NeoMedia Technologies, Inc (NEOM)

[ANESRI]

DD:Mobile – A channel not a strategy
By Troy Norcross, CEO Founder – Pocket Reach Solutions
http://www.pocketreach.com






In the recent article submitted by Mike Grenville on Wed, 13 Jul 2005 18:33, Big Brands Still Won’t Use Mobile it is discussed how many of the UK’s largest brands are unwilling to use mobile as a communication channel in spite of multiple case studies showing the true benefits. What differentiates those who are reluctant to try from those enjoying success in mobile marketing is a fundamental shift in their traditional marketing paradigm.

The answer is in the objection
The top three reasons given for not taking up mobile as a channel were:



· Lack of consumer trust



· Cost



· Good-sized database of mobile numbers






To put this another way, “We want to send a message to as many customers as possible but we’re afraid they won’t like it (might think it is SPAM), it costs too much per message and there aren’t very many opt-in lists of numbers to buy.”

Consumers don’t trust mobile because of they fear the problems of e-mail SPAM will be paralleled on their mobile. Some early players in the mobile space took advantage of consumers who didn’t read all the fine print and made some of those fears very real. Even now ICSTIS is investigating complaints about our friend the Crazy Frog.

For these reasons, consumers are cautious in giving out their valuable opt-in permission. This is especially true consumers give permission to hear from other trusted 3rd parties. This is how a database of numbers is created that is subsequently rented or sold. In short, it’s the lack of consumer trust that causes there to be, at present, no good database of mobile numbers.

Many businesses are focused on the mass communications marketing paradigm. i.e. get the message to the biggest number of people possible. Mass communications is the underlying strategy for most of today’s traditional marketing such as telemarketing, direct-mail, television, radio, print and out-of-home. A common element of these channels is that each consumer is automatically opt-in unless they take some action to opt-out such as listing themselves with one of the preference services at the DMA. Each of these mediums can stand alone and have an entire marketing program built around it.

In contrast, mobile marketing requires permission to be obtained prior to sending the first communication (in the UK and EU – not in the US). This one key difference applies to both mobile marketing and e-mail marketing and thus makes them poorly suited to standalone mass marketing campaigns. Fortunately, mobile marketing can be used for more than just mass marketing strategies.

Mobile as part of the communications strategy

While mobile marketing may not be suited for a stand alone mass communications strategy, its role does have significant value. As Ben King from WIN points out, “Businesses need to look beyond these barriers and really focus on how mobile can work as part of their overall communications strategy.”

Where mobile has been most successful it has been integrated as part of traditional marketing campaigns. Using traditional marketing, brands and marketers can communicate directly with the consumer and solicit opt-in permission to use mobile as a channel – and not just as an outbound channel.

Consumer Response Channel

Mobile is an ideal medium for consumer response. In lieu of traditional post card or response mail, mobile allows a consumer to respond to the campaign instantly from wherever they happen to be. No more manual data entry. No more delays from postal mail. Higher response rates because it is immediate and simple to do. And with mobile users sending 86.7 Million messages /day and phone penetration rates exceeding 101% (more than 1 phone per person) in the UK it is practically ubiquitous.




With mobile as the response channel, brands can build a relationship with both new consumers and current customers. Mobile can capture the same types of data as from a post card, from e-mail addresses to post codes. And mobile can provide consumers instant feedback that their response has been received. If offering mobile content as an incentive, this can be delivered immediately. Mobile works as an excellent channel for consumer response.

Personalized dialogue

Developing a relationship with a customer is one of the most valuable – and challenging – tasks around. Running a television or print media campaign offers only one way communication, whereas mobile offers consumers a means of responding instantly. Mobile also offers consumers a new way to initiate communication for service, support, comment or other factors. Messages sent to consumers can be personalized on the fly and communications can easily be directed to either automated or live customer response agents. For consumers it’s better than waiting on hold and for service centres it is an easier way to manage call volumes.

The overarching theme is that mobile is a channel for personalized dialogue, not just one-way but two-way communication with a single unique consumer.

Timely, Relevant, Valuable and Requested (TRVR)

If a business is going to communicate with a consumer in a non-response way – unscheduled communication or communication not as a result from an inbound SMS from the consumer – there are three key elements to making this communication successful in the eyes of the consumer. Ensure the content is:



· Timely



· Relevant



· Valuable



· Requested





Timely
Make sure that the communication comes at a time when it is of most value to the consumer. If sending sport updates, they should be during the game. If sending out real estate information they should go out on Sunday afternoons as that is peak time for the property market.

Relevant
Make sure that the content is relevant to the consumer. This implies that the business knows more than just the phone number for the message. It is of little use to send a coupon for an oil change to a consumer who owns only a push bike.

Valuable



Content can be valuable in the literal sense such as a coupon or digital content that the consumer can use on their phone – or it can be inherent in the fact that it’s information that is already timely and relevant. Keeping up with your favourite sports team can have significant value.

Requested



It is vital that the campaign adheres to current legislation and regulation regarding opt-in and communications with consumers via their mobile phone. The Mobile Marketing Association (MMA-UK) has its own code of practice and the Direct Marketing Association (DMA-UK) has a current working group – Mobile Marketing Strategy committee working to outline best practices for mobile marketing.

The location factor

One further challenge in meeting the Timely, Relevant, Valuable and Requested model is the location factor. It is of no use to me to know that my tube line is closed for repairs if it is 2:00 AM and I’m in Seattle. Today, mobile technology will allow for broad based location information such as whether or not the consumer is roaming at the time of attempted delivery. And more detailed location information can be made available (also permission based) to the point that you could send offers that were unique to a given event, such as free ring tones for everyone attending a concert at Wembley stadium. Location is a key element to successful mobile marketing programs of the future.

Mobile is a channel, not a strategy

Italians raise €11M in Tsunami aid via SMS Scheme (684M UK Texts)



Live 8 generated 2.8 Million texts in the UK (28 Million globally)



The AA saves £30,000/month using text messaging to help reduce call centre load

Mobile marketing works…

When businesses change the focus from developing a strategy for mobile mass marketing to one of understanding how mobile can enhance existing marketing by adding a dynamic and interactive consumer response mechanism and then continuing the communication offering consumers a personalized dialogue – only then will the objections fall away and businesses start to reap the rewards of mobile marketing.