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November 2007

Can We Talk?

Want to find new ways to talk to your guests? Beef up your mobile marketing efforts.

Written by Samantha Rufo, President, nxtConcepts | 0 comment

Propped up high above the corner of E. 3rd Street and Bowery in Manhattan, a 100-foot-long Lenny Kravitz invites us to send him a text message, a “short code,” on behalf of Absolut vodka to get a free download of his new song. Amid the students walking to class on Colorado college campuses, Powderhorn ski area provides the mobile keyword “Deals” on a flyer. This keyword gives students the opportunity to “text-in-to-win” lift tickets, season passes, and other prizes when it is sent to the short code 95495.

(Short codes, also known as short numbers or Common Short Codes [CSC], are special mobile numbers, designed to be shorter and easier to remember than normal telephone numbers. They provide the opportunity for marketers to send text messages to any wireless network and create an unlimited number of text messaging applications and promotions.)

If you look closely, you’ll see that mobile marketing, the “third screen” as cell phones are known, along with TV and computers, represent a gold mine of opportunities for resorts. John McColly, director of marketing for Mountain High, Calif., implemented a text message program about four years ago, and now has more than 7,000 subscribers. “Mobile is simple and cost effective to do. If a ski area hasn’t started yet, it should,” he says.


Making it Personal
Print advertising, radio, television, billboards, direct mail, email, dynamic websites—none of those methods have the power to engage the consumer like mobile marketing. Mobile marketing allows the recipient to phone the marketer, send a text message, or connect to the company’s web pages. It’s much more interactive and personal than traditional marketing.


Is the Consumer Ready?
According to Mediamark Research, 86 percent of adults in the U.S. have a cell phone, and the most active mobile users are college kids and affluent business travelers—perhaps the two most highly desirable demographic groups. What’s more, research organization Enpocket has found that permission-based mobile marketing is 50 percent more effective than TV and 130 percent better than radio.

Powderhorn started its mobile marketing program last winter. It realized quickly that a mobile phone placed 8 inches from the face is a better platform for communicating a message and brand than a 42-inch plasma TV situated 8 feet away in a living room. Sarah Allen, marketing manager at the resort, says, “Our first text promotion, offering $25 lift tickets during a week in January if they showed their phone [with the message], had a 36 percent redemption rate—and cost us almost nothing to do.”


What works?
Mobile marketing is different than other methods. It is more flexible, time-based, and restricts the length of the message to fit on small cell phone screens. Marketers have to grab users’ interest quickly, typically with only a handful of words. But indications of the marketing potential are promising.

In summer 2005, McDonald’s put short codes on 50 million Big Mac boxes across the U.S. Consumers could either send a text message with a special code or enter via the website for free tickets to a House of Blues concert series. More than 40 percent went the text message route.

Burger King recently sponsored a mobile campaign that included mobile video, mobile website, promotional downloads, and even driving directions to the nearest Burger King. Interactive media director Gillian Smith was pleased with the results. “It’s a very useful way to reach consumers on the go,” she says. “We try to reach them closer to making a purchase decision and provide them with useful info.”

Since launching in the spring of 2002, over 9,000 University of South Florida (USF) students have been actively using MoBull Messenger, a free wireless notification and couponing service. This delivers wireless real-time campus updates, including class scheduling changes, school closings, emergency alerts, special events updates and payment deadline reminders. Students can also opt-in to receive special discount coupons from area restaurants, sporting events, nightclubs, and retail stores. Vendors who have perishable inventories (restaurants, concert tickets, etc.) have seen up to a 10 percent response on wireless coupons sent out. The ROI is compelling: for as little as $.10 per message, merchants are able to send a coupon to an interested student, and one in ten will become a customer.


Texting, Texting
Texting puts the consumer in control of what they receive, when and where they receive it. By providing relevant, genuinely valuable services and information anytime, anywhere, it can deeply integrate your brand into your consumers’ lifestyles.

Think this is just something for kids? Think again. Imagine a morning commuter trapped in traffic at 7:30 a.m. “Freshies,” “escape,” and “vacation” are three short keywords that might get attention and inspire a change in plan.


Samantha Rufo is president of nxtConcepts, an interactive marketing and media company. For more information contact her at 888-215-0820 or sam@nxtconcepts.com.



Tips for Mobile Marketing
1. K.I.S.S. Messages should be to the point. “You have an insanely limited amount of space,” Allen says. Powderhorn limits messages to 140 to 160 characters. For example: “POWDER DEAL: Show this text to the ticket windows between Jan 22-28. Get a $25 lift ticket. Offer limited to 1 per day. Not transferable. Powderhorn.com”

2. Ask for permission. Subscribers pay for text messages. No one wants to pay for content they did not choose to receive. So ask whether they’d like to receive additional offers/news when downloading content from the Web. This opt-in process is even more critical in the wireless world. Every campaign should include a quick and easy way to opt-out. It’s not only polite but required by the Mobile Marketing Association (MMA).

3. Create a compelling offer. Be very sure your offer is something your subscribers want. Strong offers can substantially increase subscribers, build brand awareness and increase sales. A study by Nokia indicated that nearly 9 out of 10 respondents agreed that they should receive an incentive to opt-in to mobile campaigns.

4. Every phone is different. So make sure your message can be seen. Phones can vary from simple SMS (Short Message Service) phones to highly sophisticated color wireless PDA’s. Screen sizes and quality range from small black and white screens to high-resolution color displays. Your mobile messaging provider should be capable of optimizing content for a variety of platforms, including J2ME, BREW, WAP, and MMS.

5. Make it viral. Tap into mobile’s peer-to-peer abilities. Users forwarding your message to their friends and colleagues enhance the reach of each message sent. To facilitate that, add “fun” or a give-away to your messages.

6. Piggyback on traditional marketing. Use online or offline channels to connect users to your mobile campaigns: online advertising, email, print ads, etc., can alert mobile consumers of a particular promotion or invite them to join your mobile program.

7. Track your results. Aside from high ROI, mobile marketing enables better tracking of results. Reporting is built into mobile platforms— polling tallies, survey results, total messages sent, total messages delivered, etc.— and occurs in real time. By tagging ad campaigns with a unique mobile keyword call to action, you can track each response to the exact ad that generated it.

8. Allocate enough set-up time. Start your mobile effort now, today, to ensure you have people to send important messages to when it counts. It takes time to build up a subscriber list. Don’t have the time? Mobile marketing is very flexible and time sensitive. Even a last-minute mobile campaign can be successful. An outsourced vendor with ski mobile marketing experience can be invaluable.

9. Do it because you mean it. Some marketers may be tempted to develop a mobile campaign just because it’s a small line item in an otherwise big marketing budget. Big mistake. Although it’s inexpensive to implement—perhaps a few hundred dollars—it takes time and attention to make it successful. Treat it seriously and the payback can be tremendous.

10. Pitch on the perfect platform. The same demographics’ that are interested in snowsports are also the most likely to use mobile phones. Nearly all of your customers have a cell phone, and there’s no better way to reach and engage them.