Response Magazine - July 2009

that a customer has opted in, so he or she is interested and more likely to respond. This is a great leap over the 1- to 2-per- cent response rate of regular mail offers.

“These are activities that we can measure. So often response doesn’t make the register ring. But this is a tangible medium that when tracked and measured can show what mobile can do,” says Gray.

“For example, Brad [Harris] understood it was worthwhile to even offer a large value ticket. But it was worth it to him to build in that opt-in database and now he has license to communicate with these opt-ins anytime he wants — for pennies on the dollar.”

Other quick-serve food locations have capitalized on mobile couponing cam-

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Tel: 949/715-4057
www.custservdirect.com

paigns. Gray says yogurt shops are finding it a great marketing tool. On a hot summer day, they send out a message to drive customers into the store to “cool off” with a tasty frozen yogurt.

While Money Mailer’s mobile campaigns have the potential to appeal to customers of all ages, certainly campaigns that target the 18-34-year-old or 21-44- year-old demographics seem to gain the most traction, since these age groups have more early adoption rates. But, month-by-month, Gray sees the rate of older mobile users adopting SMS messaging is growing.

Which products and services thus far have had the most success integrating mobile with direct mail campaigns? “Food is certainly king,” says Gray, especially those with casual dining or quick-serve. “But we’re seeing great play with car washes, automotive services and dry cleaners.”

And Gray says this economy is the perfect time for advertisers to capture market share. Consumers are looking for alternative channels to save money by downloading coupons online, clipping them from the mail and opting-in for mobile codes. “If you’re not looking at mobile now, the competition will pass you,” says Gray. “You have an opportunity to build an opt-in database now, and over the long-term, it will yield you very large ROI potential.”

He also points to the mobile channel’s cost efficiency. Instead of sending out a monthly mailing at 50 cents each, once the database is built, an advertiser can send a text for 5 cents per message.

Gray is by no means advocating the dropping of direct mail. For Money Mailer and other companies, it is still the most important channel to drive consumers. He sees mobile as a complementary strategy. And as a direct marketer, he sees it as part of his job to be at the forefront of an industry that is constantly reinventing itself. “We have to stay ahead of the curve,” says Gray. “Finding ways to leverage the offline channel has driven the industry for a long time. New technologies to complement the offline channel will continue to come forward.” ;