With your permission

If I asked you nicely and gave you deals, discounts and gifts against things you wanted to buy anyway, would you allow me to share my marketing message with you? That is the premise that permission-based mobile marketing works on. It is marketing that has a buy-in from the target audience. It is not just about transactions, but about building a dialog between the consumer and the brand.

The Mobile Marketing Association (MMA) recently came out with a white paper detailing case studies from around the world on permission-based mobile marketing. Supplied by the MMA Task Force, of which Blyk was a part, the case studies illustrate what I have long held—if you get a consumer buy-in with customised and targeted marketing, instead of blind mass-dissemination, you have a consumer for life.

The basic premise of permission-based mobile marketing is simple—it is about value exchange. It is a tacit agreement between the consumer and the brand. In exchange for their contact information and personal preferences, consumers expect the brand to respect their privacy even as it offers them value in tangibles like coupons, offers, deals, samples, or intangibles like apps and content.

It is essentially a four-step process. You start with giving the consumers the chance (and, of course, a compelling reason) to opt in. When they do, we can create a database of their preferences, which are then shared with the brands. The preference profiles are kept updated so that the engagement remains relevant for the both, the consumer and the brand.

For the brand, the benefit is the potential of a long-term relationship and compelling engagement with the consumer. And we all know that translates into higher return on investment. For the mobile networks, it is a chance to increase customer satisfaction and stand out among their peers with compelling content.

The study also illustrated that this type of marketing is best suited for a device as personal as the mobile phone. It is a device that offers the best one-to-one platform for interaction, giving the consumer personalized content and services.

Even though it is new in India, permission-based mobile marketing is already beginning to take off. After all, gives Indian consumers what they’ve never had—a break from being treated by marketers as just a huge mass.

Apps need to change their game

There is a lot to be said about apps – they have certainly changed the way we interact with computers and phones. However, there is also a lot to be said about economics. And economics is certainly warped when it comes to apps. The rising number of apps being created is only exceeded by the number of downloads. And yet, how many app developers are actually making money?

Here’s the fun part – according to research by analytics firm Localytics, 26% of the apps downloaded are used only once! So, those humongous number of downloads give only half the story for the success of an app. Because the revenue actually comes with consistent usage and not just number of downloads.

And where does consistent usage come from? Increased engagement. How many apps have that? It is, perhaps, time for apps to be measured for engagement rather than downloads. Another survey done last year—a Harris Interactive study by Effective UI – said that 38% of the users were disappointed with the apps created by their favourite brand, and 69% of the users admitted that a negative perception of a brands app translates into a negative impression of the brand. So unless they get it right, brands could actually be harmed by going for an app than benefited.

In the same survey users stressed heavily on the need for the app to be easy to use, do exactly what they want it to do and that it should be well designed. A good user experience is the key to an apps success and the metrics methodologies should be adjusted to measure these instead of just downloads.

With these adjustments, the picture will completely change. And with this changed picture will emerge a different landscape for brands and mobile advertisers to map.