Best Buy is doing all it can to better connect with and be relevant to customers via the mobile channel, as the company reveals in this exclusive interview with Mobile Commerce Daily. Mobile Commerce Daily’s Giselle Tsirulnik interviewed Amy Halford , senior digital brand manager of interactive marketing and emerging media, Richfield, MN. Here is what she had to say. What has Best Buy done in the mobile marketing space? (mobile site, SMS, banner ads, apps)? All of these.  We recognize that with the explosion of smart phones, 3G service, and the adoption of unlimited data service plans, we have the opportunity to better connect and be relevant to customers whenever, where ever they might seek us.  We also recognize mobile is relatively new space and that we need to explore and learn in order to grow effectively.  With that in mind, during our holiday effort we integrated mobile into the broader plan by launching our iPhone app and mobile Web sites that support customers’ needs to research, find, and buy the products they were looking for during the busy season.  Best Buy's app We created an online gift guide and used mobile advertising, app sponsorship, and SMS to support.  What are some best practices for retailers entering the mobile commerce space? Keep customers needs and their mobile behavior at the forefront of any strategy.  It’s very easy to be distracted by shiny objects, but if you stay grounded on delivering against the customer’s need, regardless of the technology employed, there’s a greater likelihood for success.  Customers have told us that the capability to thoroughly research products and connect with Best Buy sales associates is as important if not more important than being able to simply purchase over the phone.  We also recognize that our customers are across the board in the types of devices that they own.  Knowing all this, we created a mobile app experience, a mobile web experience, and SMS tools to help customers get product info, ratings and reviews, connect to our Twelpforce, and ultimately buy if they chose over the phone.    Use mobile as an integrated part of a larger strategy, not as a one off channel.  Particularly if you are a multichannel retailer, customers have an expectation of a consistent experience regardless of which entry point they access, be it online, the phone, or the store.  That’s why for the most part, our mobile communication strategy was an extension of our overall holiday strategy and there were consistent elements across. How big of a role does mobile play ion Best Buy’s overall marketing strategy? It’s getting bigger as more and more customers adopt the device. Again, the proliferation of smartphones is changing the way people use this technology and it’s becoming an increasingly more personal device that is a critical tool to help people move through their day, stay connected to friends and family, and at time to entertain and unwind.  Our chief marketing officer is a self proclaimed “noisy advocate” for the mobile platform. We see mobile as not only a commerce opportunity but an opportunity to learn more about our customers and serve them better across the enterprise.  Our approach is to test frequently, learn quickly, and scale appropriately.  That’s what you saw last summer with our beta mobile site, which launched officially with commerce capability in October, and continues to evolve with improved feature sets and experiential elements nearly every month.  What is the strategy behind using mobile? Are you trying to target a new demographic or simply adding more convenience to existing customers? First and foremost, we see mobile as an opportunity to bridge the online environment and in store, and that’s largely targeted at enhancing and improving the experience for our existing customers.  However, we can’t deny there is an opportunity to reach specific customer segments that our other, more mass channels tend to miss.  For instance, we had a Spanish version of our Deal of the Day SMS stream targeted at our Hispanic customers.  It was still integrated into a broader strategy to reach this target.  We also recognize the 1:1 opportunity of the mobile channel and as we develop that capability, mobile is a key means for allowing customers to get more customized messaging and offers should they choose to do so.  Do you have a mobile SMS club? What types of deals and promos do you send consumers on this list? We have built several SMS subscription databases including our Best Buy Deal of the Week, which we promote and send each week in both English and Spanish.  To support our stores at a local level, we’re executing a district-level SMS pilot enabling those stores to send news, alerts, events & offers specific to their store – to the customers that shop in their store.  We also have a Movie Club where we send exclusive movie offers on a regular basis to those who choose to opt-in.  Complementing our Reward Zone Gamer Mobile App, we have also built an Reward Zone Gamer SMS subscription database that we send various gaming alerts, event notifications and gaming offers.  Our Musical Instruments team has an SMS subscription database where we announce product launches and send valuable offers from the Musical Instruments Store.  Part of the value we offer customers through Best Buy Mobile is the opportunity to get news about launches, offers, and a notification when your phone is eligible for a free upgrade. From a brand perspective, what are the challenges or impediments of getting onto the mobile space? Multichannel integration and measurement are the two biggest challenges.  Mapping out our organization’s entire digital ecosystem and taking advantage of all the touch points in a relevant way is very challenging both in its size and complexity.  Additionally, integrating measurement systems and identifying KPIs (key performance indicators) that relate back to the bigger strategy is challenging as well.  We can define what success looks like in the channel itself but capturing metrics that tie it all back to the impact on the greater enterprise is more difficult.  That’s why strategically it’s so critical to keep focused on meeting customer needs from a multichannel perspective, while not focusing solely on growing the mobile channel alone.

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Best Buy reveals mobile strategy

Target's mobile gift cards To keep up with consumers’ increasing dependence on their mobile phones, Target is letting customers use their wireless devices as gift cards. Target claims to be the first major retailer with the ability to scan mobile bar codes in all of its stores. The retailer said this latest mobile program is consistent with its “Expect More. Pay Less” brand promise. “Target offers a number of on-the-go solutions like Target Mobile gift cards because mobile devices have become a popular technology in our guests’ lives,” said Sara Moore, a spokeswoman for Target, Minneapolis. “Target continues to innovate in mobile technology to improve the guest experience.” Target has 1,740 department stores in 49 states nationwide. Gift of mobile Consumers can save their gift card information to a PIN-secure account on the Target.com mobile site. To use the mobile phone as the gift card, the device has to have Internet capabilities. Consumers can check balances at any time via the mobile site. In addition, the mobile gift card functionality lets consumers save multiple gift cards to their account and label each one for reference. Target’s point-of-sale bar-code-scanning technology makes the mobile gift cards possible. Hitting the mobile target In December, Target detailed its 360-degree approach to using mobile for building brand awareness, promoting specific deals and enhancing the convenience of the shopping experience ( see story ). This past holiday season, Target added new components to its mobile Web site and iPhone application. The retailer launched mobile access to its Checklists, Merry Planner Calendar, Perfect Gift Pairings, Target Christmas Videos and a Gift Finder. Target consumers can also opt-in for holiday-planning text-message alerts ( see story ). The retailer also served as the launch sponsor of The CW network’s new iPhone application, CW City Wize. The application offers map of locations featured on three CW dramas: “Gossip Girl,” “90210” and “Melrose Place.” Locations such as restaurants, hotels and spas where characters are seen in the three different shows are plotted in a map view, as are Target retail locations ( see story ). On Target’s mobile site and application, consumers can view online assortments, check product availability and store locations, manage their Target gift registry and lists, browse the weekly ad, and receive text and email notifications of deals. Target is promoting the new mobile offerings via http://www.Target.com on the PC and mobile Web. “Target Mobile GiftCards simplifies guests’ shopping experience because they no longer need to carry and keep track of numerous GiftCards,” Ms. Moore said. “At Target, mobile is a marketing and service channel. “It’s a way to promote products, build brand awareness, engage guests, and help guests make the most of their Target shopping experiences,” she said. “We are committed to creating a useful and relevant experience to all mobile users – from guests looking for basic features to those who are who want more advanced applications.”

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Target expands mobile commerce presence with gift cards

LendingTree's app LendingTree LLC, a lender exchange and personal finance resource, is aiming to help mobile consumers navigate the bleak economy with a mortgage quote application. The application, Mortgage RateFinder, gives consumers up-to-the-minute loan offers without sharing personal information. Consumers are in total control within the application – they decide which lenders contact them. “The application is the first of another pipeline of solutions and innovations that we extend to help consumers navigate the chaos of the mortgage marketplace,” said Mona Marimow, senior vice president of marketing at LendingTree, Charlotte, NC. LendingTree helps consumers take charge of their financial decisions such as budgeting and money management to mortgages and credit cards. The LendingTree marketplace connects consumers with multiple lenders that compete for their business. Mobile to the rescue LendingTree’s Mortgage RateFinder is an extension of the brand’s promise to deliver transparency and efficiency to the mortgage process by forcing banks to compete for a consumer’s business. The application is free and the offers that are served come at no charge as well. There is no ad-sponsorship, but Ms. Marimow said that it is not impossible to see that happen eventually. The application is monetized through LendingTree’s business-to-business model it has with qualified banks and the offers they serve consumers. Consumers can search the application anonymously and get customized rates based on their loan profile. There is no restriction on the amount of times a consumer can search. The application also features a click-to-connect feature that lets the consumer tell the financial institution they are interested in the loan. No lender can contact a consumer without pre-approved consent. Mortgage goes mobile Ms. Marimow said the iPhone application is just another way LendingTree has leveled the playing field for consumers to get the best quotes and loans. Currently the application is for Apple’s iPhone, but it will expand to Research In Motion’s BlackBerry smarthphones soon. There is no specific target user, just the average person looking for a loan, which is generally consumers between the ages of 25-54. Ms. Marimow said LendingTree’s demographic aligns well with that of the smartphone user. LendingTree is promoting the application through its blog, Twitter and Facebook, as well as placing some online banners at http://www.lendingtree.com . “We are all about providing utility to customers at every single touch point,” Ms. Marimow said. “We want to give as much information for consumers to have on-demand. “With all fluctuation in the mortgage landscape right now, we really need to make sure we’re there for consumers wherever they are and mobile is obviously an important touch point for us,” she said.

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LendingTree uses mobile to help consumers navigate mortgage chaos

Barry Bagels goes mobile Barry Bagels, a sandwich, salad and soup company, is letting consumers order via mobile in an effort to increase sales. The bakery chain has an online ordering site and went mobile to be in front of a much broader, busier demographic. Using the application, consumers can access past orders, favorites and specials. “We are looking for ways to make it extremely easy and convenient to order from our locations anytime anywhere,” said Mark Greenblatt, president of Barry Bagels, Toledo, OH. “The idea of putting our logo on customer phones is priceless since it builds brand recognition and reminds them every time about their favorite bagel brand.” Barry Bagels is a five-unit restaurant with four stores in Ohio and another in Michigan that was founded in 1972. The company serves bagels made from scratch, coffees, soups, salads, sandwiches and desserts. Onosys Online Ordering , a provider of online and mobile ordering services, developed the application for Barry Bagels. College kids want convenience The iPhone ordering applications created by Onosys are customizable for every restaurant. Using the application, customers can find restaurant locations and get directions via the device’s GPS. Favorite and past orders are synchronized immediately with the consumer’s online profile. This feature allows complete functionality of the program to be in the hands of the consumer. Stan Garber, a partner at Onosys, Cleveland, said Barry Bagels launched an application to make it extremely easy and convenient to order from their restaurants anytime, anywhere. “With the Barry Bagels logo always being on the customer’s phone, that’s brand recognition and reenforcement that’s very valuable,” Mr. Garber said. The application is addressing Barry Bagels’ challenge in figuring out how to reach young, on-the-go consumers who are sometimes hard to reach through traditional media outlets. The targeted demographic for the application is mainly college students and middle-to upper-class consumers. Barry Bagels has in-store and online advertisements promoting the application. Future marketing plans include marketing at Toledo University and University of Michigan. Barry Bagels plans to offer a free bagel with a consumer’s first iPhone order.  Mobile loyalty Mr. Garber said Barry Bagels customers are very loyal. The application ordering needed to be quick and convenient for consumers to place orders anytime and for them to think Barry Bagels when it comes time to pick a restaurant. “As customers grow increasingly more dependent on their mobile devices to deliver information, Barry Bagels wants to make sure that their locations have the advantage of being always visible and always available to taking customer orders,” Mr. Garber said. However, mobile ordering is not for every eatery. Mr. Garber said locations that do not have a high to-go business are not really ideal candidates for mobile ordering applications. The same goes for catering heavy locations because of the complexity in the order process. “In general, any eatery that is doing more than 6 percent of their business to-go could benefit from a mixture of online and mobile ordering,” Mr. Garber said. “Eateries next to schools, downtown, or around business parks are perfect for a mobile solution because they are always on the move and saving 15 minutes during lunch would be a big win for them.”

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Bakery chain Barry Bagels enables mobile ordering to drive sales

Bloomingdale's Lexington Ave store window Bloomingdale’s use of mobile marketing in its Lexington Avenue store window is an example of the way in which the channel can give legs to traditional media. The retailer’s Lexington Avenue windows were transformed into three studio vignettes, with Bloomingdale’s, Apartment Therapy and Elle Decor each designing one room, using furniture and décor from the Bloomingdale’s home store. There is a call to action in the window display, which encourages consumers to vote for their favorite vignette via text message or online. “The strategy for adding SMS texting as an option in the Big Window Challenge voting was to add an element of engagement at the windows,” said Frank Berman, senior vice president of marketing at Bloomingdale’s, New York. “It allows for customers and passers-by to interact with our brand — in and easy and instant way — as they walk by,” he said. “We will continue to consider utilizing SMS voting for future campaigns where it makes sense.” This year’s challenge features the Bloomingdale’s Interior Design team, headed by Eileen Joyce; Maxwell Gillingham-Ryan, co-founder and New York editor of Apartment Therapy ; and designer and blogger Eddie Ross for Elle Decor . The only requirement in the design of each room was for the designers to include a three-drawer chest from Bloomingdale’s exclusive new Hudson Park Loft Collection. Once the rooms were furnished using Bloomingdale’s assortment of furniture and decor, the designers were invited to bring in their own personal touches, such as favorite collections or antiques. Bloomingdale’s customers, pedestrians, and readers of Apartment Therapy and Elle Decor are all encouraged to participate in the Big Window Challenge by viewing the windows and voting for their favorite design online at BigWindowChallenge.com or via text message.  Kaooga is powering the SMS aspect of the campaign. Voting began on Wednesday, Jan. 20, and ends at midnight EST on Jan. 28. Instructions for voting are featured on the Web site and in a small, introductory vignette adjacent to the three Big Window Challenge windows. The votes will be tabulated and updated online and in the windows daily. The winning room will be announced on BigWindowChallenge.com and ApartmentTherapy.com on Friday, Jan. 29. Dave Everett, CEO of Kaooga, Newton, MA, said for retailers this type of a promotion shows how SMS shines a bright light on the retailer and consumer interaction.  “We see here that hundreds and hundreds of people are texting in daily to vote for their favorite decoration,” Mr. Everett said. “Imagine if this particular promotion had run with a major offering, store discount or chance to win, the opt-ins would have probably been tenfold. “This demonstrates the power of text in a retail environment,” he said. “Consumers are indeed readily willing to participate in these simple promotions. “SMS is quickly becoming a preferred method to do it because of its unparalleled simplicity.” This is the call to action in the Bloomingdale’s window: Descriptions of the window designs are as follows: Bloomingdale’s Interior Design: This New York City apartment-inspired space is inhabited by a sophisticated travel magazine editor who collects objects from around the world. The room has an early 1960’s sensibility, combining modern furnishings with a grass cloth wall covering and appliqué fabric as the window treatment. It’s a mix of primitive, Asian, folk art and vintage photography in an urban environment—all anchored by a custom-patterned area rug. The Bloomingdale’s room will include pieces from Mitchell Gold + Bob Williams, Thayer Coggin, and Artistica. Apartment Therapy’s Maxwell Gillingham-Ryan: The Writer’s Library, inspired by Maxwell’s friend, Amor, is a dark, bookish den in which a romantic dinner has been surprisingly set for a female guest. The room is piled high with books and features items that may have come from far off travels. The side walls are painted faux bookcases for this display and inspired by the Studiolo at the MET. The room decor centers on the large, leather Ralph Lauren chair, the memorable Neisha Crosland wallpaper and Michele Varian’s funky, steampunk style. Eddie Ross for Elle Decor: The space, designed for a media mogul and mother of two, shimmers with a mix of classic and modern, new and old, together with a balance of bold patterns and vibrant colors. A spatter-paint print, like stars in an endless sky, reflects the owner’s love of travel to wide-open spaces, and her passion for sparkling evenings at home entertaining friends and family. Ross will feature pieces from Bernhardt, D.I.A., and Allan Copley. Bloomingdale’s shoppers and home design enthusiasts alike are invited to attend a special meet-and-greet with the three designers on Thursday, Jan. 28 at 6:00 p.m. Guests will be able to interact with the designers and celebrate the windows on the Bloomingdale’s 59th Street furniture floor. “It’s amazing seeing people stop and asses each window with their cell phone in hand and text in their choice,” said Freddy Ferbert, director of business development at Kaooga, Newton, MA. “I really believe it is how they want to communicate and the number of responses has been great.  “It adds new dimension to a formally static interaction between a store and its customers,” he said. “It has been a wonderful application for this very cost effective texting platform.”

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Bloomingdale’s makes store window interactive with mobile