Marketing: The Mobile Conundrum. An Experian CheetahMail white paper, September 2009

Transcription

1 Marketing: The Mobile Conundrum An Experian CheetahMail white paper, September 2009

2 Contents Page 1. Foreword: From PC to mobile 3 2. Introduction: The rise and rise of the smartphone 4 3. Research summary: Market size and characteristics Young people are active mobile users Targeting customers outside of work hours New considerations for design and messages 6 4. Best practice: Questions to ask yourself Brand Design Audience Mobile web 8 5. Conclusion: Embracing the mobile channel Marketing: The Mobile Conundrum

3 1. Foreword: From PC to mobile Steve Lomax, Managing Director of Experian CheetahMail EMEA marketing is rising in popularity. Over the last few years, it has proven to be an effective and measurable way to communicate with individuals and generate better marketing returns. It has also traditionally been looked upon as a PCcentric activity. The fact that people read marketing s on their PC means that they have an easy return path to interact with the . Hyperlinks within s take the recipient directly to the relevant section of the advertising brand s website, where they can pursue their interest further, find out more information and make a purchase. But the way consumers access has started to change. Increasingly, people are using their mobile phone to send and receive s, especially when on the move. When we think of marketing to mobile phones, we tend to think of text messaging. Or in more recent times, mobile advertising where the consumer sees banner ads as he or she browses around mobile websites on their phone. The fact that some people are now viewing communications through the mobile channel raises important questions for marketers. What segment of the customer base does this apply to? What type of messages cut through in this channel? How does the communication appear on the device? The list goes on. In an era where the mobile phone is now routinely used to check and respond to s, it s clear that marketers can t afford to ignore the mobile channel. The question is how do you make the best and most effective use of it? 3 - Marketing: The Mobile Conundrum

4 2. Introduction: The rise and rise of the smartphone If you re looking for evidence of the rapid growth in smartphone ownership, you only have to look at the number of people reading and responding to s on their phones on the train, in taxis or on the bus. The Blackberry, once the preserve of the high-ranking executive, is now standard issue in many small to medium sized companies as well as large corporations. And it s not all about the Blackberry. It might have been the first widely recognised smartphone, but it s now just one of many in a hugely competitive sector. It s a sector in which the traditionally dominant players, such as Nokia and Research In Motion have been joined by a raft of new contenders, including Apple with its iconic iphone, HTC, Samsung, Sony Ericsson and Toshiba. More concrete evidence is provided by the analyst, Informa Telecoms & Media, whose statistics show that almost 162 million smartphones were sold in Informa also predicts that sales of smartphones will grow by 35.3 per cent year-on-year, increasing to 38 per cent of new handsets sold by There are several factors which have driven the growth in smartphone ownership. One is the operator subsidies that make the cost of owning sophisticated handsets much more affordable than it would otherwise be. Indeed, in many instances, so long as the customer commits to the appropriate monthly tariff, the handset itself is free. The second factor is the flat-rate data tariffs that many mobile network operators have introduced, offering unlimited data usage (subject to a fair usage limit) for a low monthly fee. This gives consumers the confidence to buy a phone that can be used to send and receive s, and browse the internet, safe in the knowledge that they will not run up a huge bill by doing so. Thirdly, the increase in productivity that results from being able to access s on the phone is now well appreciated across companies of all sizes. Indeed, in small companies, the benefit of having executives who are always available on is arguably greater than it is in large corporations, where there are more likely to be others who can answer the question or solve the problem at hand. 1 Source: Mobile Operating Systems: The impact of open source and importance of user experience. (March 2009) Marketing: The Mobile Conundrum

5 3. Research summary: Market size and characteristics So evidence seems to suggest that mobile phone users could be an interesting consideration for marketers. To support this evidence, Experian commissioned YouGov² to look at how consumers are currently using their mobile phones and what types of marketing messages they are most amenable to. A UK representative sample of 2255 adults was surveyed. 3.1 Young people are active mobile users The results reveal that 24 per cent of consumers currently use their mobile to read s and that a further 33 per cent plan to do so in the future. Delving a bit deeper, these figures become more compelling when we look at the younger generation (18-24 and year old age brackets). In this group, 39 per cent currently use their mobile phones to read s and a further 35 per cent plan to do so. Combined, that means three out of four people could soon be using this channel to read communications. Do consumers read s on their mobile? Total Age Base 18 to to to to Read s on mobile phone Plan to read s on mobile phone in the future DO NOT plan to read s on mobile phone in the future Do not have a mobile phone 24% 40% 38% 28% 19% 14% 33% 36% 33% 36% 33% 29% 39% 22% 28% 33% 44% 51% 4% 2% 1% 3% 4% 6% This research is supported by some statistics from analyst house Forrester. Research carried out in the United States by Forrester 3 found that mobile users are younger than traditional users, with almost 70 per cent aged under 43. It also revealed some interesting characteristics about this group. They are: Professionally oriented, with incomes 14 per cent higher than the average traditional user. More likely to be employed full time and career-motivated. Trend-conscious, with almost one quarter saying they are interested in owning the best brands, and 25 per cent saying they look for products that are consistent with an image they like. Less price-sensitive than all other users. Less hostile to advertising, with more than half saying that they spread the word about products they like to their friends. Based on the above, this group would be an attractive target for a broad spectrum of organisations. 2 All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2255 adults. Fieldwork was undertaken between 28th August - 1st September The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). 3 North American Technographics Benchmark Survey, Forrester, Marketing: The Mobile Conundrum

6 3.2 Targeting customers outside of work hours Another interesting fact from the YouGov research is that more than half of the respondents who read s on their mobile do so over the weekend. This provides a window of opportunity for marketers who have usually targeted customers on week days, when they are more likely to be at their PC. Event alerts or sales notifications could be particularly effective at driving consumer activity on weekends. In addition to the above, almost half of respondents read s on their phone throughout the day, not just within the traditional 9-5:30 working hours. 3.3 New considerations for design and messages The survey also looked at what would prevent consumers opening an on their mobile phone. A third of all respondents say that poor formatting is a major barrier, while 30 per cent said they would not open an from a brand they did not recognise. Eighteen per cent also said that subject lines were important and those that were not compelling would be ignored. In many ways this goes back to the best practice tips that marketers should be adopting regardless of channel: use compelling subject lines, make your brand prominent, target individuals with relevant messages, etc. But it does also highlight the fact that consumers have a very different user experience on their mobile. What looks good on a PC can be almost unreadable on the smaller mobile device. Also, in a regular marketing campaign, you don t have a lot of time to get your message across; mobile users are generally on the move so have an even shorter attention span. These challenges are particularly key because, with many people using mobile devices to triage their s, if your is deleted from the mobile, there s absolutely no chance of your message being read when the individual returns to their PC. It is also important to consider the types of messages that consumers are open to on the mobile. As mentioned above, messages have to appeal to an individual on the move and be easily digestible. With this in mind, it is understandable that respondents said they are most receptive to receiving marketing s on event alerts, and were least receptive to receiving company newsletters. s that are difficult to read or don t have immediate relevancy won t cut through in the mobile channel. What would stop you opening s on your mobile phone? If the subject line was not compelling 18% The formats are difficult to read (e.g. too much text, images don t show up properly etc.) 33% If the was from a brand that I did not recognise 30% I am worried about viruses 28% If I do not know who the sender is 39% 0% 5% 10% 15% 20% 30% 40% 50% 60% 6 - Marketing: The Mobile Conundrum

7 4. Best practice: Questions to ask yourself Whilst you cannot control how and when your audiences read your communications, it s worth thinking about the impact of increasing mobile readership as it relates to your specific audience, brand and messages. 4.1 Brand If the is being received on the consumer s mobile phone, only the subject line and From field is likely to be visible as there is no preview pane. These therefore become more critical than ever. As always, identify which products and keywords target customers are looking for and use this information to form your subject lines. Also make sure that your brand features prominently. If it s a brand they know and trust, the chances of the being opened will be much higher. 4.2 Design One of the major challenges is creating an that looks good and can be read on the mobile device. The size of the screen is obviously considerably smaller on a mobile device than the traditional PC and mobile devices vary considerably in how they render content. Testing will reveal the differences. The Apple iphone and Blackberry, for example, now render HTML quite well but there are many mobile devices that don t. Text versions usually render well on most devices but even here, it s still worthwhile reviewing your text versions so that they are optimised for the small screen. Sending a multi-part (MIME-format) can help. This includes both an HTML and a text version within one envelope. If forwarded, multi-part s will also render correctly on any user s client and anti-spam filters are friendlier towards multi-part s than towards HTML-only s. Another option is to use a pre-header link to a mobile version, such as Reading this on a mobile device? This will allow you to optimise your communications for both the PC and mobile. Whichever option you choose be sure to test the on different devices before you send it Marketing: The Mobile Conundrum

8 4.3 Audience Think about the profile of your audience and whether they might be major users of smartphones. If they are, then look to segment your communications into types that are timing-driven such as sale ends at 9pm notices and more programmatic communications such as monthly newsletters. Timing-driven s with urgent messages should be kept short so that they are easily read on mobiles, whereas more programmatic communications can be optimised for computers but still be readable on mobile devices. Consider the timing of your different types of communications too. For example, a retailer with high street stores might consider sending sale ends at 9pm at around 5pm when people are leaving the office to remind them to stop on the way home. As the next step in building a more accurate picture of your subscribers and to drive the right types of messages to them, use your ongoing communications to encourage them to identify themselves as people who do sometimes access s on their mobile phone. Provide a Mobile Format option at sign up, along with Text or HTML. Then you can look to segment your mailings with increasing accuracy to target mobile readers as a distinct group. 4.4 Mobile web A final consideration is looking at how your landing pages and website render on the mobile device. Creating a.mobi version gives website visitors using a mobile device a much better user experience and makes it easier for them to transact on your site. This means that any calls to action you use on your campaigns which require a visit to your site have a greater chance of being acted up when read on a mobile. Rather than people waiting until they are back at their PC after which the message might have lost its urgency and appeal Marketing: The Mobile Conundrum

9 5. Conclusion: Embracing the mobile channel The number of people accessing on their mobile phone has risen sharply in recent years and is set for further growth, as even entry-level phones become data-capable, and the mobile networks make it more and more affordable for people to access data services on their phone. The type of person accessing on their mobile phone tends to be younger, more affluent, and more advertising-friendly than the average user. While this demographic is not in every brand s target audience, for those who are trying to reach this type of user the mobile channel is simply too compelling to ignore. With the number of people that read their s on the move growing rapidly, it s time to start thinking about the importance of this channel to your campaigns, bearing in mind your audience and the types of messages you can and could send. marketers should not only embrace the unique opportunities the channel offers in terms of driving immediate actions (online or elsewhere), but also the impact of having access to audiences 24x7x365 and the possibilities and dangers involved Marketing: The Mobile Conundrum

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