What's Working In Mobile Consumer Engagement?

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What’s Working In M BILE Consumer Engagement? Produced By: Scott MacFarland November 2015 Photo: pexels.com

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2 Table of Contents 3-4 5-6 7-10 11-14 15-17 18 “ Customer’s anytime anywhere mobile behavior Mobile consumer engagement is central to a retailer’s strategy CMOs are the purchaser involved in the buying process The connection, context and content must be integrated Mobile marketing strategies must drive habitual behavior Summary Photo: pexels.com ! Today, the customer path to purchase is a complex web of interactions and experiences across digital and physical channels. Mobile is the indispensable common denominator that is guiding, informing and influencing the customer through their journey. For those retail brands that can successfully and seamlessly integrate mobile, the possibilities (and ROI) are tremendous.” - Krista Gunstone, loyalty360.org 1 In this eBook you will learn why mobile initiatives have emerged as the heartbeat and the energizing force behind successful consumer engagement strategies. ! ! Photo: UnSplash.com

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3 Customer’s AnytimeAnywhere Mobile ! Behavior The emergence of a customer’s anytimeanywhere mobile behavior has forced the hand of retailers big and small to keep pace with their customers. The race to capture and engage customers with mobile has already started. Chief Marketing Officers, are you ready? 224 million monthly active app users in the US 2 ! As you can see from the compelling facts to the right, the consumer desire for mobile has emerged and so has the demand for brands to provide superb mobile experiences. As this occurs, mobile customer engagement will naturally increase. ! These same consumers are now spending more time interacting with mobile devices and apps than ever before. ! This interaction is not just happening at planned moments throughout the day. It’s occurring whenever and wherever consumers feel the urge to fulfill their inner desire for self-satisfaction. read and 99% of texts are 3 minutes 90% within 3 92% of mobile shopping app users want to be alerted if retailers are having sales 4 187 million Americans now own smartphones. 77% mobile market penetration 5 ! ! ! ! Photo: pexels.com

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4 Customer’s AnytimeAnywhere Mobile ! Behavior For decades CMOs and retail executives have been scratching their heads wondering how they can capture and keep customers that are essential to their business. Their goal was not only to drive traffic to the brick-andmortar stores and e-commerce websites, but also to capture the attention and earn the loyalty of the people already in the stores. Mobile devices and the many ways they engage, interact and fascinate us consumers have interrupted and monopolized our daily lives to the point where we just can’t stop them anymore. If businesses don’t plan for how they can mobilize a strategy soon, they will be far behind their competition. It’s amazing that today’s mobile technology can accomplish both. The mobile consumer of today expects a richer shopping experience and the strategy the helps accomplish that must also provide enhanced consumer engagement. ! Mobile, consumers today receive highly ! targeted messages for the products they ! want, when they want it.! ! ! ! ! ! ! ! ! ! ! $$$ $$$ 3 of the top 6 areas for increased spending in 2015 are mobile: ! ! Photo: UnSplash.com 6 - Location based Mobile Tracking - Mobile Applications - Mobile Push Notifications

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5 Mobile Consumer Engagement Is ! Central To A Retailer’s Strategy Retailers now have the ability with mobile to collect valuable customer data from their customers’ buying habits. Marketers love this data because it provides them with a real life snapshot of the customers’ purchase behavior. All of this information helps create deeper insights and customer profiling that can be used for future digital and mobile enabled communications that trigger customer purchases. ! CMOs, if that doesn’t convince you, maybe this will: ! What About The Consumer?! We know that today’s brands are investing additional funds and resources in their mobile strategy. That’s great for the business, but how does a brand’s mobile strategy actually help the consumer? “ ! The mobile consumer wants the retailer to offer content and promotions relevant to the total consumer based on personal interests. This is only made possible through cognitive computing, harnessing the potential of big data.”! - Bernie Borges - CEO, Find and Convert 10 ! 2 billion More than 2 billion mobile users will make a mobile commerce transaction by the end of 2017 7 84% of customers say they use their mobile devices before and during in-store visits 8 8 million Starbucks has 8 million mobile transactions weekly 9 Photo: startupstockphotos.com GFX: iconfinder.com

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6 Mobile Consumer Engagement Is ! Central To A Retailer’s Strategy When brands start to think about how to really create value for the customer, they will discover that mobile is most likely in the conversation. There are several ways to engage your prospective and existing customers. Typically retailers big and small use coupons, promotions, location based messages, beacons and even contests to show value. This is integral for increasing customer engagement, and what brands like to call mobile wallet. 11 ! Photo: pexels.com “ 57% 57% of US online adult smartphone users are interested in having access to loyalty program points and rewards within a mobile wallet.” 12 - Thomas Husson of Forrester Mobile has definitely become the ! energizing x-factor for retail brands ! ! The benefits are recognized not only in mobile wallet, but also in virtually every other facet of the business. Mobile has the unique ability to reach people anywhere, anytime, based on-location, time, behavior and a myriad of factors that all help the CMO of a retail brand exceed business goals.

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7 CMOs Are The Purchaser Involved ! In The Buying Process! When brands decide to “go mobile” - sometimes the wrong executives are at the table making the final decisions. In reality, the CMO should be the driver of all-things-mobile. Additionally, mobile is! so much more than just text messaging on the vendor side and the buyer side. Mobile technology is used in many consumer applications. Typically its function is to drive new engagement initiatives, sales revenue or help communicate with and retain existing customers by keeping them connected and in-the-know. These should be purely marketing functions that should have the CMO’s attention. CMOs also need to speak into and invest in the mobile process from concept to deployment, from conversion to repeat customer. Photo: pexels.com

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8 CMOs Are The Purchaser Involved ! In The Buying Process! Think ! About ! This… Is it possible in just a few short years the CMO may have 80-90% of the buying power for mobile consumer engagement channels? ! ! Photo: pexels.com “ By 2017, marketers will spend approximately $31.1 billion on mobile advertising nearly 4x of that spent in 2013. 13 By 2017, the CMO will spend more on IT than the CIO.” - Gartner Analyst Laura McLellan 14

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9 CMOs Are The Purchaser Involved ! In The Buying Process! Chief marketing officers are no longer just the creative minds in the business. They must manage a budget like the CFO, interact with technology like the CTO, and deploy and manage widespread initiatives like the COO. This paradigm shift in thinking and action from years past requires a different breed of marketers that must think and act digital and mobile first. This also requires a robust technology budget to support business goals. ! 15 16 In a recent 2015 CMO.com article, a study by Conductor indicates that chief marketing officers will spend big on technology in the coming years. Below are just a few of the indicators from the study that clearly inform us all that technology is critical for retail marketing teams. If your ! team isn’t thinking about how mobile technology should be integrated with your marketing strategy, maybe it’s time to start. 65% of marketing executives plan on spending more on marketing technology in the coming year 61% of marketing executives say data is more important than it was a year ago 28% of those same marketing executives plan on spending significantly more (25% or more) Photo: pexels.com

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10 CMOs Are The Purchaser Involved ! In The Buying Process! It’s fair to say that 100% of chief marketing officers want and need a mobile strategy that is highly efficient for both the company to manage and the consumer to engage with easily. This is not a simple task to accomplish. ! CMOs are spending more on mobile engagement initiatives. ! This enables them to stay ahead of the curve all while they become more educated on the tools and tactics needed to help them accomplish their lofty goals.! “ 79% of companies marketing has a budget for capital expenditures – primarily, for infrastructure and software” - Laura McLellan, Gartner CMO Spend Report 17 Photo: startupstockphotos.com GFX: piktochart.com

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11 The Connection, Context And ! Content Must Be Integrated! ! Everyone is a consumer, and with mobile, that doesn’t change, it becomes even more important. When a brand communicates to a prospective customer or even an existing customer, they don’t always know their purchase intent. ! As connection, context and ! content become more integrated; the brand’s goal becomes more realistic for the consumer to take ! an action toward purchasing, or ! an action that leads them closer ! to a repeat purchase. ! Like all good marketing, connection, context and content are absolutely essential, especially if brands want to increase consumer engagement and ultimately sales revenues. This is not a linear brand-to-customer process. It’s cyclical, and interactive, and in order for the process to be most effective, it must continue to deepen the relationship between the brand and the consumer using methods that are timely and relevant. ! “ Consumers get highly targeted promotions and ads for the things they want, and retailers can collect valuable data on their customers’ buying habits, which can be used for future promotions, pricing 18 strategies and marketing platforms.” - Greg Petro, Forbes.com ! 19 Businesses need to fully understand the customer’s journey, their wants, needs, motivations and their behaviors. ! ! The more the company knows, the more effective connection, context and content will be using mobile. When all three are integrated in a cohesive, integrated strategy, both the brand and the customer are happy. ! Mission accomplished. ! ! ! ! ! Photo: pexels.com GFX: iconfinder.com

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12 The Connection, Context And ! Content Must Be Integrated! ! For the consumer, staying connected helps them receive offers, coupons, timely communications and special promotions. If you’re like most connected consumers, receiving offers on your smartphone is what you prefer whether you’re shopping, traveling, working, on the run, or at a soccer game with your kids. ! ! ! “Among all industries, Retail apps have been the quickest to adopt ! in-app message centers. Given ! the impact messaging can have ! on sales and pre-shopping ! activities, this isn’t surprising.”! ! ! - Urban Airship We all know that a consumer’s time is valuable, and so is being connected to them for the reasons they want and need. Here’s the tricky part for brands; connection and context are great, but without content, the first two cannot stand on their own successfully. The customer wants content and even signs-up for it to make their busy life easier. ! Content for decades has been considered king, and in the mobile world, that still holds true, especially since many people are viewing content on many devices and screens simultaneously. ! ! ! ! ! ! 20 Photo: pexels.com 44% 81% “44% of consumers say that they would like brands to deliver deals and coupons to their mobile devices.” - HubSpot 21 “81% of multi-screeners were accessing something relevant on their mobile devices to what they are watching on the big screen. ! ” Azadeh Williams, CMO.com 22 “Your customers aren’t just accepting the role their smartphones are playing in the shopping experience; they’re also pushing you to engage their smartphones, forcing adoption of digital wallet acceptance, mobile loyalty programs, and more.” - Matt Pillar, editor-in-chief at Integrated Solutions for Retailers 23

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13 The Connection, Context And ! Content Must Be Integrated! ! Retail brands have adopted the principles of connection, context and content quickly. Here are a few ways they have taken advantage of mobile, and as a CMO, you can too. ! Improving Customer Communications: While creating increased touch points that are relevant and timely, this enhances the customer experience and also allows for alerts to be used more effectively. Customers feel connected and more in touch, which helps to nurture them and drive them deeper through the sales funnel toward conversion. ! ! Increasing Customer Engagement: This occurs because of frequent communication, highly targeted marketing, promotions and even status updates are being used for customer loyalty programs. Customers prefer messages that are highly relevant, and not a sales pitch. When relevancy is happening, increased engagement will drive sales revenues. !! ! Increasing Store Traffic: Mobile drives store traffic with both app and text reminders and contextually relevant promotions that use real-time customer behavior as triggers. Connection, context and content are critical here because none of them can stand-alone; they rely on their combined strengths to be successful. ! ! Photo: DeathtoStock GFX: iconfinder.com

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14 The Connection, Context And ! Content Must Be Integrated! ! Because adult mobile users are spending more time on their devices, that means they are more connected than ever before. It also means the context in which they are being drawn to different mobile experiences as well as the content used to compel them to purchase is seamlessly integrated to create a brand-to-consumer engagement cycle that never stops. ! Mobile digital media time in the US is now significantly higher at 51% compared to desktop (42%) ! ! 5.6 hours per day time spent per adult user per day with Mobile ! 2.4 hours per day time spent per adult user per day with Desktop/laptop ! ! ! KPCB US and global Internet trends 2015 report 24 Photo: pexels.com

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Mobile Marketing Strategies Must Drive Habitual Behavior! Marketers strive to build relationships with their customers. This is organic to how marketing teams think, create a strategy and implement mobile initiatives. A great deal of research goes into understanding the customer and how to build a relationship with them. Mobile is an unparalleled marketing channel that can accomplish both because today’s smartphone technology plays an active role in the lives of consumers. Checking one’s smartphone has become so habitual it’s almost like an extension of the arm itself. ! ! “ 15 The average smartphone-wielding consumer whips out their phone more than a hundred times every day” 25 - Tom Kaneshige, CIO.com 97% “of smartphone owners use text messaging, the most popular feature on smartphones” - Pew Research Center Photo: pexels.com Can you think of a better way to develop a relationship than with a device that’s being used all the time by the person that is most important to your business? 26 46% “of smartphone owners say that it is something they “couldn’t live without.” 26 - Pew Research Center

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16 Mobile Marketing Strategies Must Drive Habitual Behavior! Mobile Pay - Soon To Be The Norm! Mobile payment methods are soon to become the norm for brands and consumers. Before this occurs, there needs to be a shift in consumer habits because some generational groups are not accustomed to swiping their smartphone and paying instantly. The older the customer, the less likely mobile payments will occur. ! As mobile usage increases and becomes a daily occurrence for some people, it has also proven to be a robust tool for marketers. CMOs looking to reach out to the Millennial generation 27 are exploring mobile marketing strategies designed for that generation and their digital behaviors. According to a Mitek and Zogby Analytics study, 28 this generation spends a great deal of time with their smartphone both day and night (87%). ! ! ! ! If you’re not convinced that mobile drives habitual behavior, just ask any person walking the street with their smartphone clutched in their hand and their face looking down at the screen. Or the dating couple in a restaurant having dinner together. They are gazing into their small screen instead of their mate’s eyes. The smartphone is not only creating a habit people are unable to break, it’s created what some call the perfect storm 29 for addictive behavior. This is good news for marketers. ! ! “The confluence of increased ! access and greater sharing of ! personal information, and at ! higher transmission speeds, has created the perfect storm of addictive technology.” 30 - Nir Eyrl 78%! of Millennials spend over two ! hours a day on their device. 28 Photo: pexels.com

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17 Mobile Marketing Strategies Must Drive Habitual Behavior! Photo: stocksnap.io ! Have you ever counted how many times each day you took your smartphone out of your pocket or purse and started staring at it needlessly? ! ! It’s probably a scary statistic that many of us are really not interested in knowing the answer to. If we were honest with ourselves, we would probably admit our smartphone tends to monopolize our time and attention. When we do engage with it, most likely it’s on impulse and not because we actually have a real need to do something. 81% of smartphone owners say they keep their smartphone near them all the time during waking hours - Gallup 32 63% report keeping it near them at night even while sleeping - Gallup 32 “Gallup found that about half of smartphone users check their phones several times an hour or more frequently; 81% of people said they keep their phones near them “almost all the time during waking hours” and 63% do so even when they’re sleeping.” - Frank Newport 31 ! ! 52% of smartphone owners check it a few times an hour or more - Gallup 32 ! 20% ages 18-29 check their phone every few minutes - Gallup 32

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Summary A mobile strategy is paramount moving forward in today’s world of digital. Customers have changed their habits day and night. ! The smartphone has become a permanent go-to device in hands, purses and pockets worldwide. ! “ 18 The number of mobile devices has now ! surpassed the global human population, ! with nearly 90% of consumers ! owning a mobile phone.”! ! ! ! ! ! ! - Steve French, global vice president at Amdocs' OpenMarket 33 It’s amazing how the world of mobile has altered the way consumers engage with all types of brands. Customer expectations are high and the content they receive must meet them where they are in the buying process in order for brand-tocustomer engagement to occur. ! As technology and consumer adoption of mobile evolve at warp speed right in front of our eyes, we are seeing the retail consumer engagement status quo change. Mobile has become the norm that starts the relationship building process and continues it all the way through to purchase ! and beyond. Photo: pexels.com GFX: iconfinder.com

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19 About the Author: Scott MacFarland has 28 years of producing, marketing and digital experience while working in broadcast television, digital agencies, production, corporate marketing and start-ups. His marketing work has been seen and leveraged by customers and brands around the globe. Scott has been recognized and awarded for multiple campaigns, and brand launches with domestic and international companies. Scott is an accomplished producer, consultant, content marketer, digital strategist, blogger, eBook author, speaker and thought leader on the topics of digital, social media, mobile, business and content marketing. He is currently published on the Huffington Post, LinkedIn, Pulse, Slideshare, Natcom, Onboardonline and YourBrandExposed.com. ! Scott MacFarland Chief Evangelist | Digital Marketing Strategist YourBrandExposed.com 2015 Speaker and Panelist:! • Social Media Strategies Summit - Las Vegas • Hubspot Inbound - Boston Latest eBooks:! • How Content Leads To Customers • Why Is Content Marketing Critical For A Healthy Business? digital . social . marketing . content

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eBook Sources: 1- Source: http://loyalty360.org/loyalty-today/article/how-starbucks-pioneered-mobile-and-reaped-rewards  2-­‐  Source: http://www.searchenginejournal.com/2014-mobile-landscape-25-statistics-will-drive-future-mobile-marketing-infographic/89507/  3-­‐  Source: https://www.mobilecause.com/mobile-stats-infographic/  4-­‐  Source: Latitude Research  5-­‐  Source: http://www.comscore.com/Insights/Market-Rankings/comScore-Reports-March-2015-US-Smartphone-Subscriber-Market-Share 6- Source: Salesforce 2015: https://www.salesforce.com/blog/2015/01/2015-state-of-marketing.html  7-­‐  Source: http://www.juniperresearch.com/researchstore/commerce-money/mobile-commerce-markets/key-sector-strategies  8-­‐  Source: http://risnews.edgl.com/retail-news/Retailers-Enter-New-Era-of-Mobile-Focused-Consumer-Engagement99847 - Molly McCombe  9-­‐  Source: http://loyalty360.org/loyalty-today/article/how-starbucks-pioneered-mobile-and-reaped-rewards  10-­‐  Source: Find and Convert http://www.findandconvert.com  11-­‐  Source: Mobile Wallet http://blogs.forrester.com/thomas_husson/15-02-09-the_future_of_mobile_wallets_lies_beyond_payments  12-­‐  Source: http://blogs.forrester.com/thomas_husson/15-02-09-the_future_of_mobile_wallets_lies_beyond_payments 13- Source: http://webbiquity.com/marketing-research/21-vital-mobile-marketing-facts-and-statistics-for-2014/  14-­‐  Source: http://www.insidecxm.com/a-chief-marketing-officer-kicks-off-2015/  15-­‐  Source: CMO.com: http://www.cmo.com/articles/2015/1/7/study_uncovers_cmo_s.html  16-­‐  Source: Conductor: http://www.conductor.com/learning-center/182-marketing-executives-reveal-their-2015-success-tactics/ 17- Source: Gartner CMO Spend Report https://www.gartner.com/marketing/digital/research/digital-marketing-spend/cmo-spend-2015/  18-­‐  Source: http://www.firstinsight.com/strategy  19-­‐  Source: http://www.forbes.com/sites/gregpetro/2015/03/06/2015-the-year-of-the-mobile-beacon-part-one/  20-­‐  Source: http://urbanairship.com/lp/mobile-engagement-benchmark-reports  21-­‐  Source: http://www.hubspot.com/marketing-statistics  22-­‐  Source: http://www.cmo.com.au/article/574648/5-lessons-smarter-mobile-customer-engagement/  23-­‐  Source: http://www.retailsolutionsonline.com/doc/three-keys-to-the-mobile-consumer-strategy-preparation-and-adoption-0001  24-­‐  Source: KPCB US and global internet trends 2015 report http://www.smartinsights.com/internet-marketing-statistics/insights-from-kpcb-usand-global-internet-trends-2015-report/  25-­‐  Source: http://www.cio.com/article/2900120/cmo-role/why-cmos-must-take-mobile-more-seriously.html  26-­‐  Source: Pew Research Center http://www.pewinternet.org/2015/04/01/chapter-one-a-portrait-of-smartphone-ownership/  27-­‐  Source: http://heidicohen.com/2015-mobile-marketing/ 28- Source: http://www.emarketer.com/Articles  29-­‐  Source: http://www.technologyreview.com/news/535906/compulsive-behavior-sells/  30-­‐  Source: http://www.technologyreview.com/news/535906/compulsive-behavior-sells/  31-­‐  Source: Gallup http://www.gallup.com/poll/184046/smartphone-owners-check-phone-least-hourly.aspx? utm_source=alert&utm_medium=email&utm_content=morelink&utm_campaign=syndication 32- Source: Gallup http://www.gallup.com/poll/184046/smartphone-owners-check-phone-least-hourly.aspx? utm_source=alert&utm_medium=email&utm_content=morelink&utm_campaign=syndication  33-­‐  Sources:  http://mashable.com/2015/01/02/mobile-trends-2015/                                 http://www.openmarket.com/ Photo Credits:! UnSplash.com startupstockphotos.com stocksnap.io pexels.com Photo: UnSplash.com Graphic Credits:! piktochart.com iconfinder.com ! ! 20

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