminsky, an analyst atMercator Advisory Group.“The capabilities offered by smartphones combined withtheir portability enable a level of convenience that mostconsumers are attracted to,” he said. “In terms of couponing, Walgreens was the first retail- er to offer scannable POS coupons to customers who“The ability to search for, obtain, store and use coupons, checked into their stores on foursquare.”all via the mobile device, is just one part of this massivemigration towards the mobile platform.” New beginnings According to Mr. Kaminsky, the next big step for mobileNew innovations coupons is geolocation.Mobile coupons presents a big opportunity for marketersto create incentives to drive user engagement. While check-in based coupons, such as those from four- square, have been available for years, retailers are be-Last year, Walgreens brought mobile coupons to smart- ginning to engage programs that can match consum-phone users as part of the company’s bigger push to en- ers’ interests and preferences with their location at anyhance the shopping experience via its mobile apps. given time to provide them with coupons for merchants in their vicinity that would appeal to them specifically.Cashiers can scan the mobile coupon straight from More marketers could follow in the footsteps of Wal-a user’s smartphone so there is no need to clip or greens and roll out their own mobile coupon plans.print coupons. “Our customers already bring their coupons into theAdditionally, an initiative such as this helps incentivize store,” said Rich Lesperance, director of marketing atconsumers, as well as drive in-store traffic. Walgreens. “It’s natural to take the next step and allow them to recognize these savings them from their smart-“Walgreens is taking steps to innovate on the mobile phones, to give them anywhere, anytime, both with mobile coupons and in other aspectsof their business,” Mr. Kaminsky said. “We have a great deal of interest from our customers and partners,” he said. “We are still experimenting with the“Walgreens enables customers with smartphones to re- number of offers, but so far the feedback has exceededfill their prescriptions by scanning the bar code on their our expectations. “I think there will be more content andmedication bottle, and those without smartphones to do lots of options for customers to access it. The prize willso via SMS,” he said. go to the simplest experience.”PAGE 41 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 39. Mobile coupons: A little less conversation, a little more actionBy Jeffrey SampsonE ven Elvis knew that at some point talk is cheap. The goal today is revenue rather As consumers we are taught from birth to look for than awareness. discounts and deals. After all, only suckers pay fullprice. As marketers, though, we are taught to offer dis- Social media fundamentallycounts only as a means to acquire new customers, on the changed the relationship betweentheory that loyal customers do not require discounts and consumers and brands. Facebook’swill pay full price even in a competitive market. Top 25 consumer brands have more than 330 million fans, while near-That might have been true 50 years ago, but today pro- ly 500 brands have more than 1motions and deals are the primary strategy for consumer million fans. Jeffrey Sampsonbrands to increase revenue. The paper coupon has beenthe granddaddy of deal delivery systems for brands since Consumers no longer quietly form interests and opin-1888. But the times, they are a-changing. ions about the products they have purchased. They now share these impressions with a broad network of friendsConsumers now have iPhone devices that make them and family.savvy and connected, added to a stubborn economicdownturn that motivates them to pursue deals ruthless- As a consequence, demographics take a backseat toly. They encounter brands on a battlefield we call retail, consumer interests in the modern hierarchy of mar-where information flows poorly – or not at all – through keting data.the value chain and market inefficiencies drive prices upand profits down. Information flows far more efficiently over these new lines of transmission, and while brands can seek to driveThe world needs a modern deal delivery system – a online customers into stores, the tools within the socialCoupon 2.0. realm do not travel with the consumer to the final point- of-sale.The last three years were defined by daily deal emailmarketers, but they are not for everyone. These options This is mobile’s chance to shine. As consumers move frommay work well for dry cleaners, restaurants and mas- online discovery to offline redemption, the technology insage therapists, but they are a poor fit for food or bever- their pockets and purses should seamlessly support theage, health and beauty products, consumer electronics process. We are already seeing attempts at exploitingand other items that we purchase every day and mostly this opportunity.through local retail stores. An exciting new technology called near-field com-The game-changer is social media, where consumers munications outfits smartphones with chips thatjoin together in unfathomable numbers – one billion on communicate electronically with retail point-of-Facebook alone. Most major brands have recognized the sale terminals. NFC holds promise, but a large num-promise of engaging with their consumers directly and ber of stakeholders will need to adjust their businessspent the last 15 years building their brand presence on models and payment relationships, which makes thethe Internet. timing uncertain.Social technologies are now deeply woven into the Meanwhile several innovative companies have deliv-fabric of our lives, online communities have achieved ered services to their customers within a closed-loopcritical mass, and monetization tools now allow model in which they control both the product and thebrands to achieve a return on their social investment. retail infrastructure.PAGE 42 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 40. Starbucks, for instance, uses a mobile application and 2D broad-focus mobile code combination to enable customers to link theirstored value cards to their smartphones and leave their Simplicity and utility delight users, while game mechan-cash and credit cards at home. ics reinforce their loyalty with rewards.Likewise, Delta and other airlines now issue boarding Social networks are filling with potential brand ambassa-passes to passengers via mobile apps, removing friction dors who exert influence through word of mouth. Thesefrom the ticketing and boarding process. fans are a brand’s best customers, but the challenge re- mains to convert their conversations into consumption.Data continuity makes this possible. Listen to Elvis. Delight your customers by connecting so-Today we have a unique opportunity to redefine the way cial behavior to mobile coupons for a little more action.that consumers shop. Explore, be creative, and repeat those investments that deliver value. It is now or never. Do not be cruel to yourFor an increasing number of consumers, their smart- fans. Return their burning love with mobile coupons orphone is synonymous with their wallet, and is a place you may end up in heartbreak hotel.that brands should want to be welcomed. Jeffrey Sampson is CEO of Upside Commerce Inc., Seattle.This trend favors personalized mobile experiences over Reach him at 43 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 41. What types of coupons work best for mobile commerce?By Lauren JohnsonM obile coupons have changed the ways that con- mobile point-of-sale systems that scan a bar code sumers expect to receive deals and offers. How- on a user’s mobile device. However, this method can ever, the number of options available to market- be expensive and is not the best fit for some small toers to deliver coupons can be overwhelming. medium-sized merchants.From comparison-shopping to learning about products, In other cases, simply sending out a code that consumersconsumers are willing to receive mobile coupons via a can verbally tell store employees while checking out isvariety of mobile channels such as SMS, applications and the best way to drive a ROI from a mobile coupon, muchmobile bar codes. However, some mobile experts say that in the same way that traditional print coupons work.the best type of mobile coupons are issued and redeemed Mobile loyaltyby merchants and retailers themselves, which helps closethe loop on the initiative and ultimately drive ROI. One of the main incentives for marketers to use mobile coupons is to help build a strong loyalty program and“There’s no real distribution control for these local CRM, and they operate on a closed-loop system,which works well with current mobile devices,” Although smartphone ownership continues to grow,said Steve Horowitz, chief technology officer of many marketers are still relying on SMS to reach, Mountain View, CA. highest number of mobile owners.“On a more limited scale, third party-issued couponsthat link with loyalty cards can also work well in caseswhere retailers have the loyalty card infrastructure,” hesaid. “Otherwise, there are still limitations at the point-of-sale in terms of scanning and redemption technologythat need to be solved for mobile coupons to see evengreater adoption.”Save on mobileIn the past year, brands, merchants and retailers havebeen testing different mobile coupon initiatives to seewhat sticks with consumers.For example, Whole Foods Market recently launched amobile app with its nonprofit work with Whole PlanetFoundation to reward users with in-store coupons forcompleting tasks inside the app.In order to redeem the coupon, users were sent an emailwith a bar code that could be printed out.Part of the challenge of rolling out mobile couponprograms is making sure that all employees and storesare equipped to handle the redemption process. For somebrands, the best way to overcome this is by deployingPAGE 44 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 42. “Now that we’ve reached a tipping point with over 50 percent of Americans owning a smartphone, we increasingly see it as the primary shopping tool for activities including list creation and discovery of products and relevant coupons and offers,” Mr. Horowitz said. “That trend will continue to increase as more consumers rely on their phone to learn about savings, local inventory for products and reminders about the coupons they have available and their expiration dates,” he said. “As the number of people with smartphones continues to grow, we’ll see retail infrastructure and POS systems go through an upgrade cycle so that consumers can have a pure digital experience that provides seamless integration between their phone and the retailer.”In addition to working for both smartphones and featurephones, SMS also gives marketers a way to link theirmobile coupon initiatives directly into CRM efforts.By promising users regular mobile coupons, brands canbuild a database that also gives consumers a clear valuefor opting in to a SMS program.Other examples of mobile coupon programs includefoursquare partnerships that reward consumers forchecking in to a particular store.When it comes to mobile bar codes, many marketers doubtthe effectiveness in driving revenue from the technology.However, if the technology is actively promoted withclear calls-to-action that show consumers how to scana QR code, mobile bar codes can be an effective way togive users an incentive for scanning.PAGE 45 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 43. Case studies on mobile coupon programsBy Chantal TodeS martphones have the potental to be the ultimate in order to receive their free Papa Burger. coupon delivery and redemption tool, ostensibly giv- ing consumers a way to easily store and use coupons The coupons are a unique, one-time use coupon. In orderwhile enabling marketers to track redemption. However, to track coupon redemptions without the need for aretailers face challenges, including fraud prevention and point-of-sale integration, mobile and traditional Webfinding the best way to track redemption. sites were created for A&W employees by 3Seventy and AFA Krause where they could enter the redemption codeDespite the challenges, brands and retailers are flocking on each coupon at the mobile coupons as a way to drive loyalty andincremental sales. In another example, Walgreens recently teamed up with foursquare to roll out a mobile coupon program that letsThe benefits can be worth the effort, with mobile coupon consumers save money on products when they check-inredemption rates significantly higher for some marketers to any location nationwide.compared with other delivery mechanisms, such as email. Consumers can check-in to any Walgreens location“Unlike paper coupons, which are taken from the through foursquare using an iPhone, Android oruser when they are redeemed to prevent overuse and BlackBerry device.fraud, there is no analogy with mobile coupons,” saidDavid Wachs, senior vice president of mobile and Users will then get a unique scannable coupon, whichgeneral manager of Cellit at ePrize Mobile Solutions,Pleasant Ridge, MI.“As such, all mobile coupons require unique couponcodes, which are looked up in real time at the pointof sale,” he said. “However, there is no common set oftools for coupon redemption at the POS, and as suchimplementing a program may seem daunting.”Mobile coupons at workExamples from several marketers show that many arefiguring out ways to overcome the challenges in mobilecouponing to deliver compelling offers to customers withstrong results.For example, A&W quick-service restaurants drove20 percent in revenue this spring via a mobile couponcampaign that offered recipients a free burger. The initialoffer for a free burger was advertised on TV and radioas well as via signage throughout the 126 participatinglocations and urged consumers to text the keyword“BURGER” to the short code 70626 to receive a couponfor a free burger.Recipients needed to show their coupon code to a cashierPAGE 46 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 44. they can redeem at the point-of-sale. International, 54 percent of smartphone users are interested in receiving mobile coupons.Whole Foods Market is also getting into mobile couponsby rewarding shoppers who practice an ecofriendly Upfront work is required to build a strong mobilelifestyle. Shoppers can earn coupons from companies couponing ecosystem and brands should focus onsuch as Organic Valley, Stonyfield and Nature’s Path by choosing a mechanism that works for their workflow andcompleting tasks via an iPhone application designed to their end world poverty through microcredits. “It is not just about slapping a bar code on a textThe right ecosystem message, as many people think,” Mr. Wachs said.Mobile coupons are an increasingly important strategy “What is on the screen is just one step in the mobilefor retailers as consumers use their mobile device to couponing process.comparison shop in-store. “Many mobile couponing clients ePrize works with seeBy delivering a mobile coupon to smartphone shoppers, redemption rates as high as 20 percent or more, andretailers have an opportunity to encourage consumers some claim their redemption rates from mobile couponsto purchase from them instead of going elsewhere. are eight times greater than their emailed coupons,”According to a study earlier this year from BrandSpark he said.PAGE 47 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 45. Proximity and presence in retail mobile marketing: three consumer benefitsBy Jack PhilbinL ocation, location, location has always been real es- tate’s motto, but today, it is especially important for retailers that are striving for true loyalty from theircustomers via mobile. Location-based marketing allows brands to engage with consum- ers anytime, anywhere, providing retailers with opportunities to reach them at – or just moments before – the point-of-purchase. Because of mobile’s personal power and immediacy, it pro- Jack Philbin vides unique and effective ways to deploy timely and time-sensi-tive messages and incentives.In addition, proximity and presence technologies allowbrands to significantly enhance customers’ experiencesby personalizing the information and incentives theyprovide based on their location.Consumers want information that is relevant to theirlives – when they need it.With today’s connected consumers, loyalty is incumbentupon reaching consumers at the perfect moment – notfive minutes after they have left the store or just afterthey made a purchase, which is when most retailers to- vices for location-based information such as restaurantday start tracking customers. recommendations or driving directions in 2011, it is no secret that these technologies could transform theIt is when they are in stores and thinking about making consumer experience.a purchase that matters. While there are numerous consumer benefits that resultCheck-in-type applications such as foursquare have when retailers leverage proximity and presence market-opened many retailers’ eyes to the possibilities of loca- ing, below are a few that, when used properly, can go ation-based marketing, but these only scratch the surface. long way in establishing loyalty and trust:Today’s proximity solutions create a whole new level of 1. Incentives. Giving consumers incentives such as cou-direct marketing opportunities for retailers. pons or special offers keeps them engaged with brands.With an estimated 55 percent of smartphone own- When retailers know exactly where their customers are,ers, according to Pew Research, having used their de- they can send coupons or special offers right before theyPAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 46. For example, sending a product review allows con- sumers to quickly access information via their mo- bile phones in order to make them feel confident in their purchase. By having the information available at their fingertips, they can be sure they are getting exactly what they want from their desired products. 3. Reducing time and distance. If consumers allow re- tailers access to their location, they can provide them with helpful information and deals when they are lit- erally right near stores, reducing the time and distance they need to go to find their desired purchases. This helps to combat “showrooming,” when consumers comparison-shop from their mobile devices while they are in store. Today, retailers are only scratching the surface of what is available to reach consumers where they are and when they need it. As marketers and retailers continue to become savvier, proximity technologies will continue to advance. This will make consumers’ shopping experiences even more comprehensive, unique and specific to their needs. Jack Philbin is co-founder and president/CEO of Vibes, amake purchases or are en route to shopping – both sce- Chicago-based mobile marketing and technology com-narios affect consumers’ purchasing decisions and help pany. Reach him at loyalty with brands.Consumers enjoy rewards, and it is up to brands to maketheir customers feel special in order to pique their inter-est in engaging further in conversations.2. Product knowledge. Shoppers are not just carryingbags in their hands from store to store anymore – theyare shopping with their mobile phones.If brands know customers are seeking certain items –based on previous conversations with them, or whatthey have learned from past purchases, they can sendthem more information about relevant products, entic-ing them to buy.PAGE 49 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 47. How to make a mobile commerce site transactionalBy Lauren JohnsonC racking the nut on how to drive ROI on a mobile Even though simply having a mobile presence is a step in commerce site is undoubtedly a challenge. Howev- the right direction, mobile requires brands to constantly er, more marketers are beginning to think mobile- test and try new things.first about their Web initiatives that generate sales. In addition to constantly updating a company’s mobileMaking a mobile site transactional is about more than efforts, a mobile commerce site is also more likely to bejust loading it with commerce options. Instead, user transactional if consumers are encouraged to use it.experience needs to be a driving force on how to includecommerce aspects. Promotion is a big part of any mobile marketing initiative, but is especially important for commerce if marketers“[Commerce] is both an opportunity and a challenge for want to attach their efforts with an ROI.retailers,” said Kirby Wadsworth, chief marketing officerof Limelight Networks, Tempe, AZ. Marketing a mobile commerce Web site should not just be promoted online, though. Equipping print, television“Mobile adds time and place relevance, encouraging and in-store can be also beneficial and points to the useloyalty and urgency, but also makes price-comparisons of mobile in a multichannel experience.fluid and transparent,” he said. “The winners will be thosesavvy marketers who balance all four P’s – price, place, “Retailers are experimenting with creative ways toproduct and promotion with a new fifth P – presence.” engage the consumer,” Mr. Wadsworth said.Mobile-first mentality “The lesson here is that retailers must take a holistic viewOver the past year, there has been an uptick in the of the digital and physical presence they are projecting innumber of consumers who comparison shop via their the marketplace and have a better understanding of howdevices. For a mobile commerce site to be transactional, consumers are interacting with their digital outlets.”it must give users a clear, upfront value for shopping viatheir handset versus a desktop.Additionally, keeping the experience simple andstreamlined is crucial in holding users’ attentions whenthey are on their devices.According to a recent study conducted by LimelightNetworks, 88 percent of consumers said that page loadtime and detailed product images were two top featuresthat consumers said were most important when accessingcontent via mobile. Although consumers are browsing onmobile, they also want quick access to content.Promote on mobileHaving a mobile commerce site is gaining traction formarketers who want to stay ahead of the curve. However,many brands and retailers still view mobile as an item ona checklist to a comprehensive digital strategy. Once thesite is launched, it is not updated or promoted.PAGE 50 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 48. Billing options on a mobile commerce siteBy Chantal TodeW hile mobile commerce sales are growing they are still small compared to bricks-and-mortar overall sales. One way retailers can help drivemore volume from their commerce sites is by providinga quick and easy-to-use shopping experience, and a bigpart of the equation is offering the right billing options.The growth in mobile commerce suggests that consumersare getting over their concerns about whether or notmobile payments are secure. While this is good news,retailers still face significant challenges offering asimple shopping experience given the small screen sizeof smartphones.“The purchasing experience is the most importantelement of a mobile commerce site,” said Anuj Nayar,director of communications for PayPal, San Jose, CA.“Without an accessible, hassle-free sales process,merchants run the risk of their customers abandoningtheir shopping cart,” he said.“Customers won’t visit or make additional purchases froma mobile site if they have a poor purchasing experiencethe first time they visit.”Reducing cart abandonmentMobile’s smaller screen and keyboard can be cumbersomefor consumers to use if they have to type in credit cardand shipping information. accepts major credit cards, as this is still the primary method of payment.Merchants who leverage existing payment credentials,such as those from PayPal, may help in reducing cart “It is important to have a comprehensive solution thatabandonment since users can make a purchase with just accepts the major forms of payment,” said Drew Sievers,a few clicks. CEO of mFoundry, San Francisco.For example, Amazon has been very successful in mobile “If it’s too niche or new, merchants will see significantin part because all of a buyer’s shipping and payment cart abandonment,” he said.information is already in the cloud and easily accessed,thereby reducing friction in the purchasing process and Other considerations include ensuring that the paymentleading to greater sales. One-click is suited to mobile. scheme runs inline without losing context for the user.While alternative payment methods are growing, it is “Spawning a new page with a different URL would sendalso important for retailers to offer a billing option that off alarm bells for many buyers,” Mr. Sievers said.PAGE 51 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 49. It is also important for retailers to ensure that they will and mobile purchases, but it should appear seamlessbe able to easily mine data from the billing options for the customer.they choose. Transactional data plays a key role in aretailer’s ability to provide targeted marketing that can “Member log-ins, rewards points and past purchasesencourage repeat purchases as well as up-selling and should all be synchronized. Pricing should also becross-selling. synchronized, unless it’s their strategy to offer lower prices online, in which case they can expect ‘mobileHaving access to this data can also help retailers provide showrooming,’ where users browse in person but buya more seamless experience across channels. on mobile.”Leveraging data While there are challenges in crafting a seamless mobileWhichever mobile billing method is chosen, marketers shopping experience, the effort is going to be worth it forneed to make sure that they can leverage the data many retailers given the significant potential for furthergained from that mobile purchase for future customer growth in mobile.communications to encourage repeat purchases andongoing brand loyalty, per Lindsay Woodworth, director PayPal alone expects its mobile payments transactionof marketing and presales at SoundBite Communications, volume to reach $10 billion this year, while parentBedford, MA. company eBay forecasts it will do $10 billion in mobile commerce sales this year.“Retailers need a way to integrate mobile purchase datainto the data profile for that customer in their overall “Allowing customers to make purchases with ease, via aCRM and loyalty programs,” she said. “The actual step- mobile site, puts merchants in a position to experienceby-step experience may be different between online sizeable sales growth,” PayPal’s Mr. Nayar said.PAGE 52 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 50. How secure are mobile commerce transactions?By Chantal TodeO ne of the big stumbling blocks to broader use of mobile devices to make purchases is concern over how secure their personal information is.While consumers are concerned that others can easilysteal their information when making a mobile commercetransaction, there steps that retailers can take to addressthese concerns.Security is an issue that should not be ignored whenit comes to mobile commerce. Smartphone adoption isgrowing and all signs indicate mobile commerce willcontinue to become a bigger piece of the ecommercepie, so the last thing retailers want to do is discouragemobile use because they did not take the necessarysecurity measures.“Security is definitely an issue,” said Scott Snyder,president of Mobiquity, Wellesley, MA. “According to astudy from the Federal Reserve Report, 42 percent ofconsumers see security as the primary reason for notusing mobile payments.“But this is no different than ecommerce in the earlystages before people got comfortable seeing https tooffer up the credit card info online,” he said. “The key isto change the perception that using a mobile phone topay is somehow less secure than a traditional credit card- which we know can be compromised or stolen easily.”Mobile commerce threatsOne in three Americans have already made at least onepurchase via their mobile device, per Mr. SnyderAdditionally, MasterCard has rolled out 350,000 NFC There are other threats in mobile commerce as payment terminals worldwide and consumersin Japan and Europe have been using mobile payments “Transactions using the phone’s browser are susceptiblefor everyday purchases for years without a major to phishing attacks just as transactions on a PC browser,”security incident. Mr. Snyder said.While the growth in mobile payments is encouraging, “Transactions using SMS are vulnerable to similar type ofthere still have some highly visible security lapses. For phishing attacks,” he said.example, a Russian hacker recently made the news bytricking Apple’s App Store to give him in-app purchases “The biggest threat is someone else trying to use a stolenfor free. phone or sniff a mobile payment transaction - like NFCPAGE 53 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 51. - from afar.” that the authentication process is quick and easy to use.Addressing critical concerns “If the authentication process takes too much effort,To address these concerns, retailers should focus then users will eventually bypass,” Mr. Snyder said.on three critical areas to begin with. The first area is “Biometrics offer the lowest effort solution but are stillauthentication, or making sure the users are who they relatively expensive for the average consumer.”say they are. Retailers also need to focus on non-repudiation, or proofThe network/SIM can determine if the device is authentic, that the user made the transaction and cannot disputebut to authenticate the user to the device, retailers can it later. This can be addressed with certificates or digitaluse two-factor authentication such as PIN/Password. signatures that show the user authorized the transaction.However, this is not ideal since these can be compromised.Retailers can also use tokens, which require the user One of the biggest issues for consumers is ensuring thatto enter another number or carry a separate device, or their personal data is being kept confidential.biometrics, such as a fingerprint, iris, face or palm. “Maybe the most critical piece which is ensuring sensitiveBiometrics, while not widely used at the moment, may data related to the user or the transaction is sufficientlybe wave of the future. Apple recently acquired mobile protected,” Mr. Snyder firm AuthenTec and the expectation is that itwill use the company’s fingerprint sensor technology to “End-to-end encryption should be used to protect data ondevelop mobile payments authentication for the iPhone. the device, the connection/link - NFC and Bluetooth - andThe key to gaining consumer acceptance is making sure on the server,” he said.PAGE 54 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 52. The role of wireless carriers in mobile commerceBy Chantal TodeO ver-the-top services and alternative payments threaten to cut wireless carriers out of a meaningful role in mobile commerce unless they take action,such as by reducing fees and offering solutions.One of the key strengths that wireless carriers offer inmobile commerce is a direct billing relationship withsubscribers, a relationship smartphone makers andother players try to take advantage of through carrierbilling. However, carriers typically charge a 30 percentcut for carrier billing, which is limiting their growth inmobile commerce.“Operators need to consider reducing their fees andadding additional payment choices such as bank accounts,cards and alternative payment types for consumers,” saidShailendra Pandey, senior analyst for mobile content andapplications at Informa Telecoms & Media, London.“These, in turn, will bring more revenue opportunitiesfor the operators by building upon existing billingrelationships with consumers,” he said.NFC too far offCarriers have been looking to near-field communicationsas one way to insert themselves into the mobile commerceecosystem.The Isis mobile wallet, which is a joint venture of AT&T,Verizon and T-Mobile, is supposed to be launching in twotest cities this summer.While wide-scale NFC is likely a few years off, mobilecommerce continues to grow and carriers need toact sooner rather than later if they want to play arole here. “NFC services will require large upfront investment and“By driving the adoption of mobile wallets and offering take at least three to four years to reach critical mass oftop-up, content purchases, money transfer, bill payment users and transactions,” Mr. Pandey and increasing subscribers’ comfort level withconducting such transactions, carriers can strengthen “Considering that the immediate short-term strategy oftheir position in the mcommerce value-chain,” Mr. most carriers is to use mcommerce to increase customerPandey said. stickiness, reduce churn and generate incrementalPAGE 55 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 53. revenues, it makes sense to put more focus on utilizing Carrier-based mobile commerce solutions could beexisting top-up and billing systems to drive mobile attractive to merchants not only because of the carriers’remote payments market growth.” existing relationship with consumers, but also because of their experience in dealing with complex data.NFC also is not likely to be a large source of revenuefor carriers, as they will earn little or no transactional By leveraging this relationship and customer data,revenue from their mobile wallets. carriers can find a way to both help merchants in their activities while also protecting consumers.Merchant-oriented solutionsOne way carriers might consider inserting themselves “The ability to read data streams across a customer’sinto mobile commerce is with a mobile wallet tied to day – behaviors - is what carriers do,” said Glenn Pingul,a prepaid account. vice president of products and mobile strategies for Globys, Seattle.“The kind of carrier-driven payments that will berelevant to bricks-and-mortar merchants won’t be “Mobile commerce merchants should consider carrier-carrier billing, which is only designed for micropayments, driven payment solutions because carriers are well versedbut operator-branded mobile wallets featuring carrier in managing complex data – how else do they accuratelyprepaid accounts, enabled by the likes of Visa or rate and bill for all those calls their millions of customersMasterCard, as well as subscribers’ existing credit or make each hour,” he said.debit cards and other payments services,” said GuillermoEscofet, senior mobile content analyst at Informa “Carriers need to leverage the capability they have inTelecoms & Media. managing large amounts of user data, and billing their customers and harness that data and turn it into useful“Payments to online merchants will also be possible information to both help merchants market better tofrom these mobile wallets, subject to online merchants prospective customers while protecting their customersintegrating the wallets’ SDKs into their sites,” he said. from those same merchants.”PAGE 56 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 54. Research on mobile commerceBy Lauren JohnsonM obile commerce will continue to increase both foot traffic and online sales in 2012 and 2013 for retailers. As consumers become more tied to theirmobile devices as a shopping guide, marketers should beviewing the smaller-sized screen as a big opportunity.Here are some mobile commerce numbers thus far in 2012to keep in mind when planning a marketing strategy.1. Ninety percent of the top ten retailers have both amobile site and application, according to a study fromCrossView.2. Pointing to the immediacy of mobile marketing, SMS haseight times the response rate compared to email, says areport from ePrize’s Cellit that measured 1,180 campaignsfrom national retailers.3. A study from Mojiva found that 69 percent ofconsumers rely on mobile to either research, buy or leasea car, showing that consumers are doing more than idlybrowsing on their device.4. Forty-nine percent of retailers claim that the averageorder value on tablets is higher than desktops, accordingto a Research study.5. Showrooming - or the act of consumers comparison-shopping in-store - is a real threat for retailers. A recentstudy from the Interactive Advertising Bureau foundthat 53 percent of mobile users stopped an in-storepurchase after finding a better deal or more informationvia their device. 8. Television offers mobile marketers more than just engagement. A study between Ignited, Nielsen Co. and6. Twice as many merchants — 19 percent — plan to AdColony found that purchase intent increases 72 percentinvest $100,000 or more in mobile this year versus last when an ad is served across television, smartphoneyear, according to a report from the e-tailing group. and tablet platforms.7. Mobile email rates continue to grow, especially 9. Mobile bankers are making complex transactions viafor retailers. A study from Knotice found that open their devices. A Juniper Research study predicts that 80rates on emails from retailers doubled year-over-year. percent of mobile bankers will pay bills via their devicesMobile email open rates for the study came in at 28.1 by 2016.percent — indicating that email is a crucial part of amarketer’s strategy. 10. When it comes to search, it is all about location forPAGE 57 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 55. mobile users. Sixty-four percent of tablet owners usetheir device to make weekly searches, per a study fromLocaleze and 15miles. In turn, 86 percent of users buysomething from their most recent search.11. Showing the potential of locally relevant advertising,21 percent of mobile users search for coupons via theirdevices while in a store. Additionally, 75 percent aremore likely to take an action after seeing a location-specific message.12. Fifty-four percent of smartphone shoppers surveyedby BrandSpark International said that they wereinterested in using mobile coupons. The same studyfound that although 77 percent of participants knewabout QR codes, only 19 percent of those users haveused them to access product information. 13. This past Black Friday, mobile made up 18 percent of Christmas Day and 14.3 percent of Web traffic, according to findings from IBM Coremetrics. Given the growth of mobile, this number is likely to increase significantly for the 2013 holiday season. 14. A recent study from comScore claims that mobile banking app usage grew 74 percent year-over-year in 2011, representing 16 percent of mobile users. Going forward, this percentage is poised to grow with consumer education and more sophisticated users. 15. Although mobile payments have been slow to gain traction, the potential for it to affect small purchases is high. A Juniper Research study found that the number of mobile users who pay for metro rail or bus tickets via NFC will reach 13 percent in 2016 compared to less than one percent in 2011.PAGE 58 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 56. Mobile commerce in a multichannel environmentBy Lauren JohnsonM obile has the unique ability to work across multi- ple channels and, over the past year, the medium has increasingly been used by retailers and mar-keters as a stronger aspect of a multiplatform strategy.For many retailers and brands, mobile is part of a broadermarketing ecosystem that impacts multiple channels -both digital and traditional. In this way, mobile servesas more of a loyalty channel instead of a standalonemedium, according to some mobile experts.“While mobile is a channel, it is best utilized when it isweaved through your other offerings and initiatives,” saidDan Burcaw, founder/CEO of Double Encore, Denver, CO.“Mobile, at its core, is a loyalty channel — it should notbe your main focus for new business, lead generation oracquisition,” he said.“Use mobile to enhance your offerings to yourexisting crowd that is most likely away from thedesktop environment.”Loyalty toolIf used correctly, brands can use mobile to increaseloyalty with specific multichannel campaigns. Forexample, Express recently used mobile bar codes and However, in order to participate in the text messageSMS as a way to bring another level to a piece of component, users had to first opt-in to Express‘direct mail. SMS program.Consumers could text in a keyword to a short code to The campaign not only tied its mobile loyalty programbuy products from the piece of mail via a mobile site. into a traditional marketing channel but also gave users an incentive — shopping — for texting. Mobile can also be used to enhance the in-store experience to build loyalty, such as promoting a rewards program. Adding a mobile component — such as an application — to let users manage their account is a great way to promote a mobile offering. However, mobile has to have an added value to keep consumer engagement high.PAGE 59 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 57. channel that could be enhanced by mobile. To help promote an app, a call-to-action could be used during a TV ad to encourage users to download an app. Although it is important to test new marketing efforts, new brands can also learn from brands that have a longer history in mobile, according to Mr. Burcaw. “Do not look to go out and reinvent the wheel too much, because you will create something that does not mesh with your other products and initiatives,” Mr. Burcaw said. “How can you use mobile to provide tools and relevant functionality to enhance your other digital and even traditional initiatives?” he said. “Mobile is the ideal platform to stop viewing marketing as a one-way form of advertising and a way to start seeing it as a true, long-term relationship builder between the business and the consumer.”Budget for mobileOne of the hurdles that brands face when gettinginto mobile is finding a way to include mobile into amarketing budget.However, by viewing mobile as part of a multichanneleffort, brands can implement tactics into specificcampaigns to test.Take a magazine print campaign, for example.As a stepping stone into mobile, a marketer could includea QR code that lets consumers scan a print ad to learnmore about the product or company.Television is another example of a traditional marketingPAGE 60 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 58. Legal developments affecting mobile commerceBy Michael B. Hazzard and Jason A. KoslofskyS everal legal developments over the past year have solve, if successful, marketers may pay lower pric- the potential to dramatically affect individual mo- es for short codes and face less interference by bile campaigns and the industry, as a whole. wireless carriers.Court decisions, private lawsuits and Federal Communi- Additionally, the TCPA has also arisen in the con-cations Commission actions have the potential to affect text of group texting applications, which continueyour mobile campaign both positively and negatively, to attract users, while also attracting lawsuits fromand should not be ignored. plaintiffs’ lawyers.A recent ruling out of a Chicago federal court concluded These lawsuits claim that the text messages sentthat marketers need to be careful when telephone num- by a group leader are not sent with the consent ofbers change because a text message sent to a new sub- the recipients.scriber of that telephone number might be consideredunsolicited under the Telephone Consumer Protection The CTIA has also recently instituted strict guidelines forAct (TCPA). group texting, which have the potential to severely limit the growth of those apps.The court found that “called party” in the TCPA meansthe current subscriber to the called number at the timethe call is made, regardless of whether the prior sub-scriber provided consent.The FCC has already found that the TCPA applies to SMS,finding that it is a “call.”Under this ruling, a business faces potential TCPA liabil-ity if the business makes a call to the new subscriberrelying on the express consent of the prior subscriber.Interestingly, the court also reasoned that there cannotbe long-term consent to contact any phone number, be-cause no one has a property right in a phone number.Another recent federal class action complaint filed inNew York on behalf of short code holders challengesthe short code system as anticompetitive, and coulddramatically affect the entire mobile marketing industryif successful.The complaint alleges that the costs associated with theshort code system are artificially inflated and that thewireless carriers have combined in an unlawful monopo-ly to enforce those artificially inflated prices.Although the suit will probably take some time to re-PAGE 61 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 59. USF supports universal telephone and now broadband service for underserved and low- income populations. Companies pay a portion of “telecommu- nications” revenue to USF. Including SMS could mean that providers pass USF changes through to end users. And, if SMS is classified as a telecommuni- cations service, carriers and providers may have to treat SMS more like a telephone call, including no longer monitoring content. Finally, the end of a major clash involv- ing a premium SMS company shows the risks and rewards of premium SMS and mobile marketing. Two cases arose last year when Jawa was accused by Verizon and the Texas Attorney General of charging consumers for premi- um SMS services without fully disclosing the charges. Jawa recently settled both litigations by promising the Texas Attorney General that it would offer refunds if requested, pay TexasThe Mobile Marketing Association’s requirement to send $2 million, establish a compliance program, and submitconfirmatory, opt-out text messages in response to a to audits.“STOP” request has also faced lawsuits under the TCPA,but a mobile marketing company has asked the FCC to In settling with Verizon, Jawa promised to obtain Veri-bless the practice. zon’s permission for premium messaging campaigns and comply with MMA guidelines.Most commentators came out in favor of confirmatory,opt-out text messages and the MMA’s requirement. The disputes show that any perception that a company is not following MMA or carrier guidelines can lead toShould the FCC agree that the practice is not unlawful litigation.under the TCPA, mobile marketers will face less uncer-tainty with regard to their campaigns. The settlements show, however, that companies can work out disputes, although the costs can be substantial.The FCC is also considering whether to include SMS inUniversal Service Fund (USF) payment requirements, Michael B. Hazzard and Jason A. Koslofsky are attorneyswhich may impact the cost of doing business for mobile at Arent Fox LLP, Washington. Reach them at hazzard.mi-marketers and the regulatory status of SMS. and 62 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 60. The legal do’s and don’ts of mobile commerceBy Chantal TodeA s options for mobile commerce expand, the le- gal issues are becoming more complex. While it is getting more challenging to stay up-to-date onthe latest legal do’s and don’t s in mobile, there are a fewbasic steps that need to be taken to ensure that market-ers do not run afoul of consumers, lawyers or regulators.It is not only consumers that merchants can run afoulof if they do not make the effort to ensure that theirmobile strategies are up-to-date when it comes tosecurity and privacy issues. Increasingly, regulators arekeeping a close eye on marketers’ efforts in mobile.Patent infringement can be a concern, somethingthat Starbucks, Expedia and Capital One found outearlier this year when they were sued by MaximIntegrated Products for allegedly infringing its mobilepayment patents.“As mobile marketing continues to evolve, and particularlyas mobile commerce continues to emerge, the legal issuesare becoming more complex,” said Linda Goldstein, chairand partner at Manatt, Phelps and Phillips LLP, New York.“Mobile is certainly a platform that is evolving muchmore quickly than the law is able to keep pace,” she said.“Marketers will thus be faced with the challenge ofattempting to apply laws and regulations to marketingplatforms that were not contemplated when these lawswere written.” “The law has now made it clear that text messages are considered a call,” Ms. Goldstein said. “That meansOpt-ins are key that you cannot send unsolicited text messages to aThe Mobile Marketing Association guidelines have proven consumer about an offer, promotion or other advertisingto be a good source of guidance for marketers looking to matter unless the consumer has expressly opted in tocomply with the letter of the law as well as to implement receive those messages.”best practice that will minimize consumer confusionand dissatisfaction. Marketers should be particularly wary of list brokers who claim to have opt in lists of consumers who have agreedThere are several additional steps merchants can take to to receive such messages.protect themselves when it comes to mobile commerce.One of the most important legal don’ts is making The opt-in to receive text messages must be campaign-unsolicited calls or texts to a mobile phone without the specific according to the Federal Trade Commission andconsumer’s expressed consent to receive such calls. self-regulatory guidelines provide.PAGE 63 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 61. Proper disclosure challenge because of the smaller screen sizes. However,Another legal issue that merchants face in the mobile regulators have indicated this is not a legitimate excuse.arena is privacy. In particular, there is growing concernabout the data that mobile applications are collecting “Marketers presenting offers through the mobile platformabout users and if the disclosure adequate. must devise mechanisms to make proper disclosure to consumers of all material terms and conditions of theThis means that merchants need to ensure their apps, as offer that is being advertised,” Ms. Goldstein said. “Inwell as any third-party apps they are partnering with, some cases, this may require directing the consumer tohave proper privacy policies that disclose what type of a Web-based mobile page on which the disclosures canpersonal information is being collected and how that be made.”information will be used. If merchants are directing any of their marketing or apps“The FTC has already brought several privacy cases to children under the age of 13, they also need to makeagainst the developers of mobile apps who have failed to sure they have a mechanism in place to obtain parentaldisclose what type of information is being collected and consent before any personal information is collected. Itwith whom it is being shared,” Ms. Goldstein said. is also necessary to ensure that minors are not making purchases without their parent’s approval.“These privacy sensitivities are particularly heightenedwhen location-based information is being collected and “Marketers of products directed to children shouldthe need for adequate notice and consent is heightened,” ensure that they have procedures in place to complyshe said. with the Children’s Online Privacy Protection Act as the FTC has made clear that this law applies to mobile appsProviding the proper disclosures in mobile can be a in a manner equal to Web sites,” Ms. Goldstein said.PAGE 64 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 62. Mobile commerce: Your customers are demanding itBy Jared FriedmanI t was not long ago when the thought of shopping on a help compete with online merchants who may be under- mobile phone was only imagined as a scene from the cutting your prices. Jetsons. Today, thanks to the wonders of smartphonesand mobile applications, shopping on a mobile device is Use mobile coupons. The consulting firm Accenture foundsimple, intuitive and even fun. that 73 percent of consumers find it useful to receive an instant coupon as they pass by an item in a store. For some retailers, mobile de- vices are now making business With apps such as Yowza, you too can compete with the more challenging. Those who are big box retailers. Yowza enables stores to promote their embracing technology are capi- mobile coupons to shoppers who are nearby. talizing on a chance to build a stronger relationship with their Use mobile coupons to attract new customers with lo- customer. cation-based promotions and incentivize shoppers to spend more. Research shows that consum- ers are begging businesses to Additionally, re-target customers who may not be ready Jared Friedman better integrate mobile devices with the shopping experience,but stores are not jumping on board fast enough. In aMercator Advisory Group study, 55 percent of consum-ers express an interest in mobile coupons, but only 10percent have actually received one from a merchant.Whether you are an established bricks-and-mortar storewith a loyal following or a new Web site focused on us-ing ecommerce to sell the hottest the product on themarket, you need to embrace mobile commerce.If not, your business could become as antiquated as thelandline telephone.Bricks-and-mortar businessesUnderstand that your customers are using smartphonesto compare pricing while they are shopping in your store.Pew American & Internet Life Project indicates that 52percent of adult mobile phone owners used their deviceswhile in a store to get help with purchasing decisionsand that number is only growing.Clearly explain your pricing strategy and illustrate theauthenticity behind your product.Highlight your product expertise or return policies toPAGE 65 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
  • 63. to buy. Internet retailers have profited tremendously selecting products. Ipsos found that 60 percent of mobilefrom re-marketing – showing ads for their products buyers make purchases from the comfort of their ownwhen a user leaves their site. Bring the same sales tactic home, not on their the real world. When a shopper walks into your store,capture their information by signing them up on an in- Go head-to-head with bricks-and-mortar stores. Know-store iPad or re-direct them to your mobile-friendly site ing that consumers are using their mobile devices to lookto register for your newsletter. for deals while they shop, make sure you show up when someone searches for a specific product.Armed with their email address, you can now reel themback in at a later date with seasonal sales or preferred Add product names, SKU numbers and other detailed in-customer invite-only events. formation to your mobile Web site to help you show up with a better placement on search engines.EretailersUse responsive Web design. Many businesses have never Also consider registering as a Google merchant to attractseen how their Web site looks on a smartphone. mobile shoppers focused on Google’s product-displaying Shopping feed.Many times a site can look normal on a computer andthen appear disorganized and challenging to use on a Turn your customers into sales people. Online satisfiedmuch smaller screen. Make sure your Web site is legible shoppers can often be your biggest fans and brand am-and easy to navigate on a mobile device. Simplify the bassadors. Get them to review your products and helpcheckout process and use large buttons to assist with you sell more. A Nielsen study discovered that 32 percent of smartphone owners read customer reviews on their mobile devices. User ratings and reviews can be the secret to converting a mere to someone who actually opens their wallet. Best of all, incorporating Google’s micro-data can help search results stand out and take up more real estate on a small mobile device screen. Adding micro-data to your Web site can help icons such as stars and prices show when users are searching for products. More real estate equals a higher probability of getting a click. It is clear that mobile shopping is already going strong and will be growing exponentially in the coming years. Retailers that jump on the bandwagon now will be the companies in the best position to dominate the promis- ing space. ABI Research predicts that, by 2015, mobile shopping is predicted to be a $163 billion worldwide business. What percentage of that will be yours? Jared Friedman is a marketing strategist at Blue Fountain Media. Reach him at 66 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012
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