The Customer Engagement Balancing Act
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The document discusses the shift from brand-centric to customer-centric marketing due to changes in technology and consumer behavior. It emphasizes that effective mobile engagement requires being intimate not creepy, insightful not intrusive, and valuable not superfluous. Mobile moments that matter and precision targeting are key to driving downloads, messages, and owning the customer experience.
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The Customer Engagement Balancing Act
- 1. 1 © Urban Airship. Confidential. Do Not Distribute. The Customer Engagement Balancing Act: Intimate, not creepy. Insightful, not intrusive. Valuable, not superfluous.
- 2. 2 © Urban Airship. Confidential. Do Not Distribute. We deliver leading mobile engagement for more than 1,500 brands.
- 3. 3 © Urban Airship. Confidential. Do Not Distribute. Mobile is changing how we engage.
- 4. 4 © Urban Airship. Confidential. Do Not Distribute. In 1996, 1:1 was born.
- 5. 5 © Urban Airship. Confidential. Do Not Distribute.
- 6. 6 © Urban Airship. Confidential. Do Not Distribute.
- 7. 7 © Urban Airship. Confidential. Do Not Distribute.
- 8. 8 © Urban Airship. Confidential. Do Not Distribute.
- 9. 9 © Urban Airship. Confidential. Do Not Distribute. Mass media Personal mobile Interruption (sell) Broadcast, spray-and-pray Reach & frequency One screen Paid media (branding) Brand controlled Primetime Location is a place Transaction Invitation (service/value/utility) Precision targeting Moments that matter Multi-screens Owned media (authenticity) Consumer controlled My time My location profile Relationship The Shift…. Customer- centric Brand- centric
- 10. 10 © Urban Airship. Confidential. Do Not Distribute.10 © Urban Airship. Confidential. Do Not Distribute. The funnel is blown to bits. - Jake Sorofman, Gartner
- 11. 11 © Urban Airship. Confidential. Do Not Distribute. Drive Downloads & Messages • Mobile is the front door • Personalization is the focus • Meet the user where they are Own the “Moments that Matter”
- 12. 12 © Urban Airship. Confidential. Do Not Distribute. User-Level Optimization Mobile- Driven Engagement Own the mobile moments that matter Open Ecosystem
- 13. 13 © Urban Airship. Confidential. Do Not Distribute. The Remote Control to Our Lives
- 14. 14 © Urban Airship. Confidential. Do Not Distribute. Great Engagement Starts with Great Data Advertisin g Email In-App Behaviors In- App Locatio n Data Message Center POS Push Socia l Wallet Websit e Integrations Urban Airship
- 15. 15 © Urban Airship. Confidential. Do Not Distribute. Different Channels, Different Reach Push Notifications Push notification opt-ins (iOS) * 100%0% 50% In-app Messages Majority of app users 100%0% 50% Message Center 100% of app users 100%0% 50% Mobile Wallet 100% of smartphone users 100%0% 50% *Android doesn’t require opt-in, so it’s 100%
- 16. 16 © Urban Airship. Confidential. Do Not Distribute. 1 New customer Onboarding Welcome series Push opt-in Location opt- in Conversion Product view Add to cart First purchase Retention Replenishment Loyalty member sign- up Customer sat Service reminders Re-engagement Win-back programs Account re-activation Think in Loops, Not Funnels Retarget and reacquire Increase brand value 3 4 2
- 17. 17 © Urban Airship. Confidential. Do Not Distribute. Where Do Your Needs Intersect? USERBRAND • Reach, engage, retain customers • Generate repeat business • Gain user insight • Reduce cost • Operational efficiency • Easy & convenient • Save money • Save time • Security • Better deals • Be reminded
- 18. 18 © Urban Airship. Confidential. Do Not Distribute. Engage in Moments of True Utility
- 19. 19 © Urban Airship. Confidential. Do Not Distribute. Average Opt-In Rates Vary
- 20. 20 © Urban Airship. Confidential. Do Not Distribute. Tell Them Why They Should Opt-In
- 21. 22 © Urban Airship. Confidential. Do Not Distribute. Welcome Series Automation Drives Results Higher Redemption Rate than typical free offers with automated welcome series messaging. 300%
- 22. 23 © Urban Airship. Confidential. Do Not Distribute. Targeting Boosts Response 4-7X
- 23. 24 © Urban Airship. Confidential. Do Not Distribute. Pinpoint Targeting Boosts Conversion Conversion rate for highly-targeted last-minute ticket offers. 32% 20 © Urban Airship. Confidential. Do Not Distribute.
- 24. 25 © Urban Airship. Confidential. Do Not Distribute. Sell Product & Build Brand 19 © Urban Airship. Confidential. Do Not Distribute.
- 25. 26 © Urban Airship. Confidential. Do Not Distribute. Message Centers Double Read Rates 8X Greater Direct Response Than Push Comparing average message center read rate to direct taps on a push Notifications Double Read Rates While home screen badges increase read rates 23% High-performing apps see nearly half of all messages read Overall average read rate for high-performing apps is 44%, while it is 49% for retail apps
- 26. 27 © Urban Airship. Confidential. Do Not Distribute. Serve First to Build Habits 27 © Urban Airship. Confidential. Do Not Distribute.
- 27. 28 © Urban Airship. Confidential. Do Not Distribute. Lock in Loyalty Leverage wallet items as ongoing engagement channels
- 28. 29 © Urban Airship. Confidential. Do Not Distribute. Beyond the App: Mobile Wallet Relevant Personalized and location-aware Convenient Store all of your coupons, cards, and event passes in one place Persistent & timely Reach 100% of your mobile audience: no app necessary. 123456789 123456789
- 29. 30 © Urban Airship. Confidential. Do Not Distribute.
- 30. 31 © Urban Airship. Confidential. Do Not Distribute. Connect Mobile to Any Business System Power omni-channel engagement with mobile context
- 31. 32 © Urban Airship. Confidential. Do Not Distribute. Data Drives Action Power real-time action across your business All mobile data Cross-channel ROI insights Uninstalls E-mail win-back program Product interest Mobile ad campaign Mobile insights Business actions VIP customer in-store Personal customer service
- 32. 33 © Urban Airship. Confidential. Do Not Distribute. Facebook Look-a-Like Campaign
- 33. 34 © Urban Airship. Confidential. Do Not Distribute. Does It Work? 878% return on investment (ROI) 10%-70% Increase in one-day mCommerce sales from a product promoted through a push notification. 15%-30% Increase in average spend per customer due to mobile influence on purchase behavior. $351,660 Savings in email marketing spend and reducing the number of app updates. Forrester Total Economic Impact confirms value: Topline value: An increase in app engagement, traffic and sales driven to other channels.
- 34. 35 © Urban Airship. Confidential. Do Not Distribute. Transform Relationships at Scale
- 35. 36 © Urban Airship. Confidential. Do Not Distribute.
Editor's Notes
- Hi everyone – So exccited We have so much more precision we can use in our messaging - Consumers have so much more control they can apply to their media consumption
- We keep you up to speed on your latest flight details with Virgin Atlantic For Walgreens we help remind you to refill your prescriptions For Starwood, we welcome you when you enter the property and check you in without having to go to the front desk. For Skysports we let you know if Andy Murray won his match today. Today, I wantt to talk a little about how we see customer engagement changing with the rise of our mobile devices and give you framework to consdier in how to use mobile to create engagement that leads to business.
- In every case, our phones and mobile devices have allowed us to rethink how we talk to each other. I know longer have to guess what you like – you tell me. I know longer have to guess where you are – if you are in the store or not – or possibly visiting a competitor. You tell me. Mobile apps and other properties have remade the social contract between consumers and brands. Consumers decide who they want to share their data with and in return they ask that you speak to them without shouting.
- Now, this isn’t a new concept. It’s been around for a couple of decades. Twenty years ago Don Peppers and Martha Rogers popularize a term around 1:1 marketing. They saw a future where technology would tear down the traditional marketing model and replace it with 1:1 marketing.
- As humans, we all know how valuable and required good communication is. To listen when being spoken to. (Being listened to and understood is one of the greatest human experiences ever) To consider a respectable response. And to speak with words and actions that served the person you were speaking to. It’s a very simple formula. And we do it fairly well “for the most part” when we’re dealing with each other in the physical world. But many of us have been struglling to put this formula together in the digital world
- In short. Data silos. We’ve been amassing large quantities of data on our customers for just as long as Peppers and Rogers painted their vision. But the problem is that databases, software platforms, communication channels are largely a bunch of islands.
- In an analysis Forrester performed for Sitecore, they asked busienss and marketing leaders what prevented them from delivering on their diigital experiences and it wasn’t that they didn’t know how to do it, or even what to do. It was because they couldn’t do it because the technology they invested in didn’t play nicely with others. And so despite having information about our customers. And being able to serve them relevant digital experiences, we were hamstrung.
- And continued to exacerbate the problem of too many messages that weren’t personalized to the individual. In the age of consumer control, this has resulted in Ad blocking – now up to 44% of all ads according to recent research by Gartner Group. And Ad Skipping up 44% for people that watch as little as 5 hours of tv a week. A new engagement model is required. And we believe mobile is going to usher it in.
- WHY MOBILE ACCELERATES UN-ADVERTISING – POSS HEADLINE Brands aren’t driving mobile adoption. Consumers are. Brands must understand why customers choose this channel and adapt or die. Our business is built on understanding what makes mobile different and building you tools to win in this channel. Deposition Xtify: Some of our competitors actually penalize you (through added costs) for taking advantage of the opportunity to use mobile to personalize messages and experiences. This is a huge miss. It’s a new way of interacting with customers. It’s hyper-personalized, and most importantly it’s built on invitation. We’ll show you how to get invited in… (later, we’ll tell your more about specific client ROI results and case studies)
- And in the process the traditional funnel is changed forever. Now that consumers have ultimate control of the what, when, where and how --- all we as brands have left to control is the why. And make an appeal to customers on a personal level of what our brands and products mean to them. http://blogs.gartner.com/jake-sorofman/six-digital-disruptions-rocking-marketers-worlds/
- In the world of mobile. A common refrain we share with customers is that they need to ttranscend traditional principles of focusing on downloads and broadst messages And move to the model Forrester research first coined – which is owning the moments that matter. The slimplicty, conveninece and conttext of the phone allows us as brands and marketers to rethink the customer communication channel.
- We believe that this model is predicated on three foundational points. Predominately mobile --- since that’s where consumers are spending most of their time Personalized to the user And open using the latest rest based web services and datastreaming methods so that customer context doesn’t get locked in a slio. The customers data should freely move with them.
- The promise is to give customers a verifiable remote control to our business. That allows them to access our products and service when they need it and allow us to anticipate their needs
- So where to start. The start in this case is with data. Before this event I went to the Ogilvy website and I found a quote from David Oglivy the founder, which said – that successful advertising for any product started with the information it had on its customer. Well now, through open protocols and data collection techniques we are able to combine anything that happens in the mobile world, with the non-mobile world.
- Which can then be used across your mobile channels. Different channels have different reach. Push is fantastic for your opt-in audience.. These are strong advocates of your brand that have opened up a line of communication to you even outside of the app. Then there’s in-app messaging and the message center which allow you to reach all of your app users, in your app. This is boon for marketers that gives them control over the in-app expereince without requiring you bug the developer And then there’s the Mobile Wallet – with the investments Apple and Google are making in these platforms, we are predicting this to be the next big mobile engagement channel of personalized coupons, loyalty cards, gift cards and more…
- This data and these communication tools are then applied across what we call the Mobile Engagement Loop. Unlike the funnel, which is a model of decreasing percentages. The loop – recognizes where the user is right now (based on their lifecycle stage) and allows you to design experences that serve them based on what you know about them. Redbox welcomes news users with message center offer to try their first movie on the house – 300% increase in engagement Hooked sends exclusive restaurant deals based on location data and preferences and sees up to an 88% engagement rate Rhapsody, a music streaming service identifies “superfans” to send offers on upcoming shows and special merch offers and they’ve seen engagement rates over 50% Whitepages – still looking… for now just state that you can also stream uninstall data to your e-mail provider to get them to renegage..
- What’s crucial is that in addition to a brand’s goals there must be focus on the the customers' journey as they explore, save, shop and pay THIS is the sweet spot. How can we add value?
- The key to the mobile engagement loops is data and finding moments of true value for the customer that leaves an experience that keeps them wanting more. Walmart exempliifies this with their savings catcher feature – supporting their everyday low price value Walgreens does the same with its prescription refill And Starwood With prescription refill
- The first step in the engagement cycle is opening a line of communciation with your users through the push opt-in. We have done extensive research on opt-in rates anlayzing over 3000 apps across 16 industries and we’ve found a couple of things: opt-in rates are better than 40% across most industries. The opt-in rate is holding steady. In fact It increased 2% y.y And that top performing apps see opt-in rates in the 50-60% range.
- We’ve found that aps that peform best at opt-in are those that explain what they’re going to get. The Guardian has a nice opt-in process where they explain that opting in will keep you in the know on your favorite news stories. American Eagle – a retailer in the states, talks about the exclusive deals you’ll receive And Buzzfeed let’s you even get as specific as setting notifications to the watch for their daily poll. Other examples build the opt-in experience at the point of value. For example on my flight over, United allowed me to sign up for notifications when I check on my flight.
- Redbox combined notifications with its message center and real-time marketing automation to deliver a freebie promo code to new app users within one hour of their first app open. Open rates for these in-app messages were 33% higher with 300% greater redemption than its typical freebie promotions. Case studies can be found at: https://www.urbanairship.com/marketing-library
- Once you’ve welcome them. And they’ve opted in, possibly told you the type of information they like… you now have a little data to work from. Use it. Far too many apps still send blanket broadcast messages, when they have the data at their disposal. A May 2014 study of 3.8 billion push notifications and more than 1000 apps found that highly targeted messages generate nearly 300% more response on average than messages broadcast to most of an app’s users The impact was even higher for specific vertical industries, resulting in 4X to 7X greater response
- Talking Points It’s a beautiful way to market with precision The United States Tennis Association leveraged all of Urban Airship’s mobile engagement solutions to drive its business and sponsorship objectives with precision. Using geofences and beacons it engaged attendees with notifications and rich in-app content such as a daily schedule of events and sponsorship partner messages. People were literally running to get to sponsor locations (such as the offer to trade your seat for a suite) For last-minute tickets sales they combined a variety of data points to net a massively high conversion rate of 32%: Geofence – still in tri-state area (within driving distance) Historical beacon proximity – had attended a previous match (highly interested fan) In-app activity – had looked at tickets in the app (high consideration) Case studies can be found at: https://www.urbanairship.com/marketing-library
- Nike uses Message Center for it’s Nike FC app effectively as an app CMS to publish rich experiences that engage and delight. Talking Points Here is just a sample of what we mean by “creating mobile moments that matter,” and how a few innovative companies are leveraging the power of Urban Airship. Here, Nike brings the world of football to millions of fingertips with news and utility for true fans and aficionados. Organize a pick-up game with friends, get the latest news on pro players and buy some shoes while you are at it. It’s a beautiful way to sell product Case studies can be found at: https://www.urbanairship.com/marketing-library
- Message Centers, like in the Nike example are content marketing destinations in your app. They are very simlle to set up. It takes about a days worth of dev work and the results are quite phenomenal. Here’s a study we just did that compared Message Center performance and found:
- Talking Points Starbucks is a company who has excelled in mobile. Starbucks pioneered using apps to provide value in customers’ daily lives, like its pick of the week program (free music, apps). But it has also operationalized mobile in its business. From tracking loyalty rewards in the app to becoming one of the largest mobile payment communities around, they continue to innovate new services like mobile pre-ordering and barista tipping to offer greater convenience to customers and drive greater results for their business. Case studies can be found at: https://www.urbanairship.com/marketing-library
- Now that you’ve converted them. You can also extend the expereince with Mobile Wallets. REI, an athletic retailer uses the mobile wallet as an engagement channel. Because customers typically keep their mobile wallet items in their wallet after use, you can remessage them with new content.
- Lots of people think that having a branded app equates to having a mobile strategy. Well, this isn’t the only way. One of the benefits of using a mobile wallet is that you don’t need an app to have a mobile wallet strategy. You can leverage the native Apple Pay and Android Pay eco-system to deliver a mobile solution to your end customers. Mobile wallets can exist as its own as a mobile strategy. However, when you have both an app and wallet items, you can realize even more value from your mobile marketing investments (PAUSE) as the two can support each other. One of the things to consider as you approach this channel (PAUSE) is that mobile wallets can act as a gateway to mobile (PAUSE) for brands (PAUSE) as well as for their consumers (PAUSE). Because brands can deliver wallet items without needing an app, this means (PAUSE) that you can now reach 100% of your mobile audience. Those customers who like to interact within your branded app and those who don’t have your app. So what we’ve learned from working with our customers, “Brands that focus on helping customers organize and access information and content (PAUSE) – and not just focusing on payments (PAUSE), provide impact at the point of action.
- Wallet items are great ambassadors of conveninece that can be easily accessed through a wearable. Tickets, Loyalty Cards, Gift Cards, can all be accessed this way to create a unique, frictionless experience.
- Now in the beginninfo the talk I talked about data openness. When you work with a mobile engagement vendor, you should make sure you can get your data out in real-time so you can populate other marketing systems with valuable behavioral context through the mobile channel.
- Update your business intelligence dashboard with mobile’s full, up-to-the second ROI impact on the business Send persuasive winback e-mail’s the moment a user uninstalls your app Power your mobile ad campaigns with the latest consumer insights in your app Create a Facebook campaign based on a look a like group of high value users in your app Notify a sales associate when a VIP customer is looking for answers in your store The use cases are truly endless. If you are collecting information from your mobile app and want to deliver that to anywhere in the business, you can do so with Urban Airship Connect.
- Urban Airship commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying its Mobile Engagement Platform. Forrester interviewed several customers with multiple years of experience using the solution. Although the 878% (9:1) ROI may seem unreal, Forrester’s analysis considered the overall value of our mobile engagement platform offers: cost savings compared to using and email service provider Technical resource cost savings through marketer controlled experiences after the solution is implemented Cross channel positive impact that mobile provides The immediacy and reach mobile has to drive sales Provides marketers with the ability to engage with mobile app users without technical resources In summary using UA leads to an increase in mobile app engagement, traffic and sales to other channels. --- more background --- Marketers could interact with app users regularly to provide personalized content and offers without having to rely on costly and busy internal developer resources. Furthermore, they were able to extend the lifecycle of an app without making an update because they could personalize content and offers without fundamentally changing the app. Said one director of international mobile product management, “This is like a communication platform: It's how we can reach customers in the most personal and contextual way. Much more so than, say, email.” Said another head of mobile product for a media company, “Customers expect us to have a modern mobile touch point. Our apps are meant for our super fan loyalist audience and we really want our brand fans to love them. There’s really no better environment to get people to love what you do for them than in an app.” The composite organization analysis points to three-year present value benefits of over $3.1 million versus platform fees and implementation present value costs of $323,291, adding up to a net present value (NPV) of $2,837,444. With Urban Airship’s platform, sales of a product through the mobile channel increased by 30%, and the composite organization experienced additional revenue generation through increased spend per customer. Furthermore, it saved mobile development and email marketing costs.