Adventures in Mobile Marketing
Rosati’s Pizza started out with a mobile sign-up offer of a free medium pizza, but soon revised its offer to attract a more qualified mobile program participant.
In addition to a shared mail program insert, TCBY of Salisbury, Md., integrated its point-of-sale system with its mobile program for immediate program performance tracking and measurement.
While the industry buzzed and buzzed this year about social media (often using social media to do so!), another marketing discipline was steadily convincing a growing group of marketers to divert funds from offline channels. And while it likely will take another year or two to mature into a major player on the marketing front, mobile marketing has been putting up some convincing numbers.
Let’s start with Forrester Research’s projected increase in spending from $391 million this year to $950 million by 2012. That’s a pretty quick investment pace—even considering that Forrester analyst Shar Van Boskirk had initially anticipated an even larger shift, which was adjusted down because of the economic impact on budgets.
But the metric that’s clearly driving interest in this channel is ROMI. According to Why It Pays to Go Mobile, a report published in August 2009 by Aberdeen Group Research Fellow Jeff Zabin, best-in-class companies are 1.6 times more satisfied with their ROMI for mobile marketing programs. Such success, in turn, is leading the majority (62 percent) to increase their budgets for mobile efforts while they pull back or eliminate investments in other marketing activities.
“The ability to more effectively manage the three stages of the customer lifecycle—customer acquisition, customer retention and customer profitability—speak not only to some of the most compelling benefits that can be realized through mobile marketing activities but also to the core value drivers of practically any company competing in today’s business environment,” Zabin writes.
Michael Ahearn, vice president of marketing at iLoop Mobile, a provider of mobile services and technology in San Jose, Calif., points out that where consumer use trends go, marketers naturally follow. “After the CTIA show, I looked over their new report, and we’re pretty much at 90 percent penetration for mobile subscribers for the total U.S. population,” he says. “Marketers want to be able to reach and communicate their messages to consumers on the device that is most important to them.”