The State of Mobile Communications


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The State of Mobile Communications Presentation for the American Gas Association and the Edison Electric Institute Customer Service Conference in Milwaukee, Wisconsin, April 12, 2010

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  • Texting or web…
  • Internet beginning solutions looking for a problem
  • Internet beginning solutions looking for a problem
  • Internet beginning solutions looking for a problem
  • Google, Yahoo, Microsoft
  • Google, Yahoo, Microsoft
  • The State of Mobile Communications

    1. 1. Mobile Information – Using Mobile Devices to Connect with Your Consumers © i2SMS – April 12th, 2010 Giff Gfroerer, Director i2SMS North America [email_address] *Presentational Copy Only – Sources Have Been Removed to Protect Proprietary Information– For Informational Purposes Only to Attendees of AGA Conference 2010.
    2. 2. The Future IS Mobile <ul><li>5 Billion Mobile Subscribers </li></ul><ul><li>4 Billion Active Users of SMS (Text Messaging) </li></ul><ul><li>4.6 Billion Unique Users of Cell Phones </li></ul><ul><li>Half the Planet Will Have a Camera Phone </li></ul><ul><li>2 Billion Will Receive an Ad on Their Cell Phone </li></ul><ul><li>1 Billion Will Vote by Cell Phone for TV Shows </li></ul><ul><li>400+ Million of the World's Internet Users Will Access the Web Solely Via Mobile Connection </li></ul>© i2SMS, LLC. 404.944.1351 By Year End 2010 on Earth:
    3. 3. The Future IS Mobile <ul><li>1.8 Billion Nokia Phones in Use </li></ul><ul><li>Reaching 27% of the Total Population on Earth </li></ul><ul><li>More Nokia Branded Phones in Use Than: </li></ul><ul><ul><li>Nike Sneakers </li></ul></ul><ul><ul><li>Levis Jeans </li></ul></ul><ul><ul><li>McDonald’s Burgers Eaters </li></ul></ul><ul><ul><li>Coca Cola Drinkers </li></ul></ul>© i2SMS, LLC. 404.944.1351 WORLDWIDE Nokia Will Have:
    4. 4. The Future IS Mobile <ul><li>Mobile Industry Will Ship its 10 Billionth Phone </li></ul><ul><li>Blackberry Will Pass 100 Millionth SmartPhone </li></ul><ul><li>Apple Will Pass 50 Millionth SmartPhone </li></ul><ul><li>Apple Will Pass 100 Millionth OS Including: </li></ul><ul><ul><li>iPhone </li></ul></ul><ul><ul><li>iTouch </li></ul></ul><ul><ul><li>iPod </li></ul></ul><ul><ul><li>iPad </li></ul></ul>© i2SMS, LLC. 404.944.1351 By Year End 2010 on Earth:
    5. 5. <ul><li>2.2 Billion Unique Holders of Bank Accounts </li></ul><ul><li>1.7 Billion Credit Card Holders </li></ul><ul><li>1.7 Billion PC Internet Users </li></ul><ul><li>1.6 Billion Television Sets </li></ul><ul><li>1.15 Billion Landline Phones </li></ul><ul><li>1.2 Billion Personal Computers </li></ul><ul><li>480 Million Total Circulation of Daily Newspapers Worldwide </li></ul>Putting the Mobile Phone Into Global Context Current World Population is 6.8 Billion Cell Phone Subscribers: 4.6 Billion <ul><ul><li>Almost 3 times the number of Internet Users </li></ul></ul><ul><ul><li>More than twice the number of credit card holders </li></ul></ul><ul><ul><li>3.4 Billion are unique users </li></ul></ul>© i2SMS, LLC. 404.944.1351
    6. 6. Cell Phones in the United States <ul><li>Current US Population: 306 Million </li></ul><ul><li>Cell Phone Subscribers: 285 Million </li></ul><ul><ul><li>241 Million are Unique Users </li></ul></ul><ul><ul><li>80% of the US Population </li></ul></ul><ul><ul><li>Three times the number of iPods Worldwide </li></ul></ul>Cell Phones in the United States © i2SMS, LLC. 404.944.1351
    7. 7. How Do Consumers Want to Be Communicated With? Technologies Consumers Believe They Need Most <ul><li>2002 </li></ul><ul><li>Landline Phone </li></ul><ul><li>Television </li></ul><ul><li>Internet </li></ul><ul><li>Cell Phone </li></ul><ul><li>Email </li></ul><ul><li>2007 - 2009 </li></ul><ul><li>Cell Phone </li></ul><ul><li>Internet </li></ul><ul><li>Television </li></ul><ul><li>Landline Phone </li></ul><ul><li>Email </li></ul>© i2SMS, LLC. 404.944.1351
    8. 8. Cell Only Homes An additional 14.5 percent of U.S. households have landlines but get all or nearly all calls on their cells, the survey showed. Taken together, that means well Over One Third of all US Households are essentially reachable only on their wireless phones. 24% of U.S. homes, or 1/4, are now cell only. © i2SMS, LLC. 404.944.1351
    9. 9. Technology Follows our Youth © i2SMS, LLC. 404.944.1351 U.S. Kids Spend Close to an Hour a Day Consuming Mobile Media <ul><li>66% of Young People ages 8 to 18 now own mobile handsets </li></ul><ul><li>56% of Children between the ages of 10 & 14 already have their own cell phones </li></ul><ul><li>Young People in the US now spend 49 minutes each day listening to music, playing games and watching video content on their mobile phones </li></ul><ul><li>Teens in grades 7 to 12 now spend an average of 95 minutes per day sending or receiving text messages </li></ul>
    10. 10. Mobile Internet Access Mobile phones will overtake PCs as the dominant web access device worldwide by 2013 The total number of PCs in use should top 1.78 billion units in 2013 versus the combined installed base of smart phones and browser-equipped enhanced phones will exceed 1.82 billion units © i2SMS, LLC. 404.944.1351 Forecasts Mobile Web Access Will Surpass PCs by 2013
    11. 11. Mobile Internet Access © i2SMS, LLC. 404.944.1351
    12. 12. Mobile Internet Access © i2SMS, LLC. 404.944.1351
    13. 13. Mobile Internet Access © i2SMS, LLC. 404.944.1351
    14. 14. CRM and Mobile Access “ Although email has been the first mover among mobile applications, it is not viewed as the most strategic application for mobility. Survey respondents indicate that CRM and service-and-support applications, as well as mobile access to productivity suites, are seen as more strategically important to their businesses.” - 33% of Email Addresses Change on a Yearly Basis – Significant Contact Information is Incorrect <ul><li>* Blackberry Worldwide User Base = 58.5 Million / 1.3% </li></ul><ul><li>iPhone Worldwide User Base = 43 Million / 0.93% </li></ul>© i2SMS, LLC. 404.944.1351
    15. 15. 65% of Americans Text Message 4 Billion People Worldwide have embraced Texting out of 4.6 Billion © i2SMS, LLC. 404.944.1351 Mobile Messaging Rev's worldwide will grow to $233 billion by 2014 , up from $150 billion in 2009. SMS traffic exceeded 5 Trillion messages in 2009
    16. 16. SMS (Short Message Service) Over the Past two years text messages sent and received have increased by a staggering 650% . © i2SMS, LLC. 404.944.1351
    17. 17. <ul><li>The Mobile Experience Is: </li></ul><ul><li>96% of Americans Take Their Cell Phones Everywhere They Go </li></ul><ul><li>44% of Americans Take Their Cell Phones to Bed With Them </li></ul><ul><li>94% of Messages Are Read </li></ul>SMS Messages Are Read © i2SMS, LLC. 404.944.1351
    18. 18. <ul><li>Messages are Read Within 5 Minutes and Responded to Within 15 minutes on Average </li></ul>SMS Is Imbued With a Sense of Immediacy SMS Responded to Within 15 Minutes SMS Opened Within 5 Minutes Time To Open Emails and Respond to in minutes © i2SMS, LLC. 404.944.1351
    19. 19. Mobile Messaging is Huge <ul><li>Mobile Messaging Revenues Are Larger Than: </li></ul><ul><li>All of Hollywood </li></ul><ul><li>The Radio Industry </li></ul><ul><li>All Videogaming </li></ul><ul><li>& The Worldwide Music Industries </li></ul><ul><li>… .. COMBINED! </li></ul>© i2SMS, LLC. 404.944.1351 Mobile messaging revenues 2009 = $153 billion
    20. 20. Mobile CRM A 2008 Aberdeen study found that 80% of best-in-class call centers are leveraging text messaging , and also concluded that there is a marked difference in adoption in non-best-in-class organizations which are not taking advantage of an opportunity to add cost effective touch point between a given company’s expert resources and their customers through the use of text messaging. © i2SMS, LLC. 404.944.1351
    21. 21. Channel Cost & Risk Dynamics for Customer Care High Low Relative Cost Per Transaction Effectiveness of Channel High Low Risk High Risk © i2SMS, LLC. 404.944.1351
    22. 22. How Does SMS Work? © i2SMS, LLC. 404.944.1351
    23. 23. SMS 2-Way Notifications © i2SMS, LLC. 404.944.1351
    24. 24. Web Sign-Up For SMS Services © i2SMS, LLC. 404.944.1351
    25. 25. Proactive Outage or Emergency SMS Alerts © i2SMS, LLC. 404.944.1351
    26. 26. Bill Presentments © i2SMS, LLC. 404.944.1351
    27. 27. Notification of Bill Due In 5 Days © i2SMS, LLC. 404.944.1351
    28. 28. Notification That A Payment Was Received © i2SMS, LLC. 404.944.1351
    29. 29. Mobile Advertising? 60% of Non-Mobile Marketers are Planning to Employ Some Form of Mobile Advertising in 2010 with 31% spending between $100k-$250k © i2SMS, LLC. 404.944.1351
    30. 30. Smart Phones In 2009 only 175m of 1.13b phones shipped were smart phones. By 2014 800 million of 1.6 billion phones shipped will be smart phones, or one half of the market! © i2SMS, LLC. 404.944.1351
    31. 31. Mobile Applications Just Do © i2SMS, LLC. 404.944.1351 Stats on Mobile Apps: <ul><li>Over 100 million iPhone/iTouch applications, 20 million Android applications and 400,000 Blackberry applications are downloaded each month </li></ul><ul><li>Approaching 4 Billion Apple Application Downloads </li></ul><ul><li>70% of Fortune 100 companies are actively piloting or deploying iPhones, and 50% of the FTSE 100 </li></ul>
    32. 32. How Do Consumers Want to Be Communicated With? Why We Hear About Apple All The Time © i2SMS, LLC. 404.944.1351
    33. 33. Mobile applications work… © i2SMS, LLC. 404.944.1351 Why Should You Have a Mobile Application or Web Site? <ul><li>80% of US-based mobile sites receive traffic from three of the seven major regions of the world — North America, South America, Europe, Asia, Africa, the Middle East and Oceania — with 72% of US-based mobile apps reaching an audience in four or more regions. </li></ul>
    34. 34. Tablets and the Future © i2SMS, LLC. 404.944.1351 What Will Tablets Bring? <ul><li>YouTube Sports Illustrated Tablet Demo </li></ul><ul><li>Virtual Shopping made easy </li></ul><ul><li>MS WinMo 7 and the Enterprise! </li></ul>Steve Jobs - iPad Steve Ballmer - Vision
    35. 35. What is FTEU? (Free To The End User) © i2SMS, LLC. 404.944.1351 Free To The End User: <ul><li>Allows a utility to send text messages to a customer’s mobile devices without having the message be charged to the customer’s phone bill or data plan </li></ul><ul><li>Cell Phone Companies like AT&T and TMobile charge the SENDER for the message, not the receiver, at an increased fee to the Sender </li></ul><ul><li>Complies with the Public Utility Commission’s guidelines for not charging customers for interaction </li></ul>
    36. 36. <ul><li>Customer Receives Disconnect Warning Letter or Message on Statement </li></ul><ul><li>Customer Receives Predictive Dialer Message About Past Due Balance </li></ul><ul><li>Customer Receives Text Message Notification of Disconnect </li></ul><ul><li>Customer Receives Door Hanger Notification </li></ul><ul><li>Power Is Disconnected for Non-Payment </li></ul>Disconnect Notification Process © i2SMS, LLC. 404.944.1351 The Steps to Disconnect
    37. 37. <ul><li>Messages Sent to Delinquent Customers Where Disconnection is Imminent if Payment Not Received </li></ul><ul><li>Messages Sent after Predictive Dialer Message Left About Past Due Balance and One Day Before Door Hanger Notification is Placed </li></ul><ul><li>Customer Must Have Valid Cell Phone Number, Carrier Must Allow FTEU, Note Added to Customer’s Account For CSR agents </li></ul>Why Use FTEU? Ask! Low Cost – High Response Pilot: © i2SMS, LLC. 404.944.1351
    38. 38. <ul><li>52,608 Successful Text Messages Sent Between 9/12/2008 and 2/1/2009 </li></ul><ul><li>Prevented 12,618 Truck Rolls to Disconnect Power as Customers Called Within One Day to pay. Only 861 asked not to be contacted this way out of 52,608 msgs. </li></ul><ul><li>Customer Must Have Valid Cell Phone Number, Carrier Must Allow FTEU, Note Added to Customer’s Account </li></ul><ul><li>24% Response Rate </li></ul>Why Use FTEU? Low Cost – High R.O.I. Results: © i2SMS, LLC. 404.944.1351
    39. 39. <ul><li>10 months times $1000 per month = $10,000 </li></ul><ul><li>101,521 Messages Sent times $0.12/msg. = $12,183 </li></ul><ul><li>Total Cost for 10 months = $22,183 </li></ul><ul><li>25,180 Payments Received Within One Day of Messages Sent; Cost Savings by NOT Having to Send Truck To Perform Physical Disconnect: 25,180 x $42.22* Avg. Disconnect= $1,063,100 </li></ul><ul><li>Total Savings: $1,063,100 - $22,183 = </li></ul><ul><li> $1,040,917.00 </li></ul>Potential/Real Cost Savings Low Cost – High R.O.I. © i2SMS, LLC. 404.944.1351
    40. 40. <ul><li>2008 - Mobile is going to be the next big Internet phenomenon. It holds the key to greater access for everyone - with all the benefits that entails. </li></ul><ul><li>- Local Services are &quot;hugely important&quot; to the future of the mobile user experience… </li></ul>What Does Google Think? © i2SMS, LLC. 404.944.1351 -Eric Schmidt, CEO of Google
    41. 41. <ul><li>What We Do Well!: </li></ul><ul><li>Mobile Consulting </li></ul><ul><li>Mobile Messaging </li></ul><ul><li>Mobile Applications </li></ul><ul><li>Mobile Web Sites </li></ul><ul><li>Mobile CRM </li></ul><ul><li>Mobile Bill Payments </li></ul>i2SMS – Mobile Since 2001 © i2SMS, LLC. 404.944.1351 Customers Include: Entergy, Philadelphia Electric Co., Equifax, Toyota, Nokia, Kaiser Permanente, & The USDA