Thursday, June 30, 2011

Vanity Short Codes Will Be A Thing Of The Past

Vanity Short Codes Will No Longer Be Necessary...

by Derek Johnson, Founder & CEO Tatango

There are two types of short codes in SMS marketing: ”random” short codes and “vanity” short codes. Random short codes are exactly what they sound like, a combination of 5-6 numbers picked at random, outside of the clients control (i.e. 95632, 20924, 425031) and vanity short codes are 5-6 numbers that are picked specifically within the clients control, i.e. 12345 (sequential order), 90210 (Beverly Hills zip code) and 411247 (411 – directory / 247 – all day every day).

The CSCA leases vanity short codes for SMS campaigns at $1,000 per month, compared to $500 for a random short code. From a client’s perspective, there is usually one of two reasons why they see the value in paying twice as much for a vanity short code than a random short code.
  1. Client wants a “phoneword” – the alphanumeric equivalent of a specific number (i.g. 466453 spells ‘GOOGLE’ on a mobile phone keypad).
  2. Client wants a specific number series – making it easier for consumers to remember.
I believe number one to be useless due to the fact that it increases consumer confusion when opting into a campaign. It’s more difficult to understand texting a WORD into another WORD (i.e. “Text PLACES to GOOGLE”) as the order of the two words (which one is the keyword) can be confused.

The second reason I can understand, in that it’s easier to remember 12345 when opting in than it is some random 5 or 6 digits. Although if this is true, why doesn’t our SMS service offer vanity short codes to clients? The answer is simple — soon I believe it won’t matter what the short code is, as consumers won’t actually type the short code into their phone when joining an SMS campaign. You heard me right, no typing.

So how does a consumer join an SMS campaign in the future? By simply scanning a QR Code. If you have a QR code scanner on your mobile phone, try joining this SMS campaign I setup by scanning the QR code below. As you join this SMS campaign, you will realize how minimal of a role the short code plays in this new opt-in process.

The real drawback right now to QR codes is that most phones don’t have the required software to be able to scan a QR code. This is drastically changing however, as mobile phone providers start to release phones with the QR code scanning software built in. Just recently AT&T released their own mobile QR code scanner, which is already pre-loaded onto many AT&T devices.

It’s just a matter of time until all mobile phones will have the ability to scan a QR code, which at that point the vanity short code will have become irrelevant in SMS marketing.


Thursday, June 9, 2011

77we Brookstone tests QR codes...

Brookstone tests QR codes to drive in-store, catalog sales...

By Chantal Tode
June 9, 201

Brookstone is testing QR codes in stores and catalogs

Retailer Brookstone has rolled out a QR code test campaign in 30 stores, as well as in its catalogs to provide consumers with product information and increase sales.

The multichannel gadgets and gifts retailer is promoting the program in its in-store windows – the comapny is looking to roll out QR codes more broadly next year. The goal is to be able provide customers with the information they are looking for and, thereby, drive sales.

“Customers come in and want to find out more about products and how they work and to see customer reviews,” said Don Eames, vice president of stores at Brookstone, Merrimack, NH.

“Those are the things that customers are most interested in and the more we can satisfy their needs, the more motivated they are to buy,” he said.

The program was launched in 30 stores in the New York City.

Mobile bar codes for certain items in the store are posted on the floor signage and placed certain products.

The signs explain what the product is and also provides pricing information.

Additionally, when consumers scan the QR codes, they see videos and demonstrations of how the product works.

Brookstone, which sells products via catalogs, stores and online, started looking at mobile about 12 months ago as part of its interest in finding ways to make its marketing methods more relevant to customers.

“We felt that the traditional marketing methods we were using were getting kind of stale,” Mr. Eames said.

Brookstone settled on QR codes because it provides the relevancy the retailer was looking for while enabling it to reach a large cross-section of customers.

“The bar code readers are different in that they take you to pricing and promotion information,” Mr. Eames said. “Price is a losing proposition, while education around product information is a whole lot better place to be than always scanning and looking at price.”

The Father’s Day catalog featured QR codes

Brookstone store associates are helping promote the QR program by asking customers if they have a smartphone and telling them how to download a QR code app so they can scan the codes.

The windows for the store on 49th Street and Sixth Avenue also have four TVs that feature content talking about QR code technology and inviting people to come in and try it.

QR codes were also featured in the retailer’s recent Mother’s Day catalog and are in the Father’s Day catalog that is dropping this week.

The codes are featured alongside certain products and on the back cover.

“We are pleased with the results so far,” Mr. Eames said.

The product receiving the most QR code scans so far has been the Tranquil Moments Sound Machine for Sleep, which was a popular Mother’s Day gift.

Other popular scans include anything related to iPads and the Drone quadricopter.

Brookstone will continue testing mobile bar codes throughout this year and expects to roll out the program to all stores and catalogs some time during the first half of next year.

Brookstone introduced a mobile Web site a year ago.

“QR code technology is growing quickly but is still a relatively young technology,” Mr. Eames said.

“Our plan would be as we learn more, we will put it into more catalogs and stores as quickly as we are confident,” he said.

Final Take
Chantal Tode, Mobile Commerce Daily

Tuesday, June 7, 2011

77we Issues Facing Retailers and Marketers Using Mobile


Three pressing issues facing retailers and marketers using mobile...

Posted By Chantal Tode On June 7, 2011
 

Marketers are looking for the
best ways to reach consumers via mobile...

There is no doubt that mobile is growing, but the industry faces several pressing questions if it wants to continue moving along the same path.  

Mobile applications and the mobile Web have grown quickly in the past couple of years to the point where well-known national brands are regular players in the space. However, mobile is still fragmented and marketers need to be thinking two or three steps ahead if they want to meet consumers’ needs easily and efficiently.

“Mobile advertising – whether through mobile bar codes, on the mobile Internet or via applications – is now no longer a trial medium for marketers,” said Laura Marriott, chief executive officer at NeoMedia Technologies, Atlanta, GA. “Mobile has the ability to breathe new life into traditional and digital campaigns, enabling engagement with the consumer on impulse.”

But because mobile is such a personal communications channel, there are specific issues unique to mobile marketers must address while still keeping their eye on the overall marketing strategy, per Ms. Marriott.

Here is what industry experts have to say about the top issues facing mobile marketers.


How to best engage customers using tailored communications

While there is a lot of talk about location-based targeting via, marketers should be careful to match consumer need and behavior with their campaign strategy, considering all possible ways to tailor communications to provide value.

“Access to relevant content, discount coupons, or exclusive information can help grab consumer attention and encourage interaction,” Ms. Marriott said.

“This tried-and-true marketing strategy is a great way to increase a user base and will promote user participation in the campaign, so be sure that any communication is tailored to the target consumer using the data available to you and offers value in a form suitable for both brand and campaign,” she said.

Right now, marketers are looking for ways to engage in cross-channel targeting across every mobile channel they are in. This is not easy because mobile is not a cookie-based environment and there is no standardization across mobile ad units.

However, the payoff could be significant.

“This year we’ve seen a lot of interest in using the same targeting metrics from online in mobile,” said Zaw Thet, CEO of 4Info , San Mateo, CA.

“As this happens, there will be an exponential growth in mobile as marketers start to move their online budgets into mobile”, he said.

Geotargeting, in particular, deserves attention.

With all the attention being paid to mobile’s consumer privacy issues in Washington and by consumer advocates, many are watching to see what the impact will be on the use of location in mobile advertising.
A big focus for mobile marketers is on using mobile to send consumers a targeted mobile offer when their phone shows they are in close proximity to an advertiser.

“That is the Holy Grail of what location is capable of but, the question is will consumers be comfortable with that and do retailers need that level of granularity,” said Brett Leary, vice president and director of the mobile practice at Digitas, Boston.

“There is a big difference in the implications for privacy between targeting at the ZIP code level versus targeting three feet away and that needs to get sorted out,” he said.

Looking further ahead, however, marketers may want to consider whether it makes more sense to have apps across multiple devices or a single mobile Web presence.

As the number of platforms has grown, marketers are having to update apps and push this out to all these different platforms, which can be time consuming and expensive.

“Marketers want to want to be able to reach as wide a targeted audience as possible,” said Neil Strother, practice director of mobile marketing strategies and mobile services at ABI Research , Kirkland, WA. “The mobile Web is that standardized platform.”


What role should mobile play in a brand’s overall marketing strategy?

Marketers need to plan ahead and integrate mobile into the marketing mix if they want to get the most out of it.

“This will help insure that interactivity is a key element of the campaign itself and not simply added as an afterthought,” NeoMedia’s Ms. Marriott said. “Continued consumer engagement should be a key benchmark in determining the overall success of your campaign, so planning for it early on will only serve to bolster consumer satisfaction with your campaign.”

This means marketers should align their mobile efforts with the customer journey and not have a separate strategy for mobile.

“If you treat mobile in a siloed way, you are not able to find those insights that enable us to create greater relevancy with apps and mobile ads,” Digitas’ Mr. Leary said.


Metrics to use to measure the success of a mobile campaign

This needs to address the fragmentation that currently exists in mobile advertising.

“There is a lot of fragmentation with iAd, other display ad formats and newer emerging formats such as rich media,” Mr. Leary said. “All of these need to be smoothed into an efficient system in order  for marketers to spend more in mobile.”

How the industry standardizes measurement is something a lot of players in the industry have their eyes on.

“Because mobile has the ability to connect the digital and physical worlds, the question can we find the way to close the loop between these two worlds when it comes to marketing,” Mr. Leary said.
This represents an important opportunity to differentiate mobile because if the industry can figure out a way to tie back an in-store purchase to a mobile marketing message the purchaser received. Companies such as Nielsen and 4Info and trying to make this happen.

Being able to provide a clear picture of mobile’s return on investment could have big ramifications.

“It is going to encourage repeat action, spread overall usage of the medium and investment in it by advertisers,” Mr. Leary said.

First of all, however, the industry needs to address the fragmentation in mobile ad units.

“Unlike online, there is not really an easy way to get cross-channel accountability in mobile,” 4Info’s Mr. Thet said.

What needs to happen is for marketers to be able to buy mobile ad units from one source and to easily view metrics in one report for all of their mobile activity, per Mr. Thet.

“We are starting to see more of this with more ad networks starting to support third-party tracking,” Mr. Thet said.


Chantal Tode, Mobile Commerce Daily