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Mobile Messaging: effective
    campaigns using SMS
     Jason Cross
     24 June, 2011




Copyright Incentivated Limited 2011   www.incentivated.com
Contents

      Mobile is a ‘hot topic’
      Mobile Messaging
      Case Study examples
      About Incentivated




                                Copyright Incentivated Limited 2011
Smartphones in the UK
Smartphone use increases, but market is still dominated by non-smartphones




    Non-smartphones 61%
                                                    Apple 10.7%
                                                    Symbian 9.7%
                                                    Google 9.1%
                                                    RIM 7.1%
                                                    Microsoft 1.6%
                                                    Palm 0.1%
                                                    Other smartphone 0.9%
                                   Smartphones 39%
                                                                   Source: comScore, 3 month average ending March 2011.


                                                                        Copyright Incentivated Limited 2011
Global smartphone sales numbers
Sales continue to grow with Android and iOS the clear winners

   Number of global smartphone sales to end users, Q1 2011 (000’s)

                                                                                                    1Q10   1Q11
       40,000

        35,000

       30,000

        25,000

       20,000

        15,000

       10,000

         5,000

                 0
                                 Symbian                      BlackBerry (RIM)   Android (Google)      iOS (Apple)   Microsoft        Other OS



Source: Gartner, May 2011, http://www.gartner.com/technology/home.jsp



                                                                                                                                 Copyright Incentivated Limited 2011
Mobile reaches all social segments
Over a quarter of DE households are mobile-only

   Number of smartphone subscribers worldwide, Q2 2010

     100%                          96%                             96%
                                                                                                  93%
                                                  88%                                                              88%
                                                                              80%
       80%                                                                                                   71%


       60%                                                                                                                    54%


       40%


       20%


         0%
                                             AB                          C1                             C2               DE

                                                        Own a mobile phone          Have fixed internet at home


Source: Ofcom, Q2 2010, figs 5.68 and 4.16



                                                                                                                   Copyright Incentivated Limited 2011
Use of mobile media
18-24 age band are the most prolific users of mobile media features

                          Index vs. population as a whole



                                              13-17           18-24           25-34           35-44    45-54
                       250


                      200


                       150


                      100


                        50


                          0
                                      Apps                Mobile                 LBS             MMS           SMS
                                                         Internet



                     Source: ComScore, Average number of subs for the 3 month ended June 10




                                                                                                                     Copyright Incentivated Limited 2011
Email accessed on mobiles by age group
Increasingly, emails are read “on the go” across a variety of devices

   Percentage Accessed email (work or personal) from mobile

    60%                                                          55%

                                                     48%
     50%
                                               40%                               41%
     40%                                                   36%

                                   28%
     30%                 26%                                                                 25%
                                                                          23%

     20%
                                                                                       14%
                                                                                                                  12%
     10%                                                                                                   6%


      0%
                              13-17             18-24         25-34           35-44     45-54                  55+

                                                              Female   Male


Data: Three month average ending August 2010
Country: UK - N= 15,824 mobile phone users


                                                                                                   Copyright Incentivated Limited 2011
State of the Nation

   Over the last 12 months companies have started to offer what
    consumers were happy to do all the time
   With many sites looking the same, the opportunity now exists to:
        improve the UX/UI and so differentiate the offering
        offer implicit and explicit personalisation i.e. join up the web and mobile
         sites
        deliver e-commerce best practice




                                                                      Copyright Incentivated Limited 2011
State of the Nation

   People do it
         51% of the UK engages in mCommerce
   People like it
         42% say they use their mobile because it is the easiest way to
          research/buy
   M-Commerce will continue to grow
         49% of non M-Commerce users say they will purchase in the future
         Smartphone users are 63% more likely to engage in mCommerce
         only 9% mention security issues

    Source: IAB Consumer M-Commerce Study October 2010
    Base: All UK Mobile Users (1,039)


                                                                      Copyright Incentivated Limited 2011
State of the Nation



        27%
 of adults with phones have ever used their
 mobile to purchase a service/product via credit
 card / direct debit / Paypal
 Source: IAB Consumer M-Commerce Study October 2010
 Base: All UK Mobile Users (1039)


                                                      Copyright Incentivated Limited 2011
Does your site work?
Half of UK firms fail to check their own website on mobile devices

   Of those that have
        41% admit their website has a reduced appearance
        36% offer reduced functionality
   The survey ( from 1&1 Internet) also finds that 65% of firms have not
    optimised their websites for mobile usage and have no plans to do
    so




                                                                     Copyright Incentivated Limited 2011
You get blamed for a bad mobile experience
No site or a single mobile presentation layer are no longer options


 Q16. When a website doesn’t work on your mobile phone, which of the following do you tend to blame?



                                      Brand                             Network           The User
                60%                                         The Phone
                                      (site)                            Provider


                40%                    44%

                                                              34%
                                                                          29%
                20%




                  0%                                                                         5%


  Source: Appetite, Yahoo! March 2010
  Base: all those who access internet on mobile (n=1,240)


                                                                                                 Copyright Incentivated Limited 2011
Contents

      Mobile is a ‘hot topic’
      Mobile Messaging
      Case Study examples
      About Incentivated




                                Copyright Incentivated Limited 2011
Text and picture msgs reach twice as many UUs
Messaging not as transactional as mobile internet and apps

 Number of subscribers in the UK (000s)
 (Average number of subs for the 3 month ended Sep 10)
                                                                   Text (SMS) and picture messaging
 50,000                                                             (MMS) are used by 90% and 62%
 45,000                                                             respectively
 40,000
 35,000                                                            Apps and the mobile internet used
 30,000                                                             by 43 & 38% and growing rapidly
 25,000                                                               Many apps are games and
 20,000
                                                                        come pre-installed
  15,000
 10,000                                                               Downloading new apps or
   5,000                                                                allowing apps to update
           0                                                            content or transact requires the
                   Apps    Mobile       LBS         MMS   SMS           mobile internet
                          Internet



Source: Comscore



                                                                                        Copyright Incentivated Limited 2011
The Role for Messaging (push and pull)
As well as B2C, SMS has a role to play in B2E and B2B
   Acquisition
        Awareness
             Direct marketing (opted-in third party lists)
             Sponsored messages

        Direct response and sales promotion (e.g. text & win)
        Closing the deal
   Customer Relationship Management (“CRM”)
        Customer service
        Retention (including loyalty programmes, coupons and vouchers)
        Surveying and other data capture
        Promotion, up-sell and cross-sell
   M-commerce
        Transacting (PSMS as well as triggering payments using pre-registered credit card details
         etc)
        Confirmation e.g. receipting, delivery status updates and problem resolution
                                                                               Copyright Incentivated Limited 2011
Think about the end user…




                     Text XMAS to
                     6XXXX to receive
                     a link to our app




                                         Copyright Incentivated Limited 2011
CONSUMERS ARE ENGAGING
WITH MOBILE MESSAGING




                         Copyright Incentivated Limited 2011
                                    17
Summary of the research approach




                                              Phase 2:                        Phase 3:
            Phase 1:
                                    Effectiveness study across M&S   - 1 focus group opted into
Online survey of 1,000 nationally                                        messaging database
                                     CRM database and O2 More +
   representative consumers
                                             Orange shots            -1 focus group not opted in




                                                                               Copyright Incentivated Limited 2011
CRM: Survey and Data Capture
Sent to M&S, O2 and Orange customers as part of this research


                  SMS                             Survey Site
             (concatenated)
             228 characters

         Originator: 200200


      We’d like to ask you a
      few questions about
      retailers. You’ll get 6
      texts to answer, it’s free
      to enter and should only
      take a moment. To take
      part text YES to 84420 or 1.
      click
   2. http://wapp.co.uk/r/xxxx
      xxxxxxxxxxxxxxx (free
      browsing)




 1. Zero-rated shortcode.
 2. Zero-rated domain.                                          Copyright Incentivated Limited 2011
There is a sizeable % opting in to messaging



                 Have received                         Have opted in to      Have agreed to be
                  SMS/MMS                                receive SMS/ MMS       contacted via SMS/
                  advertising in the                     messages from a        MMS from a
                  last month                             mobile operator        company or brand



                                30%                             12%                     15%

                                                                    6% have done both
                                                                    21% have done either
Base: Base: All respondents (1022)
Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                                Copyright Incentivated Limited 2011
Messaging reaches a valuable audience

 Subscribers to mobile operator databases               Subscribers to third party mobile
          are more likely to be:                         databases are more likely to be:

       • Aged 18-24                                     • Male
       • Frequent texters (at least 10 a day)           • Aged 18-24
       • Frequent mobile internet users (daily)         • Frequent texters (at least 10 a day)
       • Smartphone users                               • Frequent mobile internet users (daily)
                                                        • Smartphone users
                                                        • Agreed to be contacted by a company via
                                                          email




Base: Base: All respondents (1022)                                                Copyright Incentivated Limited 2011
Source: IAB/DMA Mobile Messaging Study September 2010
Once opted in
People become more positive to messaging
                                                                                                            “
                                                           “
                                                               [Texts are] normally from people [companies] you want to
                                                               hear from, so it isn’t a bane




                       +217%                                                   +243%




%                                                               %


          Not opted in                          Opted in                Not opted in               Opted in
     Messaging works best at grabbing your attention                Messaging is the best way of receiving relevant and
     and making you want to know more about a brand,                personalised information about brands, products
               company, product or service                                             and services
Base: Base: All respondents (1022)
Source: IAB/DMA Mobile Messaging Study September 2010

                                                                                                  Copyright Incentivated Limited 2011
And people understand the advantages                                                                                         “
                                                                                  “
                                                                                       (For vouchers) there is less chance of forgetting when you
                                                                                       go to the restaurant!



                                            I don’t have to print anything out
                                                                                                                                         ↑40%


    More relevant - I can choose to receive advertising that is relevant to my
                                                               personal tastes                                             ↑71%


                                                                                                                                 Not opted-
Location-based - I can receive advertising that is relevant to the area I am in
                                                                                                                 ↑43%            in
                                                                                                                                 Opted-in


            Timely - I can receive advertising at a time which is useful to me                                            ↑122%

                                                                                  10         20          30          40           50               60
Base: Base: All respondents (1022)
Source: IAB/DMA Mobile Messaging Study September 2010

                                                                                                                           Copyright Incentivated Limited 2011
Messaging is immediate
78% of people read messages within 5 minutes
                                         Immediacy of reading text messages
                                                                                                41
          Immediately
                                                                                 30                  %
                                                                                                            People you know
                                                                                           37
      Within 5 minutes
                                                                                      32                    People you don't know

                                                10
     Within 10 minutes
                                                10

                                                10
       Within an hour
                                                                                                                   “
                                                                         “
                                            9
                                                                                 [If ] they are an alert they catch your eye – it
                                  3                                              might be a friend – you always read to see
               Longer
                                           8                                     what its about

        Delete them
       withour reading                      9

                         Base: Base: All respondents (1022)
                         Source: IAB/DMA Mobile Messaging Study September 2010
                                                                                                             Copyright Incentivated Limited 2011
EFFECTIVENESS OF MOBILE
MESSAGING




                          Copyright Incentivated Limited 2011
M&S Message to CRM database

                                                                 Give in to temptation with
                                                                 M&S Dine In for Two for
                                                                 £10! Details in store or
                                                                 click for menu:
                                                                 XXXXXXXXXXXXXXXXXXX
                                                                 XXXXXXXXXXXXXXXXX
MMS                                                              Ends next Tuesday, 3
                                                                 August. To stop text dine
                                                                 stop to 65006




       Slide 1 (3s)   Slide 2 (3s)                Slide 3 (3s)   Slide 4 (5s)




                                     M&S Dine In for £10
                                     with wine is available
                                     now! View menu at
                                     XXXXXXXXXXXXXXXXX
                                     XXXXXXXXXXXXXXXXX
                                     XX Details in store.
SMS                                  Ends Tues. To opt out
                                     txt cook stop to 65006




                                                                                      Copyright Incentivated Limited 2011
Prompted ad awareness increases for MMS


                            M&S database                                         86
                                                                       +13%




                                    79                         79




  %
                          Control Cell                      SMS Cell          MMS Cell
 Base: M&S database: Control (230), SMS (256), MMS (693).
 Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                      Copyright Incentivated Limited 2011
Almost 100% recall of the message

                         M&S database


                                                             96                 94
                                                    +85%              +81%



                                  52




 %
                         Control Cell                      SMS Cell          MMS Cell
 Base: M&S database: Control (230), SMS (256), MMS (693)
 Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                     Copyright Incentivated Limited 2011
MMS changes behaviour



                               Visit store                 Visit M&S mobile site

                                                                       +150%




 Base: M&S database: Control (230), SMS (256), MMS (693)
 Source: IAB/DMA Mobile Messaging Study September 2010

                                                                           Copyright Incentivated Limited 2011
M&S message to operator databases
        MMS                                            SMS

                Originator: 20502

                Subject: M&S shoes

                Shop on your mobile. Shoes
                and much more available          We'd like to ask you a
                with free delivery if you        few questions about
                order on your mobile before      retailers. You'll get 6
                midnight on 24th of Aug. Go      texts to answer, it's
                                                 free to enter and
                to
                                                 should only take a
                http://shoes.mands.mobi/r/x      moment. To take part
                xxxxxxxx (clicking on the link   reply AGREE or click
                will be charged at standard      http://www.wapmeit.c
                rate) and use code               o.uk/r/TXXXXXXXXXX
                DELPHONE to redeem this          X
                fantastic offer. One per
                customer. Terms apply. To
                stop O2 More text STOP to
                20502



              Slide 2 (5s)



                                                             Copyright Incentivated Limited 2011
Consumers almost as happy to receive msgs
   from their operator as from friends/family

How happy would you be to receive SMS/ MMS messages that provide
information about brand/products or services that you are interested in or
information about discounts and special offers?




       Base: All respondents (1022)
                                                                             %
       Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                 Copyright Incentivated Limited 2011
MMS drives prompted awareness

                           Operator database

                                                                +27%
                                                         +7%




 Base: Operator database: Control (590), SMS (588), MMS (346)
 Source: IAB/DMA Mobile Messaging Study September 2010


                                                                       Copyright Incentivated Limited 2011
Msg achieves huge standout


                                Operator database
                                                                       +975%




                                                               +425%




Base: Operator database: Control (590), SMS (588), MMS (346)                   Copyright Incentivated Limited 2011
Source: IAB/DMA Mobile Messaging Study September 2010
Consumers can see the benefits of MMS
   Slick interface – a joy to view, more fun to interact with


   Markers of authenticity – logos, images, visual branding elements


   Greater potential for interaction - greater interactivity without
    having to ‘reply’ to message or download, less concern about being
    charged


   More visual/audio interest - can be a more passive viewing
    experience akin to TV adverts/magazines but would need to be
    sensitive to fact that may be opened in public/workplace
                                                                 Copyright Incentivated Limited 2011
Effectiveness of mobile messaging

• Messaging makes an impact- even among a highly engaged M&S
  CRM audience- as almost 100% of the base remembered it.

• Consumers are almost as happy to receive advertising from their
  operators as they are friends&family, providing a trusted place for
  advertisers to send their message to new customers.

• Consumers like MMS - which means it achieves huge standout
  amongst both CRM and operator databases, and drives behaviour
  change.




                                                               Copyright Incentivated Limited 2011
75% would opt-in, given the right incentive
Which of the following would make you more likely to opt in to




                                                                 “
these type of services?
                                                             %
                                                                 “Morrisons – their deals of the
                                                                 week – if you knew that week it
                                                                 [might] dictate where you
                                                                 shop”
                                                                                                       “
                                                                 “   “It’s nice how they give
                                                                                                “
                                                                     advance notice [of sales etc.]
                                                                     because they know you’ve been
                                                                     there before”




     Base: Base: All respondents (1022)
     Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                  Copyright Incentivated Limited 2011
Consumers actively want communication
from certain categories/brands



     Desirable Categories                                Desirable Brands

  • Restaurants, Pubs & Bars
  • Leisure & Entertainment
  • Food &Groceries
  • Holidays & Travel
  • Clothing
  • Department Stores
  • Beauty




                                                                                                
                                   Frequent purchases/
   Clear, direct benefits                                               Aspirational
                                       behaviours




                                                                               Copyright Incentivated Limited 2011
Best practise for building a CRM messaging database

  •   Awareness
        •    Targeting - an easy place to start is to build on existing relationships
        •    Start as you mean to go on – welcome them as soon as you have their number, this is your opportunity to convert straight
             away. Follow with your first marketing message within a week of this. Any longer than a month and they will forget.

  •   Cost
        •    Re-assure throughout of the costs involved
        •    If communication is 2 way consider making responses free
        •    If the service is charged this must be include this in the first message and follow with reminder at least once per month

  •   Relevance
        •    Make it clear what the texts will contain and why people should sign up
        •    Have a clear activation and retention programme
        •    Focus on the behaviour of your consumers and provide appropriate messages
        •    Campaigns where you should pay particular attention – marketing to children, adult content, gambling, alcohol and sales
             promotion

  •   Control
        •    Re-assure customers how many messages they will get
        •    Don’t take them for granted, consider why people signed up – and then ensure you are delivering it.
        •    Make it clear how users can potentially unsubscribe. The Networks have defined a ‘Universal Stop’ policy to which marketers
             must adhere to

  •   Privacy
        •    Secure customer confidence and show them you will handle their personal details responsibly
        •    Ask for permission if you wish to share their details at the opt in or tell them at the start you will not share their details with
             third parties

                                                                                                                          Copyright Incentivated Limited 2011
HOW TO OPTIMISE MESSAGING
COMMUNICATIONS




                      Copyright Incentivated Limited 2011
Give consumers the content they want

“                                                                                                            “
                                                                                                                       Like Apple - where there were long
                                    “
    [For a free Fitness First Pass] I find
    out about it by e-mail already but
    would happily swap to text
                                                                                                                       queues to get the iPad, maybe [if a
                                                                                                                       text] would have allowed you to get
                                                                                                                       in first


                                                                                                          You get sent
                                                                                                       information about
                                                                                                        special offers and
                                                       You get sent vouchers                            discounts earlier
                    You get deals                                                                      than everyone else
                       that are
                                                           for money off                                      (42%)
                      especially                          products (57%)
                    negotiated on
                     your behalf
                                                                                                You can
                        (32%)
                                                                                                forward
                                                                                               offers and                     You can save
                                                                                              information                    offers and look
                                                                                               to friends                     at them later
                                                     target
                                                   with stuff
                                                                                                 (25%)                            (34%)
                                                   you like in
                You can redeem the                                          You get sent
                                                     future                                                 You can
                 offers and look at                   (17%)                  interesting                     browse
                  them at a time                                         information that                     offers
                 convenient to you                                       is relevant to you                 wherever
                       (40%)                                                    (34%)                        you are
                                                                                                              (26%)


                                    Base: All respondents (1022)
                                    Source: IAB/DMA Mobile Messaging Study September 2010                                      Copyright Incentivated Limited 2011
There is currently a gap
Between what consumers want & get – opportunities exist


                                                                                                                                     1. Messages with a money-off voucher
                                    100                                                                                                 or other type of discount for a
                                     90                                                                                                 product, service or brand
                                                                                                                                     2. Messages with information about a
                                     80                                                                                                 sale for a product, brand or service
% RECEIVED THIS TYPE OF MESSAGING




                                                        5

                                     70
                                                                                                                                     3. Messages with surveys in
                                     60
                                                                                                                                     4. Messages with competitions in
                                     50
                                                                                                                                     5. Messages containing information or
                                     40
                                                                                                                                        updates about a product, brand or
                                     30                           2                                                                     service
                                                                                       1
                                     20                                                                                              6. Messages with a link that you click and
                                                        4
                                              7                                                                                         can make a call to receive an offer, buy
                                     10           6                                                                                     products or book services
                                                            3
                                      0                                                                                              7. Messages with a WAP link to a brand or
                                                                                                                                        products mobile internet site
                                          0   10 20 30 40 50 60 70 80 90 100
                                                                LEVEL OF INTEREST IN TYPE OF MESSAGING
                                                                              (% top 2 box)

                                                  Base: All who have received SMS/MMS advertising via text in the last month (308)
                                                  Source: IAB/DMA Mobile Messaging Study September 2010                                                  Copyright Incentivated Limited 2011
Majority happy to receive 1 SMS per week



                                                     69% of those signed up to a 3rd party
                                                        database would like to receive
                                                     communication at least once a week
Cumulative %




               Base: All respondents (1022)
               Source: IAB/DMA Mobile Messaging Study September 2010


                                                                                             Copyright Incentivated Limited 2011
Optimum time of day to send SMS?


                                                             “
                                                                 Sometimes you get a
                                                                 promotional text at 2am
                                                                                               “
                                                         %
                                                                 which irritates [me]

                         EARLY MORNING (7am – 10 am)



                        LATE MORNING (10am – midday)
                                                                                                      “
                                                             “
                      EARLY AFTERNOON (midday - 3pm)
                                                                   If there’s a sale on tomorrow,
                                                                   I need to know tonight!
                          LATE AFTERNOON (3pm – 6pm)


                            EARLY EVENING (6pm – 8pm)


                            LATE EVENING (8pm – 11pm)




 Base: All who responded with time of day(726)
 Source: IAB/DMA Mobile Messaging Study September 2010


                                                                          Copyright Incentivated Limited 2011
Messaging Best Practice
No short version of this story … here’s a précis of consumer concerns

   Awareness (32% of customers do not know about B2C messaging)
        promote the offering using existing relationships and touchpoints, and
         welcome consumers with an initial text message once you have their
         details
   Perceived cost (71% of respondents were wary of any costs that may
    be associated)
        be exceptionally clear in communications with consumers about the
         costs associated with mobile messaging, which are often zero, and also
         consider making responses (as well as browsing) free
   Relevance (71% worried about unwanted messages)
        let consumers know what kinds of messages they will be receiving and
         how often (let them choose the frequency)

                                                                        Copyright Incentivated Limited 2011
Messaging Best Practice (2)
No short version of this story … here’s a précis of consumer concerns

   Control (61% were worried about not be able to opt-out once having
    opted-in)
        make unsubscribing easy
        Make re-subscribing even easier!!
   Privacy (64% thought they may have to share personal details)
        if you do not intend to share the data with third parties then say so




                                                                        Copyright Incentivated Limited 2011
Contents

      Mobile is a ‘hot topic’
      Mobile Messaging
      Case Study examples
      About Incentivated




                                Copyright Incentivated Limited 2011
Jaguar case study – Objectives

   Allow mobile users to register & be the ‘first to know’
        Prospects register for updates and invitations to view the XJ
        Unlocks mobile content exclusively for registrants
   Capture & deliver mobile leads
   Deliver a ‘luxury’ mobile experience for site visitors
        Creative custom made for high end phones
        Early adopter delivering specific Android UE to complement iPhone site
   Update and use site in all phases of the campaign
   Maximise lead generation and data collection opportunities
   Use the latest mobile technology to showcase XJ and generate leads


                                                                                  Copyright Incentivated Limited 2011
Jaguar’s target users have top end handsets
High-spec, content hungry iPhones & Androids dominate (60% of all)
    Apple iPhone    T-Mobile Mytouch 3G      T-Mobile G1     HTC Hero / HTC 6277         HTC Fiesta
    (Apple OS)      (Android OS)             (Android OS)    (Android OS)                (Android OS)
    44,929          5,250                    5,015           4,178                       4,079
    38.75%          4.53%                    4.33%           3.60%                       3.52%




     HTC Tattoo     Blackberry 8330       HTC Sapphire      HTC Touch Pro                Blackberry 8130
     (Android OS)   (RIM OS)              (Android OS)      (Windows Mobile OS)          (RIM OS)
     3,669          2,483                 2,309             2,262                        1,978
     3.16%          2.14%                 1.99%             1.95%                        1.71%




                                                                                   Copyright Incentivated Limited 2011
Billboard Spectacular
Los Angeles, Wilshire Boulevard




                                  Copyright Incentivated Limited 2011
Jaguar / Los Angeles – Mall Dioramas




                                       Copyright Incentivated Limited 2011
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Copyright Incentivated Limited 2011
Integrated thinking
             Email

                                                DM
Press ads




                       Mobile loyalty service

Website

                                                Mobile banner ads
                Social media




                                                          Copyright Incentivated Limited 2011
Click-through from SMS & MMS
   The campaign reached out to those who signed up for picture (MMS) messages and text
   (SMS) alerts with offers, deals, promotions and news about M&S. This enabled M&S to
   engage with their customers through mobile directly and use it to complement existing DM
   and email contact strategies.




               2010 WINNER
   Most Effective Mobile CRM/Enterprise
           Messaging Campaign



   The ongoing campaign had recruited more than 700,000 opt-in customers to the
   mobile database with a minimal opt-out rate.

                                                                                  Copyright Incentivated Limited 2011
Mobile integration boosts fundraising campaign




                                   The Solution:
                                   The campaign invites members
                                   of the public to buy 1 of 7 life
                                   saving solutions costing between
                                   £1 and £5 by texting the
                                   corresponding keyword (e.g.
                                   NUT for Peanut butter) to
                                   81819 and go on to complete a
                                   mobile internet Gift Aid form.

                                   A video explaining the different
                                   ways to donate was played on
                                   large TV screens at three of
   Business Need:                  London’s busiest railway stations.


   To integrate mobile into a
                                   Bluetooth units, were installed in 20 STC high               Functions:
                                   street stores nationwide, with a ‘measles virus’
   multi-media campaign and
                                   Java application that customers could
   introduce it as an additional                                                                •    Direct response
                                   download to their phones and forward on to
   fundraising mechanism                                                                        •    Revenue generation
                                   friends via SMS.
   to traditional methods.                                                                      •    Transaction


INSPIRATION GUIDE: TRANSACTION                 beinspired@incentivated.com                          Copyright Incentivated Limited 2011
Charity: Save the children                     www.incentivated.com/charity
Closing thought

    At the time of the
    dotcom bubble,                  400m
    i.e. around 2000,
    there were 350
    million people
    online.               Peoplewith smartphones in
                          the world today
                            Plus 4 billion with internet-
                             capable feature phones



                                             Copyright Incentivated Limited 2011
Thank You

                                             Jason Cross
                                          Marketing Director
                                      jasonc@incentivated.com

                                           @jcmobile10

                                            Incentivated
                                          23 Curtain Road
                                         London EC2A 3LT
                                         Tel: 0845 130 3985


(No code reader? Text CODE to
62233 for a link to a reader
appropriate for your phone)


Copyright Incentivated Limited 2011                             www.incentivated.com
Contents

      Mobile is a ‘hot topic’
      Mobile Messaging
      Case Study examples
      About Incentivated




                                Copyright Incentivated Limited 2011
Who we are

   Incentivated is an independent technology company and marketing
    services agency
   We have 10 years’ experience operating exclusively in the mobile
    marketing sector
   We help our international client-base deliver integrated acquisition,
    CRM, and mCommerce campaigns and services through mobile




                             Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Who we are
Full service mobile with deep experience

   Technologies                                                           Strategies
      5 formats:                                                              3 key areas of client activity:
            Enterprise messaging (SMS, MMS, etc)                                            Acquisition
            Mobile internet                                                                 CRM
            Apps                                                                            mCommerce
            Shortcodes & QR codes
            Location marketing

   Services
      2 consultancy offerings:
            Creative services
            Managed services




                                                Mobile Travel & Tourism Masterclass 14/6/11                 Copyright Incentivated Limited 2011
Who we are
How we work with clients: engagement is spread across three levels


   Clients   Global acquisition, CRM, and mCommerce campaigns and services


                                                                          Campaign strategy and execution
                  Marketing, Creative & Advertising                       Design, build and hosting of mobile internet sites*
                              Agency                                      Mobile advertising planning & buying
                                                                          Consulting, insight and post campaign analysis


                                                                          Mobile and email marketing
                    Mobile Marketing, Internet &                          Mobile internet site publisher
                      mCommerce Platform                                  mCommerce suite
                                                                          Self-serve functionality (“SaaS”)


                                                                           SMS, PSMS, MMS, LBS, 2D (QR etc) barcodes
                   Messaging Gateway & Software                            Mobile content management system (CMS)**
                            Company                                        Systems integration and various APIs
                                                                           Development of both handset and server-side apps

                                                                    *Includes iPhone and other ‘smartphone’ specific sites **Phone capabilities database




                                    Mobile Travel & Tourism Masterclass 14/6/11                                                     Copyright Incentivated Limited 2011
Who we are
Just some of our clients




                           Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Technologies

   Incentivated’s offering covers the full range of mobile technologies
    delivered as products or services




                             Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Technologies
Enterprise messaging

   Reaching consumers with enterprise
    messaging is incredibly effective




               30%
             of 18-24 year-olds check
              their messages at least
                      hourly


               comScore, January 2011




                                               Messaging volumes continue to grow – everyone can use SMS and MMS
                                                                                        IAB/DMA Mobile Messaging Study, September 2010




                                        Mobile Travel & Tourism Masterclass 14/6/11         Copyright Incentivated Limited 2011
Technologies
Enterprise messaging
                                                     Our enterprise messaging solution is comprehensive and resilient


   Our mobile messaging
    platform, Iris, delivers SMS
    and MMS throughout 206
    countries on a manual
    (including managed) or
    automated basis




                                   Mobile Travel & Tourism Masterclass 14/6/11               Copyright Incentivated Limited 2011
Technologies
Enterprise messaging

  Messaging volumes continue to grow

                                                                 SMS (top line)             MMS (bottom line)
       120                                                                                                                                    1
                                                                                                                       CAGR* 31%
                                                                                                                                              0.9
       100
                                                                                                                                              0.8
                                                                                                                                              0.7
         80
                                                                                                                                              0.6
         60                                                                                                                                   0.5
                                                                                                                                              0.4
         40
                                                                                                                                              0.3
                                                                                                                                              0.2
         20
                                                                                                                                              0.1
           0                                                                                                                                  0
                        2004                        2005        2006                      2007                  2008        2009



Ofcom, August 2010   *Compound annual growth rate



                                                           Mobile Travel & Tourism Masterclass 14/6/11                    Copyright Incentivated Limited 2011
Technologies
Apps

   Consumers have downloaded more
    than 13 billion apps from the Apple
    App Store and Android Market in
    under three years
                                                                          36.4%

                                                                              of people use
                                                                              mobile apps*              >7m
                                                                                             People download apps
                                                                                            for their mobile phones


                                                                                        *Excluding native games
                                                                                     Source: comScore, January 2011




                                Mobile Travel & Tourism Masterclass 14/6/11                              Copyright Incentivated Limited 2011
Technologies
Apps

   We build apps for all mobile devices and platforms
        Either native (per platform) or cross-platform ‘web apps’
        Both are integrated with client systems and supported by proprietary
         middleware
        Development is entirely in-house




                                Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Technologies
Mobile internet

  Every year, more and more consumers are accessing the internet on their mobile devices

                                                                                                                     44% growth in
    20,000,000
                                                                                                                         2010

    18,000,000

    16,000,000
                                                                                            24% YOY growth
    14,000,000                                                                           between 2008 and 2009
                                              Data charges
    12,000,000                                 removed


    10,000,000

     8,000,000

     6,000,000
             Dec-05           Jun-06      Dec-06         Jun-07     Dec-07        Jun-08        Dec-08      Jun-09   Dec-09   Jun-10      Dec-10



Source: comScore January 2011, 3 month rolling average


                                                              Mobile Travel & Tourism Masterclass 14/6/11                       Copyright Incentivated Limited 2011
Technologies
Mobile internet

   Incentivated’s Mobile Site Publisher
    delivers customised and dynamic
    websites for all mobile devices
       Content Repurposing API

       Handset Detection and URL
        Re-direct API
       Transcoding engine

       Genuine uniqueness

       Engagement analytics




                                        Delivering a mobile site
                                Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Technologies
Shortcodes & QR codes

   Shortcodes make it easier and faster
    for our clients to communicate with
    their target markets
   A shortcode is typically a five digit
    number that can receive and respond
    to text messages, and is usually
    placed on some advertising medium




                                                                  Incentivated’s shortcode campaign for British Airways


                                Mobile Travel & Tourism Masterclass 14/6/11                     Copyright Incentivated Limited 2011
Technologies
Shortcodes & QR codes

   QR codes work much the same
    as the barcodes you see printed
    on products at a retailer
   A code is scanned using a
    device (mobile) and software
    (QR reader), and is translated
    into meaningful information
    (e.g. web links)




                                          Incentivated’s QR code campaign for STA Travel




                                 Mobile Travel & Tourism Masterclass 14/6/11               Copyright Incentivated Limited 2011
Technologies
Location marketing

   Location marketing is a means to target specific groups more
    effectively based on where they are, and to provide useful and
    relevant services to consumers wherever possible




Incentivated’s
location
campaigns for:   DKNY                  Mothercare                          Plings (DCSF)


                             Mobile Travel & Tourism Masterclass 14/6/11                   Copyright Incentivated Limited 2011
Strategies

   Incentivated works with clients to enhance their key marketing
    strategies




                            Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Strategies
Acquisition

   We integrate mobile with your
    acquisition strategy through:                                             Location marketing, to deliver
                                                                               location-aware coupons, offers,
                                                                               and downloadable media content
                                                                              Shortcodes and QR codes, to
                                                                               easily direct consumers towards
                                                                               your stores or mobile internet
                                                                               sites

          2 million
                                                                              Direct response tools, including
                                                                               auto-response, ticket requests,
              c                                                                text and win, and eBrochure
         people in the UK responded                                            requests all through our Iris
             to SMS advertising                                                platform
          comScore: 3 months to Jan 11




                                         Mobile Travel & Tourism Masterclass 14/6/11                      Copyright Incentivated Limited 2011
Strategies
CRM

   Why mobile CRM?
      Consumers are used to managing
       their personal relationships with
       mobile phones, so it makes sense                                           180,000
       for businesses to manage
       customer relationships through
       the same medium.
                                                                             Number of SMS alerts sent out
      Incentivated offers comprehensive                                      by BA during the Icelandic
       CRM solutions to clients that                                              volcano disruption
       include building databases and
       distributing content to customers

                                     *The comScore 2010 Mobile Year in Review
                                   **Brandbank 2010 mCommerce Content Report



                               Mobile Travel & Tourism Masterclass 14/6/11                 Copyright Incentivated Limited 2011
Strategies
CRM

   Loyalty
      Exclusive products and                                      Innovative apps and mobile
       promotions through enterprise                                internet sites to engage
       messaging campaigns                                          customers with your brand and
      Location-aware deals delivered                               encourage repeat purchases,
       immediately into customers'                                  through special offers and
       hands                                                        mCommerce




                               Mobile Travel & Tourism Masterclass 14/6/11           Copyright Incentivated Limited 2011
Strategies
CRM

   Customer service
      Deliver enterprise messaging
       solutions for appointment                                               8m
       reminders, ticket requests, and
       service or interruption updates
      Provide location-based services
                                                                   Access maps on their
      Provide account access through                                     phones
       mobile internet sites                                                                           40.6%
      Create apps to deliver a richer and
       more useful customer service
       experience.                                                                                Of people use mobile
                                                                                                        internet

                                                                               Source: comScore, January 2011



                                 Mobile Travel & Tourism Masterclass 14/6/11                             Copyright Incentivated Limited 2011
Strategies
mCommerce

   The best commerce strategies
    encourage consumers to purchase
    and consume content and products
    on the go
                                                                     85%
                                                                  Increase in mobile
                                                                 retail usage in EU5
                                                                 from 2009 to 2010*      35%

                                                                                     Of people search for
                                                                                   products to buy on their
                                                                                      mobile phones**
                                   *The comScore 2010 Mobile Year in Review
                                 **Brandbank 2010 mCommerce Content Report



                             Mobile Travel & Tourism Masterclass 14/6/11                 Copyright Incentivated Limited 2011
Strategies
mCommerce

   Incentivated's bank-approved, secure
    mCommerce solutions can help your
                                                                                 eCommerce integration
    company increase sales and attract                                       

                                                                                Credit card authorisation
    new customers by providing                                                  Donation services for
    immediate payment transactions                                               charities
                                                                                Shortcodes and QR codes for
                                                                                 couponing and ticketing
                                                                                Auction bidding
                                                                                Account top-ups
                                                                                Mobile internet and in-app
                                                                                 payment facilities




                               Mobile Travel & Tourism Masterclass 14/6/11                           Copyright Incentivated Limited 2011
Services

   As well as technology products and consultancy, within mobile
    Incentivated offers both creative and managed services
        Design and UX
        24/7 support and maintenance




                               Mobile Travel & Tourism Masterclass 14/6/11   Copyright Incentivated Limited 2011
Services
Creative

   Our creative ideas contribute to our award winning projects, and
    help us deliver effective campaigns that are differentiated from
    anything else on the market




     Incentivated’s
     creative work for:   M&S                   Jaguar                        RBKC



                                Mobile Travel & Tourism Masterclass 14/6/11          Copyright Incentivated Limited 2011
Services
Managed

   Incentivated therefore offer a sliding
    scale of managed service for our                                              Copywriting
                                                                                      Message writing (broadcast
    mobile solutions depending upon                                                    and response)

    our clients’ needs                                                            Creative
                                                                                      Repurposing images for
   Depending upon business need, we                                                   MMS, apps, and mobile sites
                                                                                  Reporting
    work directly with clients or with                                                Mid and post campaign
    their other marketing agencies to                                                  analytics for message
                                                                                       delivery, links clicked,
    deliver managed solutions                                                          response rates, page views,
                                                                                       and more




                                 Mobile Travel & Tourism Masterclass 14/6/11                               Copyright Incentivated Limited 2011
Strategies
mCommerce

   The best commerce strategies
    encourage consumers to purchase
    and consume content and products
    on the go
                                                                         85%
                                                                     Increase in mobile
                                                                     retail usage in EU5
                                                                    from 2009 to 2010*           35%

                                                                                             Of people search for
                                                                                           products to buy on their
                                                                                              mobile phones**
                           *The comScore 2010 Mobile Year in Review
                           **Brandbank 2010 mCommerce Content Report



                                 Mobile Travel & Tourism Masterclass 14/6/11                     Copyright Incentivated Limited 2011

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Inc pres (dma bristol messaging) 24 jun11 v1.0

  • 1. Mobile Messaging: effective campaigns using SMS Jason Cross 24 June, 2011 Copyright Incentivated Limited 2011 www.incentivated.com
  • 2. Contents Mobile is a ‘hot topic’ Mobile Messaging Case Study examples About Incentivated Copyright Incentivated Limited 2011
  • 3. Smartphones in the UK Smartphone use increases, but market is still dominated by non-smartphones Non-smartphones 61% Apple 10.7% Symbian 9.7% Google 9.1% RIM 7.1% Microsoft 1.6% Palm 0.1% Other smartphone 0.9% Smartphones 39% Source: comScore, 3 month average ending March 2011. Copyright Incentivated Limited 2011
  • 4. Global smartphone sales numbers Sales continue to grow with Android and iOS the clear winners Number of global smartphone sales to end users, Q1 2011 (000’s) 1Q10 1Q11 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Symbian BlackBerry (RIM) Android (Google) iOS (Apple) Microsoft Other OS Source: Gartner, May 2011, http://www.gartner.com/technology/home.jsp Copyright Incentivated Limited 2011
  • 5. Mobile reaches all social segments Over a quarter of DE households are mobile-only Number of smartphone subscribers worldwide, Q2 2010 100% 96% 96% 93% 88% 88% 80% 80% 71% 60% 54% 40% 20% 0% AB C1 C2 DE Own a mobile phone Have fixed internet at home Source: Ofcom, Q2 2010, figs 5.68 and 4.16 Copyright Incentivated Limited 2011
  • 6. Use of mobile media 18-24 age band are the most prolific users of mobile media features Index vs. population as a whole 13-17 18-24 25-34 35-44 45-54 250 200 150 100 50 0 Apps Mobile LBS MMS SMS Internet Source: ComScore, Average number of subs for the 3 month ended June 10 Copyright Incentivated Limited 2011
  • 7. Email accessed on mobiles by age group Increasingly, emails are read “on the go” across a variety of devices Percentage Accessed email (work or personal) from mobile 60% 55% 48% 50% 40% 41% 40% 36% 28% 30% 26% 25% 23% 20% 14% 12% 10% 6% 0% 13-17 18-24 25-34 35-44 45-54 55+ Female Male Data: Three month average ending August 2010 Country: UK - N= 15,824 mobile phone users Copyright Incentivated Limited 2011
  • 8. State of the Nation  Over the last 12 months companies have started to offer what consumers were happy to do all the time  With many sites looking the same, the opportunity now exists to:  improve the UX/UI and so differentiate the offering  offer implicit and explicit personalisation i.e. join up the web and mobile sites  deliver e-commerce best practice Copyright Incentivated Limited 2011
  • 9. State of the Nation  People do it  51% of the UK engages in mCommerce  People like it  42% say they use their mobile because it is the easiest way to research/buy  M-Commerce will continue to grow  49% of non M-Commerce users say they will purchase in the future  Smartphone users are 63% more likely to engage in mCommerce  only 9% mention security issues Source: IAB Consumer M-Commerce Study October 2010 Base: All UK Mobile Users (1,039) Copyright Incentivated Limited 2011
  • 10. State of the Nation 27% of adults with phones have ever used their mobile to purchase a service/product via credit card / direct debit / Paypal Source: IAB Consumer M-Commerce Study October 2010 Base: All UK Mobile Users (1039) Copyright Incentivated Limited 2011
  • 11. Does your site work? Half of UK firms fail to check their own website on mobile devices  Of those that have  41% admit their website has a reduced appearance  36% offer reduced functionality  The survey ( from 1&1 Internet) also finds that 65% of firms have not optimised their websites for mobile usage and have no plans to do so Copyright Incentivated Limited 2011
  • 12. You get blamed for a bad mobile experience No site or a single mobile presentation layer are no longer options Q16. When a website doesn’t work on your mobile phone, which of the following do you tend to blame? Brand Network The User 60% The Phone (site) Provider 40% 44% 34% 29% 20% 0% 5% Source: Appetite, Yahoo! March 2010 Base: all those who access internet on mobile (n=1,240) Copyright Incentivated Limited 2011
  • 13. Contents Mobile is a ‘hot topic’ Mobile Messaging Case Study examples About Incentivated Copyright Incentivated Limited 2011
  • 14. Text and picture msgs reach twice as many UUs Messaging not as transactional as mobile internet and apps Number of subscribers in the UK (000s) (Average number of subs for the 3 month ended Sep 10)  Text (SMS) and picture messaging 50,000 (MMS) are used by 90% and 62% 45,000 respectively 40,000 35,000  Apps and the mobile internet used 30,000 by 43 & 38% and growing rapidly 25,000  Many apps are games and 20,000 come pre-installed 15,000 10,000  Downloading new apps or 5,000 allowing apps to update 0 content or transact requires the Apps Mobile LBS MMS SMS mobile internet Internet Source: Comscore Copyright Incentivated Limited 2011
  • 15. The Role for Messaging (push and pull) As well as B2C, SMS has a role to play in B2E and B2B  Acquisition  Awareness  Direct marketing (opted-in third party lists)  Sponsored messages  Direct response and sales promotion (e.g. text & win)  Closing the deal  Customer Relationship Management (“CRM”)  Customer service  Retention (including loyalty programmes, coupons and vouchers)  Surveying and other data capture  Promotion, up-sell and cross-sell  M-commerce  Transacting (PSMS as well as triggering payments using pre-registered credit card details etc)  Confirmation e.g. receipting, delivery status updates and problem resolution Copyright Incentivated Limited 2011
  • 16. Think about the end user… Text XMAS to 6XXXX to receive a link to our app Copyright Incentivated Limited 2011
  • 17. CONSUMERS ARE ENGAGING WITH MOBILE MESSAGING Copyright Incentivated Limited 2011 17
  • 18. Summary of the research approach Phase 2: Phase 3: Phase 1: Effectiveness study across M&S - 1 focus group opted into Online survey of 1,000 nationally messaging database CRM database and O2 More + representative consumers Orange shots -1 focus group not opted in Copyright Incentivated Limited 2011
  • 19. CRM: Survey and Data Capture Sent to M&S, O2 and Orange customers as part of this research SMS Survey Site (concatenated) 228 characters Originator: 200200 We’d like to ask you a few questions about retailers. You’ll get 6 texts to answer, it’s free to enter and should only take a moment. To take part text YES to 84420 or 1. click 2. http://wapp.co.uk/r/xxxx xxxxxxxxxxxxxxx (free browsing) 1. Zero-rated shortcode. 2. Zero-rated domain. Copyright Incentivated Limited 2011
  • 20. There is a sizeable % opting in to messaging Have received Have opted in to Have agreed to be SMS/MMS receive SMS/ MMS contacted via SMS/ advertising in the messages from a MMS from a last month mobile operator company or brand 30% 12% 15% 6% have done both 21% have done either Base: Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 21. Messaging reaches a valuable audience Subscribers to mobile operator databases Subscribers to third party mobile are more likely to be: databases are more likely to be: • Aged 18-24 • Male • Frequent texters (at least 10 a day) • Aged 18-24 • Frequent mobile internet users (daily) • Frequent texters (at least 10 a day) • Smartphone users • Frequent mobile internet users (daily) • Smartphone users • Agreed to be contacted by a company via email Base: Base: All respondents (1022) Copyright Incentivated Limited 2011 Source: IAB/DMA Mobile Messaging Study September 2010
  • 22. Once opted in People become more positive to messaging “ “ [Texts are] normally from people [companies] you want to hear from, so it isn’t a bane +217% +243% % % Not opted in Opted in Not opted in Opted in Messaging works best at grabbing your attention Messaging is the best way of receiving relevant and and making you want to know more about a brand, personalised information about brands, products company, product or service and services Base: Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 23. And people understand the advantages “ “ (For vouchers) there is less chance of forgetting when you go to the restaurant! I don’t have to print anything out ↑40% More relevant - I can choose to receive advertising that is relevant to my personal tastes ↑71% Not opted- Location-based - I can receive advertising that is relevant to the area I am in ↑43% in Opted-in Timely - I can receive advertising at a time which is useful to me ↑122% 10 20 30 40 50 60 Base: Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 24. Messaging is immediate 78% of people read messages within 5 minutes Immediacy of reading text messages 41 Immediately 30 % People you know 37 Within 5 minutes 32 People you don't know 10 Within 10 minutes 10 10 Within an hour “ “ 9 [If ] they are an alert they catch your eye – it 3 might be a friend – you always read to see Longer 8 what its about Delete them withour reading 9 Base: Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 25. EFFECTIVENESS OF MOBILE MESSAGING Copyright Incentivated Limited 2011
  • 26. M&S Message to CRM database Give in to temptation with M&S Dine In for Two for £10! Details in store or click for menu: XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX MMS Ends next Tuesday, 3 August. To stop text dine stop to 65006 Slide 1 (3s) Slide 2 (3s) Slide 3 (3s) Slide 4 (5s) M&S Dine In for £10 with wine is available now! View menu at XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX XX Details in store. SMS Ends Tues. To opt out txt cook stop to 65006 Copyright Incentivated Limited 2011
  • 27. Prompted ad awareness increases for MMS M&S database 86 +13% 79 79 % Control Cell SMS Cell MMS Cell Base: M&S database: Control (230), SMS (256), MMS (693). Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 28. Almost 100% recall of the message M&S database 96 94 +85% +81% 52 % Control Cell SMS Cell MMS Cell Base: M&S database: Control (230), SMS (256), MMS (693) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 29. MMS changes behaviour Visit store Visit M&S mobile site +150% Base: M&S database: Control (230), SMS (256), MMS (693) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 30. M&S message to operator databases MMS SMS Originator: 20502 Subject: M&S shoes Shop on your mobile. Shoes and much more available We'd like to ask you a with free delivery if you few questions about order on your mobile before retailers. You'll get 6 midnight on 24th of Aug. Go texts to answer, it's free to enter and to should only take a http://shoes.mands.mobi/r/x moment. To take part xxxxxxxx (clicking on the link reply AGREE or click will be charged at standard http://www.wapmeit.c rate) and use code o.uk/r/TXXXXXXXXXX DELPHONE to redeem this X fantastic offer. One per customer. Terms apply. To stop O2 More text STOP to 20502 Slide 2 (5s) Copyright Incentivated Limited 2011
  • 31. Consumers almost as happy to receive msgs from their operator as from friends/family How happy would you be to receive SMS/ MMS messages that provide information about brand/products or services that you are interested in or information about discounts and special offers? Base: All respondents (1022) % Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 32. MMS drives prompted awareness Operator database +27% +7% Base: Operator database: Control (590), SMS (588), MMS (346) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 33. Msg achieves huge standout Operator database +975% +425% Base: Operator database: Control (590), SMS (588), MMS (346) Copyright Incentivated Limited 2011 Source: IAB/DMA Mobile Messaging Study September 2010
  • 34. Consumers can see the benefits of MMS  Slick interface – a joy to view, more fun to interact with  Markers of authenticity – logos, images, visual branding elements  Greater potential for interaction - greater interactivity without having to ‘reply’ to message or download, less concern about being charged  More visual/audio interest - can be a more passive viewing experience akin to TV adverts/magazines but would need to be sensitive to fact that may be opened in public/workplace Copyright Incentivated Limited 2011
  • 35. Effectiveness of mobile messaging • Messaging makes an impact- even among a highly engaged M&S CRM audience- as almost 100% of the base remembered it. • Consumers are almost as happy to receive advertising from their operators as they are friends&family, providing a trusted place for advertisers to send their message to new customers. • Consumers like MMS - which means it achieves huge standout amongst both CRM and operator databases, and drives behaviour change. Copyright Incentivated Limited 2011
  • 36. 75% would opt-in, given the right incentive Which of the following would make you more likely to opt in to “ these type of services? % “Morrisons – their deals of the week – if you knew that week it [might] dictate where you shop” “ “ “It’s nice how they give “ advance notice [of sales etc.] because they know you’ve been there before” Base: Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 37. Consumers actively want communication from certain categories/brands Desirable Categories Desirable Brands • Restaurants, Pubs & Bars • Leisure & Entertainment • Food &Groceries • Holidays & Travel • Clothing • Department Stores • Beauty    Frequent purchases/ Clear, direct benefits Aspirational behaviours Copyright Incentivated Limited 2011
  • 38. Best practise for building a CRM messaging database • Awareness • Targeting - an easy place to start is to build on existing relationships • Start as you mean to go on – welcome them as soon as you have their number, this is your opportunity to convert straight away. Follow with your first marketing message within a week of this. Any longer than a month and they will forget. • Cost • Re-assure throughout of the costs involved • If communication is 2 way consider making responses free • If the service is charged this must be include this in the first message and follow with reminder at least once per month • Relevance • Make it clear what the texts will contain and why people should sign up • Have a clear activation and retention programme • Focus on the behaviour of your consumers and provide appropriate messages • Campaigns where you should pay particular attention – marketing to children, adult content, gambling, alcohol and sales promotion • Control • Re-assure customers how many messages they will get • Don’t take them for granted, consider why people signed up – and then ensure you are delivering it. • Make it clear how users can potentially unsubscribe. The Networks have defined a ‘Universal Stop’ policy to which marketers must adhere to • Privacy • Secure customer confidence and show them you will handle their personal details responsibly • Ask for permission if you wish to share their details at the opt in or tell them at the start you will not share their details with third parties Copyright Incentivated Limited 2011
  • 39. HOW TO OPTIMISE MESSAGING COMMUNICATIONS Copyright Incentivated Limited 2011
  • 40. Give consumers the content they want “ “ Like Apple - where there were long “ [For a free Fitness First Pass] I find out about it by e-mail already but would happily swap to text queues to get the iPad, maybe [if a text] would have allowed you to get in first You get sent information about special offers and You get sent vouchers discounts earlier You get deals than everyone else that are for money off (42%) especially products (57%) negotiated on your behalf You can (32%) forward offers and You can save information offers and look to friends at them later target with stuff (25%) (34%) you like in You can redeem the You get sent future You can offers and look at (17%) interesting browse them at a time information that offers convenient to you is relevant to you wherever (40%) (34%) you are (26%) Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 41. There is currently a gap Between what consumers want & get – opportunities exist 1. Messages with a money-off voucher 100 or other type of discount for a 90 product, service or brand 2. Messages with information about a 80 sale for a product, brand or service % RECEIVED THIS TYPE OF MESSAGING 5 70 3. Messages with surveys in 60 4. Messages with competitions in 50 5. Messages containing information or 40 updates about a product, brand or 30 2 service 1 20 6. Messages with a link that you click and 4 7 can make a call to receive an offer, buy 10 6 products or book services 3 0 7. Messages with a WAP link to a brand or products mobile internet site 0 10 20 30 40 50 60 70 80 90 100 LEVEL OF INTEREST IN TYPE OF MESSAGING (% top 2 box) Base: All who have received SMS/MMS advertising via text in the last month (308) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 42. Majority happy to receive 1 SMS per week 69% of those signed up to a 3rd party database would like to receive communication at least once a week Cumulative % Base: All respondents (1022) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 43. Optimum time of day to send SMS? “ Sometimes you get a promotional text at 2am “ % which irritates [me] EARLY MORNING (7am – 10 am) LATE MORNING (10am – midday) “ “ EARLY AFTERNOON (midday - 3pm) If there’s a sale on tomorrow, I need to know tonight! LATE AFTERNOON (3pm – 6pm) EARLY EVENING (6pm – 8pm) LATE EVENING (8pm – 11pm) Base: All who responded with time of day(726) Source: IAB/DMA Mobile Messaging Study September 2010 Copyright Incentivated Limited 2011
  • 44. Messaging Best Practice No short version of this story … here’s a précis of consumer concerns  Awareness (32% of customers do not know about B2C messaging)  promote the offering using existing relationships and touchpoints, and welcome consumers with an initial text message once you have their details  Perceived cost (71% of respondents were wary of any costs that may be associated)  be exceptionally clear in communications with consumers about the costs associated with mobile messaging, which are often zero, and also consider making responses (as well as browsing) free  Relevance (71% worried about unwanted messages)  let consumers know what kinds of messages they will be receiving and how often (let them choose the frequency) Copyright Incentivated Limited 2011
  • 45. Messaging Best Practice (2) No short version of this story … here’s a précis of consumer concerns  Control (61% were worried about not be able to opt-out once having opted-in)  make unsubscribing easy  Make re-subscribing even easier!!  Privacy (64% thought they may have to share personal details)  if you do not intend to share the data with third parties then say so Copyright Incentivated Limited 2011
  • 46. Contents Mobile is a ‘hot topic’ Mobile Messaging Case Study examples About Incentivated Copyright Incentivated Limited 2011
  • 47. Jaguar case study – Objectives  Allow mobile users to register & be the ‘first to know’  Prospects register for updates and invitations to view the XJ  Unlocks mobile content exclusively for registrants  Capture & deliver mobile leads  Deliver a ‘luxury’ mobile experience for site visitors  Creative custom made for high end phones  Early adopter delivering specific Android UE to complement iPhone site  Update and use site in all phases of the campaign  Maximise lead generation and data collection opportunities  Use the latest mobile technology to showcase XJ and generate leads Copyright Incentivated Limited 2011
  • 48. Jaguar’s target users have top end handsets High-spec, content hungry iPhones & Androids dominate (60% of all) Apple iPhone T-Mobile Mytouch 3G T-Mobile G1 HTC Hero / HTC 6277 HTC Fiesta (Apple OS) (Android OS) (Android OS) (Android OS) (Android OS) 44,929 5,250 5,015 4,178 4,079 38.75% 4.53% 4.33% 3.60% 3.52% HTC Tattoo Blackberry 8330 HTC Sapphire HTC Touch Pro Blackberry 8130 (Android OS) (RIM OS) (Android OS) (Windows Mobile OS) (RIM OS) 3,669 2,483 2,309 2,262 1,978 3.16% 2.14% 1.99% 1.95% 1.71% Copyright Incentivated Limited 2011
  • 49. Billboard Spectacular Los Angeles, Wilshire Boulevard Copyright Incentivated Limited 2011
  • 50. Jaguar / Los Angeles – Mall Dioramas Copyright Incentivated Limited 2011
  • 57. Integrated thinking Email DM Press ads Mobile loyalty service Website Mobile banner ads Social media Copyright Incentivated Limited 2011
  • 58. Click-through from SMS & MMS The campaign reached out to those who signed up for picture (MMS) messages and text (SMS) alerts with offers, deals, promotions and news about M&S. This enabled M&S to engage with their customers through mobile directly and use it to complement existing DM and email contact strategies. 2010 WINNER Most Effective Mobile CRM/Enterprise Messaging Campaign The ongoing campaign had recruited more than 700,000 opt-in customers to the mobile database with a minimal opt-out rate. Copyright Incentivated Limited 2011
  • 59. Mobile integration boosts fundraising campaign The Solution: The campaign invites members of the public to buy 1 of 7 life saving solutions costing between £1 and £5 by texting the corresponding keyword (e.g. NUT for Peanut butter) to 81819 and go on to complete a mobile internet Gift Aid form. A video explaining the different ways to donate was played on large TV screens at three of Business Need: London’s busiest railway stations. To integrate mobile into a Bluetooth units, were installed in 20 STC high Functions: street stores nationwide, with a ‘measles virus’ multi-media campaign and Java application that customers could introduce it as an additional • Direct response download to their phones and forward on to fundraising mechanism • Revenue generation friends via SMS. to traditional methods. • Transaction INSPIRATION GUIDE: TRANSACTION beinspired@incentivated.com Copyright Incentivated Limited 2011 Charity: Save the children www.incentivated.com/charity
  • 60. Closing thought At the time of the dotcom bubble, 400m i.e. around 2000, there were 350 million people online.  Peoplewith smartphones in the world today  Plus 4 billion with internet- capable feature phones Copyright Incentivated Limited 2011
  • 61. Thank You Jason Cross Marketing Director jasonc@incentivated.com @jcmobile10 Incentivated 23 Curtain Road London EC2A 3LT Tel: 0845 130 3985 (No code reader? Text CODE to 62233 for a link to a reader appropriate for your phone) Copyright Incentivated Limited 2011 www.incentivated.com
  • 62. Contents Mobile is a ‘hot topic’ Mobile Messaging Case Study examples About Incentivated Copyright Incentivated Limited 2011
  • 63. Who we are  Incentivated is an independent technology company and marketing services agency  We have 10 years’ experience operating exclusively in the mobile marketing sector  We help our international client-base deliver integrated acquisition, CRM, and mCommerce campaigns and services through mobile Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 64. Who we are Full service mobile with deep experience  Technologies  Strategies  5 formats:  3 key areas of client activity:  Enterprise messaging (SMS, MMS, etc)  Acquisition  Mobile internet  CRM  Apps  mCommerce  Shortcodes & QR codes  Location marketing  Services  2 consultancy offerings:  Creative services  Managed services Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 65. Who we are How we work with clients: engagement is spread across three levels Clients Global acquisition, CRM, and mCommerce campaigns and services Campaign strategy and execution Marketing, Creative & Advertising Design, build and hosting of mobile internet sites* Agency Mobile advertising planning & buying Consulting, insight and post campaign analysis Mobile and email marketing Mobile Marketing, Internet & Mobile internet site publisher mCommerce Platform mCommerce suite Self-serve functionality (“SaaS”) SMS, PSMS, MMS, LBS, 2D (QR etc) barcodes Messaging Gateway & Software Mobile content management system (CMS)** Company Systems integration and various APIs Development of both handset and server-side apps *Includes iPhone and other ‘smartphone’ specific sites **Phone capabilities database Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 66. Who we are Just some of our clients Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 67. Technologies  Incentivated’s offering covers the full range of mobile technologies delivered as products or services Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 68. Technologies Enterprise messaging  Reaching consumers with enterprise messaging is incredibly effective 30% of 18-24 year-olds check their messages at least hourly comScore, January 2011 Messaging volumes continue to grow – everyone can use SMS and MMS IAB/DMA Mobile Messaging Study, September 2010 Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 69. Technologies Enterprise messaging Our enterprise messaging solution is comprehensive and resilient  Our mobile messaging platform, Iris, delivers SMS and MMS throughout 206 countries on a manual (including managed) or automated basis Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 70. Technologies Enterprise messaging Messaging volumes continue to grow SMS (top line) MMS (bottom line) 120 1 CAGR* 31% 0.9 100 0.8 0.7 80 0.6 60 0.5 0.4 40 0.3 0.2 20 0.1 0 0 2004 2005 2006 2007 2008 2009 Ofcom, August 2010 *Compound annual growth rate Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 71. Technologies Apps  Consumers have downloaded more than 13 billion apps from the Apple App Store and Android Market in under three years 36.4% of people use mobile apps* >7m People download apps for their mobile phones *Excluding native games Source: comScore, January 2011 Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 72. Technologies Apps  We build apps for all mobile devices and platforms  Either native (per platform) or cross-platform ‘web apps’  Both are integrated with client systems and supported by proprietary middleware  Development is entirely in-house Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 73. Technologies Mobile internet Every year, more and more consumers are accessing the internet on their mobile devices 44% growth in 20,000,000 2010 18,000,000 16,000,000 24% YOY growth 14,000,000 between 2008 and 2009 Data charges 12,000,000 removed 10,000,000 8,000,000 6,000,000 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Source: comScore January 2011, 3 month rolling average Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 74. Technologies Mobile internet  Incentivated’s Mobile Site Publisher delivers customised and dynamic websites for all mobile devices  Content Repurposing API  Handset Detection and URL Re-direct API  Transcoding engine  Genuine uniqueness  Engagement analytics Delivering a mobile site Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 75. Technologies Shortcodes & QR codes  Shortcodes make it easier and faster for our clients to communicate with their target markets  A shortcode is typically a five digit number that can receive and respond to text messages, and is usually placed on some advertising medium Incentivated’s shortcode campaign for British Airways Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 76. Technologies Shortcodes & QR codes  QR codes work much the same as the barcodes you see printed on products at a retailer  A code is scanned using a device (mobile) and software (QR reader), and is translated into meaningful information (e.g. web links) Incentivated’s QR code campaign for STA Travel Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 77. Technologies Location marketing  Location marketing is a means to target specific groups more effectively based on where they are, and to provide useful and relevant services to consumers wherever possible Incentivated’s location campaigns for: DKNY Mothercare Plings (DCSF) Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 78. Strategies  Incentivated works with clients to enhance their key marketing strategies Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 79. Strategies Acquisition  We integrate mobile with your acquisition strategy through:  Location marketing, to deliver location-aware coupons, offers, and downloadable media content  Shortcodes and QR codes, to easily direct consumers towards your stores or mobile internet sites 2 million  Direct response tools, including auto-response, ticket requests, c text and win, and eBrochure people in the UK responded requests all through our Iris to SMS advertising platform comScore: 3 months to Jan 11 Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 80. Strategies CRM  Why mobile CRM?  Consumers are used to managing their personal relationships with mobile phones, so it makes sense 180,000 for businesses to manage customer relationships through the same medium. Number of SMS alerts sent out  Incentivated offers comprehensive by BA during the Icelandic CRM solutions to clients that volcano disruption include building databases and distributing content to customers *The comScore 2010 Mobile Year in Review **Brandbank 2010 mCommerce Content Report Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 81. Strategies CRM  Loyalty  Exclusive products and  Innovative apps and mobile promotions through enterprise internet sites to engage messaging campaigns customers with your brand and  Location-aware deals delivered encourage repeat purchases, immediately into customers' through special offers and hands mCommerce Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 82. Strategies CRM  Customer service  Deliver enterprise messaging solutions for appointment 8m reminders, ticket requests, and service or interruption updates  Provide location-based services Access maps on their  Provide account access through phones mobile internet sites 40.6%  Create apps to deliver a richer and more useful customer service experience. Of people use mobile internet Source: comScore, January 2011 Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 83. Strategies mCommerce  The best commerce strategies encourage consumers to purchase and consume content and products on the go 85% Increase in mobile retail usage in EU5 from 2009 to 2010* 35% Of people search for products to buy on their mobile phones** *The comScore 2010 Mobile Year in Review **Brandbank 2010 mCommerce Content Report Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 84. Strategies mCommerce  Incentivated's bank-approved, secure mCommerce solutions can help your eCommerce integration company increase sales and attract   Credit card authorisation new customers by providing  Donation services for immediate payment transactions charities  Shortcodes and QR codes for couponing and ticketing  Auction bidding  Account top-ups  Mobile internet and in-app payment facilities Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 85. Services  As well as technology products and consultancy, within mobile Incentivated offers both creative and managed services  Design and UX  24/7 support and maintenance Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 86. Services Creative  Our creative ideas contribute to our award winning projects, and help us deliver effective campaigns that are differentiated from anything else on the market Incentivated’s creative work for: M&S Jaguar RBKC Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 87. Services Managed  Incentivated therefore offer a sliding scale of managed service for our  Copywriting  Message writing (broadcast mobile solutions depending upon and response) our clients’ needs  Creative  Repurposing images for  Depending upon business need, we MMS, apps, and mobile sites  Reporting work directly with clients or with  Mid and post campaign their other marketing agencies to analytics for message delivery, links clicked, deliver managed solutions response rates, page views, and more Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011
  • 88. Strategies mCommerce  The best commerce strategies encourage consumers to purchase and consume content and products on the go 85% Increase in mobile retail usage in EU5 from 2009 to 2010* 35% Of people search for products to buy on their mobile phones** *The comScore 2010 Mobile Year in Review **Brandbank 2010 mCommerce Content Report Mobile Travel & Tourism Masterclass 14/6/11 Copyright Incentivated Limited 2011