Mobile Marketing for Dummies

By Eric Holmen, President of SmartReply

According to a recent study done by Project Lighthouse, only 8% of consumers haven’t change their spending habits since the beginning of the recession. So why do retailers continue to use the same marketing techniques to try to get consumers to let go of their hard-earned dollars? Doesn’t make much sense, does it?

Retailers need to embrace new channels with higher response rates and lower costs to get the most out of their shrunken marketing budgets. The latest Advertiser Optimism Report from Advertiser Perceptions finds media-buyers are more optimistic about mobile than any other channel. Why is mobile the best channel for retailers looking to increase revenues and brand loyalty?

· At least 50 percent of the world’s population owns a mobile phone and penetration in many developed countries already exceeds 100 percent.
· Mobile offers the best return on investment compared to other marketing communication channels.
· Mobile has greater targeting capabilities and more personalization.
· Sending relevant, tailored and timely messages to a consumer’s mobile phone delivers far higher conversion rates from communication to sales.
· The always-on, always-available nature of the mobile device presents a unique opportunity for marketers to engage directly with consumers, building a meaningful dialogue, while respecting consumer privacy.

I’ve compiled a list of the seven deadly sins of mobile marketing; basically, a list of what-not-to-do’s for retailers who are looking to try out mobile for the first time.

1. Garbage in, garbage out
As with any marketing approach, sending inappropriate, irrelevant or poorly targeted content buys you a ticket to one place - the sin bin. Do not be tempted to send trashy content. SMS marketing works exactly the same way as other ad mediums in turning customers off. 64% of consumers find mobile ads irritating if they aren’t delivering valuable or relevant content, while 3 out of 10 US mobile users recall relevant mobile ads. So if you don’t fancy being blacklisted from your customer’s phone, understand their preferences and dislikes before sending content, even if it’s a simple text message.

2. The road to nowhere
Spam ‘em? Don’t even think about it. The mobile phone is a high-ranking highly-personal possession and should be treated with respect. It is one of the three things people do not leave home without – the other two being keys and wallet. Call it sacrosanct. Spam has no place on mobile phones (as start-up HeyCosmo found out last year when it sent phone spam to certain bloggers). Opt-in is the only road forward for mobile marketing, with FTC regulations firmly in place to weed out any maverick marketers around.
3. Pick a time, any time
Some marketers might be mistaken in thinking that any time is a good time to send a text message. Just like telemarketers calling up during dinnertime, the text message delivered at the wrong time will appear obtrusive, unwelcome and potentially annoying to the customer. So what is the right time to text? Ask the customer when they sign up to receive your messaging.

4. Gimmicks, gadgets, gizmos and junks
As a guest on consumers’ mobile phones, sending gimmicks to enter competitions (that are not relevant), links to irrelevant banners or scrolling through multiple screens will get you blacklisted faster that you can say TXT2LOSE. If a consumer has signed up to receive price alerts, notifications of new arrivals or discounts on favorite items – send those only. Leave the gimmicks and silly banner links for someone else.

5. Don’t dish up seconds and thirds
An honest marketer will tell you that campaigns do not always translate successfully into other mediums. Just because an online campaign yielded great results with low CPM, it is no guarantee of similar success with mobile. A strategy for mobile should have its own identity, but be able to integrate with others. And with a small screen and size limitation of 160 characters, you need to get2the!

6. Safe data, smart operator
Security breaches happen because someone somewhere wasn’t smart enough, while someone somewhere else was much smarter. If you value your customers, then you’ll value keeping their data safe and well protected especially as mobile commerce and banking grows. Brand erosion and the damage from loss of customer trust caused by security breaches can end up costing a company millions.

7. You’re dumped
The point to all this advice is about developing and feeding your relationship with consumers. Marketing - mobile or otherwise - does not drive most transactions. Relationships and trust do. So if relationships drive transactions and business, marketers must treat their mobile relationships with respect and without aggression. Most of all, marketers have to show consumers their raison d’être in order to become a valued and trusted part of that mobile phone carrier’s life. Otherwise, you’re dumped.

About Eric Holmen
Eric is responsible for leading SmartReply’s strategic and creative teams in developing innovative voice, mobile marketing and advertising solutions to make the mobile phone valuable for consumers and advertisers: delivering solutions that are engaging, while empowering consumers to obtain the most relevant information onto their mobile phones. For more information about Eric or SmartReply, please visit www.smartreply.com.