A Winning Mobile Strategy

Dan MarksCMO, First Horizon

@wdanmarksdmarks@firsthorizon.com

Agenda

• The Big Trend• Understand customer needs• Strategize• Launch! Refine. Repeat.• Key learnings

The Big Trend - Smartphones

Source: comScore

Mill

ion

US

Sub

scrib

ers

Adoption growing faster than any other innovation

Implications

• Google reports that over 18% of searches on Black Friday were via smartphone

• Over 20% of email is read on a smartphone today

• A Visa study found the smartphone most inseparable device – ahead of wallet and keys

• Pizza Hut expects half of their orders to come from mobile in just a few years

Understand YOUR customers

• Look at industry research• Talk directly to your target customers• Primary research• Look at third party reviews for

competitor/category apps

Example industry research

7

Mill

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US

Sub

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Source: Forrester’s North American Technographics Payments and Products Survey, Q4 2009

Smartphone owners are 5x more likely to use Mobile Banking

Understand specific needs

Reviews provide rich insight

Specifics will vary by category and goals

• “App is great for checking accounts and moving money around.”

• “App needs billpay”• “App doesn’t work on sprint EVO”

Strategize

• Must build your strategy based on your specific context, customer needs, and overall value proposition

• Common principles for success– Consider all sub-channels of mobile– Leverage experts– Get executive alignment/buy-in– Use pilots/prototypes

Our Mobile Strategy

• Focus on smartphone apps but support SMS/Mobile Web

• Move FAST• Give customers real value• Ongoing refinement • Pilots / test & learn

Focus on Smartphones

We emphasize apps… for now

Android & iOS are like Coke & Pepsi – but which is which?

Give customers real value

• Potential value drivers for features:– Access– Information– Service– Selection– Unique phone features (GPS, camera, etc.)

• Understand how customers may be using third party mobile (ie Yelp, Foursquare)

We provide value

• Access = transact from anywhere

• Information = see what’s happening on accounts

• Service = cheaper than IVR• Unique capabilities =

– Location finder with GPS– Mobile Deposit with camera– More to come!

Examples of unique value

• Camera – Mobile Deposit

• GPS – nRange Golf GPS

Full Disclosure: I have an investment in the publisher of nRange Golf GPS

Move Fast, Iterate

• Selected partner with cloud-based delivery• Deployed first app in 82 days!• Ongoing releases based on customer

feedback

Use pilots/prototypes

• Each release follows these steps:– Beta testing = small/refinement– Employee pilot = next step, further refinement– Customer launch

• Collect feedback and refine at each stage

Test multiple approaches

Example: Common promotion creative tested on two networks

Network 1 Network 2

Click Through

2.7% 0.3%

CPM $29.8 $3.5

Cost per conversion

$153 $146

Understand your customers usage and profile

Attribute Mobile vs Overall Index

Rev/HH 118

Dep Bal/HH 78

Loan Pen 143

Billpay 235

Avg Tenure 80

Avg Age 62

Target Mkt 103

Avg overall = 100

Mobile exceeds expectations

1st year goal

Experiment with new methods

• iPad Content trials

• Local Cash Rewards

Mobile for lead generation

• Mobile account openings

• Click to call

• Advanced engagement

Key Lessons Learned

• If you haven’t started yet, start experimenting!

• Pay attention to your customer needs• Test, learn, refine• Share and learn from best practices• It will be a fast ride!