increasing value from reach to relationship

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Reactive

Tactical

Adaptive

Stategic

Relationship

INCREASING VALUE FROM REACH TO RELATIONSHIP As mobile technology evolves, mobile strategy must evolve. Chances are, more than half of your revenue is now influenced by mobile. The question is whether you adopt a catch-and-release strategy or strive to earn a permanent place on customers’ devices by building a mobile relationship.

We’ve seen many different approaches to audience engagement and a wide range results. What works best? How does your company’s mobile strategy compare to those of top brands? Are you strategizing, or simply reacting? And what can take you to the next level?

©2013 Urban Airship Inc. | 1417 NW Everett St, Suite 300, Portland, OR | 800.720.2098 | urbanairship.com

NEXT-LEVEL THINKING IN MOBILE STRATEGY Mobile challenges all businesses to better connect with their audiences— customers, employees and partners. A 2013 Syniverse study found that “72% of international Fortune 1000 companies have implemented or are in the process of implementing a mobile strategy.”1 Plainly stated: If your company is not strongly mobile, it’s probably not at the top of your industry. When used well, mobile drives exceptional engagement, revenue and loyalty. The best mobile apps deliver utility and relevant content based on users’ behaviors, preferences and location profiles directly to smartphone home screens. We call this approach Mobile Relationship Management (MRM). MRM creates an uncommon bond with audiences by emphasizing relevance over reach. Instead of interrupting users with ads, it leverages the unique capabilities of mobile to bring valuable content to an always addressable audience. Because mobile devices are so personal, MRM also plays by a different set of

rules—permission, trust and value are the hallmarks of this deep customer connection. Mobile leaders must transform their marketing strategy from reacting to mobile consumers with traditional marketing tactics, to a new strategy: forming deeply personal, two-way relationships with customers to achieve the highest degree of total lifetime value. We believe MRM is only possible with an app because web sites, advertising and search don’t establish an enduring audience connection. There’s strong customer demand for apps: 85% of users prefer apps over mobile websites.2 Therefore, Urban Airship’s Mobile Maturity Model emphasizes the evolution of an app along a continuum toward greater mobile sophistication and deeper customer connections. We created the Mobile Maturity SelfAssessment to help you analyze current mobile practices and metrics, evaluate where you fall on the maturity spectrum, and define a roadmap to mature your mobile business. Read on for your individual results ...

Sources: 1 Syniverse, 2013 2 Compuware, 2013

©2013 Urban Airship Inc. | 1417 NW Everett St, Suite 300, Portland, OR | 800.720.2098 | urbanairship.com

Engagement by Interruption

Many organizations remain at the reactive stage of mobile, maintaining old marketing and advertising paradigms. Broadcast messages dominate reactive thinking, rather than a mobile-first mindset that takes advantage of the unique characteristics of the mobile channel. Reactive mobile marketing uses the always-present nature of mobile devices to interrupt customers engaged in other tasks. We believe companies that remain complacent in this stage will swiftly be outpaced by mobile adopters that are rapidly earning mindshare and market share market share through native mobile applications.

USE CASES Mobile use today rivals television for consumers’ attention, with the average U.S. consumer spending 158 minutes on smartphones and tablets each day, compared to 168 minutes per day with television.1 Organizations at the reactive stage have realized that mobile is a legitimate form of customer communication that deserves attention, but they react by experimenting with traditional, interruptive tactics. Typical reactive tactics include mobile advertising, SMS messages, mobile search

158

min/ day

vs.

168

min/ day

1:58PM

REACTIVE

80% of time in apps

20% on mobile browser

Where do people spend most of their time on mobile? Apps take the lion’s share of attention.

optimization and responsive website design for mobile browsers. Location applied to any of these tactics begins the process of evolving mobile strategy. Given that a third of mobile searches have local intent, and 94% of smartphone users have searched for local information,2 these reactive tactics can be useful—but they don’t address the larger opportunity. Reactive tactics ignore the fact that 80% of users’ attention on mobile is in apps—127 minutes per day, compared to 31 minutes per day spent on mobile browsers.3 Reactive tactics also treat mobile devices as mini-PCs, ignoring many of the personal, immediate and location-aware capabilities that can increase relevance and value. Finally, reactive tactics are a catch-andrelease strategy limited by the customer’s intent—brands are only visible if the customers search for them or purposefully visit their website. Mobile apps, on the other hand, put brands in consumers’ hands and give companies the power to reach their entire mobile audience anywhere and at any time.

©2013 Urban Airship Inc. | 1417 NW Everett St, Suite 300, Portland, OR | 800.720.2098 | urbanairship.com

KEY METRICS Reactive-stage metrics mirror old-school marketing thinking. The emphasis is on frequency and reach—a shotgun approach that casts a wide net and expects a fractional return in engagement. Clickthrough rates fail to embrace the full mobile value chain of engagement, conversion, loyalty and lifetime value. Achieving visibility in mobile search results is another reactive-stage metric, emphasizing only the mobile web fraction of users’ attention. Fundamentally, nothing that is done at the reactive stage forms a relationship with customers; it is purely a transactional aim.

ORGANIZATION & INFRASTRUCTURE Reactive-stage companies often have minimal mobile leadership and limited mobile knowledge within their organization. Mobile coordinators may report into a marketing or product team, or the company may have no dedicated mobile personnel, with this function handled on a case-bycase basis. Mobile infrastructure at this stage may be limited to a mobile version of the corporate website, outsourcing to an agency, or a contract with an SMS aggregator to execute campaigns.

OPPORTUNITIES: MOVING FROM REACTIVE TO TACTICAL The reactive stage is ripe with opportunity. Businesses in this stage have some experience in mobile by reacting to the trend and experimenting with mobile technology. Their first opportunity is to develop a mobile strategy and a roadmap that can move them from the reactive stage up the chain of value to tactical, adaptive, strategic and beyond. These firms are

Apps are the most important owned media channel, enabling brands to reach customers at any time.

gaining a strong competitive edge through mobile. A reactive-stage company is playing catchup—but if you find yourself here, you’re not alone. On average, just 2.5% of revenue is spent on digital marketing,4 and nearly half of mobile marketers report that they have no actual mobile strategy.5 Forrester Research found that a full 34% of mobile executives say they have no mobile strategy, while another 29% have no present mobile strategy but plan to implement one in the next 12 months.6 So don’t be too hard on yourself; you’re in good company. You and your fellow reactive marketing strategists have a world of opportunity around the corner, where you can wow customers as you hone your use of mobile. We believe the key opportunity in mobile is building an always-addressable audience through your own app. This owned media channel allows you to build a relationship with users by providing value and benefit to the consumer. Urban Airship offers strategic

©2013 Urban Airship Inc. | 1417 NW Everett St, Suite 300, Portland, OR | 800.720.2098 | urbanairship.com

guidance to navigate a complex market of more than 1.8 million apps where one in four apps are abandoned after first use7 and the average lifespan of an app is just 30 days before it is deleted off a phone.8 Our Good Push index reveals how to buck that trend—using push messaging to give your app a voice with the user. Good Push techniques drive four times greater engagement and two times greater retention than apps that do not use push messaging.9 Additionally, in-app messaging with an inbox and message badges allows brands to deliver new content to their entire mobile audience, including those that have opted out of push. We believe taking steps toward building mobile customer relationships is critical to embrace the unique capabilities of mobile to achieve long-term audience engagement. For those not ready to develop an app, we suggest using digital wallet cards and passes to create a permanent communication channel with your customers. Consumers are integrating digital wallets into their lives, with 12% of consumers having used other digital wallet services.10 Any type of business can use digital wallet functions to deliver coupons, tickets, passes, loyalty cards, offers and more through any digital medium—email, social media marketing and on websites. These can be seamlessly updated and location-aware to help you take the first step toward earning a permanent place on your customers’ mobile devices.

WHAT’S NEXT? You received this report based on the questions you answered in our Mobile Maturity Self-Assessment. Urban Airship’s proprietary, five-stage Mobile Maturity Model was created by a cross-functional team of digital strategists, marketing leaders, technology visionaries and business analysts to help you explore next-level steps for the evolution of your mobile strategy. As promised, we’ll follow up with you next quarter to reveal our Mobile Maturity Benchmarks report, which uses survey information in aggregate to reveal the mobile maturity of specific industries. This can help you evaluate the progress of your mobile strategy against competitors. The privacy of your individual results will be respected and protected. How well did this report match your company’s current strategy, tactics, organization and measurements? We’d love to discuss your strategy, opportunities and individual results further. Reach us at 800720-2098. Sources: 1 Flurry, April 2013 2 Business Insider, May 2013 3 Flurry, September 2012 4 Gartner, June 2013 5 Urban Airship, April – May 2013 6 Forrester Research, November 2012 7 New Relic, March 2013 8 Speckyboy, June 2012 9 Urban Airship, November 2012 10 Comscore, February 2013

©2013 Urban Airship Inc. | 1417 NW Everett St, Suite 300, Portland, OR | 800.720.2098 | urbanairship.com