Mobile Marketing Dependence Day

2 © 2011 ExactTarget | www.ExactTarget.com/sff

SUBSCRIBERS, FANS, & FOLLOWERS is an ongoing series of research reports that sets aside theories, assumptions, and widely held beliefs to discover the truth about consumer preferences and behaviors as they interact with brands through Email, Facebook, and Twitter. These unique reports draw on the experience of real consumers, collected through extensive research, consumer focus groups, and online surveys.

To date, SUBSCRIBERS, FANS, & FOLLOWERS has explored why and how consumers engage–and disengage—with brands across the most popular one-to-one marketing channels: Email, Facebook, and Twitter. We’ve identified the unique characteristics of each channel and shared key strategies for building an effective, integrated marketing program.

In this report, we’ll explore:

• The riseofmobile and thegrowthof themobilemarket

• The arrival of “Mobile DependenceDay” for consumers as they embracesmartphones

• The impact of consumers’ newsmartphone dependence on channelpreferencesandpurchasingbehavior

By taking a closer look at the mobile phenomenon, we hope to provide you with valuable insight into how the landscape of interactive marketing is changing, the importance of engaging users in the mobile environment, and how marketers can position themselves to take advantage of this new platform.

INTRODUCTION

3© 2011 ExactTarget | www.ExactTarget.com/sff

OVERVIEW: mObIlE DEpENDENCE DayFor years now, we’ve heard proclamationsthat this year will be the “Year of Mobile”…then the next year…then the next. Expectingthis highly-touted revolution to arrive with aBANG,wefailedtorecognizethatthe“YearofMobile” ishappeningallaroundus—notasaunified cultural experience, but in a momentof personal awakening for each individual,triggeredbyasinglepurchase:thesmartphone.

For more than 40% of the US population,the“YearofMobile”hasalreadyarrived,themomentthescreenontheirfirstsmartphoneflickeredtolife.LikefireworksontheFourthof July, each smartphone lights up itsuser’s lifewith unprecedented functionality,connectivity, and productivity. Ironically,

thatnewfoundpowerandfreedomisquicklyreplacedbycompleteanduttersmartphonedependence.Andforthatreason,thearrivalof each user’s “Year of Mobile” is far lessimportant than their inevitable “MobileDependence Day”—and its impact on ourcultureandourbusinesses.

Tofunctioneffectivelyinthisbravenewworld,marketers must embrace one fact: mobile is not a channel—it’s a platform. Or,moreaccurately,aseriesofplatforms(smartphones,tablets, etc.)—through which marketers canengageconsumers in real time, fromtextingtocalling,appstoemail,FacebooktoTwitter,and beyond. As gatekeepers of the cross-channelmobile platform, consumers controlyourabilitytomarketthroughthesechannels.Thequestioniswhetheryourmarketingteamispreparedtoservetheuniqueneedsofthesemobiledependentsandtheirdevices.


Just 15 years ago, personal cell phones were a relative novelty. In that short timeframe, mobile technology has advanced dramatically, service and equipment have become extremely affordable, and consumers have been drawn to mobile like ants to a picnic.

The fact is, the smartphone market has seen explosive growth in recent years—and, based on market trends, we expect it will continue. In February 2011, comScore reported1 that US smartphone usage had grown by an astounding 60% in the previous 12 months. In addition, the total number of Americans using smartphones rose to 63.2 million in 4Q 2010.

According to the International Data Corporation (IDC)2, the worldwide smartphone market is expected to grow by 49.2% in 2011. This is more than four times faster than the expected growth of the overall mobile phone market—which seems to indicate that current feature phone owners are rapidly switching to smartphones, while non-cell phone owners are jumping directly to smartphones with their first cell phone purchase.

According to our own May 2011 survey:

• 89% of US online consumers age 15+ own a cell phone

• 41% own a smartphone (with email capabilities, web access, and other advanced functionality)

• 48% own a feature phone (typically limited to calling and text messaging)

• Just11% don’t own a cell phone

Although Blackberry pioneered the development of smartphones, the industry landscape is changing rapidly. As feature-rich competitors like Apple’s iPhone and—most recently—Google’s Android platform have emerged, feature phone makers have struggled to maintain market share. In fact, although Android is a relative newcomer to the smartphone market, its popularity eclipses even the iPhone—likely due to its relative affordability. (Many Android models are offered free with a long-term service contract, while iPhones are not.) Overall, one-third (33%) of US smartphone owners have an Android phone, followed by iPhone at 25% and Blackberry at 19%.

TypE Of smaRTphONE OWNED

ThE mObIlE maRkET

Other 18%Blackberry

19%

iPhone25%

Windows 5%

1. “2010 Digital Year in Review” http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_US_Digital_Year_in_Review

2. IDC Worldwide Quarterly Mobile Phone Tracker http://www.idc.com/getdoc.jsp?containerId=prUS22762811

Android 33%

http://www.comscore.com/Press_Events/Presentations_Whitepapers/2011/2010_US_Digital_Year_in_Review

http://www.idc.com/getdoc.jsp?containerId=prUS22762811


Although Android is

a relative newcomer,

its popularity

eclipses even the

iPhone. Overall,

33% of

US smartphone

owners have an

Android phone,

followed by iPhone

at 25%

and Blackberry at

19%.


The smartphone has become a modern day Swiss Army

knife, putting marketers not only in a multi-channel

environment, but a multi-purpose environment as well.

Telephone

31%

Text Message

Email

Browse the Internet

Facebook

Listen to Music

Games

Branded Applications (e.g., ESPN, Groupon, Amazon)

Watch Video

Maps

Twitter

38% 18% 10%2%1%

38% 28% 11% 13%3%

29% 24% 13% 11% 5% 4% 13%

hOW OfTEN DO yOU UsE EaCh Of ThE fOllOWING ON yOUR smaRTphONE?CONSTANTLy ThrOuGhOuT ThE DAy

SEVErALTIMES A DAy

ABOuT ONCEA DAy

AT LEAST WEEkLy

AT LEAST MONThLy

LESS ThAN MONThLy

NEVEr

18% 22% 19% 17% 8% 6% 11%

17% 18% 15% 11% 4% 6% 29%

12% 12% 12% 16% 8% 11% 29%

9% 11% 15% 18% 11% 11% 26%

9% 10% 16% 8% 9% 42%

6% 6% 8% 19% 13% 14% 33%

4% 4% 10% 22% 19% 12% 29%

5% 5% 5% 4% 4% 74%2%

6%


We all know that a smartphone is so much more than a phone. It’s a web browser, an email device, and a social media portal. It can be a mini stereo, a gaming console, a GPS device, an alarm clock, a shopping cart, and a personal flotation device—okay, maybe not that last one…but it’s only a matter of time, right?

The smartphone has become a modern day Swiss Army knife, putting marketers not only in a multi-channel environment, but a multi-purpose environment as well. But how many people are actually using all that

functionality? As it turns out, a surprising number of them are—and this multi-functional usage is likely contributing to the arrival of Mobile Dependence Day in households nationwide.

According to a new survey from Prosper Mobile Insights, some 52.9% of smartphone owners say they use all the functions of their smartphone—to such an extent that they say, “It’s my life.” Another 30.4% say they use all the basic functions of their device, plus a few apps. And just 16.7% use their smartphones exclusively for calling, text messaging, and email.

smaRTphONE UsaGE aND aCTIVITIEs

According to a new survey from Prosper

Mobile Insights, some 52.9% of smartphone owners say

they use all the functions of their smartphone—to such an

extent that they say, “It’s my life.”

http://www.pitchengine.com/pitch/149429/




“I use all three of these (Facebook, Twitter, and Email). However, I use Facebook the most—I check it several times a day (gotta keep up with my huge family and all my friends, lol). Of course I have a Facebook app on my phone, and I can’t live without it.” – Kelsey (female, age 23)


ThE smaRTphONE’s bIG fIVE

Calling

It’s true! People actually use their smartphones to make phone calls. In fact, calling is actually the most common smartphone use.

• 31% of consumers say they use theirsmartphones to make calls “constantly throughout the day,” while 69% make several phone calls each day. In total, 87% report making at least one call per day.

•Women 18-24 are actually the least likely touse their smartphones for calling—only 56% say they make calls at least several times per day.

TexTing

Texting seems to be something of an “all or nothing” proposition—people who text tend to do so quite frequently.

• 38% of consumers surveyed use theirsmartphone to text “constantly throughout the day,” and 67% say they text at least several times per day. A total of 78% report texting at least once per day.

•Only6%reporttextinglessthanonceamonth.

Five common smartphone functions are far-and-away the most popular among smartphone owners:

1 2


“I use all three of these (Facebook, Twitter, and Email). However, I use Facebook the most—I check it several times a day (gotta keep up with my huge family and all my friends, lol). Of course I have a Facebook app on my phone, and I can’t live without it.” – Kelsey (female, age 23)

email

Email is the third most common among smartphone activities.

•Morethanhalfofconsumers(53%) use their smartphone to

check email at least several times per day. 29% report they check email “constantly throughout the day,” and a total of 66% check email at least once per day.

• Although teens are the least likely to checkemail on their smartphones, a majority still do so regularly. 20% of smartphone-owning teens report checking email throughout the day, 41% check email at least several times per day, and 65% check email at least once per day.

inTerneT

Web browsing on-the-go is also a common activity among smartphone owners.

• 18% of smartphone ownersuse their smartphones to browse the Internet “constantly throughout the day,” and 58% do so at least once per day.

• Interestingly, web surfing is more commonamong 18-24 year olds than among their younger counterparts. This is likely due to the limitations placed on teens during the school day—it’s much easier to sneak a text or check an email than browse your favorite website.

FaCebook

Although not as popular as the smartphone functions mentioned previously, Facebook is the only social media outlet used by a

majority of smartphone owners on a daily basis.

•17%ofthosesurveyedusetheirsmartphonesto check Facebook “constantly throughout the day,” and 35% check Facebook at least several times a day. In total, 50% check Facebook at least daily.

• Both men and women check Facebookfrequently—approximately two thirds of smartphone-owning men and women age 34 and under use their smartphones to check Facebook at least once per day.

3 4 5


As we all know, smartphone capabilities are constantly expanding. New features, functions, and applications are introduced on a near-daily basis. And although not all of these are readily adopted by smartphone owners, our research shows a few front-runners that seem to be gaining popularity.

loCaTion-based serviCes (lbs)

“Checking in” using location-based services on a mobile phone is still not a mainstream activity, but adoption is definitely increasing—and the levels of reported usage are somewhat unexpected.

• 28%ofsmartphoneownershaveusedtheirphoneat leastoncetocheckin using location-based services like Foursquare, Gowalla, and Facebook Places. This represents 12% of the overall US online population.

• Womenaremorelikelytousecheck-inservices—37%offemalesmartphoneowners have checked in, compared to 21% of males.

• Within the35-54agegroup,13%ofmenhaveeverchecked inwhile38% of women have done so. The difference is likely due to the fact that these women are also in the demographic most likely to consider themselves “Deal Seekers” (as described in SUBSCRIBERS, FANS, & FOLLOWERS report #3, THE SOCIAL PROFILE).

• This data suggests—contrary to early speculation that check-in serviceswould be embraced mainly by young hipsters on the prowl—that deal-seekers are now eagerly gravitating to Foursquare and other LBS providers who offer savings based on proximity.

QuiCk response (Qr) Codes and barCodes

QR codes—those black-and-white pixilated symbols that seem to be popping up everywhere—are just slightly less popular than check-ins. 24% of smartphone owners (10% of the overall online population) report having scanned a QR code or similar barcode to obtain more information about a product, business, or event.

Comparison shopping

Retailers should take note of this relatively new trend, as consumers are embracing the ability to compare prices while shopping in a brick-and-mortar store. 20% of smartphone owners report having done this, and utilization is fairly universal for all consumer groups—both men and women in all age brackets.

mobile Coupons

Along the same vein, 15% of smartphone owners (6% of the overall online population) report having redeemed a mobile coupon, with women being more likely than men to utilize this capability (18% vs. 12%).

push noTiFiCaTions

This emerging capability allows companies to send messages directly to their app users, even when the app is closed. Push notifications are especially useful for conveying timely information like breaking news, exclusive sales, and sports updates.

EmERGING mObIlE aCTIVITIEs

http://www.exacttarget.com/subscribers-fans-followers/social-profile.aspx

http://www.exacttarget.com/subscribers-fans-followers/social-profile.aspx


28% of smartphone owners have used their phone at least once to check in using location-based services like Foursquare, Gowalla, and Facebook Places. This represents 12% of the overall US online population.

WhICh Of ThE fOllOWING ThINGs haVE yOU DONE ON yOUR smaRTphONE?

Checked the Balance on a Bank Account

“Checked In” using Location-Based Networking (i.e., Facebook Places, Foursquare, Gowalla)

“Liked” a Company on Facebook

Scanned a Qr Code or Barcode

Paid a Bill

Shopped for Competitive Prices While in a Store

Shared an Article via Email

read a Book

Watched a Movie or TV Show (e.g., Netflix, hulu)

Checked in for a Plane Flight

redeemed a Mobile Coupon

Purchased Tickets to an Event

rated a restaurant

Shared an Article via Twitter

34%

28%

20%

20%

17%

16%

15%

15%

12%

11%

5%

27%

24%

23%

pURChasING bEhaVIORCalling and texting and surfing the Web…It’s all well and good, but as marketers, we want to know three things about consumers in the mobile marketplace:

• Who’sbuying?

• What’spromptingthemtobuy?

• Howaretheymakingthepurchase?

Overall, 16% of smartphone users say they’ve made a purchase as the result of a marketing message they received on their smartphone. Android users are the most likely to report making a purchase after receiving a message on their smartphones (21%), followed by Windows smartphone owners (19%), iPhone owners (17%), and Blackberry users (10%).

When it comes to figuring out the types of messages that are most likely to drive purchases, four sources lead the way: email, text messages, Facebook, and shopping-related apps (e.g., apps specific to Amazon, eBay, Groupon, etc.).

• Without question, email is the mosteffective mobile purchase trigger. Marketing messages delivered through email and read on a smartphone have driven more consumers to purchase than any other method. 55% of those who’ve made at least one purchase based on a mobile message report acting on an email.

• Textmessaging(41%),Facebook(35%),andshopping apps (32%) also show a strong ability to drive purchasing behavior.


hOW DID yOU RECEIVE ThE mEssaGE(s) ThaT lED TO ThE pURChasE?*

Email

Text Message

Facebook

Shopping related Application (e.g., Amazon, eBay, Groupon)

Twitter

Telephone

Location-Based Social Networking (i.e., Facebook Places, Foursquare, Gowalla)

Non-Shopping related Application (e.g., Game, News, Weather)

56%

41%

35%

32%

20%

18%

15%

11%

When it comes to figuring out the types of messages that are most likely to drive purchases, four sources lead the way: Email, Text Messages, Facebook, and Shopping-Related Apps (e.g., apps specific to Amazon, eBay, Groupon, etc.).


*Percentages are based on the 16% of consumers who have completed a purchase as a direct result of a marketing message received on their smartphone.


Some interesting and unexpected data surfaces when we investigate the ways consumers choose to complete their smartphone-prompted purchases.

Through The smarTphone

More than half of the 16% of consumers who’ve made a purchase after receiving a mobile message (about 9% of the total US online population) report that they’ve completed at least one purchase on their smartphone itself. (This includes purchases made through the smartphone’s browser, directly through an app, or through the app store.) Thisisacriticalpointformarketers,asitillustrateshowconsumers’comfortlevelwithmobilepurchasesisincreasing,while also highlighting the fact that people who buy as a result of mobile messages are likely to complete these purchases through multiple channels.

on a CompuTer

43% of these consumers (about 7% of all US mobile consumers) have completed their purchase on a desktop, laptop, or tablet computer. This makes tracking purchases very difficult, as many effective marketing messages received on smartphones are leading to purchases from a computer—a fact that may be causing marketers to unfairly attribute purchases to search or direct navigation activity. Unfortunately, the analysis necessary to properly attribute these

purchases can be difficult and expensive, so misattribution will likely continue to plague mobile marketers.

in person

35% of these consumers (about 5.5% of all US mobile consumers) report completing their purchase in person. This aligns closely with the original notion of mobile shopping, in which people could receive messages on the go, and these messages would prompt a visit to a physical store where the purchase could be completed in person.

It’s both fascinating and instructive to explore the correlations between how messages are received and how purchases are completed. By looking at how messaging channels and purchasing channels line up, we gain insight into the specific types of messages that are likely to drive specific types of purchases.

email messages

Email is most likely to drive purchases either through a browser (the smartphone browser or a computer browser) or through the app store (as when companies promote the launch of new smartphone applications). Email isn’t as effective at driving in-person or in-app purchases.

hOW CONsUmERs makE smaRTphONE-pROmpTED pURChasEs

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Email is most likely to drive purchases either through a browser or through the

app store. Email isn’t as effective at driving in-person or in-app purchases.


FaCebook and TwiTTer messages

Both Facebook and Twitter tend to drive purchases that can easily be tracked on the phone itself, including purchases made through the smartphone browser, through apps installed on the phone, and through the app store. People who act on Facebook and Twitter messages are less likely to go back to their computer to complete the purchase—and neither of these platforms is as effective at driving in-person purchases.

TexT messages

Text messages are the most likely to drive in-person purchases—even more so than messages delivered through location-based social networks like Foursquare and Gowalla. A well-timed text can drive store traffic—but marketers should use restraint with this tactic, as texting is still considered a sacred space by many consumers.

apps

There’s no doubt about it—apps drive purchases through apps. Apps represent a closed system on the smartphone, and messages delivered through apps don’t tend to prompt purchases through other channels. However, in-app purchases have the distinct advantage of providing simple, straightforward purchase tracking.

hOW DID yOU COmplETE ThE pURChasE?*

43%

35% 34%31%

19% 18%

*Percentages are based on the 16% of consumers who have completed a purchase as a direct result of a marketing message received on their smartphone.


Do shopping apps cause people to buy more, or are the people who install these apps already predisposed to purchase?

DEClaRaTION Of app DEpENDENCESmartphone owners are notoriously “app-happy.” It seems there’s an app—or twenty—for every possible need, and every smartphone owner has a few favorite apps they just can’t live without.

Half of all smartphone owners have more than ten apps on their phones—iPhone and Android owners lead the way with an average of 24 and 21 apps, respectively. In contrast, Blackberry owners average only nine apps—a figure that may be explained by the fact that relatively few apps are available on the Blackberry platform.

Shopping apps have become increasingly common as smartphones gain popularity. 56% of smartphone owners have at least one shopping-related app on their phones, and 15% have more than five shopping apps currently on their phones. Not surprisingly, those who install shopping apps are also the most likely to have ever made a purchase using a smartphone.

• Only 2% of people with no shopping apps installed on theirsmartphones report having ever made a purchase as the result of a message they received on their smartphone.

• Among people who’ve installed six to ten shopping apps on theirsmartphone, 39% report having made a purchase because of something they saw on their phone.

• 70%ofpeoplewith11ormore shoppingappson theirphone reporthaving made a purchase.

The big question is… which is the chicken and which is the egg? Do shopping apps cause people to buy more, or are the people who install these apps already predisposed to purchase? While we can’t get a definitive answer from the data collected, it’s logical to assume that a bit of both are true. People who install shopping apps are by nature “handraisers,” who identify themselves as mobile shoppers when they download and install these applications. Nevertheless, shopping apps provide a convenient purchasing channel; as a result, handraisers are likely buying with greater frequency.


DIsUsE “appTROphy”While our survey results are in line with other smartphone research, there are some differences worth noting. Our survey asked about currently installed apps, which yielded an average of 24 for iPhone users and 21 for Android users. By contrast, Nielsen’s September 2010 report asked about the number of apps downloaded—which yielded an average of 40 for iPhone users and 25 for Android users. The difference suggests that consumers download far more apps than they ultimately keep.

Whether through deletion or disinterest, this “apptrophy”—the death of an app due to consumer disuse—is clearly a challenge for app developers. It’s not enough to get the download. Companies that rely on apps as a critical part of their business must also get permission from purchasers to continue communications through other channels.

While in-app communications reach only active app users, email, text, and smartphone “push” notifications reach both active and inactive users, giving developers the ability to increase app usage and upsell/cross-sell other products. In the increasingly crowded space of the smartphone (and tablet) screen, developers who engage in direct, out-of-app communications with their customers will have a distinct advantage over those who don’t. The cure for apptrophy begins with YOU!

TWITTERWith its real-time nature, Twitter is a natural fit for smartphones. And while cause-and-effect is unclear (are Twitter users more likely to own smartphones, or are smartphone owners more likely to use Twitter?), it’s no surprise that smartphone owners are the most avid users of Twitter. Those with smartphones are:

• Fivetimesmorelikelytocheck Twitter “constantly throughout the day”

• Morethanthreetimesmore likely to check Twitter at least several times a day

ª More than twice as likely to check Twitter at least once a day

While the overall impact of smartphone ownership is even more dramatic for Twitter than Email or Facebook, it’s important to keep the relative numbers in perspective, as Twitter’s user base is significantly smaller.

faCEbOOkSimilarly, use of Facebook—whether as a social tool or a time-filler—goes up with the purchase of a smartphone. Those with smartphones are:

• TwiceaslikelytocheckFacebook “constantly throughout the day”

• 58%morelikelytocheckFacebook at least several times a day

• 44%morelikelytocheckFacebook at least once a day

The impact of smartphones on Facebook use is less dramatic for teens, although teens with smartphones do check Facebook more often than those without. (80% of teens with smartphones report checking Facebook at least daily, as compared to 69% for those without a smartphone.) This may be due, in part, to the important role of Facebook in teens’ social lives, which makes them likely to check Facebook regardless of whether or not they have a smartphone.

EmaIlDespite the fact that consumers tend to view email as a means of conducting more “formal” or important communications, email usage increases with the purchase of a smartphone. Those who have a smartphone are:

• 47%morelikelytocheck email “constantly throughout the day”

• 30%morelikelytocheckemail at least several times a day

• 8%morelikelytocheckemail at least once a day

Interestingly, this trend is even more pronounced among teens. While teens are likely to check Facebook slightly more often than they check their email, smartphone ownership increases teen utilization of email dramatically. While only 50% of teens without smartphones check email at least once a day, 77% of teens with smartphones do so. In fact, teens with smartphones are nearly as likely to check email every day as they are to check Facebook every day (80%).

By their very nature, smartphones put the internet in your pocket and the world at your fingertips. With such power in the palm of your hand, it’s no wonder consumers rely on these tiny devices for every aspect of daily digital life. In keeping with the SUBSCRIBERS, FANS, & FOLLOWERS focus of this research series, we asked consumers to tell us about the impact smartphone ownership has had on their use of Email, Facebook, and Twitter.

At a high level, smartphones aredriving increased utilization of digitalcommunication across every channel.Email, Facebook, and Twitter are all seeing increased activity due to the convenience and immediacy afforded by smartphones.


“I use Twitter almost exclusively on my phone. It just seems more immediate that way.” – Michael (male, age 20)

ImpaCT ON EmaIl, faCEbOOk, & TWITTER


Through their innovative multi-channel marketing program, Scotts Miracle-Gro has achieved remarkable growth in customer engagement and loyalty. Their creative use of email, social media, SMS, and mobile apps has helped them become—and remain—the world’s largest marketer of branded consumer lawn and garden products, with an email subscriber base in the millions.

“Email is the backbone of our marketing program,” says Kip Edwardson, Director of Interactive Marketing at Scotts. “We’ve got proven ROI on our email program, so our overarching goal is to get people signed up for email by any means necessary.”

That proven ROI is no accident. Scotts’ robust monthly email program includes highly personalized content based on the consumer’s grass type, geographic location, and any self-identified weed or insect problems. In addition, Scotts sends seasonal reminder emails designed to drive repeat purchases, and other timely messages that create cross-sell opportunities for plant food, weed killer, grass seed, and other products.

With so much riding on email, Scotts understands the importance of making it easy for customers to register for their email program through a variety of channels.

On the Scotts website, visitors receive detailed information about the

features and benefits of the email program, giving them a reason to sign up.

Scotts invites Facebook fans to become email subscribers by incorporating registration info on their company Facebook page—and 50% of fans convert!

Scotts has also entered into a unique partnership with Major League Baseball. In addition to allowing customers to buy the same grass seed that’s used in their favorite ballpark, Scotts

is able to connect with fans on-site at baseball stadiums across the country using big screen video vignettes and

SMS text-in registration campaigns.

Need personalized lawncare advice on the go? Scotts has an app for that! The

My Scotts Lawn app provides personalized advice based on location, a custom lawn care

calendar, links to coupons and offers, access to live customer care, and much more. The app has

been wildly successful—in fact, users spend an average of seven minutes on the mobile app.

“For us, it’s all about giving people what they want through their preferred communication medium,”

Edwardson tells us. “For many people who like Scotts, email is enough. Others who REALLY like Scotts will download our app. Then there are those people who just rely on our robust web content. And those are all just fine with us—as long as they keep buying Scotts.”

mUlTI-ChaNNEl appROaCh hElps sCOTTs CUsTOmER basE GROW


You thought it was tough competing for mindshare when laptops were a novelty? Today, your messages are vying for attention on a device that supports not only email, but also text messaging, web browsing, social networking, shopping, gaming, and endless other attention-grabbing applications. The good news is, smartphones make it possible to reach your subscribers via email anytime, anywhere. The bad news is, now you’re trying to get your message across on a screen that’s roughly the size of a Post-It note!

We’ve already noted that smartphone ownership actually drives increased usage of mobile email—but why? And how can marketers use this development to improve their interactive marketing strategy?

Given the recent improvements in smartphone text entry and navigation, we speculated that an improved user experience may play a role in the growth of mobile

email. So we decided to evaluate today’s mobile email experience relative to the user experience in the recent past. We asked our survey participants to rate the degree to which they agree or disagree with the following statements—the same statements we asked about in June 2009, just two short years ago.

“My use of email on a mobile device differs significantly from my use of email

on a desktop/laptop computer.”

In June 2009, 64% of survey respondents agreed that their use of email on a mobile device was significantly different from their use of email on a desktop or laptop computer. In response to that same statement in May 2011, only 51% agreed.

While there are still differences in how people use email on a smartphone versus a computer, the

improvements in smartphone technology and user experience are creating greater parity between mobile devices and desktop/laptop computers.

“I spend less time looking at an individual email on my mobile device than I would

if I looked at the same email on my desktop/laptop computer.”

In 2009, 67% of people agreed that the time spent looking at an individual email on their mobile devices was less than if they looked at the same email on a computer. In 2011, that number dropped to 44%.

First, this suggests that the improved user interface of mobile email is prompting people to spend more time looking at individual emails on their mobile devices. Second, it suggests that while some people may still treat mobile email as a tool for inbox triage and quick

ThE EVOlUTION Of mObIlE EmaIl

1

2


check-ins, this is becoming less common as more and more smartphones become a primary email device.

This is especially significant from an email design perspective. Many companies are seeing up to 30% of their emails opened on smartphones. Consideration for the small screen is no longer optional for email designers—it’s a necessity.

“I flag or note (mentally or otherwise) email I read on my cell phone with the intent of

looking at it later on a desktop/laptop computer.”

In 2009, 59% of people agreed that they use their smartphones as a mental note or flagging tool for emails, with the intent to respond later when they had a chance to open their laptop or sit in front of their desktop. In 2011, that number dropped to 38%.

This is further evidence that smartphones are no longer viewed as an email triage tool. Instead, smartphone users increasingly address emails at the point of exposure (i.e., on the smartphone) rather than waiting until they’re on their laptops, as in years past. Smartphones have become an efficient means of both receiving and responding to email—and the user experience on a smartphone has improved to the point that it’s no longer worthwhile to wait and act on the email from a desktop/laptop.

It’s still important for designers to consider the laptop/desktop experience when designing emails. While users are more likely to deal with email at the initial point of exposure, they may access the same email from both a computer and a smartphone. (This is cloud computing at its finest!)

“I am as likely to read commercial email (such as newsletters, promotions, etc.) on

my mobile device as I am on my laptop or desktop.”

There was relatively little change in how consumers responded to this statement. In 2009, 53% disagreed with this statement, while in 2011, 48% disagreed. Despite improvements to the user interface, people still won’t spend as much time reading commercial email on their smartphones as they will on their computers.

This emphasizes the importance of email design that renders well regardless of the device used to open the email. Email design must be cross-platform compliant—ensuring that the design is engaging and readable whether it’s viewed on a 21” monitor or a 2.5” smartphone screen.

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22 © 2011 ExactTarget | www.ExactTarget.com/sff22 © 2011 ExactTarget | www.ExactTarget.com/sff

“I am constantly on both Twitter and Facebook and at the computer or my phone pretty much all day. I cannot even guess how many times I check or post because it is constant. I look at email every time I get the alert. I check in on Twitter whenever I can, or when I get a new follower or new reply. That’s mostly on my phone…Definitely this addiction is growing.” – Judi (female, age 32)

mObIlE DEpENDENCE DayAre you getting dirty looks (or worse) from your significant other because your phone is permanently affixed to your hand? Finding yourself more interested in your text conversation than the live one taking place around you? Waking up throughout the night to check your email?

You’re not alone. You’ve experienced your own personal Mobile Dependence Day—and once you’ve crossed that line, it seems there’s no going back.

People have undeniably become dependent on (or even addicted to) their smartphones, finding it nearly impossible to “unplug.” As we move into the heart of the summer travel season, more and more of us will discover that “vacation” just doesn’t have the same meaning it used to.

To put this dependence in perspective, we decided to find out what people would be willing to give up in order to keep their smartphones. In a “desert island” scenario, we asked survey respondents to tell us whether they would choose their smartphone over various other modern amenities, including their car, refrigerator, HDTV, and more.


72%

40%

32%

69%

34%

13%

46%

32%

8%

pERCENTaGE Of pEOplE WhO WOUlD kEEp ThEIR smaRTphONE OVER ThE fOllOWING ITEms

Game Console (e.g., Xbox, Playstation, Wii)

Laptop Computer

hD Television

Tablet Computer

Microwave

refrigerator

Dishwasher

Cable/ Satellite TV Programming

Car


Among teens (age 15-17), the only items that won out

over the smartphone were their car, a refrigerator, and

cable/satellite TV. H Even among teens, 16% would

keep their smartphone over a car—the ultimate symbol

of young adult freedom! H Given the choice between

their smartphone and a refrigerator, 46% of teens would

eat out indefinitely. H 72% of teens would give up Xbox in order to keep their smartphone. H

70% of teens would forego the addictive flavor of microwave burritos to keep their beloved phone.

H Adult men and women differed slightly in their responses, but both show remarkable dedication to

the creature comforts: 74% of men and 65% of women would give up their smartphone to watch their

favorite TV shows in high definition. H 85% of men would hand over their smartphone for a fridge

to keep the beer cold—as would 95% of women. H The roadtrip is evidently a top priority for both

genders—only 10% of men and 3% of women would give up their car in favor of a smartphone. H

h i g h l i g h t s :

2% of all respondents said they

would keep their smartphone over

anything else—including their car,

refrigerator, HD television, cable or

satellite TV programming, microwave,

laptop computer, dishwasher, tablet

computer, and gaming console.

These folks aren’t just smartphone

dependent—they’re addicted!

25© 2011 ExactTarget | www.ExactTarget.com/sff 25© 2011 ExactTarget | www.ExactTarget.com/sff

Among teens (age 15-17), the only items that won out over the smartphone were their car, a refrigerator, and cable/satellite TV.

Even among teens,

16% would keep their smartphone over a car—the ultimate symbol of young adult freedom!


Mobile Dependence Day has arrived, at least for a significant percentage of US consumers. So now what?

It’s easy to get caught up in the statistics, but the key takeaways for marketers are pretty simple:

Mobileisnotachannel.As explained earlier, mobile is a series of platforms that allow for on-the-go communications through

Email, Facebook, Twitter, SMS, apps, etc. When developing your mobile strategy, remember that each of these channels plays an important role.

Email, Facebook, and Twitter are more important than ever.With their convenience and immediacy, smartphones are driving

increased utilization of Email, Facebook, and Twitter. These channels should be major components of your interactive marketing strategy—but remember to consider both the mobile and traditional user experience of each.

Comprehensive planning is critical. Today’s consumers aren’t committed to one method of viewing—or acting

on—messages, so marketers must respect the variety of mobile experiences and meet people where they are. That means designing for both the small screen (smartphones) and the large screen (laptop, tablet, or desktop). Similarly, smartphone owners are making purchases on their phones AND online AND in stores. Make buying easy for them, regardless of how they choose to purchase.

Fightapptrophy!Smartphone users love apps—but they vie for attention in a very crowded screen. Creating an app and getting

downloads is not enough—your strategy should include ongoing email and text communications to foster repeat engagement with the app and increase your ability to upsell/cross-sell.

We’re in a period of transition—albeit rapid transition. Just because YOU have a smartphone doesn’t mean everyone has

one. Smartphone owners are still the minority—at least for now—so don’t forget to include texting to/from feature phones in your strategy to reach the mobile masses.

Ongoingevolutionofdevicesandnetworkswillcontinuetoshapemobilemarketing.Domination by smartphones seems

almost inevitable in the near future, but consider this…

If US mobile carriers continue their move away from unlimited data plans, consumers will likely become more conscious of their usage and conservative in their use of data-heavy mobile activities like web browsing and shopping. As a result, marketers should be HUGE proponents of more liberal data plans, broader Wi-Fi networks, and any other measures that would ensure that mobile dependents continue to have the level of connectivity they desire. The greater the mobile connectivity and reach for consumers, the better marketers will be able to use mobile platforms to drive the interactions that translate into sales opportunities—across both online and offline channels.

CONClUsION

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“I have apps for Facebook, Twitter, and email on my phone, and I check them throughout the day. I check Facebook every two hours. I check Twitter every half hour for news and sports updates, and my email every two hours or so.” – Gordon (male, age 27)


Ongoing evolution of devices and networks will continue to shape mobile marketing. Domination by smartphones seems almost inevitable in the near future....

As consumers become more dependent on their smartphones, they increasingly expect information—including marketing messages—to be portable. So you need to meet consumers wherever they are—at home, in the office, or on the go. You need a mobile solution that’s sophisticated, yet easy to use. You need ExactTarget Mobile.

From SMS to full campaign support, ExactTarget Mobile makes it possible to execute mobile programs using the same data set as your email, social, and website programs. Maximize the value of your data, boost your ROI, and reach your mobile-dependent customers with ExactTarget Mobile!

This document may not be copied without the prior written consent of ExactTarget. © 2011 ExactTarget.

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