Mobile Marketing for the Restaurant & Retail Industries

Mobile Marketing for the Restaurant & Retail Industries

The restaurant and retail industries require frequent consumer engagement in the forms of advertisements, promotions, direct mail, email marketing and social media to maintain or increase market share. With all of the noise hitting consumers, it s imperative that you become smarter about what you re saying and to whom you re saying it to draw attention to your brand. Mobile marketing is now a crucial player in today s saturated world, and these are some steps to incorporate it into your efforts. Why Mobile Marketing? First, you may be asking what is so special about mobile marketing. The truth is in the numbers. There are currently 6 billion mobile subscribers worldwide. This equals 87% of the world s population. (Source: Digital Buzz Blog) 91% of adults keep their phones within arm s reach 24/7. (Source: Morgan Stanley) 9 out of 10 mobile searches lead to action. More than half lead to sales. (Source: SearchEngineLand) Brands using SMS successfully reach 95% of smartphone and non-smartphone users. (Source: GoMoNews.com) Mobile performs 4-5x better than online ads for key metrics such as brand favorability, awareness and purchase intent. (Source: Nielson Study, 2012) Mobile coupons receive 10x higher redemption rates than print coupons. (Source: GoMobileBook.com) 33% of U.S. mobile users prefer offers via text to mobile Web (21%), Apps (11%) and voice mail (8%). (Source: DMA.org, 2011) In 2013, mobile phones have overtaken PCs as the most common web access devices worldwide. (Source: Gartner.com) Adults spend 10.1% of their media time on mobile, but only 0.9% of ad spends are on mobile. (Source: emarketer.com) 95% of smartphone users have searched for local info. (Source: Google) 90% of SMS text messages are read within 3 minutes (Source: Juniper Research) 9.8 trillion text messages were sent in 2012. (Source: CMO Council) 78% of retailers plan to invest in mobile this year. (Source: The E-tailing Group Inc.) 95% of smart phone users conduct restaurant searches and 90% of those users convert within the day. (Source: Mobile Mixed) 95% of 18-29 year olds text. (Source: Pew Research Center) 88% of 30-49 year olds text. (Source: Pew Research Center) 82% of 50-64 year olds text. (Source: Pew Research Center)

Forms of Mobile Marketing Mobile marketing takes many forms. Some are more cost effective than others and are better suited to restaurants and retail stores. Below are a few options to consider. Mobile Apps: An application for smartphone or tablet users that can be customized for your business. They can range from selling products to games to functions like email, calendars, etc. o Positives: Users can interact with your business without having to search online and can showcase a company s creativity. o Negative: They can be costly if a template isn t used. Users must have a smartphone or tablet with Internet capabilities. QR Codes: A customized bar code that allows customers to visit a mobile version of a website on a mobile phone that is enabled to scan the bar code. o Positives: Users go directly to a business s site instead of doing a web search. QR codes can be free if a site offering this service is utilized. Eliminates the need for users to type a long URL. o Negatives: Many people do not know how to use them and they require an app and smartphone. Mobile Ads: Equivalent to web ads but are displayed on a mobile version of a website. o Positives: More people are using mobile devices to access the web than PCs, which increases chances of being seen. Can be affordable but this varies on pay structure. o Negatives: You need a smartphone or internet-capable mobile device to view these. Can be expensive but this varies based on pay structure. SMS (Short Message Service): A text message sent to consumers containing relevant marketing messages. o Positives: Ability to reach consumers anytime, anywhere. No need for a smart phone to reach this audience. Can be cost effective. o Negatives: Text-only so no visual elements are involved. MMS (Multi-Media Message Service): Text messages that use rich media such as video, photos, etc. o Positives: Well suited to today s visual culture in marketing. No need for a smartphone to reach this audience. Can be cost effective. o Negatives: Not a huge demand for this in the marketplace. Geo-Fencing: When a consumer is within a certain specified distance from a business, they automatically receive an SMS text message. o Positives: Ability to reach consumers near your business. o Negatives: Need permission prior to sending a message so this limits whom you can contact.

Where to Begin When it comes to mobile marketing, SMS Text Messaging is one of the most versatile and cost-effective tools. It can be especially beneficial for B2C companies such as retail stores and restaurants due to their inherent need to share information about products or services. Whether you re a diner offering an early bird discount, or a boutique sharing fashion tips, SMS allows you to get your message to an audience in a concise 160 characters. Not only is SMS to the point, but it also allows you to reach your audience anytime, anywhere, which is a marked advantage over other forms of marketing. It permits you to create a database of subscribers that can be contacted on a regular basis. Since subscribers must opt in, it means that they want to hear from your business think of it as your customer retention or loyalty marketing strategy. SMS also gives you the ability to push specific products to consumers or other business people, drive traffic in-store or online and highlight events. Information about subscribers can be collected (email addresses, zip codes, etc.) to ensure multiple forms of contact or to hone in on buying habits. Why use SMS? How Much to Budget SMS programs can be customized to fit specific needs, and prices can range from less than $50 to tens of thousands per month, depending on service provided and size of audience. The lower end of the price spectrum generally applies to a self-service approach in which a business itself handles all aspects of a campaign while leasing use of the SMS service from a third party. The alternate option is to work with a fullservice firm that provides a range of services, usually including writing and implementation. The cost is higher in this approach but can still be a viable option for businesses of varying size.

Learning Curve Marketers of retail stores and restaurants are already wearing multiple hats, which begs the question of how much of a time commitment SMS marketing may be. Because there is a fairly high learning curve when it comes to understanding the ins and outs of an SMS program, the hours involved are dependent on which type of service a business chooses. If a self-service program is chosen and there is little to no support given, marketers will need to put in a lot more time to ensure that they are aware of all industry regulations and best practices. This is an ongoing process as regulations can often change and need to be adhered to avoid possible fines. If a full-service approach is taken in which a company is working with a mobile marketing firm, the learning curve is considerably smaller due to having industry experts guide you through the process. A fullservice firm should also stay abreast of changing regulations and notify clients accordingly. SMS Case Study A chain of convenience stores based in Madison, Wis., worked with a full-service mobile marketing firm to develop an SMS text club. The main goal was to promote its coffee line while also driving traffic in-store. A series of SMS text alerts were sent to subscribers with an offer for a free cup of coffee as well as other exclusive product offers. The campaign was supported by radio advertisements and social media. The end result saw a 90% redemption rate on free coffee offers along with customers spending on average an additional $7 on goods in-store. Integrating SMS with Your Existing Marketing Efforts For restaurants and retail stores, it s important to stay top-of-mind for your target audiences. That s why frequency matters so much to these industries. Common strategies include print/radio ads, coupons, loyalty marketing, email marketing, SEM and social media marketing. SMS marketing can be worked into the mix with a frequency just beyond social media (several times per day) and email marketing (1-2 emails per week), meaning around 2-4 alerts per month. You also could replace efforts like coupons with SMS marketing. Remember that because of the high response rate for SMS messages, you ll want to save these alerts for your most important or time-sensitive promotions. Don t send an SMS message just for the sake of sending a message; that s what you have social media platforms for. If you notice that your mobile marketing efforts are bringing better returns than other efforts, then you should certainly consider replacing those efforts permanently with mobile marketing.