Case Studies Archives - Mobivity

Mobile Becoming a More Powerful Consumer Revolution Than Web

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When looking at the rate at which consumers adopted the internet boom of the 1990′s and early 2000′s, it’s becoming more clear each day that the mobile revolution is poised to be much more powerful and disruptive to the way consumers interact with businesses, according to a new report from Forrester Research.

Throughout the “How to Start Bridging the Mobile Monetization Gap” report Forrester Research notes that although mobile is evolving faster than the Web could have ever dreamed of, sound monetization strategies are not currently following close behind. In the report, Forrester notes that “few businesses can survive on mobile as a standalone business model, meaning that mobile more often than not takes on the role of an extension of an existent business model.” And, as Thomas Husson (Paris-based analyst at Forrester Research) notes:

“Marketers need to combine new marketing variables such as time, consumer knowledge, and place to deliver more personalized, immediate and tailored content on mobile phones. They need to anticipate the emergence of new forms of interactions with consumers by providing immersive rich-media formats that provide personalized, contextually-relevant content that is not perceived as ads by consumers,” he said. “It requires marketers to identify the value that mobile engagement brings throughout the customer lifecycle.”

Mobile Growth
Many companies like Facebook, Rovio, Twitter, Pandora, and Groupon often generate headlines in the mobile industry because of their large groups of mobile users. However, these companies have not proven business models that directly support their mobile users. One example of this conundrum is Facebook, which claims that nearly 60 percent of all its user-base is accessing the site from mobile devices, yet revenue generated from mobile only represents 15 percent of the company’s total revenue.

Similarly, Rovio boasts nearly one million app downloads via popular app franchises like Angry Birds, yet thirty percent of the company’s revenue still comes from merchandising and licensing sources, not mobile.

Global Change
Mobile web is growing at an incredibly rapid pace globally compared to the rate at which the internet grew (and is still growing). While there have surely been growing pains along the way, Forrester forecasts that by 2017 mobile internet will reach 29 percent of the Indian population, 37 percent of the Brazilian population, and 64 percent of Chinese populations; which is absolutely astounding if you consider the rate at which internet is still growing in these countries.

However, there are two key aspects that business models like Facebook and Groupon don’t offer business looking to reach customers on the mobile channel, retention and continuity.

While these mobile models offer consumers the access to businesses via extremely populated channels, they lack a key aspect for businesses to see mobile success: the access of businesses to mobile consumers. This will be the key defining factor in coming years in the success of mobile. Advertising has always been about how to best reach the customer, and how to best influence or encourage their purchasing decisions.

Mobile marketing offers that don’t consider this sort of retention will begin to fall to the wayside as corporations, small businesses, and consumers alike become more aware of the mobile world – leaving only the mobile marketing companies who can guarantee one thing, and one thing only. More customers, more often.

Daily Deal Sites – Good For the Consumer, But Bad For Business

Posted by | Case Studies, General, Mobile Advertising | No Comments

It’s hard to imagine a business or consumer that has been untouched by daily deal sites like Groupon and Living Social. Since Groupon’s beginning in 2006, the daily deal site has grown to have deals in over 300 markets in the United States, and boasts of 35 million active users (surprising, right?). The only current competition to Groupon is the similar deal site, Living Social – yet Groupon doesn’t see them as fierce competition as made obvious by their rejection to Google’s 6 Billion dollar acquisition offer (yes, 6,000 times more than his initial demand). With this much financial and social success, Groupon has to be doing something right, right? And Groupon has to be benefiting businesses enough for them to keep participating, right?

Not necessarily.

As Utpal M. Dholakia, business professor for the Jesse H. Jones Graduate School of Business at Rice University, states:

“Although social promotions, especially Groupon promotions, have been wildly popular with consumers, it is unclear how businesses fare upon running such promotions. In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, we find that the promotion was profitable for 66% and unprofitable for 32% of respondents.”

Only 2/3 of Groupon’s customers actually see a profit from the deals they offer? Well that doesn’t seem right. But that’s not even the worst of it. Countless times we have heard of horror stories like Rachel Brown’s. Rachel, like many like her, had lost nearly a year’s worth of potential profit when the Groupon deal for her cupcake shop finally ended, nearly bankrupting her. Yet this isn’t farfetched in the daily deal industry. Thousands of businesses see rises in profit, and increased customers in seats, with one main caveat.

When Groupon brings customers to a business, they bring one-time unloyal customers that aren’t likely to return without another Groupon deal.

It is hard to stomach taking a loss in nearly any business marketing venture, as the goal of marketing and promotion is to bring in more customers. When Groupon and other daily deal sites like it bring customers to a business or location, they are bringing Groupon-Loyal customers to a business for a one-time deal, rather than increasing the amount of loyal customers that each business they market with has.

And this is one of Ekaterina Walter’s suggestions of where and how businesses should look for alternatives to popular daily deal sites. According to Walter, the two main things that businesses should focus on when looking at an alternative to Groupon and similar companies is Loyalty, and offering targeted deals. As Walter (wisely) states:

“One of the biggest concerns with daily deals is that many buyers watch carefully for good deals, but have little interest in paying full price for a service or a product. These buyers don’t come back after they score that one great deal. But loyal customers are the most valuable for most businesses.”

This leaves a few primary differences between the benefits of daily deals, and the benefits of mobile marketing – specifically text message marketing. Daily deals offer the grandiose vision of bring thousands of customers into your store by promoting your business to their “millions” of subscribers. But the key to a successful marketing campaign isn’t creating one-time high-paying customers, the key is to create loyal and returning customers which will be more valuable in the long run for your business. By starting a text messaging or mobile marketing campaign, business owners are given the benefit of being able to create an opt-in database of customers willing to receive targeted and specific specials and offers to increase traffic at times convenient for business owners. This two-fold action then creates a higher sense of loyalty and satisfaction between both business owner and consumer.

By doing this, businesses can create a group of loyal and returning customers, allowing them to increase business at key times with a form of marketing that has one of the highest proven ROI’s available. And that’s what Mobivity offers. We don’t promise thousands of one-time customers, we guarantee more customers more often. It’s what we do. By building a database of loyal and returning customers, we offer you the opportunity to grow your business organically and virally through an effective and proven medium. But don’t take our word for it, you can get started for free today to see the benefits of leaving behind potentially destructive marketing mediums for a platform that has been proven to work, and work best for both business and consumer.

SMS Marketing and the Healthcare Industry

Posted by | Case Studies, General, SMS | No Comments

The National Cancer Institute recently enlisted SMS and text messaging as it’s premier method for engaging in a discussion with young adults about quitting smoking early to avoid health complications later in life. The program is designed to deliver messages containing targeted advice and encouragement to help young people quit smoking. Teens and young adults can enter the program by texting QUIT to 47848 or through the SmokefreeTXT website. Jed Alpert, CEO of Mobile Commons, states that:

“Mobile messaging makes sense for the National Cancer Institute or any entity in the healthcare industry seeking to engage people around a health issue. This is for the simple reason that mobile messaging – in this case, text messaging – has nearly universal reach and, more significantly, the highest read and response rates of any communication channel. For the National Cancer Institute who is communicating a message of smoking cessation, there simply is not a more effective or more inclusive method than mobile.”

Mobile Commons worked with the National Cancer institute to design and implement this program to educate and aid young adults around the country in developing healthier lifestyles. By connecting with young smokers on their mobile phones, the National Cancer Institute hopes to more effectively encourage them to quit since text messaging is such a popular activity among teens and young adults. Teens exchange an average of nearly 3,500 messages per month, according to data from Nielsen. Mobile Commons and the NCI are driving traffic to their campaign through Social Media websites popular with young adults, as well as more organic marketing and searching approaches (see: the importance of multi-channel marketing).

“Every day we see more departments of health, healthcare providers, hospital groups and pharmaceutical companies seeking our help in utilizing mobile to improve those outcomes in a cost-effective manner. This includes some of the most challenging situations, including complex drug and behavior regimens among HIV patients and reaching the most underserved populations with respect to public health priorities such as vaccinations.”

Whether you’re attempting to run an educational campaign, or simply set up an appointment reminder system at your local doctor’s office, text messaging is an incredible asset to connecting patients and healthcare providers nationwide. To learn more about setting up a mobile marketing campaign for your business or provider, give us a call today.

To read more on Mobile Commons work with the National Cancer institute, click here.

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