Cmos and the mobile imperative

More than a marketing channel:
CMOs and the mobile imperative

A

Local-based services QR codes Personal emails GPS
Social networking Web browsing Blogs Video
WiFi ©TNS 2012 wallet
Mobile Online purchase E-tailers
Applications

Contents

1
Acknowledgements 04

2
Introduction: the mobile imperative 06

3
Overview: the game changer 12

4
Changing face of the mobile brand 16

5
Mobilising the path to purchase 26

6
A new way to pay 36

7
Leveraging mobile loyalty 44

8
Executive summary 48

9
About the author 50

2 tnsglobal.com © 2012 TNS 3

08
1 Acknowledgements
Many thanks to MaryLee Sachs for conducting these interviews
and to all our contributors:

Jack Armstrong Mike Hogan
BASF GameStop
Chief Marketing Officer Chief Marketing Officer

Paul Berney Mike Hornigold
Mobile Marketing Association The Coca Cola Company
CMO & Managing Director EMEA Director of Emerging Shopper Technologies,
Global Shopper Development
Laurence Bresh
Visit Britain Lauri Kien Kotcher
Global Marketing Director Godiva
Chief Marketing Officer
Doug Busk
The Coca Cola Company Nicolas Maurer
Mobile Brand Strategy, Beiersdorf
Global Connections Chief Marketing Officer

Hugh Chambers Tricia Nichols
British Olympic Association Gap
Chief Commercial Officer Global Lead Consumer Engagement,
Media Strategy & Brand Partnerships
Wendy Clark
The Coca Cola Company Simon Sproule
SVP Integrated Marketing & Capabilities Nissan
CVP, Global Marketing Communications
Jim Gurke
Getty Images Joanna Wang
Chief Marketing Officer L’Oreal
CMO, Greater China


2

Introduction: the
mobile imperative
Significant opportunities emerge
when a brand is invited into
a consumer’s mobile world.
However to gain entry (and to
remain relevant enough to stay
there) a brand must continue
to deliver against one or more
of the core consumer needs
that mobile is particularly well
suited to addressing: Experience,
Independence, Convenience,
Relevance and Reassurance.
(Key finding from TNS Mobile Life study)

Introduction:
the mobile imperative

for CMOs. Achieving it requires an
Simon Sproule, integrated response from across their
CVP Global Marketing Communications, Nissan businesses, embracing mobile as a key
“What mobile represents to us element of their business model rather
now is a business imperative. It’s than simply another marketing channel.
no longer a kind of, ‘oh we should
do something’, now it’s ‘we must In this report we look at the response of
do something.’ And now it must CMOs worldwide to the challenges and
be part of how we go to market opportunities that mobile represents.
and how we execute all of our Our conversations with them reveal a
communications.” strong sense of opportunity, an urgent
need for experimentation and learning
and an inherent optimism regarding
The TNS Mobile Life study for 2012 mobile’s potential. They also show how
proves that the home-screens of mobile the demands of mobile are broadening
devices are becoming one of the most the roles of CMOs themselves. For
valuable pieces of real estate in the leading brands, crafting a compelling
battle for consumer hearts, minds and mobile proposition is rapidly becoming
share of wallet. The stakes are high, a business imperative rather than simply
given mobile’s potential to undermine a marketing challenge. Focus is already
traditional sources of brand and retailer shifting from stand-alone marketing
power and the competitive advantage solutions and native apps to the
for those able to leverage it effectively. optimisation of core web platforms,
Crafting a brand proposition that can and the role of mobile as a broader
earn them a regular role on consumers’ business enabler.
phones is rapidly becoming a priority


Local-based services
Social networking
WiFi A
Applications
QR codes
Web browsing
Mobile wallet
Personal emails
Blogs
Online purchase
GPS
Video
E-tailers


3 Overview:
the game changer

Tricia Nichols,
Global Lead of Consumer Engagement, Media Strategy & Brand Partnerships, Gap

“We see mobile as the future of our business. It’s a tool of convergence that
not only helps us bring bricks and mortar and e-commerce closer together, it
becomes a tool to connect consumers with our brand and stores in a deeper
way, adding value to the Gap experience.”

Across our CMO interviews, a number It’s early days – and there
of key themes consistently emerge as to is still a long way to go
how businesses are looking to develop
For some businesses, mobile is already
the mobile opportunity:
seen as the number one digital channel
Mobile is a step-change and touchpoint, but for many, delivery
opportunity on mobile’s great promise remains a long
way from being realised. Consumers
More than another digital channel or
may be giving mobile a central role
device, there is universal agreement
amongst CMOs that mobile is a genuine in their lives, but their experience of
step-change opportunity for their brands’ mobile offerings is often one
business. Mobile offers a direct, intimate of frustration. Businesses are in a
connection with individuals, it can move learning phase when it comes to mobile.
unbanked consumers out of the cash- However, the competitive nature of the
only economy and into the mainstream, mobile space means they cannot afford
and it enables brands that previously to wait to learn the lessons before rolling
relied on retail distribution to connect out solutions.
directly with customers.


Overview:
the game changer

Watching and waiting are. Meeting this expectation requires
is not an option new thinking throughout the business –
not just in engaging consumers,
Experimentation is central to our but in delivering every element of the
CMOs’ approach to mobile, with a firm customer experience.
emphasis on ‘learning by doing’ across
marketing and business operations. In the following chapters we will look at
This confirms that the mobile how these themes are shaping CMOs’
opportunity is in its early days – but also response to mobile throughout the path
testifies to the sense of urgency that to purchase, from reach and engagement
CMOs feel. Consumers are demanding (where mobile is already a well-
solutions and experiences that fit their established feature of brand marketing
own fast-evolving mobile habits. CMOs plans) to shopper marketing, mobile
have decided that the best approach is payments, distribution relationships and
to trial mobile solutions and explore in loyalty, where the capacity of mobile is
real-time what they can deliver for their only beginning to be explored.
business and its customers.

Mobile is far more than Paul Berney,
CMO & Managing Director EMEA
a marketing channel Mobile Marketing Association.

Like online before it, mobile started life “Understanding how far and how
in the marketing department before fast to deploy a mobile strategy is
filtering upstream to innovation and one of the biggest challenges facing
product development, and downstream all brands today. The reality is that
to shopper marketing, retailing, consumer adoption of the mobile
relationship management and loyalty. channel is moving at a faster pace
The big difference is the speed at which than marketing activity and brands
this broadening of its role has taken
need to move to close this gap”.
place. Consumers expect the brands in
their lives to be as mobile-ready as they


4 The rich interactive experience
of today’s mobile technologies
is empowering millions and
enabling more highly-personalised
experience of the real world.
This makes mobile of crucial
importance to businesses across

Changing face
every category. So understanding
consumer mobile behaviour and

of the mobile brand formulating a mobile strategy
is now a business imperative.
Significant opportunities become
available when a brand is ‘invited’
into a consumer’s mobile world.
However to gain entry, and to
remain relevant enough to stay
there, a brand must continue
to deliver against one or more
of the core consumer needs
TNS MobileLife has identified:
Experience, Independence,
Convenience, Relevance and
Reassurance.

Changing face of the mobile brand

General marketing, specialist agencies
Simon Sproule, Many CMOs see the interplay of mobile
CVP Global Marketing Communications, Nissan and TV media consumption as evidence
“Mobile has emerged faster than of the need to integrate mobile activity
most marketers believed possible. with broader brand campaigns and
Frankly, I think we’re now in manage the mobile channel from
catch-up mode because it has within a central marketing function.
moved faster than many brands However, the fast-evolving nature of
expected it to.” mobile technology and the challenges
of developing creative for small screens
have ensured continuing demand
Mobile’s role in brand marketing is well for specialist mobile agencies. These
established but already evolving. CMOs specialists have thus far resisted a trend
treat mobile as a natural extension of amongst CMOs to trim digital agency
brand marketing campaigns, albeit rosters and consolidate work into full-
one often currently executed through service shops.
specialist agencies. However, larger
Such specialist knowledge remains
strategic questions are starting to
sought-after largely because of the
emerge about the most effective mobile
executional challenges that mobile poses:
platforms for brands. A debate is
a smaller creative canvas, uncertain reach
brewing over the relative importance of
for mobile video, and the difficulties of
stand-alone apps and mobile-optimised
adapting creative from other channels.
websites, with many brands turning to
However, a more fundamental question
established social media platforms as an
facing CMOs is the issue of which brand
alternative to building an effective mobile
platforms should be prioritised when it
presence.
comes to engaging consumers in the
mobile space.



Branded apps versus optimised mobile web-optimised content. Few The device-deployed app still has those of Twitter, Facebook, Linkedin,
for mobile-web marketers deny the reality of the potential. The ability to draw more Google Wallet, Foursquare, Pinterest
branded app junk-yard, the long tail extensively on smartphones’ native and YouTube.
Alex Schleifer, of the app stores, where thousands of capabilities such as location, video,
General Manager, Media Lab, SAY Media carefully developed and well resourced photos and contacts offers a clear Tricia Nichols,
apps go to die after enjoying less than route to deeper consumer engagement Global Lead of Consumer Engagement, Media
“People’s behaviours are definitely and value. For the CMO though, apps Strategy & Brand Partnerships, Gap
a thousand downloads each. Even the
changing. We just feel it’s best must be aligned to a core brand idea
most compelling branded app needs “We believe in an integrated
to invest in the mobile browser in order to warrant multinational scale
awareness in order to reach critical approach. So the marriage of
first, and the app stores later. It’s investment. Brands with an obvious role
mass – and many do not enjoy the mobile to other platforms is very,
all-inclusive and mostly system on mobile devices or which have rich
integrated marketing support required very powerful in our eyes.”
agnostic. It also feels a little content available, may find themselves
to achieve this.
strange that we should go back to better-suited to an app-based approach.
a model where everything needs For others, dedicated apps may play a The interplay of social and mobile
Increasingly influential voices make the in particular, provides CMOs with a
to be installed. The browser is a role in particular, integrated campaigns.
case for the mobile browser as a more means of reaching mass audiences
pretty perfect content delivery As a rule though, CMOs see apps as a
effective and efficient platform than the instantaneously. The Mobile Life study
platform. Apps have a place, and need that requires proving rather than
branded app. However, the challenge of points to the inseparable nature of
they’ve completely changed the an assumed solution from the outset.
optimising existing websites represents mobile and social worldwide – and the
software landscape, we just don’t
a significant investment in time and Platform partnerships and the age perception amongst CMOs is that mobile
believe everything should be
budget. Responsive web design, which of mobile ‘+’ social has treated social to a course of steroids.
an app.”1
detects the type of device used to access Platform partnerships are emerging as

40%
1
as quoted by Justin Ellis, Niemanlab.org, 10 July
a website and serves a mobile version a major area of focus for CMOs – and
2012 Moving Mobile – ReadWriteWeb choose
responsive design over native iPhone app when appropriate, is still in the early a solution that can provide breathing
stages of development for most. Smaller space whilst owned digital platforms
Only recently seen as ‘must-haves’, and nimbler businesses have been able are optimised for mobile. Many refer to
apps are increasingly viewed by CMOs to take a more aggressive position in the potential for improving reach in the of consumers with mobile Internet
needing to earn their place alongside this area. mobile space through partnering with access check their social networking
pre-existing mobile platforms such as sites via their mobile every day.



The focus on social ‘+’ mobile is strongest What does a mobilised consumer marketers aware of the potential risk
amongst brands targeting younger Jim Gurke, experience look like? of undermining brands in the process).
CMO, Getty Images
consumer segments, which over-index In addition to the challenges of However, our interviewees attested
heavily on both social and mobile “Mobile has forced many marketers executing within the mobile space, to the value of tactical approaches,
activity. Brand marketers looking to to consider social more as CMOs express a need for greater using the technology to deliver more
reach and engage this group speak a legitimate and effective channel.” understanding of the drivers behind personalised customer experiences
of very deliberate attempts to avoid consumers’ relationships with their rather than simply to offer bargains.
separating mobile and social, due to mobiles and the right brand expression
the risk of creating inconsistency and for this smaller canvas. The ability to Mobile brand marketing
missed opportunities. leverage mobile’s capacity for more in the balance
personalised and resonant brand Mobile has firmly established itself as
Social ‘+’ mobile of course, represents far experiences depends on a deeper a brand marketing channel in its own
more than a handy solution to mobile understanding of what people actually right. However, CMOs demand that it
marketing’s current dilemmas or a want from their phone – and from take on a broader role for brands. Their
means of increasing reach over branded the platforms available on it. This is an attention is shifting from branded apps,
apps. The marriage of social media with area where rapid learning is required, mobile display ads and mobile search
mobile’s always-on, real-time capabilities with even potential partners such as to optimising core digital platforms and
creates a wealth of new possibilities when Facebook playing catch-up when it integrating mobile with social media for
it comes to brand-consumer relationships. comes to understanding how best to mass-reach personalised experiences.
operate in the mobile space. Selective investment in branded apps
still has a role to play but far from being
Greater insight is demanded by those a starting point for mobile marketing,
grappling with a strategy for location- these are now considered valuable only
based services. For now, location-based when they align clearly with a broader
messaging remains primarily focused brand or business proposition.
on discounts and offers (with many


Amazon
price checker
Amazon price checker encourages
consumers to visit bricks and mortar
stores to try products before finding
them cheaper on Amazon and
buying on their mobile. Consumers
scan the barcode, take a photo or
use voice to find the Amazon price The North Face
for the product they are looking at in- Outdoor clothing brand The North Face adds value through a trail finding app
store. Amazon encourages shoppers which provides a mobile trail guide and the ability to record and share the
to share prices they find to support experience on the go. Users can search for hikes by proximity, activity type,
the company in ensuring they can’t distance and user ratings. They can then record and share their journey and
be beaten on price. add tips and photos.


5 Today’s consumers can respond to
a TV ad without interrupting their
viewing experience, conducting
product research from their sofa
using their mobile; they can
search for and redeem vouchers
and offers using their phone,
receive location-based, relevant
deals that trigger purchase
behaviour, and compare prices
and product reviews in-store.

Mobilising the
path to purchase

Mobilising the path to purchase

revolution, the introduction of mobile
Mike Hogan, significantly increases the capability
Chief Marketing Officer, GameStop
of digital to impact shopper journeys,
“It’s not like there’s a mobile and opens up the possibility of direct
consumer and a non-mobile communication with customers in ways
consumer. It’s the same person not possible before.
we’re reaching but at different
points in time. So the question Existing web analytics platforms already
is where are they in the path to provide CMOs with some insight as to
purchase and what are their needs when mobile is used in the purchase
at that moment?” journey – and how this correlates to
different need states. However, more
work is needed to map and understand
The mobile phone is the most disruptive these correlations, and enable businesses
force yet unleashed on the once relatively to respond accordingly. Businesses with
linear path to purchase. Its always-on online and bricks and mortar stores, for
availability is transforming predictable example, often see mobile account for
consumer journeys into dizzying snakes- a high share of visits but a low share of
and-ladder routines. At any point and in sales. New methods of measurement
any situation, consumers can use digital may be required to help identify the
media to leap forward rapidly in the points in the purchase journey at which
journey or re-consider and divert. For mobile is most influential, and to identify
FMCG brands, which remained relatively how mobile is driving purchases that are
untouched by the PC-based Internet completed through other channels.



apps, instigating conversion through the
Joanna Wang, mobile itself, online via PC, or in-store.
CMO, China, L’Oreal

“Mobile will have transformative As we move along the path to purchase,
effect on the path to purchase for the value of mobile search becomes
the beauty category. Because the apparent, particularly for brands with
category is often a consulting service, restricted distribution and low visibility
it’s not like a simple ‘easy know-how’ on shelves. The precision afforded
In-store solutions:
category. You need service; you need by location-based mobile messaging
mobile at the business end
consultation – for example beauty provides a bridge for brands to overcome
Consumers want to take the
consultants in the retail environment. traditional drawbacks by communicating
risk out of decision-making by
Mobile can help us replicate that with consumers directly and mapping
personal, consultative experience.”
assuring themselves of the value
a route to their products.
of the products they buy using
However, location-based messaging also trusted and often independent,
The pre-store phase
creates dilemmas for CMOs, as illustrated sources. In developed markets,
Mobile’s influence in the pre-store phase
by mobile couponing, a tactic given 34% of consumers who use their
of the path to purchase encompasses
new life by the platform. Whilst seen by mobile in the path to purchase
lifestyle apps with demand-generation
some as an ideal technique for driving do so to compare prices and
features, location-based search that can
conversions, couponing is viewed by 18% scan product barcodes
guide shoppers to products which have
others in less beneficial terms: to get more information.
limited distribution or visibility, and mobile
a race to the bottom that can undermine In emerging markets, with
couponing, an area in which CMOs see
brands and raises serious questions typically lower smartphone
significant opportunity but also potential
over incrementality. For many brands, penetration, the numbers are
brand risks.
more nuanced CRM-based solutions are smaller but still significant:
Food and drink brands have explored the required that move away from broadcast 25% of those who use their
early stages of the purchase journey with couponing and tailor messages according phone during the path to
considerable effect to generate demand to loyalty scheme information, customer purchase do so to compare prices.
and add value through lifestyle and recipe profiles and purchase history. (Key finding from TNS Mobile Life study)



and mortar retailers seeking to leverage and price information, and making it The issues involved are sometimes
Tricia Nichols, control of the retail environment and easier and faster for consumers to close technical, sometimes tactical. Shopper
Global Lead of Consumer Engagement, frustration can result from slow in-store
Media Strategy & Brand Partnerships, Gap
non-retail owning brands targeting a deal.
a direct relationship with consumers connectivity resulting in long waits for
“The mobile device is the dominant
in-store. In a potentially competitive Thus far, the needs of both brands and additional, internet-served product
computation device…ultimately
situation, several CMOs speak of end- consumers in this area remain largely information, or from that information
a computer in everyone’s pocket.
to-end solutions, with mobile following unmet – and CMOs freely admit that arriving in a format that is not effectively
To unlock of all this content as
up initial geo-targeting with geo-fencing the correct solutions in terms of mobile optimised for the customer’s mobile
part of the consumer experience is
capabilities that trigger automatic mobile platforms and overall strategy are far device. Equally though, it can result from
invaluable. Bringing the consumer
messaging when shoppers approach from clear; it is indeed early days. QR brands and retailers serving information
closer to purchase is the nirvana.”
the store, and shelf-level engagement codes have been frequently discussed that does not relate well enough to
that guides them towards a completed as a means of directing consumers to in-store shopper needs: lifestyle content
In-store solutions: purchase. brand-provided product information. rather than deal or price information, for
mobile at the business end However QR codes have not enjoyed example. Ensuring that a mobile strategy
Once consumers enter the store Mike Hornigold, widespread enough adoption either on can adapt to deliver the right information
environment, the focus shifts from brand Director of Emerging Shopper
the part of brands or consumers – and at the right time and in the right place is
Technologies, The Coca-Cola Company
marketing and demand generation to their moment now appears to have a key objective for CMOs.
improving shopper experiences, and “The shopper is looking for two
passed. Image-scan camera technologies
reducing in-store friction. It is in this things, save me time or save me
and personalised push-based solutions
environment that CMOs most stress the money. Those are probably the Mike Hornigold,
such as Blippar now look likely to
requirement to align business operations two main triggers for them.” Director of Emerging Shopper
supersede them. Technologies, The Coca-Cola Company
as a whole around a mobile offering.
“I think what we are discovering is
And it is in this environment that the Shoppers of the digital and mobile age Key to any in-store mobile solution is that that we are in very early stages of
strongest emphasis is found on the need are accustomed to having the right it should reduce rather than increase the the game. And with that we are
to learn by doing – and to do so quickly. information available at the right time. friction involved in a shopper completing actually probably experiencing more
Providing it has become a major focus of a purchase. However, many CMOs are shopper frustration than shopper
Those handing mobile a key role in the CMO plans for mobile, with the focus on acutely aware of shopper frustration with benefit at this point in time.”
in-store environment include both bricks delivering reassurance through product their mobile experiences.



One school of solutions takes a simpler, From employee-focused solutions to the
and in a sense more traditional, approach need to tackle issues such as in-store
by leveraging mobile technology to connectivity, the demands of shopper
empower and inform in-store assistants marketing require an integrated response
and sales teams. The approach here is from across business operations.
on increasing employees’ capabilities in They also necessitate a willingness to
customer service and trusting them as experiment. When seeking to create
the primary channel when it comes to new in-store experiences, CMOs have
how best to sell to customers. Several consistently opted for a test-learn-
CMOs report significant improvements scale approach, turning pilot stores Gap socialises the
in shopper satisfaction and time spent into petri dishes for a new form of in-store experience
completing a purchase as a result of shopper interaction. Brands such as Gap has previously partnered with
arming staff with mobiles and tablets, Coca-Cola and L’Oreal must do so in Roqbot, which enables any venue to
enabling them to check inventory and association with retail partners, whilst crowd-source the music being played.
product information and credibly answer store-owning brands have more control
customer queries on areas such as over their own experimentation. With
competitor pricing. such control comes challenges however,
as the difficulties and costs of running
Eliot Van Buskirk,
Tricia Nichols, concurrent tests can restrict the all- Evolver.FM, Roqbot Crowdsources In-Store
Global Lead of Consumer Engagement, important speed of learning.
Media Strategy & Brand Partnerships, Gap
“The system changes the music based on the time of day, the musical taste of
“It’s really rather simple – ultimately shoppers who check in to the store using the Roqbot iPhone or Android app,
it’s about enabling smarter, more and customers’ song requests. Every person who checks in using the Roqbot
informed employees and smarter, app alters the music programming with their Facebook Likes and Profile listings,
happier customers.” Last.fm scrobbles, Pandora bookmarks, and/or the music on their smartphone.”


6 The TNS Mobile Life study for
2012 reveals that that 45 percent
the single most important driver
of this behaviour. And it is on
of the world’s phone owners this consumer need that many
are either interested in making of our interviewees businesses
payments using their phone or are looking to capitalise.
doing so already. Convenience is (Key finding from TNS Mobile Life study)

A new
way to pay

A new way to pay

Mobile payments provide CMOs with despite alternative solutions from the
several avenues to drive growth for likes of PayPal, Square, Facebook, Visa,
their business, with three in particular Apple and American Express. Businesses
emerging from our interview: as a report positive signs, including higher-
differentiator within developed markets, than-expected interaction rates, but in
as a means of increasing the accessibility such early days there is a consistent sense
of services to new audiences, and as of ‘not knowing what good looks like’
an opportunity for brands previously just yet.
dependent on third-party retailers to
open a direct commercial relationship The need for in-store training and
with their consumers. communications to support the mobile
payment offer is becoming increasingly
Experimentation is key to exploring the clear. The smartest mobile payment
mobile payments opportunity for brands. platform in the world can only deliver
With current usage levels for mobile a positive customer experience when it
payments still low, external research and is clearly communicated to customers
insights are not readily available and ‘best and supported by employees with a
practice’ remains a long way off. Brands full understanding of the solution.
have decided that the only viable solution Integration with business operations is
is to launch services first, ask questions therefore essential to success.
later, and then tailor the services based
on the results that their experimental Mobile payments represent a global
offerings deliver. opportunity – and for multinational
brands, extending access to products
Amongst our interviewees Google Wallet to those without conventional
emerged as one of the primary testing banking facilities is a major part of
vehicles for in-store mobile payments, that opportunity. Taking full advantage


A new way to pay

requires trials that reach beyond
conventional smartphone platforms and
embrace mechanisms such as WAP, SMS My Coke
and the USSD messaging platform used Rewards
in many emerging markets. The
unbanked represent the single largest My Coke Rewards shows how
opportunity for growth for many brands that have been dependent
multinationals; however, activating them on retailers can leverage mobile to
through mobile payments and mobile create direct relationships with their
banking is a long-term goal rather customers. It allows consumers to
than a quick win. GSMA initiatives to earn points at checkout and then
extend access to mobile finance services redeem these points in-store as an
in partnership with operators and alternative to paying using credit
banks could have a key role to play of debit cards. It’s a way for the
in developing this opportunity. shopper to save time and money,
and for Coke to enjoy more of
The growing intersection of social and a direct relationship with them.
mobile also has a role to play in the
mobile payment space. CMOs talk of
preparing for socially enabled mobile
wallets, which could enable sharing
of coupons and retail promotions.
As social becomes more deeply
embedded in mobile commerce,
CMOs expect to glean another valuable
layer of intelligence in terms of shopper
behaviours.

Key finding from TNS Mobile Life study:

A new way to pay

Smartphone ownership is at the point purchase journey to a greater extent
of exploding across a broad range of than has been seen in more developed
emerging markets as consumers’ ability regions. Brands that act now to develop
to pay now exceeds the average handset effective mobile strategies in emerging
cost. These handsets will accelerate markets could gain a significant first
existing mobile trends in these markets mover advantage.
and may well disrupt the traditional (Key finding from TNS Mobile Life study)

The smart phone tipping point
China
Price of original iPhone

Price of HTC Desire

301 308 Price of BlackBerry Torch
287
Huawei handset

Willing to pay for next phone
In-market price of phones


7 Leveraging mobile loyalty

A

My Starbuck
Rewards
Starbucks has been using mobile as a central component of its My Starbucks
Rewards scheme for some time. In addition to mobile payments, the app works
hard to drive loyalty by housing members’ rewards information, points and
coupons as well as a personalised Drinks Builder.


Leveraging mobile loyalty

The concept of a personalised, potentially Save time + Save Money + Reduce
social, mobile wallet highlights the Angst (friction) = ‘happy’ and more
growing importance of mobile-powered loyal customers
loyalty and CRM schemes to CMOs’
overall mobile visions. Extended, mobile- So loyalty schemes are seen as the
powered loyalty schemes are emerging key to unlocking mobile’s potential
as the anchor for many different strands as a broader business enabler. Mobile
of mobile activity, ensuring that any loyalty provides new forms of direct-to-
communication through consumers’ customer relationships and an effective
most personal device is appropriate, framework for delivering targeted offers
relevant and meaningful. and promotions that can avoid the risk
of cannibalising sales.
It’s mobile loyalty marketing that could
well drive uptake of newer technologies
like NFC, arguably able to have greater Mike Hogan,
impact than the current more top-of- Chief Marketing Officer, GameStop

mind partnership many expect between Apple’s mobile
NFC and mobile payments. And Apple’s “The holy grail for us is that a wallet solution
Passbook will no doubt drive greater customer can walk into our store
adoption by brands of time and location and we know who they are, Apple’s mobile wallet solution (Passbook) provides further evidence of the
targeting capabilities (See more details in probably based upon their being growing significance of mobile loyalty schemes and their appeal to shoppers. It
the breakout below/opposite.) a loyalty programme member, and brings together ticketing, coupons and loyalty program information in one place,
recognise them through their mobile allowing users to scan and redeem them at the point of sale. It’s also time, date and
And it’s important to remember that device. We can then use their location-specific, surfacing the right program details or information and coupons
more personalised content and services mobile as the vehicle by which we at the right time. That Apple has initially opted for a loyalty-based solution rather
via mobile, faster and more frictionless communicate with them in a highly than a payments-focused mobile wallet, demonstrates the value the company
payments mobile payment experiences personalised way.” sees in ‘mobile-enhanced loyalty’ prior to its fully-fledged mobile wallet platform.
play well to the equation that often leads
to increased loyalty and commitment:


8 Executive summary

Our CMOs express considerable Although CMOs consistently caution
optimism about the role that mobile that mobile business models are in their
will play in the future growth of their early days, key elements of a strategy
businesses. There is a strong sense are beginning to emerge. Integration
however, that businesses are only at of marketing with broader business
the start of a long road – and that they operations, particularly employees and
must be prepared to travel it quickly. the in-store environment, is essential
The adoption of mobile services by to success. Mobile payments provide
consumers has been extremely rapid – a vital growth opportunity as a means
and the expectation is that businesses of differentiating brands in developed
should mobilise their offerings equally markets and increasing access to
quickly. products in emerging ones. And new
forms of mobile loyalty scheme have a
A test-learn-scale approach is central to vital role to play in creating a tailored,
CMOs’ responses, with pilot schemes personal experience, delivering relevant,
establishing the potential for mobile to precise messaging, and providing a
increase engagement and reduce friction natural focal point for the many different
throughout the path to purchase. These strands of a mobile strategy.
pilots are providing valuable insight
as to how consumers will respond to
mobile services that would have been
unimaginable a few short years ago.


9 About this report

This report is based on one-to-one
interviews with Chief Marketing
Officers (CMOs) from a range of About
international organisations the author
Simon Falconer
About Mobile Life As Global Platform Director
Mobile Life is an annual investigation for TNS Connect, Simon leads
into the behaviours, motivations technology platform innovation
and priorities of the world’s mobile and development for TNS’ Global
phone users. Now in its seventh practices which help clients drive
growth through market entry,
year, Mobile Life is the most
innovation, brand switching and
comprehensive view of how the customer experience management.
world’s consumers are using their He joined TNS in June 2011.
phones today and the opportunities
this presents for brands. With 12 years’ experience in B2B
and product marketing roles for
digital businesses and business
Based on 48,000 conversations in
functions, Simon’s expertise is
58 countries, Mobile Life is designed centred on putting technology to
to capture the entire population of work for marketing and insight/
mobile users in each market. information consultancy. Prior to
TNS he was with Microsoft as Head
of Business Planning for the EMEA
Online Services division.


About this report

About TNS
TNS advises clients on specific growth You may
strategies around new market entry, be interested in...
innovation, brand switching and
How mobile raises the bar for
stakeholder management, based
brand communications >
on long-established expertise and
The impact of digital on growth
market-leading solutions. With a
strategies >
presence in over 80 countries, TNS
Winners and losers on the digital
has more conversations with the
path to purchase >
world’s consumers than anyone else
and understands individual human
behaviours and attitudes across every
cultural, economic and political region of
the world.
Get in touch
TNS is part of Kantar, one of the If you would like to talk to us about
world’s largest insight, information and anything you have read in this report,
consultancy groups. please get in touch via
enquiries@tnsglobal.com
Please visit www.tnsglobal.com for more or via Twitter @tns_global
information.


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