Mobile Marketing. An Inside View from Marketing Managers. A Report by ZinMobi. ZinMobi

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1 Mobile Marketing An Inside View from Marketing Managers A Report by ZinMobi ZinMobi

2 Participants

3 Content 1. Executive Summary 2. The Size of the Mobile Revolution 3. Detailed Results 4. Recommendations 5. About ZinMobi

4 1. Executive Summary ZinMobi asked marketing managers from Ireland s leading retail, restaurant and fast food brands questions about marketing practices. The objective was to understand how attitudes to mobile marketing are changing in comparison to other marketing channels. Responses were received from brands that own almost 2000 stores and many with annual turnover that goes into the billions of euro. The key results are identified below: Maturing use of mobile A combination of the results demonstrate that the use of mobile and SMS is maturing as brands begin to recognise the richer capabilities of the channel. Focus on revenue from current customers Brands are using mobile marketing to drive revenue rather than just send messages Offer messages have overtaken information messages. 50% more brands send offer messages than information messages One in eight brands are using mobile to attract back lapsed customers and one in 11 to reward loyalty and send offer coupons. Brands that are using mobile messaging in a proactive way are focusing more on existing customers than attracting new ones - an option that scored just 7%. Speed If speed of action is vital, SMS, social media and should be the main channels selected SMS is fastest for setting up and deploying a campaign Social media usage is on the rise and is seen as the second fastest channel for deploying a campaign SMS and social media are seen as the channels to trigger the fastest customer visits after a campaign has been launched. Direct mail and billboards are seen as slowest. When effectiveness is added replaces social media at #2 Effectiveness SMS and are seen as the two most effective channels for return on investment. The jury seems to be out on social media as almost similar numbers see it as effective (29%) as those who see it as least effective (26%) Radio advertising is seen as least effective in terms of ROI. When the results for effectiveness are correlated with speed of deployment the top two channels are SMS followed by .

5 1. Executive Summary continued Visibility of effectiveness Over half of the respondents see marketing and SMS as able to give the most visibility of effectiveness. Radio advertising and billboards give least visibility of effectiveness. Mobile budgets Over half of brands spend less than 10% of the marketing budget on mobile but one in five spend as much as 20%. One third have increased their spend in the last year one in 10 by more than 25%. Use of mobile marketing One quarter of brands currently do no mobile marketing, Based on the results for speed, trackability and ROI, this may represent a lost opportunity Priorities for 2014 Improving targeting and conversion rates are the top priorities for mobile marketing in 2014 Increasing customer loyalty, brand consistency, speed and flexibility and data protection compliance are the next priorities Use of value-add functionality Most brands are missing out on the opportunity to send hyper-local messages, respond to competitor activity and capture customer feedback Effectiveness of traditional channels on the wane Brand managers see the influence and effectiveness of traditional channels like radio,tv and print advertising as being on the wane Profit barriers The top three profit traps when using mobile marketing are: Failing to track and measure the outcome of every campaign Wasting profit by sending all messages to the entire database Mistiming the offer i.e. not personalising the offer based on transaction history so it arrives at a time when the consumer is not pre-disposed to convert.

6 2. The size of the mobile revolution The impact of the mobile revolution is being felt by all businesses in multiple ways. The statistics below show the true scale of the mobile opportunity and the reach provided by this new and unique marketing channel. This is a global opportunity that cannot be ignored by marketing.

7 3. Detailed Results Q1. What do you use mobile marketing and SMS for at present? Offer messages have become the most common use for mobile marketing followed by information messages. One in eight brands are using mobile to attract back lapsed customers and one in 11 to reward loyalty and send offer coupons. These results demonstrate that those who are using mobile messaging in a proactive way are focusing more on existing customers than attracting new ones- an option that scored just 7%. The results also show that most brands are missing out on the opportunity to send hyper-local messages, respond to competitor activity and capture customer feedback. Surprisingly, one in nine brands currently don t use mobile marketing when the views on read rates is taken into account.

8 Q2. Which of the following marketing channels are fastest in terms of how quick it is to set up and deploy a campaign? (The graph sums to 200% as it shows all 1st and 2nd place scores for each marketing channel. E.g. 81% of people ranked Social Media in either 1st or 2nd place in terms of speed of deployment) When scores 1 and 2 are combined mobile and SMS is the fastest channel closely followed by social media. 55% of marketing managers identified SMS as the fastest channel. When we looked at last place ranking, TV advertising is thought to be the slowest channel by three quarters of respondents. If speed of action is vital these results show that SMS, social media and should be the main channels selected.

9 Q3. Please rank the following marketing techniques in terms of their ability to deliver an effective return on investment. i.e. revenue generated compared to the cost incurred (The graph sums to 200% as it shows all 1st and 2nd place scores for each marketing channel. E.g. 58% of people ranked in either 1st or 2nd place in terms of return on investment) SMS and are seen as the two most effective channels for return on investment. The jury seems to be out on social media because although (29%) ranked it in 1st or 2nd place, more than a quarter (26%) said it was least effective (i.e. ranked it as 7th most effective from 7). On the whole Radio Advertising is seen as least effective in terms of ROI. When the results for effectiveness are correlated with speed of deployment the top two channels are SMS followed by .

10 Q4. Please rank the following marketing channels in terms of how soon you would expect to see customers visiting after a campaign has been launched. (The graph sums to 200% as it shows all 1st and 2nd place scores for each marketing channel. E.g. 61% of people ranked Mobile & SMS in either 1st or 2nd place in terms of return on investment) SMS and social media are seen as the channels to trigger the fastest store visits after a campaign has been launched. Direct mail and billboards are seen as slowest. When the results are correlated with speed of deployment the top two channels are SMS followed by social media. When effectiveness is added replaces social media at #2.

11 Q5. Please rank the following marketing channels in terms of their ability to give you visibility of their effectiveness. (The graph sums to 200% as it shows all 1st and 2nd place scores for each marketing channel. E.g. 16% of people ranked Direct Mail in either 1st or 2nd place in terms of return on investment) When 1st and 2nd placed scores are combined over half of the respondents see marketing and SMS as able to give the most visibility of effectiveness. Radio advertising and billboards give least visibility of effectiveness.

12 Q6. What percentage of your current marketing budget is allocated to mobile marketing? Over half spend less than 10% of the budget on mobile but one in five spend as much as 20%. One quarter of brands do no mobile marketing. Based on the results for speed, trackability and ROI, this may represent a lost opportunity.

13 Q7. How does the budget allocation compare with the previous year? 29% of respondents said they had increased their investment in mobile in 2014 compared to % of respondents said they reduced their mobile marketing budget in 2014.

14 Q9. In 2013 our clients indicated that the following issues were high on their agenda when it comes to mobile marketing and mobile offers and coupons. We would like to have your assessment about what the priorities will be for 2014 Ensuring right offer, right person at the right time as well as improving conversion rates are the top priorities for mobile marketing in 2014 These are followed by increasing customer loyalty, brand consistency, speed and flexibility and data protection compliance. These choices possibly demonstrate that the use of mobile and SMS is maturing as brands begin to recognise the richer capability of the channel.

15 Q10. Please identify the three profit traps you would most like to avoid. The ZinMobi Profit Trap Index #1 Failing to track and measure the outcome of every campaign and therefore failing to identify which offers work best on a national and hyper-local basis #2 Wasting profit by sending all messages to the entire database rather than personalising messages and offers based on transaction history #3 Mistiming the offer i.e. not personalising the offer based on transaction history so it arrives at a time when the consumer is not pre-disposed to convert #4 Wasting profit by not targeting offers by transaction history i.e. giving away too much profit with high value offers for people who would come back for less #5 Not learning i.e. continuing to see mobile marketing as messaging only and not connecting to purchase transactions to increase the intelligence in the process #6 Increasing the cost of data compliance by having multiple mobile marketing suppliers across a franchise organisation The top profit traps selected reinforce the priorities for 2014 i.e. improving targeting and conversion rates. To do this requires better trackability and being more selective about who messages and offers are sent to. Getting timing wrong and failing to use transaction history to aid targeting are also seen as important traps to avoid.

16 Q11. What do you think is happening to the effectiveness and influence of traditional marketing and advertising channels (TV, Radio, Print)? With so much change in the marketing landscape in recent years with the rise of social media, mobile and the internet, it is perhaps not too surprising that brand managers (in about a 2:1 ratio) see the influence and effectiveness of traditional channels like radio, TV and print advertising as being on the wane.

17 4. Recommendations Based on the responses to this survey, we recommend the following: 1. Brands should use a combination of SMS and to deliver the most effective campaigns in terms of speed of deployment, speed of response, return on investment and trackability of value delivered 2. Brands should use transaction history to become more personalised and targeted with messages and offers 3. Brands should protect margins by running targeted campaigns to attract back high value lapsed customers 4. There should be a clear focus on the relative conversion rates and effectiveness of different marketing channels 5. Existing users of mobile marketing should test the effectiveness of hyper-local offers rather than just focus on organisation-wide campaigns 6. Those brands that have not used mobile marketing should trial it in the next 12 months particularly to drive loyalty and repeat purchase 7. Brands should trial social media but focus on tracking results as other channels may prove to be more effective in driving revenue

18 7. About ZinMobi ZinMobi is a breakthrough technology company that has developed an intelligent mobile marketing platform proven to drive instant revenue and profitable growth for retailers, fast food and restaurant chains. The Business was founded in 2010 by Brian Stephenson and Conor McAleavey to capitalise on the untapped potential of the mobile channel. Since then ZinMobi has built a world-class mobile marketing platform with data analytics at its core. While other organisations have been focusing on creating increasingly complex solutions that demand access to Big Data and target the rarefied few who own the latest technology, ZinMobi concentrated on using the one device everyone uses the mobile phone and the data that provides the best indication of purchase behaviour to trigger consumers to buy and to keep buying. This strategy has paid dividends. ZinMobi is now the mobile marketing provider of choice for a significant number of Ireland s leading retail and fast food chains, including: Centra, Four Star Pizza, Xtra-vision, Shaws, SuperValu and Woodies. The company has also received significant investment from Enterprise Ireland to support its international expansion. The ZinMobi platform enables retailers to deliver messages and offers consumers want to receive and, run everything from low cost, high impact campaigns that drive instant sales, to sophisticated proximity- based targeting that maximizes the consumer experience on the move both on a national and hyper- local basis. The intelligence of ZinMobi s offering enables retailers to generate revenue automatically once the system is set up correctly with minimum touch from them. All a customer has to do is agree the trigger points throughout the customer lifecycle at which they want to interject with marketing messages, agree on the offers and the system does the rest automatically selecting people who fit that profile and sending them a message with a coupon to trigger the desire to buy again. ZinMobi s approach also ensures full consent management and data protection compliance. With ZinMobi retailers can capitalise on the explosive growth of the mobile channel by adopting a phased approach to sales generating and loyalty-building campaigns. Proven with many of Ireland s top 10 retailers, the ZinMobi platform is now available in the UK and the USA. So confident of the ROI that will be delivered, ZinMobi provides a unique six-part guarantee. ZinMobi is headquartered in Dublin and has a development and support office in Kerry. Its intelligent mobile marketing and messaging technology is delivered as a software as a service and integrates with all major EPOS systems. It is proven to deliver revenue within minutes of a campaign being launched and to deliver a guaranteed return on investment To capitalise on the mobile revolution with a guaranteed ROI - contact ZinMobi today on +353 (0) or visit our website

19 LONDON DUBLIN NORTH AMERICA Suite Maidstone Buildings Mews Borough High Street London SE1 1GN T +44 (0) E 33 Fitzwilliam Place Dublin 2 T +353 (0) E 401 Bay Street Suite 1600 Toronto ON M5H2Y4 T E ZinMobi

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