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February 22, 2010

Smart Products | RenuMobile Delivers Smart and Green Mobile Marketing Campaigns


With so much coverage of smartphone applications and smartphone based marketing, it’s easy to forget that text message services and campaigns are still the global powerhouse of mobile marketing.
 
According to the CTIA (News - Alert), over 1.3 trillion SMS messages were sent in the United States during 2009. To get a balanced picture of the impact of text in U.S. mobile marketing, I spoke to Carol Glennon, founder of RenuMobile a full service and “green” mobile marketing company that manages text and other mobile campaigns for a number of global brands.
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Mary Cronin (News - Alert): One thing I noticed first about RenuMobile is your tagline, “Mobile is eco-friendly marketing.” Why is being eco-friendly a priority for your company and how do you make that work in practice?
 
Carol Glennon (pictured left): Using mobile for marketing happens to be one of the greenest ways that you can reach people today, far better for the environment than traditional methods such as print marketing. When companies shift a portion of their marketing budget to mobile and away from emission-heavy methods such as print they immediately experience a reduction in their carbon footprint. Mobile marketing campaigns operate on systems and networks that are optimized to reduce waste and increase efficiency.

Additionally, Renu Mobile purchases voluntary carbon-offset credit to mitigate greenhouse gas emissions from our corporate travel, electricity and operations. We believe that everyone can operate a successful business while helping the environment. Our goal for 2011 is for our east coast location to be 75 percent solar powered and 100 percent carbon neutral.
 
MC: I know that you were a pioneer in SMS applications as an executive at Yellow Pepper almost ten years ago. What did you learn from being such an early player in mobile marketing?
 
CG: We tested the boundaries quite a bit as people usually do in the early days of an uncharted endeavor. For example, when we began there was no interconnect for text messages between U.S. carriers. Can you imagine today not being able to text a friend because you are using AT&T and your friend is using Verizon (News - Alert)? Seems incredible but that was just one of many challenges. We learned quickly that sustainable infrastructure is critical. To put it simply, do not plan for next quarter’s capacity needs, instead plan two or three leaps ahead.

We were attempting to get people’s attention on the smallest of screens, with plain text or images rather than the rich sound and video of TV, so we also learned a lot about engaging consumers on a device smaller then a coffee cup and leveraging the fact that people were carrying their mobile phones everywhere they went, unlike their TV’s. We talked to our brand clients about how we could offer real value via mobile, with promotions like text coupons and mobile clubs. We were leaps ahead back in 2000 when we created ‘pull’ campaigns for to offer tangible value instantly on the mobile phone.
 
MC: How are you applying that early experience to your strategy for growth at RenuMobile?
 
CG: We still believe that every campaign must offer value to the consumer and that mobile delivery enhances value. For example, coupons requested by the consumer and sent via text message to the mobile phone are much more likely to be redeemed than print coupons sent in a mass mailing. We also see great value in blending mobile campaigns with social media. When we send a coupon, sale alert etc. we also give the consumer easy ways to tell their network about the offer via a Tweet or update to their Facebook (News - Alert) page.


Another example of value would be medication alerts. Consumers sign up and schedule alerts through the pharmaceutical company Website. They get daily reminders about taking their medicine along with money-saving offers and helpful information about managing their health issues.

To sum up, our growth is directly connected to our ability to deliver concepts and campaigns to brands that engage consumers and offer the consumer value that they want to talk about, share and use.

MC: What are the main changes that you see in how brands think about mobile marketing today?
 
CG: Mobile marketing is now widely recognized as a viable channel for many types of marketing strategies. Brands and marketers now have case studies and track records available to them that demonstrate the leverage that mobile can provide and marketers are watching thought leaders and competitors using mobile to engage consumers in new ways. Brands are asking their agencies to develop advanced mobile strategies rather than replicating competitor’s efforts. Brands are seeing how quickly mobile technology evolves and they want their mobile strategy to encompass as many opportunities as possible.
 
MC: Is the popularity of the iPhone (News - Alert) and other smartphones making text less important and increasing the popularity of more graphics-intensive marketing campaigns?
 
CG: A rising tide raises all the boats in the case of text messaging and smartphones. Text messaging uses an ultra-light protocol system that operates on pre-existing telephony components. In a nutshell, text messaging is an incredible value in that it does not require lots of overhead bandwidth or switching capabilities, wireless carriers tend to like that. Brands appreciate the fact that text messaging is reasonably priced and works universally, no special software or downloads required. Text messaging should be considered a very responsive doorway to an interaction.
 
For example, a text message is a great way to get a brand’s mobile Website in front of a consumer. The consumer sees a short code and sends a text message. We reply with information and a link to the brand’s mobile-specific Web site. We even detect the phone model that the consumer is using and then optimize every image and text block instantly to ensure the best mobile Web browsing experience. Although the consumer ultimately landed on the mobile Website, the experience began with text messaging.
 
Most consumers will not take the time to read an ad while on the go and then manage to open their mobile Web browser to type in a long Web address. However, it only takes seconds to send a text message to a short code and get a Web address embedded into a message in return. Using a short code and text message makes the first step of the engagement extremely fast and easy for the consumer, and provides opportunity for additional tracking through unique landing pages.
 
MC: What do you think about the prospects for adoption of mobile video, mobile barcodes, and other technologies in the next few years?
 
CG: All of the examples that you mention have great prospects over the next five years if leveraged well. Successful application of these extended mobile technology solutions means that they must be able to blend seamlessly with other types of technology. For example, a mobile barcode scanner would be ideal if the scanning software was pre-embedded on the device and the act of scanning a barcode provided the consumer with immediate value such as special pricing, instant purchasing or a nearest location. Consumers are typically happy to adopt a new technology experience if the payoff is big for them.

Companies developing extension technology for the mobile device have to focus on the immediate value that their product can offer consumers. In the case of mobile video, barcode scanning and image recognition the companies that are developing the technology cannot afford to simply develop a best of breed solution and let brands figure out how to leverage it. Savvy mobile technology companies partner with mobile marketing agencies like Renu Mobile to get their mobile tech solution in front of brands during pitches and strategy sessions.
 
MC: Are there particular industries and types of companies that you think are going to be major adopters of these mobile marketing technologies?
 
CG: There are certainly industries such as music entertainment, consumer packaged goods, and travel that have embraced mobile marketing from the early days. We see the agencies that represent these industries cross-pollinate mobile advertising to clients in other industries. The next wave of industries that will benefit from increasing their mobile marketing campaigns are pharmaceutical, health and wellness, as well as retail stores.

These industries natively maintain information that people need to make everyday decisions; medicine contraindications, diabetes control, and specific sale price information would be a few examples. Over the next few years the typical consumer will take greater control over the way they are marketed to by pulling or requesting only the product information that they want- filtering out all of the rest. Industries that have valuable information to offer will need to use mobile to get their information to consumers quickly so that they can make decisions. The payoff for businesses that conduct their marketing in such a fashion will be enormous.
 
MC: To wrap up, what’s the most important advice that you give to clients who want to develop a smart mobile marketing strategy?
 
CG: We advise brands to focus on value for the consumer above all. Consumer value will ultimately dictate the success of a mobile campaign. A consumer’s mobile phone is a very personal device. Brands should demonstrate respect for a consumer’s personal space by focusing on ‘pull’ marketing, giving the consumer what they need to make decisions.

Dr. Cronin is a Professor of Management in the Information Systems Department at Boston College. To read more of her articles, please visit her columnist page.

Edited by Michael Dinan
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