Kontagent: 2013 Mobile sophistication & strategy study May 2013


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Kontagent: 2013 Mobile sophistication & strategy study May 2013

  1. 1. 2013 MobileSophistication andStrategy StudyEXECUTIVE BRIEF
  2. 2. 2013 Mobile Sophistication and Stratgey Study | 2Rush Into Mobile at Your Own PerilIn early 2013, marketing executives across a wide range ofindustries were asked about their approach to mobile, theirperformance so far and future plans. The findings from more than1,300 respondents have been put together in a comprehensiveMobile Sophistication and Strategy Study, produced byEconsultancy in association with Kontagent.The full report examines the capabilities, trends and priorities of“mobile mainstream” companies, as well as businesses definedas “mobile-first” due to their primary business focus on the mobileplatform. Here are the findings.
  3. 3. 2013 Mobile Sophistication and Stratgey Study | 3Companies Are Too Quick to Pull theMobile TriggerThe report shows that mobile is a top concern for all enterprises. While this is good news, theenthusiasm is forcing many to launch their mobile programs without key pieces of strategyand technology in place. Most companies have responded to the growth in mobile with ad-hoc development in a rush to go live, instead of taking the time to think through a completemobile strategy and clearly define objectives.Not surprisingly, mobile-first organizations are more advanced than their mobile mainstreamcounterparts. While only 25 percent of mobile mainstream organizations report having a “well-defined mobile strategy,” almost two-thirds (64 percent) of mobile-first organizations reportedthe same (Fig. 1). This disparity is largely due to the fact that mobile-first companies rely soheavily on mobile visitors, as opposed to other channels, for continued success. Indeed,mobile-first businesses report that “acquiring new customers” and “building new revenueFigure 1: Which of the following apply to your mobile programs?0% 40% 60% 80%45%45%70%64%64%0%Only 25% of mobile mainstream companies report having a well-defined mobilestrategy. Less than a third track or report mobile KPIs.
  4. 4. 2013 Mobile Sophistication and Stratgey Study | 4streams” are their top goals for mobile. Mobile mainstream organizations on the other hand,which aren’t as focused on the top-line impact of mobile, report “brand engagement/loyalty”and “needing to stay competitive” as their primary goals.Agency respondents are quick to suggest that most of their clients are far behind where theyneed to be with their mobile programs (Fig. 2). For example, less than 25 percent of agencyrespondents believe, that companies grasp the impact of their customers’ transition tomobile devices. Agencies were particularly critical of the lack of measurement and analyticscapabilities, such as collecting data on user behavior by platform, the application of businessintelligence to mobile programs and channel attribution analysis.Figure 2: Thinking about the industry in general, do you agree or disagree with thefollowing statements?Only 15 percent of mobile mainstream respondents say that they’re looking at how mobilesites fit into the attribution equation in both directions, compared to 46 percent of mobile-firstrespondents. For example, in retail mobile is often considered a tool that feeds interestedconsumers into stores and desktop sites. But without reliable attribution data, a companycannot accurately track how many of those purchases came as a result of mobile.100%80%60%40%20%0%Most marketingorganizations have astrategy around theirmobile programsCompanies have generallyinvested in measurementand analysis for theirmobile appsCompanies have generallyinvested in measurementand analysis for theirmobile sitesMost organizations graspthe impact of theircustomers’ transition tomobile devices27%15% 19% 15%54%19%54%63%60%25%28%22%NeutralDisagreeAgreeMost companies have responded to the growth in mobile with ad-hocdevelopment in a rush to go live, instead of taking the time to thinkthrough a complete mobile strategy and clearly define objectives.
  5. 5. 2013 Mobile Sophistication and Stratgey Study | 5Figure 3: How would you rate the customer experience of your mobile programs?Mobile Customer Experiences Are Farfrom OptimalCompanies that miss strategic pieces to a mobile strategy will find it impossible to provide anoptimized mobile experience for their customers. When asked how they’d rate the customerexperience of their mobile programs, more than half (56 percent) of respondents rated their mobilesites average or below, 37 percent said the same for their tablet apps and 36 percent echoed thesentiment about their smartphone apps. Only 11 percent (tablet apps), 9 percent (smartphoneapps) and 6 percent (mobile sites) of respondents called their programs “state-of-the-art.” (Fig. 3)60%45%30%15%0%AwfulMobile website Smartphone appTablet app2 3 4 Average 6 7 8 9 State ofthe art3%2% 2%1% 1%4% 4%3%5% 4% 4%44%26%27%11%8% 7%13% 13%20%11%18%24%2%8%10%6%9%11%0%Part of the problem is that many companies that move into mobile development too quicklyend up with experiences modelled on their existing desktop sites (Fig. 4). Only 42 percent ofmobile mainstream respondents say that their mobile apps offer experiences that are “quitedifferent” or “completely different” from their desktop experience. This trend is particularlyalarming given the difference in screen size, native device and OS capabilities combined withthe difference in how consumers interact across screens.More than half of respondents rated their mobile sites below average
  6. 6. 2013 Mobile Sophistication and Stratgey Study | 6Of greater concern is that most organizations aren’t adapting their mobile apps to the needsof their customers and prospects. Only 32 percent of mobile mainstream respondents aremaking changes more often than quarterly, in stark comparison with nearly 70 percent ofmobile-first companies.Figure 4: To what extent is your mobile app experience similar to the desktopwebsite experience?45%30%15%0%33%15%3%30%27%14% 14%20%42%3%Exactly the sameexperienceAlmost the sameexperiencesExperiences havesome differencesExperiences arequite differentExperiences arecompletely differentMobile mainstreamGiven the difference in screen size, this trend is an interesting topic on responsive design.
  7. 7. 2013 Mobile Sophistication and Stratgey Study | 7Mobile Readiness and Data SavvinessAre Keys to SuccessWhile mobile-first companies tend to be significantly more data driven than their mobilemainstream peers, this study reveals that even they have room for improvement.Highlighting answers from 15 selected questions, Kontagent developed a Mobile CustomerIntelligence Quadrant (MCIQ). MCIQ measures an organization’s mobile readiness (X-axis)and data collection and usage sophistication (Y-axis). Most mobile mainstream companiesare below average in each category. And most mobile-first companies are falling short when itcomes to data handling.Mobile ReadinessDataSavvinessMobile ReadinessDataSavvinessFigure 9: Mobile Sophistication – Mobile MainstreamFigure 10: Mobile Sophistication – Mobile First
  8. 8. 2013 Mobile Sophistication and Stratgey Study | 8Mobile Sophistication by IndustryGamesThe clear leaders in mobile, gaming companies are currently receiving trafficand revenue from mobile that represents where most companies will be inthe not-too-distant future.Financial ServicesWith a few exceptions, financial services companies lag behind othersectors. Those that provide a poor experience or an insufficient set of toolsare losing customers to the fast movers.RetailLarger retailers are benefiting from top-tier data handling and rapiddevelopment cycles, while smaller companies often lack the functionalityand targeting to rapidly increase sales.TravelTravel services companies are good at collecting and working with data.However, development cycles tend to be slow and mobile experiences tendto be too similar to the desktop.
  9. 9. 2013 Mobile Sophistication and Stratgey Study | 9ConclusionMobile is a commercial platform that’s outpacing any historicaladoption curve, so it’s vital that organizations take more than ashotgun approach to it. Customer data is key. Companies mustlearn to integrate data into every business decision and use it tobuild deep, engaging mobile experiences that maximize customerlifetime value and loyalty. As mobile traffic builds, understandingeach customer’s unique mobile journey will be essential tocapturing success in the domain.To learn more about how to succeed at mobile, request a copy ofthe complete 2013 Mobile Sophisitication and Strategy Study byemailing ksuiteinfo@kontagent.com
  10. 10. 2013 Mobile Sophistication and Stratgey Study | 10Kontagent can help you avoid themobile trap.Remember when consumers first beganmoving to the Web and businessesrushed in to capture that online market?So many of them didn’t have a solidplan--and failed miserably. Now, we’reseeing the same blind rush into mobile.Are you falling into this trap?As you read in our 2013 MobileSophistication and Strategy Study,two-thirds of brands are investing moreheavily in mobile but admit they don’tknow how to meet mobile consumerneeds. Furthermore, less than one-thirdeven know the appropriate metrics theyneed to track and measure in order togrow their mobile business channels.In response to these trends, Kontagent has developed a mobile customer intelligencesolution that hundreds of businesses depend on to create some of the most successfulmobile experiences. In fact, many of our customers are consistently top-ranked in the AppleApp Store and Google Play because of their dedication to making their data work harder forthem.Mobile has significantly shifted consumer expectations. We’re excited to partner with you tomeet them.To request a demo, email ksuiteinfo@kontagent.com.