mobile marketing vodafone club 2020 - case study
TRANSCRIPT
BY LEONARDO BITTAN
Vodafone Club 2020 Business Case
IE Business School - MDMK2010 – Emerging Media and Mobile Marketing – Prof. Alberto Benbunan – Dec. 2009
Vodafone Club 2020 OverviewPermission Based Multi-Platform Marketing Tool – Since 2008
Vodafone’s Business Model at Club 2020
Vodafone Advertisers
Vodafone Users
Increases Service Usage - Increases LTV – Decreases Churn Rate– Increases Loyalty– Decreases Customer Acquisition Costs - Increases Profit
Provides Added Value – Premium Content
Provides Offers a
nd
Premium Content
Technology & Database
Provides Offers and
Premium Content
Non-Vodafone
UsersExperience Vodafone’s service –Increases Consumers Base - Decreases Acquisition/Conquer Costs –
Increases Profit
Viral marketing Advertising Revenue
Conversion
Conversion
Opens Club 2020 Service for all mobile consumers
Possible advertising pricing models:CPM – CPA (action) – Affiliate – Flat Fee - Hybrid
Mob
ile U
sers
All
ow
Ad
vert
isers
to C
on
tact
Th
em
Is this considered a Pull or a Push service?
Push Messaging Any content sent or by behalf of advertisers and
marketers to a wireless mobile device at a time when the subscriber request it. Push messaging includes audio, short message service (SMS) messages, e-mail, multimedia messaging, cell broadcast, picture message, surveys, or any other pushed advertising or content
Pull Messaging Any content sent to the wireless subscriber upon
request, shortly thereafter, on a one time basis. For example, when the customer request the local weather from a WAP-capable browser, the content of the purpose, including any related advertising, is Pull Messaging
Consumer Advertiser12 3
5 4
Vodafone informs consumers about Club 2020, consumers then request information.
Consumers opt-in for the service and set up their preferences
Vodafone feeds advertisers with the filtered information
Advertisers execute their campaigns accordingly based on the users permission
Vodafone delivers the content to the users
Push
Based on the premise that this channel requires opt-in for all communication initiatives, the whole concept of push vs. pull strategies in the mobile marketing arena is a bit more complex than in other communication environments. Although determining which of the two apply to this particular case could be difficult/confusing, based on the two definition – by MMA – at the bottom of this slide, we can conclude that Club 2020 approached consumers as a push service.
Could this service be considered as Spam by the MMA?
Wireless Spam (MMA definition):
Push messaging that is sent without confirmed opt-in
NOAction Compliant with
Viral Marketing was done among peers and not by any institution nor the operator
CCS-13
Users were informed the cost – if any – of becoming part of Club 2020. Opt-In required.
CCS-37
Promotional and premium content were thoroughly described
CCS-80CCS-81
Prize redemption and contest participation required consideration
CCS-95
Users were informed they were subscribing to a program
CCS-111
Users selected frequency of messages CCS-112
Based on the limited information provided, these are some of the actions done by Vodafone that were compliant with MMA Best Practices
Important note: In theory – based on MMA Consumer Best Practice and Advertising Guidelines, the answer to this question should be ‘no’. However, from the consumers point of view, lack of specifics of the information requested could lead to intrusiveness and users discomfort towards the received messages.
Thank You!