We can build it, but will they come? "Mobilising" your customers

It is easy to get caught up in the enthusiasm for smartphones that is sweeping the country at the moment and move swiftly towards developing a mobile offer, but despite the constant increase in smartphone ownership over the past five years, we need to remember 45% of the British public still do not own one. As a consequence of this, any future thinking or planning about the use of mobile technology (for example, making your loyalty scheme available over smartphone, sending targeted advertising based on a smartphone’s location, or mobile banking) should be carefully thought out, and adjusted to fit the needs of your customers. It is not just a case of ‘build it and they will come’.

For the moment at least, smartphone ownership continues to be most prevalent among the young and/or the more affluent. This in itself can provide a useful guide about the appropriateness of developing an offer based specifically around mobile technology, when considered in relation to your customer base: if your customers are not smartphone users, then developing a mobile offer may be destined to fail before it even begins. It also serves as a reminder that barriers to mobile technology use are not all linked to personal preference. Real incomes are still falling, and while many consumers may ring-fence their expenditure on their phones, others will want to make savings. Care should therefore be taken not to wholly exclude consumers whose current circumstances prevent them from owning a smartphone, perhaps, by offering non-mobile alternatives where possible.

What we also see are mixed feelings about mobile technology offers among those consumer groups who are most likely to own a smartphone. There are two phenomena here: firstly, that in general the young and the more affluent are most likely to agree that they would use new mobile technologies, but secondly, that their enthusiasm is not exactly overwhelming:

• 43% of 16-34 and 39% of AB Social Grade agree that they would be happy to house their loyalty cards on their mobile phone
• 42% of 16-34 would be happy to receive real time loyalty offers and discounts by connecting to a store’s Wi-Fi
• 36% of 16-34 year olds would be happy for their mobile phone’s location to be used to provide them with relevant loyalty offers
• 37% of 16-34 year olds and 31% of AB Social Grade would be happy to use their mobile phone to manage their bank account

These figures by no means present us with a hopeless picture for the future, but they do act as a useful reminder that we should be cautious as no launch of a new technology and/or offer can be without risk. In doing so, they provide us with a useful basic framework of considerations that we should look at before investing in new technologies:

1. Know your customers: are they smartphone users? Are they likely to become smartphone users? What are the barriers to smartphone use?
2. Start slowly: a full scale launch of a new technology may not be welcomed by even by the most seasoned smartphone user. Launching your offer carefully, with appropriate support and communications will help avoid ‘scaring the horses.’
3. Listen to your customers: is the mobile solution you are offering useful for them? What do they like and what do they not like? Keeping your offer fluid and ensuring it is tailored to your customers’ needs will go a long way to ensuring its success.

So, what conclusions can we draw? Smartphone ownership will undoubtedly continue to increase over the coming years, and with it, the available mobile technologies from retailers, and the willingness of consumers to use them. Perhaps for the moment though, we need to temper our enthusiasm for embracing mobile technology, with the sense that we are in a period of transition: yes, smartphone ownership is increasingly prevalent, yes, a mobile offer may well be the best way to ‘future proof’ your interactions with your customers, but this needs to be balanced against the needs of consumers who do not yet have access to mobile technology, or who may never do.

For businesses breaking into the mobile technology space, what this ultimately means is making informed decisions about your mobile strategy based on knowledge of who your customers are and what they want. This will surely help ensure the success of your mobile offer both now, and in the future.

This blog was written by David Shaw and Fiona Moss of Ipsos Loyalty.