Traditional channels like email are becoming less effective, prompting a search for innovative avenues. This is where SMS and mobile wallet marketing have gained prominence, capitalizing on their potential to directly connect with consumers in a valuable manner.
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GLOIn the current economic landscape, retailers are constantly striving to establish more meaningful connections with their customers. This endeavor has led them to shift their focus towards utilizing the communication channels that customers are already engaged in.
While the concept of third-party advertisements is not new, it is experiencing a resurgence as businesses aim to excel in personalized marketing. A case in point is The RealReal, which recently announced the integration of third-party ads to increase its revenue during its second quarter earnings call on August 8th.
Traditional channels like email are becoming less effective, prompting a search for innovative avenues. This is where SMS and mobile wallet marketing have gained prominence, capitalizing on their potential to directly connect with consumers in a valuable manner.
A sought-after location in the marketing landscape is the mobile lock screen, known for its high visibility and engagement. Users interact with their lock screens numerous times a day, making it an ideal space for brands to secure a presence.
Alex Campbell, co-founder and CIO of Vibes, a mobile engagement platform, discusses the role of mobile technology in marketing. As artificial intelligence (AI) shapes the landscape, mobile technology’s influence is expected to grow. Campbell highlights that texts are read within three minutes by 97% of recipients, whereas emails might not even be noticed.
Expanding on this, personalized notifications on the lock screen enhance the likelihood of retailers’ messages being acknowledged and acted upon. Whether it’s a time-sensitive discount, a product launch, or a special event, the mobile lock screen offers an opportunity for immediate impact.
However, Campbell emphasizes that mobile marketing should be used thoughtfully and strategically. Content matters significantly, and care should be taken to ensure relevance and value in messages.
Through its AI-powered Nexus engine, Vibes aims to provide clients with insights and best practices from a diverse customer pool. This wealth of information often challenges assumptions, as demonstrated by a case involving a client targeting new mothers. AI analysis revealed that 7:30 p.m., when mothers have time to shop after settling their children, was a more effective messaging time than the initially assumed 10 or 11 a.m.
Given the prime marketing space of the mobile lock screen, consumers are quick to opt out of irrelevant or frequent messages. Messages must be purposeful and tailored to avoid this. Campbell suggests that messaging once a week might be optimal, depending on the brand.
Personalized messages delivered through a combination of SMS and mobile wallet strategies outperform email. Campbell states that offers sent through the mobile wallet result in approximately 3.7 times higher returns compared to link-based methods like email. The device serves as a reminder, alerting users about time-sensitive offers and reinforcing the urgency of the deal.
For example, a Vibes client focusing on in-store visits saw a 26% increase in redemption rates by sending a reminder 48 hours before an offer’s expiration.
Campbell asserts that the most effective mobile programs guide customers seamlessly through their purchasing journey, encompassing research, store information, and other essentials. The goal is to provide meaningful value to the customer, whether through personalized discounts, reminders, or rewards, regardless of the interaction’s nature.
Source: PYMNTS
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