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Executive Summary There is no doubt that any marketer determined to solve for mobile marketing is familiar with the challenges that come with securing investment to drive mobile initiatives forward. Whether it is the organizational pivot to ‘mobile-first’ or the battle to secure budget dollars and resources, it can be difficult for marketers to enroll senior leadership and capitalize on the mobile opportunity without the ability to definitively demonstrate ROI and financial business outcomes. Of course, this is a reasonable concern and pain point, and, if it sounds familiar to you, this POV paper will renew your determination. Unfortunately, the state of mobile marketing for far too long has been “nice to have.” The topline outcomes we outline here make it “must have immediately” for the C-Suite. The last 12 months have seen some of the biggest business outcome ‘wins’ for Fortune 500 brands that have been documented. What makes these wins so special is that they can all be directly attributed to those brands’ commitment to winning in mobile marketing. Thanks to the combination of tried-and-true mobile strategy and tactics, and defined ROI calculation best practices, the questions and concerns associated with mobile marketing have now been answered by concrete, financial business outcomes.
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These wins are measured in real ‘adult’ numbers such as: n o p u co Coupons for Apple’s Passbook and Google Wallet that generated almost
$1 million in three weeks, with one third of all saved coupons being redeemed in-store.
An SMS-powered subscriber acquisition flow, enhanced with mobile wallet that drove
$2.2 million in less than three months.
Activating marketing touch points with mobile CTAs that generated more than $7 million and acquired 300,000 new mobile subscribers in three days.
This POV article examines three actual mobile marketing success stories. While the companies, campaigns, strategies and measurable metrics may differ, you will find that these three retail brands have quite a lot in common.
All three retailers... • Were new to mobile marketing and saw seven figure business outcomes in less than 12 months. • Crafted a mobile marketing strategy to address their unique business objectives, but leveraged similar and proven tactics like mobile wallet, SMS and mobile web. • Are Fortune 500 brands that employ Vibes as their mobile marketing partner. These brands are trailblazing mobile marketing pioneers who have, in their respective industries, seized market share by embracing a mobile-first approach to customer relationship management.
*Retailers A, B and C are fictitious brands created by Vibes to represent actual clients and illustrate and communicate actual results achieved, while protecting the identity of those clients
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Success Story 1 | Combining mobile messaging and mobile wallet to drive $10 million a year in mobile attributed revenue.
With thousands of locations across North America, Retailer A is one of the world’s most recognizable retail brands. The C-Suite at Retailer A challenged the marketing team to move beyond email before engagement diminished. Retailer A knew it needed a mobile strategy and a sizable, addressable audience with which to engage. Retailer A tapped Vibes as its mobile marketing partner to craft a mobile
strategy to drive deeper customer engagement and acquisition, optimize existing programming and uncover new revenue streams with its existing customers. Tapping proven best practices gleaned from working with leading retailers, Vibes and Retailer A activated email, mobile web, instore and other marketing channels with mobile CTAs. All CTAs were geared toward driving opt-in to
Retailer A’s mobile database. Kicking off in the summer of 2014, all new mobile database subscribers were delivered a mobile wallet coupon via SMS, offering a discount off spend threshold upon signing up.
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What happened
?
In a little less than three months, Retailer A has driven more than $2.3 million in mobile attributed revenue. With an average of $10 per opt-in. Retailer A expects to see this program generate more than $10 million in mobile attributed revenue annually.
Measuring mobile business outcomes SMS drives mCommerce revenue Currently, Retailer A has more than 250,000 subscribers in its mobile database. Retailer A’s current strategy is built around leveraging its mobile database to drive subscribers to its mCommerce site. We have found that customers who are opted into Retailer A’s mobile database conduct 32.4 orders per 1000 visitors – which is six times the number of orders conducted by unsubscribed mobile web visitors.
This demonstrates the incredible worth engaged mobile subscribers have on a business, as they are easily the most valuable visitors a brand can drive to its mCommerce site. Mobile wallet drives in-store revenue Retailer A’s subscriber acquisition strategy has led to consistent growth in its mobile database, which, in turn, has driven impressive mobile attributed revenue annually.
Retailer A has already surpassed its year-end mobile database acquisition goal by 125 percent, and, at $10 per opt-in, the company has already generated more than $2.3 million in-store. When Retailer A hits its projected goal of one million mobile subscribers, within the next 10 months, the mobile database itself will be worth more than $10 million in mobile attributed revenue annually.
Summary Retailer A has seen $2.3 million in mobile attributed revenue in less than three months, surpassing its year-end mobile database acquisition goal by 125 percent, and is recognizing a projected $10 million in mobile attributed revenue, annually.
What is mobile attributed revenue? Mobile Attributed Revenue (MAR) is revenue tracked through unique coupon codes which were only available on mobile, to mobile subscribers. MAR is revenue that is typically derived from a subscriber opting in or signing up, getting an offer, and redeeming that offer in store with a unique coupon code, which is critical to accurate ROI analysis. Driving Real Business Outcomes | 4
Success Story 2 | Activating mobile web with mobile wallet to drive $15 million a year in mobile attributed revenue.
One of the nation’s leading specialty retail and service providers with hundreds of locations across the United States worked with Vibes to build a holistic mobile marketing strategy for its brand. Anticipating more than 50 percent of web visitors coming to its website via mobile by 2015, Retailer B
seeked to leverage mobile to drive deeper customer relationships and new revenue from an increasingly digital-first customer base, hungry for mobile solutions. Having seen mobile wallet’s ability to help retailers capitalize on their customers’ shift to mobile, Vibes worked with Retailer B to mobilize
its coupons for Apple’s Passbook and Google Wallet. Now with mobile wallet, customers can instantly add coupons to their Passbook or Google Wallet apps directly from Retailer B’s mobile website.
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What happened
?
The mobilization of the offers allowed customers to save them to Apple Passbook and Google Wallet. To make those offers easily available to customers, they were hosted on Retailer B’s mobile website, where customers could instantly ‘tap to save’ all mobilized offers to their mobile wallet in just seconds. To measure impact and ROI, Vibes and Retailer B analyzed the performance of a control group of offers that were optimized with mobile wallet. By comparing revenue before the exposure to after, they were able to show that adding mobile wallet generated an incremental $250,000 per week. In less than three months, Retailer B has seen more than $2 million in incremental, mobileattributed revenue from its investment in mobile web and mobile wallet.
Measuring mobile business outcomes Mobile Web + Mobile Wallet drove immediate results The total value of mobile wallet is estimated at $15 million annually. The early and immediate results Retailer B has seen with just mobile web
and mobile wallet has encouraged the company to double down on its mobile marketing activities. Mobile wallet activations through email, SMS and direct mail are all underway, leading
Retailer B to believe these early successes and multi-million dollar outcomes in mobile marketing are just the beginning.
Summary Retailer B received a $250,000 lift per week, seeing more than $2 million in incremental, mobile attributed revenue in three months and a projected $15 million in mobile attributed revenue, annually.
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Success Story 3 | Building an SMS mobile database worth $14 million in mobile attributed revenue, annually.
With thousands of locations worldwide, Retailer C is one of the world’s most recognizable retail apparel brands. Although Retailer C had an effective mobile content strategy in place, it needed a scalable mobile audience with whom to engage.
Retailer C tapped Vibes as its mobile marketing partner to help the company grow its mobile database, innovate its offers and incentive strategy to drive deeper engagement with its customers.
To help Retailer C grow their addressable mobile audience, Vibes worked with them to increase the placement and visibility of mobile CTAs, driving mobile database subscriber opt-ins through direct mail, email, in-store and more.
What happened
?
Retailer C ran an aggressive double-down campaign over a holiday weekend. The big incentive the company provided was a coupon offering a same-day discount off spend threshold that was delivered as a code via SMS. As a result of these efforts, Retailer C was able to grow its mobile database by more than 300,000 subscribers in just three days. This tremendous database growth drove $7.2 million in mobile-attributed revenue. Retailer C is currently anticipating $14 million in annual value from its mobile database.
Measuring mobile business outcomes Huge database growth with one campagin Retailer C’s aggressive double down campaign drove more than 300,000 subscribers to opt-in in three days. A staggering 85 percent of those 300,000 new subscribers redeemed the aforementioned discount off spend threshold coupon that was delivered via SMS. This resulted in a minimum of $7.2 million in mobile attributed revenue.
And on a per-subscriber basis, it came out to an impressive $24 per new SMS subscriber for this particular campaign. Monetizing the mobile database Retailer C was so encouraged by the results of this program that it has continued its double-down efforts and has since grown its mobile database to more than 1,000,000 subscribers. It is here that the final value of $14 million is calculated for
Retailer C’s mobile database, and as the database grows, so does the revenue opportunity. Keep in mind that this is only one particular business outcome from a specific SMS-driven program that was conservatively estimated. As Retailer C continues to build out its mobile strategy for this next year, the annual revenue it sees from mobile marketing has nowhere to go but up in 2015 — and beyond.
Summary Retailer C saw $7.2 million in mobile attributed revenue and drove more than 300,000 new mobile database subscribers in three days and raised its revenue to $14 million in mobile database value, annually.
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Conclusion What makes the mobile marketing pioneers spotlighted in this article noteworthy? These leading brands placed an educated bet on mobile marketing and stuck with it. They stayed the course, removed organizational silos and worked hand-in-hand with Vibes to launch mobile marketing programs that were strategic for their businesses. As a result, they were able to examine the data from their programs and reveal the true impact mobile marketing had on their businesses.
In blazing the mobile marketing trail, these pioneers recognized the impact of working with the right mobile marketing partner to maximize their investment in the channel and drove serious, mobile-attributed results for their brand. In fact, in a majority of these mobile marketing success stories, these companies discovered that their mobile marketing programs significantly outperformed their prior highest-performing channels. Keeping the common themes found across these mobile marketing
success stories in mind, a critical takeaway to remember is that success breeds investment, and the cycles in mobile marketing have proven to be short — significantly shorter than the cycles associated with other marketing channels. With your C-Suite always looking for quick, winning moves to place bets on, adding more than 300,000 subscribers and driving more than $7 million in a three-day period are certainly the kind of attention-grabbers an executive team can support.
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Given all this the next questions marketers often ask are “Can I do this? And if so, how?” Our answer to this question is a resounding “Yes.” Here are a few things to consider:
1 The success these first mobile marketing pioneers have built is not unique to these companies alone: In fact, it can be applied to your business. If you have tried mobile and it did not work for you – it is worth another look – the channel has evolved to monetization.
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3 Success does not require an expensive consulting project: Instead, your partner can serve as a mobile “personal trainer,” dedicated to getting you on the right path and doing the right things in mobile marketing. Get “mobile fit.”
In the interest of speed and efficiency, do not go it alone: Enlist an expert partner who understands the mobile marketing space, as well as your company’s business objectives and desired outcomes. Until now, mobile has been underfunded and, as a result, understaffed. This has led to a shortage of talented mobile practitioners. They are hard to find, hire and retain as a brand, when they haven’t tasted success. A partner staffed with seasoned mobile vets (they do exist) is invaluable.
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5 Do something: No matter what, we implore you to take action. Do not simply sit back and do nothing. Getting started now is the most important step. There is no doubt your competitors are mapping out their mobile strategy for 2015. The only way to keep your brand ahead is to be ahead.
4 There is no shortage of internal objections and competition for budget: The right mobile marketing partner is invaluable in helping overcome internal objections and hesitation with creative pricing terms and pilot/ POC tests. At the same time, remember that underinvesting in spend, effort and duration will limit the performance and mobile marketing ROI you are able to deliver.
We hope the strategic efforts and business outcomes our mobile marketing pioneers have demonstrated inspire you to act and build winning business outcomes of your own. The path has been cleared and the results have been proven. Vibes would love to accompany your brand on its mobile marketing journey. Contact us today.
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Build your mobile database Leverage the resources below to build your plan get started with building your mobile database today!
This tool will show you how to use key marketing channels to effectively grow your mobile database of SMS subscribers. http://www.vibes.com/mobile-acquisition-calculator/
SMS Marketing Handbook:
The definite guide to growing your mobile database in a post-TCPA world Learn to accelerate the growth of your mobile database with the SMS Marketing Handbook. We will demonstrate the most effective ways to grow your mobile database and introduce our new Mobile Acquisition Calculator.
About Vibes We help marketers unlock new revenue by arming them with the technology and guidance they need to succeed in mobile marketing. Catapult, our Mobile Relationship Management (MRM) platform, enables marketers to easily manage all mobile communication channels including text messaging, push notifications, Apple’s Passbook, Google Wallet and mobile web campaigns — all from a single interface. Vibes has delivered more than five billion mobile experiences on behalf of customers that include Sears, Home Depot, Pep Boys, Verizon and Allstate. The Common Short Code Administration (CSCA) recognizes Vibes as one of only four Tier 1 aggregators with secure, direct connections to all the major carriers. To learn more about Vibes, visit www.vibes.com.
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