Is Mobile Marketing Saving Christmas Sales?

Originally Published: December 2008

Traditionally Christmas has been a lucrative sales period. It allowed high profit margins because customers had to buy presents for their family and friends. In recent years this has all changed. Driven by discounting, Christmas is now a grab for short-term growth.

This year under unique economic circumstances no one is sure what to expect. There is ‘blind hope’ among some retailers that Christmas will give people a reason to pull out their wallets. Given last years growth (UK: +1.4%; US: +1.7%) this is unlikely.

Scattered throughout these ‘hopeful’ retailers are businesses that are taking action by investing in mobile marketing. They are using this platform to make it easier for people to shop their stores (online and offline). In return they expect a higher share of wallet and greater brand loyalty.

The perceptions of mobile marketing have changed overnight in the US. As retailers like Wal-Mart, Target (US), Sears and Amazon choose to leverage the platform and connect directly with customers during the Christmas period. Born from the realization that one of the hardest parts about Christmas is finding the right gift (at the right price), these retailers have created their own mobile tools to empower the customer. For example, Wal-Mart is currently using a text-messaging service where customers can receive information about store categories they are interested in. After signing-up customers receive weekly ‘Holiday Special’ alerts on the chosen category. These messages are linked to Wal-Marts mobile website which allows the customer to find additional information (as well as customer reviews). Another example is Amazon, who created an iPhone application that lets customers find the gift they want. Using their iPhone, customers can send a photograph of a product to Amazon and they will find if they have the item in stock and its price. All stock can be ordered through the mobile portal (unfortunately this is only available in the US).