Stand-Up Strategy

SMS is dead.
Long live MIM.

WhatsApp has been a major contributor of 25% decline of SMS in Spain. Chinese WeChat has over 300 million users. Over 90% of Korean smartphone users use Kakaotalk. These are just a few examples of the rising trend of the mobile instant messaging (MIM).

Instant messaging as such is not a new thing (remember ICQ?), but there are certain reasons why it has had its resurrection now:

1. Phones are increasingly more about data than talking
In developed countries nearly every new phone sold is smartphone. Smartphones are increasingly more about being smart than phone. There is app for that, now also for the basic phone features (talking and texting).

2. That data is getting faster
New 4G LTE (Long term evolution) phones will enable high-speed data for mobile phones. This opens new opportunities for what kind of content we can exchange in MIM platforms.

3. Facebook is so huge that it is already mass broadcasting
If you are average Facebook user sending your status update, the odds are that the message will be seen by your family, friends and colleagues plus countless of people you do not even know about. This is great, but serves more of people´s need for vanity and instant recognition. The most meaningful conversations happen with the people you know. Same phenomenon has been also reason for the success of Path.

4. There is always need for 1-to-1 communication
Some might argue that Facebook message does the trick. However the challenge is that Facebook is already flooded with so many messages, it is not that reliable way to catch people (at least not all of them). Phone has been relevant for so long because you can be quite certain that your message is received. Although Facebook has increased the number of “friends”, it has not really increase the number of “real friends”. The amount of those real friends is limited and many of interactions with those people we want to keep private.

5. World is getting smaller
Majority of MIM applications work internationally. The bread and butter of Telcos profit margins has been charging for international calls and roaming. MIM applications do not have those international boundaries. You want to communicate with your friends no matter where they geographically are.

6. World is getting more visual
Although SMS-messages have been relatively cheap, telcos are still taking quite big premium with multimedia messages. With MIM applications you can send whatever data possible and the because of the point 2 the alternatives are actually increasing all the time. Basic SMS- type of messaging is just the beginning for MIM applications and there will be probably lots of innovations in what kind of communication there will be.

What are opportunities for marketers?
Many MIM applications are still quite in infancy regarding their business model. Opportunities for marketers also vary greatly between different platforms. For example paid application WhatsApp is totally ad-free and there has not really been marketers using it (expect for personal use). On the other end of the spectrum is the WeChat, which is currently almost like Wild West with Chinese brands flooding there.

MIM applications are interesting part of mobile strategy for marketers. They provide straight access to consumer´s main screen: smartphone. As the smartphone is always within you, that is the straight pathway to consumer connecting digital to retail. That is the connection which every marketer wants to master. It might be that clever way to utilize MIM is the key for cracking that task.

But why anyone would want to have 1-to-1 connection with brand?

Compared to Facebook where your brand page reaches only fraction of your fans, MIM application has almost the hit-rate of 100%. This is creates a big responsibility for brands. You cannot flood your fans with messages such as “Like if you are ready for the spring!” or “Tell us in one word: (Our Brand) make me ______”. You are truly invading personal space with your message so it needs to add some real value for the consumer. In Facebook you are more likely to get away with stupid brand messages, although they are definitely not recommended in there either.

Here potential routes for marketers to utilize MIM:

1. Daily Deals & Promotions
Deals and promotions are always appreciated by the consumers. With MIM you can connect it phones and also create the sense of urgency to redeem those deals. Of course, provided that these deals are good.
2. Daily tips
MIM provides opportunities also for content marketing. It could be daily practice tips for sport brand. It could be song of the day for music service. Of recent campaigns Oreo Daily Twist could work in Whatsapp. The most important thing whether deals or content, is the expectation management. You have to be really candid about what kind of messages you send and how often. You have one change to lose trust and none chances to get it back.
3. Extension of loyalty card
Having own MIM circle for the valued customers could be great idea for rewarding your best customers with VIP treatment.
4. Rapid Market research
Combined with promotions or deals, MIM also provides vehicle for doing rapid market research and gather intelligence for your loyal customers.

It is too early to tell whether MIM will be the secret weapon that connects digital and retail. One thing is certain though: MIM cannot be left out of consideration for your mobile strategy.