Regardless of the industry you are in, mobile phone usage is on the rise, with smartphones saturating the marketplace worldwide. In 2011, 6.9 trillion text messages were sent, and this number is predicted to reach 8 trillion in 2012; the mobile marketing spend also is predicted to increase to US$6.6 billion this year. These trends show the importance of integrating mobile technologies – and therefore mobile marketing – into your marketing budget. So, what are the benefits of interacting with your customers via mobile?  Studies show mobile marketing initiatives increase customer retention and average transaction value, as well as giving businesses the chance to connect with customers efficiently and effectively.  2012 brings with it a number of opportunities to use innovative mobile marketing tools to engage customers and drive sales.  However, with an increase in noise, strategy will become more and more important in order to produce mobile campaigns that stand out.  Here are some of the tools that businesses are using to help build brand loyalty, increase customer databases, drive sales, and measure results.  SMS Still the most common form of mobile communication, Short Message Service (SMS) or texting looks to be the most popular means of communication in business, especially in NZ where smartphone adoption is still relatively low. Text messages are a simple and effective way to reach a wide audience with targeted campaigns; they can be used in many ways, including text short-codes, text-to-win promotions, text database builders and mobile coupons. This year will see some really innovative things being done with texts – one example is Castrol’s TXT4Oil campaign, where users text their registration number to 3637 to instantly receive a recommendation of the best Castrol oil for their car. QR Codes  QR (Quick Response) codes are small square barcodes which can be scanned using smartphones to link to web content.  As we become more technically savvy, QR codes are becoming increasingly popular and can be seen on billboards, signage, television and in print. QR codes are used as a means of sending people to an online destination to compare products and prices, get information on the latest products, or download mobile apps.  With smartphone usage increasing and data plans getting cheaper, we will see QR codes being used more frequently. The potential for tracking and measurement also offers another powerful reason to use QR codes; in tandem with text campaigns, QR codes are excellent for increasing brand and product awareness.  Mobile Applications Apps for smartphones are becoming increasingly popular for iPhone, Android, Blackberry, Windows and more. While we have seen significant growth in mobile gaming and social networking apps over the past year, we are likely to see more growth in business apps in 2012. However, with the increasing popularity and the volume of apps in the market, it is only going to get harder for new apps to gain attention. To be effective, then, apps will have to be functional, engaging and unique. 2012 should also see a big swing to location-based apps – targeted offers to customers while they are near your business. Augmented Reality Augmented Reality (AR) is technology that allows the customer a view of a physical, real world environment with computer-generated elements laid over the top. While there has been limited exposure to this technology in NZ, we could see AR being used more in 2012. With the increasing popularity of mobile technology as a marketing tool, consumer expectations of the type of interaction being presented will also increase. In a competitive marketplace, it is so important that mobile strategy, like other marketing channels, is kept relevant, timely and helpful.  The challenge will be to make communications more personal, to keep customers interested and not to turn customers off with mobile marketing campaigns that are poorly designed and fail to deliver customer value. In order to do this, data segmentation becomes a must. Businesses will need to know more than ever who their customers are and how their buying patterns can be served. Below is a mobile marketing health check that will help you understand how well you’re positioned to take advantage of mobile marketing.  1. Do you have a database and do you collect your customer’s mobile numbers? 2. Do you currently engage with your customers on multiple channels (including mobile)? 3. Have you thought about your mobile strategy for 2012? 4. Do you have a budget assigned to mobile marketing this year? 5. Have you determined how SMS, QR codes, apps and AR may be applicable to your customers and business?

Steffan Kelly is sales manager for TXT Engine; check out their website here.