More than a marketing channel

1. More than a marketing channel: CMOs and the mobile imperative A Local-based services QR codes Personal emails GPS Social networking Web browsing Blogs Video WiFi ©TNS 2012 wallet Mobile Online purchase E-tailers Applications

2. Contents 1 Acknowledgements 04 2 Introduction: the mobile imperative 06 3 Overview: the game changer 12 4 Changing face of the mobile brand 16 5 Mobilising the path to purchase 26 6 A new way to pay 36 7 Leveraging mobile loyalty 44 8 Executive summary 48 9 About the author 50 2 tnsglobal.com © 2012 TNS 3

3. 08 1 Acknowledgements Many thanks to MaryLee Sachs for conducting these interviews and to all our contributors: Jack Armstrong Mike Hogan BASF GameStop Chief Marketing Officer Chief Marketing Officer Paul Berney Mike Hornigold Mobile Marketing Association The Coca Cola Company CMO & Managing Director EMEA Director of Emerging Shopper Technologies, Global Shopper Development Laurence Bresh Visit Britain Lauri Kien Kotcher Global Marketing Director Godiva Chief Marketing Officer Doug Busk The Coca Cola Company Nicolas Maurer Mobile Brand Strategy, Beiersdorf Global Connections Chief Marketing Officer Hugh Chambers Tricia Nichols British Olympic Association Gap Chief Commercial Officer Global Lead Consumer Engagement, Media Strategy & Brand Partnerships Wendy Clark The Coca Cola Company Simon Sproule SVP Integrated Marketing & Capabilities Nissan CVP, Global Marketing Communications Jim Gurke Getty Images Joanna Wang Chief Marketing Officer L’Oreal CMO, Greater China 4 tnsglobal.com © 2012 TNS 5

4. 2 Introduction: the mobile imperative Significant opportunities emerge when a brand is invited into a consumer’s mobile world. However to gain entry (and to remain relevant enough to stay there) a brand must continue to deliver against one or more of the core consumer needs that mobile is particularly well suited to addressing: Experience, Independence, Convenience, Relevance and Reassurance. (Key finding from TNS Mobile Life study) 6 tnsglobal.com © 2012 TNS 7

5. Introduction: the mobile imperative for CMOs. Achieving it requires an Simon Sproule, integrated response from across their CVP Global Marketing Communications, Nissan businesses, embracing mobile as a key “What mobile represents to us element of their business model rather now is a business imperative. It’s than simply another marketing channel. no longer a kind of, ‘oh we should do something’, now it’s ‘we must In this report we look at the response of do something.’ And now it must CMOs worldwide to the challenges and be part of how we go to market opportunities that mobile represents. and how we execute all of our Our conversations with them reveal a communications.” strong sense of opportunity, an urgent need for experimentation and learning and an inherent optimism regarding The TNS Mobile Life study for 2012 mobile’s potential. They also show how proves that the home-screens of mobile the demands of mobile are broadening devices are becoming one of the most the roles of CMOs themselves. For valuable pieces of real estate in the leading brands, crafting a compelling battle for consumer hearts, minds and mobile proposition is rapidly becoming share of wallet. The stakes are high, a business imperative rather than simply given mobile’s potential to undermine a marketing challenge. Focus is already traditional sources of brand and retailer shifting from stand-alone marketing power and the competitive advantage solutions and native apps to the for those able to leverage it effectively. optimisation of core web platforms, Crafting a brand proposition that can and the role of mobile as a broader earn them a regular role on consumers’ business enabler. phones is rapidly becoming a priority 8 tnsglobal.com © 2012 TNS 9

7. 3 Overview: the game changer Tricia Nichols, Global Lead of Consumer Engagement, Media Strategy & Brand Partnerships, Gap “We see mobile as the future of our business. It’s a tool of convergence that not only helps us bring bricks and mortar and e-commerce closer together, it becomes a tool to connect consumers with our brand and stores in a deeper way, adding value to the Gap experience.” Across our CMO interviews, a number It’s early days – and there of key themes consistently emerge as to is still a long way to go how businesses are looking to develop For some businesses, mobile is already the mobile opportunity: seen as the number one digital channel Mobile is a step-change and touchpoint, but for many, delivery opportunity on mobile’s great promise remains a long way from being realised. Consumers More than another digital channel or may be giving mobile a central role device, there is universal agreement amongst CMOs that mobile is a genuine in their lives, but their experience of step-change opportunity for their brands’ mobile offerings is often one business. Mobile offers a direct, intimate of frustration. Businesses are in a connection with individuals, it can move learning phase when it comes to mobile. unbanked consumers out of the cash- However, the competitive nature of the only economy and into the mainstream, mobile space means they cannot afford and it enables brands that previously to wait to learn the lessons before rolling relied on retail distribution to connect out solutions. directly with customers. 12 tnsglobal.com © 2012 TNS 13

8. Overview: the game changer Watching and waiting are. Meeting this expectation requires is not an option new thinking throughout the business – not just in engaging consumers, Experimentation is central to our but in delivering every element of the CMOs’ approach to mobile, with a firm customer experience. emphasis on ‘learning by doing’ across marketing and business operations. In the following chapters we will look at This confirms that the mobile how these themes are shaping CMOs’ opportunity is in its early days – but also response to mobile throughout the path testifies to the sense of urgency that to purchase, from reach and engagement CMOs feel. Consumers are demanding (where mobile is already a well- solutions and experiences that fit their established feature of brand marketing own fast-evolving mobile habits. CMOs plans) to shopper marketing, mobile have decided that the best approach is payments, distribution relationships and to trial mobile solutions and explore in loyalty, where the capacity of mobile is real-time what they can deliver for their only beginning to be explored. business and its customers. Mobile is far more than Paul Berney, CMO & Managing Director EMEA a marketing channel Mobile Marketing Association. Like online before it, mobile started life “Understanding how far and how in the marketing department before fast to deploy a mobile strategy is filtering upstream to innovation and one of the biggest challenges facing product development, and downstream all brands today. The reality is that to shopper marketing, retailing, consumer adoption of the mobile relationship management and loyalty. channel is moving at a faster pace The big difference is the speed at which than marketing activity and brands this broadening of its role has taken need to move to close this gap”. place. Consumers expect the brands in their lives to be as mobile-ready as they 14 tnsglobal.com © 2012 TNS 15

9. 4 The rich interactive experience of today’s mobile technologies is empowering millions and enabling more highly-personalised experience of the real world. This makes mobile of crucial importance to businesses across Changing face every category. So understanding consumer mobile behaviour and of the mobile brand formulating a mobile strategy is now a business imperative. Significant opportunities become available when a brand is ‘invited’ into a consumer’s mobile world. However to gain entry, and to remain relevant enough to stay there, a brand must continue to deliver against one or more of the core consumer needs TNS MobileLife has identified: Experience, Independence, Convenience, Relevance and Reassurance. (Key finding from TNS Mobile Life study) 16 tnsglobal.com © 2012 TNS 17

10. Changing face of the mobile brand General marketing, specialist agencies Simon Sproule, Many CMOs see the interplay of mobile CVP Global Marketing Communications, Nissan and TV media consumption as evidence “Mobile has emerged faster than of the need to integrate mobile activity most marketers believed possible. with broader brand campaigns and Frankly, I think we’re now in manage the mobile channel from catch-up mode because it has within a central marketing function. moved faster than many brands However, the fast-evolving nature of expected it to.” mobile technology and the challenges of developing creative for small screens have ensured continuing demand Mobile’s role in brand marketing is well for specialist mobile agencies. These established but already evolving. CMOs specialists have thus far resisted a trend treat mobile as a natural extension of amongst CMOs to trim digital agency brand marketing campaigns, albeit rosters and consolidate work into full- one often currently executed through service shops. specialist agencies. However, larger Such specialist knowledge remains strategic questions are starting to sought-after largely because of the emerge about the most effective mobile executional challenges that mobile poses: platforms for brands. A debate is a smaller creative canvas, uncertain reach brewing over the relative importance of for mobile video, and the difficulties of stand-alone apps and mobile-optimised adapting creative from other channels. websites, with many brands turning to However, a more fundamental question established social media platforms as an facing CMOs is the issue of which brand alternative to building an effective mobile platforms should be prioritised when it presence. comes to engaging consumers in the mobile space. 18 tnsglobal.com © 2012 TNS 19

11. Changing face of the mobile brand Branded apps versus optimised mobile web-optimised content. Few The device-deployed app still has those of Twitter, Facebook, Linkedin, for mobile-web marketers deny the reality of the potential. The ability to draw more Google Wallet, Foursquare, Pinterest branded app junk-yard, the long tail extensively on smartphones’ native and YouTube. Alex Schleifer, of the app stores, where thousands of capabilities such as location, video, General Manager, Media Lab, SAY Media carefully developed and well resourced photos and contacts offers a clear Tricia Nichols, apps go to die after enjoying less than route to deeper consumer engagement Global Lead of Consumer Engagement, Media “People’s behaviours are definitely and value. For the CMO though, apps Strategy & Brand Partnerships, Gap a thousand downloads each. Even the changing. We just feel it’s best must be aligned to a core brand idea most compelling branded app needs “We believe in an integrated to invest in the mobile browser in order to warrant multinational scale awareness in order to reach critical approach. So the marriage of first, and the app stores later. It’s investment. Brands with an obvious role mass – and many do not enjoy the mobile to other platforms is very, all-inclusive and mostly system on mobile devices or which have rich integrated marketing support required very powerful in our eyes.” agnostic. It also feels a little content available, may find themselves to achieve this. strange that we should go back to better-suited to an app-based approach. a model where everything needs For others, dedicated apps may play a The interplay of social and mobile Increasingly influential voices make the in particular, provides CMOs with a to be installed. The browser is a role in particular, integrated campaigns. case for the mobile browser as a more means of reaching mass audiences pretty perfect content delivery As a rule though, CMOs see apps as a effective and efficient platform than the instantaneously. The Mobile Life study platform. Apps have a place, and need that requires proving rather than branded app. However, the challenge of points to the inseparable nature of they’ve completely changed the an assumed solution from the outset. optimising existing websites represents mobile and social worldwide – and the software landscape, we just don’t a significant investment in time and Platform partnerships and the age perception amongst CMOs is that mobile believe everything should be budget. Responsive web design, which of mobile ‘+’ social has treated social to a course of steroids. an app.”1 detects the type of device used to access Platform partnerships are emerging as 40% 1 as quoted by Justin Ellis, Niemanlab.org, 10 July a website and serves a mobile version a major area of focus for CMOs – and 2012 Moving Mobile – ReadWriteWeb choose responsive design over native iPhone app when appropriate, is still in the early a solution that can provide breathing stages of development for most. Smaller space whilst owned digital platforms Only recently seen as ‘must-haves’, and nimbler businesses have been able are optimised for mobile. Many refer to apps are increasingly viewed by CMOs to take a more aggressive position in the potential for improving reach in the of consumers with mobile Internet needing to earn their place alongside this area. mobile space through partnering with access check their social networking pre-existing mobile platforms such as sites via their mobile every day. 20 tnsglobal.com © 2012 TNS 21

12. Changing face of the mobile brand The focus on social ‘+’ mobile is strongest What does a mobilised consumer marketers aware of the potential risk amongst brands targeting younger Jim Gurke, experience look like? of undermining brands in the process). CMO, Getty Images consumer segments, which over-index In addition to the challenges of However, our interviewees attested heavily on both social and mobile “Mobile has forced many marketers executing within the mobile space, to the value of tactical approaches, activity. Brand marketers looking to to consider social more as CMOs express a need for greater using the technology to deliver more reach and engage this group speak a legitimate and effective channel.” understanding of the drivers behind personalised customer experiences of very deliberate attempts to avoid consumers’ relationships with their rather than simply to offer bargains. separating mobile and social, due to mobiles and the right brand expression the risk of creating inconsistency and for this smaller canvas. The ability to Mobile brand marketing missed opportunities. leverage mobile’s capacity for more in the balance personalised and resonant brand Mobile has firmly established itself as Social ‘+’ mobile of course, represents far experiences depends on a deeper a brand marketing channel in its own more than a handy solution to mobile understanding of what people actually right. However, CMOs demand that it marketing’s current dilemmas or a want from their phone – and from take on a broader role for brands. Their means of increasing reach over branded the platforms available on it. This is an attention is shifting from branded apps, apps. The marriage of social media with area where rapid learning is required, mobile display ads and mobile search mobile’s always-on, real-time capabilities with even potential partners such as to optimising core digital platforms and creates a wealth of new possibilities when Facebook playing catch-up when it integrating mobile with social media for it comes to brand-consumer relationships. comes to understanding how best to mass-reach personalised experiences. operate in the mobile space. Selective investment in branded apps still has a role to play but far from being Greater insight is demanded by those a starting point for mobile marketing, grappling with a strategy for location- these are now considered valuable only based services. For now, location-based when they align clearly with a broader messaging remains primarily focused brand or business proposition. on discounts and offers (with many 22 tnsglobal.com © 2012 TNS 23

13. Amazon price checker Amazon price checker encourages consumers to visit bricks and mortar stores to try products before finding them cheaper on Amazon and buying on their mobile. Consumers scan the barcode, take a photo or use voice to find the Amazon price The North Face for the product they are looking at in- Outdoor clothing brand The North Face adds value through a trail finding app store. Amazon encourages shoppers which provides a mobile trail guide and the ability to record and share the to share prices they find to support experience on the go. Users can search for hikes by proximity, activity type, the company in ensuring they can’t distance and user ratings. They can then record and share their journey and be beaten on price. add tips and photos. 24 tnsglobal.com © 2012 TNS 25

14. 5 Today’s consumers can respond to a TV ad without interrupting their viewing experience, conducting product research from their sofa using their mobile; they can search for and redeem vouchers and offers using their phone, receive location-based, relevant deals that trigger purchase behaviour, and compare prices and product reviews in-store. (Key finding from TNS Mobile Life study) Mobilising the path to purchase 26 tnsglobal.com © 2012 TNS 27

15. Mobilising the path to purchase revolution, the introduction of mobile Mike Hogan, significantly increases the capability Chief Marketing Officer, GameStop of digital to impact shopper journeys, “It’s not like there’s a mobile and opens up the possibility of direct consumer and a non-mobile communication with customers in ways consumer. It’s the same person not possible before. we’re reaching but at different points in time. So the question Existing web analytics platforms already is where are they in the path to provide CMOs with some insight as to purchase and what are their needs when mobile is used in the purchase at that moment?” journey – and how this correlates to different need states. However, more work is needed to map and understand The mobile phone is the most disruptive these correlations, and enable businesses force yet unleashed on the once relatively to respond accordingly. Businesses with linear path to purchase. Its always-on online and bricks and mortar stores, for availability is transforming predictable example, often see mobile account for consumer journeys into dizzying snakes- a high share of visits but a low share of and-ladder routines. At any point and in sales. New methods of measurement any situation, consumers can use digital may be required to help identify the media to leap forward rapidly in the points in the purchase journey at which journey or re-consider and divert. For mobile is most influential, and to identify FMCG brands, which remained relatively how mobile is driving purchases that are untouched by the PC-based Internet completed through other channels. 28 tnsglobal.com © 2012 TNS 29

16. Mobilising the path to purchase apps, instigating conversion through the Joanna Wang, mobile itself, online via PC, or in-store. CMO, China, L’Oreal “Mobile will have transformative As we move along the path to purchase, effect on the path to purchase for the value of mobile search becomes the beauty category. Because the apparent, particularly for brands with category is often a consulting service, restricted distribution and low visibility it’s not like a simple ‘easy know-how’ on shelves. The precision afforded In-store solutions: category. You need service; you need by location-based mobile messaging mobile at the business end consultation – for example beauty provides a bridge for brands to overcome Consumers want to take the consultants in the retail environment. traditional drawbacks by communicating risk out of decision-making by Mobile can help us replicate that with consumers directly and mapping personal, consultative experience.” assuring themselves of the value a route to their products. of the products they buy using However, location-based messaging also trusted and often independent, The pre-store phase creates dilemmas for CMOs, as illustrated sources. In developed markets, Mobile’s influence in the pre-store phase by mobile couponing, a tactic given 34% of consumers who use their of the path to purchase encompasses new life by the platform. Whilst seen by mobile in the path to purchase lifestyle apps with demand-generation some as an ideal technique for driving do so to compare prices and features, location-based search that can conversions, couponing is viewed by 18% scan product barcodes guide shoppers to products which have others in less beneficial terms: to get more information. limited distribution or visibility, and mobile a race to the bottom that can undermine In emerging markets, with couponing, an area in which CMOs see brands and raises serious questions typically lower smartphone significant opportunity but also potential over incrementality. For many brands, penetration, the numbers are brand risks. more nuanced CRM-based solutions are smaller but still significant: Food and drink brands have explored the required that move away from broadcast 25% of those who use their early stages of the purchase journey with couponing and tailor messages according phone during the path to considerable effect to generate demand to loyalty scheme information, customer purchase do so to compare prices. and add value through lifestyle and recipe profiles and purchase history. (Key finding from TNS Mobile Life study) 30 tnsglobal.com © 2012 TNS 31

17. Mobilising the path to purchase and mortar retailers seeking to leverage and price information, and making it The issues involved are sometimes Tricia Nichols, control of the retail environment and easier and faster for consumers to close technical, sometimes tactical. Shopper Global Lead of Consumer Engagement, frustration can result from slow in-store Media Strategy & Brand Partnerships, Gap non-retail owning brands targeting a deal. a direct relationship with consumers connectivity resulting in long waits for “The mobile device is the dominant in-store. In a potentially competitive Thus far, the needs of both brands and additional, internet-served product computation device…ultimately situation, several CMOs speak of end- consumers in this area remain largely information, or from that information a computer in everyone’s pocket. to-end solutions, with mobile following unmet – and CMOs freely admit that arriving in a format that is not effectively To unlock of all this content as up initial geo-targeting with geo-fencing the correct solutions in terms of mobile optimised for the customer’s mobile part of the consumer experience is capabilities that trigger automatic mobile platforms and overall strategy are far device. Equally though, it can result from invaluable. Bringing the consumer messaging when shoppers approach from clear; it is indeed early days. QR brands and retailers serving information closer to purchase is the nirvana.” the store, and shelf-level engagement codes have been frequently discussed that does not relate well enough to that guides them towards a completed as a means of directing consumers to in-store shopper needs: lifestyle content In-store solutions: purchase. brand-provided product information. rather than deal or price information, for mobile at the business end However QR codes have not enjoyed example. Ensuring that a mobile strategy Once consumers enter the store Mike Hornigold, widespread enough adoption either on can adapt to deliver the right information environment, the focus shifts from brand Director of Emerging Shopper the part of brands or consumers – and at the right time and in the right place is Technologies, The Coca-Cola Company marketing and demand generation to their moment now appears to have a key objective for CMOs. improving shopper experiences, and “The shopper is looking for two passed. Image-scan camera technologies reducing in-store friction. It is in this things, save me time or save me and personalised push-based solutions environment that CMOs most stress the money. Those are probably the Mike Hornigold, such as Blippar now look likely to requirement to align business operations two main triggers for them.” Director of Emerging Shopper supersede them. Technologies, The Coca-Cola Company as a whole around a mobile offering. “I think what we are discovering is And it is in this environment that the Shoppers of the digital and mobile age Key to any in-store mobile solution is that that we are in very early stages of strongest emphasis is found on the need are accustomed to having the right it should reduce rather than increase the the game. And with that we are to learn by doing – and to do so quickly. information available at the right time. friction involved in a shopper completing actually probably experiencing more Providing it has become a major focus of a purchase. However, many CMOs are shopper frustration than shopper Those handing mobile a key role in the CMO plans for mobile, with the focus on acutely aware of shopper frustration with benefit at this point in time.” in-store environment include both bricks delivering reassurance through product their mobile experiences. 32 tnsglobal.com © 2012 TNS 33

18. Mobilising the path to purchase One school of solutions takes a simpler, From employee-focused solutions to the and in a sense more traditional, approach need to tackle issues such as in-store by leveraging mobile technology to connectivity, the demands of shopper empower and inform in-store assistants marketing require an integrated response and sales teams. The approach here is from across business operations. on increasing employees’ capabilities in They also necessitate a willingness to customer service and trusting them as experiment. When seeking to create the primary channel when it comes to new in-store experiences, CMOs have how best to sell to customers. Several consistently opted for a test-learn- CMOs report significant improvements scale approach, turning pilot stores Gap socialises the in shopper satisfaction and time spent into petri dishes for a new form of in-store experience completing a purchase as a result of shopper interaction. Brands such as Gap has previously partnered with arming staff with mobiles and tablets, Coca-Cola and L’Oreal must do so in Roqbot, which enables any venue to enabling them to check inventory and association with retail partners, whilst crowd-source the music being played. product information and credibly answer store-owning brands have more control customer queries on areas such as over their own experimentation. With competitor pricing. such control comes challenges however, as the difficulties and costs of running Eliot Van Buskirk, Tricia Nichols, concurrent tests can restrict the all- Evolver.FM, Roqbot Crowdsources In-Store Global Lead of Consumer Engagement, important speed of learning. Media Strategy & Brand Partnerships, Gap “The system changes the music based on the time of day, the musical taste of “It’s really rather simple – ultimately shoppers who check in to the store using the Roqbot iPhone or Android app, it’s about enabling smarter, more and customers’ song requests. Every person who checks in using the Roqbot informed employees and smarter, app alters the music programming with their Facebook Likes and Profile listings, happier customers.” Last.fm scrobbles, Pandora bookmarks, and/or the music on their smartphone.” 34 tnsglobal.com © 2012 TNS 35

19. 6 The TNS Mobile Life study for 2012 reveals that that 45 percent the single most important driver of this behaviour. And it is on of the world’s phone owners this consumer need that many are either interested in making of our interviewees businesses payments using their phone or are looking to capitalise. doing so already. Convenience is (Key finding from TNS Mobile Life study) A new way to pay 36 tnsglobal.com © 2012 TNS 37

20. A new way to pay Mobile payments provide CMOs with despite alternative solutions from the several avenues to drive growth for likes of PayPal, Square, Facebook, Visa, their business, with three in particular Apple and American Express. Businesses emerging from our interview: as a report positive signs, including higher- differentiator within developed markets, than-expected interaction rates, but in as a means of increasing the accessibility such early days there is a consistent sense of services to new audiences, and as of ‘not knowing what good looks like’ an opportunity for brands previously just yet. dependent on third-party retailers to open a direct commercial relationship The need for in-store training and with their consumers. communications to support the mobile payment offer is becoming increasingly Experimentation is key to exploring the clear. The smartest mobile payment mobile payments opportunity for brands. platform in the world can only deliver With current usage levels for mobile a positive customer experience when it payments still low, external research and is clearly communicated to customers insights are not readily available and ‘best and supported by employees with a practice’ remains a long way off. Brands full understanding of the solution. have decided that the only viable solution Integration with business operations is is to launch services first, ask questions therefore essential to success. later, and then tailor the services based on the results that their experimental Mobile payments represent a global offerings deliver. opportunity – and for multinational brands, extending access to products Amongst our interviewees Google Wallet to those without conventional emerged as one of the primary testing banking facilities is a major part of vehicles for in-store mobile payments, that opportunity. Taking full advantage 38 tnsglobal.com © 2012 TNS 39

21. A new way to pay requires trials that reach beyond conventional smartphone platforms and embrace mechanisms such as WAP, SMS My Coke and the USSD messaging platform used Rewards in many emerging markets. The unbanked represent the single largest My Coke Rewards shows how opportunity for growth for many brands that have been dependent multinationals; however, activating them on retailers can leverage mobile to through mobile payments and mobile create direct relationships with their banking is a long-term goal rather customers. It allows consumers to than a quick win. GSMA initiatives to earn points at checkout and then extend access to mobile finance services redeem these points in-store as an in partnership with operators and alternative to paying using credit banks could have a key role to play of debit cards. It’s a way for the in developing this opportunity. shopper to save time and money, and for Coke to enjoy more of The growing intersection of social and a direct relationship with them. mobile also has a role to play in the mobile payment space. CMOs talk of preparing for socially enabled mobile wallets, which could enable sharing of coupons and retail promotions. As social becomes more deeply embedded in mobile commerce, CMOs expect to glean another valuable layer of intelligence in terms of shopper behaviours. Key finding from TNS Mobile Life study: 40 tnsglobal.com © 2012 TNS 41

22. A new way to pay Smartphone ownership is at the point purchase journey to a greater extent of exploding across a broad range of than has been seen in more developed emerging markets as consumers’ ability regions. Brands that act now to develop to pay now exceeds the average handset effective mobile strategies in emerging cost. These handsets will accelerate markets could gain a significant first existing mobile trends in these markets mover advantage. and may well disrupt the traditional (Key finding from TNS Mobile Life study) The smart phone tipping point China Price of original iPhone Price of HTC Desire 301 308 Price of BlackBerry Torch 287 Huawei handset Willing to pay for next phone In-market price of phones 42 tnsglobal.com © 2012 TNS 43

23. 7 Leveraging mobile loyalty A My Starbuck Rewards Starbucks has been using mobile as a central component of its My Starbucks Rewards scheme for some time. In addition to mobile payments, the app works hard to drive loyalty by housing members’ rewards information, points and coupons as well as a personalised Drinks Builder. 44 tnsglobal.com © 2012 TNS 45

24. Leveraging mobile loyalty The concept of a personalised, potentially Save time + Save Money + Reduce social, mobile wallet highlights the Angst (friction) = ‘happy’ and more growing importance of mobile-powered loyal customers loyalty and CRM schemes to CMOs’ overall mobile visions. Extended, mobile- So loyalty schemes are seen as the powered loyalty schemes are emerging key to unlocking mobile’s potential as the anchor for many different strands as a broader business enabler. Mobile of mobile activity, ensuring that any loyalty provides new forms of direct-to- communication through consumers’ customer relationships and an effective most personal device is appropriate, framework for delivering targeted offers relevant and meaningful. and promotions that can avoid the risk of cannibalising sales. It’s mobile loyalty marketing that could well drive uptake of newer technologies like NFC, arguably able to have greater Mike Hogan, impact than the current more top-of- Chief Marketing Officer, GameStop mind partnership many expect between Apple’s mobile NFC and mobile payments. And Apple’s “The holy grail for us is that a wallet solution Passbook will no doubt drive greater customer can walk into our store adoption by brands of time and location and we know who they are, Apple’s mobile wallet solution (Passbook) provides further evidence of the targeting capabilities (See more details in probably based upon their being growing significance of mobile loyalty schemes and their appeal to shoppers. It the breakout below/opposite.) a loyalty programme member, and brings together ticketing, coupons and loyalty program information in one place, recognise them through their mobile allowing users to scan and redeem them at the point of sale. It’s also time, date and And it’s important to remember that device. We can then use their location-specific, surfacing the right program details or information and coupons more personalised content and services mobile as the vehicle by which we at the right time. That Apple has initially opted for a loyalty-based solution rather via mobile, faster and more frictionless communicate with them in a highly than a payments-focused mobile wallet, demonstrates the value the company payments mobile payment experiences personalised way.” sees in ‘mobile-enhanced loyalty’ prior to its fully-fledged mobile wallet platform. play well to the equation that often leads to increased loyalty and commitment: 46 tnsglobal.com © 2012 TNS 47

25. 8 Executive summary Our CMOs express considerable Although CMOs consistently caution optimism about the role that mobile that mobile business models are in their will play in the future growth of their early days, key elements of a strategy businesses. There is a strong sense are beginning to emerge. Integration however, that businesses are only at of marketing with broader business the start of a long road – and that they operations, particularly employees and must be prepared to travel it quickly. the in-store environment, is essential The adoption of mobile services by to success. Mobile payments provide consumers has been extremely rapid – a vital growth opportunity as a means and the expectation is that businesses of differentiating brands in developed should mobilise their offerings equally markets and increasing access to quickly. products in emerging ones. And new forms of mobile loyalty scheme have a A test-learn-scale approach is central to vital role to play in creating a tailored, CMOs’ responses, with pilot schemes personal experience, delivering relevant, establishing the potential for mobile to precise messaging, and providing a increase engagement and reduce friction natural focal point for the many different throughout the path to purchase. These strands of a mobile strategy. pilots are providing valuable insight as to how consumers will respond to mobile services that would have been unimaginable a few short years ago. 48 tnsglobal.com © 2012 TNS 49

26. 9 About this report This report is based on one-to-one interviews with Chief Marketing Officers (CMOs) from a range of About international organisations the author Simon Falconer About Mobile Life As Global Platform Director Mobile Life is an annual investigation for TNS Connect, Simon leads into the behaviours, motivations technology platform innovation and priorities of the world’s mobile and development for TNS’ Global phone users. Now in its seventh practices which help clients drive growth through market entry, year, Mobile Life is the most innovation, brand switching and comprehensive view of how the customer experience management. world’s consumers are using their He joined TNS in June 2011. phones today and the opportunities this presents for brands. With 12 years’ experience in B2B and product marketing roles for digital businesses and business Based on 48,000 conversations in functions, Simon’s expertise is 58 countries, Mobile Life is designed centred on putting technology to to capture the entire population of work for marketing and insight/ mobile users in each market. information consultancy. Prior to TNS he was with Microsoft as Head of Business Planning for the EMEA Online Services division. 50 tnsglobal.com © 2012 TNS 51

27. About this report About TNS TNS advises clients on specific growth You may strategies around new market entry, be interested in... innovation, brand switching and How mobile raises the bar for stakeholder management, based brand communications > on long-established expertise and The impact of digital on growth market-leading solutions. With a strategies > presence in over 80 countries, TNS Winners and losers on the digital has more conversations with the path to purchase > world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. Get in touch TNS is part of Kantar, one of the If you would like to talk to us about world’s largest insight, information and anything you have read in this report, consultancy groups. please get in touch via enquiries@tnsglobal.com Please visit www.tnsglobal.com for more or via Twitter @tns_global information. 52 tnsglobal.com © 2012 TNS 53

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