| Mobile Comes of Age |
| Thursday, 10 February 2005 | |
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Direct Response - Mobile marketing is seen as a promotional tool, but the time is now ripe for DM to take advantage. Until now, however, it is mainly promotional campaigns that have enjoyed its benefits. Paul Berney, director of mobile marketing firm Marvellous Mobile, explains: “It’s almost inevitable marketers think of mobile as a promotional tool only, when the best-known case studies in the market are text2win competitions, such as McDonalds and Cadbury’s.” But many experts agree this year will see a change. “CRM programmes are something clients are looking at increasingly.” Says Martin Corpus, managing director of interactive mobile marketing firm 12Snap. “They tend to put a toe in the water before decided to leap.” The technology is here Even though the link between CRM and mobile may not be yet be universally appreciated, the technology to achieve it is already up and running. Mobile is being used to enhance brand loyalty, for instance, as in the case of Lloyds TSB internet banking, which recently launched a free SMS alert service for its customers stating their current account balance, as well as details on their past six transactions. Mobile is also being used as a direct response mechanism where, for example, a customer receives information on a theatre production or film, and is invited to respond by booking tickets. It can also be used for repeat business, such as in the case of technical solutions company Versitec 200, which communicates to customers via mobile when their next MOT or service is due. Mobile is also becoming an effective data capture tool where customers are being invited to reply to a message, or a series of messages, with personal information. Richer technology has also put an end to restrictive black and white, 160 character SMS (short message service) communications through 2G networks. “We are at a stage where 50 per cent of people own a colour phone, capable of displaying images and downloading applications and music and accessing web pages,” comments Pamir Gelenbe, co-founder of mobile technology solutions provider Flytxt. MMS (multimedia messaging service) is making its mark, allowing users to send messages of up to 35,000 characters long, as well as pictures, sound, and even short video such as film trailers through 3G (third generation), as well as 2.5G and 2G networks. “Text alone does get a high response rates- between 15 and 40 per cent,” adds Berney, “but response rates for MMS are 25 per cent-plus.” WAP, or Wireless Application Protocol, allows mobile users to access the internet and is proving popular among consumers and marketers alike. Marketers take on WAP Apart from downloading Java-based applications that sit on a user’s handset, such as mobile games or polyphonic ringtones, WAP can also be used as a data capture tool. Pamir Gelenbe explains: “If you text in for your nearest car dealer, we could push a WAP page to your phone and ask you to fill in details just like you would on a web page.” While 58 per cent of handsets are capable of receiving images and videos, others cannot. Therefore, handset types, as well as mobile numbers, should be collected wherever possible. Companies such as Vodafone ask customers to specify their handset and then pool the data. But the cost of applying such rich technology for video and picture messaging has also become under scrutiny. There have been recent price cuts but MMS remains a multiple of the cost of sending SMS messages,” Corpus explains. But Pamir Gelenbe argues that “ Mobile is a cost effective channel compared to direct mail, for example. Sending a message is less than 10p and a WAP page costs roughly the same as an SMS, so while there is a cost worry, I don’t think it’s warranted.” Customers are far more likely to buy via mobile phone from a business that gather data and understand their requirements. Customer’s details can be captured in any number of ways. Nick Wiggin, executive director at the Mobile Marketing Association, says collating bite-size chunks of information over a period of time is the best way forward. He adds “Its really important to maintain timing and frequency, as long as they’re expecting to receive the communication at every time.” York theatre ran a campaign with the help of Mkodo asking customers who had texted in to book tickets, to supply their date of birth. This information was then used to send them birthday offers. When MindMatics ran a campaign for a film company, people texted in to receive an MMS of the film for free. To receive the next phase (each phase featured a different character or sound from the film, for example), they were asked to text in again, each time with a new piece of information. There are also readily available mobile data sources. List manager Avongate, for instance, holds a number of SMS database. Lindsey Johnson, MD at Avongate, comments: “its hard to build a list entirely from scratch. So it makes sense to use data that is already there.” One of its lists includes MindMatics’ database of six million double opted-in SMS records. The file is composed using MindMatic’s RedAlertz database, where individuals register their details online twice to receive relevant SMS alerts and special offers. After each campaign, any dead numbers are removed from the database. Regulation concerns But some experts are concerned that not all SMS lists are well managed. Wiggin argues: “There needs to be some alarm bells raised in terms of purchasing database. Its important to ensure double opt-in when communicating with a database to ask if they are still happy to receive communications.” Data also helps determine how often contact should be made, explains Berney. “I would argue that the frequency should be dictated by the customer.” Like other channels, mobile marketing is a regulated medium governed by a number of codes and key legislations. The Privacy and Electronic Communications Regulations, for example, states individuals must opt-in to receive these communications and opt-out whenever they choose. Other key guidelines and legislations to bear in mind include the Mobile Marketing Association’s code of conduct, the Direct Marketing Association Code of Practise, and the British Code of Advertising, Sales Promotion and Direct Marketing. These collectively advise on numerous areas of mobile marketing, such as bringing term sand conditions to the recipient’s attention, highlighting your sender identification, and being aware of content when targeting certain groups, such as children. As agencies and clients alike become more aware of this channel’s untapped potential, there are more likely to be exciting campaigns to come. © Copyright Flytxt Ltd 2006. Unauthorized use of any content constitutes a material breach. |
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