Experts Offer Strategies On How Retailers Can Crack The Code On Mobile Marketing

By Amanda Ferrante, Assistant Editor

After seeing coupon redemption rates of 50% in its initial 12 test stores, Subway Restaurants recently expanded its “My Subway Mobile” campaign to more than 100 locations. The chain is now offering a dozen different promotional offers to more than 5,500 customers through the program, which is managed using a service from Modiv Media.

In another recent indication of the power of mobile marketing, Papa John’s Pizza recent Super Bowl campaign, “TEXTRA Points for Pizza,” drew over 115,000 registrants who were looking to score super discounts on pizza based on the final outcome of the big game.

While many of the early success stories around mobile marketing have been in the QSR sector, industry analysts suggest there are significant opportunities for other retailers to get in on the mobile action.

“The possibilities for mobile marketing are endless,” says Brad Beasley, president of CrossLink Media, a mobile marketing company offering both messaging and Bluetooth ad-serving software. MessageLink, the company’s proprietary messaging system, executes mobile campaigns via a secure online interface that enables clients to log in and create, modify, and deploy within minutes.

In addition, MessageLink provides a fully automated CRM solution offering additional information and request follow-up communication. “MessageLink provides a great CRM tool as clients now have immediate interaction with their mobile database and can reach these customers anytime, anywhere via the consumer’s most personal device – the wireless phone,” says Beasley.

MessageLink also controls CrossLink’s “Txt 2 Buy” feature that enables consumers to purchase products directly from their wireless phone and makes every advertisement and communication with the consumer an immediate point-of-sale opportunity. With Txt 2 Buy, consumers don’t need to wait until they get online to place an order, nor do they have to wait on the phone for an operator to complete the order.

Beasley says the highlights of mobile marketing include the following potential payoffs for retailers:
Ø 1-to-1 interaction with consumers vs. mass communication

Ø Measurable results

Ø Increased store traffic

Ø Increased impulse buys

Ø 24 x7 x 365 access

Ø Ability to reach only those customers who have specifically asked to receive your offers. No more wasted advertising

DIALING UP URGENCY
Andy Nulman, CMO of Airborne Entertainment, a mobile marketing company that’s worked with major brands such as Taco Bell, Maxim Magazine, and the NHL, agrees there is a big opportunity for retailers to cash in on the immediacy that the mobile medium provides.“It’s not about technology, it’s about people. People are interested in finding deals. Mobile marketing is just getting off the ground…the time is right now.” Nulman builds his case for mobile marketing around the acronym NOW, pointing to the following strategies:

Nearby: “Customers need to be in your radius, close, local. Shoppers aren’t traveling very far for a pair of jeans.”

Only: “There has to be a limit. Create a sense of urgency for your campaign. Establish a relationship to create an addicted customer.”

Wow: “Make a compelling offer. Make consumers opt in for select communication. You want them to come sporadically.”

A few of the key benefits of mobile marketing Nulman points to include the local drawing power of mobile media and the urgency that is created by text messages. “It is also dynamic so that you can take action when you need to. Do you have an empty store? Do something about it,” Nulman says. He offers the following 5 strategies retailers can employ to take advantage of the rapid growth of mobile marketing:

1. The NOW Psst: “Limited time offers, but they need to be engaging and special. Target people near your location.
The Secret Sale: Things like in-store sales, or special offers. Having consumers text to a special number will provide them with a message/discount/coupon. It’s completely opt-in and there are no paper costs.”

2. Random Discounts: “For instance, have promos that allow consumers to text for specific discounts, coupon codes, etc.”

3. The In-store Experience: “Give the customer control of what they want. Get them additional information like the back-story on products. When you make products more people-oriented, like Gap’s Red campaign, it becomes personal, and people will want to buy. Let consumers feel like they have the inside scoop.”

4. The Countdown: “Let the shoppers know that time is running out to save. Text alerts like ‘Only ten pairs left’ with an image of the product. And do so whenever there’s a new number to report. This creates urgency and keeps the customer’s mind on the store.”

5. Develop WAP Sites: Create a mini website for people to view on their phone. Keep it simple with your company logo and plain text. This lets people know what’s going on in your store.”

Another point of value in the mobile phone is its capability to increase customer loyalty. Dustin Young, Vice President of Emerging Technologies at InComm, a leading distributor of stored-value gift and prepaid products with over 145,000 retailers, says there are three points of true value in utilizing the mobile phone as a CRM tool:
· Provide the retailer with a cost effective channel;

· Provide the consumer with a user-friendly way of accessing unique offers, like an abbreviated dial code;

· The ability of the merchant to tie coupons to existing vehicles of POS code

Office Max "Elf Yourself" Final Results Are In

By Amanda Ferrante, Assistant Editor

Even if you didn't create your own Elf on ElfYourself.com this holiday season, you probably opened your inbox to the big hit that infiltrated pop culture with a huge viral impact.
Elf Yourself 2007
The Elfin' Impact from 11/20/07 to 1/2/08 :
- Over 193 million site visits
- Over 123 million elves were created
- 60 elves were created per second
- Users spent a combined average of 2,600 years on the site
- Ranked #51 most visited website on the web (HitWise Intelligence)
- Ranked #1 on "Movers & Shakers" (Alexa Rankings)
- Ranked as top 1,000 website in 50 countries (Alexa Rankings)
- Featured on CNN American Morning, ABC World News, Good Morning America , The Today Show, TNT Sports News, Fox News, & Rosie O'Donnell's blog.

Elizabeth McDowell, Publicist for EVB San Francisco, the co-creator of "Elf Yourself," says "The success is in part due to three fundamental characteristics 1) Keep it Simple 2) Make it Personal and 3) Give People a Reason to Pass it on."

Discussions for a 2008 version of last holiday season's favorite online activity are underway.

Office Max “Elfs” Themselves into a Media Frenzy

By Amanda Ferrante, Assistant Editor

In attempts to put itself “on the radar as a holiday gift-giving destination,” Office Max invested barely six figures, spending about the same as three 30-second TV spots.

The office superstore made huge waves this time last year, and is bringing back the alternative marketing effort this holiday season, inviting visitors to “Start the Elfamorphosis (and shop for great Christmas and Holiday gifts). The impact was, and is anticipated to once again be, elfin’ crazy. The cheerful campaign ended up banking $2.5 million in media exposure in just five weeks last holiday season. No bah-humbugs here- this was a hit.

OfficeMax's ElfYourself.com allows visitors to upload up to four photos and record a synchronized message through a special toll-free phone number. The faces are then attached to an animated elf body, the voice is processed to sound elf-like, and the result is dancing and talking elves that can be forwarded to family or friends, or posted to personal web sites or blogs.

The Elfin’ Impact in Just Five Weeks

• More than 800 years has been spent on the site
• More than 65 million visitors have created more than 41 milion elves since the site launched in mid-November
• On average, 34 elves are being created per second
• More traffic than Careerbuilder’s successful Monk-e-mail in its first 8 months (9 million)

"We expected ElfYourself.com to do well because of last year's popularity, but the results we're seeing are fantastic," said Ryan Vero, executive vice president and chief merchandising officer for OfficeMax. "People like the option of creating up to four elf characters and the number of site visitors and number of elves created reflect this. It's great to see how people are using ElfYourself.com and ScroogeYourself.com to spread holiday cheer electronically, especially during a shopping season that can be hectic and stressful. The idea is to get people to smile and I believe we're doing this."

“The client wanted to create content that just happened to be advertising,” said Anne Bologna, Partner & President at Toy, the New York-based ad agency behind the website, whose clients include Amazon, Disney, and the Oxygen Network. One of the most successful viral campaigns in history was created by Toy and its partner EVB, a digital content agency.

This year, Elfin’ yourself isn’t the only way to have fun on the net. Office Max introduced 20 other unique sites, including Reindeer Arm Wrestling, My Holiday Sweater, and North Pole Dancing, where you can create a dance sequence for Santa, and watch him “Bust a Move.” If you’re not so keen on the holiday scene, Scrooge Yourself and do a dance in the snow.

The simultaneous launch of 20 unique web sites ranks among the most launched at one time by an office supply retailer. "This playful Web content allows us to reach customers in exciting and unexpected ways," adds Vero, "while positioning OfficeMax as a fun destination to find holiday Gifts That Work!"

Related Links:
Office Max: www.officemax.com
Toy Ad Agency: www.toyny.com
EVB: www.evb.com

Tying NetPromoter Scores To Demand:
Reconsidering The Numbers That Matter

By John Gaffney

There’s been a lot of high-level debate recently about the usefulness of customer satisfaction scores. On one side are the NetPromoter fans who believe the extent to which a customer will recommend a product is the highest priority metric. On the other side are a group of authors and analysts that see a hot topic and are looking to cool it.

NetPromoter and the whole concept of customer satisfaction measurement is best viewed through the lens of demand generation. After all, if a company is not creating demand for its products or services, the rest of the debate and the rest of the measurements are just blog fodder. Customer satisfaction is a critical measurement not in predicting demand gen, but in defining it. Customer satisfaction measures the key elements of the customer experience. So measuring customer satisfaction, as NetPromoter does, is important.

Here’s why. Customer satisfaction scores are based on customer experience. A poor customer satisfaction rating, regardless of how a company measures it, means customers have had sub-par experiences. Experiences in the digital world are based on price, service, multichannel interactions, communications, and intangibles. The cold number on a spreadsheet is the result of warm bodies having emotional experiences with a call center, sales rep, retail sales person, or email that carries a brand. The question is not really about the relevance of customer satisfaction. Of course it’s relevant. The question is: What elements of the customer experience are generating demand? Which elements are flat or driving demand down?

On the consumer packaged goods side, customer satisfaction is tied very well to demand gen. Look no further than Coke and Pepsi. Price levers are consistently used to generate demand but they also leave the customer feeling good about getting “a deal.” Communications (media, advertising, promotions) are aimed at generating demand among different key customer groups. Pepsi, for example, is consistently trying to max out demand from the 18-24 age group. It will use celebrities, music promotions and sponsorships to make that customer group feel satisfied with the experience and desire that experience again. In some ways I think demand generation has become demand not for products, but for the products and associated experiences. My Coke Rewards and PepsiStuff are good examples of extending the brand experience to generate more demand for the product and the experience.

Let’s look at one of the other key debate points involved in the NetPromoter debate. Does willingness to recommend a product mean a company is generating demand? The answer to me is obvious. Word of mouth just might be the most effective way to generate demand from new customers that the digital age has produced. But savvy executives will understand that the thing being recommended is not the thing itself. The thing being recommended is most likely the information, experience and community that goes along for the ride. Customers are recommending products and experiences. In turn, the best marketing will create demand for both. Customer satisfaction, regardless of how it’s measured, in both areas, is critical.