Mobile Marketer Guide to m-Commerce November 2012

CONTENTSPAGE

3 INTRODUCTION Mobile commerce set to blaze new trails By Mickey Alam Khan

4 The state of mobile commerce By Rimma Kats

7 How to create a mobile commerce site By Rimma Kats

10 Unique marketing opportunities with SMS By Colleen Petitt

12 Creating a mobile CRM program with SMS By Chantal Tode

15 Using SMS and short code marketing to drive traffic to retail locations By Rimma Kats

17 Increase ROI with measurable results By Robin Eyre

18 The case for mobile commerce By Chantal Tode

20 3 tips for using mobile direct display advertising By Dave Lawson

22 Increase engagement, sales and loyalty with mobile rich media By Matevž Klanjšek

24 Do retailers get mobile commerce? By Lauren Johnson

26 How to create a mobile commerce application By Lauren Johnson

28 Will simply repurposing the ecommerce site work? By Lauren Johnson

30 The effect of HTML5 on mobile strategy By Chantal Tode

32 5 in-app metrics you are not measuring, but should be By Raj Aggarwal

34 Own the in-store customer experience via location-aware branded app By Dan Lowden

PAGE

36 Case studies on mobile campaigns and programs during retail sites By Lauren Johnson

39 Mobile coupons: The tipping point of mobile commerce By Shuli Lowy

41 The allure of mobile coupons By Rimma Kats

42 Mobile coupons: A little less conversation, a little more action By Jeffrey Sampson

44 What types of coupons work best for mobile commerce? By Lauren Johnson

46 Case studies on mobile coupon programs By Chantal Tode

48 Proximity and presence in retail mobile marketing: three consumer benefits By Jack Philbin

50 How to make a mobile commerce site transactional By Lauren Johnson

51 Billing options on a mobile commerce site By Chantal Tode

53 How secure are mobile commerce transactions? By Chantal Tode

55 The role of wireless carriers in mobile commerce By Chantal Tode

57 Research on mobile commerce By Lauren Johnson

59 Mobile commerce in a multichannel environment By Lauren Johnson

61 Legal developments affecting mobile commerce By Michael B. Hazzard and Jason A. Koslofsky

63 The legal do’s and don’ts of mobile commerce By Chantal Tode

65 Mobile commerce: Your customers are demanding it By Jared Friedman

PAGE 2 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012


INTRODUCTION

But those reservations do not matter. What is indisputable is that mobile is the future of retail. Savvy retailers are ahead of their customers, offering shopper-friendly mobile sites, applications, SMS- and email-based loyalty programs, coupons, QR codes and targeted, geo-fenced mobile advertisements and integration into Apple and Google’s loyalty and commerce initiatives.

Show groomingMobile commerce is expected to account for 20 percent of online sales in 2012, according to IBM. But that is just the beginning. As consumers get more comfortable shopping on smartphones and tablets, overcoming issues such as unfamiliarity and security fears, they will take to mobile commerce at an even faster adop-tion rate than ecommerce. Sadly, not all retailers understand the speed of adoption that they can expect from consumers, nor the heightened expectation levels from their target audience.

What this Classic Guide to Mobile Commerce does is pro-vide how-to advice, pointers and best-practice tips on how to get a retailer started in mobile commerce. It is also use-ful for retail executives who are already including mobile in the mix to evaluate how they stack up with best practice.

Mobile must not be viewed as merely yet another technology. Instead, it is to be respected for what it has done to consumers: liberated them from time and space constraints associated with searching, shopping and buying. It is not technology that is mo-bile, it is the consumer.

Indeed, given the state of the economy and the increasingly fin-icky nature of consumers, retailers have little time to offer an op-

timized shopping experience on mobile. Smartphones are already playing a critical role in driving traffic to retail stores, in addition to threatening the viability of bricks-and-mortar operations with the new showrooming phenomenon where consumers research in stores on their phones only to buy elsewhere for cheaper – Amazon.

Tablets, on the other hand, are now stealing share from laptop- and PC-based ecommerce, making shopping more enjoyable and appealing. Many retailers now claim that tablet commerce is on its way to becoming the dominant mobile revenue channel.

Covering groundPlease read this guide from page to page, and pass along the link to colleagues and clients. Included in this edition are insights from some of the smartest minds in mobile commerce. We thank them for their contribution, time and effort.

Also, many thanks to our advertisers OpenMarket, Appcelerator, Fiksu and SiteMinis. Their work for clients has helped shape smart mobile commerce strategy and tactics. Finally, a big thank-you to associate editor Rimma Kats for her art direction, editing and reporting, as well as associate editor Chantal Tode and associate reporter Lauren Johnson for their reports. Ad sales director Jodie Solomon’s contribution is also much valued, as is content assis-tant Kristina Mayne’s help.

The Mobile Marketer/Mobile Commerce Daily team has worked hard to maintain the standards expected of them and the publi-cations. We hope this Classic Guide will help retailers interested in mobile commerce set new standards as well.

Mobile commerce set to blaze new trails

Mobile commerce is the one mobile channel on fire. As re-tailers are learning – to their chagrin or delight – mobile

can be their best friend, worst enemy or, as many view it, as the frenemy.

Mobile Commerce Daily covers news and analysis of mobile, retail and commerce. The Napean franchise comprises Mobile Marketer, MobileMarketer.com, the Mobile Marketer Daily newsletter, MobileMarketingDaily.com, MobileCommerceDaily.com, MCommerceDaily.com, the Mobile Commerce Daily newsletter, MobileNewsLeader.com, Classic Guides, webinars, Mobile FirstLook, the Mobile Marketing Summit and the Mcommerce Summit and awards. ©2012 Napean LLC. All rights reserved. No part of this publication may be reproduced without permission.

401 Broadway, Suite 1408New York, NY 10013Tel: 212-334-6305Fax: 212-334-6339Email: [email protected]: www.MobileCommerceDaily.com

For newsletter subscriptions:http://www.mobilecommercedaily.com/newsletter

For advertising:http://www.mobilecommercedaily.com/advertise

For reprints:[email protected]

Mickey Alam KhanEditor in [email protected]

Chantal TodeAssociate [email protected]

Rimma KatsAssociate [email protected]

Jodie SolomonDirector, Ad [email protected]

Lauren JohnsonAssociate [email protected]

Kristina MayneContent [email protected]

Mickey Alam [email protected]

mailto:news%40mobilecommercedaily.com?subject=

http://www.MobileCommerceDaily.com

http://www.mobilecommercedaily.com/newsletter

http://www.mobilecommercedaily.com/newsletter

http://www.mobilecommercedaily.com/advertise

http://www.mobilecommercedaily.com/advertise

mailto:reprints%40mobilecommercedaily.com?subject=

mailto:[email protected]


mailto:chantal%40mobilemarketer.com?subject=

mailto:chantal%40mobilemarketer.com?subject=





mailto:lauren%40mobilemarketer.com?subject=

mailto:lauren%40mobilemarketer.com?subject=




The state of mobile commerceBy Rimma Kats

Companies such as eBay and Starbucks have seen success with mobile and are increasingly looking at new ways to drive consumer interaction.

Marketers are beginning to incorporate different mobile mediums into their strategies, rather than solely using one.

“A mobile commerce site is no longer a nice-to-have,” said Wilson Kerr, vice president of business development and sales at Unbound Commerce. “For any online retailer, integrated mcommerce is now a must-have.

“Apple alone has sold almost 220 million iPhones and over 50 percent of Americans now own a connected smartphone,” he said. “Mobile commerce is expected to hit $20 billion this year, up almost 65 percent from 2011.

“EBay expects to see its mobile commerce grow from $5 billion to $8 billion, without any impact to ecommerce. Yet, despite these insane numbers, only about 30 percent of top 500 online retailers have a mobile site.”

Driving innovationMobile commerce is here to stay and growing fast.

According to Mr. Kerr, smart retailers will not view a mobile site as a mirrored, smaller version of their Web site.

“The fact is that mobile consumers behave differently than online shoppers,” Mr. Kerr said. “They buy more, faster and can use mobile to find retail locations.

“Mobile is a unique new channel and we are only beginning to learn how powerful it will become,” he said.

T he mobile commerce space is growing at an exponential rate and with new technologies such as NFC and augmented reality being incorporated

into marketing strategies, there is no doubt the industry will take bigger leaps next year.

Marketers tend to be fearful and cautious about mobile.

However, it is important that marketers test and try out new mediums.

Marketers need to understand mobile consumer behavior and the best way to do this is to link a mobile marketing campaign with mobile commerce conversion metrics.

“The sky is the limit,” Mr. Kerr said. “As social commerce struggled to find itself, mcommerce will keep growing.

“As connections speeds increase generally and more retailers deliver a user-friendly mobile site, mobile



consumers will become increasingly comfortable with making purchases online, on their phones,” he said.

“Retailers should beware revenue-share deals that allow them to launch a mobile site for little upfront fees, as they will almost certainly pay for more later.”

New directionThe mobile commerce space is getting interesting.

This is because the line is blurring between destination and ecommerce, most visibly in Apple stores, according to Tom Limongello, vice president of marketing at Crisp.

“The cashier walks over to you as you are looking at the product, and the same happens on your phone as

the ‘cash register’ potentially works right on a mobile application,” Mr. Limongello said.

“Also, the payment process is getting easier, from card swipe machines being embedded into phones via Square to apps that are scannable like LevelUp, Belly and Starbucks to the first NFC posters that Android devices can interact with, payments and commerce is no longer tied to a fixed register,” he said.

There are many areas in the mobile commerce space that marketers can improve on.

Take curation, for example.

Putting the right product in front of consumers at the right time is key.

Whether the media is outdoor, in-store or on-device, splitting up time based on the most likely product to be bought based on the time of day, week or even month can be optimized so much to drive mobile commerce based on a variety of factors that include outdoor events, television programming, film releases, product releases and merchandise sales of any kind.

Mobile commerce is going to be all about personalization and relevance.

Marketers who marry the two will see success.

“I think mobile can help flatten out the buzz-driven variability in the social commerce space,” Mr. Limongello said. “For example, mobile can offer a way to driving more regular ticket sales to concerts.”

http://www.openmarket.com/pushdemo

How to create a mobile commerce siteBy Rimma Kats

When developing a mobile commerce-enabled site, it is important that marketers clearly decipher and outline their business goals for mobile, whether it is increas-ing sales ROI, brand engagement, or a combination of both. After establishing clear goals, marketers should determine which specific areas of their value proposi-tion they want to emphasize on mobile, in addition to any additional unique features they want to add to the mobile experience. “It is also important for marketers to understand their customers’ needs and what they would benefit from in a mobile environment,” said Carin Van Vuuren, chief mar-keting officer of Usablenet, New York. Critically importantA mobile site is critical for marketers for a very simple reason – mobile is where consumers are spending a sub-stantial amount of their time browsing and shopping. Mobile has evolved from being viewed as a luxu-ry to being recognized as a necessity for a brand to experience true success in today’s smartphone- driven world. Additionally, a mobile site is a great way for marketers to increase engagement between their brand and consum-ers, in addition to bridging the gap between offline and online purchases.

“As smartphones and tablets have become key drivers of Internet usage, brands are now realizing that it’s not enough to just offer a simple optimized site,” Ms. Van Vuuren said.

“With that in mind, we expect to see more and more brands turning to strategies that leverage next-genera-tion features and technologies like HTML5 that make the

Retailers are constantly looking at mobile as an ideal medium to drive incremental sales. However, when developing a commerce-enabled mobile site, mar-

customer experience just as comprehensive and easy-to-use as the traditional Web site,” she said.

“In addition, we anticipate seeing more mobile commerce sites that intersect mobile and social, allowing custom-ers to not only shop but also socialize and share their favorite products and activities with friends. And lastly, we expect to see tablet commerce continue to grow in popularity and usage.”

Mobile shoppingMobile provides a big opportunity to retailers. Indeed, having a mobile-optimized site is critical.


keters need to take understand consumer needs to fulfill their coals.


Consumers are constantly on their mobile devices and are continuing to turn to them to make purchases – both small and large. “A mobile-optimized site that allows consumers to eas-ily search, browse and buy is the first step in enabling a mobile channel,” said Dan Lowden, vice president of marketing at Digby. “Key features of the mobile site should include: rich product photographs, complete product descriptions, customer-submitted product ratings and reviews, prod-uct video demonstrations, shop by category, shop by brand, store locator, email, share to Twitter and Facebook and a complete, ever-present site search,” he said. “It is important to note that the brand’s mobile site should not be a cut-and-paste of the online site, but in-stead designed for the unique ways in which consumers use mobile. Brands who create a rich, easy-to-use ex-

perience for mobile will substantially improve sales and customer acquisition.” With more than 50 percent of Americans now owning a smartphone and 64 percent of those consumers using their mobile devices to shop online, a mobile site is a must-have for brand marketers. Mobile commerce sites let brands connect with their customers 24/7 whether they are at home, on the go or inside of the retail store. “By offering a unique and elegant mobile shopping expe-rience across all smartphone device platforms, the brand can create a positive shopping experience for the widest range of customers,” Mr. Lowden said. “It is then when the brand moves the consumer from an occasional shopper to a loyal customer that they can entice them to download the branded mobile app for the loyalty program and location-based features to create an even deeper, more significant relationship,” he said. According to Mr. Lowden, mobile is becoming much more than just strict mobile commerce. “More and more consumers are using their smartphones as a shopping companion to aid the in-store experience, look for relevant offers and find the nearest locations,” Mr. Lowden said. “By the end of 2012, we are going to see a significant increase in brands that enable consumers to check-in to a store location to see promotions and receive discounts, scan UPC and QR codes to access more detailed prod-uct information including ratings and reviews and video demonstrations, and participate in store exit surveys that can earn shoppers loyalty club points,” he said. “Consumers will have the ability to receive highly rel-evant messages and offers directly from their favorite retailers and brands based on where they are and what they’re doing, and retailers will be able to view shopper behaviors from check-in to exit, understand the length of visits to stores or other locations, and observe geo-graphic trends.”

They’re using an iPhone in the morning, laptop during the day,

and a tablet in the evening. Let Appcelerator help you learn how

to reach your customers throughout the day, wherever they are.

How do you build a scalable mobile strategy?

How can mobile drive new revenue?

How will you use mobile to improve your business processes?

We help some of the best brands in the world plan and execute their mobile strategies. We’d like to help you, too.

appcelerator.com

© 2012 Appcelerator, Inc. All rights reserved. Appcelerator is a registered trademark of Appcelerator, Inc.

YOUR CUSTOMERS HAVE

GONE MOBILE ...

... ARE YOU GOING WITH THEM?

http://www.appcelerator.com

Targeting and segmentationThe first step in designing a successful SMS campaign is to define the target audience, determine what the busi-ness objective is and then refine the message.

Customer segmentation qualifications could include:

1. Age of consumer. What age range do you want to reach?

According to a 2010 Yankee Group study, the sweet spot for SMS is between the ages of 20 and 34, where 60 to 70 percent of those polled text every day.

The percentage drops after age 35 to about 45 percent, so an SMS campaign aimed at senior citizens would probably not see the same success as one that targets twenty-somethings.

2. Location. What offers can you make to customers that are location-specific? Is it an unusually hot day? Send a message that says “It’s hot outside, but our yo-gurt is ice cold. Show this text for buy 1 get 1 free.”

Provided they have opted-in, consumers welcome this kind of relevant, real-time interaction.

3. Customer value and engagement. Regular custom-ers should receive different messaging than prospects. If someone signed up in store versus through a radio ad, you should create message streams that address their experience.

While this level of targeting is critically important, it is

Unique marketing opportunities with SMSBy Colleen Petitt

That is potentially a significant strategic mistake, con-sidering the open rate for texts is 98 percent – compared to 22 percent for emails. Additionally, the average num-ber of emails a customer receives a month is 1,216. The average number of texts? 178.

Moreover, 91 percent of Americans own a mobile phone. Eighty-two percent never leave home without their phone.

Of course, SMS campaigns do have certain limitations, one of the biggest being that a marketer has only 160

SMS marketing is one of the most immediate and pow-erful ways to reach customers. Yet it is often over-looked in deference to more traditional approaches.

characters to deliver a message that will spur customers to action.

Not 160 words – 160 characters.

It is critically important to find the right audience for an SMS cam-paign and make each one of those characters count.


Colleen Petitt

impossible without a short code and a keyword.

Short codes and keywordsShort codes are 5-6 digit telephone numbers that can only be used from mobile phones and are country-specific.

Optimally, short codes are easy to remember and difficult to forget, and they help consumers engage with a brand via a wide spectrum of activities, ranging from survey polling and charitable giving to news alert subscriptions and mobile services.

A keyword is the word or phrase consumers send to a short code to subscribe to mobile marketing.

For example, a marketer may ask consumers to text the keyword JOIN to a short code to subscribe to a breaking news alert.

“The Ed Show” on MSNBC uses a dedicated short code


and two keywords for polling.

In this case, the keywords are “A” or “B.”

Host Ed Schultz reveals the results of that night’s poll at the conclusion of each episode.

Another example is “American Idol.”

The show invites viewers to text the keyword VOTE to a separate short code for each contestant.

Keywords must be kept short – ten characters maximum – and aligned with preexisting brand language.

They also must be preapproved by carriers and follow the Mobile Marketing Association Guidelines.

Adjusting copyAnother crucial element of successful SMS campaigns is targeted copy.

With only 160 characters to spur recipients into action, marketers must think small and precise for SMS, saving longer messages for email.

For example, when planning to market a special event, a marketer might use email to promote detailed informa-tion, then send a short text message alert on the day of the event.

At the end of the day, only three questions need to be answered in an SMS message.

What is the brand, product or service? What is in it for the customer? What should the customer do next?

That said, the message length and carrier approval pro-cess for SMS campaigns may seem daunting.

For savvy marketers who are willing to get creative around these guidelines, a compelling and innovative SMS cam-paign can markedly improve the customer experience.

Colleen Petitt is director of digital and email services atAprimo. Reach her at [email protected].

mailto:colleen.petitt%40aprimo.com?subject=

Creating a mobile CRM program with SMSBy Chantal Tode

McDonald’s, IKEA and others have all discovered the importance of SMS for engaging customers in ongoing conversations and being able to easily reward them for their patronage.

However, despite the fact that research shows that SMS can produce engagement rates of up to eight times higher than retailers normally achieve via email marketing, many retailers are still merely dabbling in SMS.

SMS is the gateway to mobile CRM programs that can drive customer loyalty. Merchants are seeing strong results from well-executed SMS campaigns, which

can be the underpinning for a mobile CRM program that drives customer loyalty and enables merchants to deliver coupons, offers and other important communications.

“With typical response rates of more than 95 percent, mobile marketing via text messaging offers a uniquely powerful and highly personal communication channel compared to other media,” said Jack Philbin, cofounder/CEO of Vibes, Chicago.

“Consider for a moment that 91 percent of Americans keep their mobile phones within reach 24/7,” he said.

“With this level of impact, building a mobile database and creating a strategic text messaging strategy needs to be a foundational component of any brand’s mobile CRM plan.”

A ubiquitous toolThe main focus of merchants with large CRM databases has been to use SMS to offer an alternative communication tool for new and existing consumers.

This enables customers to receive text alerts or reminders via SMS instead of email.

Many are missing out on an opportunity with SMS to drive deeper engagement with interested customers.

“There is no simpler way to immediately interact with your consumer than SMS,” said Jeff Kilman, CEO of Pocketstop, Dallas, TX. “For both opt-in and ongoing communication, there is no tool that is more ubiquitous and easier to use.

“When embarking on an SMS-driven mobile CRM strategy, a merchant should develop a plan that will use the collected data to make smarter and more-timely relationships with customers,” he said.

“This can be accomplished by putting together a roadmap for building an audience, engaging that audience, connecting them into the most relevant marketing channels available and then keep that dialogue ongoing.”

Merchants should be starting now to begin planning their SMS strategy for the fourth quarter, as this is typically when retailers can expect their mobile databases to grow


at the fastest rates for the year while monthly churn rates are typically lower.

The first step in the CRM lifecycle is to create awareness, which retailers can do with a simple text call-to-action message such as printing a keyword and short code on a print ad letting consumers know that they can text to sign up to receive discounts.

This helps engage customers while identifying and building a database of interested consumers.

Once consumers are in the database, retailers need to create a strategic, targeted engagement strategy via text messaging.

This helps marketers build a one-on-one relationship.

“Sending the same deal or coupon via text that was sent via email will not cut it,” Mr. Philbin said. “It should be unique and make the recipient feel special.

“This will build further engagement and ultimately help drive consumers to the store,” he said.

“By leveraging text messaging in combination with multiple touch points, retailers can ultimately lead consumers through the customer journey–awareness, engagement, transaction and loyalty.”

Holistic approachRetailers should also think about leveraging text messaging as one piece to their overall mobile strategy.

By integrating mobile calls to action into cross-channel marketing initiatives and promoting them through in-store, Web, email, print, and social channels such as Facebook, retailers will see the best results for the efforts.

SMS does come with some challenges.

The biggest challenge for a merchant in a SMS-driven mobile CRM is merging that data with all of the other data silos that it has in its system.

Other challenges include combining old traditional

redemption methods with new technology, providing relevant content on a consistent basis and integrating SMS as a part of an overall customer service and marketing strategy.

However, the benefits of SMS significantly outweigh any hurdles.

“Because it exerts the power of ubiquity and personalization, mobile should be viewed as a multi-channel approach through which all marketing efforts can be deployed,” Mr. Philbin said.

“By doing so, customers will receive a more holistic and cohesive experience, while the retailer improves the value of its brand’s overall marketing strategy,” he said.


http://www.fiksu.com/ebooks

Using SMS and short code marketing to drive traffic to retail locationsBy Rimma Kats

What is great about the channel is that marketers are not only reaching consumers with smartphones, but feature phones as well.

When used correctly, SMS can become the right tactic for marketers.

“First off, marketers need to understand the rules regarding text messaging programs,” said Jeff Hasen, chief marketing officer of Hipcricket.

“Of course, they cannot just buy a list and spam everyone,”

SMS is no doubt one of the best channels that marketers can use to drive in-store foot traffic, as well as keep an ongoing dialogue with consumers.

he said. “Unless they want to read a 160-page guide developed by the MMA and carriers – and who doesn’t – newbies should consult with experienced mobile providers who can guide them through the process that begins with obtaining a short code and ends with a value exchange with mobile subscribers.

“Even before that happens, marketers should set clear objectives and ensure that SMS is the right tactic.”

Driving foot trafficSMS is critical for marketers looking to drive in- store traffic.

By opting mobile users into VIP clubs, retailers have the ability to bring people into a store with the lure of previews, offers and celebrity appearances.

“If you send those kind of messages via email, people may show up in 2016 – or never,” Mr. Hasen said.

“The SMS advantages involve reach, immediacy and permission,” he said. “There is no doubt that mobile commerce is aided by text campaigns that give consumers what they want, when they want it.

“Retailers looking to move product quickly have the ability to reach out to an opted-in member who will be most receptive and likely to buy.”

There are several steps marketers must take to create a successful SMS and MMS campaign that drives high return on investment.

It is important for marketers to determine their goals and objectives.

The first step any marketer must take is to select the key goals and objectives they want to achieve through SMS.

“Is your goal to increase conversion in-store?” said James Citron, CEO of Mogreet.

“Are you trying to build a loyalty club?” he said.



“For many mobile commerce marketers, the goal is both.”

Secondly, marketers should determine their incentive – what will drive their audience to participate and text-in?

Lastly, companies should also select engaging content. The better the content, the higher the response rate.

“SMS and MMS marketing drives in-store traffic through relevance, immediacy and localization.” Mr. Citron said.

“Text messages’ naturally high open rates mean it has the ability to drive immediate action by recipients,” he said. “Smart mobile marketers create time-based SMS and MMS messaging marketing programs, delivering

messages at times during the day most relevant for the consumer to open the message and, if the content is compelling enough, buy the product.

“The more relevant and compelling the SMS message is, the more likely a consumer is to take advantage of it – a compelling promotion such as a coupon code redeemable in-store delivered to the right customer base results in higher in-store traffic.”

Evolution of mcommerceMobile commerce is quickly becoming a significant driver of commerce revenue for retailers – ranging from 10 percent to 50 percent of all digital commerce depending on the retailer.

SMS and MMS is the simplest and most intuitive way to drive increased mobile commerce revenue through targeted promotions. This helps marketers create a two-way conversation with new and existing customers and ultimately lets them create a long-term relationship with their audience through mobile messaging.

“As smartphone penetration in the U.S continues to grow, and as mobile devices become integral to the research/purchase funnel, retailers have to ramp up their mobile efforts,” Mr. Citron said.

“Marketers should create user-friendly mobile sites, build and activate SMS/MMS databases, design QR codes that do more than share existing Web content, utilizing multichannel marketing techniques such as the social sharing of MMS messages,” he said.

Using SMS and short code marketing to drive traffic to retail storesBy Robin Eyre

Mobile phones have truly become a global phenomenon in the past 15 years with close to six billion units in use and whether you have a standard or smartphone, and wherever you are, they will all have two things in common: the ability to call and text.

Savvy retailers cottoned on to this quickly using the simple text message as another channel through which to sell and market their products and services, using it strategically, often in conjunction with other channels and with great results and happy, loyal customers.

So what is the attraction of SMS? Why are millions of marketing messages sent every day? The great thing is few other channels are able to tick all the same boxes.

SimplicityA message is simple to construct, send and receive and gets direct to the customer within seconds. With only 160 characters to play with which must include an opt-out clause, you are forced to be succinct and creative.

VersatilitySMS can be used in virtually any function: marketing promotions, purchase confirmation, delivery notices, appointments and reminders and customer service.

The limit is your imagination.

CustomizationMessages can be customised depending on location, age, product, promotional offer and price. With automated CRM systems the data is easily uploaded.

SpeedMessages can be delivered with seconds or staggered over a set time period. If a call center is involved and traffic is slow, the number of messages being sent can be given a boost to increase interaction.

When it comes to mobile commerce, the No. 1 goal for retailers and brands is to implement programs that ultimately increase ROI with

measurable results.

UbiquityIn the developed world almost every household has a mobile phone.

More than 99 percent of messages are read within five minutes of receipt.

Emails, in contrast, may never be opened, let alone read.


Cost and measurabilityRelative to other forms of direct marketing, costs of an SMS are low and statistics such as delivery, replies if a short code is included, call-backs and purchases if a code or call to action are included are all measurable which is important when assessing a campaign’s ROI.

MultichannelSMS often works best in conjunction with multichannel campaigns.

Sure, sending a delivery reminder might only necessitate one text, but retailers have consistently found that strategic text marketing works best in conjunction with a number of channels and reinforcing the message across email, direct mail, television ads, and the print media.

Robin Eyre is marketing manager at Collstream Ltd. Reach him [email protected].

Robin Eyre

mailto:robin.eyre%40collstream.co.uk?subject=

By Chantal Tode

The case for mobile commerce

While there are many considerations that go into creating mobile commerce strategy, retailers need to act quickly because they are missing out on a growing opportunity to capture sales via smartphones and tablets. While sales transacted via mobile devices are currently a small portion of overall retail volume, they are growing quickly and are particularly important around holidays and special occasions, when users are looking to make last-minute purchases.

A s mobile use continues to grow and affect larger areas of consumers’ daily lives, it is not enough for retailers to simply be present in mobile any

longer – they also need to have a functional offering that enables users to purchase what they want, whenever and wherever they want it.

“Except in the rarest of cases, mobile commerce is an essential component of a retailer’s digital platform,” said Tom Nawara, group vice president of emerging solutions and innovation at Acquity Group, Chicago. “Customer habits and behavior have changed, and they now expect the brands they interact with to have a functional mobile presence.”

Mcommerce volumes growThe examples of retailers who are driving noteworthy transaction volumes via mobile commerce are growing. EBay predicts it will see $10 billion in mobile volume transactions this year, while flash sales site Rue La La recently said that mobile sales surpassed online sales for the first time ever on April 14, representing 53 percent of


the day’s total revenue.

Mobile commerce can also play a significant role in retailers’ broader mobile marketing strategies.

Whether a retailer is using SMS, MMS or QR codes for a promotional offer, it is important to direct consumers to a mobile-optimized product detail page specific to that offer as this will provide a clear call to action that can drive transactions on a mobile device.

One of the first considerations that needs to go into creating a mobile commerce strategy is figuring out how to deliver an optimal shopping experience for mobile shoppers.

“Retailers must first understand the prototypical mobile user experience – as consumers are often engaging in limited time intervals – and design the user experience with elimination of unnecessary steps in the checkout path and a simple, logical navigational flow that allows

shoppers to find the product they are looking for as efficiently as possible,” said Scott Forshay, strategist for mobile and emerging technologies at Acquity Group.

“Having a transactional-capable mobile Web site also plays a vital role in mobile marketing strategies.”

Tablet commerceIt is also important to understand mobile commerce does not simply mean a transactional mobile site.

Tablets are a quickly growing area for retailers, with consumers gravitating to these devices for activities such as shopping because of their bigger screen sizes, and retailers who are optimizing shopping experiences for these devices are reaping the benefits.

“The term ‘mobile’ can mean different things to different people and the landscape is constantly shifting,” Mr. Nawara said.“

Just when retailers were getting to the point of optimizing their big browser ecommerce sites, they now have to contend with mcommerce, tcommerce and even couch commerce with the rise of smartphones and tablets.

“In addition, true mobile commerce includes more than just mobile sites or apps, with retailers also having to determine how to execute in mobile search, SMS/MMS, mobile offers and coupons and mobile advertising,” he said.

“Understanding the various need states of customers across these devices, contexts and tactics can be difficult for retailers, but it isn’t an impossible task.”

What is most important is that retailers do not think in terms of specific techniques – such as wanting to do an app because everyone else has one – but in terms of how their consumers are looking to transact with them via mobile and how best they can support that activity.

“This approach will lead retailers to the creation of an omnichannel platform and allow them to focus on strategic mobile initiatives rather than just grasping at ad hoc tactics,” Mr. Nawara said.


better experience throughout the entire engagement with the customer.

Properly making use of mobile display ads throughout the customer lifecycle helps drive conversions or other desired actions such as sharing, liking, opting-in, check-ing-in and more.

Here are three keys for using mobile direct display advertising to deliver a great customer experience and boost conversions.

Take a holistic approach to targetingIt all starts with data. Having access to all of your mul-tichannel data is critical for creating successful mobile direct display campaigns.

Using data from an individual as the organizing principle lets marketers avoid the typical barriers when it comes to making use of customer data.

Take for example, Jim. He is a customer of yours and has signed up for your emails and SMS alerts. Because all of your data is stored in a centralized profile management system, you also know Jim has visited your mobile site, opened a few emails on his smartphone, and has seen 15 ad impressions.

With this data in hand, you decide to show Jim a display ad on his mobile device of the blue sweater he clicked on

3 tips for using mobile direct display advertising By Dave Lawson

An often overlooked arrow in the mobile marketing quiver is that of mobile direct display advertising, which is treated as a direct communication channel similar to SMS and email.

Like it or not, everyone is connected by multichannel consumerism and marketers can expect to interact with consumers at any place and time.

Taking a profile-based approach to your mobile market-

A s mobile grows, so does the technology behind it and the amount of ways marketers can con-sider, target and build relationships with on-the-

ing and tracking these multichannel touches can enable a more suc-cessful connection of digital dots. This ap-proach evolves common retargeting tactics into a refined relationship remarketing practice.

The real opportunity for marketers lies in not just delivering mobile display ads, but in delivering a


go consumers.

Dave Lawson

when he read your email, which leads him to purchase.

Having all of your data wrapped around a customer pro-file – such as Jim’s – not just a device profile, lets mar-keters see which combination of ads and other channels were most effective by giving a glimpse into referral in-formation and click-throughs.

Use customer profile data to improve ad spendNow that you have a complete customer profile for each customer, you can use that information to help make better ad buying and rendering decisions.

The holistic view of each customer gives you a look at the entire interaction that the customer has with your brand. It allows you to see the types of consumers you should be serving ads to and model them out against future consumer interactions that will occur.

You can also determine which consumers would likely not respond well to ads, which saves you money.

Change how you plan your marketingIn order to effectively execute this mobile advertising technique, you must implement a customer-centric, consolidated approach to your marketing.

Using this approach lets you knock down silos to make better advertising decisions and improve your organizational efficiency.

This is accomplished on many levels.

As illustrated in the Jim example, instead of going channel-by-channel to get permissions, develop content, segment, deliver, test, measure and optimize.

You can decide how to treat customers across all channels while respecting your place in their journey with your brand.

Not only will this orchestrated message flow create a more satisfying experience for Jim, it will deliver bet-ter efficiency because you do not have to execute 100 percent of each step across all the relevant touches of


the brand journey.

Additionally, you will not be burning Jim out with mes-saging best intended for Suzie or for yet-to-be-identified new prospects.

By leveraging a direct digital marketing approach to your mobile advertising, you are not just opening up a single new option, you are setting your marketing up for a game changing pivot that will prepare your organiza-tion for success now and in the future.

Dave Lawson is director of mobile and digi-tal unification at Knotice, Akron, OH. Reach him at [email protected].

mailto:dlawson%40knotice.com.%20%20?subject=

presentations. There is a trade-off between the loading time and the quality of the images, so be selective, but better images typically produce better results.

Starting your ad with a video draws users in. The most effective videos are compact, serving as a teaser and prompting the user to continue the engagement rather than watching and leaving the ad.

TV commercials are not recommended as users have al-ready seen them.

In the right context such as a music-related publisher, audio can be very relevant and effective.

2. Present your products through engagement. Beau-tiful product shots can be presented in a variety of ways to make the product part of a rich, fun experience, keep the audience engaged for longer and, most importantly, get them to make a purchase. Integrating games into your ads gets users emotionally involved and allow you to present all of the products you are promoting.

Users get addicted to the game and often want to play

Increase engagement, sales and loyalty with mobile rich mediaBy Matevž Klanjšek

To achieve these goals, they use mobile advertis-ing to build relationships with consumers and en-gage them by asking them to do something specific – browse through products and shops, find a store nearby, get a coupon or book a test drive.

Static banners that click through to a mobile land-ing page or service can be effective, but consumers

T here is no doubt that mobile marketer’s key objec-tives always include increasing consumer engage-ment, sales and loyalty.

have become hooked on the rich capabilities of their most favorite devices.

Rich mobile advertisements allow brands to fully engage, enabling users to scroll through product image galleries, watch product demos, scroll through product specs and even share a brand message with their friends—mak-ing the shopping experience much more fun, interesting and memorable.

So how should you drive engagement, sales and loyalty with your mobile advertising?

1. Grab the user’s attention. As with any other suc-cessful and effective ad, it all starts with captivating the user’s attention. A meaningful call-to-action is essential and you will want to test different options to find the best performing message.

Great copy can drive up to 20 percent higher click-through rates. By incorporating rich features such as video content and image galleries directly into creative ad units, brands give users more options for response.

Attractive and high quality photos work well for product PAGE 22 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

Matevž Klanjšek


it again.

Completion rates for games are consistently high, 80-90 percent, and after playing, users are more than twice as likely to find a nearby store or start shopping.

Integrating your products as elements within the game and pausing each time the product appears for an expla-nation is highly effective – users are three times more likely to see all the products than they are when viewing a standard product gallery.

Gamification is another great way to get users through

the ad experience especially when you want to collect data or get them to subscribe.

3. Integrate social media. Integrating social media ele-ments into your mobile ads has a positive novelty factor effect and makes your brand cool, fresh, and up-to-date. It also extends your reach and helps with acquisition.

If your brand has a Facebook page or Twitter profile, do not forget to include buttons to take your users there. It is an easy first step towards bringing social media into your ads and it’s also quite effective – typically 3-10 per-cent of users will tap on each.

Newer social media services like Instagram and Pinterest excite users and increase their willingness to engage.

We have seen 15 percent of users want to follow a brand on Instagram. To be truly social, it is important to get your users to do more than just follow or like you – get them to share your product on Facebook or post it to Twitter.

Even better, encourage them to be creative. For example, you could have users create a poster for your brand with-in the ad. They will love doing it and we have seen more than 20 percent post it to Facebook.

4. Make your ads location-aware. However global, all business is local business.

To drive purchases, leverage the user’s location to direct them to the nearest store and offer products that are relevant for where they live or work.

Store locator is a simple and effective way to get users to start shopping. When communicated clearly, more than 10 percent of users will search for the local store within the ad.

For ticket sales, location awareness can be even more ef-fective - up to 15 percent of users will look for tickets for their local theater, music show or sports event.

Matevž Klanjšek is cofounder and chief product officer at Celtra. Reach him at [email protected].

mailto:matevz%40celtra.com?subject=

Do retailers get mobile commerce?By Lauren Johnson

With online-only retailers such as Amazon promoting comparison-shopping in-store, some retailers now view mobile as a threat to business versus being an add-on to a digital commerce strategy.

Although mobile is still a new channel to many retailers, it is clear that marketers are beginning to understand the medium more.

“Many retailers view mobile as a threat to their in-store experience, since consumers can browse information and competitor-pricing while they are shopping,” said Diane Zoi, vice president of business development at Revel Touch, Los Altos, CA.

“However, there is an exciting opportunity for retailers and brands to see mobile devices as allies that enhance the shopping experience for both retailers and consumers,” she said.

Retail opportunityLast year, Amazon upped its mobile strategy during the holidays with a campaign that rewarded consumers who used its Price Check application with a $5 rebate.

By incorporating an incentive, Amazon was able to drive user engagement.

The app uses image recognition to let users snap pictures of products and UPC codes and then scours the Web to find the best price on the item.

Although the app gave consumers an incentive to shop via their device, the Amazon promotion was a flashing sign that mobile poses a threat to both bricks-and-mortar and online retailers. Furthermore, many retailers find the app to be a threat to their business.

W ith consumers comparison-shopping and often buying from competitors while in-store, many retailers are beginning to see mobile as not only

a necessary part of driving sales, but also as a way to bust competitor shopping.

Nowadays, consumers want instant access to products, regardless of whether it is in-store or online.

One way that retailers are proving that they understand mobile is by incorporating bar code scanning capabilities into apps and services that are aimed at helping in-store shoppers learn more about the company’s products.

Retailers are also implementing in-store mobile tools to help shoppers, which not only empowers associates but can also show consumers the value in transacting via mobile.

“IPads have emerged as an inspiring and effective shopping device,” Ms. Zoi said.


“They are bringing shopping experiences to life – through touch, stunning visual display and interactivity — for the first time in ecommerce and forward-thinking brands are using them to enhance the in-store experience,” she said.

Late to the game?Although retailers understand that consumers are gravitating to mobile as a way to access information, is it too late for retailers just now getting a footing in the channel?

As revenue from mobile continues to steadily increase, the swap from seeing mobile as a tacked-on part of a company’s marketing offerings to a way to drive both in-store and online commerce is becoming clearer to many retailers. Additionally, there is a fundamental difference in understanding how mobile impacts a retailer and actually implementing mobile tactics into a business plan.

There is also a growing gap in the differences between


smartphones and tablets that marketers need to approach with different strategies.

For instance, a study earlier this year from digital merchandising platform Zmags found that only approximately one-third of the top 100 retailers in the United States have developed tablet-specific mobile sites.

Although many brands and retailers have developed basic apps and mobile sites, few take full advantage of the opportunities that mobile offers for specific groups of mobile devices. The next phase of mobile

will need to include more personalization and features that go beyond basic transactions to keep up with a new group of consumers who expect that their favorite brands and retailers will be available via their mobile devices.

“Retailers and brands need to invest in having an opti-mized presence in all channels or they risk leaving op-portunities for customer engagement and conversion on the table,” Ms. Zoi said.

How to create a mobile commerce applicationBy Lauren Johnson

As mobile becomes more sophisticated, simply having an app or mobile Web site is not sufficient in giving users an added value. For example, publishers can include commerce features as a way to not only increase in-app subscriptions, but also let consumers shop from advertisements.

“Publishers simultaneously generate diversified revenue and an improved user experience by introducing commerce capabilities to their Web sites and mobile apps,” said Kate Gleckner, director of marketing and brand management at DropWallet, Cherry Hill, NJ.

Seamless transactionSimilar to all marketing initiatives, the key to developing a mobile commerce app is to keep the user experience top of mind.

Additionally, it is important to add commerce to an app in any place where consumers are naturally inclined to pay for content, such as next to products and in advertisements.

Not only is adding commerce to advertisements a way to drive revenue, it is also a function that consumers are starting to expect from a mobile experience.

For instance, a study from GfK MRI iPanel in February found that 70 percent of tablet magazine readers wished that apps included more personalized ads, including the ability to shop from pages.

However, that consumer need is not just from publishers - users also expect to shop from directly inside a brand or retailer’s apps.

Inside scoopMany marketers are experimenting with in-app

Retailers, brands and publishers are quickly realiz-ing that mobile is contributing to revenue, meaning that equipping services such as applications with

commerce. But, many apps still miss the mark when giving users a streamlined and personalized experience.

For instance, if a company’s goal is to drive ROI from an app, it is crucial to keep users inside the app to check-out.

Instead, many apps direct users to a Web site to finish the transaction. Not only does this mean that consumers abandon the app, but the value of it also demolishes.

On the other hand, making the user experience inside an app fun and quick is a great way to give consumers an incentive for shopping via their handsets.


commerce is a crucial part of a mobile strategy.

Take Amazon-owned online retailer Zappos, for instance.

When iPad users add items to their online shopping carts, little kittens fall from the top of the screen. By including interactive features such as this, brands can give consumers a better experience shopping from a small screen.

Zappos also uses push notifications to alert users of new products and 360-degree views to help show consumers what shoes look like from different angles.

Additionally, by letting users log-in once and save information such as shipping and billing details, marketers can use mobile commerce to their advantage by streamlining the shopping experience.

Other features such as user reviews and recommended


items are both great ways to build into a commerce-enabled application. Sephora’s iPhone app includes both customer reviews and related products for each item’s page.

By using a consumer’s browsing and buying behavior, brands and marketers can drive increased basket sizes and ROI from their commerce-enabled apps.

“In order to successfully adopt mobile, publishers will need to clearly understand the average mobile user, who is always on the move and demands results with one click,” Ms. Gleckner said.

“Introducing mobile commerce to the publishing industry requires a balance between the commerce initiative’s two primary goals — an improved user experience and diversified revenue,” she said.

Will simply repurposing the ecommerce site work?By Lauren Johnson

Given its reach to both smartphones and feature phones, many marketers’ first endeavor into mobile is with an optimized site. However, a mobile site forces brands to think from the ground up about the most crucial elements that consumers will want access to while on the go.

“Mimicking the convenience of an ecommerce site works for mobile, but when it comes to design you need to create more of a hybrid layout,” said Mike DiMarco, director of media at FiddleFly Inc., Columbia, MD.

“Mobile users are far more action-driven, so mobile

W ith mobile steadily contributing to more Web traffic, marketers are realizing that if they do not have an optmized site, they will be left behind.

commerce sites need to be designed for specific paths to a final product versus an ecommerce site, which is more tailored to the experience of shopping rather than purchasing,” he said.

Slim pickingsOne of the biggest mistakes marketers make with mobile sites is trying to cram every aspect of a Web presence into a mobile experience.

Even though consumers have shorter attention spans while on their handsets, they have higher expectations.

With smaller screens and different user habits, an optimized site needs to have different goals and functions compared to a Web site, especially with commerce.

For instance, checking out on a mobile commerce-enabled site needs to be quicker and easier than the desktop site.

While it might be OK to ask a consumer to enter information several times on the Web, mobile users want to enter information once and have it saved.

Less is moreIn addition to a quicker check-out, mobile commerce sites also need to include more action-driven features than a Web site.

Including strings of product reviews might be helpful for a consumer searching on a PC.

However, mobile users are more impulse shoppers who most likely already know what they are looking for.

Retailers can merchandise their mobile sites to only include the most popular items on the homepage, for instance.

For users looking for something specific, a search bar is one of the most effective features for marketers to include in mobile sites.


Similarly, letting users save items to their shopping baskets that can quickly be accessed later is also a smart feature to include.

Finally, location and context need to be prominent features on any mobile commerce site.

Not only does mobile help drive online commerce, it also increases foot traffic and in-store ROI for many retailers.

Although there is a growing percentage of consumers wanting to buy via mobile, there are still groups of consumers who are not comfortable transacting from their handsets.

Additionally, mobile users are most likely on the go and


looking for instant information.

Therefore, including features such as store locators and click-to-call functionality is crucial for retailers and marketers looking to tie their mobile initiatives to a multichannel strategy.

“Both ecommerce and mobile commerce can be browsing-oriented,” Mr. DiMarco said.

“However, more often than not, mobile users are already informed and ready to buy,” he said.

“The smaller screen does not offer nearly as much real estate to get distracted while making purchases, so a mobile commerce experience is generally much more streamlined from intent to actual execution.”

The effect of HTML5 on mobile strategyBy Chantal Tode

Already, some of the biggest brands are leveraging HTML5 and the technology is expected to be used for the majority of Web sites and apps soon. The reason for the technology’s growing popularity is the many benefits it provides, such as lowering development costs, being able to easily distribute content across multiple devices and offering a more app-like user experience through the browser.

“Considering the heavy focus United States retailers and merchants place on mobile Web experiences versus native apps, HTML5 is playing a significant role in their mobile strategies,” said Chris Dean, director of product

F or retailers looking to reach a wide swath of existing customers and prospects, HTML5 holds a lot of promise and is quickly gaining steam.

marketing at Kony, Orlando, FL.

“It’s beyond the testing phase and well into deployment,” he said. “Retailers are embracing HTML5 features and functionality as fast as they can in order to reach customers across all mobile platforms and operating systems as efficiently and cost-effectively as possible.”

User experience is keyAccording to data from Uberflip, 48 percent of developers are already using HTML5, and by 2015, 80 percent of all mobile apps will be based wholly or in part on HTML5.

This shows that retailers need to incorporate HTML5 in their mobile strategy if they have not done so already.

For example, specialty retailer PacSun recently introduced an HTML5 lifestyle-based site that will be updated seasonally to coordinate the brand’s marketing efforts.

ShopNBC is another retailer which has invested in HTML5.

HTML5 enables brands to create mobile Web sites that have some of the same functionality as apps as well as apps that can be deployed across a variety of devices. However, it is still important to keep user experience in mind when embarking on an HTML5 strategy.

Optimization is key when it comes to offering a user-friendly HTML5 experience across all devices, and especially with tablets and smartphones.

While the majority of Internet traffic from mobile devices comes from iOS devices, retailers still need to be sure they are providing an optimal experience for all prospective buyers.

The risk is simply too great of not doing so, with prospective customers who encounter a less-than-optimal brand experience in mobile likely to take their business elsewhere.

“The experience must be optimal for all prospective


buyers, regardless of their device preference,” Mr. Dean said.

“Don’t forget, the look and design must be appropriate per device – an experience designed for a smartphone will not look as good on a tablet unless specifically designed to function across all platforms and devices,” he said.

“And for the 50 percent of U.S. mobile phone users who still have feature phones, retailers must ensure an appropriate and graceful fallback to earlier, non-HTML5 legacy mobile Web technologies.”

Keeping currentHTML5 can be an important strategy for retailers because it can make it easy to update content.

“Mobile Web enables retailers to more easily update their offerings and, importantly, leverage existing Web development resources,” Mr. Dean said.

“Employing HTML5 thus enables retailers to take advantage of this key feature of mobile Web, while still providing users with a more native-like and user-friendly experience than prior HTML versions permitted,” he said.

HTML5 can also help retailers deal with issues such as encouraging consumers to come back to their mobile offerings again and again.

This is important because after investing the money to develop an app, many brands discover they have a hard time encouraging customers to download the app and use it repeatedly.

By incorporating some of the neat features possible with HTML5, retailers can see a better return on their investment.

“While many retailers struggle with creating a sticky native mobile application that users will both download and then revisit, HTML5 will help solve this problem through its rich, native-like features and functionality that enhance user-experience,” Mr. Dean said.

“These include easy updates, search, discover and transact capabilities, location-based features and real-time promotions - as well as local storage capabilities for both app and data elements which are slow-moving and help in a faster user experience,” he said.


5 in-app metrics you are not measuring, but should beBy Raj Aggarwal

While basic user and purchase information provides a high-level look at the app itself, these deeper insights can power its evolution.

Customer lifetime valueIn addition to tracking what product and category a user is buying, the path by which they got to the purchase

A s your mobile application presence moves from a nice-to-have to a core business driver in 2012, the corresponding analytics to measure this pres-

ence need to follow suit.

Additionally, as companies look to drive their mobile strategies with data, it is imperative they focus on highly actionable and valuable in-app metrics.

screen and other sales-related details, you keep a running total of a us-er’s total purchases. This will give you a window into your top shoppers’ behavior and how big the pipeline of future top customers is.

It is a quick and easy way to pinpoint what user segments hold the high-est value and are worth spending your advertis-ing budget on.


Monthly per user metricsWhile app metrics like total users and total sessions are valuable, the aver-age per-user engagement is a truer indicator of the health of your app.

These are a good starting point for any app report, and can also be used as indicators of how your users like or dislike a change in navigation or layout.

When is a user’s first conversion/purchase?This is a deep-dive metric that might require a little work but gives valuable insights into indi-vidual user behavior.

Tracking the number of sessions, item views or days between the av-erage user downloading your app and making his first purchase can provide valuable forecasting data and allow you to not only place an ROI value on an individual user acquisition but also a timeframe in

Raj Aggarwal


which they will reach that value.

This approach can also be used to determine the number of searches, items viewed, items placed in cart or other funnel-based event before a purchase.

This is useful for instrumenting logic to place special offers where they will be most effective at stimulating a purchase.

Time spent on product view screenTime on a screen can be a difficult metric to get right: either you give up granularity for ease of viewing in a dashboard, or you give up flexibility in deep data dives.

The solution is to capture both a raw and bucketed value count for the seconds on a page.

With the raw data you can see exactly how long do peo-ple spend looking at certain items on their mobile phone before buying. Short view times could indicate impulsive shoppers or those who know what they want prior to launching the app.

Bucketed data is a perfect app-wide metric to be viewed in your analytics provider’s graphical dashboard.

It is easier to read and follow the overall trend of how long users stay on an item before making decision on buying it or not.

User SegmentationNot all your users are alike so marketers should sepa-rate them into categories that will make it easier to evaluate patterns. Fortunately, there are multiple actions in your app that provide a glimpse of what kind of users they may be.

One of the simplest distinctions is to segment us-ers who have bought an item compared to those who have not. Once you have those two groups identified you can begin to examine the differences in users’ actions across your app to see how to make the browsers more like the buyers.

Whatever categories end up being applicable in your specific case, it is important to have a well-defined set of actions that define a user in a certain seg-ment, limit overlaps and limit ease of crossing back and forth.

Raj Aggarwal is CEO of Localytics, Cambridge, MA. Reach him at [email protected].

mailto:raj%40localytics.com?subject=

For 2013, multichannel retailers should implement lo-cation-based marketing and analytics in their mobile strategy through their own branded rich mobile app to better understand and engage with consumers like never before.

To fully engage with consumers in-store through their own branded rich apps, retailers should:

Create geofences around physical store locations and other points of interest. A geofence is a virtual bound-ary that can be placed around specific locations, allow-ing brands to effectively identify and communicate with consumers nearby and within those geofenced locations through the consumers’ pre-downloaded mobile app.

Own the in-store customer experience via location-aware branded appBy Dan Lowden

Eighty-seven percent of all United States retailers have some kind of mobile capabil-ity, whether it is a store lo-cator and product search functions or a full mobile- optimized site.

The trend for commerce in-tegration into mobile is on the rise.

S ince mobile technology was introduced to the re-tail industry a few years ago, it has generously re-shaped the way that retailers and brands interact

with consumers.

Fifty-five percent of retailers have a commerce func-tion as part of their rich, unique mobile shopping ex-perience through their branded mobile-optimized site and rich app that enables consumers to easily and conveniently search, browse and buy anytime and any-where. However, this is no longer enough in today’s retail marketplace.

To combat wandering consumer attention, retailers should align their in-store and mobile commerce strate-gies to have more control over the customer experience.

The nation’s most innovative retailers are integrating location-based technology into branded rich mobile apps so they can develop a deeper relationship with customers by engaging with them in a more relevant, personal way.

Location awareness is completely transforming the rela-tionship between brands and consumers.

For the first time ever, brands have the power to en-gage directly with their customers based on where they are – when at home, when mobile and especially in the store – and it is all available through their own branded rich app.


Dan Lowden


Geofences can vary in size and shape so brands can geo-fence relevant locations of interest including a store, park, airport, sports stadium or even larger geographic areas such as a neighborhood, city or ZIP code.

Engage with the consumer when they breach a geofence to drive them to the store, and encourage him or her to check-in.

Once the consumer is inside of the geofenced area, brands should drive traffic to the store by sending a promotional offer or alert her to a flash sale or event through a push notification in the app.

Retailers should place a sign in the entrance of retail stores reminding shoppers to download the app and check-in to receive special offers and messages.

Offers should be stored in an offer wallet inside the app for easy access when checking out or during another store visit.

Enable bar code scanning in the rich app. Bar code scanning empowers shoppers with detailed information about specific products so that they can make more edu-cated purchase decisions.

As customers walk through the store, they can scan product UPC codes to access the retailer’s product catalog and view product descriptions, ratings and re-views, add to wish list and registry and even see a video demonstration.

When a scan occurs, the retailer can send a promotional offer or recommend other products that could be consid-ered for purchase to help cross selling. Place QR codes to highlight featured promotions in the store and have a QR code reader in the app. QR code scanning gives shoppers the ability to instantly see offers and messages on the featured products.

Scanning QR codes not only generates insights into prod-uct preferences, but also creates an opportunity to serve or highlight relevant and time-sensitive promotions.

Engage with consumers while inside and exiting the

store. While inside the store, send the shopper messages through the app about in-store events, time-sensitive deals, product launches or anything that the retailer be-lieves is relevant and valuable to the consumer.

Once the consumer exits the store, send the shopper a store exit message. An exit message can include an in-vitation to a store survey, a loyalty promotion or even a simple “thank you” for visiting the store.

By developing a rich mobile app with location-aware technology, marketing, analytics and commerce, brands can effectively drive consumers to the store and en-gage with them while there to not only serve them better, but also gain a deeper understanding of buyer preferences and habits, uncover conversion rates for products purchased in the retail store, and influence buying decisions.

Dan Lowden is vice president of marketing at Digby, Austin, TX. Reach him at [email protected].

mailto:dlowden%40digby.com?subject=

Case studies on mobile campaigns and programs during retail salesBy Lauren Johnson

So far, marketers have tested a variety of different programs across all mobile channels.

Here are some examples of programs that are working:

American Express pilots mobile offers service to deliver relevant, personalized dealsAmerican Express rolled out a mobile offers service that recommends and ranks relevant merchant deals based on a cardmember’s spending history and location.

The service was piloted through the My Offers feature

When it comes to mobile commerce, the No. 1 goal for retailers and brands is to implement programs that ultimately increase ROI with

measurable results.

on the American Express iPhone app. During the pilot, consumers mostly in Los Angeles and New York received offers from merchants such as Baskin-Robbins and Dunkin’ Donuts.

“We are committed to bringing cardmembers and merchants closer together across social and mobile channels where they are already engaged,” said Luke Gebb, vice president of global network marketing at American Express, New York.

“Our mobile offer engine was created to cut through the clutter of a crowded deal marketplace, to deliver highly relevant, personalized offers to cardmembers,” he said.

EBay leverages daily deals in interactive iAd campaignEBay launched an iAd campaign that curated daily deals and encouraged consumers to download the company’s iPhone app to purchase them.

EBay claimed that the campaign marked the first time Apple has allowed an advertiser to deep-link to a specific location in-app. The iAd campaign also helped the company drive downloads for its iPhone app.

“The strategy in launching eBay’s first iAd for Brand was two-fold,” said Steve Yankovich, vice president of eBay Mobile, San Jose, CA.

“First, to leverage daily deals as a means to drive downloads and, second, to encourage engagement with our current users,” he said.

Staples rolls out tablet-optimized experienceEarlier this year, office supplies retailer Staples launched a tablet-optimized site to provide a rich browser-based experience for shoppers.

Staples reported that its traffic from tablet devices grew throughout last year at a faster pace than smartphones. With the penetration of tablets growing and shopping proving to be a popular activity on tablets, more retailers are considering a tablet strategy, but Staples is one of the first to actually introduce a tablet experience for


its customers.

“When we were looking at other retailers and non-retailers to see what others are doing, we realized that this is a brand new medium from a retailer perspective,” said Prat Vemana, director of mobile strategy at Staples, Framingham, MA.

“We did extensive customer research trying to understand how our customers are using tablets in terms of shopping and that lead us into the thinking that we should try to provide a new kind of experience leveraging the features that the medium offers,” he said.

“We are bringing significant value and leveraging the medium and what it offers.”

Sephora bolsters mobile sales via promotionSephora introduced a campaign that helped spread the word out about its revamped mobile site, Web site and iPhone app, as well as let consumers vie for prizes by checking out the company’s new shopping tools.

Sephora’s promotion lasted 15 days and encouraged consumers to visit the company’s Web site for a chance to win daily prizes.

Sephora promoted the initiative through mobile ads that ran within the TV Guide iPhone app, as well as via its Facebook page.

“At Sephora, we are so excited about the launch of our new site that we wanted to shout it from the mountaintops,” said Bridget Dolan, vice president of interactive media at Sephora, San Francisco.

“Most importantly, we had to break through to get women to try the new site,” she said.

“Creating the 15 Days of Beauty Thrills with once-in-a-lifetime prizes and experiences from our top brands helps to drive women to our new site to see what all of the excitement is about and experience it firsthand.”

Bloomingdale’s enhances shopping experience via mobile appDepartment store chain Bloomingdale’s rolled out

iPhone and Android apps to let fashion-savvy consumers shop the latest trends, as well as check prices and read product reviews.

Via the app, consumers can also locate the nearest location to learn more about in-store events and special offers. The app is available for free download in Apple’s App Store and Google Play.

“The launch of our Bloomingdale’s Big Brown Bag mobile application for iPhone and Android is part of our commitment to enhancing our customer’s omnichannel shopping experience,” said Anne Bridges, senior vice president of site merchandising, Internet productions and planning at Bloomingdales.com, New York.

“We’re now inviting couples to use their phones – instead of a gun – to scan items to add to their registry,” she said.



Rue La La drives 25pc increase in user sessions with push notificationsFlash sales site Rue La La has steadily increased its use of push notifications over the past year and is finding that the strategy has helped it drive an increase in user sessions.

The push notifications were designed to remind shoppers about the daily flash sales held by Rue La La at 11 a.m. every morning.

The online retailer first began using push notifications in January 2011 and ramped up the number of notifications sent during the holiday season.

“We see a lot of benefit and promise for our customers in Urban Airship’s set of tools,” said Ashley Harmeling, marketing director at Rue La La, Boston.

Case-Mate aims to increase sales via commerce-enabled mobile siteMobile accessories company Case-Mate lets users buy gadgets for their handsets via a commerce-enabled mobile site.

Case-Mate rolled out the mobile site after seeing approximately 20 percent of traffic coming from smartphones and tablets. Case-Mate worked with commerce service ShopVisible on the initiative.

“Our goal was to make the site mobile-friendly and enhance the shopping experience,” said Adam Roe, vice president of ecommerce and custom cases at Case-Mate, Tucker, GA.

Walmart, Procter & Gamble drive mobile shopping with QR codesWalmart and Procter & Gamble are placing QR codes on bus shelters and trucks to encourage on-the-go consumers to scan and instantly buy products from brands such as Tide, Pampers and Gillette.

The initiative targeted urban shoppers in Chicago and New York.

“QR codes are one of those things that for us is really big,” said Chad Brizendine, brand manager of Walmart Grooming at Procter & Gamble, Fayetteville, AR.

Rockport uses outdoor promotion, QR codes to drive salesAdidas’ Rockport.com ran a live promotion in New York that used mobile bar codes to let consumers buy shoes via their handsets.

Rockport used a live demonstration to launch the TruWALK line of running shoes. Rockport worked with Unbound Commerce on its mobile initiatives.

“This TruWALKzero launch event generated a lot of buzz, but Rockport took this a step further and tied in a commerce-enabled, linked call-to-action, so success could be judged in part by incremental sales lift,” said Wilson Kerr, vice president of business development and sales at Unbound Commerce, Boston.

Mobile coupons: The tipping point of mobile commerceBy Shuli Lowy

Mobile is rapidly becoming a criti-cal component in any retail strat-egy, with research showing that 70 percent of smartphone owners use their phone to help with in-store purchasing decisions, and 26 per-cent buying directly via the mobile Web or mobile applications.

Marketers are also realizing that

T here is something magical about getting a good deal which drives consumers of all ethnic, social, and financial dispositions to purchase.

mobile is now one of the most important channels they have for consumer communication and promotion, and that a well designed and effectively delivered mobile coupon can be the factor that leads the consumer to purchase your product rather than your competitor’s.

There are four primary methods with which to promote and deliver mobile coupons to your customers: mobile banner ads, mobile applications, QR codes and SMS.

Each of these mediums engages the audience in an en-tirely different manner and therefore carries distinctly different features.

Promoting a coupon or discount via a mobile banner ad is a great way to reach new customers and drive them to purchase your product.

Furthermore, the sophisticated targeting techniques available allow vendors to zero-in on their niche clien-tele and ensure their ads are reaching the right people. Mobile ads can be targeted in response to specific keyword searches, within hyperlocal geofences, on specific phone and app types, at particular times of the day. Having a detailed understanding of your target audience is enormously helpful in ensuring a well tar-geted and successful campaign.

Mobile coupons also present a golden opportunity when it comes to mobile apps. PAGE 39 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

It is estimated that over a quarter of all downloaded apps are opened once and then never again.

Considering the billions of dollars that are invested in building mobile apps, this is disappointing for many businesses that have invested time and money and see very little return.

The primary issue causing this crisis is that many mobile apps do not provide sufficient value to the end user, which is where mobile coupons come in.

Using push notifications, brands can send coupons or notify consumers about the latest promotions as an in-centive to drive the end users back into the app.

QR codes are a phenomenal way to promote and dis-tribute mobile coupons as well. The primary strength of a QR code is that it requires initiative from the con-sumer standpoint and leads to some unknown surprise – both aspects which create a deeper and more engaging brand experience.

However, a QR code is unlikely to be used unless it is at-

Shuli Lowy


tached to some sort of call-to-action.

For example, an ad with a QR code and a caption which reads “Scan for an exclusive promotion” is a great way to incentivize a passerby to engage with your brand and subsequently buy your product.

Finally, SMS is one of the most effective methods of distributing mobile coupons due to the fact that non-smartphone users can also participate.

In addition to reaching a much broader base, SMS mes-sages have been proven to reach people effectively and immediately, with an estimated 97 percent of SMS mes-sages being opened and read.

SMS programs are also substantially cheaper to run than banner ad campaigns or mobile apps and have histori-cally had high redemption rates when it comes to mo-bile coupons. While SMS lacks the full graphic display

capabilities of the other channels and is considered a relatively old technology, it still remains one of the most effective and oft-used forms of distributing mobile cou-pons.

As we continue to watch the growth of mobile com-merce, we can expect a tremendous growth in the distri-bution and usage of mobile coupons in the coming years.

Marketers designing campaigns involving mobile cou-pons must first begin with educating themselves about the distribution options available and gain a deeper un-derstanding of the target demographic, the nature of the brand involved, and the campaign goals.

Regardless of the method used, mobile coupons are un-doubtedly a crucial element to driving mcommerce.

Shuli Lowy is marketing and client services manager at Ping Mobile. Reach her at [email protected].

mailto:shuli.lowy%40pingmobile.com?subject=

The allure of mobile couponsBy Rimma Kats

Currently, marketers such as retailers and grocery stores are not incorporating mobile coupons in their day-to-day initiatives. However, by not doing so, companies are missing on a big opportunity.

“Simply put, mobile is the future, not just for coupons, and not just for payments or commerce, but for so many aspects of daily life,” said Dave Kaminsky, an analyst at Mercator Advisory Group.

“The capabilities offered by smartphones combined with their portability enable a level of convenience that most consumers are attracted to,” he said.

“The ability to search for, obtain, store and use coupons, all via the mobile device, is just one part of this massive migration towards the mobile platform.”

New innovationsMobile coupons presents a big opportunity for marketers to create incentives to drive user engagement.

Last year, Walgreens brought mobile coupons to smart-phone users as part of the company’s bigger push to en-hance the shopping experience via its mobile apps.

Cashiers can scan the mobile coupon straight from a user’s smartphone so there is no need to clip or print coupons.

Additionally, an initiative such as this helps incentivize consumers, as well as drive in-store traffic.

“Walgreens is taking steps to innovate on the mobile channel, both with mobile coupons and in other aspects of their business,” Mr. Kaminsky said.

“Walgreens enables customers with smartphones to re-fill their prescriptions by scanning the bar code on their medication bottle, and those without smartphones to do so via SMS,” he said.

T he future of coupons is mobile and marketers must incorporate the technology into their efforts to drive consumer engagement.

“In terms of couponing, Walgreens was the first retail-er to offer scannable POS coupons to customers who checked into their stores on foursquare.”

New beginningsAccording to Mr. Kaminsky, the next big step for mobile coupons is geolocation.

While check-in based coupons, such as those from four-square, have been available for years, retailers are be-ginning to engage programs that can match consum-ers’ interests and preferences with their location at any given time to provide them with coupons for merchants in their vicinity that would appeal to them specifically.More marketers could follow in the footsteps of Wal-greens and roll out their own mobile coupon plans.

“Our customers already bring their coupons into the store,” said Rich Lesperance, director of marketing at Walgreens. “It’s natural to take the next step and allow them to recognize these savings them from their smart-phones, to give them anywhere, anytime access.

“We have a great deal of interest from our customers and partners,” he said. “We are still experimenting with the number of offers, but so far the feedback has exceeded our expectations. “I think there will be more content and lots of options for customers to access it. The prize will go to the simplest experience.”


Consumers no longer quietly form interests and opin-ions about the products they have purchased. They now share these impressions with a broad network of friends and family.

As a consequence, demographics take a backseat to consumer interests in the modern hierarchy of marketing data.

Information flows far more efficiently over these new lines of transmission, and while brands can seek to drive online customers into stores, the tools within the social realm do not travel with the consumer to the final point-of-sale.

This is mobile’s chance to shine. As consumers move from online discovery to offline redemption, the technology in their pockets and purses should seamlessly support the process. We are already seeing attempts at exploiting this opportunity.

An exciting new technology called near-field com-munications outfits smartphones with chips that communicate electronically with retail point-of-sale terminals. NFC holds promise, but a large num-ber of stakeholders will need to adjust their business models and payment relationships, which makes the timing uncertain.

Meanwhile several innovative companies have deliv-ered services to their customers within a closed-loop model in which they control both the product and the retail infrastructure.

Mobile coupons: A little less conversation, a little more action By Jeffrey Sampson

That might have been true 50 years ago, but today pro-motions and deals are the primary strategy for consumer brands to increase revenue. The paper coupon has been the granddaddy of deal delivery systems for brands since 1888. But the times, they are a-changing.

Consumers now have iPhone devices that make them savvy and connected, added to a stubborn economic downturn that motivates them to pursue deals ruthless-ly. They encounter brands on a battlefield we call retail, where information flows poorly – or not at all – through the value chain and market inefficiencies drive prices up and profits down.

The world needs a modern deal delivery system – a Coupon 2.0.

The last three years were defined by daily deal email marketers, but they are not for everyone. These options may work well for dry cleaners, restaurants and mas-sage therapists, but they are a poor fit for food or bever-age, health and beauty products, consumer electronics and other items that we purchase every day and mostly through local retail stores.

The game-changer is social media, where consumers join together in unfathomable numbers – one billion on Facebook alone. Most major brands have recognized the promise of engaging with their consumers directly and spent the last 15 years building their brand presence on the Internet.

Social technologies are now deeply woven into the fabric of our lives, online communities have achieved critical mass, and monetization tools now allow brands to achieve a return on their social investment.

E ven Elvis knew that at some point talk is cheap. As consumers we are taught from birth to look for discounts and deals. After all, only suckers pay full

The goal today is revenue rather than awareness.

Social media fundamentally changed the relationship between consumers and brands. Facebook’s Top 25 consumer brands have more than 330 million fans, while near-ly 500 brands have more than 1 million fans.


price. As marketers, though, we are taught to offer dis-counts only as a means to acquire new customers, on the theory that loyal customers do not require discounts and will pay full price even in a competitive market.

Jeffrey Sampson


Starbucks, for instance, uses a mobile application and 2D bar code combination to enable customers to link their stored value cards to their smartphones and leave their cash and credit cards at home.

Likewise, Delta and other airlines now issue boarding passes to passengers via mobile apps, removing friction from the ticketing and boarding process.

Data continuity makes this possible.

Today we have a unique opportunity to redefine the way that consumers shop.

For an increasing number of consumers, their smart-phone is synonymous with their wallet, and is a place that brands should want to be welcomed.

This trend favors personalized mobile experiences over

broad-focus mobile advertising.

Simplicity and utility delight users, while game mechan-ics reinforce their loyalty with rewards.

Social networks are filling with potential brand ambassa-dors who exert influence through word of mouth. These fans are a brand’s best customers, but the challenge re-mains to convert their conversations into consumption.

Listen to Elvis. Delight your customers by connecting so-cial behavior to mobile coupons for a little more action. Explore, be creative, and repeat those investments that deliver value. It is now or never. Do not be cruel to your fans. Return their burning love with mobile coupons or you may end up in heartbreak hotel.

Jeffrey Sampson is CEO of Upside Commerce Inc., Seattle. Reach him at [email protected].

mailto:%20jeff%40upsidecommerce.com?subject=

What types of coupons work best for mobile commerce?By Lauren Johnson

From comparison-shopping to learning about products, consumers are willing to receive mobile coupons via a variety of mobile channels such as SMS, applications and mobile bar codes. However, some mobile experts say that the best type of mobile coupons are issued and redeemed by merchants and retailers themselves, which helps close the loop on the initiative and ultimately drive ROI.

“There’s no real distribution control for these local coupons, and they operate on a closed-loop system, which works well with current mobile devices,” said Steve Horowitz, chief technology officer of Coupons.com, Mountain View, CA.

“On a more limited scale, third party-issued coupons that link with loyalty cards can also work well in cases where retailers have the loyalty card infrastructure,” he said. “Otherwise, there are still limitations at the point-of-sale in terms of scanning and redemption technology that need to be solved for mobile coupons to see even greater adoption.”

Save on mobileIn the past year, brands, merchants and retailers have been testing different mobile coupon initiatives to see what sticks with consumers.

For example, Whole Foods Market recently launched a mobile app with its nonprofit work with Whole Planet Foundation to reward users with in-store coupons for completing tasks inside the app.

In order to redeem the coupon, users were sent an email with a bar code that could be printed out.

Part of the challenge of rolling out mobile coupon programs is making sure that all employees and stores are equipped to handle the redemption process. For some brands, the best way to overcome this is by deploying

Mobile coupons have changed the ways that con-sumers expect to receive deals and offers. How-ever, the number of options available to market-

mobile point-of-sale systems that scan a bar code on a user’s mobile device. However, this method can be expensive and is not the best fit for some small to medium-sized merchants.

In other cases, simply sending out a code that consumers can verbally tell store employees while checking out is the best way to drive a ROI from a mobile coupon, much in the same way that traditional print coupons work.

Mobile loyaltyOne of the main incentives for marketers to use mobile coupons is to help build a strong loyalty program and CRM efforts.

Although smartphone ownership continues to grow, many marketers are still relying on SMS to reach the highest number of mobile owners.


ers to deliver coupons can be overwhelming.

In addition to working for both smartphones and feature phones, SMS also gives marketers a way to link their mobile coupon initiatives directly into CRM efforts.

By promising users regular mobile coupons, brands can build a database that also gives consumers a clear value for opting in to a SMS program.

Other examples of mobile coupon programs include foursquare partnerships that reward consumers for checking in to a particular store.

When it comes to mobile bar codes, many marketers doubt the effectiveness in driving revenue from the technology.

However, if the technology is actively promoted with clear calls-to-action that show consumers how to scan a QR code, mobile bar codes can be an effective way to give users an incentive for scanning.


“Now that we’ve reached a tipping point with over 50 percent of Americans owning a smartphone, we increasingly see it as the primary shopping tool for activities including list creation and discovery of products and relevant coupons and offers,” Mr. Horowitz said.

“That trend will continue to increase as more consumers rely on their phone to learn about savings, local inventory for products and reminders about the coupons they have available and their expiration dates,” he said.

“As the number of people with smartphones continues to grow, we’ll see retail infrastructure and POS systems go through an upgrade cycle so that consumers can have a pure digital experience that provides seamless integration between their phone and the retailer.”

Case studies on mobile coupon programsBy Chantal Tode

Despite the challenges, brands and retailers are flocking to mobile coupons as a way to drive loyalty and incremental sales.

The benefits can be worth the effort, with mobile coupon redemption rates significantly higher for some marketers compared with other delivery mechanisms, such as email.

“Unlike paper coupons, which are taken from the user when they are redeemed to prevent overuse and fraud, there is no analogy with mobile coupons,” said David Wachs, senior vice president of mobile and general manager of Cellit at ePrize Mobile Solutions, Pleasant Ridge, MI.

“As such, all mobile coupons require unique coupon codes, which are looked up in real time at the point of sale,” he said. “However, there is no common set of tools for coupon redemption at the POS, and as such implementing a program may seem daunting.”

Mobile coupons at workExamples from several marketers show that many are figuring out ways to overcome the challenges in mobile couponing to deliver compelling offers to customers with strong results.

For example, A&W quick-service restaurants drove 20 percent in revenue this spring via a mobile coupon campaign that offered recipients a free burger. The initial offer for a free burger was advertised on TV and radio as well as via signage throughout the 126 participating locations and urged consumers to text the keyword “BURGER” to the short code 70626 to receive a coupon for a free burger.

Recipients needed to show their coupon code to a cashier

Smartphones have the potental to be the ultimate coupon delivery and redemption tool, ostensibly giv-ing consumers a way to easily store and use coupons

in order to receive their free Papa Burger.

The coupons are a unique, one-time use coupon. In order to track coupon redemptions without the need for a point-of-sale integration, mobile and traditional Web sites were created for A&W employees by 3Seventy and AFA Krause where they could enter the redemption code on each coupon at the register.

In another example, Walgreens recently teamed up with foursquare to roll out a mobile coupon program that lets consumers save money on products when they check-in to any location nationwide.

Consumers can check-in to any Walgreens location through foursquare using an iPhone, Android or BlackBerry device.

Users will then get a unique scannable coupon, which


while enabling marketers to track redemption. However, retailers face challenges, including fraud prevention and finding the best way to track redemption.

they can redeem at the point-of-sale.

Whole Foods Market is also getting into mobile coupons by rewarding shoppers who practice an ecofriendly lifestyle. Shoppers can earn coupons from companies such as Organic Valley, Stonyfield and Nature’s Path by completing tasks via an iPhone application designed to help end world poverty through microcredits.

The right ecosystemMobile coupons are an increasingly important strategy for retailers as consumers use their mobile device to comparison shop in-store.

By delivering a mobile coupon to smartphone shoppers, retailers have an opportunity to encourage consumers to purchase from them instead of going elsewhere. According to a study earlier this year from BrandSpark


International, 54 percent of smartphone users are interested in receiving mobile coupons.

Upfront work is required to build a strong mobile couponing ecosystem and brands should focus on choosing a mechanism that works for their workflow and their customers.

“It is not just about slapping a bar code on a text message, as many people think,” Mr. Wachs said. “What is on the screen is just one step in the mobile couponing process.

“Many mobile couponing clients ePrize works with see redemption rates as high as 20 percent or more, and some claim their redemption rates from mobile coupons are eight times greater than their emailed coupons,” he said.

vices for location-based information such as restaurant recommendations or driving directions in 2011, it is no secret that these technologies could transform the consumer experience.

While there are numerous consumer benefits that result when retailers leverage proximity and presence market-ing, below are a few that, when used properly, can go a long way in establishing loyalty and trust:

1. Incentives. Giving consumers incentives such as cou-pons or special offers keeps them engaged with brands.

When retailers know exactly where their customers are, they can send coupons or special offers right before they

Proximity and presence in retail mobile marketing: three consumer benefits By Jack Philbin

Location-based marketing allows brands to engage with consum-ers anytime, anywhere, providing retailers with opportunities to reach them at – or just moments before – the point-of-purchase.

Because of mobile’s personal power and immediacy, it pro-vides unique and effective ways to deploy timely and time-sensi-

L ocation, location, location has always been real es-tate’s motto, but today, it is especially important for retailers that are striving for true loyalty from their

customers via mobile.

tive messages and incentives.

In addition, proximity and presence technologies allow brands to significantly enhance customers’ experiences by personalizing the information and incentives they provide based on their location.

Consumers want information that is relevant to their lives – when they need it.

With today’s connected consumers, loyalty is incumbent upon reaching consumers at the perfect moment – not five minutes after they have left the store or just after they made a purchase, which is when most retailers to-day start tracking customers.

It is when they are in stores and thinking about making a purchase that matters.

Check-in-type applications such as foursquare have opened many retailers’ eyes to the possibilities of loca-tion-based marketing, but these only scratch the surface.

Today’s proximity solutions create a whole new level of direct marketing opportunities for retailers.

With an estimated 55 percent of smartphone own-ers, according to Pew Research, having used their de-PAGE 48 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

Jack Philbin

make purchases or are en route to shopping – both sce-narios affect consumers’ purchasing decisions and help establish loyalty with brands.

Consumers enjoy rewards, and it is up to brands to make their customers feel special in order to pique their inter-est in engaging further in conversations.

2. Product knowledge. Shoppers are not just carrying bags in their hands from store to store anymore – they are shopping with their mobile phones.

If brands know customers are seeking certain items – based on previous conversations with them, or what they have learned from past purchases, they can send them more information about relevant products, entic-ing them to buy. PAGE 49 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

For example, sending a product review allows con-sumers to quickly access information via their mo-bile phones in order to make them feel confident in their purchase.

By having the information available at their fingertips, they can be sure they are getting exactly what they want from their desired products.

3. Reducing time and distance. If consumers allow re-tailers access to their location, they can provide them with helpful information and deals when they are lit-erally right near stores, reducing the time and distance they need to go to find their desired purchases.

This helps to combat “showrooming,” when consumers comparison-shop from their mobile devices while they are in store.

Today, retailers are only scratching the surface of what is available to reach consumers where they are and when they need it.

As marketers and retailers continue to become savvier, proximity technologies will continue to advance.

This will make consumers’ shopping experiences even more comprehensive, unique and specific to their needs.

Jack Philbin is co-founder and president/CEO of Vibes, a Chicago-based mobile marketing and technology com-pany. Reach him at [email protected].

mailto:jack.philbin%40vibes.com?subject=

How to make a mobile commerce site transactionalBy Lauren Johnson

Making a mobile site transactional is about more than just loading it with commerce options. Instead, user experience needs to be a driving force on how to include commerce aspects.

“[Commerce] is both an opportunity and a challenge for retailers,” said Kirby Wadsworth, chief marketing officer of Limelight Networks, Tempe, AZ.

“Mobile adds time and place relevance, encouraging loyalty and urgency, but also makes price-comparisons fluid and transparent,” he said. “The winners will be those savvy marketers who balance all four P’s – price, place, product and promotion with a new fifth P – presence.”

Mobile-first mentalityOver the past year, there has been an uptick in the number of consumers who comparison shop via their devices. For a mobile commerce site to be transactional, it must give users a clear, upfront value for shopping via their handset versus a desktop.

Additionally, keeping the experience simple and streamlined is crucial in holding users’ attentions when they are on their devices.

According to a recent study conducted by Limelight Networks, 88 percent of consumers said that page load time and detailed product images were two top features that consumers said were most important when accessing content via mobile. Although consumers are browsing on mobile, they also want quick access to content.

Promote on mobileHaving a mobile commerce site is gaining traction for marketers who want to stay ahead of the curve. However, many brands and retailers still view mobile as an item on a checklist to a comprehensive digital strategy. Once the site is launched, it is not updated or promoted.

C racking the nut on how to drive ROI on a mobile commerce site is undoubtedly a challenge. Howev-er, more marketers are beginning to think mobile-

first about their Web initiatives that generate sales.

Even though simply having a mobile presence is a step in the right direction, mobile requires brands to constantly test and try new things.

In addition to constantly updating a company’s mobile efforts, a mobile commerce site is also more likely to be transactional if consumers are encouraged to use it.

Promotion is a big part of any mobile marketing initiative, but is especially important for commerce if marketers want to attach their efforts with an ROI.

Marketing a mobile commerce Web site should not just be promoted online, though. Equipping print, television and in-store can be also beneficial and points to the use of mobile in a multichannel experience.

“Retailers are experimenting with creative ways to engage the consumer,” Mr. Wadsworth said.

“The lesson here is that retailers must take a holistic view of the digital and physical presence they are projecting in the marketplace and have a better understanding of how consumers are interacting with their digital outlets.”


Billing options on a mobile commerce siteBy Chantal Tode

The growth in mobile commerce suggests that consumers are getting over their concerns about whether or not mobile payments are secure. While this is good news, retailers still face significant challenges offering a simple shopping experience given the small screen size of smartphones.

“The purchasing experience is the most important element of a mobile commerce site,” said Anuj Nayar, director of communications for PayPal, San Jose, CA.

“Without an accessible, hassle-free sales process, merchants run the risk of their customers abandoning their shopping cart,” he said.

“Customers won’t visit or make additional purchases from a mobile site if they have a poor purchasing experience the first time they visit.”

Reducing cart abandonmentMobile’s smaller screen and keyboard can be cumbersome for consumers to use if they have to type in credit card and shipping information.

Merchants who leverage existing payment credentials, such as those from PayPal, may help in reducing cart abandonment since users can make a purchase with just a few clicks.

For example, Amazon has been very successful in mobile in part because all of a buyer’s shipping and payment information is already in the cloud and easily accessed, thereby reducing friction in the purchasing process and leading to greater sales. One-click is suited to mobile.

While alternative payment methods are growing, it is also important for retailers to offer a billing option that

While mobile commerce sales are growing they are still small compared to bricks-and-mortar overall sales. One way retailers can help drive

accepts major credit cards, as this is still the primary method of payment.

“It is important to have a comprehensive solution that accepts the major forms of payment,” said Drew Sievers, CEO of mFoundry, San Francisco.

“If it’s too niche or new, merchants will see significant cart abandonment,” he said.

Other considerations include ensuring that the payment scheme runs inline without losing context for the user.

“Spawning a new page with a different URL would send off alarm bells for many buyers,” Mr. Sievers said.


more volume from their commerce sites is by providing a quick and easy-to-use shopping experience, and a big part of the equation is offering the right billing options.

It is also important for retailers to ensure that they will be able to easily mine data from the billing options they choose. Transactional data plays a key role in a retailer’s ability to provide targeted marketing that can encourage repeat purchases as well as up-selling and cross-selling.

Having access to this data can also help retailers provide a more seamless experience across channels.

Leveraging dataWhichever mobile billing method is chosen, marketers need to make sure that they can leverage the data gained from that mobile purchase for future customer communications to encourage repeat purchases and ongoing brand loyalty, per Lindsay Woodworth, director of marketing and presales at SoundBite Communications, Bedford, MA.

“Retailers need a way to integrate mobile purchase data into the data profile for that customer in their overall CRM and loyalty programs,” she said. “The actual step-by-step experience may be different between online PAGE 52 Mobile Commerce Daily CLASSIC GUIDE TO MOBILE COMMERCE 2012

and mobile purchases, but it should appear seamless for the customer.

“Member log-ins, rewards points and past purchases should all be synchronized. Pricing should also be synchronized, unless it’s their strategy to offer lower prices online, in which case they can expect ‘mobile showrooming,’ where users browse in person but buy on mobile.”

While there are challenges in crafting a seamless mobile shopping experience, the effort is going to be worth it for many retailers given the significant potential for further growth in mobile.

PayPal alone expects its mobile payments transaction volume to reach $10 billion this year, while parent company eBay forecasts it will do $10 billion in mobile commerce sales this year. “Allowing customers to make purchases with ease, via a mobile site, puts merchants in a position to experience sizeable sales growth,” PayPal’s Mr. Nayar said.

How secure are mobile commerce transactions?By Chantal Tode

Security is an issue that should not be ignored when it comes to mobile commerce. Smartphone adoption is growing and all signs indicate mobile commerce will continue to become a bigger piece of the ecommerce pie, so the last thing retailers want to do is discourage mobile use because they did not take the necessary security measures.

“Security is definitely an issue,” said Scott Snyder, president of Mobiquity, Wellesley, MA. “According to a study from the Federal Reserve Report, 42 percent of consumers see security as the primary reason for not using mobile payments.

“But this is no different than ecommerce in the early stages before people got comfortable seeing https to offer up the credit card info online,” he said. “The key is to change the perception that using a mobile phone to pay is somehow less secure than a traditional credit card - which we know can be compromised or stolen easily.”

Mobile commerce threatsOne in three Americans have already made at least one purchase via their mobile device, per Mr. Snyder

Additionally, MasterCard has rolled out 350,000 NFC mobile payment terminals worldwide and consumers in Japan and Europe have been using mobile payments for everyday purchases for years without a major security incident.

While the growth in mobile payments is encouraging, there still have some highly visible security lapses. For example, a Russian hacker recently made the news by tricking Apple’s App Store to give him in-app purchases for free.

One of the big stumbling blocks to broader use of mobile devices to make purchases is concern over how secure their personal information is.

While consumers are concerned that others can easily steal their information when making a mobile commerce transaction, there steps that retailers can take to address these concerns.

There are other threats in mobile commerce as well.

“Transactions using the phone’s browser are susceptible to phishing attacks just as transactions on a PC browser,” Mr. Snyder said.

“Transactions using SMS are vulnerable to similar type of phishing attacks,” he said.

“The biggest threat is someone else trying to use a stolen phone or sniff a mobile payment transaction - like NFC


- from afar.”

Addressing critical concernsTo address these concerns, retailers should focus on three critical areas to begin with. The first area is authentication, or making sure the users are who they say they are.

The network/SIM can determine if the device is authentic, but to authenticate the user to the device, retailers can use two-factor authentication such as PIN/Password. However, this is not ideal since these can be compromised. Retailers can also use tokens, which require the user to enter another number or carry a separate device, or biometrics, such as a fingerprint, iris, face or palm.

Biometrics, while not widely used at the moment, may be wave of the future. Apple recently acquired mobile security firm AuthenTec and the expectation is that it will use the company’s fingerprint sensor technology to develop mobile payments authentication for the iPhone.The key to gaining consumer acceptance is making sure

that the authentication process is quick and easy to use.

“If the authentication process takes too much effort, then users will eventually bypass,” Mr. Snyder said. “Biometrics offer the lowest effort solution but are still relatively expensive for the average consumer.”

Retailers also need to focus on non-repudiation, or proof that the user made the transaction and cannot dispute it later. This can be addressed with certificates or digital signatures that show the user authorized the transaction.

One of the biggest issues for consumers is ensuring that their personal data is being kept confidential.

“Maybe the most critical piece which is ensuring sensitive data related to the user or the transaction is sufficiently protected,” Mr. Snyder said.

“End-to-end encryption should be used to protect data on the device, the connection/link - NFC and Bluetooth - and on the server,” he said.


The role of wireless carriers in mobile commerceBy Chantal Tode

One of the key strengths that wireless carriers offer in mobile commerce is a direct billing relationship with subscribers, a relationship smartphone makers and other players try to take advantage of through carrier billing. However, carriers typically charge a 30 percent cut for carrier billing, which is limiting their growth in mobile commerce.

“Operators need to consider reducing their fees and adding additional payment choices such as bank accounts, cards and alternative payment types for consumers,” said Shailendra Pandey, senior analyst for mobile content and applications at Informa Telecoms & Media, London.

“These, in turn, will bring more revenue opportunities for the operators by building upon existing billing relationships with consumers,” he said.

NFC too far offCarriers have been looking to near-field communications as one way to insert themselves into the mobile commerce ecosystem.

The Isis mobile wallet, which is a joint venture of AT&T, Verizon and T-Mobile, is supposed to be launching in two test cities this summer.

While wide-scale NFC is likely a few years off, mobile commerce continues to grow and carriers need to act sooner rather than later if they want to play a role here.

“By driving the adoption of mobile wallets and offering top-up, content purchases, money transfer, bill payment services and increasing subscribers’ comfort level with conducting such transactions, carriers can strengthen their position in the mcommerce value-chain,” Mr. Pandey said.

Over-the-top services and alternative payments threaten to cut wireless carriers out of a meaningful role in mobile commerce unless they take action,

“NFC services will require large upfront investment and take at least three to four years to reach critical mass of users and transactions,” Mr. Pandey said.

“Considering that the immediate short-term strategy of most carriers is to use mcommerce to increase customer stickiness, reduce churn and generate incremental


such as by reducing fees and offering solutions.

revenues, it makes sense to put more focus on utilizing existing top-up and billing systems to drive mobile remote payments market growth.”

NFC also is not likely to be a large source of revenue for carriers, as they will earn little or no transactional revenue from their mobile wallets.

Merchant-oriented solutionsOne way carriers might consider inserting themselves into mobile commerce is with a mobile wallet tied to a prepaid account.

“The kind of carrier-driven payments that will be relevant to bricks-and-mortar merchants won’t be carrier billing, which is only designed for micropayments, but operator-branded mobile wallets featuring carrier prepaid accounts, enabled by the likes of Visa or MasterCard, as well as subscribers’ existing credit or debit cards and other payments services,” said Guillermo Escofet, senior mobile content analyst at Informa Telecoms & Media.

“Payments to online merchants will also be possible from these mobile wallets, subject to online merchants integrating the wallets’ SDKs into their sites,” he said.


Carrier-based mobile commerce solutions could be attractive to merchants not only because of the carriers’ existing relationship with consumers, but also because of their experience in dealing with complex data.

By leveraging this relationship and customer data, carriers can find a way to both help merchants in their activities while also protecting consumers.

“The ability to read data streams across a customer’s day – behaviors - is what carriers do,” said Glenn Pingul, vice president of products and mobile strategies for Globys, Seattle.

“Mobile commerce merchants should consider carrier-driven payment solutions because carriers are well versed in managing complex data – how else do they accurately rate and bill for all those calls their millions of customers make each hour,” he said.

“Carriers need to leverage the capability they have in managing large amounts of user data, and billing their customers and harness that data and turn it into useful information to both help merchants market better to prospective customers while protecting their customers from those same merchants.”

Research on mobile commerceBy Lauren Johnson

Here are some mobile commerce numbers thus far in 2012 to keep in mind when planning a marketing strategy.

1. Ninety percent of the top ten retailers have both a mobile site and application, according to a study from CrossView.

2. Pointing to the immediacy of mobile marketing, SMS has eight times the response rate compared to email, says a report from ePrize’s Cellit that measured 1,180 campaigns from national retailers.

3. A study from Mojiva found that 69 percent of consumers rely on mobile to either research, buy or lease a car, showing that consumers are doing more than idly browsing on their device.

4. Forty-nine percent of retailers claim that the average order value on tablets is higher than desktops, according to a Shop.org/Forrester Research study.

5. Showrooming - or the act of consumers comparison-shopping in-store - is a real threat for retailers. A recent study from the Interactive Advertising Bureau found that 53 percent of mobile users stopped an in-store purchase after finding a better deal or more information via their device.

6. Twice as many merchants — 19 percent — plan to invest $100,000 or more in mobile this year versus last year, according to a report from the e-tailing group.

7. Mobile email rates continue to grow, especially for retailers. A study from Knotice found that open rates on emails from retailers doubled year-over-year. Mobile email open rates for the study came in at 28.1 percent — indicating that email is a crucial part of a marketer’s strategy.

8. Television offers mobile marketers more than just engagement. A study between Ignited, Nielsen Co. and AdColony found that purchase intent increases 72 percent when an ad is served across television, smartphone and tablet platforms.

9. Mobile bankers are making complex transactions via their devices. A Juniper Research study predicts that 80 percent of mobile bankers will pay bills via their devices by 2016.

10. When it comes to search, it is all about location for

Mobile commerce will continue to increase both foot traffic and online sales in 2012 and 2013 for retailers. As consumers become more tied to their

mobile devices as a shopping guide, marketers should be viewing the smaller-sized screen as a big opportunity.


mobile users. Sixty-four percent of tablet owners use their device to make weekly searches, per a study from Localeze and 15miles. In turn, 86 percent of users buy something from their most recent search.

11. Showing the potential of locally relevant advertising, 21 percent of mobile users search for coupons via their devices while in a store. Additionally, 75 percent are more likely to take an action after seeing a location-specific message.

12. Fifty-four percent of smartphone shoppers surveyed by BrandSpark International said that they were interested in using mobile coupons. The same study found that although 77 percent of participants knew about QR codes, only 19 percent of those users have used them to access product information.


13. This past Black Friday, mobile made up 18 percent of Christmas Day and 14.3 percent of Web traffic, according to findings from IBM Coremetrics. Given the growth of mobile, this number is likely to increase significantly for the 2013 holiday season.

14. A recent study from comScore claims that mobile banking app usage grew 74 percent year-over-year in 2011, representing 16 percent of mobile users. Going forward, this percentage is poised to grow with consumer education and more sophisticated users.

15. Although mobile payments have been slow to gain traction, the potential for it to affect small purchases is high.

A Juniper Research study found that the number of mobile users who pay for metro rail or bus tickets via NFC will reach 13 percent in 2016 compared to less than one percent in 2011.

Mobile commerce in a multichannel environmentBy Lauren Johnson

For many retailers and brands, mobile is part of a broader marketing ecosystem that impacts multiple channels - both digital and traditional. In this way, mobile serves as more of a loyalty channel instead of a standalone medium, according to some mobile experts.

“While mobile is a channel, it is best utilized when it is weaved through your other offerings and initiatives,” said Dan Burcaw, founder/CEO of Double Encore, Denver, CO.

“Mobile, at its core, is a loyalty channel — it should not be your main focus for new business, lead generation or acquisition,” he said.

“Use mobile to enhance your offerings to your existing crowd that is most likely away from the desktop environment.”

Loyalty toolIf used correctly, brands can use mobile to increase loyalty with specific multichannel campaigns. For example, Express recently used mobile bar codes and SMS as a way to bring another level to a piece of direct mail.

Consumers could text in a keyword to a short code to buy products from the piece of mail via a mobile site.

Mobile has the unique ability to work across multi-ple channels and, over the past year, the medium has increasingly been used by retailers and mar-

keters as a stronger aspect of a multiplatform strategy.

However, in order to participate in the text message component, users had to first opt-in to Express‘ SMS program.

The campaign not only tied its mobile loyalty program into a traditional marketing channel but also gave users an incentive — shopping — for texting.

Mobile can also be used to enhance the in-store experience to build loyalty, such as promoting a rewards program.

Adding a mobile component — such as an application — to let users manage their account is a great way to promote a mobile offering.

However, mobile has to have an added value to keep consumer engagement high.


Budget for mobileOne of the hurdles that brands face when getting into mobile is finding a way to include mobile into a marketing budget.

However, by viewing mobile as part of a multichannel effort, brands can implement tactics into specific campaigns to test.

Take a magazine print campaign, for example.

As a stepping stone into mobile, a marketer could include a QR code that lets consumers scan a print ad to learn more about the product or company.

Television is another example of a traditional marketing


channel that could be enhanced by mobile.

To help promote an app, a call-to-action could be used during a TV ad to encourage users to download an app.

Although it is important to test new marketing efforts, new brands can also learn from brands that have a longer history in mobile, according to Mr. Burcaw.

“Do not look to go out and reinvent the wheel too much, because you will create something that does not mesh with your other products and initiatives,” Mr. Burcaw said.

“How can you use mobile to provide tools and relevant functionality to enhance your other digital and even traditional initiatives?” he said.

“Mobile is the ideal platform to stop viewing marketing as a one-way form of advertising and a way to start seeing it as a true, long-term relationship builder between the business and the consumer.”

Legal developments affecting mobile commerceBy Michael B. Hazzard and Jason A. Koslofsky

Court decisions, private lawsuits and Federal Communi-cations Commission actions have the potential to affect your mobile campaign both positively and negatively, and should not be ignored.

A recent ruling out of a Chicago federal court concluded that marketers need to be careful when telephone num-bers change because a text message sent to a new sub-scriber of that telephone number might be considered unsolicited under the Telephone Consumer Protection Act (TCPA).

The court found that “called party” in the TCPA means the current subscriber to the called number at the time the call is made, regardless of whether the prior sub-scriber provided consent.

The FCC has already found that the TCPA applies to SMS, finding that it is a “call.”

Under this ruling, a business faces potential TCPA liabil-ity if the business makes a call to the new subscriber relying on the express consent of the prior subscriber.

Interestingly, the court also reasoned that there cannot be long-term consent to contact any phone number, be-cause no one has a property right in a phone number.

Another recent federal class action complaint filed in New York on behalf of short code holders challenges the short code system as anticompetitive, and could dramatically affect the entire mobile marketing industry if successful.

The complaint alleges that the costs associated with the short code system are artificially inflated and that the wireless carriers have combined in an unlawful monopo-ly to enforce those artificially inflated prices.

Although the suit will probably take some time to re-

Several legal developments over the past year have the potential to dramatically affect individual mo-bile campaigns and the industry, as a whole.

solve, if successful, marketers may pay lower pric-es for short codes and face less interference by wireless carriers.

Additionally, the TCPA has also arisen in the con-text of group texting applications, which continue to attract users, while also attracting lawsuits from plaintiffs’ lawyers.

These lawsuits claim that the text messages sent by a group leader are not sent with the consent of the recipients.

The CTIA has also recently instituted strict guidelines for group texting, which have the potential to severely limit the growth of those apps.


The Mobile Marketing Association’s requirement to send confirmatory, opt-out text messages in response to a “STOP” request has also faced lawsuits under the TCPA, but a mobile marketing company has asked the FCC to bless the practice.

Most commentators came out in favor of confirmatory, opt-out text messages and the MMA’s requirement.

Should the FCC agree that the practice is not unlawful under the TCPA, mobile marketers will face less uncer-tainty with regard to their campaigns.

The FCC is also considering whether to include SMS in Universal Service Fund (USF) payment requirements, which may impact the cost of doing business for mobile marketers and the regulatory status of SMS.


USF supports universal telephone and now broadband service for underserved and low- income populations.

Companies pay a portion of “telecommu-nications” revenue to USF. Including SMS could mean that providers pass USF changes through to end users.

And, if SMS is classified as a telecommuni-cations service, carriers and providers may have to treat SMS more like a telephone call, including no longer monitoring content.

Finally, the end of a major clash involv-ing a premium SMS company shows the risks and rewards of premium SMS and mobile marketing.

Two cases arose last year when Jawa was accused by Verizon and the Texas Attorney General of charging consumers for premi-um SMS services without fully disclosing the charges.

Jawa recently settled both litigations by promising the Texas Attorney General that it would offer refunds if requested, pay Texas

$2 million, establish a compliance program, and submit to audits.

In settling with Verizon, Jawa promised to obtain Veri-zon’s permission for premium messaging campaigns and comply with MMA guidelines.

The disputes show that any perception that a company is not following MMA or carrier guidelines can lead to litigation.

The settlements show, however, that companies can work out disputes, although the costs can be substantial.

Michael B. Hazzard and Jason A. Koslofsky are attorneys at Arent Fox LLP, Washington. Reach them at [email protected] and [email protected].

mailto:hazzard.michael%40arentfox.com?subject=

mailto:hazzard.michael%40arentfox.com?subject=

mailto:koslofsky.jason%40arentfox.com?subject=

The legal do’s and don’ts of mobile commerceBy Chantal Tode

It is not only consumers that merchants can run afoul of if they do not make the effort to ensure that their mobile strategies are up-to-date when it comes to security and privacy issues. Increasingly, regulators are keeping a close eye on marketers’ efforts in mobile. Patent infringement can be a concern, something that Starbucks, Expedia and Capital One found out earlier this year when they were sued by Maxim Integrated Products for allegedly infringing its mobile payment patents.

“As mobile marketing continues to evolve, and particularly as mobile commerce continues to emerge, the legal issues are becoming more complex,” said Linda Goldstein, chair and partner at Manatt, Phelps and Phillips LLP, New York.

“Mobile is certainly a platform that is evolving much more quickly than the law is able to keep pace,” she said.

“Marketers will thus be faced with the challenge of attempting to apply laws and regulations to marketing platforms that were not contemplated when these laws were written.”

Opt-ins are keyThe Mobile Marketing Association guidelines have proven to be a good source of guidance for marketers looking to comply with the letter of the law as well as to implement best practice that will minimize consumer confusion and dissatisfaction.

There are several additional steps merchants can take to protect themselves when it comes to mobile commerce. One of the most important legal don’ts is making unsolicited calls or texts to a mobile phone without the consumer’s expressed consent to receive such calls.

A s options for mobile commerce expand, the le-gal issues are becoming more complex. While it is getting more challenging to stay up-to-date on

“The law has now made it clear that text messages are considered a call,” Ms. Goldstein said. “That means that you cannot send unsolicited text messages to a consumer about an offer, promotion or other advertising matter unless the consumer has expressly opted in to receive those messages.”

Marketers should be particularly wary of list brokers who claim to have opt in lists of consumers who have agreed to receive such messages.

The opt-in to receive text messages must be campaign- specific according to the Federal Trade Commission and self-regulatory guidelines provide.


the latest legal do’s and don’t s in mobile, there are a few basic steps that need to be taken to ensure that market-ers do not run afoul of consumers, lawyers or regulators.

Proper disclosureAnother legal issue that merchants face in the mobile arena is privacy. In particular, there is growing concern about the data that mobile applications are collecting about users and if the disclosure adequate.

This means that merchants need to ensure their apps, as well as any third-party apps they are partnering with, have proper privacy policies that disclose what type of personal information is being collected and how that information will be used.

“The FTC has already brought several privacy cases against the developers of mobile apps who have failed to disclose what type of information is being collected and with whom it is being shared,” Ms. Goldstein said.

“These privacy sensitivities are particularly heightened when location-based information is being collected and the need for adequate notice and consent is heightened,” she said.

Providing the proper disclosures in mobile can be a

challenge because of the smaller screen sizes. However, regulators have indicated this is not a legitimate excuse.

“Marketers presenting offers through the mobile platform must devise mechanisms to make proper disclosure to consumers of all material terms and conditions of the offer that is being advertised,” Ms. Goldstein said. “In some cases, this may require directing the consumer to a Web-based mobile page on which the disclosures can be made.”

If merchants are directing any of their marketing or apps to children under the age of 13, they also need to make sure they have a mechanism in place to obtain parental consent before any personal information is collected. It is also necessary to ensure that minors are not making purchases without their parent’s approval.

“Marketers of products directed to children should ensure that they have procedures in place to comply with the Children’s Online Privacy Protection Act as the FTC has made clear that this law applies to mobile apps in a manner equal to Web sites,” Ms. Goldstein said.


Mobile commerce: Your customers are demanding itBy Jared Friedman

For some retailers, mobile de-vices are now making business more challenging. Those who are embracing technology are capi-talizing on a chance to build a stronger relationship with their customer.

Research shows that consum-ers are begging businesses to better integrate mobile devices with the shopping experience,

It was not long ago when the thought of shopping on a mobile phone was only imagined as a scene from the Jetsons. Today, thanks to the wonders of smartphones

and mobile applications, shopping on a mobile device is simple, intuitive and even fun.

but stores are not jumping on board fast enough. In a Mercator Advisory Group study, 55 percent of consum-ers express an interest in mobile coupons, but only 10 percent have actually received one from a merchant.

Whether you are an established bricks-and-mortar store with a loyal following or a new Web site focused on us-ing ecommerce to sell the hottest the product on the market, you need to embrace mobile commerce.

If not, your business could become as antiquated as the landline telephone.

Bricks-and-mortar businessesUnderstand that your customers are using smartphones to compare pricing while they are shopping in your store.

Pew American & Internet Life Project indicates that 52 percent of adult mobile phone owners used their devices while in a store to get help with purchasing decisions and that number is only growing.

Clearly explain your pricing strategy and illustrate the authenticity behind your product.

Highlight your product expertise or return policies to


help compete with online merchants who may be under-cutting your prices.

Use mobile coupons. The consulting firm Accenture found that 73 percent of consumers find it useful to receive an instant coupon as they pass by an item in a store.

With apps such as Yowza, you too can compete with the big box retailers. Yowza enables stores to promote their mobile coupons to shoppers who are nearby.

Use mobile coupons to attract new customers with lo-cation-based promotions and incentivize shoppers to spend more.

Additionally, re-target customers who may not be ready Jared Friedman

to buy. Internet retailers have profited tremendously from re-marketing – showing ads for their products when a user leaves their site. Bring the same sales tactic to the real world. When a shopper walks into your store, capture their information by signing them up on an in-store iPad or re-direct them to your mobile-friendly site to register for your newsletter.

Armed with their email address, you can now reel them back in at a later date with seasonal sales or preferred customer invite-only events.

EretailersUse responsive Web design. Many businesses have never seen how their Web site looks on a smartphone.

Many times a site can look normal on a computer and then appear disorganized and challenging to use on a much smaller screen. Make sure your Web site is legible and easy to navigate on a mobile device. Simplify the checkout process and use large buttons to assist with


selecting products. Ipsos found that 60 percent of mobile buyers make purchases from the comfort of their own home, not on their computer.

Go head-to-head with bricks-and-mortar stores. Know-ing that consumers are using their mobile devices to look for deals while they shop, make sure you show up when someone searches for a specific product.

Add product names, SKU numbers and other detailed in-formation to your mobile Web site to help you show up with a better placement on search engines.

Also consider registering as a Google merchant to attract mobile shoppers focused on Google’s product-displaying Shopping feed.

Turn your customers into sales people. Online satisfied shoppers can often be your biggest fans and brand am-bassadors. Get them to review your products and help you sell more. A Nielsen study discovered that 32 percent of smartphone owners read customer reviews on their mobile devices.

User ratings and reviews can be the secret to converting a mere to someone who actually opens their wallet. Best of all, incorporating Google’s micro-data can help search results stand out and take up more real estate on a small mobile device screen.

Adding micro-data to your Web site can help icons such as stars and prices show when users are searching for products. More real estate equals a higher probability of getting a click.

It is clear that mobile shopping is already going strong and will be growing exponentially in the coming years. Retailers that jump on the bandwagon now will be the companies in the best position to dominate the promis-ing space.

ABI Research predicts that, by 2015, mobile shopping is predicted to be a $163 billion worldwide business. What percentage of that will be yours?

Jared Friedman is a marketing strategist at Blue Fountain Media. Reach him at [email protected].

mailto:jaredf%40bluefountainmedia.com?subject=

Create Mobile Marketing Websites in Minutes with our Easy to use CliqLaunch Platform

Visit us at www.siteminis.cliqlaunch.com

Create Visually Appealing Mobile Marketing Sites without the Need for IT

Over 5,000 Control Elements Administrative Site Management Graphically Rich Analysis Geo-Locator and Customizable Form Generator QR Code and Short URL Integration Brand Control Kept In-House HTML5 functionality Preview URL Environment Image Editor Social Networking Integration

[email protected] 888.981.4512

www.siteminis.com

Mobilize | Maximize | Monetize Fe

atur

es

http://www.siteminis.cliqlaunch.com

Technology

Mobile Marketer Guide to m-Commerce November 2012