The 21 multi-channel stats you need in your life
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Oxygen8 research cover: - The impact of multichannel marketing on customer-business engagement not just up to the point of the first purchase, but throughout the customer lifecycle - Key channels pre- and post-engagement, and pre- and post-purchase - The impact of social media - How engagement drives loyalty and spend uplift - The payment opportunity - What a successful multichannel mobile marketing strategy looks like
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The 21 multi-channel stats you need in your life
- 1. 1 The 21 multi-channel stats you need in your life
- 2. 22 Global provider of multi-channel engagement solutions We are passionate about using technology to enable companies to interact more effectively with their customers Established in 2000 Turnover more than £90 million p.a. & operating profitably Offices in 10 different countries Operating in over 27 different countries Members of: Our Awards:
- 3. 33 Multi-channel solutions, made simple
- 4. 44 The challenge facing businesses A growing number of channels… creates an opportunity for brands to engage more effectively
- 5. 55 The research covers • The impact of multichannel marketing on customer-business engagement not just up to the point of the first purchase, but throughout the customer lifecycle • Key channels pre- and post-engagement, and pre- and post-purchase • The impact of social media • How engagement drives loyalty and spend uplift • The payment opportunity • What a successful multichannel mobile marketing strategy looks like
- 6. 66 Cutting through the noise 30% of UK mobile consumers are already connected with as many as 10separate brands
- 7. 77 Cutting through the noise Preferred channels to connect, by sector: Opt-in SMS is the preferred channel over apps in the Logistics sector (deliveries, couriers, distribution). Mobile shoppers also expressed a preference to be communicated with via opt-in SMS. Website was identified as consumers’ preferred channel to connect, across all sectors with the exception of gaming, where apps were preferred.
- 8. 88 The sectors doing it well Consumers’ top 5 sectors to connect with are: Retail Gaming Financial Transport Food & Drink 72% of mobile shoppers in the UK are connected to retailers via their mobile device
- 9. 99 Maximizing the post-connection opportunity More channels = more opportunities to connect
- 10. 10 Getting Social 1. There are 37.8 million social media users on mobile in the UK 2. Of these, only 7.5 million mobile users will connect with a business over social media 3. If businesses deliver relevant and engaging content this increases to 8.4 million
- 11. 11 However… Consumers would rather receive an SMS or voice call than a communication from businesses via social media (in fact social ranked 5th as the preferred channel for receipt of a business communication).
- 12. 1212 A bright future for mobile engagement • Of the 17 million mobile users, over one-third of people claim the more engagement they have with a business the more money they are likely to spend with them • The remaining 11.7 million mobile users state that the engagement they experience with a business impacts their purchasing decision-making process in a positive way • Businesses take a positive view with 14% believing the more engagement they have with their customers, the more money they are likely to spend • A further 49% believe engagement with their customers over mobile influences their decision-making process in a positive way.
- 13. 1313 The transformative payment opportunity • The current size of the UK market - 31.4 million mobile users make payments on their mobile device
- 14. 1414 The transformative payment opportunity • Businesses are missing out - 57% of businesses in the UK are yet to process payments made on a mobile device • Changing consumer behaviour - One quarter of mobile users would increase the propensity to purchase on their mobile device if they could make payments directly via their mobile device or pay-as-you go account.
- 16. 1616 The customer-businesses disconnect • A majority 58.5% of businesses say frequency increased in a good way post- purchase with only 23.9% of consumers agreeing. • A further 17% of consumers said the increased level of communications had a negative impact on their relationship with the brand. • Only ¼ of mobile users that connect with businesses are experiencing increased relevance in their communications post-purchase, • However, businesses reported increased relevance for the same scenario at 67%.
- 17. 1717 Engagement breeds loyalty • Relevant and on-going engagement post-purchase will result in 5.3 million people increasing their spend • This rises to over 8 million by the fifth purchase
- 18. 18 Expanding payment options Engagement over mobile encourages around 11% of the connected mobile universe to spend more with that business. A further 24% of mobile users would increase their repeat spend with businesses if there were more mobile payment options, such as carrier billing
- 19. 1919 Research conclusions Over a sustained period of time, customers want businesses to engage with them using email, website and SMS over their mobile device. This is “old school” digital marketing on the latest device. For businesses, voice calls remain the number one channel for them to communicate with their customers. To develop an ongoing engagement, email, website and social represent the primary channels, with apps and messaging playing a secondary role.
- 20. 2020 Research conclusions To drive engagement and ensure their connected mobile customers become brand advocates, SMS and email must play a central role upon which they structure their multichannel mobile marketing strategy. The majority of businesses must transform ineffective communications in to compelling engagement and reverse the decline of brand advocates and the growing percentage of ‘neutral’ connections. Expanding the percentage of brand advocates is crucial for businesses to capitalise on the mobile payment opportunity. This will be further enhanced by businesses offering multiple payment platforms at the point of purchase to meet their customers’ needs.
- 21. 21 Want to know more? Download our full report Thank you 12th Floor, Lyndon House, 58 - 62 Hagley Road, Birmingham, B16 8PE, United Kingdom +44 808 206 0808 info@oxygen8.com
Editor's Notes
- Consumers do want to be able to reach out to businesses socially, however they would rather receive an SMS or voice call than a communication from businesses via social media (in fact social ranked 5th preferred channel for receipt of a business communication). This change can be attributed to whoever initiates the communication.
- Global technology provider of multi-channel engagement solutions Established in 2000 Turnover more than £90 million p.a. & operating profitably Over 200 staff Offices in 11 different countries Operating in over 27 different countries
- We’re passionate about providing smarter choices to make your marketing and communications as easy as possible. We focus on the technology that delivers results – multi-channel engagement, voice and payment solutions. Our technology platforms are packed with features and uses designed specifically to help your business performance and operations. Our backstage teams are there to support you around-the-clock, from managed services and customer care to technical support and full compliance – giving you peace of mind. With advanced, scalable functionality and real-time reporting & analytics, every campaign at every touch-point is focused for better engagement.
- [last O8 slide] The proliferation of marketing channels, has created a scenario where brands can communicate with their customers across all channels at any stage of the customer lifecycle, But unfortunately, most brands are struggling to transform this communication into meaningful engagement. Which is why O8 have collaborated with mobilesquared to uncover the current state of the UK market and shed some light onto how consumers want to be treated and how brands are actually treating them.
- The report you all have in front of you will explore: The impact of multichannel marketing on customer-business engagement not just up to the point of the first purchase, but throughout the customer lifecycle Key channels pre- and post-engagement, and pre- and post-purchase The impact of social n channel communication How engagement drives loyalty and spend uplift The payment opportunity What a successful multichannel mobile marketing strategy looks like But more importantly, and I'm sure you’ll discover this once you’ve had time to digest the research, the report sets out to pinpoint the true value of engagement, and how it directly impacts on brand loyalty and customer spend. So without further adieu
- The sheer volume of competition for consumers’ attention (47% of UK mobile consumers are already connected with as many as 10 separate brands) also means that brands must use multiple channels in order to give themselves more opportunities to cut through, yet many don’t fully exploit the array of available channels.
- There is a significant disconnect between channel communication which often leaves customers frustrated and compromises sales. As we are operating in the age of the consumer, its not surprising that the research has identified customers prefer to receive opt-in SMS messaging when tracking deliveries. Customers’ time is precious and real-time communication is becoming increasingly important, businesses that are unable to communicate with their customer in the way they desire will see custom go elsewhere.
- Consumer connectedness via mobile devices somewhat mirrors this, as according to the research 72% of mobile shoppers in the UK are connected to retailers via their mobile device. After retail, the sector with the greatest penetration of connected mobile users is gambling and casino, followed by financial.
- Typically consumers use 2 channels to monitor and stay up-to-date with brands, but after they have provided contact information such as mobile number, email address or followed them on Twitter, the number of channels increases to 3. This channel extension is significant as it effectively expands the marketing funnel beyond websites and email into more direct media, such as social, apps, games, and messaging. Driving this connection with businesses is the consumers’ desire to receive discounts in exchange for sharing information about themselves. Clearly, this is the data exchange that has developed between a business and its customer base.
- More businesses use social media as part of their multichannel marketing mix than email: But as a direct means of communicating with customers, social media has its limitations. There are 37.8 million social media users on mobile in the UK, however businesses at present have a social media ‘ceiling’. The reality is that of these, only around 7.5 million mobile users will connect with a business over social media, rising to 8.4 million should the user view relevant and engaging content from the business.
- Consumers do want to be able to reach out to businesses socially, however they would rather receive an SMS or voice call than a communication from businesses via social media (in fact social ranked 5th preferred channel for receipt of a business communication). This change can be attributed to whoever initiates the communication.
- Engagement on mobile looks set to prove very impactful for businesses. Over one-third of mobile users view engagement with businesses over their mobile device positively. This equates to around 17 million people in the UK that will make a purchase based on a positive engagement with a business on their mobile phone provided the communication has relevance. Not one business believed that mobile engagement with customers would have a negative impact on purchasing behaviour
- The ability to deliver multichannel marketing campaigns over the mobile device is becoming critical because more and more users are completing transactions on their mobile. An astonishing 57% of businesses in the UK are yet to process payments made on a mobile device, which suggests that more than half of businesses in the UK are falling behind consumer behaviour and jeopardising potential revenue by not delivering a consistent experience on the same platform or device throughout the sales process. But this opportunity could be increased significantly as the need arises for alternative payment platforms. One quarter of total mobile users (11.7 million) would increase the propensity to purchase on their mobile device if they could make payments directly via their mobile device and onto their mobile bill or pay-as-you go account, otherwise known as carrier billing. For industries where small-ticket items are frequently purchased, such as take-aways and bars, this could be revolutionary. Of the 16.8 million people that connect with take-aways, restaurants and bars in the UK over their mobile phone, engagement will already potentially increase spend for 11% of users. When considering the research suggests the average mobile user spends less than £20 per year (£18.97) on mobile transactions, uncapping carrier billing (currently capped at £30 per day) could fundamentally transform people’s purchasing behaviour, and exponentially increase the typical mobile users average annual spend.
- The ability to deliver multichannel marketing campaigns over the mobile device is becoming critical because more and more users are completing transactions on their mobile. An astonishing 57% of businesses in the UK are yet to process payments made on a mobile device, which suggests that more than half of businesses in the UK are falling behind consumer behaviour and jeopardising potential revenue by not delivering a consistent experience on the same platform or device throughout the sales process. But this opportunity could be increased significantly as the need arises for alternative payment platforms. One quarter of total mobile users (11.7 million) would increase the propensity to purchase on their mobile device if they could make payments directly via their mobile device and onto their mobile bill or pay-as-you go account, otherwise known as carrier billing. For industries where small-ticket items are frequently purchased, such as take-aways and bars, this could be revolutionary. Of the 16.8 million people that connect with take-aways, restaurants and bars in the UK over their mobile phone, engagement will already potentially increase spend for 11% of users. When considering the research suggests the average mobile user spends less than £20 per year (£18.97) on mobile transactions, uncapping carrier billing (currently capped at £30 per day) could fundamentally transform people’s purchasing behaviour, and exponentially increase the typical mobile users average annual spend.
- Businesses serious about developing a lasting relationship with a customer on their mobile, would have used the purchasing process to capture data on the customer and applied it to on-going communications to drive repeat custom. The research suggests this is not happening, or is n Businesses are uncertain about which channels to use to engage consumers post-purchase, with the business research showing that on average the number of channels used by a business post-purchase drops to 2.4 from a pre-purchase high of 3.5 channels. Clearly engagement by businesses focuses on pre-purchase more than post-purchase. ot happening effectively.
- Despite the uncertainty over which channels businesses connect with a customer via following a purchase, they clearly become significantly more confident in their marketing, feeling safe in the knowledge that a purchase has been made. The gap between businesses’ own assessment of the situation, and that of their customers, tells a slightly different story. As you can see A majority 58.5% of businesses say frequency increased in a good way post-purchase with only 23.9% of consumers agreeing. This implies businesses do not have as good an understanding of their customers as they believe, and without an increase in relevant communication it becomes more challenging to increase engagement levels. It could also imply that many businesses are missing an opportunity to ask the correct questions at the point of purchase and are not developing a greater understanding of their customers needs and requirements.
- There is a strong correlation to suggest that those mobile users that receive a notable increase in relevant communications from a business following a purchase will increase their loyalty with that business, with almost half of those users claiming it will also in This presents a clear incentive for businesses to invest in engagement strategies on mobile devices, and look to transform those mobile users that claim engagement has no impact (just over one third of connected mobile users) and the additional 8% that expressed a negative response to engagement. crease their spend with that business. But the effects of engagement can be significantly greater if businesses can demonstrate a heightened understanding of their customers. The research analysed in this section of the report suggests businesses are evolving their multichannel marketing strategy on mobile, and getting it right to one quarter of connected mobile users, which is ultimately creating an uplift in spend of over 5 million people.
- But this is still reliant on a successful engagement strategy. A business with a connected following of mobile users will typically have a core 25% of brand advocates willing to make purchases with that business on their mobile device. Of these brand advocates, two-fifths will welcome engagement with a view to increasing their spend with that business. The aim for all businesses engaging with customers over mobile is to expand the number of brand advocates and the number of increased spending brand advocates