Can We Talk? How Text Messaging Can Generate Sales in the Youth Market. Thursday, January 29, 2009 Samantha Rufo

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1 Can We Talk? How Text Messaging Can Generate Sales in the Youth Market Thursday, January 29, 2009 Samantha Rufo

2 You sell cutting-edge Clothing & equipment. Shouldn t your marketing Be cutting edge too?

3 Introducing: Samantha Rufo President, nxtconcepts, Ltd. & the myguidesites.com 12 years ski industry experience Traditional marketing foundation with continual learning of new tools and methods Mobile Marketing campaigns for three years Created the first ski industry mobile platform

4 Marketing Confessions of Ski Shop Employees (that could be from your shop)

5 John Doe (Not his real name)

6 Jane Doe (Not her real name)

7 Questions to Ponder During this presentation What kind of store image do I promote? (trendy, casual, chic) Who are my customers? What are my customers tastes? Why do they buy from me? Which customers are the most profitable? Is my marketing working?

8 1. Youth oriented marketing 2. What is Mobile marketing? -Make it Personal 3. Who s Doing it? 3. Case Studies 4. Impact on Business -Pros vs Cons 5. Getting Started -In-house vs outsourced 6. Putting it all Together Agenda

9 Can I get copies of this presentation? Yes! at Should my phone be on or off? On vibrate of course. Keep it on for an upcoming poll Question!

10 Let s Do A Quick Poll Do you do Text?

11 Youth Oriented Marketing Web SMS Chat Podcasts Social Networks News Feeds Videos

12 What Is Mobile Marketing? Permission based

13 Get the message What is Mobile?

14 How it Works Person sends A message to your keyword Text guide to Instantly receive back A message, coupon, offer, event info, etc You can publish your keyword thru regular and new interactive channels They are added to your marketing database of text numbers for future marketing campaigns Login to your mobile control panel to send marketing messages when needed Get results you can track

15 Savvy Choice Mobile marketing has the same potential to change the advertising and marketing space in the same way that the emergence of the Internet did a decade ago. ABI Research

16 Make It Personal Campaign choices

17 Mobile-Voting Feedback thru text voting Fan Favorite (Feb 2008) Spectators could join-in the action, help decide the winners & win prizes. Hundreds of responses in just a few hours

18 Mobile-Instant Win The software takes care of everything. People text-in and receive an instant answer. Set up a contest anywhere. Completely paperless!

19 Mobile-Events

20 Mobile-Dating

21 Mobile-Products Point & click

22 Get a response Mobile-Coupons Promote specific Products. No advance Notice needed. Welcome message Remind people of services when they need them--before the weekend.

23 Announce event details Take ahead reservations Promote specific brands Build your marketing list Respond to people that can t make the demo Mobile-Info Pull

24 Deliver timely info Mobile-Subscriptions

25 Sell anywhere, anytime. Mobile-Commerce

26 Who s Doing It & Why Spoiler! Statistical content coming

27 Who s Doing It? ¾ all cell users have text messaging

28 Why It s Used

29 Case Studies

30 Adidas: Basketball is a Brotherhood, Vegas What: -Used SMS to notify people of exclusive or limited shoe availability. - A follow-up text in the evenings was sent with what s going on tonight info. It would list the events and places NBA players would attend that evening. How: -The messages were similar to personalized radio spots. Players discussed what shoes and apparels they used and why. -Billboards on the Las Vegas strip of the Statue of Liberty wearing an Adidas jersey with the SMS number on it. Results 45% of people who participated called back and left messages for NBA players 2000% increase in sales over a regular day at an Adidas store Preferred strong engagement with 200,000 people than with 1.5 million people who don t care.

31 TAO Nightclub What: Wanted to promote weekly parties & DJ nights old school ways were not working. How: placed call-to-action signs in bathrooms, behind the bars, on their plasma screens, website, , print flyers, and press releases. Results: Sent 2000 messages in the first 3 weeks. 220 attendees used mobile offer. Total income: $6,170 Door income: 118 men paid $15 for $1,770 (102 women has free admission). Bar income: 220 attendees average 2 drinks per person at $10 a drink for $4,400

32 Powderhorn Resort Get a Deal/Powder Alerts (Dec 8, 2006-March 8, 2007) Users could sign up to receive real time alerts of new fresh powder or last minute deals. Users would text the keyword DEALS to the short code of to sign-on to the list. 36% Redemption rate

33 Ran Pass Liquors What: Wanted an innovative way to keep customers posted on weekly discounts, specials, events, and other news, especially on slower days of the week. How: TXT-2-Order a)create a reason for people to join the permission based text list b)mobile order system Results: in progress

34 McDonalds House of Blues Concert Series (Summer 2005) 50 million Big Mac boxes 40% texted-in 3% increase in Big Mac Sales

35 University of South Florida MoBull Messenger (On-going) 9,000 students actively use the system Get campus updates Class schedules Closings Alerts Event updates Discounts from local retailers, restaurants, night clubs, sporting events, etc 10% response (costs about.10 per message & 1/10 students become customers!

36 Exercise 60 Second Text Promotion

37 Getting Started

38 Business Impact Pros Fast & easy Get s thru clutter Green coupons, incentives, contests Measurable Flexible & responsive Cost effective Cons Still in infancy Privacy concerns Creating business model Quickly evolving industry Hard to budget Right message, right people

39 Advanced: In-House 1. Apply and get a short code. Short codes are available at They range from $500 - $3,000 a month. 2. Set up the mobile servers & marketing platform. You need special servers to be able to handle the mobile platform. Then, contact every cell phone provider to activate your code & make sure you have configured it to their specifications (3-12 months). Servers can range from $1000 to $5000 depending on the volume. 3. Compliance to rules and regs. You also need to make sure you have completely followed the Mobile Marketing Association rules and regulations or you run the chance of being added to a spam list.

40 Taken Care of: Getting the short code Sending platform Built-in regulations & reporting Database/list management Campaign ideas & suggestions Approval from cell providers Regular maintenance Spam free service One monthly fee that starts around $89 Turn Key: Outsource

41 Putting It All Together

42 Where To Go From Here KISS Ask for permission Create a compelling offer Every phone is different Make it viral Piggy back on traditional marketing Track results Allocate enough set-up time Set aside enough budget Perfect your pitch

43 Resources Short Codes Mobile Marketing Association nxtconcepts Mobile Service or from your cell phone Mobile Web Best Practices SMS Language Glossary Mobile Phone Online Emulator

44 Thank you! Samantha Rufo Download the presentation online What did you think of the presentation? Text HEROES to for a short poll.