Getting Mobile Marketing Strategy On the Right Path

Mobile marketing is one of the hottest topics right now. Following the trade journals and newsletters, it seems that if you're not doing anything mobile right now, then your business is doomed to collapse within the next six months.

While there is a lot of excitement about mobile, just remember how journalists get paid and how all those conference speakers get paid.

The natural human response to the generated hype is "We need an iPhone application" or "We need to do SMS right now."

Marketing is a strategic activity. All successful strategies are built upon successful processes. In this article, I submit Forrester Research's POST Methodology that Josh Bernoff, Charlene Li, Cynthia N. Pflaum, and Scott Wright originally introduced in October 2007 as one process you can apply as you develop your successful mobile marketing strategy.

Forrester's POST Methodology builds upon the following tenets:
(1) People: Get to know your people - not the average person, not your competitor's people; your people.

(2) Objectives: Decide upon your goals. Is it to increase brand awareness? Is it to cut your support costs? Is it to move your customers through the lifetime value cycle? Is it to do damage control (think millions of downloads of flaming laptop battery movies)?

(3) Strategy: Determine your approach to meet your objectives.

(4) Technology: Choose the right technology that best enables you to implement your strategy.

I've seen a lot of different strategic processes before, but I like Forrester's POST methodology because quite frankly, it keeps it all simple. It's easy to remember and it's easy to keep straight. When you're talking about marketing strategies that could run into the millions of dollars, the more simple the process, the better the chances of a favorable ROI.


Forrester Research Analysts Julie Ask, Charles Golvin, Michelle De Lussanet, and Laura Wiramihardja recently published their research article on applying the POST methodology to developing a mobile marketing strategy.

Step One of understanding who your customers are is to take a look at the Mobile Technographics Profile they've developed.



The ladder shows progressive mobile interaction and "sophistication" as you go up higher in the rungs.

Inactives, Talkers, and Communicators tend to be mutually exclusive categories. On the other hand, there is overlap between Connectors, Entertainers, and SuperConnecteds.

So now that you have a breakdown of mobile technographic profiles, the key question you need to ask yourself is "where do my customers fit", and more importantly, "where do my customers that I want to target with my marketing strategy fit?"

There are many different ways that you can answer these questions; time and money are your two resources. The first way to learn the mobile technographics profile of your customers is the most obvious but most often overlooked: ask them. If you have an online presence, how easy would it be to put up a simple survey? Give people a simple incentive to fill out the survey. Keep the questions short and simple - no more than 10 questions and make sure the questionnaire can be answered within 2 - 5 minutes.

Another way is to compare the demographics of your customers (based on your marketing objective, remember?) against the mobile adoption "national average" by age breakdown that Forrester Research Analyst Julie Ask presents in her research, Mobile Technographics.



While gender is no longer a differentiator for mobile technology adoption, age is still one - though rapidly disappearing. So just to get things started, do a test campaign matching your targeted audience by age to the type of mobile campaign you should do. Test your assumptions. Do your customers line up with the average? They may or may not.

If you've been reading about the social media space, you'll also know by now that this is a wealth of information that people are divulging about themselves via their tweets, Facebook posts, etc. Social media data aggregators (like Unbound Technologies, and Rapleaf) are building social profile data on individuals based on this public divulging of information. You can certainly take advantage of these services to build mobile technographic profiles of your customers.

And finally, I suppose you can always contract Forrester Research to construct the mobile technographic profile of your customers (no, this is not a paid endorsement, just a suggestion).


The key takeaway is that while mobile marketing is hot right now, you need to find out whether its hot right now for your customers. Follow the POST methodology. Don't start with the technical solution without first understanding your customers, your objectives and your strategy. Remember: if there is a mis-match between your customers, your objective, and your strategy, then no technology in the world can save you - it will only cost you...BIG TIME!

Mobile Marketing Checklist

Marketing campaigns via text messaging (a.k.a. "mobile marketing") presents new opportunities to engage with your customers. One benefit of certain types of mobile marketing is that it allows the customer to initiate the engagement by texting in a keyword to receive a coupon, more info, directions, or to opt-in to a subscription-based campaign. But know this: there is a lot of up-front work that you need to budget for both in terms of time and money. Here's a simple checklist to help you get all your ducks in a row.

Step One: Decide where in the world you want to focus your mobile marketing campaign
There is a logistical nuance to this point - mainly because it impacts your decision for Step Two.

Step Two: Procure a common short code ... or a long code
If the decision from Step One is the United States, then you'll be getting one type of common short code. If the decision is Canada, then you'll need to get another type of code. If the decision is Europe, and/or Asia-Pacific, then you'll need yet a different code. Each of the codes are managed by different registrars and each have their own pricing structure. You'll be leasing the use of a 5-digit or 6-digit code - kinda like leasing domain names in the web world. But unlike domain names, you'll only be leasing it for 3, 6, or 12 months at a time. The cost will be also be much higher - anywhere between $250 to $1000 per month.

For example, if you are going to run your mobile marketing campaign in the United States, then whether you get it yourself or the agency you've contracted gets it for you, it will still be Neustar that will be allocating the code to you. If your focus is Canada, then you'll need to go through the Canadian Wireless Telecommunications Association (CWTA). If you want to focus on Europe or perhaps Asia-Pacific, then there are other 3rd parties that you'll need to work with.

If you are just starting off with mobile messaging, may I recommend that you start off with a single short code. There is still a lot of work to do, so keeping it simple in the beginning will help you from getting too overwhelmed.

When you request your short code, you'll now be required to provide an overview of your campaign. The registrars will be loading this information into a searchable database that carriers can access. The intent is to speed up the campaign approval process by requiring more information up front.

Some registrars (like Neustar) will let you request your short code before you submit the campaign summary. This lets you know what your short code is so that you can incorporate it into any print, broadcast or other media while in parallel you work out the details of the campaign.

Step Three: Watch your legalese
Make sure that you have worked out your privacy policy and your terms and conditions. You'll need to have this information ready to present to the carriers when they review your campaign brief. Your agency that you are working with will have its own privacy policy and T&C that could cover your marketing program. But you'll still need to make sure that you have one of your own - even if you are a sandwich shop that lets your customers text in their orders.

Step Four: Speaking of campaign briefs...
Yup. Once you've procured your short (or long) code, you'll now need to get it provisioned on the carriers' networks. You'll need to explain to the carriers what your campaign is all about. If you've ever been a teenager before, it will sound all too familiar. "Where are you going? Who are you going out with? Who else will be with you? How can I reach you? Are you going out dressed like that?!"

Here's typically the information that you'll need to provide to the carriers:

1. Your contact info and your technical person's contact info
2. The short code (or long code if in Europe or Asia-Pac) that you'll be using. You'll need to provide proof that you have the right to use the short code in the form of a purchase receipt.
   
3. Will you be charging your message recipients anything to receive the message or to download anything? If so, how much?
   
4. When do you intend to start your campaign and when do you intend to finish it
5. The URL to your terms and conditions
6. The URL to your web-hosted opt-in page (if you are allowing people to opt-in from the web)
   
7. A summary of your program
8. The name of your program
9. Whether you'll be sending transactional (triggered alerts) or subscription (regularly-sent) messages
   
10. Keywords that you'll be using to enable people to opt-in to your program.
11. A step-by-step user experience for your program. The carriers will follow the steps that you detail to test your campaign prior to launch and while it is in process.
    
    WARNING: any discrepancy between what you say should happen and what actually happens could result in the carrier delaying or suspending your campaign on its network.
    
    Define how the customer will interact with your campaign for opt-ins, obtaining help, opt-outs, and examples of messaging from your campaign.

Whew! That's a heck of a lot of information, isn't it? Fortunately, you don't have to go to each carrier yourself. Your agency (or SMS aggregator, if you are directly working with one) will be submitting it to the carriers on your behalf.

Step Five: Refine, Revise
Don't be discouraged if your campaign is rejected. Sometimes carriers reject a campaign due to insufficient information. Make sure that you allocate time to rework your campaign brief after its been submitted.

Step Six: Lock and Load
Once the carriers have approved your campaign, let 'er rip. Have fun and enjoy the benefits of this emerging and engaging channel.

Beware of Co-Reg in Mobile Marketing

MediaPost yesterday reported that a new organization, Mobile Advocacy Coalition, was formed. It intends to ask the Federal Communications Commission to specify that technology companies that act as "mere conduits" aren't liable for wireless ads that violate the Telephone Consumer Protection Act, according to the group's attorney, Scott Delacourt, a lawyer at Wiley Rein.

The main reason why this lobbying group was formed was response to the Ninth Circuit Court of Appeal's recent decision in a lawsuit against Simon & Schuster and mobile marketing company ipsh!.

In a nutshell, Simon & Schuster are the defendants in a $90M class action lawsuit stemming from a 2006 incident. Laci Satterfield filed the suit after her young son is said to have received a text message in the middle of the night warning him that the "next call you take may be your last." The text was a promotion for Mr. King’s book, "The Cell." Though the text message was sent in the middle of the night, I'm not aware of whether the child woke up in the middle of the night to read said text message.

First of all, you should get to know a bit more about the Ninth Circuit Court of Appeals. Headquartered in San Francisco, this is the same group of enlightend individuals that ruled in 2002 that it was not legal to recite the Pledge of Allegiance because it contains the words "under God".

At the heart of the matter is the federal Telephone Consumer Protection Act (TCPA) that makes it unlawful to generate automated calls to mobile phones without the "prior express consent of the called party." The Ninth District Court of Appeals holds that text messages sent to mobile phones is the same thing as voice calls. The TCPA applies to automatic telephone dialing systems (ATDS), equipment that has "the capacity to store or produce telephone numbers to be called, using a random or sequential number generator and to dial such numbers."

But here's where the hair splitting begins. The appellate court wasn't concerned with whether the system used to the send the text messages was an actual ATDS. They felt that the proper question to ask is whether system had the capacity to be used as an ATDS. With no evidence presented during the original trial to the contrary, the court overruled the original judgment and ordered the case back to trial.

The sequence of events that lead to that fateful text message being sent on that fateful night is commonly known as "co-registration". Ms. Satterfield did not directly opt-in to receive text messages from Simon & Schuster. She became a registered user of Nextones in order to receive a free ringtone. During the registration process, she checked a box which read, in part: "I would like to receive promotions from Nextones affiliates and brands" - boilerplate verbiage used in co-registration. The appellate court rules that Simon & Schuster is neither an affiliate of Nextones nor is it a brand of Nextone. Therefore, the text messages they sent in this campaign were unsolicited - a violation of the TCPA.

Co-Reg is a widespread tactic used for lead generation especially in email marketing. It is one means of generating new leads and customers. But it's also one source of messages that recipients classify as spam. Irritating as it is, email spam is nevertheless tolerated a lot more than SMS spam - partly because mobile phones are considered much more personally than the so-called personal computer, and also partly because people originally paid for each text message while email is free.

Mobile marketers should continue to follow this case because it has direct bearing on our industry. While co-registration may be an acceptable lead generation tactic used in email marketing, the case of Satterfield v. Simon & Schuster, Inc. indicates that mobile marketers should proceed with extreme caution if not avoid it altogether.

How To Build Your Worldwide Customer Base

The industry trends are indicating that mobile broadband is on pace to become the Number One means of accessing the Internet worldwide. A recent publication from the International Telecommunications Union (as reported by the Associated Press) says that six in ten people worldwide now have cell phone subscriptions, indicating that mobile phones are the communication technology of choice - especially among developing nations. One of the fastest growing areas is in mobile broadband subscriptions.

There are two reports - both published by Forrester Research - that I find interesting as well. A mail survey fielded in February and March 2008 of 61,033 US and Canadian households and individuals ages 18 and older reported that about 7% of these individuals used their mobile devices for Search. Another survey of 5,400 US and Canadian individuals ages 18 to 88 in August 2008 reported that 75% of these individuals used their mobile devices for Search. What would account for this huge difference? A different sampled population? Perhaps. But even so, these two surveys taken at different dates do indicate that Search has risen to be one of the top activities that people do with their mobile devices.

Oh by the way...did you also read that the iPhone is the Number One mobile browsing platform commanding a huge 66% marketshare?

So what does this all mean? It means that a substantial population of customers have their first contact with your brand via a mobile device. So, Mr. and Ms. Marketer: do you have a mobile strategy? Do you have plans in place to welcome these mobile first-contact people to your brand?

Here's some ideas for you:

(1) A really simple mobile-friendly web home page
Don't mess with WAP - just use HTML that is formatted for the small screen. Starting with the iPhone and every mobile device thereafter, mobile web browsers are now standard.

(2) Get yourself listed in Google Maps for mobile devices
You'd be surprised how many people would benefit from knowing about your services just because you're close by to where they are or where they want to be. Also, include the URL to your mobile-friendly home page, not the URL to your main site's home page.

(3) Invite visitors to your mobile site to sign up for email newsletters
Opt-in email marketing is the most effective means of customer relationship management. After they've given you their subscription permission, send them mobile-friendly emails. These are just HTML-formatted emails that are right sized for the smaller screen. Give them timely and relevant offers. Mobile emails are THE perfect vehicle for coupons, for example.

The nice thing about opt-in emails is that you now have plenty of opportunity to engage in a meaningful communication with these people and gradually acquaint them with your products and services.

And speaking of email, I'm disappointed that most of the blog posts I've read on Mobile Marketing are predominantly written by folks with backgrounds in brand marketing and in direct marketing. I've not (yet) read anything written by anyone with a background in email marketing. This dearth of information is a shame since email marketing is still the best real-time direct-response marketing channel.

(4) While you're at it, invite visitors to your mobile site to sign up for text messaging alerts
There's a reason why these people found you via their mobile devices. Engage with them the way that they naturally engage with their world.


There ya go. It's all about maximizing the experience at point of first contact. Very simple, very easy to do and best of all, it won't cost you a lot in terms of time or money.

Email Marketers: I want to hear from you! How are you integrating mobile and email into your marketing mix?

Voice-Enabled Gift Cards?

Gift cards - we all get 'em and love 'em. Gift cards have sure taken the stress out of finding the perfect gift for Aunt Edna. They have also taken the stress out of receiving the perfect gift from Aunt Edna. "Gee, thanks for the coffee mug with matching sweater!" Can you ever imagine the day that gift cards will have the technology that enables you use them as a phone to call your Aunt Edna and thank her personally? Sound far-fetched? Perhaps. But let's turn it around a bit. Can you imagine the day that your mobile phone can be used as a gift card to make in-store purchases? Imagine no more. It's real and it's already being tested around the world. But what does this have to do with email? Lots - about $36 billion dollars' worth.

Thanks to the technology called Near Field Communication (NFC), financial transactions such as mobile couponing and gift card redemption can be done simply by touching your mobile phone to an NFC-enabled point of sale device and providing some type of security input. Simply put, NFC is one of the many varieties of "contactless technologies" being explored today. NFC is designed to operate over very short distances, typically less than 4cm, and is being seriously looked at in the world of mobile commerce - mainly because customers worldwide have confirmed that the mobile phone is the preferred form factor for contactless services.

Research firm Strategy Analytics estimates that mobile commerce conducted via NFC will facilitate over $36 billion of worldwide consumer spending by 2011. Nineteen of the world's largest mobile network operators (MNOs) have been working together in a Global System for Mobile (GSM) Association initiative to create and define a global approach to enable NFC services on mobile phones. Together, these nineteen MNOs represent about 45% of the worldwide GSM market, which addresses over 800 million customers.

So what does mobile NFC have to do with email? The fact that more and more consumers worldwide are reaching for their mobile phones for data services (including email) is already yesterday's news. Some consumers, in fact, are starting to use their mobile phones as their only means of viewing their emails. Emails viewed on mobile phones will be around for a long time. SMS messaging is very expensive for the marketer to do thanks to the market-killing practices of mobile carriers in the US.

Opt-in email marketing is the most cost effective channel today and will continue to be so tomorrow. Coupon promotions are well known to drive sales. But email is a digital medium hence coupon redemption is restricted to either digital transactions (e.g. a coupon code entered at time of purchase on an e-commerce web site) or it must be transformed into something physical (e.g. printing an email with the coupon to be redeemed at an outlet). New entrants to mobile marketing are experimenting with barcode images embedded within emails that are scanned by the point of sale reader. The details of this capability are still being worked out.

Mobile NFC will extend the power of email marketing to new heights. Brands - especially those having physical outlets - can extend all kinds of incentives and rewords to their customers. In the not-too-distant future, when you're reading your emails on your mobile phone, you'll see one from your favorite brand with a special offer to you. You click on the link where you go to a mobile site which will download the coupon or gift card which is now stored on your phone's SIM card. You go to the store, try on the size, style and color of the outfit you want, wave your mobile phone over the point of sale NFC reader and the coupon/gift card amount is automatically applied to your purchase. Security? Not a problem. Provide your thumbprint on your mobile phone's screen to verify the transaction and away you go.

Mobile NFC is still a tad in the future - at least here in the US. But don't wait! If you are a mobile marketer, start thinking now of how you can reach your customers with email campaigns tailor-made for your customers' increasingly mobile lifestyle.

Have you ever used your mobile phone to make a payment? How would you rate your experience? Leave me a comment!

Vis, Estee Lauder, Lancome, Clinique, Revlon...What Do You Recommend?

Customer reviews technology vendor, Bazaarvoice, got a recent write-up in Internet Retailer. They've introduced a new social commerce application, MobileVoice, that creates a mobile web site for a retailer, and populates it with customer reviews listed by product category. This mobile web site lets shoppers search by keyword or by SKU number. Having this information handy really enhances the buyer's choice at a critical point of decision: in the retail store.

One of the first retailers to launch mobile reviews from Bazaarvoice is Sephora USA, Inc. "In-store shoppers can simply read the reviews on any product, or use top-rated products as a guide," so says Julie Bornstein, Sr. VP of Sephora Direct.

Once again, this new site shows that two of the hottest topics these days, mobile marketing and social networking, combine in a powerfully complimentary manner. There are so many cool ways to promote these types of social m-commerce applications - the least of which should include campaigns to their customers who subscribe to their email marketing promotions. It's already been proven that including customer product reviews, buyer recommendations, and Top Rated products in promotional emails increases sales.

So with Sephora, there's a high probability that many of their customers are reading those emails on their mobile phones. Put a link to the social m-commerce site in the email, then. Even better, put a shortened URL generated by tinyurl, bit.ly, is.gd, hex.io, or any others. This makes the URL more mobile-friendly.

Could Sephora also promote this site through SMS messaging campaigns? Sure; why not. But as I said before - there's a higher cost to SMS messaging than there is to email messaging. In today's down economy, budgets everywhere are getting squeezed. Just remember: mobile marketing isn't just SMS; using email for mobile marketing is a powerful compliment.

Do you use a social m-commerce site to get buying advice when you're in the store? If so, share your experience. If not, why not? Leave me your comment. I want to hear from you.