Tag Archive for 'Text Messaging'

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

Mobile Marketing Best Practices: Convert

The following is part 2 of a 3 part introduction to mobile marketing best practices.  You can find part 1 here and part 2 here.

The beautiful thing about mobile marketing is its ability to act as both a capture medium and a conversion medium.  Ideally, successful mobile programs will serve as a revenue generator rather than a marketing expense.  Other applications leverage text messaging as a more direct, less expensive alternative to achieve traditional marketing or communication objectives.   Once your programs have reached critical mass, you can begin considering methods to convert your database into revenue.

Just as we do not recommend buying third party lists, selling your opt-in list is a poor way of monetizing your hard work.  If possible, construct your mobile marketing message to have a response that occurs on the handset.  This has proven to be an extremely successful approach in mobile marketing for content providers offering ringtones and wallpapers as the call-to-action, download, and product were all received on the handset.  Conversions are still very high when the end-user is required to convert outside of the handset by visiting a website or store, however, a conversion that happens on the handset, keeping a user in his/her context, limits the barriers to entry.

Users love the convenience and instant gratification of mobile technology.  Appeal to that desire, and your conversion rates will directly reflect ease of use and immediate gratification.
If you are driving consumers outside of the handset, such as visiting a full html website, be very clear with the offer to the end users.  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.

Finally, send good offers!  You’re participating in one of the most direct and powerful marketing mediums ever: a billboard in consumers’ pockets!  Send users something that makes them feel like a VIP.  Remember - text messages, even on an unlimited plan, are a cost to the consumer; don’t take advantage of that.  Send reasonable offers to your targeted groups and your consumers will happily reward you with high response rates.

-Ainsworth

Mobile Marketing Best Practices: Capture

The following is part 2 of a 3 part introduction to mobile marketing best practices. You can find part 1 here.

To run a successful text message marketing campaign, it is important to provide information and content that is considered valuable to consumers. Be sure to avoid third-party lists; building a database of consumers interested in your brand is the most successful strategy. In addition to not being carrier or MMA compliant, third party lists will also generate complaints. For consumers to join a mobile marketing program, they must opt-in or confirm their intent to receive your content. Carriers have two types of opt-ins; single and double, determined by the type of program. These opt-ins are limited to the particular program and short code and are not considered blanket approvals for other programs and short codes that you are marketing.

When a mobile subscriber opts into your mobile marketing program they are agreeing to receive information or mobile content from the offer you described. The best mobile marketing programs opt users into programs when demographic information can be inferred directly or indirectly. Having deeper levels of demographics allows your program to be selective when sending out future marketing messages. The more refined your marketing message is, the more receptive your end-users will be to your offer. For example, a sports radio station would benefit from individual lists for the area’s sports teams rather than one combined list of sports enthusiasts. Using this method, more general sports messages can be sent out to applicable lists but the targeted messages can be sent to the receptive users.

Be straightforward about the content and messages that users are going to receive. At a minimum include pricing, terms and billing intervals, and a notice that the cost will be charged to or deducted from their mobile phone. Do not use “free” or “bonus” terminology as end-users are still subjected to standard text messaging rates from their carrier. Including “standard carrier and other charges may apply” in your text message properly notifies the consumer of charges when joining a mobile program. Stay tuned for the wrap up…

- Ainsworth

Continue to part 3…

Mobile Marketing Best Practices: Create

At 3Cinteractive, we design campaigns around the motto that our company is named for: Create, Capture, Convert. First, you Create compelling, targeted “calls to action” to engage consumers via mobile. Next you Capture that consumer’s mobile number and any relevant demographic information into a consumer database. Lastly, the mobile consumer database is Converted into a new marketing channel, one that helps you achieve new and existing marketing goals. Utilizing this system and the best practices associated with each step, you will ensure a successful campaigns that build revenue and consumer loyalty for your brand.

The following is part 1 of a 3 part introduction to mobile marketing best practices.
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Text Your Crime Tips

As the teens and 20-somethings transition from voice-to-text, major city resources are doing the same. Brian Bernardi, Sgt of the Louisville, KY, Metro Police Department, who was interviewed in Fox News’ article realizes that the target demographic wouldn’t normally dial a Crime Stoppers line to report a crime. Departments are hoping a more familiar and discreet medium, like text messaging, will encourage use.

More than 100 communities, including Boston, Cincinnati, Tampa, San Francisco, Seattle, Denver, Indianapolis, New Orleans, and Detroit have implemented the system. Fox reports that in the 12 months since they launched the system, Boston police have logged 678 text tips, nearly the same as the 727 phone tips in the same period.

And tipsters aren’t shy when it comes to providing information. Police have reported tips that include specific times, drug information, names of suspects, locations, and license plate numbers.

Best of all, text tips still carry a cash reward.

- Ainsworth

3Cinteractive Powers Innovative HD Digital Radio Alliance Conversion Campaign

Boca Raton, FL (PRWEB) – 6/30/2008 – 3Cinteractive, a leading creative mobile marketing company, announced it is powering the innovative consumer awareness campaign for the HD Digital Radio Alliance. The expanded marketing campaign is aimed at accelerating the adoption of HD Radio. The Alliance is featuring a text messaging call to action in more than half of all of its radio ads nationwide.

3Ci’s mobile messaging platform is creating real-time, measurable conversations with consumers by promoting listeners to “Text UPGRADE to 34343”. “By establishing a direct, instant relationship with consumers who show an interest in HD Radio, we are activating a whole new category of catalysts,” said Peter Ferrara, President and CEO of the HD Digital Radio Alliance.
Radio ads within the new $57 million, 13-week marketing campaign are running in 100 markets on more than 700 stations. A full 65% of the radio ads invite consumers to text UPGRADE to 34343 with the remainder issuing the familiar call to action to visit www.HDRadio.com.
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The Gateway to Generation-Y

I had been spending the past several weeks without an iPhone, and yesterday I felt a bit “out-of-touch.” I thought to myself: no one else was affected by my phone being stolen, and I’ve replaced it with a temporary standard-issue phone, so why the big deal? Then… my 3 year-old phone lit-up with my morning text message from IWantSandy. After painfully navigating through the interface I found my text message and wrote down my to-do list. That’s when I realized my phone wasn’t meant for email or text messaging.
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4 Mobile Ad Stats that Will Make You Think

I spent the weekend with several very successful franchisees in our area, and of course, they commented on my heavy use of text messaging. As you could imagine, the conversation veered into mobile being such a youth-oriented technology that “doesn’t make sense.” As the conversation developed I couldn’t help but think of the recent Limbo Mobile Advertising report, that addressed this misconception. Here I was, spending a lovely Memorial Day weekend in the Florida Keys at one of their many, large, resort-like homes; I needed a tactful opportunity to let them know they were misled. Alas, the opportunity arose, when the champion of the bunch needed to know more: “So, what is it that you prefer about text messaging?”
My explanation covered a few key areas: First, text messaging is asynchronous so I can communicate with a friend in the background without disturbing other activities or the people around me. Second, text messaging gets my attention but doesn’t require my attention. In other words, I’m inclined enough to check it and respond, but not to the point where I’m annoyed. For a busy businessman, that explanation made sense, and I now had a segue into a few interesting stats about text messaging.
I started out with a bit of the basics - special thanks to Limbo, GFK, and NOP for pulling together this survey.

1. Over 50% of the 255 million mobile phone owners use SMS
This alone shows how widely adopted the SMS medium is. This means, that an audience of ~130 million users has near-constant access (~24/7) and familiarity with this medium. Even better, mobile marketers have the ability to touch these users within minutes, just enough to generate attention, without requiring it. It’s intrusive, but not annoying. So what? If 82 percent of those under 24 use SMS, what does that mean for marketers interested in the older demographics?

2. 50% of SMS users are 35 or over
For 25 or over, that number turns to 75%. This is an astounding figure, as these demographics have purchasing power that can be activated with targeted messages. When I mentioned this to the inquisitor, it became a bit more clear. Those consumers with the most purchasing power are often the most distracted and hardest to activate. Knowing that a call-to-action can be delivered and consumed at a precise moment is previously unheard of. His franchises are focused on chain restaurants so we spoke at length about his current marketing campaigns. Then I asked, “When a businessman gets up from his desk for lunch and asks the inevitable, ‘Where are we going,’ what is he more likely to recall: your competitor’s local advertisement during halftime of the game last night, or the mobile coupon you just delivered to his phone?”
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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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The Hang Up Act of 2008: Peter DeFazio is on to Something

The only thing worse than a stranger talking loud on their cell phone, is a being trapped, 35,000 feet above ground, with a stranger talking loud on their cell phone. With a slew of European airliners, such as Air France, beginning to test in-flight mobile use, the US is going to find itself with a decision to make. Rep. Peter DeFazio, D-Ore, has decided to put his stake in the ground, requesting the government to clarify the use of mobile phones on commercial airlines. In his bill, The Hang Up Act of 2008, DeFazio suggests banning voice communication, while still allowing use of text messaging and e-mail capabilities.
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