Archive for the 'Marketing' Category

David Fallarme’s Look At Marketing to Gen Y

I read a great article from The Marketing Student that covered how Generation Y is changing marketing and I’d like to expand a bit on David’s ideas.

First, a quick rundown of David’s concepts (Full Article Here). David graphed the communication habits of Boomers, Gen X-ers, and Generation Y.

Boomers

Boomers - Credit David Fallarme

Gen-Xers

Gen Xers - Credit David Fallarme

Generation Y

Generation Y - Credit David Fallarme

David’s post continues on to discuss how these channels are used, and I’d like to take a look at how this affects direct marketers.

Direct marketing to the Boomer generation was the easiest; after all, postal mail and phone calls were regular forms of communication. Although I laugh at the thought, I can imagine people used to rush to the mailbox to see if they had any letters. Lacing this communication with the casual mailer or telemarketing call was successful because people trusted that medium for its relevancy.

For Gen-X it was similar, but AOL added a bit more to the mix. Direct mailers were overwhelming, and the slowness of snail-mail reduced its relevancy. A letter from a mailer was never as up-to-date as an e-mail or instant message; a direct mailer, was never as relevant as a newsletter or marketing e-mail. Interestingly enough, in David’s graphs he mentions instant message for Generation Y, but not for Gen-X; if you remember AOL had both e-mail and instant message. While IM would eventually win out as more relevant than e-mail, it wasn’t an easy medium to target as it didn’t have an “idle” feature that would allow messages to be delivered while the user was offline. This is probably one of the reasons IM has survived, somewhat unregulated, and has not had the same fall-out as e-mail.

Users are more likely to trust and respond to a medium that is used to keep in touch with what society, and more specifically, friends are doing.

Generation Y is overloaded with channels. From social networks to e-mail and instant message, most of them are noise. Thanks to GMail’s powerful SPAM filter, e-mail has been somewhat saved, but Gen Y does not check personal e-mail as frequently as their elders. Gen Y is also wary of signing up for newsletters or registering for a website with their actual e-mail (read: Gen-Y knows how direct marketers handle e-mail). Because e-mail is less relevant to Gen Y’s friends and family, it is a less effective marketing channel. Wall posts and PM’s are a bit more relative, but it’s nearly impossible to gain access to a Facebook user’s inbox or wall, and legitimate marketers would never try.

If you take one more look at David’s graphs, txt is the new channel that remains unscathed. Compared to IM, txt messaging has the advantages of being on-person and able to receive idle or off-line messages. And, as I’ve mentioned before, it’s less likely to follow e-mail’s fate because of the carrier approval process and universal keywords.

But, I saved David’s best graph for last:
Credit David Fallarme

It is extremely difficult to jump straight to a face-to-face meeting or phone call without somehow warming up the contact. Consumers are wary of sudden phone calls or face-to-face pitches, this is why these mediums are more urgent yet less frequent. David’s urgency graph is actually the funnel from initial contact to a face-to-face meeting, or the final purchase. As you move to the right of his graph, the lead gets hot, and the user is more likely to make the final jump.

Brands are complaining that the 18-25 year olds are locked in social networks that are difficult to penetrate. They are correct, and while Facebook, et al. can be an effective target audience, the current PPC and PPV models Facebook provides are not the right methods to reach that audience. When it comes to communication, and relevancy, 18-25 year olds are locked in text messaging.

- Ainsworth

Start Building Your Mobile Database

I sat through a great meeting yesterday with a direct marketing firm from Boca Raton. As I demoed our platform, we reviewed a couple of the firm’s ideas. A lot of direct marketing firms are dealing with e-mail or direct mail, which is a slightly different beast than SMS. There are particular ways to maintain conversions with mobile marketing, that wouldn’t apply for e-mail marketing. In addition, mobile marketing is about spending the time to build a database rather than simply catching and blasting opt-in messages.

This firm got the concept that many do not: Mobile marketing isn’t restricted to a stand alone campaign that can be monetized immediately. In fact, a well designed mobile marketing strategy will have always-on campaigns that support other direct marketing efforts. Your brand’s short code is equivalent to it’s URL. When I work with a client, this is one of the first concepts that I establish. Once your short code is live, you need at least one campaign that will run constantly and collect interested consumers who read your marketing material. Mobile activates traditional marketing in a way that websites cannot. Missing this concept causes a lot of brands to avoid mobile marketing because they aren’t quite sure how to monetize it.
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How to Launch Your iPhone SDK Application

A new wave of the cell phone market has begun: the release of the iPhone SDK. While there has been a small market for mobile based applications, entirely new companies, some supported by KPCB’s $100 million iFund, will be spawned to produce iPhone supported applications. While the actual extent of this marketplace is still unclear, it still hits with the same sincerity that something is happening in the mobile world. I’d bet it’s unlike anything we’ve seen before.

Mobile marketing and mobile content distribution functions at a more powerful level than electronic newsletter subscriptions. Undoubtedly, electronic newsletter subscriptions are key to maintaining close access to former customers, current customers, and future customers. At the touch of a button, businesses can easily deliver news to the e-mail boxes of subscribers. Therefore, users are receiving their content when you need them to, and not when they stumble upon it, many weeks later - if ever.

The truth is, those were valuable, back when users were subscribed to a select few lists and were more open to mass e-mails. Now users are opting out of these newsletters or driving them to their junk box; this brings new value to the RSS feed, allowing users to have yet another method to cleanly manage information they wanted to read while sparing their inboxes. While, the RSS reader is still increasing in value, it does not hit the key point of business marketing: reliably pinging your audience at the crucial moment - the tipping point.

Don’t forget: the iPhone has SMS!
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7 Ways to Maintain Conversions in Mobile Marketing

The mobile marketing medium is defining its future as a viable channel for consumer impressions and conversions. Unlike blast e-mail marketing, which failed because of a lack of regulation, mobile marketing has shown tremendous conversion rates. E-mail marketing is now at such a low-conversion, because of the decreased sensitivity of the end-user, it’s borderline useless. Mobile marketing and text messaging is a viable impression and conversion medium because users have such a high sensitivity to the notifications they receive. Don’t be fooled, there’s more to it than sitting in their pocket - that’s just one, albeit, critical factor - it is also because the abuse rate has been low. Cell phone users are very aware of the ability to turn off notifications for text messaging, and if markets abuse this service, they will; much like many have switched off notifications for e-mails because the iPhone has no spam filter.

The carrier’s strict regulations have benefit mobile marketers in this fashion, as they have managed to prevent end-users from feeling spammed. As mobile marketing begins to take off in 2008, and shortcodes reach the spotlight, more of this responsibility will rest on the Application Service Providers and mobile marketers. In fact, the future of 50% conversion rates rests in the hands of the mobile marketers; following a few simple steps can preserve the most affordable and most profitable medium to hit marketing.

1. Double Opt-In
While only T-Mobile and Verizon wireless require double-opt-in for marketing messages, requiring all participants to double opt-in will significantly reduce the potential that you will have an unwilling subscriber on your marketing channel. When users opt-in, make sure to send a follow-up message asking them to reply with Yes, Y, or something similar, to confirm they want to receive the messages you’re interested in sending them. Confirmed users are interested in receiving messages and you won’t run into complaints.

2. Send Like Offers
Not only is it a violation of the mobile acceptable use policies to avoid this rule, it is also common sense. If you have a valid double opt-in registration for television coupon offers, don’t send alerts for the local car wash. Unrelated, but demographically targeted offers are more appropriate for appended messages, where the user has solicited information and you are providing relevant advertising in the remaining character messages of the information they requested. To emphasize my point, I was excited to sign up for mobile alerts through http://www.wiialerts.com, knowing that I would only receive mobile alerts when Nintendo Wii’s hit Amazon.com at their normal $249 price. So far, that has been all I have received, and I will keep my subscription despite already having bought a Wii from the first set of alerts sent to me - just a few days before Christmas. If this were to change, I would remove the service and never think twice about rejoining. Send users what they signed up for, and they’ll stay subscribed for as long as they’re interested in converting on your messages. Send users something they’re not interested in and they’ll never rejoin your services.

3. Don’t Bait Your Call-To-Action
If you are offering a Call-To-Action that requires a conversion off of the handset, such as visiting a full html website, be very clear with the offer to the end users. Nothing screams UNSUBSCRIBE like a user that took time to sit down at his/her computer only to find out they’re not getting what they were told. While a baited Call-To-Action may receive more conversions from handset to website, the conversion from website to product will not be any better. An honest Call-To-Action will have great conversion rates and leave consumers satisfied with your mobile offering.
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Short Codes Will be in Every Ad Like URLs

In an earlier conversation, Mark Smith, 3Cinteractive’s Chief Operating Officer, brought up his thoughts on a UK study by Consumer Analysis that produced some interesting statistics.

  • Nearly one in two consumers fail to respond to advertising because they don’t remember key details.
  • 44% of mobile users between 18 and 60 fail to respond to advertising campaigns because they simply forgot the brand name.
  • Over 50% of respondents said they would like to access further information by sending a text to a shortcode.
  • 51% said they would find it useful to use text as a mechanism to get access to information related to an advertisement.
  • 74% said they would use their phones to request a brochure.

The majority of advertising we are exposed to has a web url located in it, and for those larger brands that don’t (e.g. Coke) we know how to find them on the internet (e.g. http://www.cocacola.com). There was a period before the web boom where companies were uneducated and unsure about the web and how to utilize it for their business. Today, many companies will create entirely new domains for a short advertising campaign. But, even with the growth of broadband internet, WIFI, and laptop computers, less consumers are carrying their laptops into the living room before their mobile phone.

Many consumers are genuinely compelled to visit a company’s website to find out more information, but any well scripted TV show will keep a viewer glued to their chair and not running to the living room to scan a website. Consumers are asking for an easier way to communicate with brands and find more information. That easier way is their mobile phone.

Consumers are clearly calling and texting from their mobile phones as part of their everyday life, and this includes the living room. I’ve actually known friends that text message back and forth during sporting events and television shows. Brands can, should, and will, if they’re smart, capitalize on this availability by plugging their short code in their advertisements. But, this radical change goes beyond simply giving the consumer another avenue to pull brand information, it allows brands to push information.

If a brand successfully pulls a consumer to its website, it must, through an artfully designed squeeze page, entice the user to subscribe to a newsletter or other VIP service. This has a lot of steps, and neither of the steps have a 1:1 conversion rate. On the other hand, mobile short codes are both a way for a consumer to access information and an opt-in to receive additional alerts. It’s a win-win for the consumer and the brand.

- Ainsworth