August 2013 - Mobivity

Everything and Nothing Has Changed With Mobile

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Mobivity’s CMO Jeff Hasen was asked by Wireless Week to assess the use of mobile by brands and small businesses. Here is his response:

“Even in 2013, years after mobile marketing has proven its worth, many brands continue to take tepid steps that leave them trailing their competitors and, even more importantly, disappointing and irritating their customers and prospects.

“A common challenge these marketers face is that they fail to acknowledge that everything and nothing has changed with mobile. The savvier brands know that the what is the same – they need to sell more product and build loyalty. It’s the how that is different.

“There is a large opportunity for those who map mobile strategies and programs to overall business goals.

“How large? Just ask mobile users.

“In survey after survey, we see that consumers are interested in joining a permission-based mobile loyalty club. The numbers consistently register at around one-third, which in the United States equals more than 100 million people. The more interesting number to me is how many say that have yet to be approached by a brand that they trust – more than 70 percent feel this way.

“The takeaway? We actually have a large number of consumers who have raised their hands and said that they are interested in being marketed to on their terms. Yet many businesses fail to pay attention to the customer, which, of course, is ill-advised whether we’re talking mobile or not.

“In my Mobilized Marketing book, Michael Bayle, a longtime mobile executive who is now Senior Vice President and General Manager of ESPN Mobile, said that consumers are rewarding brands that provide a positive mobile experience and punishing others who fail to deliver.

“Bayle assesses the situation this way:

“’They (marketers) have two choices – they can either ride the wave or watch the wave pour over them. We can equip them with a surfboard, equip them with the right tools so that it’s just not an investment and a spend but there’s tactically at the end of the day some return on investment we’re collectively monitoring that is better for their brand.’”

“And better for the bottom line, not to mention the customer.”

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The full article is here – http://www.wirelessweek.com/articles/2013/08/magazine-ups-and-downs-ads-going-mobile

SMBs Embrace Customer Loyalty Programs

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NetNewsCheck reported on the big opportunity for SMBs to create and profit from customer loyalty programs. Mobivity’s Stamp was prominently mentioned.

Here’s the article:

By Michael Depp and Eric J. Smith

Small businesses continue to be enamored with customer loyalty programs — with 38% currently offering such a program and another 21% planning to offer a loyalty program in the next year — according to new data from BIA/Kelsey. The findings are broken out from the company’s “Local Commerce Monitor,” its ongoing study of the advertising behaviors of SMBs

Small businesses estimate 17.7% of their total business in the next 12 months will be generated by customer acquisition promotions such as discount deals, daily deals, coupons or similar offers, BIA/Kelsey found. These promotions may or may not be aligned with a loyalty program.

“The data indicates solid interest and intentions in loyalty programs, which are becoming an increasingly important tool for customer retention,” Steve Marshall, director of research for BIA/Kelsey, said in a statement. “Going forward, we believe the proportion of business generated from both loyalty programs and promotions will rise significantly, as SMBs increasingly tailor their offerings to frequent customers and specific customer segments.”

Many of these loyalty programs are relatively unsophisticated, using paper-based methods, such as punch cards.

“In my mind that is driven directly by the fact that over half the programs extant that are being run by SMBs are home grown and therefore not very sophisticated and probably don’t tie in to other systems like CRM systems,” Marshall said in an interview.

BIA/Kelsey found that 54% of SMB loyalty programs are home grown. Just 38% of SMBs with home grown programs have an electronic tracking method.

Only 6% said their loyalty program is provided by a credit card company and is linked to the customer’s credit card. Another 6% offered a loyalty program provided by a third party other than a credit card company, including a new players in the space such as Stampt, FiveStars, Belly and Open Table.

Marshall says that opens up a large opportunity for service providers and credit card companies to enter the space and provide SMBs with more sophisticated platforms that link into a CRM system or a payments platform.

Many SMBs find loyalty programs come with inherent difficulties, with 56% of respondents agreeing with the statement that the identification and/or record keeping requirements of our customer loyalty program should be much simpler.

“That’s another reason why we believe there’s a third-party opportunity here,” Marshall says. “As long as there’s no great pain of implementation — it can be run off their POS and/or links in easily to some kind of CRM or customer list management or email program.”

Mobivity Retains Lytham Partners For Investor Relations

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PHOENIX, Arizona | August 21, 2013 – Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary and patented mobile marketing technologies and solutions, announced today the retention of Lytham Partners, LLC to conduct a national investor relations program.

Mobivity delivers a suite of mobile marketing products targeted to local businesses as well as sports and entertainment entities that engage the audience and enhance fan interaction. The Company’s mobile marketing solutions, based on its proprietary platform, enable local businesses to quickly and easily send targeted text messages to a database of its most loyal customers that have “opted-in” to receive the messages. This permits local merchants to offer unique promotions designed to increase in-store foot traffic, reduce downtime, and boost sales. Additionally, the company offers a mobile-based customer loyalty program through its innovative StamptTM application that replaces the need for customers to carry “punch cards” in their wallets. This system electronically keeps track of purchases and rewards those customers that attain milestones. Its services help local business obtain more customers, more often.

Dennis Becker, chief executive officer of Mobivity, commented, “Mobivity’s platform for local business marketing provides needed solutions in today’s changing environment. Mobile usage in the U.S. continues to rapidly expand. This creates a unique opportunity for local merchants to adopt our proprietary, and affordable, technology platform to reward loyalty through StamptTM and to quickly reach its opt-in customers via text message. Research shows that approximately 96 percent of messages are read within four minutes. We believe that our solutions provide the most effective and efficient way for local merchants to reach their most loyal customers and drive increased sales.”

Mr. Becker continued, “The company recently completed a financing that provides Mobivity with a relatively debt free balance sheet, and allows for us to execute on our business plan going forward. We are moving quickly to expand our sales force on a national basis, which has recently included the hiring of key sales executives. With significant progress being made, we believe the timing is appropriate to engage Lytham Partners, who has a demonstrated track record of creating broad awareness within the national investment community for leading-edge and emerging companies. We look forward to engaging with a new and expanded universe of institutional investors going forward that will drive shareholder value in the coming years.”

Robert Blum, managing partner of Lytham Partners, LLC, commented, “We believe Mobivity has a leading solution to address a growing void in today’s marketplace. Local businesses are finding it harder to successfully retain customers given the glut of marketing messages bombarding those customers on a daily basis. Mobivity’s mobile-based platform has proven successful in driving increased sales. We look forward to working with management to firmly establish its identity within the investment community as a leading technology solutions provider and to drive enhanced shareholder value.”

About Lytham Partners

Lytham Partners, LLC provides expertise and guidance to small-cap companies in the healthcare, technology, services, agricultural, industrial, aerospace and defense segments, as well as the consumer and capital goods industries. The firm is dedicated to generating substantive communications programs with an emphasis on developing management credibility via data, clear articulation of achievable strategic plans, and timely interaction with investors. For more information visit our website at www.lythampartners.com.

About Mobivity

Mobivity is an award-winning provider of a suite of patented mobile marketing technologies that drive sales, enhance customer engagement, and reward customer loyalty for local businesses and national brands. Its solutions, including an industry-leading text messaging product and innovative StamptTM mobile loyalty application, enable businesses across the United States to drive incremental business and profitability by quickly and effectively communicating discounts and special offers to their most loyal customers. Additionally, Mobivity offers a unique, high definition graphical system platform that allows its clients to enhance customer or fan experience by interacting with their mobile phones and video boards or screens in real time. Mobivity’s clients include national brands such as CNN, Disney, the NFL, Sony Pictures, AT&T, United States Tennis Association, Chick-fil-A, the Golf Channel, NBC Universal, and numerous professional sports teams, as well as thousands of small, local businesses across the U.S. For more information, visit www.mobivity.com.

Safe Harbor Statement

This press release contains forward-looking statements concerning Mobivity Holdings Corp. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the growth of the Company’s operations, sales force and revenue; the advantages and growth prospects of the mobile marketing industry; and the expected contributions to the Company’s success by its recent additions to management. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, our ability to successfully integrate our recent additions to management; our ability to develop the sales force required to achieve our development and revenue goals; our ability to raise additional working capital as and when needed; changes in the laws and regulations affecting the mobile marketing industry and those other risks set forth in Mobivity Holdings Corp.’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 21, 2013 and subsequently filed quarterly reports on Form 10-Q. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements. Mobivity Holdings Corp. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For More Information, Contact:

Dennis Becker
Chief Executive Officer | Mobivity
(877) 282-7660
Robert Blue, Joe Dorame, Joe Diaz
Managing Partners | Lytham Partners, LLC
(602) 889-9700 | MFON@lythampartners.com
 

Back To School Means Back to Mobile Basics

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Mobile Marketer asked Mobivity’s Chief Marketing Officer Jeff Hasen why retailer Kohl’s used text messaging to drive back to school sales. His response? Because they wanted to sell more stuff.

Specifically, here’s what he told the publication:

“Unlike email, SMS provides immediacy since more than 95 percent of texts are ready within four minutes. If Kohl’s relied exclusively on email, the retailer’s communication would likely be buried in many customer email inboxes Smart marketers long-ago planned for back-to-school, building databases and giving themselves a critical edge in breaking through the clutter.

“This back-to-school season is unlike the previous with more showrooming, calls-to-action at the point-of-sale, rewards for loyalty and purchases by mobile devices. Retailers who have failed to prepare with such basics as mobile Web sites will undoubtedly suffer.”

The article is here http://www.mobilecommercedaily.com/kohl’s-ups-mobile-ante-with-incentivized-back-to-school-campaign

What’s Working and Not In Mobile

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Mobivity’s Chief Marketing Officer Jeff Hasen authored this opinion piece for Mobile Marketer:

I am of the age where I must admit that my best Mouseketeers days are behind me.

Still, my mobile phone delivers an ad seeking talent for Disney. Oh, and by the way, I have no kids.

My luck is better than most – how else could you explain the level of success that I have attained?

But I am not so fortunate as to repeatedly be told through an iAd that I have been selected to finish a survey in exchange for a free iPad 2, $500 gift card or an iPhone 5. What is too good to be true is not too good.

Mobile is advancing, much like summer. But we still have a ways to go to deliver on all of the medium’s promise. Relevance, personalization and trust are not nice-to-haves – they are absolute necessities.

Here is some of what is working:

Loyalty clubs, many built off of unsexy but highly effective SMS, are delivering both for the consumer and for the brand. And it is happening even at the local level.

For example, this summer, a Chick-fil-a in Olathe, KS, saw a 46 percent response rate to a product offer sent to those in an opt-in database.

Three weeks ago, 45 percent responded to another offer.

In each case, sales numbers were hit despite the giveaways.

The store manager said that mobile is working for her because she is able to engage her customers, entice them to try a new menu item, and still meet business objectives.

Separately, Corona capitalized on the undeniable marriage between mobile devices and photo-taking by creating a program that enables customers to “find,” chronicle and share their summer. Winners will be featured in a Corona ad.

In addition, Corona rolled out on-product codes that consumers can enter via their handsets for a chance to win weekly prizes.

Consumers can submit a photo via MMS that shows how they celebrate summer to the short code 24455.

A bounce-back message then prompts users to reply with their birth date and their state’s two-digit postal abbreviation to be entered into the sweepstakes.

After a photo is submitted, a follow-up message encourages consumers to opt-in to Corona’s SMS program.

Beautiful. Mobile and photos go about as well as beer and a lime. Corona’s target audience not only enjoys a good time, but they enjoy sharing those moments.

Elsewhere, Starbucks now sees more than 10 percent of its transactions in the United States are made with a phone. And Starbucks is installing wireless charging mats in more stores, not only extending its digital offerings but raising the expectations of a Venti-size group of heavily caffeinated consumers.

Of course, Starbucks is not doing all this for benevolent reasons.

“Our internal measures tell us that these various digital initiatives have added demonstrable impact to our U.S. business in the third quarter, with the promise of even greater growth in the months and years to come,” said Starbucks chief digital officer Adam Brotman.

We certainly can say the same about mobile.

The opportunity is huge, but it is not a slam dunk.

Summer will soon turn to fall. I have old, tired eyes, but I am not in the market for mascara. That is for my wife’s phone across the room.

The expectations for personalization and the deliverance of value have never been greater.

(first published on Mobile Marketer – http://www.mobilemarketer.com/cms/opinion/columns/15927.html)

Mobivity Announces Second Quarter 2013 Financial Results; Provides Business Update

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Phoenix, AZ August 15, 2013 – Mobivity Holdings Corporation (OTCQB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced today second quarter financial results for the three-month period ending June 30, 2013.

  • Q2, 2013 Gross Revenue increased 7.6% to $1,085,610 from $1,009,398 in Q2, 2012.
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  • Q2, 2013 gross margins increased to 71%, up from 67% in Q2, 2012.
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  • Q2, 2013 gross profit increased 14.4% to $774,220 from $676,940 in Q2, 2012.

Dennis Becker, Chairman and Chief Executive Officer of Mobivity, commented:

“The second quarter of this year was a transformative time period for Mobivity. While continuing to grow revenues and sustain record gross margins, we have successfully relieved the debt burden on our balance sheet, completed a $12,710,506 financing, which is comprised of 5,354,506 in debt conversion and $7,356,000 in new working capital, completed a key acquisition and recruited a world-class management team. Equipped with a solid balance sheet, working capital and a management team with a demonstrated track record of success in the local advertising industry, Mobivity is now well positioned to execute an ambitious growth plan.”

Business Update

The Company continues to make strides in executing its core growth strategy of acquiring thousands of licensees to its mobile marketing Software-as-a-Service (“SaaS”) solution:

  • Completion of the acquisition of the Front Door Insights bringing more than 25 reseller relationships aimed at delivering Mobivity’s services to their customers and prospects. The largest reseller employs for more than 2,500 sales reps across the United States serving more than 700,000 existing local advertisers with various print and digital marketing solutions. This reseller began its national deployment of Mobivity’s SMS text messaging and “Stampt” smartphone loyalty application to its salesforce on August 1st.
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  • A large Quick Serve Restaurant (“QSR”) customer has accumulated more than 1.4M subscribers to its mobile marketing loyalty program powered by Mobivity and sees an average of more than 50,000 new subscribers per month.
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  • A very large QSR chain representing more than 20,000 locations worldwide is implementing a market trial of Mobivity’s mobile marketing solution this month, including both SMS text messaging and Mobivity’s “Stampt” mobile smartphone loyalty application.

Mobivity commenced its direct sales force expansion in July 2013 having recruited and activated sales teams in North Carolina, New Jersey, and Connecticut who are already acquiring local advertisers utilizing both SMS text marketing and Mobivity’s “Stampt” smartphone loyalty application. The Company plans on recruiting and deploying additional direct sales teams across the country.

Financial Summary

Q2 2013 F.Summary
(1) Please see non-GAAP reconciliation table below.

Non-GAAP Reconciliations
Non-GAAP Reconciliations

About Mobivity:

Mobivity is an award-winning provider of proprietary mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers via multiple channels. The only system of its kind, C4 is a cloud-based solution providing broad mobile communications and extensive CRM features. It is integrated with multiple tier-one PSTN/ IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Customers include CNN, Disney, Sony Pictures, AT&T, Verizon, USA Network, numerous professional sports franchises, the Golf Channel, and NBC Universal. For further information visit www.mobivity.com, or follow us on Twitter @mobivity.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: adjusted net income. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our “recurring core business operating results”. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

Cautionary Statement Regarding Forward-Looking Information:

This press release may contain certain “forward-looking statements” relating to the business of Mobivity Holdings Corporation. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding the impact of the proceeds from the private placement on the Company’s short term business and operations, the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf months are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For additional information, contact:

Robert Blum, Joe Dorame, Joe Diaz | Lytham Partners, LLC
602-889-9700 | mfon@lythampartners.com
www.lythampartners.com

Mobivity Granted U.S. Patent for Monitoring Wireless Carrier Networks

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PHOENIX, AZ — (Marketwired – August 6, 2013) – Mobivity Holdings Corp. (OTCQB: MFON), an award-winning provider of proprietary mobile marketing technologies and solutions, announced that the U.S. Patent and Trademark Office has granted the Company a patent that invents a method for Mobivity to monitor wireless carrier networks from the outside for real time network status and quality metrics.

The patent, the Company’s fourth, was published under U.S. Patent Number 8463306B1 and invents a system to safeguard time sensitive mobile marketing messages from being sent out despite unknown wireless carrier delays threatening the successful delivery of marketing messages within their intended timeline.

“If a user of our platform is wanting to send out a time sensitive offer via mobile message, i.e. ‘come in the next hour and get a free sandwich,’ then it’s imperative we know ahead of time if a certain wireless operator is experiencing delays in its SMS network,” said Dennis Becker, Chief Executive Officer of Mobivity. “The carriers don’t provide real time network status. This invention has solved that problem by allowing Mobivity to continually monitor carrier networks to ensure time sensitive marketing messages aren’t sent out during carrier network delay periods.”

About Mobivity

Mobivity is an award-winning provider of patented mobile marketing technologies and the inventor of C4, a unique, enterprise-grade platform empowering brands to engage mobile consumers across multiple channels. The only system of its kind, C4 is a cloud-based solution, which provides broad mobile communications and extensive CRM features to clients. C4 is integrated with multiple tier-one PSTN/IP carriers and micropayment processing facilities as well as with carrier premium SMS billing systems. Additionally, Mobivity offers a unique HD graphical system through their Display Technology, which allows fans to interact with their mobile phones and high definition video boards and screens in real time. Mobivity’s clients include CNN, Disney, NFL, Sony Pictures, AT&T, USTA, Chick-fil-A, the Golf Channel, NBC Universal, numerous professional sports teams, and many others.

Forward Looking Statements

This press release contains forward-looking statements concerning Mobivity Holdings Corp. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the growth of the Company’s operations, sales force and revenue; the advantages and growth prospects of the mobile marketing industry; and the expected contributions to the Company’s success by its recent additions to management. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, our ability to successfully integrate our recent additions to management; our ability to develop the sales force required to achieve our development and revenue goals; our ability to raise additional working capital as and when needed; changes in the laws and regulations affecting the mobile marketing industry and those other risks set forth in Mobivity Holdings Corp.’s annual report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 21, 2013 and subsequently filed quarterly reports on Form 10-Q. Mobivity Holdings Corp. cautions readers not to place undue reliance on any forward-looking statements. Mobivity Holdings Corp. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For additional information, contact:

Dennis Becker
Mobivity Chief Executive Officer
(877) 282-7660

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