Mobile Brand Strategies, Why Aim Toward a 3.0 Future?

Mobile Brand StrategyWhy aim mobile investments toward a 3.0 future?

The Mobile Relevance ProjectNovember 2011

Research on 3.0 Strategy from www.MobileRelevanceProject.com

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First, what is web 3.0?

Search Layer:Browsers discover

the Brand

Brandinvests in content, e-commerce

and search optimization

Service Layer:Brand

personalizes servicefor each mobile customer

Brandinvests in a

direct-to-consumer channel

Social Layer:Friends

react to Brand

Brandinvests in social mediaand social campaigns

1.0 Web of Pages 3.0 Web of Data2.0 Web of PeopleInteraction with Brand’ssemantic agents

Observed with Facebook’ssocial graphs

Connected with Author’shyperlinks

Agents navigate webon customers’ behalf


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What is the basic strategy leap?

It is a direct-to-consumer channel

To serve high-spending customers,

pioneering Brands are designing mobile lifestyle apps

that simplify and enrich the mobile planning and spending steps

of specific customer segments.

This is raising the bar

for every mobile brand.


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Example: Mobile Lifestyle App

Snow and Ski Report by REI. Supports the mobile planning and spending steps of skiers and snowboarders.

Snow last night Stop at REI on the waySki today


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Step 1: Plan Meal Step 2: Shop Step 3: Cook

iFood Assistant by Kraft. Supports the mobile planning & spending steps of moms.



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Find restaurant

Customizeorder

Repeat favorites

Chipotle Ordering App. Supports the mobile planning and spending steps of loyal customers.



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Why aim toward a 3.0 future, now?

Customers are mobilizing• There are 5.3 billion mobile subscribers : 77% of world population.

• US mobile commerce will reach $119 billion in 2015.

Customers are changing their spending behavior• Online users are browsers… on average, they browse for one week.

• Mobile users are buyers… on average, they act within the hour.

Customers will be grati fi ed in two ways• Comparison Shoppers want the lowest price:

Today:“I’m standing in the store… I’ve scanned the bar code… show all companies on the worldwide web who sell the same product. Show me where I can buy it cheaper nearby and online.”

• Brand Fans want the best advice:

Tomorrow:“I’m sitting in a café… my Disney-loving daughter is turning 5.Since you know she loves fairies and mermaids, show me everything she might like: seeing a new Disney movie, reading a new Disney book, playing with a new Disney toy—or redecorating her room with Disney character accessories.

Win on lowest price or best advice. Set your strategy now.


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Why aim toward a 3.0 future, now?

Intermediaries are investi ng in a direct channel to consumers• They are investing to win comparison shoppers who want the lowest price.

• In a Brand’s area, Bing and Yelp helps customers find a closer, cheaper venue.

• In a Brand’s store, Google Shopper scans a bar code, compares prices nearby and online…

Brands must counter with a direct channel to their customers• Brands must invest to retain high-spending customers who want the best advice.

– Create a private web of data that links customer interests to brand resources.– Capture real-time customer insight.– Automate trusted advice.– Personalize service across all digital channels and physical locations.

Brands must invest in a new strategic infrastructure• Leaders have already automated the inside and supply side of their business

for real-time transactions.

• Now they must automate the customer side of their businessfor real-time interactions: ask, advise, serve.

• Requires 3.0 apps and a 3.0 platform.

There is learning curve. Start preparing now.


Intermediarieson the world wide web

Brand’s private web of data

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What risks do many Brands face?

Risk #1 The team hasn’t elevated the market risk to Senior Management

Scenario: Mobile Intermediaries win comparison shopping consumers. What are the implications for your high-volume products? Scenario: Competitive Brands win high-spending customers. What are the implications for your high-profit relationships?

Risk #2 The Brand bets its future on a mobile website

Every Brand must have a mobile website.But many Brands spend all their money creating/maintaining native phone versions of their mobile site,which will appeal to searching consumers... but will not appeal to high-spending customers(they will want mobile lifestyle apps).

Risk #3 The Brand enhances its mobile website

Brands add customer profiling, local search, and smart phone features—to their mobile website.The result: a site stuck in the middle of two customer strategies: some features for searching consumers, some features for high-spending customers.The middle-of-the-road site isn’t strong enough to win either customer.

Miti gate your risks now Involve your company’s strategy leaders and advisors. Review this presentation to learn how to plan and execute a 3.0 strategy.


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How to aim toward a 3.0 future

Customer-Centered Strategy

1. Customer strategies are designed to win the mobile lifestyle spending of specific customer segments.

2. Lifestyle apps are designed to support the mobile planning and spending steps of specific customer segments.

3. Lifestyle content is designed to support the mobile engagement of specific customer segments.

Customer-Centered Technology

4. Web services are designed to deliver direct-to-consumer service.

5. A semantic layer is designed to personalize service for each mobile customer--and to share that personal experience with all your digital channels and physical locations.

6. Semantic agents are designed to power real-time interactions, improve relevance, and discover themes within customers’ mobile lives. This generates a new kind of mobile lifestyle intelligence.

Customer-Centered Methodology

7. A value release methodology is used to synchronize marketing and IT projects, so that each release earns a greater share of mobile lifestyle spending.

Start with a paradigm shift:from a company-centered website, to customer-centered research.The rest of this presentation reviews these steps:


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Customer Strategies

• Who are your high-spending segments? • What are their mobile planning and spending steps?• What new level of service can you offer to beat what they can get from other trusted Brands?

PaintersBenjamin Moore App. Photograph a color,match to paint and pallets, find a local store.

Customer strategies are designed to win the mobile lifestyle spending of specific customer segments.

Interior DesignersMark On Call App. Layout a room. Take pictures of manufacturers’ finishes, fabrics, rugs, flooring and "SKIN" them onto any item orsurface. Create a shopping list.

PaintingWalls Pro AppPhotograph your room and see what it looks like in different colors.

ContractorsHome Depot App: ToolboxInteractive CaliperMeasurement Converter Nut & Bolt Finder Tape MeasureDrywall CalculatorFlooring Calculator Insulation CalculatorInterior Paint Calculator

Do it YourselfersHome Depot AppHow-to’s linked to products and toolsrequired to complete the project.

Example: 4 high-spending segments served by do-it-yourself retail brands


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Customer Strategies

Lowest Price BuyersGoogle Shopper App. Stand in a store,scan a product’s barcode, find lowest price —locally and online.

Features-for-Cost BuyersBest Buy App. Stand in a store,scan a product’s barcode, compare to other similar products.

• Who are your comparison shopping segments? • What are their mobile planning and spending steps?• What new decision-making support can you offer to win the immediate sale?

Best Advice BuyersBenefit Cosmetics In-Store App. Used by staff to deliver beauty advice.

Continued

Example: 4 comparison shopping segments served by different types of retail brands

Brand-on-Sale BuyersGilt for iPad App. In a café,see a flash sale for your favorite designer(limited time offers for surplus stock).Immediately buy online.


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Lifestyle AppsLifestyle apps are designed to support the mobile planning and spending steps of specific customer segments.

From: Retailer’s Mobile SiteCompany’s online content/product categories

To: Do-It-Yourselfer’s Project AppCustomer’s mobile planning/spending steps

Example:

• Home: Ads • Appliance sale• Find a store…

• Tab 2: Shopping• Holiday• Appliances• Bath• Building Supplies• Electrical…

• Tab 3: Gift Cards• Classic• Team 48• Birthday• New Home…

• Tab 4: Ideas• 1st: Bathroom: promoting a vanity and mirror• 2nd Living room: promoting an area rug…

• Tab 5: My Cart

• Tab 6: Videos• Garden• Appliances• Bath• Building Supplies• Cleaning…

Example:

• Step 1: Project SearchDisplays a visual list of projects (or a project search box).For selected patio project; show 5-6 patio styles.

• Step 2: PlanningFor selected patio style, stores image and info in project folder.Can email to collaborators for comments or approval.

• Step 3: ShoppingFor selected patio style, presents a materials list. Customer clicks items to purchase.

• When finished, app generates shopping list, pulls relevant coupons or loyalty points, and directs to local store.

• Step 4: Reviewing Resources: Advisors, Videos, Classes, ServicesFor selected patio style, presents a list of recommended resources.Customer chooses a local advisor, how-to video(s), in-store classes, or installation services.

• When clicked, app records advisor name in contact list,videos in a personal how-to channel, and classes in personal calendar --and schedules installation from local store.

• Step 5: CollaboratingProject folder with advisor’s name, videos, class schedule, and installation schedule,can be shared with collaborators.

• Tabs to access: Project Search, Project Plans, Shopping List, Advisor Contacts, Video Channel, Class Calendar, Installation Schedule.

• Who is your most important customer?• How can you help this customer plan and spend while on the move?• What new level of content, utilities, and service are required?

For illustration purposes only


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Example:

• Step 1: Staging Search• Displays a visual list of popular staging styles and color pallets.

• Step 2: Estimating• A staging utility: For selected look and color pallet,

recommends paint, flooring, lighting, appliances, and closet systems. • Agent can select items and enter quantities or room sizes.• App estimates staging costs. Agent refines plan until budget is achieved.

• Step 3: Collaborating• Agent can share staging plan with colleagues for comments,

and with home seller for approval.

• Step 4: Shopping• Agent approves staging plan to generate a shopping list. • App charges the agent’s real estate account and adds loyalty points.• App schedules delivery to the home seller’s address.

• Step 5: Scheduling • For approved staging project, app recommends installation services.

Agent selects and schedules installation at the home seller’s address.

• Step 6: Sharing• App sets up a new home-owner folder with shipping address,

warranties, paint colors and a complimentary gift card from the real estate agent . When the house is sold, the agent canforward this folder to the new home owner.

• Tabs to access: Staging Search, Estimating Utility, Shopping List, Installation Schedule,Client Folders

Real Estate Agent’s Staging AppCustomer’s mobile planning/spending steps

Another exampleFor illustration purposes only

Lifestyle Apps

• Who are your other high-spending customer segments? • How can you help them plan and spend while on the move?• What new level of content, utilities, and service are required?

Continued


15Research on 3.0 Strategy from www.MobileRelevanceProject.com

Lifestyle Content

Lifestyle content is designed to support the mobile engagement of specific customer segments.

• Are you familiar with the 4 types of content that mobile brands are producing?• What type of content will engage each of your high-spending customer segments?• Can you create and brand this content?

Fan content

Lifestyle promotions

Experienceadvice

Ravingpersonas

Field guide to staging a house for sale…

The do-it-yourselfer’s basic toolkit and skill set…

Spring cleaning tips: Organize closets and garage first…

Staging a home to sell in the spring: The garden and lawn is first…

Do it yourselfer’sproject app

Real estate agent’sstaging app

Closet system installation guide,shopping list, accessory recommendations over time

Spring garden staging guide, shopping list, seasonal plantingreminders to the new home owner

Tips from a remodeling expertand other closet installers

Recommendations from other garden stagers and gardeners

Brand’slifestyle content

Examples for illustration purposes only

Stream

Shop

Search

Share

Customer’smobile interactions

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Web ServicesWeb services are designed to deliver direct-to-consumer service.

Customers’ Mobile AppsDifferent apps support different planning and spending processes.

Brand’s Web ServicesStandardized services support many apps, and operate at internet scale and speed.

Web Access

• What new, direct-to-consumer services are required?• Can you use some of our mobile investment to develop reusable web services?• How can you architect those services to operate at internet scale and speed?

Dynamic Mobile AppsPersonalized applications

Process orientedReal-time

Standard Web ServicesReusable web servicesOrchestrated solutions

Message oriented

Service Oriented Architecture (S0A)

Fancontent

Mobileutilities

Spendingpathways

LifestylePromotions

Ravingpersonas


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Advisor SearchReal-time customer insight

Branded advice

Consumer SearchReal-time app personalization

Peer-group trends

Semantic LayerA semantic layer is designed to personalize service for each mobile customer--and to share that personal experience with all your digital locations and physical channels.

Customer Apps

Advisor AppsDigital ChannelsInnovation Research

• When will you begin to experiment with semantics to prepare for web 3.0?• What new level of app personalization will you deliver first to mobile customers?• What new level of customer insight will you deliver first to channels and staff?

2-Way Semantic Search

Customer Interest DataSemantic data conveys

customer’s persona,styles, interests,

preferences, results

Brand Advisory DataSemantic data links to

relevant content, people, places, products, services,

experiences

peer trends

personalized service

brand advice

customer insight

PrivateWeb of Data


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Semantic AgentsSemantic agents are designed to power real-time interactions, improve relevance, and discover themes within customers’ mobile lives. This generates a new kind of mobile lifestyle intelligence.

• Will you own your customer’s interactive relationship and interest data?• What is the value of pulling interests and improving relevance—in real time?• What is the value of discovering themes and accelerating trends for big hits and long-tail spending?


Asks Advises AcceleratesAssesses

RavingPersonas

FanContent

AdvisoryRoadmaps

LifestylePromotions

My Styles My Interests My Next Steps My ThemesFormulatecustomer interests

Personal Agents:

Personalizecontent

Power interactions

RavingTrends

FanOfferings

AdvisoryServices

LifestyleResources

Personalizeresources

3.0 Platform

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Value Release ManagementA value release methodology is used to synchronize marketing and IT projects, so that each release earns a greater share of mobile lifestyle spending.

Lifestyle Apps

Lifestyle Content

Web Services

Semantic Agents

New appfor customer

segment A

Share of Spending Goal $$$

New utilityfor customer

segment B

Share of SpendingGoal $$$

Customer Strategy

• Are you running your mobile innovation initiative as a revenue generating initiative?• Instead of monolithic department projects, are you synchronizing the value you release to customers?• How will your next value release increase your share of mobile lifestyle spending?

Mobile Program

New personalizationfor customer

segment A

Share of SpendingGoal $$$


ValueRelease

Value Release

Value Release

Semantic Layer

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Summary: Aim toward a 3.0 future


Customer-Centered Strategy

1. Customer strategies are designed to win the mobile lifestyle spending of specific customer segments.

2. Lifestyle apps are designed to support the mobile planning and spending steps of specific customer segments.

3. Lifestyle content is designed to support the mobile engagement of specific customer segments.

Customer-Centered Technology

4. Web services are designed to deliver direct-to-consumer service.

5. A semantic layer is designed to personalize service for each mobile customer--and to share that personal experience with all your digital channels and physical locations.

6. Semantic agents are designed to power real-time interactions, improve relevance, and discover themes within customers’ mobile lives. This generates a new kind of mobile lifestyle intelligence.

Customer-Centered Methodology

7. A value release methodology is used to synchronize marketing and IT projects, so that each release earns a greater share of mobile lifestyle spending.

Start with a paradigm shift:from a company-centered website, to customer-centered research.The presentation reviewed these steps:

The Mobile Relevance Project

This introduction to Web 3.0 Strategy is published by The Mobile Relevance Project,a knowledge-sharing initiative of Relevens, Inc.

Relevens, Inc. helps clients set 3.0 strategies, design 3.0 apps, and develop 3.0 platforms. We work with our client’s strategy, marketing and technology teams, and their consultants,to help them prepare their Brand for web 3.0. We share our 3.0 research and bring specialized expertise in using semantics to personalize service for each mobile customer.

Consider these next steps: • For your strategy leaders, annotate and circulate this introduction to Web 3.0 Strategy • For your marketing team and agency, ask for a private presentation of our research on Web 3.0 Apps• For your technology team and consultant, ask for a private presentation on Web 3.0 Platforms• For your planning team, ask to see an outline of our 3.0 Innovation Workshop

We look forward to helping you aim toward a 3.0 future,

Frank Huybrechts Mobile: 310-980-2443 Email: [email protected]

This introduction to Web 3.0 Strategy is published under a creative commons license.You are free to adapt for your personal or commercial use if you attribute the work to www.MobileRelevanceProject.com.

mailto:[email protected]

http://www.mobilerelevanceproject.com/

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Mobile Brand Strategies, Why Aim Toward a 3.0 Future?