4-Step Guide to Mobile Engagement - presented by Forrester Research & Message Systems

CONFIDENTIAL

›Julie A. Ask, Vice President Analyst, Forrester Research›Steve Dille, Senior Vice President, Message Systems

The 4-Step Guide for Mobile Engagement

March 20, 2014

Creating An Effective Mobile Engagement StrategyJulie Ask, Vice PresidentMarch 20, 2014

USAA realized they had a customer experience problem in 2007

USAA mobile-enabled their services

"Many of our members proudly serving our country have limited time to handle personal financial matters. And those on ships at sea or in remote locations often use computers with low-speed Internet connections. Since mobile.usaa.com loads more quickly, it's an easy way for them to get what they need faster — which is the least we can do for them." — Joe Robles, CEO

More often than not, CX rolls up to marketing

› January 2014 “The Convergence Of Brand, Customer Experience, And Marketing”

Customer experience is an integral element of marketing

› January 2014 “The Convergence Of Brand, Customer Experience, And Marketing”

Agenda

› How is mobile impacting customer experiences?

› What is the impact of mobile on your business?

› What steps should you take to win in mobile moments?

Agenda

›How is mobile impacting customer experiences?

We are living in the “Age of the Customer”

Age of Information

Winning in the age of the customer first requires knowing who your customers are

Opt-In• Download an App

• Allow push notifications

• Opt in for messaging

UnderstandBuild Trust

LearnServe

UnderstandBetter

Be more relevant

Generate Deeper Insights

Build More Trust

Customer

Competing requires deep analytical insights – many from mobile exhaust

Is your firm leveraging customer generated data to help them easily discover your products and services?

Do you understand customer context well enough to help serve customers in their mobile moments?

Are you using customer purchase data to improve conversion rates in-store and online?

Are you collecting data from products to layer on services? Or give customers more control?

Traditional marketing and customer feedback only tells part of the story. Are you tapping into customer mobile data to understand what they really think?

Are you engaging customers in the right moment to drive the next purchase or brand engagement?

The Mobile Mind Shift

The expectation that I can get what I want in my immediate context

and moments of need

Companies

Processes

Products

Platforms

Mind Devices Applications

Mobile expectations are soaring

Companies

Processes

Products

Platforms

The mobile mind shift is just beginning

Companies

Processes

Products

Platforms

Mobile apps and sites will be ubiquitous

Companies

Processes

Products

Platforms

Mobile will drive the biggest re-engineering of firms since the Web

Agenda

›What is the impact of mobile on your business?

Flight

You need to serve customers in their moments along their journey

- 2 Weeks

- 2 Hours

Airline Example - Mobile Moments

+ 2 Weeks

+ 2 Days

+ 2 Hours

You need to win in these mobile moments.

- 2 Days

• Request upgrade

• Reserve seat

In marketing, those moments are:

›Loyalty Moments

›Manufactured Moments

›Borrowed Moments

Loyalty moments are the ones you own. Your ability to deliver in these moments will impact

your customer experience.

Loyalty Example: Starbucks

– 5 min

• Find nearest SBUX

• Check email, FB

• Check SBUX MSG

–30 secs

• Check balance

• Reload card

• Download song

Purchase

• Order latte

• Open Passbook

• Pay

+30 secs

• Push new balance

• Check email

• Receive receipt for reload

+ 5 min

• Push new balance

• Check loyalty points

• Listen to new song

In 2013, Starbucks announced that its mobile loyalty and payment app is used by 10 million customers with an average of 5 million weekly transactions at US stores.

Starbucks relies on loyalty moments in the US and borrows them in China

Manufactured Moment: P&G

• Sponsored content• Tens of millions plus

downloads• Offers utility• Promoted on Web site

Source: iPhone screenshot: Charmin mobile application

Borrowed Moment: ShunKouLiu

ShunKouLiu Restaurant App

There are many mobile moments that play a role in your customer experience

›Sales• Impulse purchase moments

• Influenced Sales Moments

• Guided selling moments

›Customer Service• “Moment of Truth” moments

• Product enhancement moments

• Problem-solving moments

On days of irregular operations, United gives passengers control with mobile

Connected products offer mobile moments

Use TipsProduct TipsGoal Advice

Problem-Solving Moments

Financial Services

• Bill due date?• Balance?• Paycheck

deposited?

Retail

• Return policy?• Offers?• Damaged product?

Insurance

• Coverage?• Payment due?• Co-pay?

Hospitality

• Reservation?• Room issues?• Points balance?

Travel

• Itinerary change?• Wrong seat?• Purchase help?

• Product recall?• Availability?• Allergic reactions?

Your Mobile Mind Shift

Your company must meet these new expectations

How are and should you be evolving your use of mobile?

2005-2011

“Shrink & Squeeze”

Squeezed experiences designed for the PC on to small screens.

“Winning in Mobile

Moments”Ethnographic research uncovers new needs on the go. Mobile proactively services customers based on their context.

2011-2013

“Mobile First”

Mobile enhanced other touchpoints. New services emerged.

Beyond

“Business Transformation”

Mobile transforms a business – not just a digital business.

Agenda

›What steps should you take to win in mobile moments?

IDEA guides mobile design

Identify mobile moments and their associated context

Customer Journey

Contextual OpportunitiesMobile Moments of Truth

• What are customer motivations?

• What does the customer need?

• What is their context?

Source: Forrester Research: “mHealth Illustrates New Business Opportunities.”

Know what context is important

Design the engagement

“Should I drive home?”

Design the engagement (cont.)

Engineer your platforms, processes, people and policies

Processes PolicyPlatformsPeople

Processes: remote monitoring

People

Talent

Helpwanted

• UX

• Machine learning

• Big data

• Developers

Culture

• MVP

• Agile development

• Multiple release cycles each year

• UX-driven design

• Colocated teams

Organization

Collaboration

• Cross-functional steering committees

• Best practices teams

• IDEA dev teams

Business

› Consumers will want to engage with you on an increasing number of devices.

› Apps demand that enterprises build a web services layer and APIs to access data and functionality.

› Your physical and digital worlds are colliding or complementing each other — understand the implications.

Source: October 18, 2013, “Mobile Needs A Four-Tier Engagement Platform” Forrester report

Platforms: new engagement model

Policy: Prioritize CX and UX

Source: Anjuke

Analyze results to monitor performance and improve business outcomes

• Conversion rates were strangely low in the evenings – their busiest time

• Anjuke conduct A/B testing

• Learned that the best listings were no longer available in the evenings because the spending caps set by agents had been reached

• They reconfigured their algorithms to ensure the best audience plus offered analytics to agents to increase spend

Thank youJulie Ask

+1 415.355.6002

jask@forrester.com

CONFIDENTIAL

›Steve Dille, SVP Marketing, Message Systems

Making Mobile Moments Payoff

March 20, 2014

Introduction: The Leader in Messaging

›20%

Email / Marketing Services Providers

Social Networking

Daily Deals Telco Financial

ServicesConsumer

TechnologyTravel &

HospitalityPublishing

& MediaHosting & SaaS

Sampling of Key Clients by Vertical Markets

Cross-Channel Messaging Platform

Proving the Value of Mobile Moments

Message Systems

Mobile Business Process

Transformation

Mobile or Multi-Channel

Marketing

Mobile Business Process Transformation›Saves Millions, Build Loyalty

Banking Mobile Moment

›Fraud Alert:

1. Fraud Detection System False Positives Drive Large Volumes of Expensive Call Center Calls, Damaged Loyalty and Loss of Revenue

2. For Every 1M Fraud Alerts Sent to Customers, One Study Showed 94% of Them Were False Positives, Driving $11M in Unnecessary Costs

3. Innovators Use Mobile to Automate out This Expense — Chase, USAA

Evidence: “After the implementation of the fraud detection system, the detection rate increased to 90% in the online space with a false positive rate of 18 to 1 (this means that one out of every 18 transactions identified as suspicious is true fraud).”

Forrester Research :Case Study: A Leading Global Financial Institution Steps Up Its Campaign Against Fraud With Device Identification

Business Activity Financials

Fraud Alerts Generated 1,000,000

False Positives 944,444

Cost/Call $12/call

Unnecessary Expense $11,333,328

Fraud Alert: Automated Responses

Fraud Alert: Suspicious transaction at Tower Mini Mart for $51.89. Card temporarily blocked. Please call Customer Service.

Reply to this message with the word “YES” to approve this transaction and unblock your card “NO” to speak to an agent.

Travel Industry Mobile MomentReducing Rental Car No-Show Waste

›Facts:

1. No show rentals represent 20–30%* of car reservations costing the company at least $6.6M of Global Distribution System reservation fees + lost inventory utilization

2. Using Mobile Devices, a Car Rental Company Can Automate Out This Expense and Recover the Costs of No-Show Reservations by reducing no-show GDS fees and charging for no shows or increasing utilization of the fleet

*Source: Auto Rental News

Value Proposition:Reducing Rental Car No-shows Waste

Avis Budget Today

Annual Est. Rental Days 74,014,611

Avg. Length of Rental 5

Number of Transactions 14,802,922

% Transactions through GDS 45%

No Show Factor 25%

No Show Transactions 1,665,329

Cost of GDS Reservation $4

Incremental Cost from No Shows

$6,661,315

Earnings per Share Impact $0.04

Avis/Budget Reengineered Policy

Annual Est. Rental Days 74,014,611

Avg. Length of Rental 5

Number of Transactions 14,802,922

% Transactions through GDS 45%

No Show Factor 5%

No Show Transactions 333,066

Revenue Opportunity — Charge for First Day

$40.00

Revenue Opportunity $13,322,630

Cost of GDS Reservation $4

Incremental Cost from No Shows $1,332,263

Earnings per Share Impact $0.11

Source: Auto Rental News and NorthCoast Research Estimates

Mobile E-mail Reduces No Show Costs

There will be a $40 charge for no show car reservations not picked up in 24 hours.

PREFERRED CLIENT

Mobile Moments in Marketing

SMS and Push Messages Are Effective

Email SMS

95%Open Rates

Email SMS

Time to Open(in min)

No Push With Push

App Usage Rate(in month 3)

SMS messages have much higher open rates compared to email

SMS messages are opened much faster than email

Push messages increase engagement with mobile apps

Mobile Improves Response to Other Channels

Mobile Marketing Use Cases

Increase Sales

Improve Customer Service

Customer Loyalty & Retention

Increase App

Increase Sales: Ace Hardware

Advice: Send coupons, updates and other promotions via SMS and push messages to drive in-store or online sales. Smart segmentation and geo-fencing can increase relevance of the offers making campaigns more effective.

Campaign success metrics:

• Over 13X return on investment

• 49% mobile coupon redemption rate

• 411% increase in average customer cart size

Improve Customer Service

›Problem:

• 3.5M users on the mobile bank application. Sending alerts in text at a cost of $2.3M with growing volumes annually

›Solution:

• Use Push notifications system to eliminate the cost of text messages and deliver alerts into the mobile application. Use text as a backup.

Customer: Large European Bank

Advice: Give users information they need when they need it and lighten the load on call centers. Send event reminders, renewal notices, bills, schedule updates, transaction notices, alerts, and more. Use Push for lower cost.

Customer Retention & Loyalty

Advice: Keep customers engaged through frequent, relevant messages. Send offers, coupons, suggestions, news updates through SMS, e-mail and push notifications. Send reward points information and other loyalty program updates.

Place Food Order. Ask for Mobile #.

Increase App Usage

Advice: Use push notifications to offer users something of value — content, special offers, reminders, etc. — and your app’s usage will grow.

Thank you!

Follow us on Twitter:

• @messagesystems

Follow us on Linkedin:

• Message Systems

Visit Us

• www.messagesystems.com

Contact Us

• info@messagesystems.com

4-Step Guide to Mobile Engagement - presented by Forrester Research & Message Systems

Business

Transcript of 4-Step Guide to Mobile Engagement - presented by Forrester Research & Message Systems

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