A marketer s guide to the mobile mind shift

A Marketer s Guide To The pdf A Marketer’s Guide To The Mobile Mind Shift Landscape The Mobile Marketing Playbook by Thomas Husson and Jennifer Wise December 8, 2015 FOR B2C MARKETING PROFESSIONALS FO.

by Thomas Husson and Jennifer Wise

December 8, 2015

Key Takeaways Marketers Are Unprepared As Mobile Dominates Customer Interactions Three out of four US mobile subscribers have smartphones, but many marketers are just getting started in building sites and apps for them and many face organizational hurdles

The Mobile Mind Shift Index Reveals How To Target Mobile Customers

Forrester analyzes customer groups through the Mobile Mind Shift Index, a tool that scores any group of customers on its mobile intensity, expectations, and behaviors

Engage Mobile Customers Throughout The Customer Life Cycle

Use mobile advertising, including search, to reach customers in the discover phase; mobile sites for the explore phase; and apps for the buy, use, ask, and engage phases

Why Read This Report

Your customers are on smart mobile devices

The questions are: how many, what do they

expect, and what are they doing? The average

US smartphone owner spends almost two hours

per day interacting with their phone, and in

many geographies, more than half of desirable

customers are already on smartphones To

engage these customers, marketers have

launched mobile apps and optimized their

websites for mobile browsing, but this will not

be sufficient They must think beyond mobile

as a standalone channel and, instead, seize the

opportunity that mobile opens up to transform the

customer experience To analyze your customers

and their behavior, use our Mobile Mind Shift

Index, a tool that describes customers’ intensity,

expectations, and behaviors when it comes to

mobile interactions

This is an update of a previously published report;

Forrester reviews and revises it periodically for

continued relevance and accuracy

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© 2015 Forrester Research, Inc Opinions reflect judgment at the time and are subject to change Forrester ® ,

Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA +1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com

Table Of Contents

Mobile Devices Are Central To Marketing

And Customer Experience

Mobile Is Spreading At Warp Speed

Marketers Find Engaging Customers On

Mobile Enticing But Challenging

Use The Mobile Mind Shift Index To Analyze

Your Mobile Customers

Younger Consumers Are Further Along On

The Mobile Mind Shift

Using The MMSI To Inform And Define A

Mobile Marketing Strategy

Recommendations

Align Your Mobile Marketing With The

Customer Life Cycle

Supplemental Material

Notes & Resources

We used data from Forrester’s North American Consumer Technographics® Online Benchmark Survey (Part 1), 2015; Forrester’s US Consumer Technographics Behavioral Study, January 2015

To October 2015; and Q2 2015 Global Mobile Maturity Executive Survey in writing this report

Related Research Documents Craft A Maturity-Based Mobile Strategy The Global Mobile Revolution Is Just Beginning Marketing Strategy For The Mobile Mind Shift

Landscape: The Mobile Marketing Playbook

by Thomas Husson and Jennifer Wise

with Luca S Paderni, Kasia Madej, and Laura Glazer

December 8, 2015

Mobile Devices Are Central To Marketing And Customer Experience

In the past two years, mobile has taken off Mobile traffic has already surpassed desktop traffic in countries like India, Nigeria, and South Africa and 13% of marketing leaders we surveyed reported that 50% of their total web traffic comes from mobile.1 Their customers pull out their devices at any spare moment and expect any answer they seek to be instantly available on their phones The explosion

in interactions through smartphones and tablets has created a permanent change in the attitudes of customers, a transformation we call the mobile mind shift:2

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

How should marketers approach customers on these devices? We’ll explain by viewing the mobile marketing landscape through three lenses: 1) How fast is mobile sweeping through the population?, 2) How fast are marketers adopting it?, and 3) How can we segment and evaluate any specific customer group?

Mobile Is Spreading At Warp Speed

Mobile is fast becoming the primary channel in which customers interact and engage Based on all the metrics that marketers and Forrester use, it is rapidly dominating the digital landscape and becoming part of every marketing interaction Some benchmarks are:

› Smartphone penetration is skyrocketing By the end of 2015, 70% of the US population will have a smartphone (see Figure 1) That’s up from 48% just three years ago Smartphones have swept across the globe; 84% of South Koreans, 79% of Australians, and 74% of UK residents will have them this year As a result, marketers can reach nearly any customer group in any developed country through their phones The phenomenon is accelerating all over the globe with 55% of Russians, 53% of Brazilians, 44% of Chinese people owning a smartphone at the end of 2015.3

› Smartphone owners use their devices continuously and promiscuously Multiple studies now show that consumers unlock their phones to interact with them more than 100 times per day.4 Data that Forrester collects from customers’ mobile phones shows that the average smartphone owner accesses 25 different apps in the course of a month and spends 1 hour and 19 minutes per day interacting with apps on their smartphone.5 All this access generates a Pavlovian response — the consumer learns that whatever the question is, the answer is on the phone

› Smartphone owners are looking for answers, not just having fun Thirty-six percent of US online smartphone users research physical goods on their devices at least once a week and about 30% are using shopping apps monthly.6 Among US online adults, 36% are active mobile banking users, up from 13% in 2011.7 Whatever industry you’re in, it’s a good bet your customers are making decisions based on what their mobile phones tell them

FIGURE 1 Smartphone Penetration Is Surging In Many Countries

Germany US UK Australia South Korea

75%

81%

77%

69%

64%

57%

85%

79%

74%

70%

64%

71%

62%

59%

50%

(f) = forecast

Note: All numbers are rounded.

Source: Forrester Research World Mobile And Smartphone Adoption Forecast, 2015 To 2020 (Global)

Smartphone subscribers as a percentage of total population by country

Marketers Find Engaging Customers On Mobile Enticing But Challenging

In decades of research at Forrester, we’ve never seen attitudes like those that mobile generates — marketers are intensely eager to master this new form of interaction but have great difficulty in figuring out how to do so Our recent survey of digital marketers reveals that:

› Marketers view mobile as yet another standalone channel Marketers often have a narrow-minded vision of what mobile can represent: They see it primarily as a channel and forget the bigger picture While most marketers agree mobile represents a strategic shift in its ability to close the gap between offline and online worlds, only 17% agree they have used mobile to transform their overall customer experience offline.8

› Marketers see mobile traffic exploding and are scrambling to engage with it Most marketers are not ready to cope with the growing mobile traffic; for example, only 30% regularly use mobile search engine optimization.9 Forty-seven percent of marketers we interviewed also openly told

us that mobile services are a scaled-down version of their online initiatives.10 Instead of delivering contextual experiences answering customers’ needs in their mobile moments, too many marketers focus on adapting content to the size of the screen

› And are still in love with branded mobile apps, despite lack of success Instead, they remain enamored with apps: 83% say their company has an app, and 13% report that their company has more than 10 apps However, the challenge is few consumers use branded apps: On average, only five apps that consumers download from the app store make up a sizable 84% of time spent on non-preloaded apps.11

› They even struggle with mobile advertising, the simplest form of mobile engagement The easiest way to get in front of mobile consumers is to advertise on apps or sites like Facebook

or YouTube Even so, the marketers we surveyed were mostly newbies; 37% are spending less than $50,000 a year on mobile advertising.12 Here’s a typical comment from a marketer struggling

to get started: “We’ve started to test mobile display placements and creative, but the targeting, measurement, and our mobile sites aren’t quite where they need to be in order to move full steam ahead.”

› They suffer from organizational confusion and lack of mobile resources Moving behind

advertising to make great mobile sites and apps is essential for engaging customers, but

organizational confusion and lack of experience hobbles mobile marketers’ strategies.13 Most marketers agree they lack budget and resources: only 10% consider themselves to be mobile-savvy organizations.14

Use The Mobile Mind Shift Index To Analyze Your Mobile Customers

This technology shift combines a great deal of marketer uncertainty with customer-driven urgency Marketers in this situation cannot determine appropriate strategies without a precise tool to measure the mobile activity not just of the population, but of their customer group as well That’s the purpose

of the Mobile Mind Shift Index (MMSI), Forrester’s instrument for analyzing customers and their mobile readiness.15 Our latest version of the Mobile Mind Shift Index measures how far any individual’s

attitudes and behaviors have shifted along three dimensions, each of which marketers can use to determine how best to engage customers (see Figure 2):

› The Mobile Intensity Score determines if it is appropriate to connect with customers This score, on a zero-to-100 scale, indicates how intensely people use interactive mobile devices The Mobile Intensity Score is based on how frequently people interact with smartphones and tablets and the diversity of locations in which they interact, both within and outside the home.16 The online

US average Mobile Intensity Score is 28, but mobile intensity varies greatly globally; it’s 42 in metro Brazil, 38 in metro China, and only 19 in the UK (see Figure 3).17 When scoring a group of consumers, a score above 35 indicates a high level of readiness for mobile interactions

› The Mobile Expectation Score determines the urgency to create mobile applications This score, also on a zero-to-100 scale, indicates what people expect from companies on their mobile devices We measure expectation based on a series of questions about what type of mobile

presence consumers anticipate from companies On this scale, the online US average is 41, metro China is 64, South Korea is 46, and Germany is 27.18 A score of 50 or higher indicates a group that’s eagerly expecting mobile sites or applications

› Three Mobile Behavior Scores determine which type of features people are ready for We calculate three behavioral scores, each on its own zero-to-100 scale The Communicate Score indicates participation in mobile communications behaviors like reading email and texting; the average US online adult has a Communicate Score of 38 The Consume Score measures behaviors like reading news or watching video, with an average score of 26 The Transact Score tracks behaviors like online buying or service, with an average score of 14 When evaluating mobile communication or content features, look for a score of at least 30 among your target group; for transactions, a score of at least 25 indicates readiness

FIGURE 2 The Mobile Mind Shift Index Of Online US Consumers

Mobile intensity

Base: 61,222 US online adults (18+)

Source: Forrester’s Global Consumer Technographics ® Online Benchmark Survey, 2015

38 26 14

28

TRANSITIONAL UNSHIFTED SHIFTED

80 70 60 50 40 30 20

COMMUNICATE

CONSUME

TRANSACT

41

FIGURE 3 The Mobile Intensity Score Changes With Geography

Base: 2,000 to 61,222 online adults (18+)

Note: “Metro” refers to surveys that reach only inhabitants of major cities.

Source: Forrester’s Global Consumer Technographics ® Online Benchmark Survey, 2015

Metro Brazil

UK Germany US Metro China

TRANSITIONAL UNSHIFTED SHIFTED

0 10 30 40 50 70 80 90 100

Mobile intensity

42 38 28 24 19

Younger Consumers Are Further Along On The Mobile Mind Shift

Let’s see how you can use these scores in practice to prepare for targeting a specific group with mobile ads, sites, or apps Consider a company like a health insurer that has two potential target groups: young US online consumers aged 18 to 24 and older US online consumers aged 65 and up As you might imagine, these two groups have completely different mobile profiles (see Figure 4):

› The 18-to-24-year-olds are avid mobile consumers Their Mobile Intensity Score of 52, higher than all other online adult age groups, indicates heavy and varied use of mobile devices Their Mobile Expectation Score of 56 is also very high, indicating that any marketer whose brand is not present or engaged will disappoint these young consumers Finally, their Communicate Score and Consume Score indicate they’re ready to consume and act on mobile information, but their Transact Score shows they’re less experienced with mobile transactions, as you might expect with younger consumers who have less disposable income A health insurer targeting this group should create a full-featured application that provides content, but it may find this group of customers understandably reluctant to sign up for insurance on a phone

› By contrast, those 65 and over are just beginning to adopt mobile interactivity With a Mobile Intensity Score of only 8 and low Mobile Expectation and Mobile Behavior Scores as well, this group is not really ready for sophisticated mobile interactions An insurer that invests in mobile apps for this group is well ahead of its market

FIGURE 4 The Mobile Mind Shift Index Of US Online Adults In Two Age Groups

Mobile intensity

Base: 7,592 to 8,816 US online adults in the specified age range

*Base: 61,222 US online adults (18+)

Source: Forrester’s North American Consumer Technographics ® Online Benchmark Survey (Part 1), 2015

Mobile expectation

14 7 2

47

TRANSITIONAL UNSHIFTED SHIFTED

0 10 30 40 50 60 70 80 90 100

COMMUNICATE

CONSUME

TRANSACT

54

US online average*

Mobile behavior 53

39 22

COMMUNICATE

CONSUME

TRANSACT

16

65 and over

65 and over 65 and over

18 to 24

18 to 24 18 to 24

8

20 Age range

Using The MMSI To Inform And Define A Mobile Marketing Strategy

Let’s examine the situation of a company that makes baby products — is its target market of young parents open to and expecting mobile engagement? We’ll analyze their readiness by computing the MMSI of US online parents of children 4 years old or younger (see Figure 5):

› Mobile is appropriate for this group of parents With a mean Mobile Intensity Score of 39, this group is well above average If you’re marketing to them, mobile is worth pursuing Fisher-Price, for example, produces multiple apps to amuse babies and remind parents to associate their brand with baby toys and education The company even makes a colorful plastic case that holds an iPhone and, presumably, keeps it safe from the rough treatment a baby might subject it to

› They expect mobile utility Parents of young children have a Mobile Expectation Score of

59 This score demands a response At the very least, any marketer targeting this group must configure a mobile site to provide easy access to mobile content Apps like Johnson & Johnson’s Bedtime application, which helps parents with babies’ sleep problems, would be readily accepted

by this group

› They’re ready to communicate and consume but less ready to transact With a Communicate Score of 54 and a Consume Score of 40, these parents are ready for interactive features and content Oceanhouse Media, for example, makes a $14.99 app with interactive Dr Seuss books that has received 75% four- and five-star ratings in the Apple App Store.19 An online retailer that sells baby products might have less success; these parents have a Transact Score of 25, which means this group is not that avid for mobile transactions

FIGURE 5 The Mobile Mind Shift Of US Online Parents Of Children 4 Years Old Or Younger

Mobile intensity

Base: 6,853 US online adults (18+) who are parents with a child under the age of 4 living with them

*Base: 61,222 US online adults (18+)

Source: Forrester’s North American Consumer Technographics ® Online Benchmark Survey (Part 1), 2015

39

TRANSITIONAL UNSHIFTED SHIFTED

0 10 20 30 40 50 60 70 80 90 100

US online average*

40 25

COMMUNICATE

CONSUME

TRANSACT

Recommendations

Align Your Mobile Marketing With The Customer Life Cycle

Once B2C marketers have used the Mobile Mind Shift Index to assess what their market is ready for, they can see where mobile fits into their marketing efforts Even though there is no one-size-fits-all solution and some tactics may fit at different stages, we recommend using the customer life cycle as a lens to focus marketing efforts where they’re most effective.20 As you align your mobile efforts with the life-cycle stages, recognize that mobile customers change their behavior quickly and that you’ll need to keep up with their increasing appetites for ever-easier mobile interactions

› Discover stage: Use mobile advertising wisely and in context Recognize that most customers will not start with your app or site but by searching for information Mobile search and advertising

on media sites and apps can enhance the discovery process Norwegian Cruise Line (NCL), for example, targets search ads according to day part to boost its contextual relevance If you’re