mobile marketing

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Last year Clinique integrated QR codes in ads for its Even Better Clinical Dark Spot Corrector in Vogue Magazine.  Mobile’s Next Big Thing editor Meredith Bagnulo talked to Emily Culp, Vice President of Clinique Global Digital/Consumer Marketing & Media about the campaign.  Here’s what she had to say:

Why did Clinique decide to incorporate QR codes into Vogue ads for Even Better Clinical Dark Spot Corrector? Was this part of a larger, multi-channel campaign?

Clinique decided to incorporate QR codes into advertising in an effort to continue to support the launch of Even Better Clinical Dark Spot Corrector and was part of a broader multi-channel media strategy.

Clinique incorporated QR codes in U.S. advertising in an effort to engage with consumers in a new and interactive way. In determining which publication to premiere this mobile initiative, Vogue Magazine seemed like the optimal choice given our history with the magazine whose Editor, Carol Phillips, helped launch the brand in 1968, and their credibility.

Tell me a little bit about the promotion. What has the response been?

Clinique included a QR code in the Even Better Clinical Dark Spot Corrector U.S. print advertising in the August issue of Vogue Magazine. To engage in this promotion, consumers scanned the QR code from the print advertising using a smart phone which brought up a special free-shipping code and allowed consumers to purchase the product immediately through their mobile device.

It was the perfect opportunity for Clinique to leverage the success of Even Better Clinical. The program allowed the brand to engage with consumers while simultaneously providing them a service.

Success for Clinique in this case meant an increase in consumer engagement and awareness of Even Better Clinical.  We are constantly looking for new ways to surprise and delight our consumers and we see a huge opportunity for Clinique to invest in mobile initiatives.  Moving forward, we will continue to look for appropriate opportunities to continue to expand our mobile marketing activity.

Has Clinique used QR codes in any other campaigns? Do you have any mobile campaigns currently running or upcoming?

Internationally, Clinique has been using QR codes for a while as particular markets such as Japan were really leading the growth and acceptance of such technology.

This promotion was Clinique’s first foray into QR codes in the U.S. and we continue to look for future opportunities that are right for the brand as well as our consumers.  In the near future, we do have mobile campaigns coming down the pike, the next will be in Asia.

What other mobile marketing tools do you use in your marketing and advertising campaigns?

In addition to the QR code program which appeared in Vogue Magazine, we have also collaborated with media partners to create mobile applications.

Do you consider QR codes to be a viable marketing tool? Will mobile be a focus for Clinique in 2011?

Mobile is a smart tool which we will continue to pursue as technologies evolve.  We value how mobile marketing tools reach our consumers in new ways and they will continue to be a focus for Clinique in 2011.

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Today I’ll be spending my time with other mobile marketers and industry executives at the DMA Mobile Marketing Day in New York. Senior executives from USA Today, National Hockey League and Steve Madden will be sharing insights on their use of mobile marketing to elevate their brand and engage their customers.

Some of the topics to be discussed include mobile advertising, mobile commerce, SMS, and location-based advertising. I’m participating on a panel: “SMS: How the Workhorse of Mobile is Transforming CRM/Database Marketing and Store-Based Retail.”

Here’s a look at some of the topics we’ll cover:

  • How to create and mine a mobile database supported by SMS opt-ins and its integration into the overall CRM program
  • How to encourage SMS opt-ins: the dos and don’ts 
  • Which offers resonate via SMS and why
  • Why words matter and how less is more
  • Which marketers get SMS right
  • Two tips on how to get started, and one tip on the most common error to avoid

The world of mobile marketing is rapidly changing and many new technologies, applications and platforms are being introduced every day. I’ll be interested to learn more about how companies are integrating these new technologies as well as how mobile barcodes in particular are playing an increasing role in mobile marketing campaigns.

I’ll be sharing any lessons learned from the conference. Stay tuned!

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You may have seen yesterday’s article in Mobile Commerce Daily: “How To Compromise the Starbucks Rewards Card App in 90 Seconds.” It shows how easy it is to steal an image of another person’s barcode without their knowledge and use it to pay for merchandise.

This is a basic flaw in the application that fails to authenticate the identity of the person using it.  Let this be a reminder that when implementing mobile applications, security cannot be an afterthought.  These are the kind of technology loopholes that put brands and consumers at risk.

We’ve advocated the need for a central clearinghouse to provide security and privacy for 2D barcodes.  Our mobile barcode clearinghouse offers several ways to defeat this kind of security hole.

First, it could check the location of the phone registered to the particular card, and if the location where the transaction is being requested is inconsistent with the location of the phone, deny the transaction.

It could also send an alert to the customer at their registered phone number, informing them of each purchase.  While this will not stop fraud, it will expose it rapidly.

Our identity registry function for 2D barcodes allows retailers to link the user’s ID/phone with the card at registration.  Then the ID can be validated at any purchase scan to determine if the handset is the same one originally associated with the ID.

In the case of Starbucks, it is apparent that they did not implement this kind of identity schema at the handset level in their application.  In the rush to develop the newest application, many companies are sacrificing quality and could be putting consumers at risk.

According to McAfee‘s fourth-quarter threat report, “cellphone security threats grew significantly in 2010, as “a proliferation of Internet-enabled mobile devices” laid the groundwork for cybercriminals to target the increasingly popular smartphones and tablets that now thoroughly populate our world.” (Mobile Marketing Watch, February 8, 2011)

For mobile marketing to continue to succeed, consumers must feel confident that their personal information won’t be compromised. It is up to the brands ensure that their applications have the appropriate safeguards in place to prevent identity theft and deliver a secure user experience.

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We’ve blogged in the past about Neustar’s roots as a clearinghouse and how this approach can benefit the mobile barcode industry.  Neustar currently offers directory and clearinghouse services to telecommunications service providers and also administers the U.S. Common Short Codes directory, which provides special numbers for SMS and offers mobile messaging services to wireless carriers and marketers.

More recently, we’ve been in the news for our involvement in other initiatives that further validate our clearinghouse approach and have been legitimized by multiple organizations.

Our registry capabilities have caught the attention of everyone from Hollywood, where we are powering the studios’ digital download ecosystem, to the Federal government, where the FCC last week designated Neustar as a Database Administrator for unused television broadcast spectrum known as white spaces.

The FCC made this designation of Neustar, Google and seven other companies to hopefully foster the development of databases necessary to enable a new class of broadband wireless devices that can use this spectrum – referred to by some as “WiFi on steroids.”

Developing a mobile barcode clearinghouse is a natural extension of our business. It allows us to address the current fragmentation that has resulted from fast growth and many companies creating their own proprietary technologies. (See some of our previous blogs on this topic:

How Neustar’s Clearinghouse Roots Can Propel the Mobile Barcode Industry Forward and

Neustar’s Roots as Clearinghouse Perfect for 2D Barcodes for more details.)

The benefits include more scale and reach, improved control, reliability and security, and enhanced targeting and additional ROI. By initiating a clearinghouse for mobile barcodes, we are enabling the entire mobile barcode ecosystem to interoperate securely and compete on an even playing field.

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Last Christmas Smyth Jewelers launched a marketing and advertising campaign titled “15 Deals in 15 Days” which featured 2D barcodes. The barcodes appeared on large banners hanging outside the company’s retail stores during the month of December and offered consumers a new deal each day during the campaign.

Mobile’s Next Big Thing editor Meredith Bagnulo talked to John Jackson, Vice President of Operations at Smyth Jewelers about the company’s experience.

MNBT: Tell me a little about the campaign and how you came up with the idea?

Jackson: Early last year we learned about QR codes and our advertising firm approached us with the idea of incorporating them into a campaign focused around the holidays. We launched the “15 Deals in 15 Days” campaign using giant banners with QR codes outside of our stores and customers would come scan the code on their way into the store. This created quite a stir in the local Baltimore community.

Everyone sees QR codes at the bottom of fashion magazines, but this was a gigantic, in-your-face advertisement and people came and asked what it was all about.  It was a fun way to introduce our customers to this new technology.  We also placed them in ads and on business cards and people really had a lot of fun with it. It was also a great marketing tool because of all the analytics that came with it.

MNBT: What happened when people scanned the code, where did it take them?

Jackson: We used a very simple code that consisted of a simple screen shot and for any purchase that day if you showed the screen you received a free pearl bracelet and 25 percent off you purchase.  The screen consisted of simple red and green Christmas colors.

MNBT: What was the reaction from your customers?

Jackson: Although Smyth Jewelers has been in business since 1914, our audience spans across generations and we are in touch with the younger generation, their parents and grandparents who shop at our stores.

There were three different types of reactions. Among the younger audience — the ones reading Vogue and other fashion magazines – they thought it was cool. They use 2D barcodes all the time when looking at magazines so they were familiar with what to do and loved it.

For more of the middle-aged audience, they had seen QR codes, but weren’t sure what they were. So, after we explained how it worked most of them downloaded a scanner and tried it and were impressed.

Then there were the older folks who didn’t know what it was. Once we explained how it worked, they thought it was a fun advertising medium but were not ready to try it out. Instead, they just asked us what the deal of the day was and we told them.

MNBT: Are you planning to use QR codes in future marketing/advertising campaigns?

Jackson: This was the first time we tried using QR codes and we have learned a lot. We have already started using them with some of our vendors as well as in print media to direct people to our website and stores. When the QR code is scanned it pulls up the locations of our stores and how to get there.  We are in our infancy in our use of QR codes, but see endless possibilities for them. We also like that QR codes are trackable, with analytics to find out how many people are hitting our site.

MNBT: What other mobile marketing tools do you use to reach your customers?

Jackson: We have used Netbooks for several years for merchandise inventory. This allows us to look up certain product lines not available in our store and compare prices, etc.  Our next step is to look at iPads and either have all salespeople with an iPad or have them available throughout the store to show people product information and pricing for jewelry that is not in stock.

MNBT: How big is mobile in your overall marketing/advertising strategy for 2011?

Jackson: Mobile is taking a bigger role in our strategy.  Most people read everything online nowadays — even coupons are online. But is also depends on what you are advertising. For bridal/engagement rings we will go more high-tech because that is where our target audience is. When people get engaged, they go to Internet for information.

We also do a lot of advertising via mobile and Internet including Twitter and Facebook. This is wave of the future and I want to be on the cutting edge which is why we started the QR code campaign last year.

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Small Planet Organics founder Phil Spiegel, also known as “Tofu Phil,” embarked upon a new campaign to add 2D barcodes to its product labels to connect with customers and provide videos, coupons and recipes about the company’s products. According to Phil, 2D barcodes level the playing field by giving small businesses easy access to this mobile technology to reach new and existing customers.

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Earlier this month, my colleague, Diane Strahan, predicted the rise of 2D barcodes in the enterprise in her blog: “2011 Outlook for 2D Barcodes.” As mobile devices penetrate the enterprise market, so too will mobile applications — not just from an advertising and entertainment standpoint, but also in ways that can increase productivity.

A recent research survey from Kelton Research found that “an overwhelming majority of the 250 IT managers polled (90 percent), said they will implement new mobile applications this year, with almost a quarter (21 percent) looking to introduce 20 or more applications into their organization.”

With the widespread growth of smart phones, it is no surprise that the enterprise is quickly following the consumer world in the adoption of mobile technologies. The mobile workforce is driving new enterprise applications that integrate with existing workflow and customer relationship management (CRM) solutions, and 2D barcodes are the newest “kid on the block.”

 

In the January issue of CRM Magazine, the article “Barcodes Reach a New Dimension,”  highlighted 2D barcodes as a powerful marketing tool to engage and empower consumers.  The magazine also features barcode technology in its February issue with a cover story titled: “Betting on Barcodes.” The article describes the technology as an “inexpensive way for organizations to interact with consumers on the go.”  When it comes to building customer relationships, 2D barcodes can be the gateway to a deeper customer experience.

From a workflow perspective, 2D barcodes can facilitate business processes and increase productivity. Last year at the DScoop5 conference, MindFire announced that it had integrated QR codes into HP SmartSream to create an innovative response tracking mechanism for HP’s end-to-end workflow solution.

2D barcodes are enabling easier access to these types of applications as well as more effective reporting and tracking. There are also new uses for 2D barcodes within supply chain management, as 2D barcodes allow for more data than traditional 1D barcodes.

The enterprise of today does not reside within brick and mortar buildings.  It is on the road, in the local coffee shop, in a home office — wherever the mobile workers happen to be.

As with any enterprise application or technology, security and interoperability will be instrumental in the adoption of 2D barcodes. Efforts are underway to create a more cohesive mobile barcode ecosystem.

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Next Wednesday leaders in mobile marketing will convene at the Mobile Marketing Association’s (MMA) Consumer Best Practices (CBP) Forum in Boca Raton, Florida.  The MMA has more than 750 member companies, representing over forty countries around the globe and all members of the mobile media ecosystem.

 

The CBP Forum is an opportunity for members as well as the general public to provide input into the guidelines and best practices for mobile marketing in the U.S. These new guidelines and best practices will become part of the organization’s Global Code of Conduct and will be included in updated versions of the Consumer Best Practices guide.

 

The focus of the guidelines is to ensure consumer transparency.  Among the issues to be covered at this year’s forum include best practices for messaging, mobile web, applications, advertising, commerce and privacy.

 

Greg Stuart, CEO of the MMA talked about the guidelines in this press release from December 20th in which he states: “The industry recognizes that in order for marketers and publishers to responsibly and sustainably engage consumers through and with the mobile channel, we need to continuously update how we address the collection, management and use of personal data or related consumer information.”

 

The last time that the U.S. Consumer Best Practices Guidelines for Cross-Carrier Mobile Content Program were updated was in June 2010. You can find the current guidelines here: http://mmaglobal.com/bestpractices.pdf

 

Neustar is excited to participate in this event which is open to the public. We feel strongly that by supporting and following these guidelines brands, campaign managers and carriers can provide the most successful consumer experiences that will accelerate the adoption of mobile technology and applications.

 

Please feel free to post a comment and share your thoughts around best practices for mobile marketing as well as what still needs to be done to ensure a secure, valuable and private consumer experience.

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According to a recent Pyramid Research report, there are more than 200 million mobile health care applications currently in use.  Mobile presents a huge opportunity in the health care and pharmaceutical markets for facilitating communication between doctors and patients, enabling access to more in-depth and real time medical information, and in the marketing and advertising of new drugs.

There was a great article in PharmaExec earlier this month on how mobile will impact the health care industry, “Mobile Health: Will Cellular Doom the Paper Chase?.” It references a Pricewaterhouse Coopers study which stated “70 percent of physicians currently use their mobile devices five times a day or more to access information. Additionally, 80 percent of physicians were interested in mobile technology for prescribing.”

When it comes to 2D barcodes in the healthcare industry, there is definitely a benefit in using them for promoting new medications, but the real value will be once the medications are already on the market. Where you will see leaps and bounds in this industry is on enterprise applications to track medications and enable patients to access information directly from their pill bottles.

Most hospitals already use 1D barcodes on medications as part of their supply chain to make sure the right drugs are getting to the right people.  1D barcodes are designed to serve a specific purpose, such as identifying the medication or the price.  2D barcodes, on the other hand, can contain much more information and have multiple uses.

For example, the code could be scanned by a doctor to deliver certain information, such as the patient’s medical condition and history, while the same code could be scanned using the pharmacist’s scanner to reveal different information, such as other medication the patient is taking to avoid dangerous drug interactions.   Additionally, the patient could scan that code to find out dosage information.

While the promise of mobile and 2D barcodes is large, the regulatory nature of this industry may hamper adoption.  There are stricter guidelines when it comes to pharmaceuticals and protecting patient information, and certain precautions are necessary to protect the privacy of patients.

We’re not talking about a coupon from a woman’s magazine, but rather scanning for an identifier which can be much more personal and confidential. There has to be a more secure system to manage identity and ensure the security and privacy of the information being shared.

Neustar’s mobile barcode clearinghouse can provide an infrastructure for security and privacy.  Our clearinghouse model not only enables interoperability between carriers and campaign managers from a technical level, but also gives users confidence that their transactions are trusted, secure, and private.

With this kind of protected infrastructure in place, healthcare and pharmaceutical companies can deliver a more meaningful consumer experience while ensuring that the personal information about individuals remains private.

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There’s been a lot of discussion in the mobile barcode industry over indirect vs. direct codes, including some of our other blog posts on this topic (see Control Your Codes and Response to Direct vs. Indirect Discussion). As a follow up, I wanted to take a moment to offer a more in-depth look and explain how indirect codes work – and how they can increase the functionality of a 2D barcode campaign.

Open protocols and interoperability enable everyone to publish their own indirect codes and have them work with any open barcode scanner.  There is a lot here, in terms of improved function and value over direct, if one’s reader can be easily adapted to know what to do with open format indirect codes.  And that problem has been solved.

Large brands, corporations, organizations and government agencies will focus on indirect because it can be a richer, more targeted and more secure experience, especially where multiple sessions are triggered by a scan or where transparency matters.

If small companies want to use free, direct codes or larger companies are testing or just bringing people to a simple landing page with direct – no problem. They may not need the flexibility and control of indirect. They may not need third party validation or a more sophisticated policy based rules and reporting for things like cooperative marketing.

But big brands want traceability and control.  In some cases, their signage and products can be out there “on the shelf” for quite some time. Being able to change the content associated with an indirect code gives them a great deal of flexibility.

The 2D barcode space is still in its infancy. The players are small and the space is evolving. And whether brands go direct or indirect, they need to control their marketing and ensure they are not captive to any one technology vendor.

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