Mobile marketing starts simple
Research firm Gartner notes that mobile marketing promotions typically earn responses in the 5% to 20% range, and often higher, especially when the offers are personalized using purchase data.
If you're looking at putting mobile marketing programs to work, you probably have more questions than answers. Here are some of the important things we've learned from our work with leading retailers and consumer packaged goods companies that can help you get the best results as you get started with mobile marketing.
First, it doesn't have to be complicated. Many people assume that the key to mobile marketing is developing a sexy app for smartphone users, but getting started can be a lot simpler than that. Virtually any mobile phone can accept text messages. In 2009, consumers sent more than 1 trillion text messages. This can be a great way to start reaching out to consumers.
Coupon offers are effective. Two out of three consumers say that coupon offers are the most effective way to reach them, and today's paperless coupon technology is the best way of issuing coupons to mobile users.
Shoppers can find and download loyalty program offers via the Internet, e-mail, mobile phones or in-store devices and automatically receive their savings at checkout without having to clip or print offers or scan a mobile barcode.
Mobile promotions may look the same, but there are important differences compared with other channels. Most of the rules for creating promotions to influence consumer shopping behavior are the same with mobile as they are in other media: the promotion needs to be relevant, have a hook to engage consumers, and capture contact, preference and behavioral data to fuel CRM initiatives.
However, mobile offers a range of new capabilities as well, including location-based services and barcode scanning, which gives marketers the ability to reach consumers at the moment of choice when purchase decisions are being made.
The greatest power of mobile promotion is the ability to reach people who have expressed an interest in hearing from you. Basing offers on past purchase behavior is an ideal strategy. This means integrating mobile marketing with your loyalty program.
For retailers and CPG companies, the real upside is in collaborative programs that combine loyalty data and insights, and reach consumers via multiple digital channels to build sales and loyalty for both sides.