what about solomo?

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@ShannonEastman Title Subtitle #SoLoMo - Leveraging Social, Location and Mobile to increase revenues or lower the cost of business. November 2010

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A look at SoLoMo with an emphasis on Location .

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Page 1: What about SoLoMo?

@ShannonEastman

TitleSubtitle#SoLoMo - Leveraging Social,

Location and Mobile to increase revenues or lower the cost of business.

November 2010

Page 2: What about SoLoMo?

@ShannonEastman

Contents:• SoLoMo in my perspective

• SoLoMo Players

• SoLoMo Trends

• SoLoMo Behaviour

• SoLoMo Marketing

• SoLoMo and Privacy

• Brands and SoLoMo Success

• Biggest Opportunities

Page 3: What about SoLoMo?

@ShannonEastman

SoLoMo location in my perspective:End User Merchants & Brands

What is it?

Mobile App (game) let’s me check-in to physical locations alerting my community to my location, sometimes activity and opening me up to perks.

Mobile App allows me to connect end users with the Point Of Purchase (POP) where I can promote, sell, acquire data.

How do I use it?

2. I’m here. If I return enough, my status will get me cool stuff.

3. I leave comments and photos of my experience at locations.

4. I check out what my friends have been doing and when they were here last.

5. I can have fun with the purchases I make and the places I visit through gaming

2. In – app advertising 3. Time + Location + POP = Promotion4. Acquire reviews, feedback, consumer data

Promote trials, attract new audience 5. Group of users check-in to a location, group

of users all receive deal. 6. Digital Loyalty, CRM integration: more times

you check in, better the deal. 7. Cross promote, Make suggestions based on

end user history. 8. Community engagement! “I’m covering this

event… what should I ask them?”9. Charity. Check in to location and location

makes a donation to charity.

“It makes Foursquare into a kind of real world Pop-Up Video.” -TechCrunch

Page 4: What about SoLoMo?

@ShannonEastman

Page 5: What about SoLoMo?

@ShannonEastman

Bigger SoLoMo Players: What is it : Privacy Settings: Total Users:

Foursquare Foursquare is a location-based mobile platform that makes cities easier to use and more interesting to explore.

http://foursquare.com/privacy/

6.5 million users as of February 2011.

Some stats suggest 7.5million users. Facebook Places

(Place page) Facebook feature to: see where your friends areshare your location See who is nearby Tell friends places you

visit,reviewsRead your friends reviews

http://www.facebook.com/settings/?tab=privacy

30 million users

Source: BusinesInsider.com

Page 6: What about SoLoMo?

@ShannonEastman

The Smartphone is here to stay:

100.9m Smartphones vs. 92.1m PCs - Sold Q4, 2010

Estimated sales of Smartphones by end

2011 = 500 mil l ion

>28 mil l ion expected to be sold in 2011.

15 mil l ion iPads sold in 2010. 1 mil l ion iPad

2s were sold in f irst three days of launch.

Page 7: What about SoLoMo?

@ShannonEastman

Smartphone market in The EU:

8

Page 8: What about SoLoMo?

@ShannonEastman

But who uses SoLoMo?

• Since Facebook Places launched in August Foursquare’s registered users have doubled to 7.5 million2

• According to a recent survey, 39% of social network users who own a mobile internet device use SoLoMo-location3

• In the same survey 19.2% of respondents said they used SoLoMo-location to let friends know where they were at least daily. 15% Checked in at locations daily

• There are, however, still widespread concerns over the loss of privacy, hacking issues and other safety issues. Women tend to be more worried than men; older users more than younger ones

Page 9: What about SoLoMo?

@ShannonEastman

Smartphones AND SoLoMo apps:

Top Five Free Apps SoLoMo Apps in Top Ten

Marketshare

Apple – iOS Facebook, Pandora Google Mobile Shazam Flixster

28%

Android Kindle App Layar Relality Browser – AugRe

Places Directory

*Neither app allows you to check-in

27%

Page 10: What about SoLoMo?

@ShannonEastman

Mobile user behaviour:

% Share of browser and application users

Page 11: What about SoLoMo?

@ShannonEastman

Mobile user behaviour:

Page 12: What about SoLoMo?

@ShannonEastman

Mobile user behaviour:

Page 13: What about SoLoMo?

@ShannonEastman

SoLoMo Marketing in practice:

Source: Crunchbase, CNET

Page 14: What about SoLoMo?

@ShannonEastman

Page 15: What about SoLoMo?

@ShannonEastman

The 21st century loyalty card

The Loyalty Card The 21st Century Loyalty Card

After good customer service (34%) relevant personalised rewards (30%) ) were cited as the aspect most likely to encourage people to spend more1

SoLoMo-location allows loyalty and POS rewards that are SoLoMographically tailored to a customer’s needs

96% of UK population belong to a reward scheme. 64% belong to 3 or more. These are largely shop and supermarket-based schemes1

Now brands can get involved in loyalty schemes in a way that has only really been open to shops and supermarkets up until now

UK consumers feel that loyalty rewards are more valuable in a recession. 90% of UK adults now use recession-busting shopping strategies when shopping1

SoLoMo is fun, it’s social. In tough economic times this game element to purchase can be an important incentive

Page 16: What about SoLoMo?

@ShannonEastman

Social gaming and SoLoMo

• In December 2010, Farmville and Cityville received a combined 130 million monthly visitors 10

• And social gaming is not exclusive to teens and young males. The biggest audience for social gaming is actually mothers in their 30s and 40s

• Among the new features on Foursquare 3.0 is an improved competitive gaming element with friends:

A game to compete with friends where points can be earned for a number of different activities (check-ins, trying new things, meeting up with old friends)

Businesses will now be able to offer Special deals to Swarms, Groups of friends, Regulars, Newbies, Mayors, or simply to everyone

• New SoLoMo-gaming initiatives are appearing all the time. A new way of interacting with a sophisticated 21st Century consumer

Page 17: What about SoLoMo?

@ShannonEastman

Social buying and SoLoMo

• In tough economic times consumers are seeking bargains and looking for innovative and economic ways to shop

• Groupon, the social buying site, has grown its subscriber base to over 50 million users11

• Facebook Deals, a tie-in with Facebook Places, launched in November of 2010 offers the benefits of Groupon but using SoLoMo-location to target the offers

• Foursquare 3.0 has also introduced a new, more social, tab to help consumers find new places to shop and brands to purchase. Tailored suggestions are based on where friends have eaten, what’s popular with other users, day of the week etc.

Page 18: What about SoLoMo?

@ShannonEastman

Brands and SoLoMo success:

How:Earn ‘barista’ badges after checking in to five different storesNational $1 Frappuccino for Mayors

Why: •Acquire customer feedback• Rewards loyal customers

Results:•Increase in Check-Ins at Starbucks locations of 50%12

How:Tips on Foursquare that share historical facts upon check-in, lead to exclusive offers and a chance to win

Why: •Creating brand awareness to support new TV series

Results:•Campaign is ongoing and results as yet unknown

How:Create incentives for users to explore campus, rate stores, restaurants, other venues

Why: •Engage w/ friends, professors and colleagues in new ways•Benefit students

Results:Harvard claims its community now engages with friends, professors, and colleagues in new ways 13

Page 19: What about SoLoMo?

@ShannonEastman

Biggest opportunities with SoLoMo:

• Reaching consumers when they’re next to the Point of Purchase

• Convergence of data: Suggestions based on previous history. If you’re buying this, this goes with that, QR code. Rate. Recommend. Share.

• Marketer conducts sales without consumer talking to a sales person

Page 20: What about SoLoMo?

@ShannonEastman

SoLoMo today:

Places you might l ike – recommendations based

on previous check-in history

Location based chat.

Apps to compliment UGC to share at check-in. Eg.

Instagram allows users to post photos to check-ins.

2mil l ions users in 4.5 months.

Auto check-ins

Location Based Engagement

Page 21: What about SoLoMo?

@ShannonEastman

Consider this: 2. Do we fully appreciate what the user really wants?

4. Should we be rewarding check-ins? Or should we be rewarding something tied to profit?

6. What happens to your targeted marketing when ‘proximity’ joins the party? Is the consumer that happens to be nearby someone you would typically target? If not, do we care?

8. There are buckets of customers not checking in. SoLoMo can be part of a campaign to address a segment, but let’s remind ourselves that not all customers are checking-in.

Page 22: What about SoLoMo?

@ShannonEastman

Shannon EastmanManaging Director

077 2031 2585

@[email protected]/in/ShannonEastman

Thank you.

Page 23: What about SoLoMo?

@ShannonEastman

Sources:

• http://www.loyaltyleaders.org/facts.ph• http://blog.foursquare.com/2011/03/08/foursquare-3• http://www1.emarketer.com/%28S%28raex1eitfd2w0u55wy4hr0jr%29%29/Article.aspx?R=1007840&AspxAutoDetectCookieSupport=1• http://www.theregister.co.uk/2011/02/08/idc_smartphone_pc_shipments/ • http://nexus404.com/Blog/2010/12/27/smartphone-sales-expected-to-reach-500-million-units-in-2011-half-a-billion-smartphones-expected-to-be-sold-next-year/• http://www.theinquirer.net/inquirer/news/1732170/forecast-predicts-million-ipad-sales-2011

• http://blog.nielsen.com/nielsenwire/online_mobile/who-is-winning-the-u-s-smartphone-battle/• http://www.onlinemarketing-trends.com/2011/01/eu-smartphone-market-top-5-statistics.html

• http://www.techwatch.co.uk/2011/03/10/android-booms-1600-year-on-year-in-europe/

• http://techcrunch.com/2010/12/28/zynga-cityville-farmville/ • http://www.physorg.com/news/2011-01-groupon-mln-funding.html • http://blog.foursquare.com/2010/07/07/782560078/ • http://news.harvard.edu/gazette/story/2010/01/harvard-and-foursquare/