Mobile Marketing
Abstract by Anthimos Georgiou
Chapter 25
The evolution of internet the last 20 years has made tremendous changes on how marketing is being implemented by companies and how it is perceived by consumers. Traditional marketing as we know is becoming obsolete and the technologies that have been evolving around the internet have brought breakthrough marketing utilization for desktops, laptops, mobile phones and wearables.
Currently, consumers are “always connected” through Wi-Fi or 4G ( 5G is here already ) and the companies that want to be successful in attracting and retaining customers need to implement online marketing strategies that will assist customers with their purchases but also support them when needed afterwards.
This chapter will discuss the evolution and use of technology (devices) and the internet in marketing, then will explore the current trends in mobile marketing, mobile applications, loyalty programs, augmented reality, push notifications and how all these can be used in marketing strategies.
The end of the chapter will bring a discussion of the outlook for the future and how the new trends of internet connected devices will affect marketing strategies and business decision making. Examples of good practices will be given from different industries including Hospitality, Food & Beverage and Business.
INTRODUCTION
Mobile phones and especially smartphones became an extension of user’s hand and are mostly connected online 24/7. The evolution of technology had made smart phones affordable to the mass of the world population. According to the statistical website statista.com the number of phones in 2020 were 3.5 billion, expecting to rise to 3.8 Billions in 2021.
Figure 1. Number of Smartphone users (Statista 2020)
The evolution of mobile phones the last 20 years has been so rapid that the use and technology become obsolete every 2 to 3 years. A study made by Troeger, Hubner and Wieser (2017) found out through interviews that the use time of mobile phones is 2.7 years.
The reason why smartphone users replace their mobiles every 2 to 3 years might be interesting to investigate. One reason is the contract expiration, usually after 2 years that enables the user to get a new upgraded device by the carrier, in some countries. Another reason is that the technology becomes obsolete that does not allow the user to use the latest technologies and applications. The third reason is that the mobile phone becomes slower and has not enough storage for apps, photos and videos, therefor the user needs to get a new device that will match their extended needs.
Another reason for users needing an upgrade of their smartphone is the speed when reaching the internet. Right now, there is a shift between 4G and 5G. In order to understand better the difference, you can see below the Cellular Network Evolution through the years.
Figure 2. Cellular Network Evolution (www.micron.com)
The 5G has been highly anticipated by users but also from Entrepreneurs and businesses because it will open new horizons in using smartphones. All 5 Generations of mobile data services will be discussed further below and how each generation was utilized in mobile marketing.
Another perspective of the Mobile Data speed is represented in the following infographic that shows the 5 Generations of mobile data and the specific use per generation.
Figure 3 - From 1G to 5G and the uses
Evolution of Mobile Use – BS ( Before Smartphone )
The primitive and primary use of mobile phones was and still is to keep in touch with family and friends or to be reachable during emergencies trough phone calls. In order to make a phone call one needs to have a mobile number connected with a SIM (Subscriber Identity Module) that is unique for every user with the addition of the phone country code. Without a SIM card, there is no ability to make phone calls but only reaching for help in case of emergency by dialing a 3-digit number that differs from country to country or continent, eg in Europe the number is 112.
The first use of mobile phones as a marketing tool is called Telemarketing or Cold Calls. Cold Call is an incoming call that a consumer receives from a business entity in order to introduce the company, the products and services in order to initiate interest but also a purchase ( Markovitz 2012).
Crunchbase, an online platform that specializes in information on private and public companies has issued some interesting statistics regarding cold calls as can seen below in the figure 4. Summarizing what is in that study:
· 69 % of buyers accepted some sort of soliciting cold phone call from new providers.
· Average of 8 calls to reach a prospect
· Average of 6 calls are needed to win a sale
· Wednesday is the best day to make a cold call and Friday the worst.
Figure 4 - 10 Things about Cold Calling ( Crunchbase, ND)
The next achievement in mobile history was the SMS (Short Message Service). SMS is a short message of 160 characters that could be exchanged between 2 users with the help of the SIM card. SMS became popular in the early 2000 where the numbers of SMS sent in USA have been increased from 0.4 per person per month to 35 per person per month (Erickson 2012). Currently, SMS are being used by users when they do not have access to internet so that they can communicate with the world. SMS are also being used for promotion and marketing purposes including sending to consumers discount codes, special offers or information about new products and services. Currently, there are many online platforms that offer to business entities SMS Consulting and Services with Bulk SMS sending that targets specific group of people and markets.
The next evolution in mobile phones were the MMS or Multimedia Messaging Services. Similar to SMS, MMS works also with a SIM card and the use of the unique phone number. With MMS, someone could send pictures and different attachments, but it was costlier than the SMS and also it needed an upgraded mobile phone in order to do so. MMS were not very popular and users had difficulties sending and receiving them, therefor had not been utilized to the maximum ( Delaney 2007). Still, there are opportunities for MMS marketing because you can use different types of content including images, gifs, videos and audio clips (rarely used). Again, many online platforms offer MMS services because allows the enhancement of text messages with visual effects that will maximize impact and stimulate consumer’s interest on a product and/or a service ( Verma n.d).
Summarizing up, there are differences between SMS and MMS and can be concluded as below:
Figure 5 – Main differences between SMS and MMS ( Simpletexting.com 2021)
Evolution of Mobile Use – AS ( After Smartphone)
This primary urge for people to be connected with family and friends evolved through the years. The primary need of picking up the phone and calling family and friends, became secondary with the evolution of mobile phones to smart phones. The introduction of mobile internet and smartphones in early 2000 with the 3G Technology has brought a big change on how people communicate but also how businesses implement marketing. The transformation of a mobile phone to a smartphone brought a landslide of events that have initiated the big boom of the mobile internet.
The new Smartphones have introduced the fast internet and connectivity that enable users to be in contact with family, friends but also businesses 24/7. The speed of mobile data has been increasing as it is showcased below:
Figure 6. Speed of Mobile Data (Lonare.com 2020)
Another parameter in the evolution of the Smartphones is the evolution of the Wi-Fi which is the Wireless Fidelity or the WLAN which stand for Wireless Local Area Network. WiFi offers faster speeds that mobile data but it covers specific areas that a user has access.
The internet speed introduced new ways of using smartphones. This can be seen below:
Figure 7 – Evolution of Mobile Use ( Georgiou 2021)
The introduction of Smart Phones along with the increasing internet speed initiated an expansion of connectivity. More people are connected to the internet through smartphones now which means there are more opportunities for both the consumers and for businesses.
As you can see from above, the smartphone evolution brought new opportunities for individuals and businesses. Smartphones have new capabilities since they became more sophisticated and smart, resembling a tiny computer that enables the user to ( Al-Ismail 2014):
· Surf the internet
· Use the email function to send and receive emails
· Take photos and videos
· Share them on Social Media or with family and friends
· Chat and Video Call
· Use specific apps
· Shopping
· E banking
· Education
All the above have intrigue the interest of individuals and businesses to take these opportunities. Through creative and innovative ways, the use of smartphone is unlimited. Those opportunities have been analyzed in other chapters of this book.
BUSINESS
The prospects for businesses became limitless because of the access to bigger target markets. The first step for a business to be accessible is to create a website. A very important part when developing a website is making it mobile friendly. Creating a mobile friendly site is the key to success because the viewer needs to find the information needed faster. Finding the information faster, conversion will be faster as well.
Websites are an important marketing and promotional tool, therefor it needs to be planned and developed having in mind the target market and target group that the company is aiming. Websites need to be easily accessible and easy to navigate, especially for mobile users. Websites are a merchandising tool that informs the consumer about the products and the services that a company offers. Google created back in 2012 an initiative called GoMo for mobile friendly websites and included the following 10 best practices:
1. Keep it Quick
2. Simplify Navigation
3. Be Thumb Friendly
4. Design for Visibility
5. Make it Accessible
6. Make it easy to Convert
7. Make it local
8. Make it Seamless
9. Use mobile site redirects
10. Listen, Learn and Iterate
The GoMo initiative is no longer available by google but has evolved in services that Google offers online. One of them is a Mobile Friendly Test that can be found here https://search.google.com/test/mobile-friendly . Once you input the website link, google analyzes how mobile friendly the website is and will recommend different changes to make it more mobile friendly.
As the popularity of mobile phones, mobile technology and mobile connectivity evolves, mobile websites adapted new functions in order to accommodate consumer needs. A few of the new functions that websites have implemented are:
1. Fast loading information
2. Easy access to contact information
3. Integrate Social Media
4. Location Service
5. Touch ID
6. Wearable Technology
7. App Like Experience
APPS
An alternative to a website is a mobile application. A mobile application is a computer software / program that runs on mobile phone. According to Fisher (2019) the mass development and adaptation of mobile phones has created the need for business to develop mobile applications. Mobile apps will give to businesses the opportunity to connect and interact with consumers and eventually bring them new business.
Currently there are 2 major mobile operation systems, the Android by Google and the IoS by Apple. Both companies are offering mobile applications through their own platforms – Play Store for Google and iTunes for Apple. Microsoft and Amazon have also their own app stores but their role is quite minimal as you can see from the below chart, drafted by Statista:
Figure 8. Number of apps available in leading app stores as of 4th quarter 2020 (Statista 2021)
As can be seen in the above chart, Google Play is the leader in the number of mobile apps in their app store and Apple is second. This relates to the number of users each operating system has as you can see below form statistics that Statcounter drafted:
Figure 9. Mobile Operating System Market Share Worldwide (Statcounter 2021)
There are some interesting facts regarding Mobile Application uses based on the downloads for 2020 as can be seen below for both the App Store and Google Play.
Figure 10. The Most Downloaded Apps Worldwide in 2020 (Mikaeli 2020)
What can been seen from the above, TikTok was the most popular app for both platforms. Tik Tok is an app that users can make videos but the most popular feature is the “Duet” feature whre users can create videos with other people and share them (Herrman 2019). Tik Tok is popular in United States and Europe and in China, but in China there is called Douyin. In the above list, there are no statistics for game downloads.
The most important fact from the above is that Social Media apps were the most popular and most downloadable. Platforms like Instagram, Facebook and Whatsapp where among the most downloadable but also Zoom. According to CNBC (2020) Zoom became popular because of the Pandemic of Covid 19, where working from home was the new norm.
Types of Mobile Applications
There are 4 basic types of Applications as follows:
1. Device Apps – Those are apps that are helpful for your device and can include monitoring, tracking and any other functionalities that a mobile phone needs.
2. Functionality Apps – These are useful mobile applications offering different functionalities that will be discussed below.
3. Custom Utility Apps – These apps are custom made for a specific purpose, function and organization.
4. Game Apps – Applications for Gaming Purposes
Mobile Applications Steps
Many companies choose not to create an application because it might be costly to develop and implement but mostly might not be useful for the organizations. Another factor not to develop an app is that people are not using as many apps as believed are using. The average person uses 9 applications per day according to statista.com as you can see below. One of the most important factors in creating an application is to intrigue the customer to use the mobile application over and over again.
Figure 11. How many apps do we use? (kairostechnology.net)
There are different steps for Mobile Application Marketing as follows:
1. Development of the application
2. Offer Specific Functions
3. Produce content for the application
4. Pursue consumers to download it
5. Pursue consumers to keep it
6. Offer consumers special offers
7. Keep on updating content
8. Create Push notifications
9. Create loyal customers
1. Development of the Application
The first step in Mobile Application Marketing (MAP) is to create a mobile app. For some people, creating a mobile application will be a very difficult task, for others can be a very easy one. The 2 major platforms have their own Development Tools - Apple Developer Account and the Google Play Console that developers can design their applications. These platforms are very popular amongst Mobile App Developers with Extensive programming experience. People with no programming experience can outsource the development of the Mobile App and a designer.
A second option which is very popular is creating an app on online platforms that offer such services. According to the TechRadar website some of the most popular once are the few below, without the author endorsing anyone of them:
Those platforms are for free to use for testing and creating a draft application but in order to make the application available on iTunes and Google Play, you usually need to pay a fee for hosting your application on their servers. There are different plans depending on how many downloads will need for your application and the different functions that an application will have.
2. Offer Specific Functions
When creating a Mobile Application, there are unlimited functions that can be included in the application. As mentioned above, the type of the application will utilize specific functions in order to provide the consumer and the customer the necessary tools and information to drive a sale.
Some of the most common categories include but not limited to:
1. Social Media – This will provide links to your current Social Media Channels individually or as feeds
2. Forms – This can include Contact Forms, Google and SharePoint Forms or Custom Forms that Organizations can collect information about the customers and target market. This can include surveys that can provide to the Organizations useful information about customer satisfaction and needs.
3. Galleries – This can be a combination with both the Social Media Feeds but also uploading pictures for promoting products and services
4. Media - There is the possibility here to include own Videos or links to Video Channels like YouTube, Vimeo and any other video platforms. In the Media can be included Audio Lists with Music or Podcast as well as Radio Station links.
5. Feeds – The most popular feed is the RSS feeds or Really Simple Syndication. According to Digital Trends website, RSS feeds are simple text files, that are updated regularly and offer audience information that includes news, trends and can be also utilized in promoting products and services.
6. Ecommerce – This might be the most valuable function for companies that they are targeting sales through the mobile applications. This function can include an online store that consumers can view but also order products and services. This function can be also used as a reservation platform for Restaurants and Hotels.
7. Utility – This functionality can include unlimited functions and can include Inventory Management, Delivery Tracking, Mobile Marketing and loyalty programs.
8. PowWow – This is a platform available to mobile app developers and platforms that offer unlimited function to a mobile application. This can include all of the above but also specific functions related to specific industries, products or services.
Creating Content
Creating Content is the ability to captivate the consumer and intrigue the interest in order to proceed to buying. Based of the major features mentioned above, always the contend needs to be mobile friendly. Here are some tips in creating content for the mobile app:
1. Keep the navigation simple
2. Always keep in mind the target market and target group that the organization is aiming.
3. Create posts that are mobile friendly since users are accessing it through their mobile phones
4. Allow customers to give you feedback and measure customer satisfaction
5. Integrate Social Media Channels but always keep in mind to diversify the content based on the channel and the target group.
6. Take your visual presentation to a higher level. Use images that are sending the right message without a lot of wording. Use attractive icons that can help the message to stand out.
7. Videos should be short that send a clear message.
8. Share feedback and stories from users. This can be in text base feedback, a video testimonial or a combination of both.
Pursue consumers to download it
Once the mobile application is being develop, the next step will be to pursue consumers to download it. According to the AIDA Model for advertising, there are 4 steps that needed to be followed – Awareness – Interest – Desire and Act as seen from the model below, drafted by 24point0.com
Figure 12. AIDA Modem for Advertising (www.24point0.com)
1. Firstly, the application should be developed to be compatible for both the most popular operating systems – Apple iOS and Android and available on both iTunes and Google Play stores.
2. Define the target market so that the promotion strategies will be specific to the intended market. The target market should be specific to location and demographics (gender, age, education etc)
3. Start promoting it before launching so that the consumers are aware about the existence of the new mobile application.
4. Use existing data base but also collect subscribers through a contact form on your website or Social Media so that they can be informed when the application is ready to be downloaded.
5. Include the links for the download on the company’s website
6. Promote the application on your Social Media, with posts and stories.
7. Create videos and explain the features and why to download.
8. Give incentives so that people can download it. For example, offer a discount with their first purchase when the download the application.
9. Ask the people who have downloaded it already to share it on their social media and promote it to friends by giving them a reward.
10. Get feedback from the consumers they have downloaded it already in order to fix bugs but also to include new features specific to the customer needs.
11. Read and reply to the comments made on iTunes and Google Play stores
12. Use Key Words in search engines like Google, Bling, Yahoo so that users can find you when they are looking for something like yours.
13. Promote it through paid advertisements through Google Ads or on Social Media channels and other available platforms. Always keep in mind to promote it to the specific target group and market.
14. Use Location targeting in order to get closer to the target market
Once consumers have downloaded the application, the company needs to give reasons to the consumers to keep it and return back in using it. As was mentioned before, the development of an application might be costly and time consuming, therefor you need to motivate consumers and customers to keep on using it. In order to keep customers coming back the company needs a strategy that will follow closely but also amend in order to reach the goals that are planned. A study by Google shown below, analyses the reasons why users are abandoning the mobile applications:
Figure13. Reasons for App Abandonment (marketingland.com 2016)
As can be seen from above there are 2 parameters for uses to abandon mobile applications, application / technical related reasons, or/and personal reasons. Therefore, the application and technical reasons can be solved by creating an application that it is easy to navigate, includes the necessary features, does not include 3rd party advertisements and follows the current specifications of the mobile phones as some of these have been discussed earlier in the development of the application.
The most important reason for abandoning the application is that users do not need the application anymore. Therefor, the company needs to give many reasons for the user to utilize the application, by creating a specific marketing plan on how to give extra value to the customer. There are many strategies that can be utilized in pursuing the users to keep the apps as will be discussed below:
1. Update the content regularly so that users are willing to come back
2. Engage users by asking them to participate in simple or specific activities that will give them something in return. This will create loyalty
3. Get feedback, analyze it and act
4. Use Push Notifications to inform the users for new products and services.
Loyalty
One of the most important reason for users to keep the application is to get something in return so that they can become loyal customers. Loyalty is the commitment that is built between a customer for a brand, product or service that enables the customer to re patronize without the need of marketing ( Oliver, 1993).
Mobile application loyalty is important so that the user will keep on using the application firstly but mostly so that they will make purchases. Loyalty will grow with user’s engagement therefor the organizations need to create a marketing strategy solely for the mobile app users. There are many ways to keep your users engaged and will be discuss below.
1. Make a strong first impression. Your application should be sleek and easy to navigate, so that customers will easily find what they are looking for.
2. Offer help in navigating the application
3. Initiate an efficient onboarding process, meaning that reduce the steps in creation of an account and log in and include multiple registration options that includes already created accounts in Facebook, Google and other platforms.
4. Do not ask for too much personal information
5. Differentiate the mobile application environment from the website
6. Create a two-way conversation with the app users, by giving them space to give feedback and ask questions
7. Track and Trigger actions and reactions every time a user opens the application. Offer them special messages but also mobile only offers for purchasing for the specific day
8. Post fresh content so users will want to come back to see what is new
9. Update it in order to fix bugs but also include features that the customers are asking for
10. Use Push Notifications - Push Notifications are instant messages that can be send to the mobile application from the main server or from paid platforms that are available online. PN can include messages but also media that will trigger the use of the application. In order to get those messages, the user needs to enable the notifications for that particular application, therefor the user needs to be notified when installing the application that the notifications should be turned on. PN can make or break the user’s engagement. Too many PN can trigger the uninstallation of the application by the user. Keep them also short and simple, 20 to 90 characters yield the highest Click Through Rate (CTR).
PN need to be timely, personal and actionable. Timely can be on a specific time of the day, based on the user’s behavior, location or preference. Users behavior differ based on demographics therefor PN need to be send different times of the day so that they can reach a higher CTR.
Personal can be based on the user’s profile and previous purchases or searches. Using the name of the user can be a very personal touch that will trigger action. Utilize “rich” PN that includes colors, graphics, emojis and special characters can trigger different behaviors than without.
Actionable that makes clear what the next action-step is. Time sensitivity is important which gives the user a specific timing to act in order to get a special offer. Utilizing words like, sale, discount, only today, offer ends soon, last pieces left will end up in more action triggers.
PN should be incorporated in the company’s marketing plan and needs to be monitor constantly. Mobile engagement should be also monitored closely by looking at the numbers of application downloads or un installments but also how many launces are made every day. There are different statistics that need to be measured and decisions to be made accordingly as seen in the graph below by Cleveroad.com.
Figure 14. Mobile App Engagement ( bestengagementceremony.blogspot.com 2020)
Mobile Marketing
According to the Mobile Marketing Association (MMA) mobile marketing is diffreent strategies that allow organizations to engage and communicate with consumers and customers through mobile devices(2009). The biggest difference between mobile and desktop Social Media Marketing is the location based advertising. Mobile phones with their Global Position System (GPS) can offer location specific opportunities to locan businesses.
There are many opportunities for organizations to utilize Mobile Marketing and will be discussed below.
MOBILE SOCIAL MEDIA MARKETING (MSMM)
Social media marketing is the utilization of Social Media Channels for marketing and promotion purposes. As can be seen from below, users are spending more minutes to reach Social Media through mobile phones. In 2020, mobile users are spending average 145 minutes on mobile phones to reach Social Media (Statista 2021).
Figure 15. Daily time spent on social networking by internet users worldwide from 2012 to 2020 (Statista 2021)
The fact here is that users spend more time on their mobile phones to reach their social media channels that from desktops. Therefore there are many opportunities for companies to reach consumers and promote their products and services though Social Media Channels, such as Facebook, Instagram, TikTok, Twitter, LinkedIn, YouTube, Pinterest and many other channels. Those mention channels are the most popular around the globe. Please take in consideration that in some specific countries, like China (WeChat) and Russia (VKontakte) there are some local Social Media channels that need to be taken in consideration when planning a Social Media promotion for Mobile phones.
In order to utilize Mobile Social Media Marketing (MSMM) a company needs to have a Social Media account or accounts. The most popular channels have been discussed earlier so below there will be hands on information on how to take the opportunities for MSMM.
There are many benefits in MSMM as has been analyzed by Ibrahim and Ganeshbabu (2018) and will be discussed below:
1. Social Media is a powerful tool because users are sharing information about products and services by using #hashtags as well as @brand names. This will increase brand awareness and branding since the users circulate the information amongst their followers.
2. Social Media is also referred as the E-word of mouth that leads to higher trust and loyalty. This is free marketing that will lead to an increase of the followers for the brand.
3. All this shared information about products and services will boost the Search Engine Optimization because the more people talk about you the more likely your website will go up in the rankings of SEO.
There are many reasons why companies need to Integrate the Mobile Social Media Marketing in the Marketing Strategies because:
1. Most users are reaching for their Social Media channels through mobile phones.
2. Another important factor in MSSM is the GPS feature on the mobile phone that discloses the location position of the user. This enables companies to gain marketing research information about consumers because it is easy to see where the users where, what they consumed or bought but also information about their demographics ( Yadav, Joshi and Rahman 2015)
3. Marketing communications through the GPS function, where users can receive specific messages on their Social Media Channels when there in specific locations. This will enable them to trigger an action, which will might be a purchase or a reaction on the Social Media Channel. The reaction on their channel will inform their friends, therefor this action can become viral, like a chain reaction.
4. Many companies offer discounts and sales promotions through coupons that are available when the user reach a specific location where the store is in the proximity of the user.
5. Users can connect their Social Media account with their Customer loyalty accounts, so that with every purchase a post will be uploaded on their account that will be informing the followers.
There are 3 ways for organizations to utilize Social Media advertisements. The options offered to organizations are:
1. Through the Individual Social Media platform, like Facebook, Twitter etc. (links will provided below)
2. Hiring a third-party online platform that can handle all your social Media Advertisement
3. Hire a Marketing Consultant
All social Media platforms have their own advertisement portal where organizations can reach for SM advertisement. There are different plans that can be purchased that can be specific to location, time, target market. Below, there are the major Social Media direct links for MSMM:
· Snapchat
· TikTok
· YouTube
Third party companies are online platforms that offer companies a variety of mobile marketing plans, tools and pricing to utilize based on geographic location, target market and target group. There are many online platforms that provide companies and individuals full support in multi-channel promotions through different Social Media channels and these are a few below which the author does not endorse:
1. Taboola
2. Singular
3. Applovin Max
4. Falcon
5. Myapp Free
Before a company chooses a platform for Social Media Mobile Marketing Strategies, needs to implement a check on the company. There are many companies out there that they offer a variety of services at different price levels. Keep in mind the following when choosing an online platform:
1. Your budget and how much money you are willing to pay, since there are so many different pricing plans that offer a variety of services. Monthly plans can start with $50 or lower up to $500 or more depending of the plan and the company.
2. How popular the platform is, meaning, do a back up check up of the company, check what other firms and brands is managing
3. Some companies will you give a free trial, therefor take the opportunity to test the services they provide during this free period and measure the results.
4. Check the services they provide, because many platforms integrate also email marketing, product page galleries, shoppable galleries that triggers more sales.
5. What reporting is being provided at the end of specific periods that can be daily, weekly, monthly.
These are some of the best practices when implementing Social Media advertisements:
1. Match the content with the Social Media profile and target group
2. Invest in the cover page of your Social Media channel but also in the description
3. Always have up to date posts on Social Media channels
4. Provide an action or give incentives to engage
Mobile Application Advertising
One of the easiest marketing strategies for mobiles is implementing advertisements for mobile phones, which is an advertisement that appears on websites, social media and mobile applications. Those advertisements are paid advertisements and appear in most websites and social media based on the previous behavior like search history, navigation and purchases. Other forms of mobile ads can be SMS, Push Notifications and ads in Chat applications. Company applications will never have third party advertisements but only free applications like game apps include ads because this can be a source of income for the developer.
Mobile ads work similar to Desktop and Social Media ads as discussed above and in other chapters. The number one platform for mobile advertisement is Google Ads but also there are other companies that provide such services. Ads show usually at the bottom of the screen, or sometimes will cover the screen for a few seconds or minutes and then will go away. The positive aspect of the mobile ads for a company is the function called Pay Per Click (PPC), meaning the company is being charged only when the consumer clicks on the advertisement that will lead them to the advertisers website, the play store or to guide them in triggering an action (purchasing, taking part in a competition, etc). The PPC enables the companies to control their budget and how much money are willing to spend for a specific timeframe or promotion strategy.
These are some of the best practices for mobile ads:
1. Go beyond banners and incorporate pictures, emojis and videos
2. Target the audience based on demographics and location
3. Connect the advertisement with your Social Media Channels
4. Always provide an action for the user to react
5. Implement the correct image dimensions
6. Stick to a consistent schedule.
Mobile Royalty Programs
Customer Royalty is the result of customer satisfaction that will lead in re purchasing products and services from a specific brand. There are 2 types of customer royalty, behavioral and attitudinal. The first is related with the re purchasing of products and services form a specific brand , where the ladder is the psychological connection with a specific brand or company (Tabaku and Zerellari 2015).
Customers are looking for more personalized and customized services now and successful Customer Loyalty programs should provide customers the necessary information and rewards in order to keep them onboard.
Customer Royalty is very important for the following reasons:
1. Loyal Customers spend more than first time customers
2. They will produce higher convention rates
3. Will boost profits
4. There is less cost to retain an existing customer that gaining a new one
5. Loyal Customers are the best promoters for a brand or a company
6. Will help the company in having an effective planning because there is anticipation of growth
The latest trend in Customer Loyalty is creating a connection with mobile applications. There are many Customer loyalty applications that will help brands and organizations manage their loyalty programs and their customer portfolio. There are two types of Customer Loyalty applications, the ones that have been created by a company that utilize also sales, for example Starbucks, or mobile applications that provide customer loyalty services for a specific fee. Most important function in those applications is to increase customer satisfaction and revenue by staying constantly and consistently engaged with the customers.
As can be seen from the above expanding the loyal customers pool is crucial for the success and the viability of a business and a brand. Customer Relations Marketing / Management software are desktop applications that provide useful information but also manage the customer database. Nowadays, those loyalty programs became mobile and are available for mobile devices as well. This is a break through in technology and in service provision because consumers are connected with their loyalty programs 24/7/365. This enables the organization and brand to be constantly connected with their database but also knowing exactly their behavior patterns.
There are numerous opportunities in Mobile Customer Loyalty Applications (MCLA). Those programs should have a win-win strategy for both the business and the customer. As was mentioned above, Loyal Customers should be considered as the backbone of any successful business, therefor those programs will need to be customer centric. The most common functions that can be found in MCLA apps are shown below:
Figure 16. How loyalty apps bring customer loyalty (gbksoft.com)
Those MCLA provide different services to customers and will be discussed below:
1. Keeps track of the customers’ base and their post purchase history
2. Rewards them every time they make a new purchase with points, money returns or extra products and services which will lead to improved customer engagement and loyalty
3. Based on their previous interactions and purchases, the application would provide recommendations for future purchases
4. Customers are always connected with the brand
5. Send personal messages and wishes on birthdays, anniversaries and holiday.
6. Customers can buy straight from the application which is cheaper for the company
7. Enables the organization to get constantly feedback from the clientele. This can help the organization in two ways. The first one will be that of handling any complaints the customer has, leading to higher customer satisfaction. They other aspect will allow the company to make decisions on future products and services development based on customer’s feedback.
8. Organizations can win back customers that they moved away from the brand by offering them specific rewards as they return back.
9. Promoting new products and services through location-based push notifications
10. Customers can share experiences that will spread awareness to the other members of the loyalty program, and lastly ,
11. Acquire new customers because they will realize of the opportunities that the CLMA will provide.
All of the above are very important for the organization because they will be able to manage their current customer base, provide them with extra services that will leady to satisfaction but will also enable the brand to acquire new clientele. At the same time the above are important for the customers because at the same time they get personalized experiences that will eventually lead to customer satisfaction.
Augmented Reality
Augmented Reality (AR) is augmenting a physical scene into digital one and includes sound, images and text. (Siriborvornratanakul, 2018). AR can be utilized in mobile technology and specifically in mobile applications in order to enhance customer engagement, by providing a unique experience to the user. There are many ways to utilize AR for marketing and promotion as can the technology offers diverse opportunities to increase customer experience and engagement:
1. Allows the consumer to try something out before they buy it. For example, consumers can model and try clothes, makeup, furniture and many other products and can see how the product looks on them or on a specific space at home.
2. Augmented touring and assistance. This is very popular in museums where users can scan a Quick Response (QR) code and get more on specific exhibits but also assist them in touring different premises, including stadiums but also tourist destinations. Users can take a picture of a specific building in a destination and read about the history of the particular building or area, but also give users suggestions for different establishments in the area (restaurants, hotels, bars, etc)
3. Augmented branding material. QR codes are being scan and offers the consumer a variety of choices, videos, information, pictures that can be very helpful in making a purchase decision.
4. Creating a buzz around a brand or a company. There are many creative and innovative ways to use AR in order to get people to react with the brand. This provides fun to the user but also this might become viral by sharing it on user’s Social Media Channels.
5. B2B mobile marketing. Sale representatives can showcase how a particular furniture or equipment will look in the client’s office or working space.
6. After Sales Support. Users can get instructions and technical support remotely that make the customer service more interactive and responsive that will lead to higher customer experience and satisfaction.
7. Augmented Reality Events and Concerts, where an artist’s hologram is created and users can watch it on their mobile phones.
As the technology changes faster that before, it is expected that AR will be one that will move ahead with new uses. As can be seen form above the AR Technology is so diverse that will continue to grow and offer a variety of opportunities to business to utilize for mobile marketing. As can be seen below, a study by Qualcomm, showcases the future. A big advantage of the AR will be the combination of then AR and the 5G technologies because of the fast responses between On-device processing and Cloud Computing.
Figure 17. Augmented Reality future (Qualcomm.com/blog 2020)
Wearable Technology (WT)
Wearables are any accessories including watches and clothing that incorporate computing capabilities and can be connected with other devices (mobile phones) or internet (Wilson and Laing 2018). Mobile phones are also considered wearables but in this case only smart watches will be discussed, since there was an extensive discussion on mobile marketing in previous subchapters. There are many major brands that invested in smartwatch technology including the 2 big players Apple and Samsung, but there are also other players such as Garmin, Huawei, Xiaomi, Oppo. As this is an emerging industry, watch companies like Tag Heuer, Tissot and Montblanc are creating their own branded smartwatches as well.
The wearables connect users with internet constantly, therefore are also connected with businesses. It is safe to say that users reach more times on their wearables for checking their notifications that makes it harder to miss a message or an email. This is an opportunity for businesses because users can react faster on messages and information transferred where at the same time marketers can have quicker access to data like conversion rate.
There are 4 areas that wearables are being utilized now, but there will be more uses in the future (Wilson, Laing, 2018):
1. Health care that measures and transfers information to cloud
2. Sports, fitness and well-being that gives real time statistics
3. Workplace that monitor occupational activity
4. Fashionable wearables that enhances the users appearance
Wearables are growing as the technologies grow and the internet speed becomes faster. There are so many opportunities to be utilized by businesses. These are some examples of how wearables will shape the future marketing strategies:
1. Two – way communication becomes faster, therefor short messages can be sent to the users and will be received and acknowledged faster
2. Voice searching and chatbots, give users faster access to information and support
3. Businesses can collect data, based on user’s behavior with geotagging that gives opportunities to implement location-based marketing and promotions.
4. Wearable applications that bring users closer to the brands with higher conversion opportunities.
One of the biggest challenges in wearable technologies is keeping the users informed and engaged at the same time. Marketers need to become more creative when sending information and promotion material, because too much information might be too much for the users and will not work as was intended in the first place.
Examples of outstanding Mobile Marketing
In order to comprehend better what is mobile marketing and what other companies are doing, here are some examples of how companies are utilizing mobile technologies and mobile marketing in their Marketing strategies:
· Ikea introduced a mobile application catalogue which allows the users to model and preview the furniture they like in a specific place in the room which this is part of Augmented Reality
· Starbucks offers within the application mobile order and pay, where users can create and pay for their order. The application also offers recommendations based on previous purchases or new products, but also rewards users with each purchase they do. Starbucks utilizes most of the opportunities in mobile marketing, by informing users about new products and services, offering them purchase options and includes their loyalty program in the same application.
· Many franchised restaurants, like Taco Bell, Pizza Hut, Dunkin’ Donuts utilized location based SMS promotions to promote special offers in specific areas.
· Airlines, like KLM, EasyJet and many others offer through their mobile apps information about discounted offers, destinations and vouchers. Users can purchase tickets and also check in through the application. Lastly, the application offers valuable information through push notifications about flies that the users booked including gate numbers and delayed information.
· Hilton Hotels offers a variety of services through their mobile application, that includes booking a room with virtual checking in and keyless entry in rooms (available in some properties). At the same time the app works as a rewards platform as well as a push notification channel where users get specific information based of their previous behaviors.
· A successful case can be also the mobile application that the author created for the Hotel School he works in. The application includes features like timetable, email access, Moodle access and Social Media Feeds. There are also RSS feeds to current industry news as well a reservation system so that the students can book a table for lunch in the training restaurant. Lastly, through Push Notifications, students are being informed about events, cancellations and news.
Outlook for the Mobile Marketing
As was mentioned earlier, the new technology of 5G and always connected experience will continue growing the mobile marketing opportunities for businesses. There are many more to come, therefor companies need to be alerted, innovative and creative in order to be successful. There will be many more prospects in the future and these are some of the opportunities that need to be tackled:
1. Location-based marketing will be essential in effective targeting of consumers
2. Artificial Intelligence and Augmented Reality will be used daily and will give more opportunities to businesses to do marketing online
3. Increase of wearable users will increase the need of wearable marketing strategies for any business that like to stay atop of the competition.
4. Chatbots will continue to grow that will offer mobile users accurate and up to date information fast.
Mobile Marketing is here to stay and expand. There are numerous opportunities with the combination of mobile technology and fast internet that will give unlimited prospects to marketers. Innovation and Creativity are the most important factors in tackling mobile marketing. The use of mobile marketing is expected to continue growing, therefor the future is wearable and mobile. The companies that will implement Wearable and Mobile marketing strategies will be the ones to win the consumer and eventually the competition. Mobile apps will become Super Apps where customers will be able to implement many functions including purchasing, support, loyalty and many more. The fastest the internet connection the higher the engagement for the consumer. The 2 way communication will be swifter and the customers will receive quickly, accurate replies and resolutions, leading them to higher conversion rates but also customer satisfaction and customer loyalty.
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LIST OF TABLES AND FIGURES
Figure 1. Number of Smartphone users - https://www.statista.com/statistics/203734/global-smartphone-penetration-per-capita-since-2005/
Figure 2. Cellular Network Evolution - https://www.micron.com/insight/5g-ai-and-the-coming-mobile-revolution
Figure 3 - From 1G to 5G and the uses - https://twitter.com/5gbarcelona/status/1189150444398043136
Figure 4 - 10 Things about Cold Calling https://about.crunchbase.com/cold-calling/
Figure 5 – Main differences between SMS and MMS https://simpletexting.com/mms-sms-how-are-they-different/
Figure 6. Speed of Mobile Data https://www.lonare.com/5g-will-be-only-available-for-businesses-initially/
Figure 7 – Evolution of Mobile Use ( Created by Author - Georgiou 2021)
Figure 8. Number of apps available in leading app stores as of 4th quarter 2020
https://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/
Figure 9. Mobile Operating System Market Share Worldwide https://gs.statcounter.com/os-market-share/mobile/worldwide
Figure 10. The Most Downloaded Apps Worldwide in 2020 https://appfigures.com/resources/insights/most-downloaded-mobile-apps-2020
Figure 11. How many apps do we use? https://kairostechnology.net/mobile-app-download-and-usage-statistics-2021/
Figure 12. AIDA Modem for Advertising https://www.24point0.com/aida-model-examples/
Figure13. Reasons for App Abandonment https://marketingland.com/report-91-percent-use-abandoned-apps-disliked-issues-addressed-200249
Figure 14. Mobile App Engagement https://bestengagementceremony.blogspot.com/2020/01/mobile-app-user-engagement.html
Figure 15. Daily time spent on social networking by internet users worldwide from 2012 to 2020 https://www.statista.com/statistics/433871/daily-social-media-usage-worldwide/
Figure 16. How loyalty apps bring customer loyalty https://gbksoft.com/blog/benefits-of-a-mobile-loyalty-app/
Figure 17. Augmented Reality future https://www.qualcomm.com/documents/mobile-future-augmented-reality