Issue 47 • FEBRUARY 2014
PPP study finds PRS customer service lacking – and costly
THIS MONTH... News
• M-payments make up 20% of global online transactions, says Adyen 3 • InMobi unveils context away, super engaging video ads for mobile 4 • OpenMarket to provide the billing management for Sport Relief 5 • Cellhire breaks the ice with telecoms service in Sochi 6 • O2 and The Sun to offer subscribers goals service on mobile 6
Analysis Editorial Weve and MasterCard embrace NFC With three annoucements in as many weeks, MNO jv Weve has now joined forces with MasterCard to push the idea of NFC based loyalty and payments services. Can this really be the way ahead, wonders Paul Skeldon 7
new research by premium rate services industry (PRS) published by PhonepayPlus suggests that customer service in the PRS industry is ‘suboptimal’ and that getting it right is going to help lower service provider overheads. The study finds that a quarter of consumers make the bulk of complaints and that they hold the companies who provide the services and the phone provider responsible. The study, conducted by Jigsaw research for the regulator found that more than a quarter (26%) of those who contact PhonepayPlus make seven or more contacts about their issue with organisations without resolution. Another 37% have made contact between three and six times. On average, complainants to PhonepayPlus have been charged £32.14 by the PRS they complain about, while 62% of PhonepayPlus complainants held the company behind the service responsible for their issue, a further 33% consider that their phone provider is responsible. A mystery shopping exercise conducted during the research revealed that many callers have difficulties getting through to the provider of the service and those
ANALYSIS Social media and you Paul Bridge from PR Gym outlines how you can best use social media to help do your marketing and PR – a vital tool ahead of all the noise around Mobile World Congress 8
ANALYSIS All you need to know about SnapChat While we all sort of get Facebook, Twitter and LinkedIn, what can you as a business do with new social services?Rob Sober offers you a beginners’ guide to new kid on the block SnapChat 10
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NEWS #PAYMENTS M-Payments make up 20% of global transactions, finds Adyen comic relief, the Ahead of the launch of World Telemedia’s mPayment Summit on 15 May, he latest Global Mobile Payment Index from Adyen, a global provider of international and multichannel payment solutions, shows that mobile payments accounted for almost 20% of all transactions worldwide in December – growth of 55% in a year, up from 12.6% the previous December. New to this Index, Adyen has pulled out data showing not only the volume of transactions made per type of mobile device, but also the average transaction value across a selection of industry sectors. This data shows tablets to be the preferred device for higher value transactions over smartphones and even PCs in some cases. The consistent rise in the popularity of mobile as a payment medium is reflective of merchants’ efforts to optimise their payments pages for mobile platforms, both online and in-app. Mobile contributed an average of 18.5% to global transactions over the four months September to December, an increase of 13% over the previous period of May – August 2013.
Adyen looked at the variation in both volume and value of payments over mobile across five key industry verticals: travel, digital goods, gaming, retail and ticketing. Uptake in use of mobile devices to make payments over the last four months has been rapid across all sectors. Travel saw an increase of 22% in mobile payments and beats every other vertical with nearly 30% of all transactions made over smartphone or tablet. Gaming is the sector that has seen the greatest increase in mobile payments over the last four months, up by 35% to 12%. Mobile transaction volume in retail has also risen by a third, up to 23%. Ticketing now sees 20% of transactions on mobile devices, up by 12%, and digital goods payments are 18% mobile, up by 9%. For all verticals except retail, smartphone payments outweighed tablet payments in volume, and yet, we saw tablets showing comparatively far higher average transaction value than smartphones, or even PCs, in the majority of cases. Travel, though leading the way in transaction volume over mobile devices, is the one sector that
PCs still dominate in terms of transaction value, though tablets also win out over smartphones here. This suggests that users are more comfortable making pricier airfare purchases on larger-screen devices. It’s striking that tablet transaction value is so high across the board, and that retail recorded greater transaction volume for tablets than any other device. This suggests that the retail industry leads the way in streamlining the payment process for tablet users. This trend could also indicate a link between spontaneity and low value purchases, versus enjoyable browsing experience and higher value purchases that require longer time for consideration and decision-making. The tablet, with its combination of a bigger screen, touch interface and portability may account for a better browsing experience and longer shopping sessions. It may also lead to it being used more during leisure time, when people are making purchases they care about more, as opposed to being used at work or during commuting, when smartphones and PCs may be used for spontaneous, lower value purchases.
>>>from page 1 PPP survey who contacted their phone network reported that they were not put at ease by that contact. “In short, this report confirms the PRS industry and PhonepayPlus’ suspicions and anecdotal reports that the customer enquiry and complaint experience is sub-optimal and must improve if consumers are to continue using such services over the longer term,” says Paul Whiteing, CEO of PPP. “ The cost of this repeated customer service is borne as much by businesses in their overheads as by the consumers experiencing bill shock – averaging £32 in the case of complainants to PhonepayPlus. Improving this situation means clear benefits for PRS providers’ balance sheets and reputations.” However, the report is not all
negative: there are positives for both the PRS industry and PhonepayPlus to take from this report. Since PhonepayPlus’ 2009 research into the consumer journey, the number of unnecessary complaint journeys have reduced and become somewhat more straightforward. The Mystery Shopping element of the research and complainants’ interviews each rated PhonepayPlus highly for customer support and contact and found examples of good practice amongst the industry’s own customer services. If the industry recognise and digest these findings, they will find solid foundations for customer service improvements. In its draft Business Plan and Budget for 2014/15 PhonepayPlus has already committed to engage with industry
to improve the consumer experience. The regulator has also made changes to some of its processes to improve the updates given to complainants. Paul Whiteing, Chief Executive of PhonepayPlus, adds: “By working together we and the industry can ensure the best experience for all users of premium rate services, and in the longer-term reduce the cost of the regulation.” The research was conducted independently by Jigsaw Research and involved 4,000 online interviews, over 100 interviews with consumers who contacted PhonepayPlus and mystery shopping analysis. For more details of the research’s methodology please see the full report.
NEWS
#ADS InMobi unveils context-aware, interactive video ads platform to drive interactions INMOBI has unveiled multiple advanced video ad formats designed to create an interactive and immersive ad experience for consumers. InMobi video ad formats are not retrofitted traditional videos meant to run on non-interactive, one-way devices such as the television. Instead, InMobi is creating a powerful new tool for brands and developers to increase consumer engagement by meshing together the mobile’s ability to play video along with its interactivity, proximity to the user, ability to identify the current context to name a few. “It is great to see this type of innovation in mobile, furthering the rich consumer engagement that brands can leverage,” says Greg Stuart, Chief Executive Officer, Mobile Marketing Association. “While it might be a smaller screen, mobile invites and involves consumers to live within the brand story and provides the ultimate
stage for storytelling by bringing marketers closer to their consumers than ever before.” Top app developers across gaming, music, media and entertainment, who are participating in an InMobi pilot program regarding video app promotion campaigns have seen an increase of up to 200% in app install rates. Furthermore, given that InMobi video ad views are non-incentivized, users who download an app after seeing the video ad were found to be more engaged, generated more revenue and constituted higher value for developers over their lifetime. So what’s on offer? 1. Interactive Canvas: Overlaying interactive content on the display canvas allows the advertiser/brand to enhance the video ad by introducing clickable windows, call-to-action buttons towards increasing the interaction rate. For example:
Consumers can click on a pair of shoes in a video ad once a ‘hot spot’ appears. 2. Video SmartAds: Consumers can now receive contextually relevant ads based on external feeds like location, weather and live data like stock market feeds. For example: Hot weather conditions will trigger a video ad for a chilled summer drink. 3. Video Continuum: Identify and retarget consumers by playing ads from a preset video series. A similar frame, background or trigger is used to across the series of ads, keeping the videos familiar and making it clear they are part of a sequence. For example: A series of ads on the types of stains a detergent can remove. 4. Form Capture: Better understand consumer preferences through customized questions or triggers that appear during the video ad, leading to more relevant retargeting.
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NEWS
#PAYMENTS Comic Relief chooses OpenMarket for mobile donations for Sport Relief comic relief, the UK charity that uses entertainment to raise money to help poor and disadvantaged people at home and overseas, has chosen leading mobile engagement company OpenMarket to drive SMS mobile donations for its 2014 Sport Relief fundraising campaign. This year’s Sport Relief campaign is using the OpenMarket Mobile Engagement Platform (MEP) to power its mobile donation channel, allowing people to donate to the appeal by sending a text message to a shortcode. OpenMarket is managing the entire SMS donation process. “We chose OpenMarket for its proven track record in the charity sector, delivering a reliable mobile platform that can scale to support multiple concurrent fundraising projects, all running nationwide,” said Jacqueline Hill, Head of Campaign Management at Comic Relief. “We were particularly impressed by OpenMarket’s
in-depth knowledge of the mobile donations domain and the speed with which they delivered a solution that met all of the needs of our 2014 Sport Relief campaign.” The OpenMarket platform supports text-based donations for more than 20 separate Sport Relief fundraising projects across the UK. OpenMarket is providing four charity donation SMS short codes so that donors have the choice of donating different amounts of money via SMS. The SMS donation campaign began on January 13 with special Sport Relief editions of the BBC show “The Great British Bake Off”. The programme featured an on-screen message that invited viewers to donate money by sending a text message to a short code supplied and managed by OpenMarket. The campaign will continue with other shows and events, culminating with the Sport Relief Games on March 23. Comic Relief is the latest charity to
enlist OpenMarket’s help for its mobile requirements. The Disasters Emergency Committee (DEC) is currently using the OpenMarket Mobile Engagement Platform for donations made via Premium SMS for its Philippines Typhoon relief appeal. Children in Need, the BBC’s charity for disadvantaged children and young people in the UK, also used OpenMarket for SMS-based mobile donations for its 2013 campaign. “Our selection to support Sport Relief reinforces OpenMarket’s market position as the mobile provider of choice for major charities and high profile broadcast campaigns,” said Adrian Sarosi, Director of Marketing and Business Development at OpenMarket EMEA. “Organisations can properly capitalise on the value of mobile devices as an affordable, convenient and flexible channel to reach and engage with large numbers of end-users.”
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NEWS #TELECOMS Cellhire breaks the ice in Sochi with MegaFon deal International mobile comms specialist, Cellhire has committed significant resource over the last two years to break into the Russian market in preparation for the Sochi 2014 Winter Olympics. Around 15,000 connections have been delivered by Cellhire for the Winter Olympics through their partnership with MegaFon, the Russian mobile network. Leading media companies from around the world and numerous Olympic organisations have been using Cellhire’s products and services on location from as early as August 2013 as they geared up for the Games. Cellhire has successfully worked with MegaFon at other major events in Russia as recently as the World Athletics Championships in Moscow in 2013. A Russian presence for the company has been critical to achieving success in Sochi and enables the business to capitalise on the FIFA World Cup in Russia in 2018. Tim Williams, Chairman and CEO of Cellhire said, ‘Our record year at the London Olym-
pics working with key sponsors, Olympic organisations and some of the world’s biggest media corporations has given us great momentum to build on at events outside of the UK. Cellhire’s unique agreement with MegaFon has enabled the company to offer English voicemail services and 4G coverage in Sochi. No other Russian networks will be offering these services making Cellhire’s mobile offers some of the best and fastest available at the Games. Commenting on the Cellhire and MegaFon partnership, Bogdanova Nadejda, Senior Development Manager of Small and Medium Business at MegaFon said: “The unique offers we have with Cellhire have put us in an excellent position to maximise the inbound opportunities coming to our region in the near future.” Cellhire is offering both voice and data connections in Sochi, supporting live reporting from the event to news desks around the world.
#MEDIA O2 announces exclusive access to Sun+ Goals for O2 4G customers O2 has teamed up with The Sun to give access to Sun+ including Sun+ Goals to every new and upgrading customer who signs up to a 5GB or 8GB O2 4G Pay Monthly consumer tariff. Sun+, usually £8 a month, lets people watch every goal scored and highlights from the Barclays Premier League as well as the FA Cup, Scottish Premier League and Rangers matches hours before the football round-up programmes have even started. O2 customers who sign up to a 5GB, £22 per month O2 4G Refresh* tariff, will receive six months inclusive access to Sun+ Goals. Those who opt for a 8GB, £27 per month O2 4G Refresh tariff will receive 12 months access. This latest offering builds on O2’s promise to bring to life digital experiences for its customers, powered by O2’s 4G network. Now reaching over 30% of the UK population, 13 key cities and over 140 surrounding towns, O2 4G offers a more seamless mobile experience, allowing customers to enjoy brilliant entertainment on the move.
O2’s 4G offering has been designed to leverage its heartland of music, sport and gaming through exclusive content partnerships. Sun+ Goals joins a portfolio of fantastic 4G services available to O2 customers including O2 Tracks, exclusive Priority Sports content and a range of multiplayer Gameloft games that can be played over O2 4G without any data charges. Available on a wide range of handsets, access to Sun+ Goals will be available on up to five Android or iOS devices per customer, making it even easier to watch the latest goals wherever or whenever. Nina Bibby, O2’s Marketing and Consumer Director, commented: “O2’s 4G promise has always been to offer a range of exciting and exclusive digital content to our customers, so the true benefit of fast and seamless 4G can be experienced. We are delighted to add Sun+ Goals to that portfolio, allowing customers to watch all the goals on the move on their tablet or mobile.”
OPINION
FROM THE EDITOR
Weve and MasterCard push an NFC future Just when you thought NFC was dead... Weve – the JV between O2, EE and Voda –has joined forces with MasterCard to state an intent to get all over NFC for payments and loyalty like a cheap suit. Really? Wonders Paul Skeldon
things are hotting up around the multi-MNO entity Weve. Just a few weeks into 2014 and we have already seen three major announcements and slowly the picture of the JV made up of O2, EE and Vodafone and what it is really seeking to do becomes every clearer. The two major things that Weve has pushed out recently has been an announcement regarding how it is to work with MasterCard to make contactless payments live everywhere for everyone (well everyone except anyone with an iPhone and a bank account that uses Visa) and now how its going to start to work in loyalty into the mix. It is an interesting idea. The networks – along with MasterCard – are looking to become integral to the point of sale process in retailers, offering a seamless, fast, secure payment service using mobile, along with a much easier way of building in loyalty schemes that will make life easier – and more rewarding – for both consumers and retailers. But they want to do it with NFC. Anyone familiar with last month’s Telemedia-month will remember that even the exalted madarins at Ovum have all but written NFC off. Certainly for the next two years and suggested that other technologies may take its place as it struggles to get off the ground. If the Weve-MasterCard move is to be believed then some very powerful people out there have a very different idea about how the future of m-payments is going to play out. But is this really the way to get mobile payments moving? Weve’s call to arms is that between them these three operators have access to 80+% of the UK mobile audience. But while this is sort of true, they don’t really do they? I am an O2 customer and I have an iPhone, and I bank with Santander and HSBC, both of whom use Visa. So I am not going to be playing any time soon. I am not alone. Also, NFC has realistically all but failed to really set the world alight – certainly in the UK. It is marvellous in the Oyster Card and has proved popular in other transit based trials, but go and lurk about in Pret at lunchtime and see how many people use their contactless card to pay. Not many. Weve and MasterCard clearly know what they are doing and I assume there is an element of ‘build it and they will come’ to this deal. These are two huge organisations with real clout: they could well pummel NFC into the public consciousness and make it the way m-payments work. But I am still very sceptical, I am afraid. It is overly complex, technologically, for both merchants and consumers. And there are way better ways of doing this with simple, existing tech. Bluetooth Low Energy beacons offer something more wide reaching – and use technology found in most devices. Even SMS offers the ability to pay. Heck, even email can be used to pay. With services such as Zapp, Znap and Barclays’ PingIt also offering some novel ways to make payment and loyalty work, again with existing tech, you have to wonder where Weve and NFC fits in.
Editorial Editor Paul Skeldon paulskeldon@me.com | Sales & Marketing info@telemediamagazine.com | Production Director Annika Micheli annika@telemediamagazine.com | Publisher Jarvis Todd jarvis@telemediamagazine.com To subscribe, please go to www.telemedia-news.com What we’ve been listening to Walk this Way – RunDMC | What we’ve been amused by House of Fools | Who we’ve been following @TheMobileView | What we’ve been reading about The ‘tappy shopper’| FEBRUARY 2014 will bring... Mobile. World. Congress.
ANALYSIS
SOCIAL MEDIA
How much is
SOCIAL WORTH?
Paul Bridge, Membership Director, PR Gym, takes a look at the different ways you can use social media to publicise your company and what models are best suited to what business.
pr professionals and agencies have strived over the years to create a two-way dialogue between an organisation and its stakeholders. The recent rise of social media has facilitated this process, and these platforms are now eagerly embraced by companies - there are now more than 15 million brands on Facebook and two million on Linkedin - but the suspicion endures that this is all hype. Just being present on social media isn’t enough anymore; everyone else is there already. It is now essential that you are using these channels to best effect reaching the right people with the right content and messages at the right time and in the right way. They say that what gets measured gets managed and if social media is to become an essential part of the marketing and communications mix it needs proper measurement. To date companies have tended to adopt one of three methods. The Five Aspects model In this method a PR professional will measure five meaningful variables, adding a monetary value to each based on its contribution to sales and revenue. Unlike traditional advertising, this is possible because each click can be tracked from a source. If, however, there is no visible increase in revenue, then the PR professional can substitute for an advertising equivalent monetary value to each of the following: 1. Awareness: an indication of how many people are reached with the brand message (measured in audience impressions and reach). 2. Appreciation: a measure of how many people show an initial interest in brand content (measured in posts, shares, re-shares etc). 3. Actions: speak louder as they indicate an active interest in the brand/product (measured in clicks, downloads, enquiries, purchases etc). 4. Advocacy: signifies intent to keep in touch (measured in likes, followers, circles, subscriptions etc). 5. Domino effect: reaching audiences through their network (measured in friends of friends, followers of followers, viral reach etc). This method gives the company a clear return on investment for the social media campaign in place, which allows for fore-
cast campaign revenue. This rationale, along with the visible increases in revenue can provide PR professionals and their client confidence in investing in future campaigns. However, the validity of this calculation relies on accurate input data, and as social media is such a new platform many PR professionals do not have the experience in measuring it which can result in these mistakes. The opportunity cost model In this method the PR professional will work out the return on investment by assessing the opportunity cost of the campaign, where they will compare how much it would cost to achieve an objective through social media compared to other forms of marketing. For example, a social media campaign that aims to push visitors to the company’s website could be compared to the cost of a banner advertising campaign which has the same goal. Although comparing opportunity cost can provide a good basis to decide what route to go down with a campaign, this method makes it difficult to measure he return on investment in multi-channel campaigns. This is particularly relevant where a PR professional wants to use social media alongside other forms of marketing. Tracking website conversions The final method is tracking the number of website conversions that come from your social media accounts using classic website analytics. This can be done by using online metric tools such as Google Analytics. After a PR professional has shared a link that drives customers to a particular website via social media channels, Google Analytics will track how many people clicked, shared or commented on the link. This method provides a quick and easy technique for compiling basic performance reports which can be combined with goals and conversion rates to assess the success of a social media campaign. However, as this is a post-campaign measurement tool, it limits forecasting or planning of social media campaigns. Also, with a non-human approach like this there is also room for error in identifying reasoning behind shares of clickthrough. Making it cost-effective Each route has its advantages and drawbacks, and each will be suited to different brands at different times. Ultimately the
ANALYSIS SOCIAL MEDIA
key is to use one - social media must not be left unmeasured. A key stumbling block for many organisations is the difficulty of finding a cost-effective, straightforward and accurate way of calculating the value of individual social media mentions. While for traditional media coverage it is usually affordable to pay the rates demanded by traditional media monitoring agencies, social media coverage is more frequent and lower impact, so that traditional model falls down. Quite simply the costs are prohibitive. The PR Gym, launched in early 2013, provides a costeffective route for companies to gain an accurate value of each and every piece of coverage, from traditional space to social media, all in one place. In terms of social media, users input their coverage, detailing media, followers/friends, likes, sentiment, use of key messages and so on. The system then calculates AVE and PR Value, and compiles it all into a professional-looking report which the user can generate as and when they need it. The most obvious benefit of using this service is the time saving. But also, it incorporates a human approach when assigning sentiment and key messages behind the coverage allowing for more accurate results. Looking ahead Social media has the power to revolutionise PR. Today’s PR professionals can bring an idea to a mass-market, watching their content go viral and reach millions in a matter of hours.
It is the sort of channel PR professionals a generation ago could only dream of. Its potential is further compounded by supporting platforms such as the PR Gym. Crucially, not only does the Gym allow PR professionals to understand the value of their campaigns more accurately, easily and affordably, but it also radically shortens campaign feedback loops. For years now the PR process has barely changed: devise an idea, write the press release, send it out, follow it up, track the coverage, wait for the report from the media analysis agency, review the campaign, plan the next one. It can take months, and by the time you discover that the initial idea was flawed it’s too late to do anything. However, just as social media has created instant and continuously flowing communication, so the PR Gym allows PR professionals to radically shorten this feedback loop, getting analysis of a campaign not three months after a campaign begins, not one month, or even a week, but the very next day. For the PR professionals who recognise the potential in these developments these are truly exciting times.
ANALYSIS
SOCIAL MEDIA
All you need to know
ABOUT SNAPCHAT
Continuing our look at social media marketing and how it can help your company, we focus in on one of the news kids on the block – SnapChat. Here Rob Sobers, one of the directors at Varonis, outlines what you need to know to make the most of this new player in social media (you know, the one your kids use)
While we are all pretty au fait with Facebook, Twitter, LinkedIn and even Pinterest as part of a social media marketing strategy, what of the new kids on the block? One of the leading lights in the new vanguard of social media sites is SnapChat. And its gaining a lot –and reimagining what social media is all about. So what do you need to know to make it work for you? 1. Data should have a shelf-life The flagship feature of Snapchat is ephemerality. Snaps are designed to disappear forever* in 10 seconds or less. This cuts against the grain of most social services like Facebook and Instagram which are designed with permanence in mind. I can’t think of any ephemeral-by-design applications for business, but it might be time to explore the possibilities. I wish 99% of of my emails would disappear after 10 seconds. For the executive and legal teams, data permanency represents risk. For a storage teams, permanency represents cost. Data retention policies are designed to deal with this issue, but they’re just policies after all. And the reality is that most IT departments don’t have an easy way to implement data retention policies. 2. Zero friction = rabid usage The Snapchat app is remarkably simple and fast. The speed at which a user can create and consume messages is what
makes it so addicting. Anything that distracts the user from sending or receiving Snaps has been unmercifully cut from the UI. This isn’t by accident – it’s a result of excellent product design. The result? 350 million images sent per day. It’s a different story in the enterprise where many internal software projects die due tocomplexity and friction. Perhaps CIOs and others who direct enterprise software projects should take a cue from B2C apps like Snapchat or Path and focus more heavily on design and user experience and, as a result, get more usage and buy-in for their services. 3. Mobile, mobile, mobile There’s a reason Snapchat is mobile only. It’s a messaging app and, well, even my two year-old realizes that the way we communicate with people that aren’t in the room is through the little rectangles in our pockets. I’ll give CIOs credit for this one, though. Blackberry was clearly the best way to do mobile messaging for the better part of a decade and enterprises wisely hopped on that bandwagon (many are still on it). And even though Blackberry has waned, most enterprises are dealing with BYOD head on, empowering a mobile workforce to get things done on the move. But there’s still work to be done. While it might be difficult to find anyone in business who can’t access email on their mobile device, many employees still can’t securely access their work documents or real-time message co-workers from them—the technology exists, but rollout is a work in progress. It will be interesting to observe how CIOs attempt to walk the line between productivity and security as we move into an age of wearable tech and biometrics. Even the fun, affable Snapchat has to mind its Ps and Qs.
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