Retail

Brought to you by Waterfall Mobile

This Waterfall Quick6 LookBook provides an insider’s perspective into how mobile fits into a retail communication strategy so that companies can execute successfully.

OverviewHow retailers should approach mobile

Case in pointExample retail mobile campaigns with positive and negative lessons learned

SummaryHow retailers can best launch an effective mobile and digital communication strategy

It’s about limitless possibility.

When it comes to figuring out a retail mobile marketing program, the good news is the bad news: there’s practically an unlimited number of ways retailers can use mobile to augment their customer communication strategy. “Good” because limitless possibility means well thought out and executed strategies will return significant value. “Bad” because settling on a starting point can be difficult.

Consider data from the Forrester report The State of Retailing Online 2011: Marketing, Social and Mobile, which analyzed the state of U.S. retailers’ mobile and digital marketing strategies. Note that 71% of retailers fall under the umbrella of not having a mobile strategy to actively refine:

Which best describes your mobile strategy?“

overview

9%

29%

19%9%

34%

Don’t have a strategy

Early stage, developing a strategy

Have a strategy

Have a strategy, starting to refine

Have a strategy, currently refining

Given that an effective mobile strategy requires refinement, as so much of mobile is analyzing metrics and optimizing according to these insights, you could argue pretty convincingly that 71% of retailers have an ineffective mobile strategy. Taking a look at retailers’ objectives for mobile sheds light on why.

As many as eight objectives are desired by more than 50% of companies. The top three objectives double as the top three objectives for business in general. Clearly, retailers struggle to understand where to start and focus with mobile given the vastness of both retailers’ needs and mobile’s capabilities.

overview

Smartphone Tablets

Drive sales to websiteImprove customer satisfaction

Develop brand loyaltyBe a ready source of info

Improve customer acquisitionImprove customer retention

Drive traffic in other channelsKeep up with competitors

Learn from mobileDrive sign ups

Location-based targetingReal-time marketing

Drive 1:1 dialoguesReduce SG&A costs 6%

19%

26%

22%

35%

41%

48%

46%

56%

57%

61%

65%

65%

87%

6%

23%

28%

31%

37%

43%

49%

49%

54%

58%

62%

63%

63%

82%

What are your company’s objectives for mobile? Forrester, 2011

Fortunately, retailers can develop the requisite starting point and focus for a solid strategy by taking a step back. Rather than approach mobile from a mobile-centric point of view, they should think about mobile from a customer point of view. This is to say that viewing mobile as a new and siloed channel will not result in the same degree of success as seeing mobile as a complement to the retailers’ current method of engaging consumers.

Augmenting a customer communication strategy with mobile is straightforward: simply take mobile’s various metrics and compare and contrast them to metrics from other communication channels like email, online and social.

overview

Which metrics do you use to measure the success of your mobile strategy? Forrester, 2011

Mobile site trafficRevenue via mobile

Average order valueNumber of mobile app downloads

Product searches via mobileNumber of opted in mobile consumers

Repeat visits/loginsMobile site/app satisfaction

Number of alerts sent to mobile 8%14%

20%20%20%

32%54%

75%80%

There’s a fancy term for comparing and integrating metrics from various channels to understand how the channels combined can best personally engage the desired audience: cross-channel marketing. As opposed to multichannel marketing, where each channel works individually, cross-channel marketing has each channel working together to better communicate with and understand the target consumers. It’s about creating a cross-channel strategy.

The below six campaigns demonstrate successes and failures of retailers using mobile. The campaigns’ combined strengths and weaknesses provide an ideal road map for launching mobile effectively within a retail environment.

★ Lane Bryant★ Forever 21

★ Home Depot★ Sephora

★ Tic Tac★ Neebo

case in point

In 2011, Lane Bryant, a clothing retailer with over 750 locations, launched a mobile instant win campaign to deliver gift cards, discounts and other deals to their customers. With calls to action placed throughout stores, Lane Bryant set out to drive in-store traffic and build an opt-in list for ongoing consumer engagement.

One of the smartest aspects of the Lane Bryant campaign is data collection. For example, each store had its own unique keyword to track store-specific opt-ins. This way Lane Bryant has the ability to cross-channel message specific customers with localized

offers and the general, much larger list with offers from the Lane Bryant corporate brand.

Another aspect of the Lane Bryant campaign that works well is the company’s development of continuing, two-way communication. Mobile one-off campaigns achieve only limited success because they don’t take advantage of mobile’s ability to maximize customer lifetime value. The below message flow closeup shows how Lane Bryant used mobile’s interactivity and immediacy to increase the value received from customers over time.

case in point

Lane Bryant Instant Win

Integrate with the point of sale

By including a unique code in each message (e.g. “Show code 000307741 @ checkout”), Lane Bryant can track exactly when and where consumers redeem mobile offers. These analytics are crucial for developing a clear picture of mobile ROI. In addition, tying unique codes to specific phone numbers is ideal for building out a mobile component to an existing loyalty program.

Speak in the language of the consumer

Notice how Lane Bryant uses text-speak terms like “BOGO” and “Rply.” On one hand, overdoing it on the text-speak can make a message confusing and hard to read. On the other, including text-speak makes a message feel more realistic for the mobile medium. Bottom line, make sure mobile messaging is easily scanned and understood, but include text-speak to make sure messaging doesn’t seem too out of touch.

Immediacy makes messaging compelling

Notice how Lane Bryant includes a time element in each outbound message. Phrases such as “Final weekend!” and “7 days only,” ensure that a company can capitalize on mobile’s central strength within the digital communication channel portfolio.

Lane Bryant Instant Win: Message Flow Closeup

case in point

case in point

Forever 21 Mobile ClubThroughout 2011, Forever 21 ran various promotions for an exclusive mobile club. In particular, Forever 21 launched Time Square billboards to engage mobile consumers as they passed by the Broadway store front. These promotions stood out as bold reminders confirming the importance of mobile in the company’s corporate communication strategy.

The best aspect of the Forever 21 campaign is how the company created creating an air of exclusivity for mobile alerts. Because a mobile phone number is more personal than other points of contact, consumers will only share this personal information if given a compelling reason to do so. The only question is whether the incentive advertised is compelling enough. Without putting a stake in the ground,

consumers may not want to find out if the “special updates” are worth their while. Using something specific and concrete (e.g. 15% off, first look at new styles) to set the relevant context for “special updates and promotions” will positively impact consumer opt-in rates and engagement.

One other point to note on the Forever 21 campaign. Though the company promoted the mobile club in the center of Times Square, there was no promotion about the mobile club on the company’s website. Keep in mind that mobile requires a commitment across channels. Not only will more consumer eyeballs see the benefits of the mobile initiative, but trust in the program will grow as the brand establishes mobile in the multiple places consumers seek information.

case in point

Home Depot Scan For More MarthaHome Depot’s More Martha QR code sets out to digitize catalog readers and turn them into customers. Upon scanning the “More Martha” code, readers access a mobile-optimized site where they can sign up to receive email alerts, watch a video or shop online.

The strength of Home Depot’s QR code campaign is the call to action. Namely: (1) the reason why consumers should scan is spelled out clearly; (2) those who don’t have a QR code reader have instructions for how they can still access the mobile content; (3) the 2D code integrates perfectly into the ad’s context; (4) the code links to a mobile-optimized website that presents a user-friendly experience; (5) content access exists across channels.

On the other hand, Home Depot should rethink its sign up experience, given the earlier discussion about ongoing communication being more valuable than one-off contact. As it stands now, the More Martha opt-in is a one-click-away email sign up form. Instead, the 2D code could direct link to the email opt-in. Home Depot could also use a QR code-to-SMS campaign to capture mobile phone number before linking to the mobile page. At minimum, Home Depot should capture analytics that provide insight into the type of person or phone scanning the Martha code.

case in point

Sephora Scan. Watch. Learn.In 2012, Sephora ran a 2D code campaign for the GLO Brilliant Personal Teeth Whitening Device. By scanning the code, consumers link to a video explaining the product’s benefits.

Notice the custom-branded QR code that Sephora uses for this campaign. 2D codes’ customizable error correction levels allow for flexibility in code design, which Sephora has used to create a more engaging and eye catching user experience.

Beyond the branded QR code, another lesson to learn from this campaign is the importance of cross-channel communication for 2D code-to-video campaigns. Certainly getting a user to watch a video has value for the promoting brand. However, the video should lead to a way that consumers can be targeted going forward. Simple enhancements such as a direct message following the video’s conclusion about signing up for the Sephora list would improve the value of the campaign.

For those listeners of Pandora, you probably have seen those various ads that have popped up next to your station controls. Given that Pandora has data on (among other things) what types of music users enjoy, seems like a perfect arena for marketers interested in directing content at a specific audience.

That’s what made Tic Tac’s 2011 mobile app download campaign so compelling. Recognizing the opportunity that people listening to Pandora are tech savvy, Tic Tac ran an ad encouraging consumers to download its viewer app by texting MINTS to the Tic Tac short code. Plus, the language contained in the call to action perfectly aligned with the music-centric Pandora environment.

One issue with using mobile to advertise on digital media sites like Pandora is that it’s tough to engage people who probably aren’t looking at a web page constantly. Thus, the campaign’s incentive becomes extremely important, as marketers have one shot to catch a consumer's attention (e.g. on Pandora when a person changes stations, adjusts volume, etc.). Is downloading a viewer app cool enough that people will whip out their phone? Maybe, maybe not. That’s why it’s so important to have a clear understanding of a campaign’s goals and expectations and effectively communicate them in the call to action.

case in point

Tic Tac Mints Mobile App Download

Leading textbook retailer Neebo has one of the biggest challenges of any company out there: how to market to millions of college students nationwide across more than 280 campus bookstores. That’s why digital marketing has been such a key piece of engagement for the college outfitting company. Targeting the college-age demographic using a mix of mobile and social competitions and promotions makes perfect sense.

One such example is a 20% off mobile coupon campaign the company launched in 2011. The call to action was clear with a powerful yet simple incentive. Once students

texted the code they would then be opted in to a mobile list for future marketing and sales promotions. Perfect for reaching students during the various textbook and college gear pushes that occur throughout a school year.

One thing to learn from the Neebo call to action is the importance of semantics when designing a call to action. Not a huge deal, but including quotation marks in a call to action may be confusing to some potential targets. By bolding and capitalizing they key components of a mobile call to action (in this case keyword and short code), the chance for user error decreases significantly.

case in point

Neebo Mobile Coupons

Waterfall's retail brand campaigns and reference accounts include:

SummaryTo tackle the inherent challenges of mobile marketing in a retail environment, marketers need to focus on overall marketing goals and how mobile can help augment a current communication strategy.

The above case studies demonstrate various ways that mobile can overlap with email, online and social using a variety of promotion types. Overall, each case study presents simply a slice of what’s possible for

retail marketers as they approach mobile. Taken together, they represent a roadmap to pick and choose from in order to develop a proprietary digital strategy.

Whatever the implementation eventually chosen for retail success, three takeaways remain constant. By keeping the following in mind, retailers will be well on their way toward capturing maximum mobile value.

1. Use cross-channel communication geared toward ongoing engagement to avoid the limitations of one-off marketing.

2. Analyze the incentives used in a campaign and make sure they are sufficient and compelling enough to drive user interaction.

3. Align mobile with overall branding efforts to develop a consistent voice throughout the brand’s marketing portfolio.

We appreciate you taking the time to read through our Quick6 Lookbook. Waterfall has been assisting retailers with their mobile marketing strategies since 2005. To learn more about Waterfall, please sign up for our blog, read our case studies, or discover our featured solutions by visiting www.msgme.com.

There is also a free trial option available to try out Waterfall’s platform 100% risk free. Any other questions, please contact sales@msgme.com.