Mobile Messaging & Mobile Web before an App

April 5, 2010

Everyday, we at QWASI are asked by many leading brands where mobile is moving and how they should embrace mobile marketing and mobile communication. We always have to ask a simple question: What are you doing today to reach today’s mobile consumer?

The first reaction is either something like this: “Well, we’re starting to think about an iPhone App and maybe a Blackberry or Android App by the end of the year”… OR they simple respond “We have an iPhone App and we think it’s great.” It’s almost so predictable that its easy to write it down on a piece of paper before asking the question and then passing across the table and asking how close you were to guessing their response.

Here’s the problem with having just an App: it should never be the “your mobile strategy” or solution to having a mobile channel. Why? It’s simple: Mobile App usage trails mobile web and mobile messaging.

TEXT MESSAGING REIGNS SUPREME
The most popular activity for the average cell phone user is Text Messaging. It’s then followed by mobile web access and then Apps. Text Messaging reigns supreme because of two simple forces: reach and usage.

Nearly every mobile phone in the U.S. is text messaging enable. To send or receive a text message, you do not need a smart phone (Blackberry, iPhone or Android device). In the US, only 18% of all phones are smartphones. Within the next 2-3 years, Juniper Research predicts that smartphone usage worldwide will only account for just 23 percent of all new handsets sold. That means that main population in a few years will still not have enhanced capabilities of using Apps.

MULTIPLE PLATFORMS: IPHONE, BLACKBERRY, ANDROID (and SEVERAL OTHERS)
When a company considers launching an App, they typically go right to the iPhone. A recent Nielsen survey found that Apple dominates app downloads with a 25 percent market share. However, the iPhone only represents 4 percent of the entire mobile market. And in the US, it’s currently still only available on AT&T network. If you’re looking to launch an App, consider this – Nielsen has identified more than 10 major app stores for your App. That means developing across several platforms that differ in the use of libraries, code and submissions (to get the application approved and added to the app store).

USAGE
We return back to text messaging for ease of development and uniform customer experience because it is used more than Apps. According to Pinch Media, the vast majority of apps downloaded from the App Store are in use by less than 5% of users after one month has passed since it was downloaded. Just 20% of users even return to run a free application again the day after it’s downloaded. As time goes on, that decline continues, eventually settling below five percent at the one month elapsed mark and nearing zero after three months. According to Strategy Analytics (October 2009) only four to six mobile apps are used on a consistent basis.

Furthermore, if you create an iPhone App, you will be one of over 180,000 Apps available in the Apple App Store (as of March 2010). It’s such a competitive share of mindshare and space is limited on the phone’s screen. The iPhone for example offers 10 pages of Apps, but many people never make it past their third screen to even get to your app if it’s not up front. I would argue that we’ve hit the saturation point for most users. Why? Because of a simple litmus test called utility. If your App provides utlity to the end user, they will continue to use it to connect to people, places, information and entertainment. An App with a few stars or a low rating really does indicate how most end users will think and use the app.

SIMPLE IS OFTEN BEST
Most companies dismiss SMS or Text Messaging for two reasons: simplicity and cost. Let’s examine each.

First, a text message is limited to 160 characters. Every space counts. Creative wording is often required to communicate the message. However, it can also include a phone number or link to a mobile website or information page optimized for mobile phones. In it’s simplicity lies it’s strength.

• Delivered – each SMS using carrier-grade messaging is delivered

• Read – almost 95% or all text messages are read by end users

• Direct – often provides a preview w/o reading the entire message

• Concise – read and take action in seconds

• Easy-to-Read – most of the message fits on the screen

• Link-Enabled – ability to point to a Mobile Website

• Call-Enabled – include a phone number to call

More reasons why simple is often best. A single text message can easily be forwarded to a friend or posted to a social network. SMS can be interactive providing two-way messaging features included information on demand, mobile coupons, mobile ticketing, surveys, voting and polling. Finally, with a list of opt-in users, messaging can be sent out to users via blasts, notifications and alerts.

The other hesitancy by brands in using text messaging for marketing is the cost factor of an SMS. Companies often are quick to sign off on large budgets to build mobile Apps, yet never conduct a full cost analysis of SMS and Text Messaging to evaluate how it scales over a longer period of time while achieving greater usage and take up. Sure, a text message can cost a few pennies per message, however, during an ROI analysis, it’s easy to see how it pays itself back with the value it provides customers to connect with the Brand in building some of the strongest one-to-one relationships possible.

MOBILE METHODOLOGY (see the QWASI Mobile Methodology)
Don’t be so quick to rule out Text Message Marketing (SMS) or the Mobile Web.

Build out your mobile site. Offer Mobile Messaging. Then build specialty apps that provide usefulness for your customer. And don’t neglect voice as part of your mobile strategy.

Let QWASI help you build out your mobile channel today.

About the Author:
David Geipel is COO & Founder of QWASI (http://www.qwasi.com). You can reach him at dgeipel at qwasi.com or chat with him – text DAVE to 79274 (QWASI).