Friday, May 8, 2015

11 Things CMOs Need To Know About Mobile Marketing Strategy And App Development

I honestly cannot believe I actually have to write this but this just in, pretty much entire world is on a mobile device on pretty much the whole time they are awake. In other words, the world of mobile marketing and its ridiculously enormous benefits should come as no surprise to anyone.

I have written countless articles on the topic of mobile marketing going back years. I don’t say to imply I am some sort of soothsayer or anything like that. I merely bring that point up to highlight the fact that mobile marketing is not something someone in the marketing world should just be waking up to.
Ok enough about that.
I’ve put together a high-level list for CMOs or any marketer for that matter to consider when looking at their mobile marketing strategy. 

1. Mobile App or Mobile Website?
Many companies rush forward and create an app just because their competitors have one. But not every company needs an app. Often a mobile-optimized site will meet most requirements. Mobile apps, however, generally allow for more creativity, and better interaction with your targeted users.
According to Janna Badalian, Director of Marketing at MobileSmith, “When it comes to customer engagement, native mobile apps can give your website a run for its money.You can engage various groups of customers and offer them a superior user experience – even without a reliable Internet connection.”
2. How Are Your Customers Using Mobile?
Use analytics to understand how your target audiences are using mobile. Are they transacting or using it to gather information? Are they mostly on Android or iOS; smartphones or tablets? Translating this data to your IT will help them make the right decisions and prioritize development plans. However, sometimes requirements can get “lost in translation.” Marketers usually know best what their customers expect from a mobile app, and they can get their idea to market quicker if empowered with the right app prototyping and development tools.
3. Get to Know ASO
What is ASO? App Store optimization. The App Store can be a great source of new customers or it can be a competitive nightmare where your app never sees the light of day. Getting to understand ASO is a critical part of gaining traction and maintaining traction in the App Store. Sites like apptamin.comoffer great information on the subject. 
4. Get to Know Your Competitors
Download your competitor’s apps. Not just you, but everyone on your team should get to know what’s out there and how the competition operates. Not only will you get some ideas, you will find out what they are not doing well which will give you an opportunity to identity ways to beat them. 
5. Check Cost Per Download
This is a fundamental issue that hits the business side of marketing your company with an app. It’s one thing to develop an app, it’s entirely another to motivate customers or potential customers to download the app. 
6. Consider In-App Advertising
CMOs should look at the app landscape and focus on popular apps with frequent usability. Popular apps like Twitter allow in-app advertising or mobile advertising, and that’s one way to quickly distribute your app. 
7. Use Social Media to Acquire Users
You should consider every distribution point that you think is efficient, but certainly use mobile social media platforms. The technology offers an almost immediate access to download your app. Your creative plan to drive consumers to download must be spot on, or your app will fail. 
8. Double-Down on Mobile
The future of marketing is mobile: Mobile is the most personal device we possess, which makes it the best device to market to. In addition, time spent in mobile apps has already surpassed time spent on desktop Web, and for some parts of the world, mobile devices are the first and only computer people possess. 
9. Use Mobile App Marketing Automation
CMOs are already familiar with marketing automation on the Web; however, mobile apps present a lot of unique challenges and opportunities. On the Web, marketing automation is predominantly a B2B market, whereas apps are primarily for consumers. Also, the primary use case for marketing automation on the Web is lead nurturing, whereas with mobile apps it’s about engagement, retention, and lifetime value. Therefore, CMOs responsible for mobile apps should adopt marketing automation solutions specifically designed for mobile. 
10. Take Advantage of Real-Time Location
Location is one of the great opportunities for marketers on mobile. CMOs should experiment with iBeacons and geo-fences, not only to be able to segment users based on where they’ve been in the past, but also to design marketing interactions for users as they enter or leave certain locations. For example, switch the user experience in the app to “in-store mode” once a user passes by the iBeacon at your storefront, or send a survey to hotel guests as they leave the geo-fence of the hotel. 
11. Be Lean!
Mobile holds tremendous promise, but it’s also uncharted territory for a lot of CMOs. We can’t rely on gut feeling of past experience to build a successful mobile app. Instead CMOs should adopt a culture of data-driven decision making and build their app incrementally. That involves relying on A/B testing and analytics for optimizing both the in-app experience and all marketing interactions, such as push notifications. 

Wednesday, March 18, 2015

Ecommerce conversion rates

Compilation comparing average conversion rates for retail sites and other industry sectors

As you will know, conversion rate is often used as a KPI to review the effectiveness of Ecommerce sites. Naturally all site managers and owners want to know, "how do our conversion rates compare?"
In this post I have compiled different free industry sources focusing on retail Ecommerce conversion, but towards the end of the post a chart shows average conversion rates for a range of sectors including B2B conversion.
Before we get to the stats, one other caveat on analysis of conversion rates:
When benchmarking conversion rate, we think it's important to explain to marketing managers that they should go beyond headline conversion rates to segment conversion by different types of visitor.

March 2014 update - conversion rates by device

The Monetate Ecommerce Quarterly is a great source giving regularly updated benchmarks on conversion segmented by devices and media for large Ecommerce brands.
Their latest quarterly update shows conversion rates to add-to-basket/cart and sale across the last 4 quarters.
Add to cart rates by basket
With shoppers increasingly using smartphone and tablet to purchase, it's important Ecommerce site owners know the effectiveness of trading via these platforms.
If you're creating a business case for mobile optimised sites as explained in our mobile marketing strategy guide, this data is also valuable since it shows the variation in conversion rate by mobile type.  Tablet conversion rates are similar, but slightly lower than desktop conversion rates, suggesting people are increasingly comfortable with the experience of buying on tablets.
However, it's a different story for Smartphones since these convert at one third to one quarter of the rate of traditional or tablet devices.
This suggests smartphones are more of browse or research platform rather than a buy platform since many of the large retailers featured in this survey will have mobile optimised sites. Smartphone experiences should be personalised to show this different form of usage.
2014 update conversion rates by device retail

March 2013 update - conversion rates by channel

March 2013 update - UK average conversion rates from IMRG

With the acquisition of retail analytics service Coremetrics by IBM we lost one of our best free sources for comparing conversion rates. Within the UK data is compiled for members by retail category. These aren't usually shared, but the overall trend was recently published in this 2012 Ecommerce report from Channel Advisor-IMRG.  This chart shows that average conversion rates for visits to sale of 4 percent. Note that these are typically for large brands, so conversion rates for less well-known brands that don't have the credibility, trust or large base of returning customers will generally be lower. Based on previous UK compilations from Coremetrics when their data was published we can say that typical average conversion rates for established retail brands are...
Conversion rate (visit to add to basket): 8% Conversion rate (visit to sale): 4%
It's interesting that there is a typical 50% abandonment from basket through checkout to sale, even with the efforts on checkout optimisation. It suggests many will add to basket when researching and comparing, but may eventually buy elsewhere online or offline. This is a screengrab of the Coremetrics data from 2009 which shows that visitor sessions with an add to basket or cart are typically double those of order or sale sessions.

Options for segmenting conversion rate

As Dan Barker suggests in his advice we mentioned at the start of this post, conversion rate gets more useful as you break it down by different types of visitors with different intent and a different relationship with the retailer. Different conversion rates and average order values can then be segmented for different audiences to understand and work to improve the quality of traffic or strength of propositions, for example:
  • First time, repeat visitor or registered customer conversion
  • Referring channel conversion, e.g. paid or natural search, social media, affiliates, display advertising
  • Search type, e.g. paid or natural, brand, generic or long-tail
  • Product category type - conversion rates are much higher for simple commodity products for example - flower purchase (double digit percentage) compared with a higher cost product that will often be purchased in store (for example beds or furniture which which will often be less than one percent).
  • Promotion type or seasonal sale - the IMRG data and Coremetrics data below shows that conversion rate can increase dramatically at these times.

Conversion rates for non Ecommerce sites including B2B conversion

I'm also often asked about conversion rates in other sectors, particularly for business-to-business lead generation. While similar caveats about sub-category, type of visitor and strength of brand apply, this is a useful compilation from  Marketing Sherpa of average conversion rates by industry sector.

Dec 2011 update

We'll update on the latest figures in 2011. In the meantime, this IDM/Coremetrics US Black Friday / Cyber Monday conversion rate averages shows some interesting data on conversion for mobile devices and visitors from social media including Facebook and Twitter. Still, it's natural we will still all be asked "how to we compare?", so we have compiled some of the best sources of conversion rate statistics here. We suggest you compare these four key types of conversion rate: 1. Overall site session (visit) conversion rate as reported in this 2010 Coremetrics example (US data - see sources at the end of the post).2. Visitor conversion rate calculated by dividing the number of conversion events by the number of unique visitors within a defined time period. 3. Shopping basket conversion rate (percentage who add item to basket who convert, e.g. 4. Session search conversion rate (percentage of visits which include a search (notice that conversion rate and average order value (AOV) tends to be higher for these visitors.

Original sources for Ecommerce conversion rate statistics

These are our original recommendations on the best sources for comparing Ecommerce conversion rates:
  • UK conversion rates from Coremetrics - Coremetrics is rated by Forrester as one of the premium web analytics systems and offers sector specific conversion benchmarks to clients. Reports conversion rates as order sessions with clearly stated definitions of different types of conversion.
  • Fireclick Index of conversion rates - provides conversion rates from less well-known analytics provider in different categories including Fashion / Clothing, Electronics and software
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