What the Global 2000 Community Can Learn from Mobile-First Disrupters
I’ve been involved in developing mobile apps long before there were smart phones capable of handling them, and I founded FollowAnalytics on the premise that mobile marketing has the power and potential to reach audiences in unprecedented ways. I recently spoke at the Mobile Marketing Association Forum in New York City and was delighted to see that understanding and adoption of mobile marketing is shifting. Every data statistic, every research report and every industry analyst is singing the same tune – mobile apps are the smartest and most effective way to find new customers, communicate with users and reward loyal brand advocates.
It’s become impossible to ignore or underestimate the influence of mobile on today’s consumers. With a population of 7 billion on this earth, it is staggering to realize there are 6 billion mobile phone subscriptions – and that number is only growing!
So if mobile is so pervasive, and consumers want to connect through their handheld devices, why is it that ongoing customer engagement is so elusive? Believe it or not, too many companies are focused on marketing the app and the initial download, but fail to realize that what comes next is truly the value-add. Companies too often annoy or ignore customers to the point they rarely engage with the app, or worse, delete it entirely. According to a recent Compuware study, 80-90% of all downloaded apps are used once and then deleted! That’s a frightening statistic for marketers and developers alike.
Here’s what mobile start ups know that large, established firms do not – mobile engagement begins with the initial download and builds from there. Every interaction can either strengthen or damage the relationship between brand and consumer, and every interaction counts. The allure of mobile marketing is that it leads to the all-powerful Mobile Moment, where a customer’s unique desires are addressed in the exact way and at the exact time they are needed.
There are five key steps of engagement that lead to these pinnacle Mobile Moments:
Level One – Broadcast: These messages have value for their broad reach, and can alert all customers to things such as app updates. However their conversation rate is low – between 2-5% – and they must be used sparingly to be most effective.
Level Two – Segmentation: This interaction allows for a more slightly narrowed approach, segmenting customers by things such as the type of device they use or very broad location parameters. Its conversion rate is slightly higher at 5-12%, but it is still a basic broadcast message.
Level Three – Relevance: This type of engagement allows for greater segmentation, reaching out to an audience based on buying habits or other patterns. The conversion rate rises at this level to 12-18% and it’s a great way to reach otherwise dormant customers.
Level Four – Contextual: These messages truly start to narrow the focus of customer engagement, reaching them through more sophisticated methods like geo fencing and situational outreach. For example, you can alert your mobile customer to a sale in a store she is about to walk past. Contextual engagement offers a conversion rate of 19-24% as customers see real value in more direct messages.
Level Five – 1:1: The peak of mobile customer interaction, a hyper-personalized marketing message sees a jump in conversion rates above 25%. These messages tell a customer “I know who you are, I know what you like, and I know when you need it.” Over time, this personalized interaction results in loyal brand advocates and lifelong customers.
Seamless Connectivity to CRM Enables Mobile Moments
While all five levels of engagement have their value, large organizations often focus on only the first two, eventually frustrating and losing potential customers. Through tapping into the value of your CRM system and leveraging the power of a mobile marketing automation platform, you can more readily engage with customers at all five levels, increasing the value of your mobile apps and significantly impacting your bottom line. Seamless, automated connectors to CRM and other back-end systems make it easy to connect mobile users to the core business, customizing mobile experiences and amplifying the ROI of investments in Sales Force, SAP and Oracle
Move Fast or Be Disrupted
Another valuable lesion is company’s need to move faster to mobile engagement or risk losing marketing investments and customers. It is possible using new technology and approaches to be up and running with highly customized engagement campaigns in weeks, not months.
Forrester research shows that as much as 72% of happy mobile customers share an app with friends and 58% choose to buy products and services from apps they find reliable.
It’s time for large, Global 2000 companies to take their cues from the mobile start up world and recognize that your most valuable marketing asset is your mobile app presence. FollowAnalytics’ mobile marketing automation platform can put you on the path to individually-catered marketing in as little as two weeks. To get started, check out our free mobile marketing scorecard and see how your brand competes in today’s mobile universe.