The mobile industry has nearly doubled since 2011 with Smartphone ownership, and consumers increasing use of mobile social content. According to comScore’s December 2011 annual mobile report, about 28.1% of US mobile subscribers own a smartphone, which is a 27% increase since 2010. According to the below statistics, US and Canadian mobile users are more prone to access social networking sites and blogs through their mobile phones with a 35.3% and 31.2% respectively. Americans are also more liked to use maps and search the news on their phones. Hence, the mobile advertising and marketing was claimed to be the fastest growing sector in 2011, compared to mobile content and access, and online social media, increasing by 53.7% within one year to $3.39 billion. Mobile marketing is also predictied to grow faster than advertising, between 2012-2016, due to location based coupons and marketing apps revenue streams.
One interesting case to look at is how Redbobx a movie and game rental business, with their 27,000 point of sale kiosks, have discovered solution to their challenge that drove 1.5 million texts and add 200,000 mobile subscribers to their Redbox’s “Text Club” in only 10 days!
With no employees on site to attract customers or offer extraordinary service, Redbox decided to use the mobile marketing channel in order to build and create relationships between the brand and their customers, in addition to improve and strengthen their customer service.
“Engaging with a customer through the mobile channel offers access, connectivity and engagement with that customer,” Gibby, Vice President Marketing, Redbox.
The Mobile Phone Strategy:
- To connect with and serve customers: finding the closest kiosk that offers their DVD of choice
- To get new customers at the point-of-retail: discount promotion at the Redbox kiosk, through a mobile marketing effort, “pulling” new customers in
In order to move away from the email “push marketing” strategy, Redbox implemented a “10 Days of Deals” campaign through mobile marketing creating a pulling effect. This campaign allowed new and existing customers to send a text and quickly receive a promotional code providing them with a discount between 10 cents - $1.5 off their rental.
Their call-to-action stickers were placed on their 27,000 kiosks, on their facebook page with 3 million fans, and emailed to more than 30 million addresses. Redbox also released a traditional media press release, as well as reached out to moms and deal blogs.
By limiting the duration of the campaign and offer, they were able to create a sense of urgency and scarcity amongst their customers which encouraged them to rent more frequently. By giving customers a random discount, with the amount unknown until the return text is received, this created a sense of fun for the participant.
- Redbox was featured in around 1000 traditional and online media outlets
- Received 7 million impressions from organic media exposure
- Generated 1.5 million text messages
- Included 400,000 unique customers
- Created 200,000 new SMS subscribers
- Redbox’s most valueable customers were a part of the SMS program
Conclusion: This mobile marketing strategy has proved to be very successful, as Redbox was able to increase their most valuable customer base at a huge scale.