Day: July 10, 2010

Your Customers Are Going Mobile

We’re in the midst of yet another technological revolution slated to be bigger than that of the TV or PC and marketers will be faced with how to most effectively deal with it.

The new market is Mobile and it is about to change everything.

No longer will the customer be found tethered to a TV or PC screen, perfectly positioned to receive a marketer’s message on the marketer’s terms. The Mobile consumer is on the move, on location, and the marketer will have to find where their customers aggregate in this new digital landscape and how to interact with them by adding value.

It’s not the lean back of TV or the lean forward of the PC, but rather the lean very forward of Mobile. It’s up close and it’s personal. Mobile customers are doing a lot more than talking on their phones, based on the latest Pew Research Center study Mobile Access 2010:

  • The majority (54%) have sent a photo or video
  • More than a fifth (23%) have accessed a social networking site
  • A fifth have watched a video
  • Eleven percent have purchased a product
  • Eleven percent have made a charitable donation

These Mobile activity indicators are barely the tip of the iceberg of what Mobile is doing to the marketing landscape. More than 13 million people accessed bank accounts through Mobile sites in one month and more than five million people are using banking apps, according to comScore. And that’s just one industry.

The size and scope of Mobile cannot be underestimated. By 2013, there will be roughly five billion mobile subscribers worldwide, according to noted research firm IDC. And global enterprises will be impacted in even more profound ways.

For example, nine out of 10 Mobile users in China text on their phones, based on research conducted by Sybase 365. In the U.S. market, they found only 13 percent use Mobile commerce and customer relationship management (CRM) solutions. While that’s slightly higher than Canada, nearly half of those in China already use such systems.

In Japan, consumers are accustomed to swiping cell phones rather than credit cards for payment and in South Korea free Mobile TV has been around for five years and broadcasters there say almost 30 million people watch TV regularly from their phones.

Many of the large brands already have been experimenting with Mobile while many are taking a wait and see approach. In a Mobile marketing study we conducted at the Center for Media Research at MediaPost Communications, 41 percent of those not yet doing Mobile campaigns do not plan to in the foreseeable future. Another study by Acquity Group showed that only 12 percent of the top 500 retailers had sites optimized for Mobile phones.
The time for marketers to get into Mobile is now. It is the wave so you can be on it or under it.

  • What is the overall Mobile strategy of the business?
  • Where do your Mobil customers aggregate and what Mobile platforms do they use?
  • What role does your CIO or IT department play in this? Are they onboard?
  • Can your point of sale system or rewards program be integrated and maximized for your Mobile customers?
  • How do you plan to deal with your customers on location?

And those are only some of the questions that need to be addressed.
Mobile marketing is not about providing coupons and discounts, it’s about determining how you will interact with your customers when and where they want and defining the future of your brand in the Mobile environment.

Chuck Martin

Chuck Martin is a New York Times business bestselling author and was the founding Publisher of Interactive Age, the first publication to launch in print and on the Web simultaneously. He is Director of the Center for Media Research, MediaPost, in New York and former Vice President of IBM’s publishing and advertising division. He is the Co-Publisher and Editor in Chief of Social Media Marketing Magazine. He is currently writing a soon-to-be published book on Mobile.

Can the social web play a role in customer retention?

The recession has culled the weak from the pack but it’s likely that your competition is still fierce. Is there a way to attract and retain B2B customers without lowering your price? And is there a way to leverage the social web to keep your customers … even in the extreme case of a commodity market?

Holding onto customers in a buyer’s market is one of the most extraordinary challenges in business, especially if you’re selling a commodity (Commodity = purchasers view suppliers as identical on all factors but price, i.e. common coal, steel, or chemicals).

There is usually only one winner in a commodity market — the lowest cost supplier — except in periods of high demand when supply falls short. But there are ways to lock-in customers even in ugly downturns. One strategy I used throughout my career was to create a systematic plan to raise switching costs. By this I mean create obstacles — through valuable benefits — to prevent a customer from leaving you for the competition.

A process to retain customers

This process starts with getting out to your most valued customers and listening. And I mean REALLY listening. We would sometimes have half-day sessions to explore un-met and under-served customer needs that would …

  • Improve their competitive position
  • Enhance profitability or productivity
  • Eliminate waste
  • Lower risk
  • Increase speed to market

One strategy that uncovered potential points of differentiation was to ask customers what they hated about their job. This always seemed to get people to open up about an idea we could implement to make their life easier! Some other potential approaches to this challenge:

  • Solve a customer problem (reporting, data-gathering, analysis/testing) that might add slightly to your cost, but establishes enough value to create a hurdle to switching
  • Create a specialized service that would be difficult for competitors to match (we did a specialized truck-return recycling program, for example)
  • Work actively with customers to influence specifications and terms that could advantage my company or disadvantage a competitor
  • Focus retention efforts on most profitable customer locations
  • Look at eCommerce integration options to enhance retention

Notice that all of these ideas go beyond the basics of price, quality and service. Those aren’t strategic initiatives. Those are competitive tablestakes these days.

When customers don’t play nice

This process of listening, reacting and renewal must be continual and integrated through an effective CRM system. But it doesn’t always work.

In the middle of all this great creative marketing work I just suggested is another dynamic. Purchasing may not want you to implement your ideas – even if there is an advantage – because it reduces their flexibility with suppliers. They may even force you to hand over your innovations to competitors. I witnessed this in the automotive market in the 1990s. This ended up hurting customers because when there is no reward for innovation, innovation ends.

Now what about the social web?

Is it possible to develop some distinct value through social media that could create a switching cost? My answer – probably not. The social web might be a tool to listen and tune-in to possible innovations and market needs but I don’t see how social networks can create sustainable switching costs in this part of the sales cycle. It’s free to everyone and easily duplicated by competitors.

However, I do think you can create PRIVATE information networks and communities that create distinct value. For example, one idea that worked really well was a private, unique market information hub for customers who remained in our top tier in revenue.

What are you doing to hold onto your best customers in tough economic conditions? Can you think of any way to leverage the social web for DISTINCT value in a commodity market?

Mark Schaefer

Mark Schaefer is Executive Director of Schaefer Marketing Solutions and CMO of Freesource Inc. You can find him on Twitter at @markwschaefer and on his blog {grow} at www.businessesGROW.com

5 Steps to Add Social Media to Your Marketing Mix

Social media participation is a marketing game changer for every size of business. The playing field is leveled and companies from @Ford with 198,000 employees, to @AmeriChoiceFCU with 60 employees, to @GoodHlthRewards with 7 employees have equal opportunity to tell their story, attract an audience, listen to the customer, and make the sale.

Perhaps you think blogging, tweeting, and checking-in is a fad. Who cares if @AlanBr82 had coffee at Starbuck in Camp Hill, Pennsylvania? @Starbucks cares and commercial real estate developers like @RichardEJordan2 care.

“Social media brings new tools to our preliminary market studies,” says Rick Jordan, CEO of Smith Land & Improvement Corporation. “In real time, we can learn consumer trends and desires. Twitter is one massive focus group. As a property owner who leases office and retail space, it’s good to know that our tenants have a loyal following and are building community. By tracking conversations, we can discover what products and services people want in a region and attract specific tenants to fill the needs. That’s good for business.”

Chances are high that your competition is already engaged on LinkedIn, Twitter, Facebook, YouTube, Flickr, and Foursquare. To find out, go to www.socialmention.com, www.trackle.com, or set up some Google Alerts. If you’re not on at least one of these social platforms, you can join the conversation today to add social media to your marketing mix. It’s never too late to tell your story.

Where should you start?

1. Meet with the CEO to establish executive buy-in. Top-down support drives a social media marketing campaign. Peter Aceto (@CEO_INGDIRECT) is an excellent example of an executive who harnesses the power of social media for a business advantage. He tweets about his institution, his team, his family; and he has gained loyal customers and fresh insight because of his transparency. Ford’s Global Digital Communications Director @ScottMonty explains the power of these tools and the CEO’s support in a video interview at Ford’s World Headquarters in Dearborn, Michigan. Whether an executive understands these nascent tools or not, dismissing them can be business suicide.


2. Develop a social media strategy. Don’t make this step too difficult—plan for where you want to engage your target audience (are they on Facebook or LinkedIn, are they local or global, are they retail or B2B), and plan the content of your messages. Focus your strategy, and commit to participation in at least two channels where your customers or clients are. Determine objectives, messages, and who will lead the messaging. Every tweet and post embodies your brand. Don’t be fooled by the language and brevity in the social media. Those 140 characters carry tremendous potential to boost your brand or set off a PR nightmare. Are you determining trends, seeking opinions, looking for new customers, finding influencers, or pitching the media? Start with measurable objectives and allocate sufficient people, time, and money to accomplish them. (This is where the value of #1 is realized.)

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