Making Mobile Strategy Attractive to the Bottom-Line

Smart phone users like to touch, play games, shop, watch videos -- make sure your mobile strategy conforms to "Entertainment" – low attention span is the only thing I will add to round out the observations on the impact of evolving smart phone adoption! 

As these devices grow, so does the need for a mobile as a marketing vehicle for brands. Free Wi-Fi, in the enterprise world is a step to entice customers, but how do we justify the ROI? Video viewing is prominent, so were other activities mentioned below. Consumers like entertainment on their devices, but what is the view from the provider’s (enterprises) perspective?

In the test for device usage (that I conducted with one of our restaurant partners), the content (non-video) was secondary and direct access to FB, twitter or other social book marking sites was prominent, followed by search and weather/local.

How do we balance the market need for a service and internal investments in providing that service? I talked about Challenges to Mobile Strategy in an older post. Monetization of a mobile experience is a real challenge, so ROI of the investment is a tough one for executives to swallow. However, if the there is increased in-store sales, patrons’ use of local coupons and promotions, greater brand exposure, positive mentions of the brand, etc., then the short-term investment could pay off big time over the long run. Traditional businesses have realized the latter, but need for immediate gratification appears to be trumping a full-blown and integrated strategy for mobile as a channel.

Decoding Customer Retention

Customer retention is an area, where organizations often look to, as business starts to plateau, or worse, starts to decline. Often the data is looked at, and research conducted to understand and mitigate the causes, before customers find a better value elsewhere. While, there are no wrong answers in how we launch retention programs, the effectiveness and sustainability will be a factor of how well we researched our offers. The areas outlined below may help develop a better understanding of our retention needs and offers.

• Is your core product/service still fulfilling the customer need? This is relevant where the core offering starts to get viewed as a necessity and there are alternatives that may either replace the need or alter it in ways that is not relevant to your organizations strengths and/or operations. Google’s search is being imitated and customer search behavior is modifying to social/video/mobile search. There is even a need for a simpler search engine being proposed by industry leaders. Search is still relevant, but Google is forced to think beyond the traditional model to accommodate changing consumer behavior.
• Are the customers getting what they were promised? Here is one of the obvious ones – if I buy a cell phone, but the calls getting dropped, it may be time to find an alternative. Setting customer expectations and meeting them is more than half the battle won, in spite of other changes that may be impacting your products and services.
• Do you have other products and services that enhance the value of your core offering? Not as easy and obvious, but extremely powerful. Customers trust and want to feel good about the brand they are already engaged with (assuming we have a check mark against #2 above). To enhance their brand experience, we need to develop and offer a portfolio that enhances the experience of our core offering. We are all familiar with bundles of phone, Internet and cable services that are now common place amongst the connectivity providers.
• Lastly, is the industry landscape changing? – are the competitors, technology, consumer behaviors altering the landscape such that; your product/service is becoming a commodity, new services are being added, customer expectations are changing, etc? One of the most fascinating examples of this dynamic is visible in the Satellite Internet industry, where broadband speeds, data capacity and prices are expected to be comparable to DSL and cable, as opposed to simply being better than dial-up.

Evaluating our portfolio in the light of the above questions may help find ways to keep customers excited about our brand and sustain growth through their greater participation and share of wallet (topic for a later post).

5 Keys to Increasing Marketing ROI

With the new year in sight, one of the pressing issues for managers is how to improve upon the marketing successes in 2011.  While acquiring new customers is an obvious growth strategy, marketers must also use analytics to unlock the real secrets behind marketing success. After all, your marketing dollars should stretch well beyond customer acquisition.

Often companies will focus on “net adds” as a success indicator, and fail to recognize the revenue growth potential by meeting the needs of their existing customers. I am not saying it is by design, but top-line growth is “sexier” to the management, and extracting that incremental dollar out of your existing customers needs a bit more work than designing a catchy marketing campaign – right analytics focus can help solve for the latter. The following 5 steps seem to have worked in my experience.

• Know your customers – demographics, location, spending habits, targeted wallet share, etc.
• Identify and create a portfolio of products that aligns with your customers’ needs and extends your brand beyond core product(s)
• Build relevant external partnerships to extend your products beyond the core competencies
• Target the products offerings to specific customer segments and avoid the “one-size-fits-all” approach to selling  
• Lastly don’t forget to utilize all the available customer touch points including, social forums, newsletters, email and others

These steps need to be repeated periodically to capture any changes in market, customer needs, etc. But, the key is to consistently evaluate (say, during quarterly reviews) your portfolio strategy on all of the above drivers and refine as needed.

Remember, it is much cheaper to manage a customer than acquire a new one!

Small Business Cloud Solutions

According to US Census bureau, there are more than 5 Million small businesses in the US with less than 20 employees and spanning all industry verticals including, services, manufacturing, non-profits, etc. 

With technology changing at a rapid pace and resource constraints at these organizations, need for “pay per use” technology solutions has been gaining momentum. In a recent Parks Associates survey (2011), 50% or more of the respondents indicated that they would prefer hosted solutions in one or more of;

• Online security
• Back-up and recovery
• Site hosting, design and management
• Email, hosted exchange and other

The market need is for a portfolio that can not only be branded and managed, but also is affordable to the target small business market. Verizon, AT&T, Comcast and others have several bundles/pricing, but with a large set of options available, small businesses are finding it difficult to make the right choices – although, that may only explain part of the hesitation and low adoption currently seen.

Based on my recent engagements, I believe service providers should;

• Understand the needs of the target market segments, since one size probably will "not" fit all
• Build a simple portfolio of products that does not require an expert to be evaluated
• Minimize the number of integration points from various solution providers
• Include business class customer support as a key component of the bundle

The challenge for the service providers is to understand that there are few small businesses that will buy or, can afford the bundle of services on offer, at least in the current environment. However, pricing a-la-carte for the client may not be ROI positive, given the nature of diversified services as outlined above. It will be interesting to see the business models evolve over the next 1-2 years, where an “a-la-carte bundle” is not encumbered by licensing and integration challenges, as well as, is cost-friendly to service provider and price-friendly to customers at the same time.

Mobile Internet Opportunity

Mobile solution across Wi-Fi networks is a territory that has yet to be explored from the perspectives of consumer experience, usage and revenue potential. There are several challenges that will need to be addressed as the right mobile strategies evolve that cater to the needs of all stakeholders – is there a mobile portal on the horizon? Here’s what we know thus far;

• Consumers are mostly interested in their favorable apps, social sites, weather, local events and deals, for the most part
• Device types are proliferating but also offer consistent pointers to consumer preferences (read iPhone type of smart devices and tablets)
• Advertisers are not sure of relevant pages for high-value ads
• Wi-Fi providers want a piece of the revenue (advertising & search) pie, however small that may be, but they also see mobile Wi-Fi as a marketing and branding channel
• Technology community is faced with creating an experience that caters to all these groups and still be scalable for relevance and locations (zip codes or other)
• And, the winner between downloadable apps and web based applications is yet to be decided

The solution probably lies in simplicity:

• Consumers want access so they can do whatever it is that they do on the web
• Local content and promotions appear to be the most viable long-term revenue drivers
• Branding and in-store coupons present another monetization channel to the service provider(s)

Signing in to mobile Wi-Fi internet during your next restaurant stop or hotel stay should not be that “boring.”

Approaching your portal strategy & design

Portals or business websites are an important element of consumer branding and engagement. Defining a portal largely depends on the business and its “key” goals. And, goals vary widely as we go from business to business. For instance, shopping cart for easy consumer purchase (amazon, eBay, etc.), content promotion (MSN, Yahoo, Aol, etc.), account management (CapitalOne, Verizon, etc.), or brand presence on the internet (corporate sites).

While apparently disparate, these goals have a fair amount of overlap and managers see it as such, which is the primary reason portals tend to be “one size fits all” hodge-podge of “stuff.” In other words, managers often try to cater to their “diverse audience,” instead of focusing on the core products/services that the audience comes to their portal for.

I am purposely staying away from calling out the specific site designs that are prompting me write this article, but I am sure, if you see it you will know!

I believe all portals serve 3 common goals, irrespective of their market focus:

1. Improve brand image – this is letting the consumers feel a sense of pride as and when they connect with your brand. The key to achieving that is to offer the best-in-class product/service, complemented by such features as; intuitive/easy navigation, simple user interface, access to FAQs & customer support, etc.
2. Educate – from bringing most current and relevant content to the audience, or educating about your company’s products and services.
3. Drive sales – make it easy for the consumer to complete the cycle of product research to order (be it online or offline) – don’t forget to complement this with the industry best post sales support.

Note too that the above goals are not mutually exclusive, but need to complement each other, with focus on the key corporate objective.

 These goals are sure to address many of the seemingly divergent goals. But, if done right, we have the opportunity to create a great touch-point for our brand that will bring the consumer back and refer us to their family and friends (http://www.analyticsheaven.com/2010/03/one-metric-to-define-website.html).

The audience is always diverse, but our product or service – by design – addresses a specific need. The more we focus on the need, the better we serve our “diverse audience” through our communication vehicles (such as portal!).

Scorecards - Adopt a More Dynamic Approach

Is our scorecard serving business needs of the moment? Scorecards are widely debated within organizations and what I have found is that scorecards end up reflecting personalities rather than business imperatives. We argue and sell the concept of a consistent set of metrics and a standard format, so business can be monitored and decisions can be made. But, I have found that the theory of standard format and set metrics only says that “I don’t want to rake my brain on a frequent basis and make decisions dynamically.” There are a very few businesses that do not pose a new challenge every day – some days we are fixing what is broken, on the others, we may be finding ways to optimize the operations, yet another, we may be trying to find new ways to grow the business. So, why should the scorecard always look the same?

There are ways, a lot of managers pretend to get by that problem – add more metrics to the scorecard, make the font small to fit on one-page (often as a result of the former), etc. But, do they solve the tactical business challenges that are discussed in the review meetings every day/week/month? A better approach would be to identify what metrics are meant to be the health indicators of the business and what metrics need to be monitored for making tactical decisions by pointing out wins/challenges. To achieve this, we need scorecards that are not repetitive indicators of our performance, instead can dynamically capture the data points that help executives hone-in on the issue and make a call quickly during the review meetings.

I am not suggesting we dump the old formatted view of our metrics, but instead, we create one that speaks to our most current challenge (today, this week, etc.) – which retail department is moving ahead and which is hurting, which promotions worked for us, how do we help our dealers and vendors be more successful, what helps the consumer buying decision, how do we grow revenue to meet this months targets, etc. This slight change can help surface underlying issue, as for example; With stagnant sales – increasing the share of consumer’s wallet is tough in these times, but bringing more consumers in through the door is still a viable growth strategy. If we can dynamically demonstrate the value of our key projects through the right scorecard, it might be just that much easier to gain executive approval and show the results as they come in.