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Todays multi-tasking consumer is gradually becoming

more comfortable using multiple channels and devices to

gather product information, compare prices and check on

product availability. To adapt to this new wave of shopper,

retailers are developing cross-channel campaigns and

marketing techniques that will effectively reach consumers

across all touch points.

Just as email created a foundational way for retailers

to send offers and stay in touch with customers, mobile

is emerging as a valuable channel to improve brand

awareness and activate relationships with both new and

existing customers.

In the last few years, the capabilities of smartphones

have grown exponentially, extending the power and

convenience of the Web anywhere and everywhere a

consumer travels. As a result, the installed base of mobile

devices has exploded.

According to the Forrester Research report titled Mobile

Commerce Forecast, 2011 To 2016, the mobile commerce

industry is expected to reach $6 billion by the end of 2011,and $31 billion by 2016.

As impressive as those forecasts are, it is critical that

merchants realize mobile is not only for driving

transactions. While many retailers have been quick to

invest in developing M-commerce sites and platform

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product or brand, they are only a few clicks or steps

away from moving on to a competitor.

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has made it a growing area of interest in designing

new, more direct ways for retailers to communicatewith shoppers.

However, in order to fully capitalize on the power of mobile

consumers and create a valuable brand experience,

retailers must develop strategies and tactics to activate

and engage shoppers via multiple platforms and devices.

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activate and engage consumers is through SMS (Short

Message Service) campaigns. Research provided by

the International Telecommunications Union shows the

total number of SMS messages sent globally tripled

between 2007 and 2010, from an estimated 1.8 trillion to

a staggering 6.1 trillion.

The majority of U.S. mobile users (72%) are sending

and receiving text messages on a daily basis, according

to a 2010 Pew Internet & American Life Project Report.

Considering this huge proliferation of text messaging, SMS

campaigns provide a way for retailers to reach shoppers

through the channel they use most to interact with family

and friends.

Case studies have shown that by sending instant and

relevant messages to customers and providing them with

a strong call-to-action, retailers can bolster their brand

reputations as well as their top line revenue.

This white paper will explore the current state of mobile

commerce and how consumers are beginning to utilize the

channel to receive retail information.

In addition, the paper will highlight the potential of SMS

campaigns by providing examples of multiple retailers

that have adopted the strategy to build relationships with

shoppers.

ACTIVATE AND ENGAGE:How Adding SMS To Cross-Channel CommunicationCan Optimize Retailer-Customer Relationships

The mobile commerce

industry is expected to reach

$6 billion by the end of 2011,

and $31 billion by 2016.

-Forrester Research


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Mobiles Growing Influence: M-Commerce & BeyondWith the number of wireless subscribers tapping into

mobile Web increasing steadily, so has the number of

customers browsing and purchasing through mobile

storefronts and retail applications.

In the last six months, M-commerce has grown 25%,

the highest increase of any mobile channel, according

to Peter Sheldon, Senior Analyst, Forrester Research in

the webinar titled What Retailers Need To Know When

Selecting and Implementing An M-Commerce Offering.

The continued advancement of smartphone technologies

has turned mobile into an integral part of the multi-channelshopping and buying process. In a survey of 1,800

mobile phone users and an observation of 30 shoppers

conducted for the Marketing To The Mobile Shopper

report, Arc Worldwide and Leo Burnett determined that

half of respondents consulted their phones while shopping

and 80% used their phone in-store.

Although some retailers are focusing on developing

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suggest retailers are better served by implementing a

mobile strategy that appeals to users who use basic

mobile functionalities searching, checking email and

texting. That way, they will reach and appeal to awider audience.

If you look at the way consumers in North America use

their phones, it didnt change too dramatically between

feature phones and smartphones, said Gary Schwartz,

MEF North America Chair and CEO of Impact Mobile.

Theyre still using them to interactEssentially what

people are doing with their phone is in two buckets: theyre

texting and theyre browsing.

With an estimated 170 million people instantly

communicating their thoughts and feelings through text

messaging daily a number that is bound to increase in

coming years SMS is a key tactic for retailers to up the

ante on their mobile strategy, which is already taking holdon the retail market by providing seamless browsing and

buying processes. SMS also allows retailers to spread

awareness of their mobile presence and keep shoppers

engaged by offering coupons and initiatives.

How To Win The Opt-InSpread the word: SMS initiatives and information on opt-in specials, coupons and deals should be clear

and visible throughout multiple channels. To create buzz through mobile and Web, include the mobile opt-in

next to email opt-ins on social media sites and the web site. Retailers also should consider including it on

packaging, print and Web ads, billboards, and street marketing pieces.

Make the offer clear: :KHQVSUHDGLQJWKHZRUGRIDQHZ606RSWLQSURJUDPUHWDLOHUVVKRXOGUVWGHYHORS

a clear message of what they will be offering to customers. Whether the incentive is weekly coupons, deals

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and what theyll be getting when they opt-in. All campaign promotion should feature the initial payoff and

shortcode to subscribe.

Develop the relationship: Overall, retailers relationships with shoppers should continue to develop and

grow beyond simply capturing the mobile number. Retailers should receive further information on shoppers

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the right consumer for further communication.

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Mobile How Tos: Strategies for Connecting with ConsumersImmediacy is the key trend seen among all retailers that

have successfully implemented an SMS strategy they

determine the right message for the right consumers and

send them at the right time. The challenge, however, is to

determine which tactics will encourage shoppers to activate

the relationship and opt-in.

Activate

The number of smartphone users is skyrocketing, which

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of mobile media, the majority of mobile users still have a

feature phone, according to the Marketing To The Mobile

Shopper report. SMS is an ideal tactic to develop programs

that appeal to all cell phone users, through the most utilized

form of mobile communication. Through the three key

methods text-for-info, text-to-give, and text-to-join

retailers can provide powerful incentives that will ignite

shopper-retailer relationships, encourage interaction andexploration, and help retailers obtain consumer information

to help market company sales and product information.

Engage

Although gaining information is top priority, retailers wont

gain customer loyalty and tangible ROI unless they provide

meaningful and educational content that will connect with

shoppers. Adopting communication tactics that coincide

with how consumers interact with family and friends, and

tailoring offer content and frequency that is consistent with

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results.If I want a two-way conversation with a consumer,

I need to engage them, Schwartz said. The primary

method of engagement and interacting with the phone is

text messaging. The bottom line is, the way the consumer is

interacting with their friends is the way youll want to interact

with your consumer.

Coupons and discounts are consistently taking hold of

customers in SMS campaigns, providing them with a

redemption code or URL, and furthering the likelihood of

movement to either an M-commerce site or in-store. This

cross-channel exposure extends brand awareness and

overall product or company reach.

Text messages featuring reminders or announcements

also encourage and ignite consumer action. Sale

announcements make shoppers believe theyre

receiving exclusive information, while reminders can

help spread news or revive abandoned shopping carts

by including URLs for order completion. Item alerts and

recommendations also can be utilized to drive transactions

in the mobile store when shoppers make a past purchase

and new, similar items are in stock.

Along with engaging SMS campaign content, it must be

easy for subscribers to respond to a text or receive an offer.

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to remember.

Consumers of all ages text frequently, so simple react-

and-redeem processes will help maximize interactions

and encourage purchases. Because an SMS initiative can

easily cross over to every form of traditional media in an

interactive and actionable way, retailers also must focus on

how they can create a seamless brand experience across

all channels with texting as the jump-off point.

Think of mobile not as another vertical or added layer into

your strategy for the store, Schwartz said. You want tothink of it as a horizontal, or another way of adding value

across your existing touch points.

Three Strategies To Use SMS for Consumer Activation

Text-for-info promotions encourage smartphone users to opt-in by sending a message to a shortcode a shortened phone

number used in premium text services that allows users to quickly opt-in or respond. With this initiative, retailers will generate

brand interest and responses, while customers receive information on a product or service.

Text-to-give plans are primarily used for foundations and charities. Countless organizations developed programs in response

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initiate donations by texting to a shortcode. All texts received were transferred into donations for the given organization.

Text-to-join objectives seek users to opt-in to a mobile database by giving them a strong call-to-action. Once information is

received, retailers can remarket to shoppers with campaign news developments and coupons.

As response rates increase and information is received, companies can easily keep track of customer reactions and

behaviors, and develop compelling rewards and offers to increase purchase rates and brand loyalty. The mobile consumer

is fundamentally different from your online consumer, noted Schwartz. That consumer doesnt mind being told they need to

react to certain things. They dont mind getting a message if its relevant and targeted.


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Early Results From SMS: How Retailers Are Adding SMS

to Build Customer RelationshipsWhile retailers develop a multi-channel strategy, an

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the only priority. Rather, retailers should have a keen

focus on creating an entertaining and engaging shopping

experience throughout all channels to develop a loyalrelationship with customers.

A number of leading retailers have developed SMS

strategies that coincide with their mobile efforts to

encourage shoppers to interact with a brand in an

immediate and direct channel. To further boost brand

loyalty and initiate shopper communication, retailers also

are initiating inventive and fun campaigns through texting

to reach their consumers.

New Engagement Model

One specialty retailer developed an SMS campaign

designed to alert regular customers that opted in on pre-

sales and new items that were added to their web store

with a text initiative. The campaign sparked the retailers

move to formulate a mobile store, iPhone app, and trialed

an mPOS (mobile point of sale) system. Store personnel

found that multi-channel shoppers within their target

group of men and women 18-34 years old were prone to

spending up to three times more on merchandise than

single-channel shoppers.

Activity Alerts

An auction web site implemented a hybrid text message

and instant message platform, allowing shoppers to keeptrack of items they were bidding on. By signing up for the

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an auction was about to end, and if they won an item.

Behind-The-Scenes Info

February 2011 marked the launch of a popular department

stores SMS and QR (Quick Response) code program

that allowed shoppers to receive video footage of in-

depth store information. The video segments featured

retail designers and celebrities who provided fashion and

lifestyle tips, and behind the scenes footage. The QR

code drove customers into action and engaged them into

interacting with the brand in-store.

Building Loyalty

Through a discover-and-purchase mechanism, a

major fashion brand used SMS and MMS (Multimedia

Messaging Service) initiatives to get shoppers to opt-in toreceive relevant texts, inventory photographs and video

messages straight to their mobile phone. Once opted

in, consumers were added to the retailers database for

future marketing campaigns and sale announcements. By

including URLs in text messages to complete the loyalty

program sign up, the company also created a strong link

between SMS and its M-commerce site. To further the

campaigns response rate, the retailer included the mobile-

call-to-action on billboards to encourage participation.

Extending Offers

A discount retailer optimized SMS tactics to reach its

customers in real-time with offers they couldnt refuse. Bytexting a shortcode to the retailers database, shoppers

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of purchase.

In-Store Opt-In

Another technique retailers are exploring is opting-in

shoppers after an in-store purchase, so they can receive

information instantly. One clothing retailer tested the model

by teaming with a credit card network for an SMS initiative

that signed up shoppers once they made a purchase withtheir card. If shoppers enrolled their account, they would

consistently receive store alerts and mobile coupons.

Offering special deals and free goods via SMS is a key

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awareness. However, the top priority in implementing an

SMS strategy is to initiate regular contact with consumers

to develop relationships and in turn, make the brand more

valuable.


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