15
2010
Oct

Mobile Marketing

smart phoneSmart Phones are changing how marketing will be done in the future and in case you’re curious the future is today. If you have not been paying attention to trends in marketing for the last decade the process has shifted from product presentation to a strategy of engage and educate. This change in basic strategy results in a shift in where your marketing dollars are invested in engaging content rather than slick ads. Mobile marketing takes this evolution to the next level.

Everyone I know is trying to figure out how mobile marketing will impact their business and I believe that it will force a higher percentage of your marketing investment to be put into the material creation rather than the delivery vehicle. We will pay less for the ad delivery but much more for the creation of the content we deliver. In mobile marketing all of the old world product pitches are simply considered spam and mobile marketing will be driven by the opt-in list and very few will subscribe to your list if all you do is pitch your product. You have to give them meaningful value that is of interest to them or you will find that they have a very short attention span and a low tolerance for your message.

It’s the list stupid!

Mobile marketing is all about the list. How you gain new subscribers and how you develop your relationships with them are the critical success factors. For most small businesses the infrastructure of mobile marketing will be an SMS service provider. These businesses make it possible for small businesses to use this marketing channel without the huge overhead involved in short codes. Short codes and keywords are the gateway to the SMS process and setting this up is not cheap or easy. Just to get started a short code costs $1,500 per quarter and if you want a special vanity code the cost increases to $3,000 per quarter and this is a long way from delivering your first message. The SMS service providers leverage this by providing a shared short code from which they sell specific keywords. This is how texting a specific word to a short code gets you on the SMS list you want. The big advantage here is that without getting into all the technical challenges and costs a low cost relationship with a SMS service provider you can get your mobile marketing up and running in just hours.

The challenge to all of this is to get people on your list and then treat them so they value the relationship enough that you keep the permission to communicate that they granted you. You do this by clearly articulating the value they will receive and then deliver that value to them. Beyond this you have to get that message out into the market. And of course you have to perform this magic with 140 charters or less.

Talk to those who care about your message

Opt-in marketing has at its core the concept of talking to people that care about your message and quit trying to interrupt people who frankly do not care. People are understandably concerned with the messages that they receive because text messages are an interruption so what you say has to have value or your list will shrink and quickly die. Value is not just a routine discount for the day or a rehash of your print coupon. It needs to be something special that the person is likely to be interested in. Different audiences are going to value messages in different ways but the bottom line is they, not you, need to value the message.

Use QR Codes to Make Subscriptions Easier

text Test to 54592The typical subscription process is a small word sent to a short code but even that can be a barrier for people and to the rescue in this is the QR Code. These are the square codes that you are starting to see in the market that look like this. The person simply uses their phone to scan this code and it sends the word and short code. When done like this the length of the keyword and the short code are no longer an important part of the process because it is all contained within the code and the person never has to interact with it.
There are several competing technologies to provide this functionality to the user but so far the QR Code appears to be the leader. Within these codes there are all sorts of interesting things you can do such as embed the identification of the source of the subscription by using different keywords. QR Codes can be used to connect to a web site, send a text message, dial a phone number, or just enter text.

Caution: Not everything works in all combinations

Mobile is rapidly evolving and like any newer technology there are consistency problems. Not everything works in all the combinations of apps, phones, and services. In our testing the code above worked on some combinations but not others. The iPhone failed to handle this properly with 3 of 4 apps we tested, but it finally did work with one. The DroidX worked the first time and we have no clue if we just got lucky picking the right reader or if the phone is just more open. What we are sure of is that the URL coding seems to be 100% supported but when you get into the other processes your success rate is at risk. Failing to set up the SMS message is either a program bug or a security feature depending on your perspective. The technology has the ability, but delivery may be inconsistent.

Opt-In or Spam – There is No Middle of the Road
“Consumers must ‘Opt-in’ to a short code program from their mobile device before they can be sent anything. Even an initial message that asks for permission is considered SPAM.” Unlike email the carriers have no problem identifying the senders of spam and taking immediate and decisive action for a rule violation.
In mobile marketing you either get them to opt-in or you are a spammer. There are lots of services that will rent out lists that were built in many different ways including contests and other offers. The key is they did not opt-in to hear from you so you better make sure that the value promised matches your message value or you will get a very negative response. If the list was built by offering discount meal coupons and you are going to offer a discount meal coupon then the list is golden. If however the list was built by a win a free trip offer and your offer is a discount for an oil change you need to run not walk away from that list. People do not just dislike being off message, they HATE it, and they can transfer that hate to the business that interrupted them with a message they did not want. Getting people to opt-in to your list is hard work and keeping them is even harder but it is the only way you can play this game.

Deliver Value or Die

I have already said this several times but it is worth repeating. If you want a relationship that allows you to communicate with your market you need to treat them with respect and talk about what they are interested in.

How this relates to Adwords

Building subscriptions is a common goal for Adwords and a subscription offer is a great way to get the relationship started with a low impact transaction. Lowering the commitment level of your conversions almost always increases the percentage of response and is an excellent way to find people interested in what you have to say.