Wednesday, January 6, 2010
Mobile Marketing Memory
Till date most companies practice compensating mobile marketers based on response rates to the SMS campaigns. However, given the simple messages provided in personalized clutter free space, consumers also remember the provided information irrespective of whether they responded or not. So the value of mobile marketing campaigns is not limited to the response rate; they also create memory that can aid future purchases through other channels. In a recent paper published by Tetherball the researchers explore what type/format of information is better remembered, and what types of audiences are likely to better remember such information. Interestingly, it finds that the group responsible for triggering highest usage of the mobile internet (late 30's professionals with high education and income) show the poorest recognition accuracy of promotional information.
Subscribe to:
Post Comments (Atom)
5 comments:
After reading the white paper, my next question is as follows: If research continues to show that mobile marketing has quantifiable benefit even when customers do not respond with the specific call to action, is there another logical fee structure for mobile marketers to use? If they changed their fee structure to go beyond charging per response, what tactics should they use to convince customers that gross impressions, for example, are having measurable impacts on their customers?
I agree that a different logical fee structure is evident. First step involved is to measure/tag responses. For example, study two groups of consumers who have similar frequencies of buying from a branded store. Over a period of time, subject one group to mobile marketing and observe how much their frequency of purchase goes up by. My guess is, it will increase by MORE than the promotional coupons redeemed. The fee that the mobile marketer charges then should based on not just the coupons redeemed, but the overall increase. It will have to be experimented by industry and location and decided upon.
I think you would need to use a very large sample size for research and experiments like this. Since correlation does not necessarily indicate causation, you would also need a diverse group so that the only statistically significant change could be attributed to the increase in mobile marketing. Other things that influence buying patterns could account for increases in patronage, but perhaps a large enough sample size could mitigate some of those other forces.
Causality can be inferred with treatment and control (experimental design), as in drug development.Which is why I suggested two customer groups for comparison.
The only important aspect is to systematically replicate this experiment across different demographic profiles. Do let me know if somebody is interested in such a study, I will be happy to collaborate.
I've found a few companies that charge per impression rather than per response, like the following:
http://www.expedite-email-marketing.com/sms_cell_phone_marketing.htm
It appears clients do accept the benefits of mobile marketing, beyond just the easily measurable response rate.
Post a Comment