Small Business

190 posts categorized

January 30, 2015

Is “Paidmium” Really the New Freemium?

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Mobile apps have been changing their business models right under our noses. The newest model is called “Paidmium,” which refers to a mobile app that one must purchase from iTunes or Google Play – immediately requiring the user to either spend more money on in-app purchases or perhaps look at ads within the application.

Yep, you read that right. First you pay for the app, and then you pay more.

The current debate in the mobile marketing sector is whether or not Paidmium is superior to the more common mobile business model, Freemium. The truth is, the mobile marketing crystal ball is still a bit murky, and it is hard to say which business model will come out on top.

Freemium is the tried and true way for app developers to make money. Programmers create an app, offering it free to potential customers in the marketplace. Then, once the customer begins to use the app and learn its value, in-app offers are made available for the customer to purchase at will. Whether they pay or not, they can still utilize the original app, but their access to some of the other features may be limited.

According to a study by App Annie and IDC, apps based on the Freemium business model dominated in 2013. What this means is that, by and large, mobile users downloaded more Freemium apps – and spent more money within them – than users spent on any other type of app (i.e. Paidmium, Paid apps, or apps with in-app advertising). For developers who want to make some money, Freemium appears to be the model of choice. 

Let’s change gears for a moment, though: suppose we consider the top fifty grossing apps for iPhones in the past year. Every single app was either a Paid app or a Paidmium app (save for two). That means that the biggest players in the business are charging for their apps to be downloaded in the first place. And perhaps you’ve guessed that top three highest grossing apps out of fifty were video game apps.

Mobile app gaming consumption may be the leader in time spent on mobile devices, but the success doesn’t stop there. In 2014, the mobile gaming app market was worth 17 billion dollars, and exactly half of the revenue from these games came from in-app purchases. When this kind of money is on the table, you can bet that a lot of developers are looking to get in on the Paidmium action. 

Only time will tell which way the app business model will go, and what will be the preferred choice for mobile marketing campaign managers. As of late, most developers certainly prefer the Freemium model for its simplicity coupled with a broad customer base. But the Paidmium model is gaining traction (particularly with gamers), and we’re bound to see more apps that flourish under the Paidmium model.

 

January 28, 2015

Apps vs. Mobile Sites: Which is Best for Your Business

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If you’re a small business owner looking to develop your mobile marketing strategy, you might be wondering whether to engage the services of an app developer or optimize your website for mobile users. Both have distinct advantages depending on industry, audience and budget. The problem is, there’s so much conflicting advice out there, it can be tough to know which route to take. 

A 2013 Compuware survey found that 85% of consumers prefer apps to mobile websites. That’s a bit like saying diners prefer a steak to a burger. Sure, it’s more exclusive and tastier, but it’s also more expensive and not appropriate for every occasion. The proliferation of burger chains should tell you all you need to know: just because something’s ‘preferable’ doesn’t mean there isn’t a huge market for the alternative.

Deciding whether to opt for a mobile app or mobile friendly website depends on what mobile marketing tactics you plan to use, and how these feed into the rest of your strategy. Let’s hear the case for apps first:

Apps

The principal advantage of having your own mobile app is the ability to embrace the hardware and native functionality of the phone or tablet. Gyroscopes, GPS, speedometers, cameras - all these incredibly useful bits of technology are included in most modern mobile devices, and can be incorporated into the operation of your app.

Plus, apps don’t necessarily require an internet connection to run. Many apps are capable of storing data locally on the phone’s hard drive, enabling users to continue interacting with the app even when not connected to the web. Some news sites, for instance, will download all current content when there is a wifi connection, effectively storing that day’s events onto mobile devices. This content is what users will see until the app is able to reconnect.

Because of the high demand for developers, the available infrastructure and development tools are becoming increasingly sophisticated and user-friendly. The major operating systems offer a huge selection of frameworks - often free to use - for developers to get started.

Mobile Friendly Sites

It’s easier than it used to be to get your own app - but it’s still prohibitively expensive for many small businesses. The maintenance and development costs go up with every platform you want your app to work on. With a mobile-optimized website, there is only one version of the content you need to maintain. This makes managing your mobile marketing strategy a lot easier.

Your ultimate goal is to drive more traffic. In some cases, a mobile site will do this more effectively than an app. Think about whether you want to use mobile to open up new revenue streams or improve loyalty initiatives. Depending on your objectives, a cross-channel site may be more appropriate for you mobile marketing strategy.

January 27, 2015

Net Neutrality Vote Happening on February 26th

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During a discussion at the recent Consumer Electronics Show in Las Vegas, Federal Communications Commission chairman Tom Wheeler announced that the commission will vote on a proposal to reinstate Net neutrality rules. The vote will take place at an open commission meeting on February 26th. 

Wheeler also said the proposal will circulate among commissioners beginning February 5th, and while he didn’t delve into specifics, Wheeler alluded the new proposal will “reclassify broadband traffic” as part of Title II utility. Some supporters believe this reclassification will put new neutrality rules on “stronger legal footing.”  

In November 2014 President Obama encouraged the FCC to reclassify Internet traffic under Title II of the Communications Act, though Wheeler has not said whether he supports the president’s suggestion. 

Net neutrality is defined as the idea that all online traffic is subject to fair treatment by broadband providers, meaning no restrictions or preferential treatment is bestowed on certain types of traffic. The FCC is working on new rules that will replace those adopted in 2010.

The issue of broadband traffic reclassification has been one of the hotter issues regarding the net neutrality debate, with large broadband providers such as Verizon and AT&T noting reclassification will “stifle innovation” via imposed, antiquated telecommunications regulation for an industry they believe has evolved positively despite no government regulation. However, other consumer advocates and Internet companies such as Netflix say broadband service reclassification is the only option for ensuring new Net neutrality rules hold up in future court challenges.  

During his discussion with Consumer Electronics Association head Gary Shapiro, Wheeler made it quite clear that the FCC’s approach to the proposal will not include “all of the restrictions under Title II meant for traditional telephony networks to broadband.” Rather, the proposed rules would “forbear or exclude” broadband from clinging to Communications Act provisions that don’t apply to broadband service. 

He said the idea is to make certain that the agency can “provide a legal standing” for rules prohibiting broadband providers from “blocking content, throttling traffic, or offering a paid prioritization service.” The other idea is to ensure Internet service providers manage their wares in a way that is transparent to customers.

"The wireless industry has been wildly successful as a Title II regulated industry," he said. "So there is a way to do it right."

Wireless industry reps disagree with Wheeler in terms of Title II restrictions on broadband. 

"Comparisons to the regulatory framework for mobile voice are misplaced and irrelevant," Meredith Attwell Baker, president and CEO,CTIA-The Wireless Association, said in a statement. "Congress created a regulatory regime for mobile voice under Section 332 and Title II. Congress also created a separate regulatory regime - -explicitly outside Title II -- for other services like mobile broadband. The FCC cannot now rewrite Congress's intent to rewrite the Act or rewrite history."

Wheeler has also remarked that he has “no intention of allowing broadband providers to create a two-tiered Internet of haves and have nots." The vote later this month will hopefully settle some much debated issues around this topic. 

December 30, 2014

What Will Happen to Mobile Marketing in 2015?

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Change is inevitable (with the possible exception of vending machines), so what will become of mobile marketing in the coming year? Let’s take a look at what continues to dominate, what will change, and perhaps make a prediction or two: 

The Visual is Essential

One thing’s for darn certain: visuals aren’t going anywhere. The competition for consumer attention continues to gain momentum, and as such photos, videos and infographics are necessary to every piece of content created. A recent survey by the Nonprofit Times found nonprofits rank higher than for-profit organizations in content marketing strategies, with some 63 percent reporting current work on visual content as a big part of strategy. 

Personalization Increases

In-the-know marketers utilize analytics to create successful marketing campaigns, and in 2015 businesses will no doubt study customer behavior and interests in depth to craft customized content marketing strategies to stay ahead of the competition. Businesses are learning how to make adjustments with each new social media update, blog, etc. Measuring efforts will be easier than ever before in 2015 thanks to a number of new analytics tools. 

Consumers served content tailored to personal tastes will prevail in 2015 over marketing efforts that barely rings any bells. This includes blogs, guest blogs, articles and tweets, as brands have realized the value of personalizing content so as to reach different demographics rather than posting the same blog or tweet across all social media platforms. 

Mobile Friendliness: A Must

The mobile device surpassed the PC in usage for the first time in 2014, and brands are making adjustments to ensure content marketing efforts work for smaller screens…and shorter attention spans. Content designed for mobile devices, including location-based search terms, will be incredibly important in 2015. 

“Marketers have been advised to create and tailor different formats of content with customized copy for highly-fragmented marketing channels from TV to print to various social media platforms in order to reach their target audience,” says Pam Didner, a global integrated marketing strategist for the Intel Corporation. “It’s the right thing to do.” 

Interactive Applications for Product Storytelling Becomes Integral

Interactive storytelling will become an “integral part” of product demonstration in 2015, particularly at events such as conferences and expos. Brands are finding ways to use interactive 3D product models among other meticulously-crafted content to attract customers and give them a proverbial taste of the product without having said product on premise. 

These are just some of the ways mobile marketing will grow and change in the new year….

 

 

December 17, 2014

How SMS is Helping Small Businesses in Latin America

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The second annual Latin American Bitcoin Conference took place in Rio earlier this month. More than 200 attendees saw seminars and panels featuring 37 guest speakers from around the world. 

Among the keynote speakers were a number of bitcoin representatives. The crypto currency is making a big impact across the region. A new partnership between Coinapult and 37 Coins seeks to expand bitcoin access to segments of the population without smartphones or traditional banking methods at their disposal. Their weapon? SMS messaging.

The service allows bitcoin users the world over to send and receive payments using only a feature phone with SMS capability. For entrepreneurs in South America, it holds the promise of allowing them to operate from remote areas, lessening the burden on over-populated urban centers.

This is a crucial development, not just for SMB owners, but for the public purse as well. Millions of small businesses across Latin America are currently restricted to cash-only transactions. This raises the question: how sure can local governments be that rural entrepreneurs are doing due diligence when it comes to paying taxes? It hardly takes a cynic to assume millions of pesos, bolivianos, reals and dollars are slipping through the net.

Of course, there will always be a black market. For some, operating outside the system is a point of principal. But for most small businesses, removing the temptation is all that’s needed to reduce corruption. Give them the tools to accept trackable, taxable payments and they’ll play ball, safe in the knowledge that the added security will help their business in the long run. Legitimacy is so much more attractive when it’s easily achieved.

A similar scheme – albeit with no SMS element – has been implemented in East African countries including Kenya, Rwanda and Tanzania. M-Pesain allows its 16 million users to send and receive money, pay bills and withdraw cash from local ATMs. 

SMS-based money transfer systems are providing the way forward in Latin America. Paraguay has Giros Tigo, which incurs a 5% commission fee. Brazil and Argentina have similar systems in place.

Bitcoin and text messaging seem to be a winning doubles team. The key beneficiaries are often people who face discrimination from financial institutions, which view them as risky prospect for credit. Entrepreneurs trying to make headway in these conditions find it difficult to send money, pay with credit cards or open a bank account – no matter how promising their ideas are. Nothing can match text message in terms of potential: four billion people worldwide are living without smartphones (perish the thought!) and the remittances market has found it’s most promising tool yet in SMS-enabled bitcoin transfers.

December 10, 2014

Why Are Mobile Marketing Budgets Increasing?

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We see a lot in these pages about the growth of mobile marketing. But just how fast is that growth happening? And are the same trends expected in future? 

The more the industry swells its ranks and revenues, the more data we have to go on. A recent Tatango survey looked at mobile budget trends and forecasts and compared the results with previous mobile marketing metrics. So, are budgets going up in accordance with the mobile explosion? 

The answer is yes. Very much so. Some 44% of marketers said they were increasing their mobile budgets during 2014 – up from a little over 42% in 2013. Mobile is proving particularly popular with startups, who can devise creative mobile marketing campaigns on relatively few dollars.

Other surveys report similar upward trends. According to Gartner, digital marketing budgets are expected to increase by 8% in 2015. Exactly half of all respondents stated an intention to increase digital spending next year.

The message from businesses remains remarkably consistent. Gartner’s research was conducted with the participation of 315 companies located in the United States, Canada and the UK. They represent organizations with more than $500 million in annual revenue, working in six disparate industries: hospitality, tech, manufacturing, financial services, retail and media. The bigger the firm, the greater the marketing budget as a percentage of revenue; companies with revenues in excess of $5 billion report spending, on average, 11% of revenue on marketing. For companies generating between $500 million and $1 billion, marketing spend was 9.2%. 

And really, those dollars are what it all comes down to. Understanding how to exploit capital to it’s fullest potential is the primary challenge for cash-strapped startups. That’s why having an effective CFO is so important, and it goes a long way towards explaining the huge popularity of mobile marketing tactics like coupons and time-limited discounts, which are easily and affordably disseminated via text message.

The modern marketer is performing a delicate balancing act. Each strand of their campaign must be woven together into a satisfying whole. Integration is everything. The resultant consumer experience is nudging users towards a more self-service buying model, which means businesses can reduce traditional sales-led budgets without sacrificing quality. Marketing budgets in general – and mobile marketing budgets in particular – are the primary beneficiaries of this new model. If you’re yet to move ad spend into a coherent mobile marketing strategy, it might be time to start…

December 02, 2014

Crank Up Your Marketing Efforts for Christmas

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As the holiday shopping season draws near, it’s important to “amp up” marketing efforts. Let’s check out a few holiday promotional tactics small businesses can implement and subsequently increase brand recognition while ensuring customer loyalty.

 

Email Marketing

A straightforward option, email assorted blasts to opted-in customers about deals, sales and other promotions, and create holiday messages discussing new promo codes or other exclusive, limited-time offers. Existing customer discounts and free gift cards with purchase are generally the most successful email blast options, as they build brand loyalty and referrals in addition to increasing sales. Find an appealing holiday template, add the right information, and go from there.

 

Content Marketing

Whatever you “put out there” for your customers should engage them--don’t simply go for the boring sales pitch. Place attention-grabbing content on social media channels, blogs, press releases, articles, videos...think funny holiday clips, last-minute tips, guides on using your products, fun and helpful newsletters, and more. Information on day-before-Christmas ordering is another great content marketing method.

 

Social Media

Social media is a viable option for promoting your brand and products. Pinterest, Instagram, Twitter and Facebook all provide real-time access to customers and their online communities, with social media marketing even more essential during the holiday season. Upload holiday-themed images to your accounts, such as product shots in holiday settings or stores/offices decorated for the season. Provide regular updates on holiday promotions, sales, return policies and shipping cut-off dates, but don’t forget to add fun seasonal facts and similar information as well. Promoting gift card opportunities with links back to official websites is another option.

 

SMS Marketing

Text message marketing is becoming more and more prevalent, as it provides an easy, cost-effective method for reaching the vast majority of your customers instantly. Send holiday promo codes to opted-in customers, as well as exclusive holiday coupons and sales alerts. Advertise Christmas-themed discounts and specials to potential customers who opt-in, and enjoy a larger database you can utilize all year long.

 

Open House 

Another excellent Christmastime marketing idea is to host an open house at your place of business if applicable. Provide cookies and warm cider and or mulled wine, as well as free gift-wrapping for shoppers. Raffles, discounts and other special promos also work when advertising an open house, as do cross-promotional efforts, such as offering handmade chocolates from the confectionary across the street. If your business caters to children, have a friend or co-worker dress up as Santa and hand out candy canes or Christmas-themed coloring books while taking free photos with customers and their little ones.

These are just some of many marketing options to try this holiday season. Good luck, and Happy Holidays. 

November 29, 2014

SMS Can Drastically Improve the Cost Effectiveness of Your Collections Process

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In the past, collections agencies have utilized automated calls and effective agents to receive payments from the overdue accounts of borrowers. These days, we have the advantage of automated digital options, including email and apps to help remind customers of their bills. One method has risen to the top recently, though – the SMS authorized payment. 

Due to the explosion in mobile traffic, lenders are turning to SMS as the principal way to reach the bearers of overdue accounts. Everyone has a mobile phone, and since they tend to carry them at all times, this has made the method of SMS authorized payments very attractive to lenders. Collections agencies are now reporting that SMS strategies for collections have the highest rate of successful repayments.

 

Reduction in Expenses

The benefits to lenders are clear. SMS authorized payments reduce costs for the lender, while providing a superior customer experience. Studies show that SMS payments cost lenders about one-quarter of the amount required for automated voice services, and only a tenth of what it costs to pay an agent to secure collections.

 

Customer Preference

In addition, customers prefer digital contact with lenders rather than with a direct agent. There are many reasons that borrowers lean toward digital contact: Agents can be more difficult for customers to interact with, and digital methods are less embarrassing and intrusive for borrowers.

Provided that a lender abides by all privacy laws while leaving preferences up to the customer, most customers will choose to pay through interactive SMS correspondence. Options must be provided for each borrower: should a customer decide to pay using another method, the lender should work to allow for these changes. As always, any and all payments must be allocated by the collections system, regardless of method.

 

Integration 

SMS technology is also one of the easiest methods to incorporate into established collections systems. Once receiving the SMS past due alert, the customer can pay by phone or click through to the website in order to create a payment plan, chat with a live agent, and schedule future payments. It is on the website that the customer should be given the option to manage their payments through SMS authorized payments according to their schedule. These preferences should include the best way for the lender to contact the borrower as well. Creating ease-of-use online will drastically impact your opt-in text list.

All in all, SMS authorized payments are the wave of collections’ future. Consider the benefits to your agency, and the peace of mind you will provide for customers. 

November 25, 2014

How SMS Marketing Drives Black Friday Sales

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SMS marketing impacts Black Friday sales in a big way. Since it’s the biggest shopping day of the year and the beginning of holiday shopping activities, marketing campaigns announcing Black Friday sales are everywhere...including on mobile devices. And really, what better way to advertise Black Friday deals and events than with SMS? The vast majority of consumers own mobile devices, which they have turned on (and carry on their person) at all times. Ninety-five percent of marketing messages sent via SMS and MMS are opened, so crafting marketing campaigns around mobile devices makes a whole lot of sense, as many retailers have discovered.

Businesses use SMS to deliver sales alerts to customers, as well as exclusive coupons, video clips, and much more. All help ensure customer loyalty and holiday business; and when the holidays are over, businesses have a whole new database of customers opted-in to loyalty programs. This means alerting customers to sales events and new products all year long.

 

Black Friday: 2012

According to IBM, mobile shopping increased considerably in 2012 compared to 2011, with 24% of customers using a mobile device to visit retailer sites. Some 16% of shoppers used a mobile device to shop in 2011. In 2012 the iPad was the main device utilized for online shopping, followed by the iPhone and the Android. And while shoppers used social media sites such as Twitter and Facebook to express gratitude about great deals and sales in 2012, that number decreased from the previous year. Shoppers referred from social networks made up .34% of online sales in 2012, a decrease of over 35% from 2011.

 

Black Friday: 2013

Last year, the amount Black Friday shoppers spent over the two-day Thanksgiving holiday rose 2.3% compared to 2012. Online sales also increased--20% from the previous year on Thanksgiving and 19% on Black Friday. Amazon.com attracted consumers by offering deals and discounts every 10 minutes, while Walmart processed some 10 million register transactions from 6pm to 10pm on that shopping day.

 

Black Friday: This Year

Social media may not play as prevalent a role in consumer shopping this year, however SMS marketing is certainly aiding retailers in their efforts to increase holiday revenue. Whether retailers will choose to implement new SMS strategies during the holiday season has yet to be seen, but one thing’s for certain: mobile marketing allows businesses to alert customers to Black Friday deals quickly, easily, and earlier than ever before. And with a simple click-through of a hyperlink, SMS receivers can make fast and easy mobile purchases. That means bigger sales, satisfied customers, and happier business owners this holiday season with SMS marketing.

November 24, 2014

6 Thanskgiving Ideas for Restaurants

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Thanksgiving is a tricky time for restaurateurs to negotiate. Many eating establishments simply close for the day, unwilling to compete with the home-cooked fare being prepared in homes across the country. 

For most restaurants, that’s probably a fairly sensible idea. But just because you’re closed doesn’t mean you can’t capitalize on the holiday. In fact, by giving your staff the day off and minimizing your overheads, and helping customers prepare for their family Thanksgiving meal, your business could turn a bigger profit closed than open. With that in mind, let’s take a look at some top tips for making the most out of this year’s Turkey Day.

Make Dessert

With so much food to prepare for the big day, the idea of outsourcing some of the culinary responsibility is very appealing. Why not use your expertise to sell desserts or side dishes to customers as a way of relieving the pressure? Take pre-orders so you know exactly how much you need to order, and ask customers to pick their dishes up on Wednesday before 2pm so you can close early, safe in the knowledge you’ve made some extra cash.

Provide Supplies

In the same vein, you can make the most of your unused assets when closed for Thanksgiving. Offer chairs, tables and utensils at knock-down rental prices. Even if you throw in the washing up, your costs will be minimal. 

Offer a Seasonal Incentive

Take a holly leaf out of Christmas’ book and run a promotional schedule that counts down to the big day. Starting the Sunday before Thanksgiving, offer customers a 20% on wine one day, a half-off coupon for entrees the next, and so on up until you close. It’s a good way to generate more business to see you through the Thanksgiving slump.

Christmas Meal Vouchers

With Christmas around the corner, why not tie in your Thanksgiving promotions to the upcoming holiday season? Unlike Thanksgiving, it’s not uncommon for people to eat out on Christmas Day, so offer a deal on the latter that only applies if they buy before the former. Use the opportunity to entice customers to sign up for text alerts – it’s one of the most effective mobile marketing tactics there is.

Takeout Deals the Night Before

Again, you are well-positioned to alleviate the pressure on Thanksgiving cooks by eliminating the need for themcto make dinner the night before. Offer mobile coupons for takeout boxes on Wednesday November 26. Even if you don’t usually offer a takeout service, it’s a winning mobile marketing strategy; you can make a selling point of the service being a one-off, never-to-be-repeated deal.

Close for the entire weekend

Here’s an interesting one. It might seem counter-intuitive to close shop for the days following Thanksgiving, but it can work wonders for staff morale, bringing them back to the restaurant with renewed energy. Remember, most people are thinking about retail - not restaurants - on Black Friday, and between shopping for deals they’re working their way through all the leftovers. Instead of risking a quiet couple of days, close on Friday and Saturday and return with a bang on Sunday for the start of the Christmas craziness.