Consumer Perceptions of Mobile Marketing for StrongMail. Lindsey Colella, Senior Community Manager

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1 Consumer Perceptions of Mobile Marketing for StrongMail Lindsey Colella, Senior Community Manager June 29, 2012

2 Forrester s Online Community Overview A community of 2,000 US general population consumers recruited from Forrester s online Technographics surveys. MEET OUR COMMUNITY MEMBERS GENDER: AGE: LIFESTYLE: Male 48% 21% 18% 19% 15% 27% 67% say technology is important in their lives 68% watch 1-5 hours of TV per day Female 52% % spend 1-5 hours per day on the Internet for personal use

3 Objectives and Methodology OBJECTIVES To understand how general online consumers prefer to receive promotional messages via , SMS and apps. METHODOLOGY Forrester fielded a short survey to their MROC of 2,000 general population consumers. They were asked a series of questions regarding interest and desired frequency of receiving promotional messages on their mobile device. Activity Type Activity Title Respondents Survey You ve Got Mail n=322

4 Key Findings Overall, smartphone owners are more open to receiving promotional messages from brands they like compared with those who own standard mobile phones. Consumers are still hesitant to adopt in-app promotional messages and SMS messages even smartphone users though they have a higher overall interest than non-owners. In terms of frequency, all consumers are open to receiving promotional messages via at least once a week. However, when it comes to SMS and in-app messages, interest in receiving these in any capacity decreases. When asked about receiving any other types of messages via SMS or in-app, almost three-quarters of respondents would prefer not to receive them. Of the respondents who do receive promotional s on their mobile devices, most read it immediately and know fairly quickly whether it s something they want to delete or keep. Few respondents have made a purchase after receiving any type of promotional message whether it s through , SMS or in-app. Promotional s among smartphone owners have the most success for resulting in a purchase with a little over a third of this group reporting they have done this previously. Smartphone owners experience the most challenges when attempting to interact with a brand via their device. Around a quarter say they experience some type of issue while another quarter report no problems at all. Almost all standard mobile phone users do not interact with brand via their device. Retail brands by far earn the most credit for having exceptional mobile marketing programs. In particular, respondents comment the most on clothing or department store retailers and grocery stores.

5 Smartphone ownership and location based offers are most influential in whether respondents are interested in receiving promotional messages from brands To what extent are you interested in receiving promotional messages from your favorite brands on the following channels? Please indicate your level of interest below on a scale of 1 to 5, with 5 being very interested and 1 being not at all interested. SMS (Regardless of my location) Top 2 box - Interested Neutral Bottom 2 box - Not interested Total respondents 23% 19% 58% Smartphone owners 30% 21% 49% Standard mobile phone owners 12% 17% 71% SMS (When I'm near a location with a relevant promotion) Total respondents 29% 19% 52% Smartphone owners 38% 21% 41% Standard mobile phone owners 17% 17% 66% 6

6 There is less interest in in-app messaging however, location based offers among smartphone owners are still the most interested group To what extent are you interested in receiving promotional messages from your favorite brands on the following channels? Please indicate your level of interest below on a scale of 1 to 5, with 5 being very interested and 1 being not at all interested. In-App Messaging (Regardless of my location) Top 2 box - Interested Neutral Bottom 2 box - Not interested Total respondents 20% 21% 60% Smartphone owners 29% 23% 48% Standard mobile phone owners 7% 18% 75% In-App Messaging (When I'm near a location with a relevant promotion) Total respondents 25% 23% 52% Smartphone owners 36% 27% 38% Standard mobile phone owners 10% 19% 72% 7

7 Once a week is the preferred frequency for receiving promotional messages; respondents still favor for these communications How often, if at all, do you want to receive promotional messages from your favorite brands on your mobile device? Once a week or more often Once a month Never 52% 65% 34% 32% 4% 8% 44% 16% 7% 29% 8% 43% 10% 5% 9% 40% 12% 23% 62% 60% 9% 47% 77% 63% 11% 46% 85% Total Smartphone respondents owners Standard mobile phone owners Total Smartphone respondents owners Standard mobile phone owners Total Smartphone respondents owners Standard mobile phone owners Via Via SMS Via In-App Messages 8

8 Respondents are not interested in receiving other types of messages from brands via SMS or in-app messaging Are there any other types of messages you want to receive from brands via the following mobile channels? SMS In-App Messaging I don't want to receive messages from brands via SMS on my mobile device 64% 72% 83% I don't want to receive messages from brands via SMS on my mobile device 64% 73% 85% 24% 25% Alerts or notifications 29% Alerts or notifications 32% 17% 15% 13% 9% Total respondents Customer Service 7% 17% Customer Service 6% 12% Smartphone owners Standard mobile phone owners 9

9 Respondents who receive promotional on their phone immediately decide whether they want to keep it or delete it What do you do with promotional you receive on your mobile device? Total respondents Smartphone owners Standard mobile phone owners I open it and then either delete it or decide to open it again later on a different device 11% 27% 40% I wait to open it on another device with a larger screen 4% 15% 23% I open, read and click through on my mobile device when presented with an interesting offer 4% 13% 20% I don't access on my mobile device 18% 45% 80% 10

10 While making a purchase after receiving a promotion message is uncommon, proves to be the most common channel where this occurs, particularly among smartphone owners Have you made a purchase after receiving a promotional message on your mobile device via any of the following channels? Total respondents Smartphone owners Standard mobile phone owners 23% 32% 6% 10% SMS 9% 3% 3% In-App Messaging 6% 1% 75% I haven't made a purchase 65% 88% 11

11 About half of Smartphone owners engage with brands on their device and around a quarter experience some issues while doing so Almost all respondents who do not have a smartphone, do not interact with brands via their device Have you encountered any challenges when interacting with brands on your mobile device? Total respondents Smartphone owners Standard mobile phone owners Links to websites that aren't optimized for mobile viewing templates that aren't optimized for mobile viewing Network connectivity or slowness I am not experiencing any challenges I don't interact with brands on my mobile device Other 4% 3% 2% 1% 1% 2% 18% 28% 17% 28% 15% 24% 18% 23% 10% 41% 59% 85% 12

12 Retailers are among the main brands that have exemplary mobile marketing, primarily because of the deals they offer Brick and Mortar Retail Food and Grocery Retail Online Retail and Deal Sites Technology Retail Drugstore Retail Mobile Other Bath and Body Works Bliss Spa Bed Bath and Beyond Chico s Express Fashion Bug Home Depot JC Penney Kmart Kohl s Michael s Sierra Trading Post Target The Limited Victoria s Secret Wal-Mart Hy-Vee s KFC Meijer Papa Murphy s Williams Sonoma Amazon Craigslist DealChicken EBay Groupon Overstock Apple Cisco HP IBM CVS Walgreens AT&T Motorola Sprint Telestra T-Mobile Tracfone Verizon Blockbuster E*TRADE GetGlue Marvel Comics Redbox UPS 13

13 Hy-Vee's SMS promotion is especially good. About once a week they send a text with a coupon code for an especially good deal on a grocery item. It's often a good enough deal for me to make a special trip to the store. I wouldn't say particularly good but Target does an okay job of texting mobile coupons once a week. Fashion bug and Target send mobile coupons that I use. Amazon. They have recommendations and always offer specials based on history of spending and browsing. CVS just this morning sent a promotional text. I thought the savings was worth it and acted upon it today. 14

14 Thank you Lindsey Colella

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