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INDUSTRY REPORT
A supplement to Shopper Marketing magazine
Upward Mobility: Developing an Eff ective Mobile Shopper
Marketing Strategy
The First Moment of Truth hasbecome a continuous information
loop. The now-legendary phrase the rallying cry for in-store
communication as an integral aspect of brand marketing is
undergoing a dramatic transformation now that consumers are
standing at the shelf with smartphones in hand. For one, theres now
a good chance that the fi nal purchase decision of which Lafl ey
spoke was already made at the store entrance, in the parking lot,
or in the car on the drive to the store infl uenced by marketing
touchpoints that didnt even exist in 2002. Perhaps more signifi
cantly, the purchase decision wont necessarily conclude at the
shelf or at least that particular shelf: after scanning the
packagings UPC, the shopper may discover that a retailer down the
street off ers the same product at a cheaper price; once she gets
there, she might download a coupon for a competing product by
scanning a shelf-sign QR code. Thanks to increasingly sophisticated
mobile devices, the consumer has become an ever-moving target that
is never more than one click, ring, text or tweet away from
entering shopper mode. But, for better or worse, the shopper that
she becomes is savvier and much better informed than her
predecessors, due to the growing number of on-the-go tools at her
disposal.
PRESENTS:
Thirty million times a day P&G brands face their First
Moment of Truth, when consumers stand in front of a store shelf and
decide whether to buy a P&G brand, or a competing product.
A.G. Lafl ey, Procter & Gamble,
then-CEO, 2002
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2INDUSTRY REPORT
Welcome to the Mobile WorldProcter & Gamble already
understands these changes, which is why the packaged goods company
(and industry bellwether) devoted a great deal of resources in 2010
to launching smartphone apps for Tide, Always and other brands,
providing downloadable coupons for top retailers such as Kroger and
Safeway, bolstering its charity initiatives through third-party
apps like CauseWorld, and even selling Pampers through Facebook.
Other packaged goods manufacturers such as Kraft Foods, Kellogg
Co., Kimberly-Clark and Unilever also have been mining the mobile
space for several years although all of the above would likely
admit that they havent yet fully cracked the code on best
practices. Numerous other product marketers are following suit
because of the tremendous potential that the mobile channel
presents. Mobile is the fi rst marketing technology that can be
used through the entire purchase cycle, says Anthony Iacovone,
founder and chief innovation offi cer of Augme Technologies, a New
York-based company specializing in mobile marketing technologies
and services. You start with a mobile call to action in a TV ad,
and you fi nish with a text-message reminder about the incentive in
the store. A mobile phone is always with you, and its almost
always on, says Molly Garris, manager of digital strategy at Arc
Worldwide, the Chicago-based marketing services arm of Leo Burnett.
It lets marketers truly engage consumers by making the message far
more relevant and personal. Mobile marketing has, of course, been
around for years, and has been prevalent in other parts of the
world such as Japan and Israel for more than a decade. Initial
forays in the U.S. were hampered somewhat by strong consumer
backlash to unsolicited phone calls, but the emergence of text
messaging in 2001 made marketing communication far more palatable.
In the last few years, texting has become a standard promotional
tool for many marketers, particularly when targeting younger
consumers. It was the emergence over the last seven-odd years of
the smartphone and its computer-like functionality
Internet access, email, fi le downloading that sparked marketers
to really begin examining the possibilities, however. There are
things you can do with feature phones such as text messaging, but
with smartphones, we can really take it to the next level, says
James Schuh, global digital marketing manager for Kimberly-Clark.
And it was Apple Inc.s launch of the iPhone in 2007 that began
turning the smartphone into a must-have
technology and a cultural phenomenon. The only questions
remaining for marketers are, when will smartphone penetration reach
critical mass, and how many U.S. consumers will use their devices
as an essential shopping tool? By all accounts, the answers to
those questions are very soon and a lot. Roughly one out of four
mobile subscribers already owned a smartphone by October 2010,
according to comScore Inc. More signifi cantly, that means nearly
20% of the U.S. population had one. And The Nielsen Co. predicts
that 51% of the population will be carrying one around by the end
of 2011. The ability to browse the web on mobile devices something
that 36% of the 234 million U.S.
0
20
40
60
80
100
Overall Mobile Activity
2010 Leo Burnett and Arc Worldwide
% who do the following activities at least once a month from
their mobile phone
97
100 100
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97
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Non-Mobile Shoppers
Light Mobile Shoppers
Potential Mobile Shoppers
Heavy Mobile Shoppers
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3mobile subscribers already do, according to comScore initiated
their use as a shopping tool. The ongoing launch and adoption of
smartphone applications that specifi cally or indirectly facilitate
shopping by locating stores,
delivering coupons, organizing lists and off ering trip
incentives, to name a few has taken the concept to new heights. And
with AT&T, T-Mobile USA and Verizon Wireless jointly building a
network aimed at turning smartphones into mobile wallets within 18
months, the future of mobile as a critical shopper marketing tool
seems
uncontestable. I cant fi nd one campaign where having a mobile
component doesnt make sense, says Iacovone.
Anytime you are making a call to action, it needs to be
mobilized.
The Speed of ChangeDespite this rapid evolution, mobile shopping
and, therefore, mobile shopper marketing is still a relatively new
concept. When it comes to employing their mobile devices as a
shopping tool, 10% of users are generating 80% of the volume right
now, says Carrie Newman, research manager at Arc, which conducted
extensive consumer research on the subject in September 2010 (see
page 8). Most people are dabbling, still learning whats available
and how to use it. (For a comprehensive list of mobile shopping
activities, see the chart below.) The same holds true on the
marketing side of things, where many companies are experimenting
with
various tools and technologies but few have developed a
comprehensive strategic plan. A spring 2010 survey conducted by
Forrester Research/Shop.org, for example, found that only 20% of
retailers had implemented a mobile marketing strategy. Product
marketers may be a little further along. A November survey
conducted by the In-Store Marketing Institute found that 35% of
consumer product marketers are already working with smartphone
apps, 30% with mobile coupons, 21% with QR codes and 13% with
location-based services. And better than 40% of the non-users plan
to implement those tactics in the near future. Whats more, in a
spring survey from MediaPosts Center for Media Research and
InsightExpress, 40% of companies said they would boost mobile ad
budgets by 30% or more in 2010. Mobile is a chew toy and were all
teething, says David Apple, chief marketing offi cer for Augme. The
tendency is to do something because its buzzy. But Id say that 50%
of program executions right now are poor. The singular fact that
consumers are migrating to a mobile lifestyle more than 30% of
mobile subscribers use their phones as the sole computer for their
household, according to Morgan Stanley makes embracing the channel
an imperative for marketers. But mobile marketing is an ideal
vehicle for several other reasons as well. For one, it facilitates
the targeted, relevant communication that is the essence of shopper
marketing. As a corollary to that, it also eliminates waste: rather
than distributing 40 million FSIs to anyone who buys a Sunday
newspaper, a brand can deliver one million to the smartphones of
consumers whove asked to receive
PORTABILITYUse a search engine to get information during
shopping process Look up store address, store hours or store
locationRefer back to retailer emails you have saved in your
inboxReceive notifications about in-store promotions, events or
offers
VIRTUAL SOCIAL SHOPPINGGather/Share opinions about a product or
store from friends/family Receive/Share photos of products from
friends/family Receive/Share text messages about products from
friends/family Text or tweet price details to see if the deal is
worthwhile Receive/Share content about products/stores on user gen.
websites
FUNDAMENTAL SHOPPING TASKSCompare products from your mobile
phone Look at prices on a retailers websiteSearch elsewhere when a
product is out-of-stock Compare store prices with online prices
when shopping in a storeRead customer ratings or reviews of a
productVisit a retailer website (e.g., bestbuy.com,
potterybarn.com)Look up online product information while shopping
in a store Read customer ratings or reviews about a store Check
in-store availability of a productLook for deals for nearby
storesCheck on the status of an orderVisit a manufacturer website
(e.g., whirlpool.com, fisherprice.com)Calculate price comparisons
for different size productsMake a shopping list
SPECIALIZED SHOPPING TASKSUse gift cards, reward cards, or gift
registries Use gift guides (e.g., look for a gift under $100 or a
gift for mom)Compare payment plan options (e.g., mortgage
calculator)Use retailer comparison, selector or customization
toolsUtilize virtual shopping tools that help you visualize the
productView product demosAdd a product to a wish list or
favoritesBrowse store circularsUse a couponBrowse couponsPlace an
order ahead of time to ensure a quicker pick-upParticipate in a
sweepstakes, game or promotion offer Use barcodes or scanning to
get pricing or product information Use an app or mobile shopping
application
Mobile Shopping Activities
MO
RE A
DO
PTED
(cor
e ac
tiviti
es)
LESS AD
OPTED
(advanced activities)
2010 Leo Burnett and Arc Worldwide
CROSS-CATEGORY(mobile-related activities that transcend
categories)
CATEGORY-SPECIFIC(shopping-related activities that dont
transcend categories)
P&G on CauseWorld
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4INDUSTRY REPORT
them. (A second implied corollary: mobile marketing often is
signifi cantly cheaper than comparable, traditional advertising
methods.) For another, it lets marketers send calls to action in
the immediate proximity to where the purchase decision is being
made, says Daniel Cooke, director of digital shopper marketing at
Kellogg Co. We refer to this as point-of-service, and its the
primary reason why we believe so strongly in the prospects for
mobile. Retailers and brands have been working at online methods of
driving consumers to stores. But whats been lacking is a way to
drive them right to the sale, says Iacovone. Mobile is the fi rst
technology that can deliver that. Mobile marketing also is
unprecedented in its ability to return behavioral data, which can
then be correlated with purchase data. And the more we know about
consumers, the better well be able to communicate with them, says
Iacovone. However, the time for non-strategic experimentation with
buzzy tools is passing quickly. Marketers now need to develop a
comprehensive strategy that maps out a vision for mobile marketing
and its role in the overall marketing plan. Marketers looking to do
so should fully consider the following rules:
Rule No. 1: Make a full commitment. Many retailers and marketers
are launching mobile programs simply to be trendy or keep pace with
the competition but without setting a long-term vision: retailers
launch perfunctory apps with store locators, a website link, and
little in the way of real shopper value; brands add a QR code to
print ads that send consumers online to watch a 30-second TV spot,
which might drive some site traffi c but wont engender long-term
engagement (or even a repeat visit). These examples illustrate the
fact that Lets do something mobile is not a sound strategic plan,
says Iacovone. There are numerous internal needs you should
consider before you ever get to the consumer-facing activity. The
fi rst step is a commitment from upper-level management that runs
across brands, builds mobile into the overall path-to-purchase
strategy and fully spells out where it fi ts, he says. Ideally,
this internal alignment includes agreement on a single structural
platform that allows for shared data and processes. A fully
thought-out plan will also help companies avoid common mistakes,
such as using a QR code to direct consumers to a traditional,
mobile-unfriendly website (see page 6). The evidence suggests that
many companies are in need of such alignment: Only 45% of
respondents to a fall 2010 Forrester survey claimed to have a
shared mobile vision within their organizations.
Rule No. 2: Dont treat it as a separate function. Eff ective
mobile marketing will be fully aligned with digital marketing as a
whole and, beyond that, the overall strategic marketing plan. Right
now, mobile is still an afterthought, something that gets tacked on
at the end of the planning stage, says Iacovone. We dont think you
should have a distinct mobile strategy, Garris says. It should be
aligned with your overall marketing strategy. That, of course, is
easier said than done, since marketing organizations historically
have kept their silos fortifi ed and usually seek comfortable,
pre-established homes for new concepts. (A key reason why digital
shopper marketing and shopper marketing in general
hasnt fully taken fl ight is that it forces marketers to break
down those silos and align advertising, consumer promotion and
trade promotion.) Most digital marketers come from the advertising
side of the organization, which means sales-driving promotions,
retail collaboration and other tactics for which mobile is
well-suited are foreign territory for many of its practitioners.
Shopping crosses so many diff erent touchpoints, so everyone in the
organization has to work together, says Garris. Mobile is just one
of the tools although its the only one thats with the consumer all
the time.
Rule No. 3: Dont expect it to diff erentiate your brand. Its
extremely important to understand that the medium itself is defi
nitely not the message. The newness factor that currently makes
scanning a QR code or downloading an app unique for shoppers will
fade quickly, and using them wont score points with consumers for
very long. In fact, employing mobile tools solely as a stunt may
ultimately alienate more consumers than it attracts. You have to
make sure that you provide value, says Schuh. Sooner rather than
later, all brands and retailers will be involved in mobile
marketing. Apps among supermarkets, for instance, could well become
as commonplace as frequent-shopper cards, which means they will
have little intrinsic value. Already, both Tide and Clorox off er
apps that deliver on-the-go stain removal tips, so neither brand
has gained a competitive edge through the technology itself. Some
companies are looking at mobile as a diff erentiator, Michael Ross,
vice president-marketing, pricing and consumer insights for Meijer,
said at a recent industry gathering. Were looking at mobile as a
media channel. What we do with our brand is what will diff
erentiate us.
Rule No. 4: Focus on the audience, not the tool. The mistake
that many companies make is thinking about the tactic fi rst, then
trying to make the tactic fi t the brand.
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5mobile experience fast and easy. You never want to create more
hurdles for the shopper, says Garris. You only have her for a
minute. Unless the value matches the eff ort required, your message
will seem like a disruption, adds Masha Sajdeh, Arcs chief shopper
strategist. We should not be forcing consumers to do anything, such
as downloading an app or emailing a photo, to enter a promotion,
says Augmes Apple. They need to be able to do things naturally with
the technology that they already have. Many of the current barriers
to mobile shopping involve relatively basic issues with speed,
functionality and visual aesthetics (see chart, page 15). Another
issue is the fragmentation of available technology: The presence of
numerous proprietary applications and subsequent lack of
standardization often forces consumers to make technology decisions
rather than shopping choices, says Augmes Apple. Any mobile
campaign should seek to avoid if not alleviate these obstacles.
Rule No. 7: Pull smartly, push gently. Just because mobile
shoppers are always available doesnt mean they should be contacted
relentlessly. The best strategy often may be to give them access to
problem-solving tools, but let them decide when and how to use
them. Arc, for one, is more an advocate of a pull strategy.
You can create a lot of context and a lot of technical shortcuts
for people to use when they want to, says Garris. Relevance is key,
and many brands have established enough equity among consumers to
legitimately seek a deeper role in their lives. Consumers may very
well view Kimberly-Clarks Pull-Ups as the logical provider of a
potty training tool for parents, or Nestl-Purina as a credible
source for information about pet-friendly hotels and restaurants
(see page 14). But will they accept PepsiCos Propel as the ideal
aid for helping them map out errands (as the brand is attempting to
do)? As for push marketing, You have to be really thoughtful,
suggests Garris. The content should be highly customized if you are
delivering to a phone. But if you understand shopper needs and pain
points, you can provide relevant content and start to infl uence
behavior without off ending anyone. Part of the issue here involves
a timeless marketing albatross: ad clutter, and the subsequent
negative eff ect it has on consumer response. Since the mobile
phone is such a personal device For a woman, its her purse. For a
man, its his wallet, says Augmes Apple an unwanted message could be
more off -putting than ever before. However, this problem
ultimately may be solved by consumers themselves, who now have an
unprecedented ability to ignore, delete or block any unwanted
communication, and will be consciously selecting the vast
Thats usually not the path to success, says Schuh. You need to
start with the consumer and her needs, and determine how that
aligns with the brand strategy. It needs to make sense. You have to
identify the shopper fi rst. Then you can determine the tools and
methods for reaching them, says Iacovone. You probably dont need to
incorporate augmented reality if youre trying to reach Baby
Boomers. But for teenagers, it might be perfect. You start with the
target, not the technology. The primary goal is not to wow shoppers
with the tool itself, but with the solution that it delivers. You
need to understand shopper needs and pain points, and solve for
them, says Garris. An app from Walgreens that lets shoppers
remotely order prescription refi lls and receive text notifi cation
when theyre ready for pickup is a great example because nobody
wants to wait in the store for a prescription, she says.
Rule No. 5: Assess your brands role realistically. Part of
understanding target shoppers is identifying the role your brand
plays in their lives. You need to engage them in a meaningful way,
to give them the information that they need when they need it, says
Garris. Simply put, the average shopper will have little need (or
interest) for an app for every brand that she buys, let alone might
buy. (On the other hand, apps may soon become as necessary a tool
for retailers as websites have become, regardless of how many
consumers feel the need for them.) You have to be relevant enough
that they want to engage with your brand, advised Mike Boylson,
JCPenneys chief marketing offi cer, at an industry conference last
summer. For examples of retailers and brands that are solving
consumer needs and establishing a deeper, relevant role in their
lives, see pages 12 and 14.
Rule No. 6: Keep it simple. Consumer research at Hewlett-Packard
has found (among other things) that mobile shoppers prefer to
select from option links rather than make requests by typing. Thats
just one example of the need to make the
Walgreens sends text messages when prescriptions are ready
(continued on page 15)
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TACTICAL REVIEW
HYPE VS. HOPEAugme evaluates some of the more prevalent mobile
communication tools.
Text Message/SMS (short message service): With all the recent
industry buzz surrounding smartphones and apps, the old-school text
message has taken a bit of a backseat in the minds of marketers.
But its still the communication tool delivering the greatest reach
(68% of mobile subscribers use it) and a technology with which most
consumers have developed a high level of comfort. Its also still
the social tool of choice for younger consumer generations. Augme
strongly encourages its clients to include a text-message option in
all promotions no matter what other cool response mechanism might
be deployed otherwise. Every mobile device can send and receive an
SMS, so its already scalable, says David Apple, Augmes chief
marketing offi cer. If you exclude people because of their devices,
you might alienate them. And 200 million is a lot of people to
alienate.
Mobile Websites:Optimizing your website for mobile viewing (or
building a full-scale mobile version) is a must for any
consumer-facing organization,
Anthony Iacovone, Augmes founder and chief innovation offi cer,
advises. On-the-go consumers have little patience for traditional
websites, which were designed for access from computers with more
memory, faster connections, greater visual capacity and much larger
screens. One unsatisfactory encounter on a clunky website may be
enough to drive consumers right to the competition. By 2014, more
people will access the Internet via mobile devices than by desktop
computers, according to a forecast by Morgan Stanley. The mobile
web is as important as if not more important than the
traditional web, says Apple. Every organization with a
traditional website should have a mobile-ready version.
Smartphone Applications: Creating an app that can be downloaded
onto a smartphone is an eff ective way to establish an exclusive,
ongoing exchange with the target audience. But doing so assumes
that people care enough about your brand to carry around your
content all the time, says Apple. Consumers with time constraints
not to mention storage limitations should soon reach a saturation
point on the number of apps theyre even willing to download, let
alone use on a regular basis. (And, they have to be willing to
download any future upgrades as well.) Whats more, There are very
few times when an app is really necessary, says Iacovone. Most
functions that you would deliver through an app can be built on a
mobile website, and thats more scalable. Even if smartphone
penetration does reach 51% of the U.S. market by the end of 2011,
that still leaves 49% of consumers who will have no way to interact
if an app is the only option.
Barcode Scanning (2D, UPC): With an estimated 65 million
smartphones expected to hit the market with embedded readers in
2011, scanning of packaging and P-O-P materials could soon become
standard behavior. (Penetration levels in some foreign markets are
already quite high.) Although usage rates are still relatively low
Forrester reported in September 2010 that fewer than 1% of
consumers had ever scanned a code Iacovone suggests that marketers
begin using them to
stay on track with consumer behavior. Augme sees a bright future
ahead for barcode scanning, but advises its clients to avoid
proprietary codes and instead use QR codes or UPCs the most widely
readable types in the market. Theres a lot of confusion related to
multiple code types, primarily in-store, says Iacovone.
6
-
Adding to this confusion is the common categorization of snap
and send technologies which require consumers to take a picture,
use email or MMS [multimedia message service] to send it to the
address provided, and wait for a response as barcodes. But that
technology has a high failure rate (for image captures) and slow
response times, which substantially limits capabilities and
increases consumer frustration, Apple says.
Location-Based Networks: Third-party operators such as Shopkick,
Foursquare and Gowalla can deliver established audiences that, at
least for now, seem to be relatively engaged in the process of
checking in at retail to earn rewards. Whether or not these
services survive long-term will depend largely on the value that
they deliver and that will only come through widespread
participation from retailers and product marketers (or, perhaps, by
how deeply larger entities like Facebook, Google and Twitter move
into the space). You dont need a third-party app to run a
location-based program or any app at all, says Apple. The same
capabilities namely, GPS and device IP [Internet protocol] can be
leveraged through a mobile website or consumer-response
technologies like SMS, or 2D and 1D codes. And that way, you can
brand the experience yourself.
Mobile Coupons: Paperless coupons delivered to feature and
smartphones have served as the mobile toe-dip for many marketers
for multiple reasons: theyre a tangible, recognizable companion to
a traditional marketing tactic, they deliver easily measurable
results, and they have been quickly embraced by consumers. (They
also hit the cultural zeitgeist during the recession, which didnt
hurt.) They may not be sexy, but the fact of the matter is, all 248
million mobile devices can interact with them right now, notes
Apple. While the numerous systems and service providers available,
and the resultant lack of scale or standards, make the marketplace
a bit confusing at the moment, penetration rates and intention
levels as well as early redemption rates suggest that marketers
should be diving in fully. Augme divides the marketplace into two
categories: A mobile off er is a discount on a product or a sale
presented by a specifi c retailer. The consumer either receives a
numeric code on her phone via SMS, or a barcode that can be scanned
at checkout. (The latter method is only possible at retailers like
Target that have
deployed barcode imagers at the point of sale.) The other
category, mobile coupons, should be categorized as brand-specifi c
and can be redeemable across stores, according to Augme. Redemption
options generally are limited due to the lack of POS technology;
some retailers have adopted methods of making the off ers
downloadable to loyalty cards, with redemption occurring when the
shopper presents the card (instead of a phone) at checkout. While
that works well for retailer-specifi c campaigns (at least at the
15-odd chains that have the capability), there currently is no easy
way for brands to conduct a national program, aside from working
through multiple technology vendors. Augme is among a few companies
that are working to aggregate the marketplace.
In-store Technology: In large part, the smartphone can become a
personal kiosk for each shopper, says Iacovone, which eliminates
some of the need for in-store deployment of other devices. Meijers
Michael Ross says that the chain plans to leave the hardware in the
hands of the shopper. Still, nearly 80% of marketers believe that
in-store technologies will work in tandem with personal devices to
deliver relevant, targeted communication. Kiosks or digital signs
that deliver shopper-specifi c messages when activated by a phone
could very well become a common off ering at retail and would save
marketers from launching unnecessary apps. I may not really care
enough about your brand Monday through Friday, says Apple. But I do
care enough about it on Saturday, when Im in that retail
environment, to respond to your off er. When choosing tactics, the
single most important point to remember is that your audience will
determine the technologies you use, says Iacovone. Your consumer
will determine their mode of communication with your brand.
7
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BEHAVIORAL RESEARCH
MOBILE SHOPPERS ARE BORN, NOT MADE.
There are some consumers who are inherently wired to do this,
says Masha Sajdeh, chief shopper strategist for Arc Worldwide, the
Chicago-based marketing services arm of Leo Burnett. Sajdeh is
referring to the 10% of U.S. consumers who, based on the agencys
proprietary survey, have been classifi ed as heavy mobile shoppers.
In September 2010, Arc surveyed 1,000 mobile phone owners aged 18
to 64 about their mobile usage, then enhanced that sample with
another 800 surveys of smartphone owners who had engaged in at
least one mobile shopping activity. The agency then conducted an
intensive qualitative study of 36 consumers who
were tracked for more than one week as they performed various
shopping tasks on their phones. (The inventive study concluded with
six subjects conducting all of their Black Friday shopping on their
smartphones.) In the mobile shopping universe that Arc uncovered
through the study, 49.1% of consumers can be classifi ed as mobile
shoppers, having engaged in one or more relevant activities monthly
(see chart below for the list of qualifying activities). Of those,
10% are heavy and 39.1% are light users, based on the penetration
and frequency of their activities. Of the remaining 50.9% of the
population, 40.6% have yet to engage in any mobile shopping tasks,
and roughly 10.3% dont own mobile phones. Depending on your
outlook, that means half of U.S. consumers already are involved in
mobile shopping, or that half arent shopping, says Leo Burnett and
Arc
8
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bsite
(e.g. w
hirlpo
ol.com
)
Recei
ve/Sh
are te
xts ab
out p
roduc
ts from
frien
ds/fam
ily
Make
a sho
pping
list
Look
for d
eals a
t near
by sto
res
Check
on th
e stat
us of
an or
der
Read
custo
mer ra
tings
or rev
iews a
bout
a stor
e
Comp
are pr
oduc
ts from
your
mobil
e pho
ne
Searc
h else
where
when
the p
roduc
t is ou
t-of-st
ock
Calcu
late p
rice co
mpari
sons fo
r diffe
rent si
ze pro
ducts
Recei
ve/Sh
are co
ntent
abou
t prod
ucts/
stores
on us
er ge
n. site
s
Recei
ve/Sh
are ph
otos o
f prod
ucts f
rom fri
ends/
family
Check
in-sto
re ava
ilibilit
y of a
produ
ct
Brows
e cou
pons
from
your
mobil
e pho
ne
Use a
n app
or m
obile
shopp
ing ap
plicat
ion
Use b
arcod
es or
scann
ing to
get p
ricing
or pr
oduc
t info
Use a
coup
on fro
m yo
ur mo
bile p
hone
Gathe
r/Sha
re op
inion
s abo
ut a p
roduc
t/stor
e from
frien
ds/fam
ily
Brows
e stor
e circu
lars fr
om yo
ur mo
bile p
hone
Partic
ipate
in a sw
eepst
akes, g
ame o
r prom
otion
offer
Place
an or
der a
head
of tim
e to e
nsure
a quic
ker pi
ck-up
Twee
t or te
xt pri
ce de
tails t
o see
if the
deal i
s wort
hwhil
e
Use r
etailer
comp
arison
, selec
tor or
custo
mizat
ion to
ols
Use g
ift car
ds, re
ward
cards,
or gif
t regis
tries
View p
roduc
t dem
os
Add a
prod
uct to
a wish
list o
r favo
rites
Use g
ift gu
ides (e
.g. loo
k for a
gift u
nder
$100
or a g
ift for
mom
)
Comp
are pa
ymen
t plan
optio
ns (e.g
. mort
gage
calcu
lator)
Utilize
virtua
l shop
ping t
ools t
hat h
elp yo
u visu
alize t
he pr
oduc
t
Use a
searc
h eng
ine du
ring y
our sh
oppin
g proc
ess
Light Mobile Shoppers
Heavy Mobile Shoppers
% who do the following activities at least once a month from
their mobile phone
Mobile Shopping Activity Penetration
2010 Leo Burnett and Arc Worldwide
-
research manager Carrie Newman. Either way, it suggests that
there is plenty of room for steadily increasing adoption levels as
the penetration rate of smartphones rises and consumers become more
familiar with the various tools at their disposal. Arcs group of
heavy mobile shoppers is dramatically younger than the general
population, with 67% aged 35 or less, according to Newman. They
also skew slightly higher toward male and single, which arent the
demographics youd typically fi nd at the high-end of a shopping
survey. But that fact suggests growth potential, she says.
Smartphones are more conducive to shopping than standard feature
phones, so we anticipate the number of mobile shoppers to increase
along with smartphone penetration. But the study fi nds that mobile
capabilities so far are not dramatically changing general behavior,
as consumers largely are using their phones to perform the shopping
tasks they used to carry out on a computer (or elsewhere) rather
than altering their habits to any great degree. Heavy shoppers, for
instance, have two defi ning characteristics. First, they qualify
as heavy mobile users in general, utilizing their phones
extensively for a wide variety of activities such as making calls,
texting, conducting searches and playing games (see chart on page
2). Second, they also are habitual heavy shoppers, consumers who
are more likely to shop generally by visiting a mall or using their
home computers. For these heavy shoppers, nothing is off the table.
They love experimenting with new tools, as their usage levels for a
vast array of mobile services illustrates, says Sajdeh. Light
shoppers, on the other hand, have a much more functional
relationship with their phones, both for shopping and in general,
and therefore generally engage at much lower levels, she says.
Based on those two criteria, Arc identifi ed 5.8% of the light
shoppers as the likeliest candidates to move up to heavy, based on
the fact that they rate as heavy shoppers away from the phone and
as heavy mobile users when it comes to non-shopping activities.
(That assessment, however, does not dismiss the potential for other
lights to become heavy shoppers as well, Newman notes.) So far,
then, the smartphone has not turned any casual shoppers into mobile
shopaholics. However, there are two behavioral changes that do seem
to be infl uenced by the devices, according to the study. The fi
rst is a phenomenon that Sajdeh referred to as the shopping blip,
in which smartphone users browse online during what used to be down
time in such captive situations as the doctors waiting room or the
train (in what might be considered the 21st century version of
window shopping). The second is that the smartphones omnipresence
is allowing shoppers to extend the steps along the path
to purchase beyond their traditional confi nes so that, for
instance, price comparisons previously conducted on a home computer
before the trip began are now being handled right in the store.
This trend implies a prolonged ability to infl uence the purchase
decision. The phone is very important in this respect, says Newman.
The trend also implies that shoppers are becoming less diligent
about their pre-trip research. If a good deal of the information
will be readily available at the shelf, then strenuous research
online beforehand is much less necessary. They can be more casual
about their homework since they always have their phone, Sajdeh
says.
Mobile Shopping Defi nedIn addition to obtaining insights into
shopping behavior, the study also gave Arc an opportunity to scope
out a clearly defi ned universe of all the activities that comprise
mobile shopping, and then develop some theories on how marketers
should respond to them. Arcs parameters go well beyond making a
purchase to include product and price searches, comparison
shopping, product research and gathering any information at all
about a product or store, the report explains. In all, Arc identifi
ed 37 mobile shopping activities. These activities were then
statistically classifi ed into four types based on their level of
adoption by consumers, their uniqueness to the mobile (or digital)
environment, and their role in shopping. They are:
9
The Mobile Shopper Universe% of Total US Adult Population Ages
18-64
MobileShoppers
49.1%Mobile Phone
Owners89.7%
MobileNon-Shoppers
40.6%
No Mobile Phone 10.3%
LightMobile
Shoppers39.1%
HvyMobile10.0%
2010 Leo Burnett and Arc Worldwide
-
BEHAVIORAL RESEARCH
10
Portability: Four activities unique to the digital world that
involve searching for information about stores or products, or
receiving information from retailers and other sources on
promotions, events and other off ers (see chart below). These Info
on the Go activities are the ones most frequently utilized by both
heavy and light mobile shoppers. Among heavy shoppers, their
penetration levels are extremely high.
Virtual Social Shopping: Five actions involving gathering and
sharing information about stores and products with family, friends
or the public at large (see chart below). Such Sharing and Advice
activities are employed extensively by heavy shoppers, at nearly
the same penetration levels by phone as by computer and, in one
case texting or tweeting the worthiness of a price off er at a
higher level. Light shoppers use them much
less often, both through the phone and during their traditional
shopping process. The fi rst two activity types transcend product
categories because they come from the digital world, having
translated quite nicely from computer to phone, according to
Sajdeh. As such, marketers might be better off adopting a pervasive
tool from a third-party source rather than creating a unique
solution in these areas, she says. As an example, Sajdeh pointed to
Best Buys
Twelpforce technical service hotline, which uses Twitter as its
communication platform rather than a proprietary system. The
retailer would never be able to get the reach on its own that it
does through Twitter, she says.
Fundamental Shopping Tasks: Fourteen tasks that put a mobile
twist on collecting the information needed to inform the purchase
decision (see chart below).
Fundamental Uses, by Penetration Levels
Source: 2010 Leo Burnett and Arc Worldwide
Light
Visit a retailer website(e.g. bestbuy.com)
Look at prices on aretailers website
Look up online productinformation while in a store
Compare physical store priceswith online prices, in-store
Read customer ratingsor reviews of a product
Visit a manufacturer website(e.g. whirlpool.com,)
Make a shopping list
Look for dealsat nearby stores
Check on the statusof an order
Read customer ratings orreviews about a store
Compare products fromyour mobile phone
Search elsewhere when theproduct is out of stock
Calculate price comparisonsfor different size products
Check in-store availabilityof a product
Heavy
30.6%
25.1%
23.1%
22.4%
21.1%
20.7%
20%
19.5%
19.3%
18.8%
18.5%
16.5%
16.2%
15%
91.1%
92.8%
86.1%
84.1%
86.1%
79.1%
73.3%
82.7%
81.2%
74%
84.5%
82.3%
67.1%
78%
Virtual Social Uses, by Penetration Levels
Light
Receive/Share texts about products from friends/family
Receive/Share content about products/stores on user gen.
sites
Receive/Share photos of products from friends/family
Gather/Share opinions about a product/store from
friends/family
Tweet or text price details to see if the deal is worthwhile
Heavy
21%
15.8%
15.1%
13.2%
10%
72.9%
71.2%
70.5%
67.6%
60.8%
Source: 2010 Leo Burnett and Arc Worldwide
Portability Uses, by Penetration Levels
Source: 2010 Leo Burnett and Arc Worldwide
Light
Look up store address, hours or location
Use a search engine during your shopping process
Receive notifications about in-store promotions/offers
Refer back to retailer emails you have saved
Heavy
0 20 40 60 80 100
47.3%
40.2%
32.1%
24%
93.2%
94.2%
85.2%
77.8%
-
11
Specialized Uses, by Penetration Levels
Light
Browse coupons from your mobile phone
Use an app or mobile shopping application
Use bar codes or scanning to get pricing or product info
Use a coupon from your mobile phone
Browse store circulars from your mobile phone
Participate in a sweepstakes, game or promotion offer
Place an order ahead of time to ensure a quicker pick-up
Use retailer comparison, selector, or customization tools
Use gift cards, reward cards, or gift registries
View product demos
Add a product to a wish list or favorites
Use gift guides (e.g. look for a gift under $100
or a gift for mom)
Compare payment plan options (e.g. mortgage calculator)
Utilize virtual shopping tools that help you visualize the
product
Heavy
14.2%
13.6%
13.5%
13.4%
11.4%
11.1%
10.8%
9.6%
9.2%
8.8%
8.5%
7.9%
7.8%
6.1%
72.9%
63.6%
59%
57.5%
70.2%
61.7%
58.1%
64.7%
63%
59.3%
62.9%
53.7%
61.3%
51.5%
Source: 2010 Leo Burnett and Arc Worldwide
These Products, Prices and Reviews activities are conducted
extensively by heavy mobile shoppers, often at levels at or near
those for general shopping. Light mobile shoppers, on the other
hand, partake at relatively low levels, despite the fact that they
perform the tasks through other channels. Retailers should strongly
consider investing in the development of proprietery solutions for
these tasks, Sajdeh advises. By extension, this is also the area in
which product manufacturers can provide the most assistance.
A single retailer doesnt have the expertise across the entire
store, she says, so its a perfect opportunity for product marketers
to deliver their own category-specifi c understanding. Sajdeh notes
that Target gained support from multiple product vendors when
developing its smartphone app, which directly addresses several of
these fundamental tasks.
Specialized Shopping Tasks: The fi nal 14 actions encompass a
variety of shopping tasks that either require the unique
capabilities of a smartphone or are being reinvented by the devices
(see chart, right). These Specialized and Specifi c activities
enjoy relatively high levels of usage among heavy shoppers (64%
have used an app; 59% have scanned a barcode), but very low levels
among the light group. Since they come from the shopping world,
these last two types dont transcend product categories, and
therefore need to be tailored to address any unique characteristics
in the categorys shopping process, Sajdeh says. Because they are on
the fringe in terms of consumer engagement, Sajdeh suggests
collaborating with an outside partner to develop solutions.
(Targets barcode scanner, for instance, was developed by RedLaser,
which also has its own app.) In large part, all of the analog
shopping behaviors that fi rst migrated online are now moving to
mobile, says Sajdeh. But some, such as price comparisons, are now
on steroids because of increased ease of use and greater proximity
to the purchase decision, she notes. While signifi cant aspects of
the path to purchase may largely become a mobile function, there
are still aspects of the shopping process that will long require
the physical environment. For this reason, Dont fear the mobile
phone, embrace it to enhance the store experience, Sajdeh says.
-
BEST PRACTICES
RETAILERSMobile websites and apps are becoming commonplace among
retailers. But the following companies already are moving beyond
store locators and facile product searches to off er tools that are
truly designed with on-the-go shopper needs in mind.
Best BuyIt should be no surprise that the nations top
electronics retailer would be leading the migration to digital
shopper marketing. Among its numerous initiatives has been the
deployment of QR codes as a standard component of product signage,
and a regular feature in circulars as well. The codes generally
provide access to product, service and promotional off ers on the
chains website. The chain also has launched several apps, including
one specifi cally for video game enthusiasts (for which it also
runs a special loyalty program, Facebook group and Twitter
account), and another that delivers enhanced content about
theatrical and home-video movie releases. Elsewhere, Best Buy was a
charter sponsor of the Shopkick location-based rewards app that
launched in August 2010. (Macys and The Sports Authority also
joined for the launch; Target, American Eagle and Crate &
Barrel soon followed.) By Oct. 1, 257 locations had been
outfi tted with the technology required to send off ers to
shoppers after they enter a store. Best Buy also runs Twelpforce, a
customer service program that launched in summer 2009 via Twitter
but will soon expand to Facebook and other digital platforms. The
service gives mobile users near-instant access to technology
experts.
MeijerLast summer, the privately held Midwest supercenter chain
launched a mobile coupon program called mPerks that lets registered
shoppers redeem pre-selected coupons at checkout by entering their
mobile phone numbers. The deals are selected on a microsite linked
to Meijers home page, and stored on frequent-shopper cards until
they are redeemed or expire. In a handful of stores, Meijer also is
testing Find-It, a smartphone app that helps shoppers locate
12
-
them to coupons that are scanned at checkout for redemption.
They also can download Mobile GiftCards that likewise are scanned
at checkout. (Target was the fi rst national retailer to add
mobile-scanning capability to all stores.) The retailers app
provides mobile-friendly access to weekly circulars, lets users
manage their gift registries, and delivers special off ers. It also
has a built-in barcode scanner, which saves users from opening a
separate app to obtain additional information on products while in
the store.
WalgreensThe drugstore chains ever-improving iPhone app already
provides several key services: Express Refi lls by Scan lets
pharmacy customers scan the barcode on their medication container,
then select a store and time to pick up the refi ll. (Users receive
a text message when the prescription is ready.) A similar service
lets shoppers send photos from their phones to a specifi c store
for processing in about one hour; the photos can even be shipped
home, thereby eliminating the need to visit the store entirely.
Users also can check product availability and pricing at particular
stores. Outside of the app, Walgreens sends fi ve monthly text
messages with coupons and other off ers to registered customers,
and has upgraded its online circular to provide click-through
savings in the shoppers cart.
products, departments, service counters, restrooms and even
their cars in the parking lot. The app uses GPS technology to guide
shoppers to the desired SKU. The retailer is developing
functionality that will let users build an aisle-by-aisle shopping
list, a feature that shoppers have been requesting. The chain also
plans to eventually deliver relevant off ers along the way. Meijer
also sends periodic text messages to registered customers,
including alerts that go out several hours before the chain
increases gasoline prices.
Sams ClubJust before holiday 2010, Walmarts warehouse club
division simultaneously launched an app for iPhone, Android and
Blackberry devices that delivers product information,
member-supplied reviews and access to the chains eValues digital
coupon program. The app enhanced the already obligatory store
locator function to deliver information about on-site events,
product assortments and interior maps for specifi c stores. The
all-digital eValues program, which launched in fall 2009, lets
upper-tier club members download coupons tailored to their own
purchase histories. The off ers can be accessed online or delivered
to a mobile device.
TargetIn August, Target unveiled My TargetWeekly, a service on
its website that lets consumers customize the chains weekly ad and
receive deal alerts. It also lets consumers view and print coupons,
see Top 10 deals, share their fi ndings on Facebook and Twitter,
and create mobile shopping lists. The mass merchant has been
extremely
active in the digital space, launching a variety of services
designed to improve the shopping experience. Smartphone users can
receive text messages directing
13
-
BRANDSConsumer brands are developing both push and pull
strategies, with the latter centered on developing long-term
connections to consumers, and the former focused more on immediate
calls to action. In both cases, best practices are based on an
understanding of consumer needs and the brands potential ability to
fulfi ll them, as well as the recognition of mobile communication
as a logical conduit rather than a simple marketing gimmick.
Constellation Brands Wine Host For holiday 2010, the wine maker
placed QR codes (for smartphone users) and SMS keywords (for
feature-phoners) on bottle neck hangers, case cards and FSIs. The
links gave consumers access to a website featuring a party
planning
calculator and food/wine pairings. (The codes linked to a mobile
website, the text to a more traditional site.) Participants could
also sign up for future promotions and share their experience on
Facebook or Twitter. Using the newer QR code alongside the more
standard SMS option gave the campaign trendy cachet, but also a
much broader reach.
HPs In-Store Activation Hewlett-Packard passed out fl iers to
attendees of National Basketball Association games this fall that
let them earn immediate bonus points through Shopkick. The handout
encouraged recipients to earn more points and exclusive discounts
on HP products by visiting Best Buy, part of a broader initiative
to utilize the chains partnership with the location-based rewards
app. HP has been experimenting with QR codes as well, using them to
provide more in-store information to shoppers in the category (96%
of whom conduct research online before buying, but 76% of whom
still buy in a store).
Kimberly-Clarks Pull-Ups iGo Potty Smartphone-toting parents can
set up this app to call when its time for the little one to give
the toilet a try. Tykes who successfully complete their missions
earn stickers that accumulate to unlock toddler-friendly games.
When the training is over, parents print out a certifi cate to
hang
on the wall. The on the go app is a natural extension of the
brands website, which provides a wealth of tips and information for
parents at this lifestage.
Krafts iFood Assistant Two years after its launch, Krafts daily
recipe fi nder is still the Michael Jordan of marketing apps, with
several hundred thousand paid downloads and a reported 60%
engagement level. In Arcs survey, it also was one of the few brand
apps that respondents were aware
of (see page 8). Kraft has expanded the initial iPhone program
with apps for Blackberry, Android and iPad, along with overlays
through Facebook and Twitter. The app also now includes coupon off
ers and a product fi nder that helps users fi nd the nearest store
carrying specifi c products.
LG Electronics Mobile Shopping Assistant Its a scaled-down
version of the manufacturers website that presents product specifi
cations, user reviews and other information on TVs, washers, dryers
and refrigerators in mobile-friendly form. The site is promoted on
P-O-P materials, which LG executives say benefi ts retailers
because it keeps potential buyers in the store when they otherwise
might head home for more research on the computer. Launching the
mobile version led to a 20% increase in site traffi c for LG,
according to reports. The Assistant is also downloadable as an
app.
Pampers My Baby Registry Procter & Gambles diaper brand lets
expectant mothers create a single cross-retailer registry either
online, on Facebook or through an app. (The list is compiled by
scanning barcodes or fi nding products online.) The app
consolidates the selections into a single gift registry and tracks
the purchases made.
Purinas PetCentric Places The Nestl brands online Petcentric
community also gets a logical app extension, a tool that helps
owners fi nd hotels, restaurants, parks and other services that
accommodate pets. Product information is presented in a subtle
manner as a separate tab. The eff orts extend the brands commitment
to healthy, happy pets (and owners).
20th Century Foxs Avatar Home Video LaunchSpicing up in-store
promotions for the most technologically advanced fi lm in movie
history was probably a no-brainer especially at Best Buy. P-O-P
materials and the retailers Best Buy Insider magazine carried
JagTag codes that connected shoppers to related video, audio,
coupons and other content. Participants also could opt in to
receive future content, giving Fox an opportunity to pursue them at
a later date.
14
BEST PRACTICES
-
15
Mobile Shopping Barriers
% of light mobile shoppers who checked the following
statements
Its just easier for me to go online from a computer than to shop
on my mobile device
I am usually near a computer so I really dont see the need to
shop from my mobile device
I think shopping from my mobile phone takes more time than
shopping online
I dont have very many occasions when I need to shop from my
mobile device
The websites I access on my mobile device are much less
user-friendly than the websites I access on my computer
I really dont have the need to shop from my mobile phone
Its just easier for me to go to a store than to shop on my
mobile device
Once Im actually in a store I have no need to shop from my
mobile device
The screen on my mobile device is too small to see things
clearly
I dont think shopping from my mobile phone is very
convenient
The websites I access on my mobile device have much less of the
same content, features and functionality
It is difficult to search for products and/or services on my
mobile device
It is difficult to use and/or search for coupons on my mobile
device
I am worried about the security of mobile payment services
The Internet access on my phone is too slow to shop effectively
on my mobile device
I think shopping from my mobile phone would take just as much
time as shopping online
I am not certain that the transaction will be completed while
shopping on my mobile device
I am not certain that my phone number will be kept private while
shopping on my mobile device
None of the above
Light Mobile Shoppers
62%
50%
48%
46%
42%
40%
37%
37%
37%
35%
33%
32%
31%
27%
27%
23%
13%
12%
9%
majority of marketing messages that they get. Theres defi nitely
a danger with clutter. But the mobile shopper has far greater
control over what she receives, notes Sajdeh. In other media, there
is less ability to provide contextual relevance. With mobile, what
may seem like noise through other media may be exactly what she
wants. Augme believes that the ability to deliver targeted content
is a fundamental benefi t of mobile marketing overall, especially
when the message is received by a shopper within the store. You
need to use some kind of reward to get that consumer to take the
phone out of her pocket and engage with your brand, says Apple.
Especially now, when theres still a great need for creating
behavior.
Rule No. 8: Collaborate. There is no denying the fact that
consumers look to retailers fi rst for any type of shopping
solution, says Sajdeh. Therefore, an eff ective mobile strategy for
any brand will include plans for collaborative activity with key
retailers. Just as they had to do online, retailers will need to
develop strategies for attracting mobile shoppers and driving
sales. (Richard Mader, executive director of the Association for
Retail Technology Standards, is already calling mobile the fourth
retail channel.) And, similarly to whats been occurring on the
traditional Internet, theyll be looking to manufacturer partners
for assistance. Retailers have limited content right now, and
thats
a gap that manufacturers can fi ll, says Garris. They can add a
little value that will create a better experience for the mobile
shopper. Manufacturers have a smaller role to play in mobile
shopping, but its an important one, says Sajdeh.
Shoppers are not going to use manufacturer apps until they are
looking for specifi c information. A manufacturer, therefore, can
and should provide that level of information depth through the
retailers platform. Collaboration also entails partnering with
third-party apps and mobile services, which can deliver reach
millions of users, in some cases and also can help turn passive
consumers into active shoppers: Users of location-based rewards
apps like Shopkick or Foursquare may not be planning a purchase
when they check in at a store, but could be responsive to the right
off er once they do.
Rule No. 9: Be Very Flexible. In the mobile world, a new device
like the Apple iPad can launch and add a whole new marketing
vehicle seemingly overnight. Most companies plan 18 months out, but
the industry is now changing every three months, says Iacovone. You
need to have a system in place that lets you respond to that rate
of change and aim eff ectively. The shopper journey is changing
daily, says Tia Newcomer, director of Americas shopper marketing
for Hewlett-Packard Co. If we dont make mistakes, if we dont try,
test, and learn, we wont be successful.
INDUSTRY REPORT
-
The In-Store Marketing Institute is a global organization of
brand marketers, retailers, agencies and manufacturers focused on
improving retail marketing strategy worldwide. The Institute serves
the needs of its membership by providing information, research,
education and training, networking opportunities,
trade publications and a trade show designed to further the
understanding, acceptance and eff ectiveness of in-store marketing.
For more information, go to www.instoremarketer.org.
Arc Worldwide, Leo Burnetts marketing services arm, specializes
in digital communications, direct/database marketing, promotions
and shopper marketing. Formed out of several existing specialist
agencies, Arc is best-in-class across all its disciplines, able to
create and execute campaigns that move people everywhere they move:
online and in-store, over phones and via underground events,
one-to-one and within social networks. Using cross-channel
activation, Arc moves people to experience, to purchase, to
recommend, and to return. Because at the end of the day, every
marketing challenge begins and ends with two things: people and
their behavior. Arc creates award-winning campaigns for The
Coca-Cola Company, McDonalds, MillerCoors, Procter & Gamble and
other leading companies.
Augme Technologies is the leading mobile marketing solutions
provider for some of the worlds largest consumer and pharmaceutical
brands. The company fi rmly believes that fi nding a truly complete
mobile solution is more important than ever for creating customer
loyalty, infl uencing purchase decisions, and
understanding consumer behavior. Augmes AD LIFE technology
platform uses patented device-detection and the industrys most
advanced mobile content adaptation software to give brands access
to larger segments of targeted audiences across diff erent mobile
platforms and providers using 2D barcodes, text messaging, mobile
couponing and more. For more information, text AM to 30333.
Rule No. 10: Promote your eff orts. One step that mobile
marketers have largely forgotten thus far is
telling people about their eff orts, says Garris. We dont see
any promotion, which is a huge miss. We need to get a little bit
smarter about helping to drive adoption. While response rates are
low mainly because of low penetration levels for most mobile
technologies, a general lack of knowledge is also a factor. For
instance, Nobody is marketing these shopper apps yet, says Sajdeh,
noting that the iTunes App Store doesnt even have Shopping among
its classifi cations. Pfi zer provided a good example of what to do
in January, when it began running TV ads for the Robitussin Relief
Finder, a mobile website that helps consumers choose the right
product for their needs. The ads depict a shopper at the shelf
accessing the site through his smartphone. Such public education is
an important aspect of new-media development, which is why Augme
advises clients to employ QR codes despite their relatively low
usage levels: Familiarizing shoppers with the codes now will
facilitate the adoption process later. A lot of people are still
uncomfortable trying new technology, says Newcomer. But they become
very engaged once they learn how to use it.
Conclusion: One World?Other potential impediments to adoption,
and possible hindrances to marketing eff ectiveness later on, are
the vast amount of tools and service providers in the marketplace,
and the resulting dearth of technological standards that such
ubiquity brings.
Mobile couponing, as an example, is really tricky right now,
because its a very fragmented space with numerous suppliers, says
Garris. Pull-Ups isnt staging any promotional off ers through the
iGo Potty app (see page 14) largely because there are no tools that
can smoothly work across retailers, says Schuh. While the ability
to deliver shopper-specifi c messages is perhaps the most exciting
aspect of mobile marketing, brands and retailers still desire
access to large audiences.
If you ran a campaign through any other medium that reached less
than 1% of your customers, youd be fi red. Right now, if you do it
with mobile, youre a hero, says Apple. You need to consider scale.
Everyones building their own mobile application. But how many
similar apps do you need on your smartphone, asks Ross at Meijer.
Customers arent interested in having four diff erent [code]
readers, they only need one. Companies are dabbling in this space,
and spending a lot of money on development, Ross says. But if we
could collaborate with other companies with the same needs, we
could increase speed to market and generate faster consumer
adoption. Ross even suggests that retailers could work together on
such tools as an in-store navigation app that would cover multiple
chains, which would add scale to the system and be an even greater
benefi t for shoppers.
Everybodys thinking about doing their own thing. But are there
ways we could share? Augme likewise sees potential in scalable
tools, and currently is working with several in-store marketing
companies to develop a cross-retailer ad network centered on QR
codes at the shelf. Code functionality would let brand marketers
customize off ers for each participating retailer or, theoretically
at least, for each individual loyalty cardholder who scans one. The
age of mass customization has begun. The mobile shopper has
arrived. The First Moment of Truth will never again be the last
step in the path to purchase.
INDUSTRY REPORT