2012 was definitely a banner year for mobile: Subscriptions hit a whopping 6 billion, many new devices hit the market and Apple’s and Google’s app stores exploded with new apps—a combined total of 1.4 million. With the entire planet “going mobile,” retailers that aren’t already onboard will be close behind.
But something was missing—analytics, measurement and embracing mobile’s differences. Retailers must learn to measure the effectiveness of mobile engagement, be it advertising, push notifications, SMS or mobile email, and then act on that data. They must also understanding that mobile is not email or web banner advertising for a smaller screen. This is increasingly obvious to retail marketers, many of whom have recognized they can’t apply the same old Web metrics to mobile and get the same results and drive the same sales. The channels differ, the experience is different and so is the engagement.
Here are five predictions on what the mobile messaging and measurement landscape will look like in the year ahead:
1. SMS will remain relevant. Anyone who’s received a text reading “786-454-5736 WE BUY JUNK CARS CASH $300/400 COMPRAMOS CARROS” might disagree, but SMS will live on despite newer and arguably more visually engaging formats precisely because of its simplicity and directness. “Read our message. Text 1 to opt-in, text 2 to opt-out.” Simple. Look for SMS to remain highly relevant in 2013 in both the developed and developing world, where feature phones outnumber smartphones and purchasing power is growing. With messaging being very limited, retailers will learn to make every character count.
2. Retailers will demand the same level of sophistication from mobile as they do from other channels. Current mobile analytics aren’t meeting the needs and challenges of retailers seeking to engage or retain their mobile audiences and show ROI. But now that the conversation has moved from whether to go mobile to how, retail marketers will demand the same sophistication that has been applied to print, TV and desktop measurement to gauge campaigns’ effectiveness and justify their growing mobile budgets.
3. Big Data will drive engagement, retention and revenue. The focus on Big Data will shift to smart data. Retail marketers will start paying more attention to metrics that go beyond data gathering to the analysis of deep granular information—e.g., location, coupon clicks, organic vs. targeted re-engagement—that provides customer context and makes for successful targeting of individuals. The result makes for smarter, more engaged customers, driving both retention (far less costly than acquiring new customers) and sales both in-store and online.
4. Retail marketers will fine-tune their mobile messaging. A/B split testing for mobile campaigns will boom, and become a regular part of app development and management. New startups offering analytics services that go far beyond download counts and open rates to deliver better engagement will come on the scene. Through A/B split testing and more precise targeting, retailers will be more effective, fine tuning their marketing messages to sales-boosting perfection. Bombarding customers with poorly timed or irrelevant mobile messages will become so 2012.
5. Mobile metrics will reach beyond downloads, swipes and taps. Not only will retail marketers be doing more A/B testing, they’ll be using gathered data for message retargeting to unresponsive customers, leaving no stone unturned in their quest to engage, retain and maximize the value of their audiences. There will be significant investment in metrics like action analytics—campaigns tied to actions and ROI—that go beyond simply tracking who downloaded what, when, and how many times. And while there might not be an ironclad set of industry-wide measurement standards by the end of2013, mobile metrics will make huge strides in opening up a world of constant testing, feedback and improvement for retailers and their customers alike.
Brendan O’Kane is CEO of OtherLevels.
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