Article: Exploiting the mobile channel

Wednesday, 24th October 2007
The mobile device has, unfortunately, been one of the more over-hyped and disappointing marketing channels of recent times. Thankfully the situation is changing and the greatest barriers to successfully marketing via this channel are being removed.
Nevertheless, only a minority of organisations are truly in a position to exploit this channel effectively. Marketers need to take action now to ensure that they can cost-effectively market to their customers’ mobile devices. If they do not, they risk not being able to effectively utilise a channel that is almost anywhere, all of the time, with their target markets.
So what has really changed in the last 18 months?
A number of big shifts in the Australian market place have made mobile a real engagement opportunity for marketers:
Third-generation (3G) networks are now in full-growth mode as marketing campaigns from the major carriers migrate existing 2G subscribers. A significant number of consumers can already experience rich media through their phones, with over 3.2 million consumers on 3G networks. This number is growing rapidly as consumers reach end-of-contract and re-sign to a 3G plan with a new phone. Telstra alone has 2 million 3G subscribers and averaged 100,000 new 3G subscribers per month over the past half.
Data charges are on the decline. Data charges have been a significant hurdle for consumers, as there is still a great deal of scepticism and uncertainty regarding exactly what and why they are being charged. Some of the capped-data arrangements coming from carriers such as 3 are a big step forward in removing this uncertainty. There is still a way to go on this important issue for consumers but the current trend is in the right direction.
Handset usability is improving dramatically. Handsets on sale today are far more usable than those available only 18 months ago. We can thank the Apple iPhone for stimulating a revolution in handset design and usability, and while the Australian market will not see that particular handset for some time, manufacturers such as Nokia, LG, and Samsung will launch similarly usable and capable handsets in Australia in the New Year.
An increasingly-compelling content opportunity now exists for consumers. While in the short term much of this content is tied up in exclusive mobile carrier arrangements and is not ubiquitous, a growing off-deck (i.e. carrier-independent) opportunity is being utilised by key entertainment and informational brands.
This is a scale opportunity.
We are in a unique market given the Australian love affair with the mobile phone. Already the marketplace has reached saturation with over 20 million active devices. In this market the mobile phone is the device that one cannot be without. You are in the minority if you are past your early teenage years and do not have one.
Consumer phone usage is also changing as improvements in usability, content availability, and education accelerate. A good indicator of this change in consumer behaviour can be found in the “The Australian Mobile Phone Lifestyle Index, Third Edition” published by AIMIA in March this year. This report observes that content purchases are still dominated by games and tones, but notes encouragingly that music downloads and video are the fast movers — having increased by 600% and 400% respectively, survey on survey.
What is the problem?
To put it simply, many organisations do not have the mobile phone numbers of their customers, or if they do, they do not have permission to use it as a marketing channel. Since legislation regarding spam was introduced many organisations in particular have been gradually growing their opt-in databases for email. There has been a move to minimise the information that requested from a consumer to maximise the potential of an opt-in. This has resulted in many organisations collecting merely an email address, a first name, and perhaps a postcode.
Even if you are a progressive organisation that is building its opt-in database of consumer mobile numbers, chances are you do not have a co-ordinated communication strategy to harvest and protect this asset. The immediacy and pervasiveness of the mobile device means that a mobile-number database requires special consideration regarding how it is utilised — and most importantly, when it is utilised. An opt-in database is an asset that requires active management.
Steps you should take today.
The best first step you can take is to put together a strategy for the collection and use of opt-in mobile numbers. You need to consider how relevant this channel may be today and in the future for communicating with your client base, and you need to consider what systems and resources may be required to adequately manage and access it in a meaningful way within the context of your overall contact strategy.
There are some immediate steps that you may wish to take and questions that you may wish to ask:
Do an inventory of your current opt-in database.
How many opt-ins do you have for mobile phone numbers?
What is the age and relevance of these numbers?
What segments/types of customers do you have mobile opt-ins for?
Review your current website(s). Make sure you check your main corporate site as well as any competition pages (etc) that your agency may have in place for you. Ensure you are collecting the mobile phone number and opt-in permission wherever possible.
Run a campaign to your existing customers to harvest mobile phone numbers.
You will have a variety of communications going to your customer base each and every week. Utilise these as a cost effective way for your client to opt-in to mobile communication.
Consider a specific campaign to update client information and acquire opt-in mobile numbers. This activity will generally have much broader benefits to your organisation–benefits that will include increasing your mobile opt-in.
Review your external promotions.
Do they already have a mobile element? If they do utilise a double-SMS strategy to offer your entrants the opportunity to opt-in to your database.
Update Ts&Cs, landing pages, and competition information to collect mobile numbers and obtain permission to use them.
Opt-in databases need particular consideration to ensure they are fresh, insightful, and are used with relevance to the audience. Consider how to achieve this with your ongoing promotional activity.
Discuss your strategy with your agency. Make sure that they understand your objectives and can help you with advice on the appropriateness of the mobile channel within your overall marketing strategy.
Review your metrics. Mobile marketing is extremely accountable in terms of measuring and demonstrating your marketing investment.
Some final considerations
The mobile channel offers individual conversations with consumers in an immediate and accountable environment. It is a channel that needs to be used wisely, with significant consideration given to the context of any message — including time of day, day of week, etc. — to avoid a negative consumer experience. Mobile is a channel that is best used within an overall media mix. Ensuring your other media appropriately utilise this channel as a glue to identify an individual consumer will maximise your results.
The marketing potential of this channel is accelerating as the current crop of mobile consumers migrates to new 3G networks and more usable handsets. As a marketer acting now within your organisation will ensure that you can cost-effectively exploit this channel and understand its role in the lives of your target market.
Article by Scott Johnson, Chief Marketing Officer — supplied courtesy of Marketing magazine. To subscribe, call 1800 804 160 or email marketing@niche.com.au.
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