It may not be long before house hunters making the rounds of local open houses on a Sunday afternoon no longer have to clip classified ads or download property sales blogs from the Internet to guide their search.
They could simply use their cell phones to connect with a location service to which they subscribe, get a read of their location within five to 20 yards, and through their mobile devices receive all the open house locations taking place that afternoon in the vicinity.
In addition, their phones will have access to photos of each property, the open-house times, and the contact numbers of the realtors hosting the showings.
s advertisers start to understand their options in niche marketing and break out of decades-old patterns of making sweeping media buys, the above scenario presents a compelling way for advertisers to reach the audiences they need to reach, and for consumers to get the information they need, exactly when they need it.
With this, mass marketing evolves into direct marketing, direct marketing branches out into segmented marketing, and ultimately runs through multiple filters as micro-marketing. More and more industries are thinking creatively about how to market to a segment of one. Mobile devices can provide the mechanism.
Indeed, while other new forms of marketing are optimally relevant and highly targeted, location-based services are being viewed increasingly as one of the most powerful new tools available to marketers to achieve that goal.
Location-based services have the capacity to be highly interactive, spontaneous, flexible, and easily reprogrammed with new types of offerings. Carriers have a worthwhile challenge in turning their technology businesses into a unique marketing opportunity.
As touched upon in the previous articles in our series, European and Asian carriers have already figured out how to use existing networks and GPS technology to pinpoint a subscriber’s location, sending compelling merchant offers to users. On those continents, these offers are taking the form of vodcasts, podcasts, breaking news, music or 2-for-1 limited time offers at a nearby store.
While the drivers for location-based services in Europe and Asia have been primarily commercial, the primary driver in the U.S. has been safety. The FCC mandated that by December 2005 cellular carriers needed to be able to locate anyone making an emergency 911 call.
Dubbed the Wireless Enhanced 911 (E911) Rules, the goal was to improve the effectiveness and reliability of wireless 911 services by providing dispatchers with additional information on wireless 911 calls.
While the E911 program has been divided into two phases, the endgame is for wireless carriers to have the capability to locate a call within 50 to 300 meters in most cases. As such, location has become an FCC mandated piece of wireless telecom infrastructure. It is the job of carriers to manage customer migration to a service that encompasses location, and to hardware that enables it.
As challenges of accuracy are resolved, the carriers are advised strongly to develop privacy principals so that any issues around privacy considerations can be built into the infrastructure and hardware. Worries over privacy encompass concerns such as, do consumers want their friends, let alone retailers or coffee houses, to know their every move, and would location users be able to turn off location at the flip of a switch?
Examining these concerns can help dictate which technology ultimately is used. There is little point in having a set of technology standards and then realizing that the infrastructure cannot support such important issues. But once outlined, location could even be a way for carriers to sell upgraded handsets, not only the services themselves.
By Invitation Only Mobile devices are one of the few channels where consumers can ‘invite’ businesses to market and communicate with them. Consumers sign up for desired services when they subscribe to a particular service. By understanding these behaviors, marketers can determine the best information to push out to the consumer.
But marketers should tread lightly. There are four important rules of engagement:
1. A cell phone will allow content to be driven to them. Consumers do not want SPAM on their mobile phones. It’s costly for some and annoying for others, both reasons for a consumer to change carriers very quickly. Users want to set the parameters on the marketing and services they receive, and this wish should be respected.
2. Marketers have to create a compelling reason for customers to invite retailers into their world. Knowing what meaningful content means to most wireless device users can be a challenge. Keep in mind that content should offer the ability to do something that is time sensitive and crucial. Offer compelling content that is meaningful and relevant.
Location-based services are a good example of compelling content. People are busier than ever and increasingly are looking for marketers to filter choices based on preferences. Always short of time, they want to squeeze in extra activities in an hour.
A parent running from activity to activity on a weekend with children in tow would probably be happy to be provided the location of the nearest ATM or the name and address of a family friendly restaurant, special offers on clothing, or a list of G-rated movies. With such offers, mobile phones simplify parent choices and enable them to get more done in the given time.
3. Build trust through brand recognition. Build trust and the consumer will invite you in. Our research has shown, for example, that when consumers are shown a brand they trust, they are more likely to sign up for a service provided by that company.
For example, when consumers realize they consistently can get quick access to cash by using a well-designed ATM location service, they will tend to be more loyal to the business that provides the information— whether it is their bank, their mobile carrier or their Internet service provider. Once consumers arrive at the location they have been directed to, the experience they have at the ATM or the merchant will be a branded experience. This familiarity promotes a feeling of security and reinforces loyalty.
4. Establish information partnerships. Time and investment can be minimized if a business works with an information partner to enhance its current services with new offerings of high value to its customers. Carriers can gain access to a robust data network, allowing them to communicate directly with customers through easy, sophisticated information solutions.
Moreover, an information partner can help the business integrate existing data and systems smoothly, and develop new content and new services.
The information partner will also be able to help with mainstream marketing to build awareness about a service or content. Once consumers have opted in for the content through their personal mobile devices, the partner can help create a unique experience for the users.
The most important lesson for this consideration is that while there’s a strong tendency to think about technology, the focus needs to be on what consumers want and how they can most easily access it.
While mobile is well positioned to become the new marketing channel and technology will allow mobile devices to become fully functional, carriers are going to have a limited shot at marketing the technology to support the right programs for the right consumers. If they get it wrong the first time, customers will be very reluctant to try it a second time, no matter how much the offer has improved.
No comments:
Post a Comment