The economy is continuing to heat up.
It is so encouraging to be operating again in an ever-improving global economy. We are seeing things heating up globally and signs of growth and expansion are appearing virtually everywhere!
Mobile Commerce (“mCommerce”) is one of the Top 3 “hottest” areas of growth and a key strategic revenue driver for major retailers.
Trish Mueller, CMO of Home Depot, indicated at a recent MMA-NY 2013 conference that mCommerce is growing at a 40-50% CAGR and is expected to deliver $700 million to Home Depot sales by the year 2016. Mueller referred to Home Depot’s new marketing strategy as “inter-connected retail” and she indicated the productivity of mobile search has already exceeded PC search (in just the 2nd year of aggressive mobile marketing). Even if 75% of the purchases by consumers are still completed in-store, Home Depot is leading its mCommerce shopping services with mobile search and mobile social media strategies and tactics. Mueller indicated this epiphany came about 2 years ago when Home Depot hired a college intern who quickly told Mueller (and other Home Depot senior executives) the company’s internet and mobile marketing approaches were all wrong. Fortunately, Mueller describes Home Depot’s culture as “humble and curious,” so instead of shooting the (young intern) messenger, they quickly adapted and altered their mobile and digital marketing strategies, shaping their current mobile marketing and mCommerce efforts which are “game changing” (and category leading) for this retailer.
Providing “added-value” services is what consumers are looking for and responding to rapidly in this new age of mobility.
Mueller indicated while Home Depot stores are large, there is a limit to how many SKUs they can carry. However, with Home Depot’s new mCommerce site, consumers can access over 400,000 SKUs via mobile search – a “virtual endless aisle” – enabling mobile shoppers to find what they are looking for, order on a mobile device, and complete the sale/pick-up items in-store. Home Depot’s mobile marketing makeover has made it one of the top 10 retail mobile sites – resulting in one-third of online traffic coming from mobile in 2012! Mobile search is also another area of Home Depot’s retail innovation. Mueller described a new Home Depot program called “Red Beacon” – where consumers can “Find A Pro” by taking a video of their home improvement project, sending it to Home Depot, who bids out the project and connects the consumer with a contracting “pro” (vetted by Home Depot) who can handle this project for the consumer. How is this for providing “added-value” service the consumer is looking for? It is not surprising Home Depot’s CFO recently raised their 2013 earning forecast by 18% for the full year – the company is vastly exceeding their 2013 performance targets and mobile marketing and mCommerce are leading the way!
#1 reason major marketers are behind the curve in scaling mobile organizational and talent development
Rapidly scaling mCommerce shopping and sales results are helping marketers to quickly prove the ROI case for mobile marketing investment…which is the #1 reason major marketers are behind the curve in scaling mobile organizational and talent development. Mobile marketing is still in the early stages (first 1-2 years) for the majority of top 100 global advertisers, and accordingly, most companies are still way behind the curve in terms of hiring and training/developing the mobile talent and dedicated mobile marketing and mCommerce organizations required for sustained growth and success. Larger retailers (including Walmart and Walgreens) have acquired mobile marketing agencies to accelerate their on-boarding of the mobile marketing and technology development resources required for building and operating the mobile technology platforms required for marketing and mCommerce success. This indicates large marketers are playing “catch up” so watch for further acquisitions of mobile agencies. Other top marketers are relying on technology consultancies (Accenture Interactive) and digital agencies (Sapient, Razorfish, Digitas) to assist in creating the strategic plans and global technology platforms for long-term mobile marketing and mCommerce success. If you are not already tapping these sources, again you are finding your company/business falling behind the curve.
Where does your company and business stand in relation to mobile marketing and mCommerce? Are you ready?
Unless your company already has a successful mobile marketing and mCommerce strategy and mobile organization in place, the time to act is now.
Jeff Gundersen, CEO of Executive Connections LLC, is co-Chair of a new Mobile Marketing Talent Task Force in partnership with the MMA (Mobile Marketing Association) and DMEF (Direct Marketing Educational Foundation). Jeff is also on the Board of Trustees of DMEF which has a mission to educate, develop, grow and employ the next generation of direct, digital, and mobile marketing leaders.
We encourage all companies/businesses in the mobile eco-system (marketers, agencies, media companies, technology providers, search/recruiting firms, training companies, universities/educators) to follow-up with Jeff Gundersen, join the MMA Mobile Talent Task Force, and contact us to find out more about the mission, goals, strategies, and action plans required to succeed in this new mobile marketing era.
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