Mobile Messaging Latin America

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1 Mobile Messaging Latin America Optimizing Revenues from Messaging Miami, September 24 th, 2002 Alberto R. Escobar Strategic Marketing Director Nextel de Mexico Agenda Optimizing Revenues from Messaging Introduction Key drivers for Mobile Users Defining what are the key drivers for messaging users are Processing demographic data to serve your customer correctly Promotional and seasonal campaigns to acquire new users 1

2 Optimizing Revenues from Messaging Introduction Key drivers for Mobile Users Defining what are the key drivers for messaging users are Processing demographic data to serve your customer correctly Promotional and seasonal campaigns to acquire new users Key Trends in the Mexican Mobile Market (Millions) '00 '01 2Q' Wireless Wireline 1 (Millions) '00 '01 2Q' Paging Trunking 2

3 K ey D rivers for Mobile Users We are living in a world driven by change and connectedness. Technology has made collaboration and communication more important than ever before and the path to success is to network. Business leaders want to thrive in the network culture. The best way to stay ahead is to rely on relationships to find the answer to a question, to develop an idea, to partner on a project, to bring in new clients. It s about life as it is about business because the demarcation between business and personal has blurred. In our current society we have to be connected in order to succeed personally and professionally. Optimizing Revenues from Messaging Introduction Key drivers for Mobile Users Defining what are the key drivers for messaging users are Processing demographic data to serve your customer correctly Promotional and seasonal campaigns to acquire new users 3

4 K ey Incentives for Messaging Mobile Messaging Incentives for Operators Breakthrough the voice-only model into new revenue models were the operator shares the revenue as well as the investment costs with a third party like interoperability carrier. Loyalty generator, Your customers can develop a bonding relationship with your service. There are added benefits that distract customers from considering churning service or going to your competitor Mobile Messaging Incentives for Users Person to person communication Paid on demand Discrete communication K ey D rivers for M essaging Users There can be drivers that affect positively the intent of having the service, but there are negative drivers that are currently affecting the decision of the user to have the service. These are some of the questions around the service: It s messaging a fashion? Do I need to be more discrete or private in my communications? Will I be better communicated to manage my business and life? Physical factors that have to be with the ergonomics of the equipment, there are hardware issues regarding screen size, full keyboard availability, weight, size, GUI, etc. There is the factor of the network so interoperability, national and international, is the name of the game. Mobile to mobile? Mobile to desktop? 4

5 K ey D rivers for M essaging Users Is pricing The Driver for messaging? Price factors can be tricky, because if a voice call is more cheap it could kill your messaging service. Message price VS Voice Call price, and on the case of Nextel a dispatch call could be better and more inexpensive. Unlimited messages buckets could help boost the adoption of messaging Telcel started with free messaging, then started charging 10 cents per message and now it s charging 1 cent per message, with out interoperability. K ey D rivers for M essaging Users What are the real drivers? Discrete(Private) Communications User Interface keyboard, screen, etc. Full Interoperability There is a need served The customer understand his need and perceives that he is getting a good return on his investment. Price (depending on the market) We must educate the customer, we must teach the old guys and motivate the youth. 5

6 Optimizing Revenues from Messaging Introduction Key drivers for Mobile Users Defining what are the key drivers for messaging users are Processing demographic data to serve your customer correctly Promotional and seasonal campaigns to acquire new users Segmentation to succeed in the messaging arena The right segmentation Will help you understand... Who are your customers?.(and your customer s customers) Where they are?...where do they live?.. What they do for a living?... their shopping habits, their likes & dislikes, etc.,...so later, you can succesfullty map out the right segments and ensure that your marketing campaigns, partners & sales channels attack the right targets and grab a portion of your customer s wallet spending budget accordingly. 6

7 Market Segments What they want? Consumer (Residential or Teens) Calendar events, Christmas, St Valentine, Love subject, main C2C SMS Dating Services, how to get friends, flirt Chatting Logos, Communication device for Teens, in school, from room to room, Entertainment, party info, games, comics, TV voting, News, daily joke, traffic, cinema, TV Series, stars gossip,.. Money, Quizz, how to win «a million», couponing, lotto,.. Buying, Cinema ticket, Drinks Handset Personalization, how to be unique.ring tone, express your personality!, Logo, for your mobile or to offer to somebody Market Segments What they want? Business they need privacy Alerts, Job, Traffic info, Banking account info, News, Stocks Services, Info, Swing trading,.. Emergency services, health care, SOS, Sales Force automation, Inventory, Flash discount, Sales upload, motivation info, After Sales management, diagnostics, Customers feedback, Remote detection, maintenance, Pollution monitoring, Business Segments Agriculture Construction Services Mining Commerce Government Transportation Communication Manufacture Size Employees Micro 0-5 Small 6-20 Medium Large

8 Market Segments What they want? Blended - Business Professional with personal needs Alerts, Job, Traffic info, Banking Calendar events, Christmas, St account info, News, Stocks Services, Info, Swing trading,.. Valentine,Dating Services, how to get friends, flirt Chatting, Logos, Emergency services, health care, SOS, Communication device for Teens, in Sales Force automation, Inventory, school, Entertainment, party info, Flash discount, Sales upload, games, comics, TV voting, News, motivation info, daily joke, traffic, cinema, TV Series, After Sales management, diagnostics, stars gossip,money, Quizz, how to Customers feedback, win «a million», couponing, lotto,.. Remote detection, maintenance, Buying, Cinema ticket, Drinks Pollution monitoring, Handset Personalization,Ring tones Optimizing Revenues from Messaging Introduction Key drivers for Mobile Users Defining what are the key drivers for messaging users are Processing demographic data to serve your customer correctly Promotional and seasonal campaigns to acquire new users 8

9 Promotional and Seasonal Campaigns Campaigns will always depend on the focus market: business or consumer, but what ever road we choose we need to to break the following paradigm. The consumer thinks that mobile companies should communicate differently, because the only thing that wireless companies are telling them is how low their rates are. Users usually feel that they have to stay a step ahead of obsolescence. They don t feel like anyone is really an advocate for providing them practical solutions that will help them manage business and leverage relationships to make life better or easier. Promotional and Seasonal Campaigns Therefore Campaigns have to Serve the following role: Differentiate from competitors and build stronger emotional relevance Demonstrate that understanding the value of leveraging your networks is to foster your business growth and improve your productivity. Offer leading edge services and applications that will make success happen. Recognize that the world is a network of unique relationships that are used get ahead. If we can achieve this, we don t have to worry about seasonal campaigns, but if you want to spend some money on Valentines, Christmas, etc., you can do it. 9

10 In Conclusion We live in a time were connectedness it s the name of the game. Messaging is big, and can help us to stay on top of the game Today, there are drivers more important than price to make messaging successful. To maximize profitability we must teach and motivate customers to use the service. This can be achieved through very clear communication demonstrating the value for the user while using this service. Thanks!!! Alberto R. Escobar Strategic Marketing Director Nextel de Mexico alberto.escobar@nextel.com.mx 10