The constant evolution of today’s mobile environment can seem complicated—even overwhelming. Your audience is on the move, making them favor businesses that can keep information relevant, and in quickly consumable form. Hear from guest speaker Julie A. Ask, Vice President and Principal Analyst for Forester Research, as she outlines a simple four-step process for creating an engaging mobile experience. Learn how to: Engage expertly by identifying context Build branding with a well-designed engagement experience Optimize marketing dollars leveraging the entire mobile ecosystem Refine strategy by monitoring performance

1. CONFIDENTIAL
›Julie A. Ask, Vice President Analyst, Forrester Research
›Steve Dille, Senior Vice President, Message Systems
The 4-Step Guide for Mobile
Engagement
March 20, 2014

2. Creating An Effective Mobile
Engagement Strategy
Julie Ask, Vice President
March 20, 2014

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USAA realized they had a customer
experience problem in 2007

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USAA mobile-enabled their services
"Many of our members proudly serving our country
have limited time to handle personal financial
matters. And those on ships at sea or in remote
locations often use computers with low-speed
Internet connections. Since mobile.usaa.com loads
more quickly, it's an easy way for them to get what
they need faster — which is the least we can do for
them." — Joe Robles, CEO

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More often than not, CX rolls up to
marketing
› January 2014 ―The Convergence Of Brand, Customer Experience, And Marketing‖

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Customer experience is an integral
element of marketing
› January 2014 ―The Convergence Of Brand, Customer Experience, And Marketing‖

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Agenda
› How is mobile impacting customer
experiences?
› What is the impact of mobile on your
business?
› What steps should you take to win in
mobile moments?

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Agenda
› How is mobile impacting customer
experiences?
› What is the impact of mobile on your
business?
› What steps should you take to win in
mobile moments?

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We are living in the “Age of the
Customer”
Age of
Information

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Winning in the age of the customer first
requires knowing who your customers are
Opt-In
• Download an App
• Allow push
notifications
• Opt in for messaging
Understand
Build Trust
Learn
Serve
Understand
Better
Be more
relevant
Generate
Deeper
Insights
Build More
Trust
Customer

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Competing requires deep analytical
insights – many from mobile exhaust
Is your firm leveraging
customer generated data to
help them easily discover
your products and services?
Do you understand
customer context well
enough to help serve
customers in their mobile
moments?
Are you using customer
purchase data to improve
conversion rates in-store and
online?
Are you collecting data from
products to layer on
services? Or give
customers more control?
Traditional marketing and
customer feedback only
tells part of the story. Are
you tapping into customer
mobile data to understand
what they really think?
Are you engaging
customers in the right
moment to drive the next
purchase or brand
engagement?

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The Mobile Mind Shift
The expectation that I can get what
I want in my immediate context
and moments of need

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Companies
Processes
Products
Platforms
Mind Devices Applications
Mobile expectations are soaring

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Companies
Processes
Products
Platforms
Mind Devices Applications
The mobile mind shift is just beginning

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Companies
Processes
Products
Platforms
Mind Devices Applications
Mobile apps and sites will be ubiquitous

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Companies
Processes
Products
Platforms
Mind Devices Applications
Mobile will drive the biggest re-
engineering of firms since the Web

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Agenda
› How is mobile impacting customer
experiences?
› What is the impact of mobile on
your business?
› What steps should you take to win in
mobile moments?

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Flight
Event
You need to serve customers in their
moments along their journey
- 2
Weeks
- 2
Hours
Airline Example - Mobile Moments
+ 2
Weeks
+ 2
Days
+ 2
Hours
You need to win in these mobile moments.
- 2
Days
• Request
upgrade
• Reserve seat

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In marketing, those moments are:
› Loyalty Moments
› Manufactured Moments
› Borrowed Moments
Loyalty moments are the ones you own. Your
ability to deliver in these moments will impact
your customer experience.

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Loyalty Example: Starbucks
– 5 min
• Find nearest SBUX
• Check email, FB
• Check SBUX MSG
–30 secs
• Check balance
• Reload card
• Download song
Purchase
• Order latte
• Open Passbook
• Pay
+30 secs
• Push new balance
• Check email
• Receive receipt for
reload
+ 5 min
• Push new balance
• Check loyalty points
• Listen to new song
In 2013, Starbucks announced that its mobile loyalty and
payment app is used by 10 million customers with an average of
5 million weekly transactions at US stores.

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Starbucks relies on loyalty moments in
the US and borrows them in China

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Manufactured Moment: P&G
• Sponsored content
• Tens of millions plus
downloads
• Offers utility
• Promoted on Web site
Source: iPhone screenshot: Charmin mobile application

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Borrowed Moment: ShunKouLiu
ShunKouLiu Restaurant App

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There are many mobile moments that
play a role in your customer experience
› Sales
• Impulse purchase moments
• Influenced Sales Moments
• Guided selling moments
› Customer Service
• ―Moment of Truth‖ moments
• Product enhancement moments
• Problem-solving moments

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On days of irregular operations, United
gives passengers control with mobile

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Connected products offer mobile
moments
Use TipsProduct TipsGoal Advice

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Problem-Solving Moments
Financial
Services
• Bill due date?
• Balance?
• Paycheck
deposited?
Retail
• Return policy?
• Offers?
• Damaged product?
Insurance
• Coverage?
• Payment due?
• Co-pay?
Hospitality
• Reservation?
• Room issues?
• Points balance?
Travel
• Itinerary change?
• Wrong seat?
• Purchase help?
CPG
• Product recall?
• Availability?
• Allergic reactions?

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Your Mobile Mind Shift
Your company must meet these
new expectations

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How are and should you be evolving
your use of mobile?
2005-2011
“Shrink &
Squeeze”
Squeezed
experiences
designed for the
PC on to small
screens.
2013+
“Winning in
Mobile
Moments”
Ethnographic
research uncovers
new needs on the go.
Mobile proactively
services customers
based on their context.
2011-2013
“Mobile First”
Mobile enhanced
other touchpoints.
New services
emerged.
?
Beyond
“Business
Transformation”
Mobile transforms
a business – not
just a digital
business.

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Agenda
› How is mobile impacting customer
experiences?
› What is the impact of mobile on your
business?
› What steps should you take to win
in mobile moments?

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IDEA guides mobile design

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Identify mobile moments and their
associated context
Customer Journey
Contextual OpportunitiesMobile Moments of Truth
• What are customer
motivations?
• What does the customer
need?
• What is their context?

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Source: Forrester Research: ―mHealth Illustrates New Business Opportunities.‖
Know what context is important

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Design the engagement
“Should I drive home?”

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Design the engagement (cont.)

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Engineer your
platforms, processes, people and
policies
Processes PolicyPlatformsPeople

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Processes: remote monitoring

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People
Talent
Help
wanted
• UX
• Machine
learning
• Big data
• Developers
Culture
• MVP
• Agile development
• Multiple release
cycles each year
• UX-driven design
• Colocated teams
Organization
Collaboration
•Cross-functional steering
committees
•Best practices teams
•IDEA dev teams

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› Consumers will want to engage with you on an
increasing number of devices.
› Apps demand that enterprises build a web services
layer and APIs to access data and functionality.
› Your physical and digital worlds are colliding or
complementing each other — understand the
implications.
Source: October 18, 2013, ―Mobile Needs A Four-Tier Engagement Platform‖ Forrester report
Platforms: new engagement model

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Policy: Prioritize CX and UX

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Source: Anjuke
Analyze results to monitor performance
and improve business outcomes
• Conversion rates were strangely
low in the evenings – their
busiest time
• Anjuke conduct A/B testing
• Learned that the best listings
were no longer available in the
evenings because the spending
caps set by agents had been
reached
• They reconfigured their
algorithms to ensure the best
audience plus offered analytics
to agents to increase spend

42. Thank you
Julie Ask
+1 415.355.6002
jask@forrester.com

43. CONFIDENTIAL
›Steve Dille, SVP Marketing, Message Systems
Making Mobile Moments Payoff
March 20, 2014

44. 4
Introduction: The Leader in Messaging
›20%

45. Email / Marketing Services Providers
Social
Networking
Daily
Deals
Telco
Financial
Services
Consumer
Technology
Travel &
Hospitality
Publishing
& Media
Hosting
& SaaS
Sampling of Key Clients by Vertical Markets

46. Cross-Channel Messaging Platform
4
49

47. Proving the Value of Mobile Moments
5
Message
Systems
Mobile
Business
Process
Transformation
Mobile or Multi-
Channel
Marketing

48. Mobile Business Process
Transformation
›Saves Millions, Build Loyalty

49. Banking Mobile Moment
5
›Fraud Alert:
1. Fraud Detection System False Positives Drive Large Volumes of Expensive
Call Center Calls, Damaged Loyalty and Loss of Revenue
2. For Every 1M Fraud Alerts Sent to Customers, One Study Showed 94% of
Them Were False Positives, Driving $11M in Unnecessary Costs
3. Innovators Use Mobile to Automate out This Expense — Chase, USAA
Evidence: “After the implementation of the fraud detection system, the detection rate
increased to 90% in the online space with a false positive rate of 18 to 1 (this means
that one out of every 18 transactions identified as suspicious is true fraud).”
Forrester Research :Case Study: A Leading Global Financial Institution Steps Up Its Campaign Against Fraud With Device Identification
Business Activity Financials
Fraud Alerts Generated 1,000,000
False Positives 944,444
Cost/Call $12/call
Unnecessary Expense $11,333,328

50. Fraud Alert: Automated Responses
5
Fraud Alert: Suspicious
transaction at Tower Mini Mart
for $51.89. Card temporarily
blocked. Please call Customer
Service.
Reply to this message with
the word ―YES‖ to approve
this transaction and unblock
your card ―NO‖ to speak to an
agent.

51. Travel Industry Mobile Moment
Reducing Rental Car No-Show Waste
5
›Facts:
1. No show rentals represent 20–30%* of car reservations costing
the company at least $6.6M of Global Distribution System
reservation fees + lost inventory utilization
2. Using Mobile Devices, a Car Rental Company Can Automate
Out This Expense and Recover the Costs of No-Show
Reservations by reducing no-show GDS fees and charging for
no shows or increasing utilization of the fleet
*Source: Auto Rental News

52. Value Proposition:
Reducing Rental Car No-shows Waste
5
Avis Budget Today
Annual Est. Rental Days 74,014,611
Avg. Length of Rental 5
Number of Transactions 14,802,922
% Transactions through GDS 45%
No Show Factor 25%
No Show Transactions 1,665,329
Cost of GDS Reservation $4
Incremental Cost from No Shows $6,661,315
Earnings per Share Impact $0.04
Avis/Budget Reengineered Policy
Annual Est. Rental Days 74,014,611
Avg. Length of Rental 5
Number of Transactions 14,802,922
% Transactions through GDS 45%
No Show Factor 5%
No Show Transactions 333,066
Revenue Opportunity — Charge for
First Day
$40.00
Revenue Opportunity $13,322,630
Cost of GDS Reservation $4
Incremental Cost from No Shows $1,332,263
Earnings per Share Impact $0.11
Source: Auto Rental News and NorthCoast Research Estimates

53. Mobile E-mail Reduces No Show Costs
5
There will be a $40 charge for no show car reservations not picked up in 24 hours.
PREFERRED CLIENT

54. Mobile Moments in Marketing

55. SMS and Push Messages Are Effective
5
11%
95%
Email SMS
Open Rates
384
3
Email SMS
Time to Open
(in min)
No Push With Push
App Usage Rate
(in month 3)
2.25x
SMS messages have much higher
open rates compared to email
SMS messages are opened
much faster than email
Push messages increase
engagement with mobile apps

56. Mobile Improves Response to Other
Channels
5

57. Mobile Marketing Use Cases
6
Increase
Sales
Improve
Customer
Service
Customer
Loyalty &
Retention
Increase
App
Usage

58. Increase Sales: Ace Hardware
6
Advice: Send coupons, updates and other promotions via SMS and push
messages to drive in-store or online sales. Smart segmentation and geo-
fencing can increase relevance of the offers making campaigns more effective.
Campaign success metrics:
• Over 13X return on investment
• 49% mobile coupon redemption rate
• 411% increase in average customer cart size

59. Improve Customer Service
6
›Problem:
• 3.5M users on the mobile bank application.
Sending alerts in text at a cost of $2.3M with
growing volumes annually
›Solution:
• Use Push notifications system to eliminate the
cost of text messages and deliver alerts into
the mobile application. Use text as a backup.
Customer: Large European Bank
Advice: Give users information they need when they need it and lighten the
load on call centers. Send event reminders, renewal notices, bills, schedule
updates, transaction notices, alerts, and more. Use Push for lower cost.

60. Customer Retention & Loyalty
6
Advice: Keep customers engaged through frequent, relevant messages. Send
offers, coupons, suggestions, news updates through SMS, e-mail and push
notifications. Send reward points information and other loyalty program updates.
Place
Food
Order.
Ask for
Mobile #.

61. Increase App Usage
6
Advice: Use push notifications to offer users something of value —
content, special offers, reminders, etc. — and your app’s usage will grow.

62. Thank you!
6
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• @messagesystems
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• Message Systems
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• www.messagesystems.com
Contact Us
• info@messagesystems.com