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

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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

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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.

Utah State University Achieves Rapid Mobile Audience Growth with CommerceTel’s Txtstation Technology

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CommerceTel Corporation (OTC.BB: MFON.OBNews), Mobivity’s parent company, announced today that Utah State University has renewed their mobile texting program for the next three years using CommerceTel’s patented mobile marketing technology.

A new texting club sponsored by the Jon M. Huntsman School of Business during the 2011-12 school year attracted over 4,000 students, according to the school’s co-director of strategic marketing and brand management Eric Schulz.

The club, created as a way to inform students about upcoming business school events, also sent out information about general campus events.

“Texting is the preferred method of communication for students,” Schulz said. “It’s relevant to what we’re doing here, and it’s the best way to communicate with them. Every time we used the texting platform this school year, it worked wonders. It is especially good at generating crowds for special events and special speaking engagements. Many times we had overflow audiences where in the past we’d be struggling to fill up half the auditorium.”

Text message announcements help students to stay informed without having to sit down and use a computer, said freshman international business major Aimee Matheson.

Schulz pulled the idea of starting a texting club from his experience working at the Utah Jazz, where he started a similar program with CommerceTel technology.

“Texting is one of the key marketing tools that is really evolving,” he said. “The experience I had with the Jazz really convinced me of its power. CommerceTel and Txtstation’s technology has empowered us with an unparalleled toolset to drive success from the mobile channel.”

He said texting has capabilities that other forms of communication do not, noting that social media pages like Facebook and Twitter tend to bury messages. Email, he said, is ineffective, because most students only check their email in the evening.

Read the full press release here.

Abandoning the Cord

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It isn’t news that Americans are hastily moving away from the world of landlines and desktop computers to a mobile and wireless world.  In December a government study entitled the National Health Interview Survey turned up some interested results.  Nearly 1/3 (32%) of all United States households have completely abandoned landlines in their homes and rely solely upon their mobile devices.  Even more interesting, there are some detailed statistics showing the younger generations of our country adopting this lifestyle in an even faster and more drastic way:

  • Nearly 6 in 10 adults aged 25–29 (58%) lived in households with only wireless telephones.
  • Nearly three in four adults living only with unrelated adult roommates (71%) were in households with only wireless telephones.
  • More than half of adults renting their homes (52%) had only wireless telephones.
  • Adults living in poverty (47%) and adults living near poverty (38%) were more likely than higher-income adults (28%) to be living in households with only wireless telephones.

Interestingly enough, this trend seems to be taking America by storm, regardless of your socio-economic status or place in life.

Sarah Radwanick, manager of marketing communications at comScore, sees this trend as something that not only cannot be overlooked, but must be taken advantage of:

Mobile and tablet media consumption is becoming an increasingly important part of consumers’ daily digital lives and marketing strategies need to reflect these evolving consumption habits.  This shifting landscape creates a tremendous opportunity for marketers that understand how their audiences are engaging with these various devices throughout a given day and use this knowledge to develop smart strategies that most effectively and efficiently reach these multi-device consumers.

Even without looking at the amount of US consumers abandoning landlines, nearly 42 percent of mobile users in the US now use smart-phones – allowing an opportunity for businesses and brands to create unique and media rich mobile experiences for their customers.  From SMS campaigns, to mobile wallets, to app construction and TV interaction through the mobile channel, businesses and brands alike are beginning to truly engage their fans and customers in an efficient and effective way.

For a look into how to take your business into the mobile world of advertising, call today to speak with one of our Account Managers about interacting with your customers in a way like never before.

Press Release: “Miami Dolphins Score with Concerted Mobile Effort”

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One of the most mobile-savvy organizations in the NFL is, without question, the Miami Dolphins. And the effort is clearly paying off.

Mobile has quickly become an integral part of our overall marketing and fan engagement strategy,” admits Wayne Partello, Senior Director of Content and Creative Services for the Miami Dolphins. “We wanted to communicate with our loyal and passionate fans anytime, anywhere, and in a cost-effective way. Using Mobivity’s mobile marketing platform, we not only increased our mobile subscribers by over 300%, but also exceeded our advertising revenue projections by a wide margin.

To read the full article on the Miami Dolphin’s effort, click here

**CommerceTel, Txtstation, and BoomText have come together to create Mobivity, an integrated mobile solutions provider prepared to turn anyone’s mobile advertising goals into a reality.

Press Release: “CommerceTel Drives Houston Texans’ Mobile Subscriber Base Increase”

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The Houston Texans increased their mobile subscriber base by more than 200% using Mobivity’s patented mobile marketing technology.

“The response from our fans reflects the success of our venue and the technology supporting it,” said Nick Schenk, director of integrated media at the Houston Texans. “We’ve seen an unprecedented increase in our mobile audience since implementing Mobivity’s solution. We believe we have only started to tap the vast opportunities to increase fan experience and sponsorship value through Mobivity’s mobile marketing platform.”

To read the full article, click here

**CommerceTel, Txtstation, and BoomText have come together to create Mobivity, an integrated mobile solutions provider prepared to turn anyone’s mobile advertising goals into a reality.

NFL Uses Mobile Marketing in Super Bowl Advertising Win

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Nearly everyone in the marketing world acknowledges that the Super Bowl is just as big of a day for the players as it is for businesses around the world.  Last year Super Bowl XLV became the most watched televised event ever with over 111 million viewers, overtaking the previous record holder of M*A*S*H during it’s final episode.

For this reason, advertisers and businesses alike saw a unique opportunity this year – to finally integrate mobile technology that has been available into their ads.  With 30 second ads running for $3.5 million this year, advertisers sought out a way to bring the viewer experience and interaction with their brands beyond the simple 30 second quirky ads that the Super Bowl is known so well for – enter the world of mobile marketing.

There were many key players who integrated mobile marketing and interaction into their ads – from music tagging applications, to Facebook and Twitter calls to action, everyone seemed interested in bringing this interaction beyond a 30 second piece of entertainment. We listed below three of the biggest mobile competitors from Sunday night:

1. Shazam

One of the most prominent and recurring participants was Shazam, a mobile phone application allowing users to “tag” music playing to discover who the artist is and what song is playing.

Companies such as Toyota utilized their 30 second ads as an opportunity to bring the business to consumer interaction beyond the first screen and create a longer and more meaningful interaction.  Toyota displayed a Shazam tagging icon on the screen during their ad, then allowing the viewer to tag the song, discovering who was singing, as well as view some rather conveniently placed Toyota ad-spots within Shazam itself.

While Shazam seemed a very successful and prominently used interaction type during the Super Bowl, many viewers complained that the call to action, while strong and well received, was not displayed long enough for enough user action.  However, despite it’s flaws, Shazam seemed to be a heavy hitter for many companies during the Super Bowl.

2. QR Codes

One of the other key players in Super Bowl XLVI’s mobile movement was GoDaddy with the use of a QR code to drive additional traffic to their Web-Domain selling site.  Though the use of QR codes has recently seen a rather large spark, their effectiveness and usefulness is still in question.

Many viewers complained of problems while attempting to interact with GoDaddy’s mobile call to action.  Problems seen throughout tech blogs and Super Bowl recaps detail issues from the QR code simply not working, to it being too small to view with a code-reader on mobile phones, to the code not being up long enough for the call to action to be effective at getting viewers to interact with the business beyond the initial 30 second ad.

GoDaddy did state they they received a large spike in traffic during the Super Bowl, but failed to comment on whether or not it was any larger than the usual spike in traffic due to their typically racy and eye-catching ads.

While their attempt was valiant, a longer and more interactive call to action may have landed GoDaddy better viewer response and increased traffic – but in our eyes the jury is still out on QR codes.

3. Text Messaging

One of the largest mobile interactions provided during the Super Bowl was the NFL’s own text campaign that was shown throughout the game.  The NFL used our company (you can learn more about what we do here) to promote their new Fantasy game, where users that register have a chance to win $1 million.  We may be slightly biased, but the NFL seems to have had the most successful of all mobile interaction campaigns throughout the Super Bowl ads.

The call to action was clear: Text NFL to 69635 (MYNFL) for a chance to win a million dollars.  Perhaps the determining factor for the NFL’s success here was the sheer amount of saturation each viewer encountered.  Throughout the 30 second ad, “Text NFL to 69635″ held around 22 seconds of screen time.

In addition to this, the call to action was displayed in the header and footer of the screen throughout the game, giving any viewer who missed the call to action in the commercial (which aired over 10 times by our count) the opportunity to still participate.

While the NFL seems to be the clear winner of mobile interaction, the amount of mobile saturation throughout Super Bowl ads was extremely impressive and a good sign of things to come – even if other participating companies dropped the ball in almost as big of a way as Wes Welker.

For a full recap on all mobile and social interaction and calls to action during the Super Bowl, check out this article on the Mobile Marketer by Rimma Kats, Chantal Tode, and Lauren Johnson.

To learn more about integrating a text messaging campaign into your business and advertising needs, give us a call.

Case Study: Southwest Airlines Contest Nets 10,000 SMS Entries

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I just came across this article from January 2011. This is a fun promotion, successful for the participants and shows a lot of creativity in the execution. 

From Mobile Marketer, highlights include:

Promotion
Southwest NBA Finals Getaway Text-2-Win

Target audience
Fans of the National Basketball Association’s Boston Celtics

Call-to-action
Win a flyway trip to the NBA Finals in Los Angeles, including a pair of tickets to a 2010 NBA Finals game, roundtrip airfare and hotel accommodations.

Marketing Takeaway
“This particular case study exemplifies a truly successful interactive campaign that leveraged the station’s promotional assets and text-message platform to reach thousands of consumers in a very short amount of time.”

In January, 68.1% of U.S. mobile subscribers used text messaging on their mobile device

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No surprise here, the number is unchanged from last period, confirming again that text messaging is a very popular activity for phone users.

Per ComScore, 68.1 percent of U.S. mobile subscribers used text messaging on their mobile device (Jan 2011):

 image

It makes a good case that marketers should always give their prospects and customers the option of receiving SMS marketing communications as part of an integrated program.

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