2013 digitised pocket

The digitised pocket: embracing the mobile ageMarch 2013

1 The digitised pocket: embracing the mobile age

Foreword

The mobile age is upon us. Consumers aren’t just going online; they are online on the go – using their smartphones and tablets more than ever. The once-humble phone is now your wallet, your boarding pass, your discount voucher, your social network … it is your life packaged up in a powerful pocket-sized device.

For marketers, the dawn of the mobile age represents huge opportunities. As consumer behaviour undergoes a significant revolution, marketers can likewise revolutionise the way they engage audiences to drive more sales, boost engagement and loyalty, and generate invaluable buzz.

Yet mobile marketing also comes with its challenges. At the base level lies the definition of mobile marketing. Is it a distinct marketing channel, or an amalgamation of other channels? Or, is it simply a device to facilitate channel execution? How does mobile fit within the broader marketing mix?

As more people use their smartphones to find their nearest store or research products while in-store, for example, the mobile channel is becoming the ‘glue’ sticking the online and offline worlds together.

It is safe to say that mobile is proving itself as a bona fide marketing tool that complements and supports many other channels in the multichannel mix. Marketers need the ability to integrate technology-rich channels with more traditional channels to ensure the customer experience is seamless whether they are in-store or online, on their tablet or their iPhone, or interacting via any of the many other channels in the mix.

The maturing of mobile creates a more complex marketing environment, in which overwhelming amounts of consumer data can be gathered and analysed. Like never before, marketers need to have the tech-acumen to really understand how all the channels converge, and how each channel can be optimised for where they converge.

In Singapore, this is clearly happening. Mobile is being successfully incorporated into the mix, with marketers on the path towards implementing strategies that respond to a clear consumer desire to use their mobile devices for much more than just phone calls.

Singapore has gone mobile Singapore is quite a unique market. Geographically, it is tiny. Economically, it is huge. There is great wealth in a very concentrated space, which means that changes – particularly of the technological ilk – can ripple through the population very quickly.

Strong government support for technology is another factor at play here. Widely regarded as the technology hub of Asia, Singapore is a high-tech, IP-based economy where technology plays a front and centre role. One only needs to drive into a carpark and see lights illuminated above all of the free parking spaces to see how Singaporeans love using technology to improve daily life.

Mobile is very much a part of this. Nine out of ten Singaporeans own a smartphone, and 39% of the population chose their mobile over a laptop to browse the Internet1. To support this, the nation boasts a wireless broadband penetration rate of 162%, and a mobile penetration rate of 150%2.

1 “Singapore leads Asia in mobile take up and m-Commerce”, last edited 15 November 2012, http://sbr.com.sg/telecom-internet/commentary/singapore-leads-asia-in-mobile-take-and-m-commerce

2 “See how mobile commerce is skyrocketing in Singapore”, last edited 17 January 2013, http://sbr.com.sg/telecom-internet/commentary/see-how-mobile-commerce-skyrocketing-in-singapore


Predictions for the future of mobileIn Singapore, the future that many analysts are predicting – one that places mobile devices at the front and centre of people’s lives – is almost here. While for most countries, the idea of a digital wallet and other real-world m-Commerce applications is still some way off, the government here has given strong indications that it will support such moves locally.

The smartphone will become a digital replacement for almost everything that we carry in our pockets and wallets – cash, credit and debit cards, passes, receipts, vouchers, tickets and loyalty cards.

Importantly, Singapore’s tech-savvy consumers have shown they are ready for this, and marketers are aware of the potential goldmine that digital wallets present. Given that Singapore is already an IP-based economy, it is one step closer to mandating a standard that enables rapid, widespread adoption of digital wallets and associated technology.

When this occurs, mobile marketing and m-Commerce will hit new heights in Singapore. The already-high usage of mobile phones and devices is only going to increase, and it won’t be long before mobile devices become the dominant form of all digital marketing.

Security features will become increasingly important as more personal data is stored in the cloud. At the same time, marketers will need clear strategies around data collection, management and optimisation – recognising that the proliferation of data will be both an opportunity and a challenge.

At the user level, the consumer will dictate where, when and by whom they can be ‘seen’. Allied to this, their preferences will become more sophisticated – with the ability to specify the products and services that they receive information about, and the way in which they are communicated. Marketers must become much savvier, giving customers the tools to select when, why and how they are communicated with, as well as the products and services they receive information about. Customers also need the ability to change their preferences at any time.

As mobile devices become more integrated with people’s homes, cars and offices, marketing activities will accelerate and an increasing proportion of marketing budgets will be spent on mobile communications.

More email is now read on a mobile phone than on desktops, according to Returnpath. More than 50% of Facebook’s users are mobile users; and SMS is the most powerful interruptive real time channel, with over 90% open rate within five minutes of receipt.

Mobile as a device is already the most effective way to reach and engage with consumers, given that it provides marketers with social, email, push messaging and advertising channels directly to the consumer.

Given all of this, Singapore marketers can pay heed to the experiences of their peers in doing so.

This whitepaper provides insights and commentary on research conducted by Experian Marketing Services, into how marketers are currently using mobile marketing as part of their broader strategy.

Foreword


Executive Summary

Marketing is undergoing a significant paradigm shift. Consumers are calling the shots more than ever before – with the world at their fingertips, or in their pockets, they are driving a new dialogue with brands. As mobile cements itself as a marketing channel with serious clout, marketers need to understand how this channel fits within their broader cross-channel strategy.

To gain a greater understanding of mobile marketing in Singapore, Experian Marketing Services surveyed 104 marketers from a wide range of industries, including retail, financial services, telecommunications/utilities and travel/leisure. These B2B and B2C marketers are immersed in the ongoing quest to engage more effectively with their customers – which, in order to keep pace with industry competition and stay ahead of the curve, must now incorporate mobile.

The 2012 Experian Marketing Services Mobile Marketing research sought insights into the current usage of and attitudes towards mobile marketing, the barriers and challenges marketers face, and the plans for the coming years.

Despite Singapore being a widely acknowledged ‘tech-hub’, the research findings reveal that Singapore still has some way to go towards true mobile marketing adoption.

Just over half of marketers in Singapore (51%) have not yet implemented a mobile marketing strategy. Compared to Hong Kong, where roughly two-thirds (65%) of marketers have successfully tested mobile channels and the majority of this group now incorporate mobile as a regular marketing channel, only 49% of marketers in Singapore have tested mobile. Promisingly, of those that have, two thirds (66%) have incorporated mobile as a regular marketing channel.

So what’s holding marketers back? For many, it is the fact that mobile is seen as being a very important channel and marketers don’t want to go into it blind. They are taking their time, taking a more iterative approach to building a strong and lasting mobile strategy.

The single biggest factor that prevents marketers from moving faster to using mobile channels is how screen size affects their message. This is the reason today why many in the market see SMS as king, with apps closely following. As more successful use cases emerge, we will see marketers starting to copy what works in mobile for other brands.

With Singapore being certainly the heart of the Asian ad tech industry, there is no shortage of vendors and experts to help marketers implement both mobile advertising and reward redemption/commerce technologies. So it will happen very quickly.

Of the mobile marketing tactics that are currently being used, the most popular are QR codes, email marketing optimised for mobile, and m-Commerce. QR codes, in particular, are popular within the entertainment, travel and hospitality industries, and typically feature promotions and offers to incentivise action by consumers.

Despite the rapid growth in mobile, traditional channels such as face-to-face communica-tions are still considered to be important tools in engaging with customers. In fact, across the board, all marketing channels – new and old – are seen as becoming more important.

Figure 1: Marketing channels ranked by perceived importance compared to twelve months ago

80%

70%

60%

50%

40%

30%

20%

10%

0%

Direct mail

More important

Equally important

Less important

Social media

Email Face-to-face SMS MMS Website Phone Traditional advertising

(radio, TV, print)

Online advertising


This points to why marketers are finding the whole concept of multichannel marketing more difficult to manage. They are faced with the twin challenges of ensuring that mobile activity is integrated effectively with more traditional channels and that data from multiple sources is meaningfully combined. While the research shows that marketers are becoming increasingly savvy about how they collect data, there is still work to be done in this area.

If, as anticipated, mobile becomes the dominant channel in the next few years, then marketers won’t be caught entirely off guard. There is already plenty being done in the mobile space – however, much of it is experimental and there are still key barriers and challenges to be overcome.

As the success stories show, mobile marketing can deliver positive returns when used correctly.

With marketers in Singapore set to extend their mobile marketing into new channels and take steps towards creating a 360 degree view of their consumers, the result is that they can develop more robust and effective campaigns.

Executive Summary

Channel 1 2 3 4 5 6 7 8 9 10

Direct mail 11.1% 13.3% 12.2% 14.4% 17.8% 8.9% 7.8% 3.3% 5.6% 5.6%

Social media 25.5% 13.8% 9.6% 6.4% 8.5% 12.8% 8.5% 2.1% 6.4% 6.4%

Email 18.7% 17.6% 18.7% 16.5% 8.8% 6.6% 7.7% 3.2% 1.1% 1.1%

Face-to-face 23.2% 28.3% 11.1% 9.1% 8.1% 10.1% 6.1% 1.0% 2.0% 1.0%

SMS 3.4% 9.1% 12.5% 11.4% 19.3% 11.4% 5.7% 11.4% 14.8% 1.0%

MMS 2.1% 3.1% 11.3% 8.2% 3.1% 7.2% 13.4% 20.6% 6.3% 24.7%

Website 9.0% 6.7% 12.2% 10.0% 14.4% 13.3% 4.4% 7.8% 13.3% 9.0%

Phone 9.8% 14.1% 9.8% 18.5% 8.7% 6.5% 8.7% 9.8% 5.4% 8.7%

Traditional advertising (radio, TV and print) 2.0% 3.0% 8.0% 13.0% 8.0% 10.0% 8.0% 16.0% 18.0% 14.0%

Online advertising 7.4% 2.5% 7.4% 3.7% 11.1% 7.4% 19.8% 12.3% 14.8% 13.6%

Figure 2: Channels ranked in order of importance for organisations as a method for communicating with customers, with 1 being the most important and 10 the least important.


Research Results

In with the old and in with the new: an increasingly complex marketing environment

Mobile marketing is a fast evolving channel in an already complicated and cluttered marketing environment. In fact, it’s growing so fast that it presents the biggest change in marketing since the dawn of email.

The good news is that mobile presents incredible opportunities for businesses large and small to engage more effectively with consumers. The challenge is that it presents another channel that marketers need to incorporate into the mix – without necessarily expanding their overall budgets.

One might expect that, as new and exciting marketing channels enter the mix, old ways of connecting with customers would become defunct in a case of ‘out with the old, in with the new.’

However, the Experian research shows that almost all marketing mediums are seen as equally or more important than they were last year.

Naturally, digital channels are increasing in importance, with almost half (44%) of respondents indicating that the website is more important than it was 12 months ago. Whereas, 42% say online advertising is more important, closely followed by those that indicated email is more important (41%). The most popular are SMS (70%) and MMS (53%), which are deemed equally important when compared to 12 months ago.

Yet many traditional channels are also becoming more important to marketers. Compared to 12 months ago, 55% of marketers believe that phone contact is more important; 46% say that direct mail is more important; and over one third (39%) think face-to-face communication is more important.

This is not part of our marketing plan (11%)

Discussing the idea internally, but no action has been taken (20%)

Have a strategy or are forming a strategy but no implementation has taken place (20%)

Have implemented one mobile or SMS campaign to test success (13%)

Have implemented a successful campaign(s) and have incorporated mobile as a regular marketing channel (36%)

Figure 3: How far has your company progressed in terms of mobile marketing?


When asked to rate the top three most important marketing channels now, face-to-face communications emerges as the most popular. Sixty three per cent of marketers include this channel in the mix. In Experian’s observations of the local market, face-to-face communications is declining in popularity – particularly when compared to markets like Hong Kong – as digital channels and e-Commerce gain a stronger foothold; and in coming years we expect this channel to fall off the top-three list.

The next most important channel is email, with 55% of marketers rating it as one of their top three channels right now. Singapore marketers are extremely adept at recognising which channel works for what message – they know that a message that isn’t time-sensitive can more easily and effectively be sent via email. These marketers acknowledge the needs and wants of their audiences, and use email wisely when they don’t want to interrupt customers unnecessarily with an SMS.

Clearly, it’s a case of ‘in with the old and in with the new.’

Is this a challenge for marketers, or an opportunity? Changing consumer behaviours present great opportunities for marketers to connect online and offline activities – or the ‘old’ and the ‘new’ ways of communicating with consumers.

Wider research supports this view. Consumers are becoming more likely to browse the internet on their tablet while consuming other media such as television and newspapers. This phenomenon of ‘media multi-tasking’ is prevalent, with 60% of Singaporeans using their mobile phones while watching television3.

Consumers are also increasingly using mobile phones to seek out store locations. Clever companies draw on this trend and use mobile marketing as a way to drive customers in-store, where face-to-face conversations – and conversions – can take place. Such a tactic demonstrates how marketing has evolved from pushing individual messages, into the more exciting and engaging dialogue space.

Clearly, mobile devices are a key way to connect with audiences while they consume more traditional media channels. In an increasingly complex marketing environment, consumers are empowered like never before and are calling the shots in terms of how and when they engage with brands. With this in mind, the mobile channel presents a great opportunity for marketers to boost the effectiveness of their broader campaigns – while bearing in mind that mobile alone is not the panacea for communicating with customers.

In with the old and in with the new: an increasingly complex marketing environment


Tactics Rounded Percentage Rank

QR codes (Barcodes specifically designed for mobile readers allowing consumers to directly access online content or offers) 68% 1

Email marketing optimised for mobile (emails optimised for mobile viewing/browsers) 50% 2

m-Commerce (sales transactions conducted through mobile devices) 49% 3

SMS campaigns (campaigns utilising mobile text messages) 46% 4

Mobile-optimised website (tailored version or section of your site specifically enriched for mobile browsers) 35% 5

MMS campaigns (campaigns utilising mobile multimedia messages) 31% 6

Location-based mobile services (mobile content based on the location of the customer) 29% 7

Custom apps (custom created mobile phone applications) 22% 8

In-app ads (advertising within mobile phone applications) 11% 9

Mobile tickets or barcodes (Barcodes or offers tailored for customers and provided via mobile devices) 4% 10

Do not currently use any of these tactics 4% 10

Figure 4: What mobile marketing tactics does your organisation currently use?


Welcome to the mobile era: marketers are clearly confident about mobile marketing’s future

On trains, in malls and on the streets, it seems that everyone in Singapore has their heads buried in a mobile phone or mobile device. Marketers acknowledge this changing consumer behaviour and intend to leverage the mobile channel for all it’s worth.

The Experian Marketing Services research shows that eight out of ten marketers realise the increasing importance of mobile marketing – 28% of marketers strongly agree and 51% agree that mobile will be one of the most important ways for a brand to engage with their customers in the next two to three years.

Yet, right now, less than half of marketers in Singapore are putting mobile marketing campaigns to use. Thirty-six per cent have incorporated mobile as a regular marketing channel, while 14% have implemented one campaign to test the waters. Yet, 20% have developed a strategy but have not yet implemented it; 20% are talking about the idea internally. Interestingly, one in ten (11%) have indicated that mobile is not part of their marketing plan.

For those that have started using mobile tactics as part of their broader marketing strategy, the investment is clearly paying off.

The research shows that 33% of marketers who do use mobile currently receive 11-25% of their sales via mobile devices, and 28% re-ceive between 26-50% of their sales via this channel.

Looking ahead, seven out of ten marketers believe that their company’s sales made through mobile devices will grow in the next year, with 22% expecting sales via mobile to significantly increase and 47% expecting they will increase. Longer term, 33% are expecting a significant increase over the next five years.


Recent consumer studies further supports these predictions. According to research conducted by PayPal, mobile shopping in Singapore is expected to grow almost ten-fold in the next few years – from S$328 million in 2011 to S$3.1 billion in 20154.

Given this expectation that mobile devices will become an extension of the in-store cash register, marketers are allocating more of their budgets to the mobile channel. More than half (54%) are investing significantly more in mobile channels than they were 12 months ago.

The good news for those who are yet to implement a mobile strategy is that almost nine out of ten marketers agree that mobile marketing works.

Of those marketers that have tried and tested a mobile marketing campaign, 26% rated their most recent mobile campaign as very effective, and a further 57% rated it as effective. Some industries are leading the way when it comes to customer engagement via mobile.

The entertainment and hospitality industries, for example, are using location-based mobile campaigns to encourage patrons to step inside their venues.

As these research results demonstrate, marketers in Singapore are on the cusp of a mobile marketing revolution. Of those that are already using mobile tactics, the results are very positive. For others, there are plans in place to leverage the channel to drive more sales. Clearly, what we are seeing now is nothing compared to where marketers and consumers will be in five years in terms of their relationship with the mobile channel.

In this calm before the mobile storm, the question is, are marketers investing in the right places and ensuring that mobile supports and complements other marketing strategies?

Welcome to the mobile era: mobile marketing has taken off and marketers are investing heavily

4 “Paypal and the m-Commerce market in S’pore”, last edited 27 June 2012, http://www.asiaone.com/Business/SME%2BCentral/Tete-A-Tech/Story/A1Story20120625-355200.html


Testing the waters: a range of mobile marketing tactics are in play

We’re seeing significant testing and execution of a number of different mobile marketing tactics, but the research shows that gaps still exist. Over the next 12 months, marketers plan to fill these gaps with more varied mobile tactics.

The marketers who are using mobile strategies are clearly keen to experiment – undeterred by the ever-evolving and growing number of mobile tools available. By far the most popular tactic in use is QR codes, with 68% of marketers using this tactic.

As noted earlier, QR codes are popular in the entertainment and hospitality industries. Cinema chain Golden Village, for example, recently announced they will use QR codes to let people through the gates and into the cinemas, as well as to buy the tickets5. Elsewhere, QR codes are found on the majority of posters and print advertisements; and many Singaporeans are comfortable using them.

Behind QR codes, email marketing optimised for mobile (50%) and m-Commerce (49%) are the other tactics most likely to be used by marketers. SMS campaigns are also very popular, with 46% reporting to use this tactic.

Around the world, 98% MMS and SMS are opened within 10 minutes of being sent and provide marketers with a greater degree of reliability when compared to channels like email6.

Experian is seeing that cross-channel marketing via mobile – with real-time triggers based on consumer activity – is very effective. Mobile is the only channel that maps directly to a unique user, following them everywhere, at all times. Based on context and location, the most appropriate mobile tactic (SMS, email, social) can be used to engage the consumer and support their needs. For example, marketers can exploit the interruptive nature of SMS to grab the consumer’s attention and create real value. Consumers respond positively to brands who communicate the right messages via the right channels at the right time.

The effects of the mobile marketing tactics listed above are clearly positive. Of those that use QR codes, 33% rate them as very effective; for email marketing optimised for mobile, 28% rate it as very effective; and for m-Commerce, 54% rate it as very effective.

The most effective channel, despite only being used by 35% of marketers, appears to be the mobile-optimised website. This finding is supported by external research by Google and Sterling, which found that 67% of mobile users are more likely to buy a product or use a service on a mobile optimised site7.

Across all of the tactics currently available to marketers – including mobile-optimised websites, m-Commerce, QR codes, location-based mobile services, SMS and MMS campaigns, mobile-optimised email, custom apps, in-app ads and mobile barcodes – mobile tickets/barcodes are most likely to be used in the next 12 months, with 72% planning to use this tactic.

Other tactics most likely to be implemented by marketers in Singapore in the next 12 months include in-app ads (67%) and location based mobile services (56%). The focus on in-app ads is a nod to the growing prevalence of tablets – particularly the Samsung Galaxy – in Singapore. Advertising has never really worked on mobile phone devices, given the lack of on-screen real estate and the fact that a single ad can adversely affect the user experience.

Tablets give advertisers more real estate to play with, and a great opportunity to connect directly with individual consumers.

Vouchers and mobile tickets provide a real opportunity for marketers to engage with customers who are seeking better deals in store, and with the new passbook functionality incorporated into smartphones such as the iPhone 5, this form of mobile marketing is expected to dramatically expand.


6 “Why SMS Marketing is Still Relevant in 2012”, last edited 12 June 2012, http://blog.textanywhere.net/post/2012/06/12/Why-SMS-Marketing-Is-Still-Relevant-In-2012.aspx

7 “Mobile-friendly sites turn visitors into customers”, last edited 25 September 2012, http://googlemobileads.blogspot.com.au/2012/09/mobile-friendly-sites-turn-visitors.html


A short walk around Singapore’s busiest centres will illustrate no shortage of marketers experimenting with QR codes embedded in their outdoor ads. And yet they have failed to take hold with consumers who are unable to get sufficient value from the effort required to bother scanning the code (or even installing a scanner app).

When asked if they plan to stop using mobile marketing tactics in the next 12 months, QR codes are most likely to be abandoned, with 21% of marketers saying they will discontinue using this strategy.

Driving the bottom lineOverall, marketers are at odds over the motive for using mobile marketing. While 33% use it to drive sales both online and offline, 33% use it to drive only offline sales, and 28% to drive only online sales. In other words, more than half of all marketers are using mobile marketing with only one channel in mind.

Right now, this split reflects broader consumer trends. In Singapore, e-Commerce, physical retail and m-Commerce are all very common, with no one dominating channel. However, Experian predicts that m-Commerce will spread very rapidly – particularly when the government decides on a single set of standards to drive uptake of digital wallets and the like.

These results are on par with global trends when it comes to using mobile devices. Around the world, 67% of consumers research a product on their smartphone before buying in-store; 23% research on a smartphone, head in-store to check out the product and then purchase online; 16% research on smartphone, visit the store and then purchase on smartphone; while 9% visit the store first, then purchase on a smartphone8. It’s a very mixed bag, incorporating many channels – and the purchase process clearly relies on the smartphone at various stages.

Given the research results, we can expect an explosion of mobile tactics to enter the marketplace in the next 12 months.

Yet marketers need to be wary of introducing mobile for the sake of it, or of adopting a ‘scattergun’ approach whereby the tactics and tools they use are not integrated with other channels. It is critical to determine if mobile is the right channel – both for the business and the customer – before working out which mobile tactics will best deliver individualised and tailored mobile experiences that support both online and offline sales.

Testing the waters: a range of mobile marketing tactics are in play

8 “The Mobile Movement Study”, last viewed 31 January 2013, http://www.thinkwithgoogle.com/insights/library/studies/the-mobile-movement/


Major barriers: a lack of expertise, tight budgets, and juggling priorities

As with the adoption of any new channel, one of the main barriers getting in the way of mobile marketing is a lack of skills, expertise and budget. That, and competing priorities in a cluttered marketing environment.

When it comes to the barriers to mobile adoption or further investment, one of the most interesting insights to come from the Experian Marketing Services research is the fact that ROI is not seen as a barrier by most marketers. Only 12.5% of marketers think that ROI gets in the way of mobile implementation – which is somewhat surprising for a relatively new and untested channel.

The whole question of attribution and ROI has become incredibly complex in the multichannel marketing world, and there is a lack of clarity around ROI in the marketing arena as a whole. It is becoming too difficult to attribute just one part of a conversation with a customer to a sale. Instead of taking a channel attribution approach to ROI, marketers have to look at it from the campaign level and measure how effective a campaign was in improving sales.

Given that ROI is not a concern for marketers, then what is stopping them from embracing the mobile channel?

According to the research, the three biggest barriers to mobile adoption are a lack of in-house expertise or resources to implement tactics (cited by 34% of respondents). A lack of budget and competing priorities were cited by nearly a third of the respondents (both 31%).

In terms of the lack of knowledge and expertise, many organisations have – or have easy access to – the skills needed to design and implement mobile-centric campaigns. What they don’t have is the in-depth understanding of how to integrate these campaigns with other channels, or of how to strategically model a comprehensive multichannel campaign.

The cost of mobile is also holding many marketers back. Having previously been hindered by social media – moving too quickly to embrace a channel that turned out to be a disappointment in terms of delivering ROI – they are wary of investing too much in another relatively new channel, yet to prove itself. These marketers don’t want to take the ‘big bang’ approach to mobile adoption, but instead seek a more iterative approach whereby they carefully evolve a strategy, step-by-step.

When it comes to senior support for mobile marketing, despite 28% citing that a lack of support is a barrier, it appears that many senior teams are aware of the value that mobile offers. According to the research, on quarter (24%) of marketers think their senior teams have advanced understanding of the value of mobile marketing, and 40% think they have intermediate understanding.

Senior managers understand that consumers and brands are increasingly interacting through mobile; and acknowledge the incontrovertible truth that if this is not being done now, it will be in the future. Yet some demonstrate a somewhat one-dimensional understanding, and do not fully comprehend how to realise true value through specific mobile marketing implementation. This creates a barrier and makes them more reluctant to commit more marketing budget to mobile.

A lack of case studies may also explain why many marketers – and their managers – are reticent to embrace the mobile channel. Marketers seek examples and models to emulate, but given the infancy of the channel, these are still few and far between.

Given that eight out of ten Singapore marketers have faith in the mobile channel, and many are already implementing mobile marketing tactics, the barriers cited above are clearly not enough to stop marketers from embracing the mobile channel. However, once a mobile marketing strategy is in place, a number of challenges do arise.


Major challenges: lack of insight into how best to integrate with other channels

Once marketers overcome the barriers to mobile adoption and get to work in implementing a strategy, they must do so by integrating mobile with all other offline and online channels. Easier said than done.

The good news is that Singapore marketers are confident about collecting meaningful data from mobile campaigns. The majority of marketers (79%) collect mobile data as part of their wider customer data strategy, and almost all (91%) obtain permission separately from other channels, allowing consumers to choose whether or not they receive mobile marketing messages.

With all this data at their fingertips, marketers are in a great position to develop and execute successful mobile campaigns.

However, multichannel coordination – ensuring that campaign themes and messages are integrated and consistent across all channels – remains a major challenge, with 50% of marketers citing this as the biggest difficulty of the past 12 months. A further 18% believe that combining the data captured through online and offline sources is the major challenge.

Clearly, the whole question of multichannel marketing is a burning issue – extending beyond the mobile realm. These marketers are concerned with how to use data across channels to inform strategies, and how to implement campaigns across channels to achieve stated business objectives.

What with so many channels in the mix, it is becoming more difficult for marketers to obtain a clear picture of their customers. A 360 degree view is needed to measure the success of all customer touch points and align individual channels for across-the-board gains. This provides a full snapshot of what a single customer looks like and a history of the interactions and transactions with the brand.

Yet it can be difficult to achieve, particularly given that many companies collect consumer data from channels in very fragmented ways. Email addresses, mobile phone numbers and social IDs are often recorded as disparate items in the database, with consumers having separate entries for each item. Brands have to retrospectively ‘mine data’, matching and cleansing it.

Lacking a 360 degree view, marketers run the risk of implementing a fragmented strategy – over-communicating, under-communicating, or sending the wrong message at the wrong time. However, Experian is witnessing a profound paradigm shift within the industry, as the more forward-thinking organisations reframe the debate in terms of the ‘current customer view’.

Instead of collecting every piece of information about a customer and building a single, physical data repository, a ‘current customer view’ leaves data assets in the source systems and then uses technology to gather real-time information about that customer. This information is then used to inform a marketing decision and execute a campaign that is highly targeted and relevant to that individual.

Overall, whether you have a current customer view or a real-time customer view, knowing who the consumer is and what they want will effectively inform marketing plans.

Where does mobile marketing fit into this multichannel mix? As all the research shows, it fits in many ways – and is almost a multichannel realm in its own right, with so many other channels converging on it. To overcome the challenges, marketers need the tools and know-how to both implement mobile marketing strategies and align these strategies with all other channels.


Summary

Mobile devices are here to stay, and the now established mobile channel presents a clear opportunity for marketers to engage with consumers in new ways. The channel is an opportunity to start a new dialogue that opens the door to more sales, greater loyalty and broader business gains.

With Singapore consumers embracing the mobile era, marketers have a great opportunity to innovate and explore new ways to engage. Indeed, this is an opportunity that many marketers recognise and are already acting upon. These marketers acknowledge that the consumer is calling the shots and using their phone as search engine, GPS and more – choosing what tools they want to use, and when.

However, some marketers are still struggling in the face of an increasingly cluttered and complex marketing environment in which new and old tools compete for customers’ attention.

How to integrate mobile with established channels remains a burning issue – particularly because the mobile space is harder to define and grasp, and marketers lack the skills and resources to get mobile off the ground.

Marketers need insights and knowledge about how to successfully implement multichannel campaigns, and how to identify which channels are most effective in reaching and engaging with particular individuals. Fortunately, this whole notion of engaging with individuals is what mobile marketing is all about. Through better analysis and utilisation of the data they have available, individualised and tailored experiences will soon become the norm – and organisations will reap the benefits of even more successful campaigns.

In Singapore, where consumers willingly embrace new technologies and are confident that these technologies can improve daily life, marketers will do very well out of the mobile channel. There is the opportunity to experiment with new tactics and strategies – bearing in mind the ‘risk-reward’ equation, whereby those marketers in industries that currently aren’t using mobile much will get the ‘first mover’ advantage but face more risk in implementation.

Other marketers may choose to take a more iterative approach, building quick wins and learning in the process – always with the end goals of customer engagement and connectedness in mind. Whichever path they choose – a ‘big bang’ or more cautious implementation – there is no doubt that marketers that take mobile seriously will do well for their brands.

Why? Today, it’s about starting – and maintaining – a meaningful dialogue with consumers. It’s about ‘pull’ marketing, using rich data and insights to provide individuals with tailored experiences based on their unique needs.

Given the everyday consumer’s attachment to his or her mobile device, the mobile space is the ideal arena in which this can occur.


Top tips for making the most of your mobile journey

1 State your goalsTake a top-down approach starting with your business goals and what you want to achieve across all channels. Do you want to drive footfall? Boost e-Commerce traffic? Or grow brand awareness? Clearly define your objectives and get a clear picture of how mobile fits within this cross-channel strategy.

2 Listen to your customers Research your customers, collect the right data and gain a clear picture of how they want to be communicated with and what they are looking for on their mobile devices.

3 Analyse Work out what customer information you need to inform your strategy, and then continue to analyse this information to see if your mobile strategy is working.

4 Integration, not eliminationCombine old and new marketing tactics, and integrate mobile with your existing channels – embracing mobile doesn’t mean dumping face-to-face, phone or traditional advertising.

5 Get the basics right, but don’t stop thereWhile you should focus on getting existing tools (e.g. websites and emails) optimised for mobiles first, don’t limit yourself to that – mobile marketing can go so much further. Make the most of the real opportunity that mobile presents – to reach consumers on the go, when they are at specific locations, with appropriate messages and interactive content that engages in new and exciting ways.

6 InnovatePeople love having fun on their mobile phones. Get advice or expert help to inject some fun and creativity into your mobile campaigns. Do something different to catch the eye of busy, easily distracted consumers.

7 m-CommerceMake it easy for consumers to buy on a mobile device – make your mobile website easy to browse and streamline the online purchase process to reduce the number of “clicks to purchase”.

Experian Singapore

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Research Methodology

Experian Marketing Services commissioned independent research amongst 104 marketing professionals in B2B and B2C environments from a wide range of industries, including retail, financial services, telecommunications across Singapore. The findings were used to develop this industry whitepaper on mobile marketing in Singapore.

2013 digitised pocket

Documents

mobile singapore

mobile channel

mobile agemarch

mobile devices

mobile fit

maturing of mobile

definition of mobile

mobile penetration rate