mobiu2011 lecture: strat221 location behavior insights - placecast

Presented by the Heartland Mobile Council

Location, Context and Behavior: How Location-Based Mobile Marketing Increases Relevance for

Consumers, Effectiveness for Marketers

Alistair Goodman, CEO, Placecast, @Placecast

Event hashtag #MobiU2011

#MobiU2011, @twitterhandle @company

• Location: The New Context o How we used to use location

o How location can be used in mobile

o What are geofences? How are they used in mobile marketing?

• What we’re learning o Key insights by brand specific programs

o Key insights by carrier

o Messaging and behavior

o Emerging best practices

• What’s next… o Closing the loop in the mobile payments future

Topics for today


Location: Always a Key Driver of Marketing Effectiveness

• DMA, MSO, ZIP Code, Census Block Group, PRIZM Cluster…

• Location targeting has always been a way of increasing marketing effectiveness

• Reach of key demography

• Reach by key lifestyle attributes

• Relatively blunt tools for predicting most likely response

http://www.claritas.com/MyBestSegments/Default.jsp?ID=20


Location is the New Context “Mobile represents one of the most rapid cases of consumer adoption/behavior change of a medium ever seen...[Consumers now] live in an always-on world of information that is with them in the moment of truth for marketers: the point of purchase. As Matt O’Grady, EVP Media Audience Measurement at Nielsen notes: “the mobile phone may be the last in line that influences before the purchase and it’s possible to know if the consumer is actually in a store.”

What Marketers Need to Know about Mobile Metrics

August, 2011


Where consumers are is predictive of what they will do

• Reach consumers in the moment:

o To Remind them prior to shopping trips of time sensitive offers

o On their way to a mall to tell them about new products and promotions

o In a store as they are deciding between brands


$1 trillion dollars of offline retail sales per year influenced by digital marketing: Now all digital goes mobile

http://www.businessinsider.com/using-mobile-to-bridge-the-gap-between-online-and-offline-marketing-2011-9

#MobiU2011, @twitterhandle @company Harris Poll: Consumers value text messaging more than other phone activities

40%

25%

14%

12%

11%

7%

5%

39%

30%

18%

15%

14%

9%

7%

42%

20%

9%

10%

9%

5%

3%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Text message

Access the Internet

Search for a retail location

Access local information/activities via an …

Access social networks (e.g., Twitter, …

Make a purchase

Location-based social networking (e.g., …

How important, if at all, is it for you to be able to do each of the following activities on your cell phone/Smartphone?

Base: Extremely/Very important

Total

Male

Female n=1719

Source: Placecast The Alert Shopper II, Harris Poll, July 2010

• Men more likely to do early adopter activities like purchasing via mobile devices

• Relatively low interest in social/location services


42%

30%

21%

17%

44%

29%

16%

20%

40%

30%

26%

14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

18-34 35-44 45-54 55+

At least Somewhat Interested Base: Cell Phone/Smartphone Owners

Total

Men

Women

Placecast The Alert Shopper II, July, 2010 Assuming you gave permission, how interested, if at all, would you be in receiving text alerts about new products, sales and/or promotions from your

n=1719

Harris Poll: Consumer Of All Ages Are Interested In Mobile Offers


0% 20% 40% 60% 80% 100%

Grocery coupons and promotions

National restaurant chain promotions and offers …

Entertainment products and availability (e.g., movie …

Fast food menu items and promotions

Beauty and fashion (e.g., shoes and accessories)

Coffee and beverage promotions

Electronics product offers and promotions (e.g., …

Travel services, special rates and amenities (e.g., …

Health-related offers including gym services and/or …

Convenience store products

Home furnishings

Infant and child-related products/services/events

Bar or nightclub offers and promotions

Sporting goods and equipment

Other

None

Categories of Interest – Location-based Alerts Almost equal interest in restaurants, fast food, travel, health

Male Female

Placecast The Alert Shopper II, July, 2010

Harris Poll: Consumers Want Relevant Mobile Marketing From Retailers


What are geofences?

Geō-fence noun : a field around any location set to trigger a personalized

marketing message to a consumer entering or exiting the defined area.

How it’s created: • Upload location addresses • Create “Place Profile”

Flexibility: • Any location, size or shape • Change based on time of day and

day of week

Geo-fencing Strategy: • Time-based, event based or contextual • Integrates with other user data


What We’re Learning

From pilot, specific brand programs and carrier programs, US and overseas


What We Know from All Programs

Location based text marketing can:

• Impact brand awareness

• Impact store visitation

• Act as a reminder to visit retailer

• Drive purchase among both prior and new purchasers

• Increase convenience and relevance in the mind of consumers

• Be preferred over other forms of promotional marketing

• Increase loyalty towards the brand running the program

• Generate word of mouth/social media connection


1. Texts have most immediate impact on lower consideration products with many retail outlets

More chances to purchase, triggers impulse buying

Actions most likely taken in 1 – 3 day time frame

2. But texts help to build loyalty, increase awareness of new product intros for higher consideration products

Actions take place over longer time frame

3. Texts drive multi-channel behavior – be prepared

4. Messaging and frequency strategies:

Promotions/offers drive highest response

Informational messages welcomed as long as location enhances relevance

Key Insights for Retail Brands


Results for Individual US Retail Brand Programs

14

Average

Likelihood to

visit retailer 0% 100% 50%

59% - 87% 75%

Retail

visitation 0% 100% 50%

59% - 90% 73%

Purchase

post receipt 0% 100% 50%

41% - 80% 65%

Appeal of SMS

due to convenience

of mobile receipt 0% 100% 50%

48% 28% - 61%


Key Insights for Carrier Programs

Success of the program depends on:

1. Acquisition-oriented messaging

2. How well promoted it is to the consumer base

3. How well the program delivers value to the recipients

4. How much control/input consumers are given: Preference centers

5. Geo-fencing strategy: Find your location relevance

6. Frequency management


Results for International Carrier

Recall

0% 100% 50%

22% - 93% 57%

Likelihood to

visit retailer 0% 100% 50%

34% - 58% 46%

Retail

visitation 0% 100% 50%

43% - 67% 53%

Purchase


14% - 46% 22%

Intent to

Purchase


16% - 29% 17%

Appeal of SMS

due to convenience

of mobile receipt 0% 100% 50%

34% 16% – 42%

International carrier aggregate results, 8/11

Average


International carrier has an 83% somewhat to very positive rating

26% 25%

32%

13%

4%

0%

5%

10%

15%

20%

25%

30%

35%

Extremely positive: I really liked this

program

Very positive: This is an effective way for merchants to connect with me

Somewhat positive: I like to know about new product or get

discounts

Neutral: No opinion

Negative: Would not use in

future/had little value to me

Perception of International Carrier Program

Total: 4,288; n= 821 - 1,248


Messaging

Different approaches for different strategies


Objective/Messaging Examples

Storyboarding

• Introduction of Via Ready Brew in

the UK market

• Induce trial on premises and

purchase at grocery stores

Experiential

• Reach them at their passion points

while hiking, biking and skiing, in

addition to around stores.

• Weather triggers as well

Direct Response

• Weapon for “Burger Wars”

• Promote different menu items

throughout the day

• Redemption via discount code

Loyalty

• Drive traffic to store and website

• Increase frequency and basket size

• Offer special deals to best

customers


What We’re Learning: Messaging

• Consumers want location-based text messages to feel distinct and

exclusive to the program

• Offers – especially time sensitive offers– tend to trigger highest

response

• Variation can increase impact

• But a solo, strong, message that felt unique also worked well

• Location was very important in messaging

o Consumers expect relevance and found location to increase it

o The more retailers that were tagged, the higher the likelihood to respond but even retailers with solo locations saw substantial response rates


Strong Messaging Examples From Carrier And Individual Brand Messaging

• Urgency: • 4 hrs only: 50% off mini portable speakers & many more deals! Be sure 2 stop in Sat 4 a chance 2 win a $500

gift card @ur nearest XX store.

• XXXXX alerts: Update- $10 coupons start 2day! We’re giving u an xtra day 2 get a $10 coupon for every $50 spent. Offer valid in stores only thru 12/24

• Exclusivity & Tone: • Exclusive 2 day offer 4 mobile users! Take 15% off everything excluding furn & rugs thru 11/30. In-store only.

Show this msg @ur XX store 2day!

• Collect one of 3 limited edition Impulse and Barry M special packs featuring your favourite XXXX fragrances & an exclusive Barry M lipgloss. Worth over £6 and they’re available in stores now for just £3. Get yours from <variable>.

• Click through to coupon: • Get $5 OFF any purchase of $50 in the entire store! Shop today and save @375 E Allessandro Blvd. For

Coupon: http://bit.ly/mezAJE

• Offer codes: • Surprise your Valentine with flowers. Get 10% off all XXXX flowers until 14 Feb. Use code 0747165 online or

at the till in store. Terms and Conditions at http://mands.mobi/flr.

• Events & Time Sensitivity: • XXXXX alerts: Come by 4 cocktails, Chef Michel Bras, & his new line of kitchen tools 6-8PM on 3/1 @WS

Columbus Circle. RSVP at 855-382-0822 by 2/27

http://bit.ly/mezAJE


Finding Your Location Relevance: Location-based Messaging Strategies To Consider

• Geo-Fencing doesn’t just have to be about retail locations, consider: • Events: related to celebrity product lines or endorsements - venues as part of a

musician's tour

• Points of interest: foodie hotspots as they relate to recipes, classes, and/or cookware at a store; for outdoor apparel, parks and recreation sites, ski slopes

• Relevant places: that appeal to target demos/lifestyle (post-work beverage push geo-fenced gyms)

• Areas of activity: (skateparks, malls, music venues, etc.) related to youth-centered retailers

• Sponsored venues: or sports teams as related to brands

• Mom-places: Schools and other areas where moms might be likely to be thinking about errands, dinner recipes, quick take-out meals, etc.

• Travel destinations: and popular tourist spots related to outlet-store brands


Results from carrier program by product category


Carrier Messages Increased Likelihood To Visit By Nearly 50%

46%

56%

50%

36%

48%

33%

48%

57%

6%

12%

1%

8%

0%

10%

20%

30%

40%

50%

60%

All Retail Health & Beauty Fast Food

Likelihood to Visit By Category

Increased Neutral Decreased Total: 3,025; n= 1,247 – 1,778


32%

38%

24%

16% 17% 15%

5% 3%

8%

47%

42%

54%

0%

10%

20%

30%

40%

50%

60%

All Retail Fast Food

After receiving text message, did you visit? By Category

Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text message

Totalg: 4,019; n= 1,784 – 2,235

Over 50% Did Visit Post Receipt

53%


Nearly ¼ On Average Purchased Post Receipt: Purchase Highest For Health & Beauty Products Which Had Strong Call To Action

22%

38%

26%

14% 17%

20%

29%

23%

61%

41%

67% 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

All Health & Beauty Retail Fast Food

Did you purchase due to receiving text message? By Category

Yes No, but I intend to No Total: 4,114; n= 964 – 2,044


Money-off Discounts Had Greatest Impact On Redemption; Location/Convenience Cited By Nearly 30%

5%

6%

6%

6%

7%

7%

10%

15%

14%

23%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

Other

Because it was convenient to redeem on my mobile

I saw an ad and it reminded me I needed to shop/buy

The text mentioned my local store by name / location

There is a holiday coming up that I need to shop for

I was intrigued by the information in the text message

I wanted to win one of the prizes

I was near a store

It’s a product I wanted/wanted to try

The money-off discount

Reason for Redemption By Category

All Retail Fast Food Health & Beauty Total: 1,287; n= 343 - 529


29%

22%

49%

60%

28%

12% 16% 19%

65%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No, but I intend to No

Have you purchased Women’s Personal Care Product yet? Base: Respondents who recall receiving message

All Respondents Regularly Purchase Do Not Regularly Purchase

All Respondents, n=722 Those who regularly purchase, n=216 Those who do not regularly purchase, n=506

Messages Had Greatest Purchase Impact On Prior Purchasers, But 35% Of Non-regular-purchasers Bought Or Intend To


For nearly 50%, the retail visit prompted by the text was unplanned; for 19% text served as reminder

14% 19%

49%

19%

0%

10%

20%

30%

40%

50%

60%

Yes, my visit was already planned.

Yes, my visit was already planned but the text

reminded me.

No, my visit was unplanned.

n/a – I did not visit a store/website after the

text message was received.

Was your visit to XXXX store/the XXXX website planned before you received the text message?

Base: Respondents who recall receiving text message

n= 960


For A Department Store, Messages Had Multi-Channel Impact: 45% Visited Website Post Receipt

24%

16%

5%

54%

0%

10%

20%

30%

40%

50%

60%

Yes: 1 time Yes: 2-3 times Yes: 4 or more times No: did not visit due to an O2 More text

message

After receiving an XXXX message about XXXXXXX, did you visit their website?

Base: Respondents who recall receiving text message

n= 960

45%


You Know Marketing & Your Customers, Use Best Practices • Keep in mind best practices learned through years of DR, email and

CRM:

o Develop tone that fits the brand and the product and makes it

sound distinctive

o Be careful of message burn-out, frequency

o Make it simple to follow up on/redeem

o Create a sense of urgency: Have a direct call to action/specific time/date if this is a promotional message

o Give them something to click through to


The future As mobile commerce and payments become widespread…


The future of mobile marketing – our world view

• Mobile content will be primarily an advertiser supported medium

• Mobile advertising currently based on search and display web paradigm… but this is not necessarily the end game

• Apps are problematic: need to be dowloaded, GPS only available when app is on, and inventory is fragmented

• Not about “ads” in the traditional sense, but “offers” that are actionable in the real world

o Opt-in

o Location-based

o Personalized

o Transactible at POS or via credit cards

o Today priced per-campaign or delivery, eventually will be performance-based


Mobile wallet will close the loop on promotions driving real-world purchases

For marketers, this allows for optimization of mobile promotions with

back-end conversion metrics based on CPA

Daily Deal Sites

Mine CRM/Purchase

Data

Promo Email

Opt-in to White-label ShopAlerts

Phone # + Preferences

tied to account

Consumer Gets Custom Offer

Consumer buys at

Merchant

Purchase data fed back to

CRM

Credit Cards

& Mobile Wallets

Carriers w/ Billing

© 1020 Inc., Proprietary and Confidential, 2010

Within reach…

“I’m hungry…”

Search for Nearby

Locations & Review

(All available through the lens of my camera

phone)

Source: media-cdn.tripadvisor.com/.../times-square.jpg

Pay with your phone

Alerts for Nearby Offers from

Favorite Brands

Instant Deals

Check-in & Fun

Friends Nearby… Dinner?

Presented by the Heartland Mobile Council

Thank you!

Alistair Goodman, CEO, Placecast

t: 510.502.3596 e: [email protected]

mobiu2011 lecture: strat221 location behavior insights - placecast

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