The Changing Face of Mobile Customer Engagement

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1 The Changing Face of Mobile Customer Engagement Sheryl Kingstone, Research Director, Yankee Group Mobile Research Summit: Data & Insights 2014 June 19, 2014 Page 1 Copyright 2014

2 Agenda Why Mobile is Changing the Face of Business The Five Initiatives To Improve Mobile Engagement What Does This Mean to You? Page 2 Copyright 2014

3 60% of consumers time on a mobile phone is spent interacting with applications. With 250 million smartphones and 280 million tablets in use in the U.S. by 2017, apps represent a large opportunity for businesses to win new customers and engage their existing client base. Page 3 Copyright 2014

4 Why Mobile Customer Engagement Is Important Page 4 Copyright 2014

5 Traditional Channels Are Declining in Preference Page 5 Copyright 2014

6 Mobile Retail Engagement Success Varies Page 6 Copyright 2014

7 Mobile Provides Benefits Throughout the Customer Life Cycle Personalized, timely offers can increase purchase frequency, grow basket size and ARPU, and differentiate a company from its competitors. 91 percent of respondents to our U.S. consumer survey show an interest in mobile coupons, making coupons a great new customer acquisition strategy. Mobile loyalty programs that reward users by tying rich customer profiles to actual transaction data provide the best foundation for success. Engage and proactively communicate to strengthen relationships, increase loyalty and reduce unnecessary calls to the contact center. Page 7 Copyright 2014

8 1. Beacons Drive Contextual Engagement Most retailers and brands stated a positive outlook toward embracing location-based technology to enable easier discovery of relevant information Page 8 Copyright 2014

9 2. Mobile First Will Power the Omnichannel Journey Engaging at the right time and with the right message can improve results by 40% 60 percent of customer interactions are interrelated across multiple channels, including newer, more mobile channels such as social media, SMS and in-app marketing. Page 9 Copyright 2014

10 3. Mobile Loyalty Programs Are in Demand Using mobile as the glue that binds payments with loyalty and rewards creates a compelling use case that can drive consumer adoption. Page 10 Copyright 2014

11 4. Go Beyond Built the App Done Mentality Page 11 Copyright 2014

12 5. The Need for Insight is Across the Journey The exponential growth of unstructured data is arming CMOs for effective campaigns and is set to transform customer experiences. Page 12 Copyright 2014

13 Tying Behavior to Desire Page 13 Copyright 2014

14 Mobile User Data Insight Provides Answers to Many Questions Time What is the right time of day? Does it matter? Location Does location Impact conversion? Can we tie context to the location? Geofence vs ibeacon vs. instore wifi strategies? Network/Device Application Activities Demographic What Make, Model and OS is showing the most engagement Are there performance issues across 3G, LTE, Wifi? Is there anything to notice across Networks? Bottlenecks? How long did the user spend in the app? Where are the users leaving the app? Behavior flow Different apps on the device? What are they doing Web browse, text, call etc? Do they behave differently or the same compared to our more profitable customers? Who are my customers? Either through a direct relationship or anonymized? Page 14 Copyright 2014

15 Insight Drive Success Cross Promotion 38% more downloads and 63% revenue increase after crosspromotion campaign A/B testing Increase usage rates with real-time improvements in mobile app optimized to successfully boost usage rates 22 percent in a short period of time. Shopping Cart Improvements Better insight improved shopping cart retention led to roughly $3million in additional revenue Ad Revenue Improvements 3.5 increase in click-throughs and 60% higher in effective cost per thousand impressions. (ecpm) Personalized Offers Over 50% users are adding profile and preferences for personalized offers 13.4% to 100% Click-through rate on top 25% of offers Page 15 Copyright 2014

16 Mobile Provides Benefits Throughout the Customer Life Cycle Page 16 Copyright 2014

17 Recommendations Transition best practices from the Web to mobile apps to ensure customer engagement. Marketers have infinite opportunities to modify, test, analyze and personalize their Web sites. However, mobile apps are different: They are a unique channel and thus require a platform that has been purpose-built for managing the ongoing life cycle of customer engagement in a mobile app environment. Act on insight to achieve higher return on mobility. Just having the data without acting on it won t deliver solid business results. When it comes to mobile app analytics, many technical employees may have easy access to performance data, but non-technical users can t get the right data, trust the data or get actionable insight from it. It doesn t help to have data if the right people can t use it to improve business results. Location, Mobile Loyalty Programs, Cross Channel and Social All Drive Need for MobileFirst thinking. Mobile loyalty plans provide the ability to get a rich customer profile. That information can be used more effectively to create more effective and targeted real-time offers. Page 17 Copyright 2014

18 Thank You! Sheryl Kingstone Research Read our insights and sign up for our newsletter at maps.yankeegroup.com Fan us at facebook.com/yankeegroup Follow us on Read updates on LinkedIn linkedin.com/company/ yankee-group Page 18 Copyright 2014

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