Best Practices Series

Urban Airship
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MOBILE RELATIONSHIP MANAGEMENT

Delivering value to customers on the small screen
The world has gone mobile, and it is never going to return to the relatively sedentary days of PC computing. But engaging with customers on mobile devices is extremely competitive and challenging. In the following pages, Urban Airship concisely outlines the opportunities presented by the rapidly expanding mobile market and issues businesses face trying to engage customers in this most personal digital environment. The Price of Free is a must-read primer for any executive involved in the mobile channel. LiveLOOKs mobile co-browsing solution takes the idea of value exchange discussed by Urban Airship and makes a concrete case for co-browsing with live agent support right on the mobile device. Mobile is sure to be the dominant technology trend of the next decade, and marketers and business executives need to continue to create true value for their customers if they are to find and keep their place on the small screen.

THE PRICE OF FREE Understanding the new metrics in the mobile value exchange

LiveLOOK
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THE IMPORTANCE OF ADDING A VISUAL COMPONENT TO A MOBILE SALES & SERVICE STRATEGY

Bob Fernekees VP/Group Publisher CRM Media Information Today, Inc.

Bob Fernekees,
Group Publisher 212-251-0608 x13 bfernekees@destinationcrm.com

PLATINUM SPONSOR

SPONSOR

Adrienne Snyder,
Eastern/Midwest Account Director 201-327-2773 adrienne@destinationcrm.com
334 NW 11th Avenue Portland, OR 97209 800-720-2098 www.urbanairship.com 100 Matawan Road Suite 415 Matawan, NJ 07747 1-888-856-6046 www.LiveLOOK.com

Dennis Sullivan,
Western Account Director 800-248-8466 x538 dennis@destinationcrm.com

Produced by: CRM Media

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The Price of Free

UNDERSTANDING THE NEW METRICS IN THE MOBILE VALUE EXCHANGE

The seismic shift to mobile is transforming both customers lives and how brands do business. While apps command 80% of consumers time on mobile1, a new economy is emergingthe prevalence of free apps that offer enormous utility while aiming to lock in customer loyalty. Free apps account for 90% of downloads2, and that share is projected to increase by about 1 percent each year through 2016. Even if moneys not changing hands for an app download, theres still a value exchangecompanies

EVEN IF MONEYS NOT CHANGING HANDS FOR AN APP DOWNLOAD, THERES STILL A VALUE EXCHANGE.

must deliver value to their customers, and in exchange, customers give valuable information about themselves, their preferences, behaviors and location. Understanding and capitalizing on this value exchange is the purpose of this white paper. Brands need Users spend most time in mobile on apps vs. browsers. to know: How much should I Will enabling push notifications mean invest in mobile, and where should I I get a bunch of spam? focus it? Will sharing my location invade my How do I calculate the return on privacy? investment? While it is clear how to calculate What value beyond revenue can I gain and monetize the value of a search from building a mobile audience? result on a keyword, or the number of As concerns about consumer privacy audience impressions from socially persist and more than one million3 apps compete for users attention, customers viral content, its less clear how to need to know: quantify the value of apps in serving What can this app do to help me in my specific business goals for revenue and daily life? customer loyalty. This white paper lays out key performance indicators (KPIs) for the performance of mobile apps, proven accelerators that drive engagement and revenue, and how businesses can calculate the price of free in this new marketplace.
KEY PERFORMANCE INDICATORS

Demographic data suggests a larger mobile-enabled user base.

Just as many of the strongest brands in social media were early adopters and pioneers of the medium, we believe the strongest mobile brands will start now, test often, and use experimentation and the exceptionally rich feedback loop mobile data offers to hone their messages and segment their audience. The endgame is value and relevance that establishes a relationship. We advise mobile clients to set a baseline for measurement based on these factors:

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Mobile customer base. Smartphones outpace PC sales five to one and are on track to exceed PC sales eight to one by 20174. Companies should evaluate their total mobile-enabled customer base in this context. Compare your CRM information to demographic data on smartphone ownership and use. You might assess that while 50% of the average US adult population owns a smartphone, it is likely that 80% of your customer base is mobile-connected. This builds a greater case for the creation of apps and mobile marketing initiatives. App install base. Customers who choose to install your app represent a higher-value segment than your overall base because this sends a clear message that they like your brand. Theyre also more available for contact: Youve got your brand in their hand. But now the clock is ticking. Customers are accustomed to downloading free apps, trying them once or twice, and then deleting them if they dont find immediate value. The average lifespan of an app on a smartphone is less than 30 days6, and the average customer maintains about 100 apps on their phonebut uses far fewer regularly. App lifespan and engagement are therefore key measures of value. In-app behavior. Before we address best practices to extend app life and accelerate engagement, lets define engagement: Number of app opens Length of time per open Page/section views on the app Buying behaviors, such as placing items in a cart or making purchases Social behaviors, such as sharing app content on social channels App interaction, such as bookmarking, starring or liking elements of an app App preferences set by a user

When apps use push, engagement and retention soar

Each of these quantifiable behaviors can be correlated to elements of your app, such as specific images or calls to action, and can be linked to larger campaigns that include web, social or advertising. They can also provide insight into what works and what doesnt. Examples of in-app behaviors our clients measured include: 375% higher app install rate than expected (Lipton Brisk Tea/Star Wars app) 50% of fans use the app daily (Washington Capitals) 40% of sales through the mobile channel (confidential retail client) 30% increase in mentions and social sharing (Onavo) We believe the most interesting aspect of in-app data is the ability to build a robust customer profile like nothing a CRM system has ever achieved. While CRM relies on data points triggered by major events such as a purchase, in-app behavior and location history reveal millions of smaller details.

Perhaps she has time during her lunch hour to browse shoes via mobile, she is likely to add four pairs of shoes to her cart in the course of browsing, she typically deletes three before purchasing a favorite pair, and she returns to your app once or twice per season to view new stock.
In-app messages. Even if your customer opts out of push notifications, in-app messages reach all customers through the apps in-box, which customers may open at their convenience. These messages can include links to landing pages with rich media such as photos and video, and they can also support immediate calls to action with buy buttons. In-app messages avoid the appearance of spam and allow a high degree of personalization. Analytics can reveal: A/B message performance Campaign tracking, including time of day for open rates Correlations between messages and purchase or app activity.

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Push opt-ins. While push messages can be a powerful and immediate tool to reach customers, marketers must emphasize utility first. Overtly promotional pushes may fail to add to the brand experience and the customers lifestyle. Ready, set, delete. Studies including Urban Airships Good Push Index, which analyzed the performance of 360 major apps, found that push messages achieved four times greater engagement and twice the retention rate for apps compared to the audience that did not enable push. For example, clients who sent Good Push messages measured these results: 10x higher response rate than email (London Olympics) 23% of total app opens influenced by push (Rip Curl) 8x faster bookings (Air Bnb) 25% increase in total user sessions (Rue La La) Location opt-ins. Perhaps the highest-value segment of your audience is the group that opts in to share their location with you. Not only can you learn where your customers are now, but you can also analyze their location history for a robust picture of where they live, work and play, enabling vastly greater personalization in messages. We also see this as potentially your most fragile segmentthey trust you with highly personal location data and expect two things in return: high-value utility from the app (give them a reason to opt in that makes the app experience richer), and judicious use of their information. The London Olympics provided an exceptionally robust use for location-targeted messages, and 60% of app users opted in to enable location tracking. These people received personalized event and venue updates based on their current location. They also got special content, such as a souvenir

Total cart value for coupon- or loyalty card-holder purchases Length of time between pass/coupon distribution and redemption.
UNQUANTIFIED VALUE

photo of the torch lighting up close, sent via push message to everyone in the stadium.
The digital wallet. Considering that only a percentage of your customers will install your app, how do you reach the rest of your mobile audience? You can do so through a digital wallet. Virtually every consumer-facing industry distributes some kind of coupon, pass, ticket or loyalty card, and all of these are suited to live in a digital wallet. Think of your mobile pass or card as a mini-app that can be seamlessly updated, location-enabled and triggered when customers enter your store. Through Apples PassBook technology and similar capabilities emerging from other mobile platforms and device makers, companies can easily gain residence on mobile devices. Research suggests digital coupons are redeemed at a rate ten times higher than printed coupons8. Suggested metrics: Redemption rates, particularly for segmented campaigns based on visit frequency

One challenge for push-enabled apps is accurately evaluating whether a push message achieved its intended goal of generating greater awareness, app engagement, purchase or loyalty. Fundamentally, we believe any of these goals must be viewed through the rubric of how does it make the customers day better? For example, Burton sends fresh powder alerts to snow sports enthusiasts. A user can set the alert only for the mountains he wants to visit, on the days hes available, for the minimum new snowfall required, and at the time hed need to get up to hit the mountain for first runs. He sets these criteria in an app preference center and can go to bed content with the knowledge that if its worth getting up at 5 a.m. to go snowboarding, Burton will let him know.

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THE INFORMATION YOU CAN GAIN FROM ONE DEVICE IN ONE DAY EXCEEDS A CUSTOMERS

TOTAL DATA ON AN
AVERAGE CRM SYSTEM.
raises the bar in terms of immediacy, granularity and personalization. Customers are willing to give you this free information if you protect their privacy and give them significant value in return. Thats the new price of free. Your alerts might prompt real-life response but require no app open. This is where mobile metrics challenge the need for evidence. For example, while a retailer might measure the success of their app based on the ability to drive mobile sales, a customer might still appreciate an alert about a sale on her favorite brand even if she isnt prepared to buy that day. She found value, but the brand cant measure this. We contend that brands must look to additional metrics, such as app retention, for an indication of the positive ripple effect of their push notifications. Companies such as Wal-Mart and Walgreens use interaction with their branded apps to drive customer loyalty and effectively lock in that customer. The Wal-Mart app features voice-entered shopping lists, in-store locators and mobile checkout to streamline the shopping process.
CRM IMPLICATIONS

Weve seen strong interest by CRM leaders in Mobile Relationship Management9 because of its wealth of data.

The information you can gain from one device in one day exceeds a customers total data on an average CRM system. We advocate technology that can not only mine and make sense of the big data generated by customer behaviors and preferences on mobile, but also fully integrate with existing CRM systems. This allows for richer, more nuanced analysis and enables companies to test more sophisticated campaigns. For example, Starbucks enhances their brand experience by delivering music, books and apps through its Pick of the Week to app users. This free perk adds value to customers lives, and in exchange, Starbucks gains insight into customer preferences, app use and location data when the customer permits. This, in turn, can inform business decisions ranging from new store planning to new products and services. What would you pay for richer customer data, and how could it transform your business? Chances are, youre already paying for many data sources, but mobile

ABOUT URBAN AIRSHIP Urban Airship is a pioneer in mobilizing relationships. It connects companies and people through their mobile devicesserving billions of targeted, contextual and relevant push messages and digital wallet passes. With its smart, scalable and secure platform, Urban Airship makes sense of rich data about users behavior, preferences and location history to create relevant, actionable campaigns with precise audience segmentation. Learn more at www.urbanairship.com
1 Flurry Analytics: http://blog.flurry.com/bid/95723/Flurry-Five-Year-Report-It-san-App-World-The-Web-Just-Lives-in-It 2 Gartner Research: http://www.gartner.com/newsroom/id/2153215 3 Approaching nearly 1 million apps in both the App Store and Google Play: http://www.mobilemarketer.com/cms/news/content/15113.html 4 Gartner (April 2013): http://www.gartner.com/newsroom/id/2408515 5 http://today.yougov.com/news/2012/07/18/almost-half-us-cellphone-userssmartphones/ 6 Average app lifetime: http://bits.blogs.nytimes.com/2013/02/15/digital-diaryare-we-suffering-from-mobile-app-burnout/ 7 The Pocket Guide to Good Push: http://urbanairship.com/resources/whitepapers/the-pocket-guide-to-good-push 8 eMarketer: http://www.emarketer.com/Article/Mobile-Spurs-Digital-CouponUser-Growth/1009639 9 Connect with the Connected: Winning with Mobile Relationship Management: http://urbanairship.com/resources/whitepapers/the-pocket-guide-to-mobilerelationship-management

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The Importance of

Adding a Visual Component

to a Mobile Sales & Service Strategy

Companies evolve to serve customers where they are. Focus has shifted over time to online, then to social media channels, and now to mobile platforms. As customers change the technology they rely on to access the brands they do business with, companies gain new opportunities to improve the way they help and sell to their audiences. Smart brands work hard to optimize their content and resources to work well on all types of mobile devices. Many times selfservice is still the goal, and tools that customers are already familiar with using on their laptops, like online banking services or shopping check-out processes, can be built to function seamlessly on mobile platforms. But what happens when a mobile customer needs help? Phone support is an easy answer, and mobile chat works great for on-the-go customers. But an agent may have difficulty guiding a customer through the resolution of a problem or completion of a sale, when the customer is navigating a mobile version of the companys content, the view and functionality of which can vary greatly depending on the device he or she is using. Co-browsing technology allows an agent to instantly see a customers screen, enabling fast, efficient and accurate assistance. The value of adding co-browsing capability to online sales and service interactions has been proven, with 78% of customers preferring it as a live-assist channel, and its applicability to mobile interactions is particularly strong. Consider these benefits of adding a visual component, via co-browsing technology, to a mobile sales and/or service strategy:

1. AGENTS MAINTAIN THE ABILITY TO HELP CUSTOMERS ON ANY PLATFORM

By being able to instantly see a customers screen whether on a smartphone, tablet, or any mobile browser an agent can help a customer navigate through a sale or a problem without having to guess at how the site might be displayed, or whether features and functions are working as expected on the customers device. As devices change and site content changes, Agents can consistently and confidently address customer inquiries by seeing exactly what the customer sees instead of guessing.
2. CUSTOMERS APPRECIATE FAST & EFFICIENT HELP

sales agents see major reductions in site abandonment and increases in average order sizes. As e-commerce shifts to mcommerce, adding co-browsing functionality to mobile sites and native applications is a smart way to drive continued sales growth.
4. VISUAL COLLABORATION IS A NATURAL COMPLEMENT TO EXISTING TOOLS

A co-browsing tool makes the communications channels your agents are already using work even better. Cobrowsing coupled with live chat or phone support delivers higher first contact resolution rates, improved sales metrics and reduced average call handling time.
5. EXCEPTIONAL MOBILE EXPERIENCE IS AN IMPORTANT DIFFERENTIATOR

Customers calling or chatting in for help want their issues solved quickly. Especially a mobile customer who is likely multi-tasking or trying to get things done on-the-go. Asking a customer to articulate what hes seeing on his screen every step of the way can add another layer of frustration to the experience. But having a tool to gain instant visibility into his experience shows the customer that youre committed to understanding and solving his problem without delay.
3. CO-BROWSING IS THE EPITOME OF CUSTOMER ENGAGEMENT

Companies that provide the type of nextlevel personal engagement that co-browsing creates, ensure ongoing loyal customer relationships. Co-browsing wows customers especially on mobile devices where this level of service is still new. See how easy it is to add co-browsing to your web and mobile customer service and sales toolbox visit www.livelook.com today.

Especially in mobile sales situations, a customer who is talking or chatting with an agent, and also co-browsing the mobile website to get help completing an application or finding or customizing a product, is more likely to complete the process. This level of visual engagement also drives incredible opportunities for crossselling and up-selling. Companies that provide co-browsing technology to their

LiveLOOK is the industry leader for enterprise co-browsing and real-time collaboration technologies. LiveLOOKs product suite enables instant-launch, mobilefriendly co-browsing and is universally compatible. Through an innovative, patented approach to co-browsing technology, LiveLOOK helps companies transform customer engagement. For more information, visit www.LiveLOOK.com