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Retailers should seriously try mobile marketing

It's no secret that retailers have been dealt a blow in the solar plexus with a weak economy. Why don't they give mobile marketing a shot to get consumers spending again?

Almost every sector of retail has been affected by the current economic downtown -- apparel and home furnishings among the hardest hit -- and crises in the housing and financial markets are no help in restoring consumer confidence.

Still, a case can be made to try an emerging marketing channel that has the potential to drive consumers and customers into stores. We're talking mobile, and here are some ideas.

First, tackle the issue of building an opted-in database of consumers.

Apparel retail chains such as Gap and J. Crew are experts at collecting email addresses from consumers who have just bought at the store. Their sales staff also encourages customers to sign up for store-branded credit cards. In both cases, these actions can result either in early-bird deals or discounts for customers.

So why not try the same exercise with mobile?

Retailers should ask consumers to text in their mobile numbers to a short code to receive news of new product arrivals, coupons, discounts and events. The short codes should be publicized across all retail channels, just like the retail Web site address is.

Also, train the sales staff to have customers punch in their mobile phone numbers into a device at the checkout counter. They must make it very clear that the number will be used to send occasional text messages on discounts, coupons, new products, events and promotions.

Another thing: make sure the database is all opted-in through a confirming message sent to the mobile number soon after the sign-up -- while the customer is standing there at the checkout counter. This also takes care of dud phone numbers.

With this step done, retailers must take the next: instilling additional confidence in consumers who have parted with their mobile numbers that they will not be bombarded with telemarketing calls or annoying messages.

In fact, direct the opted-in consumers to a privacy policy on the Web or even send a 160-character promise since that's the word-limit for SMS text messages. Make it easy for them to opt-out by sending a text to the same short code, saying Unsubscribe. Again, mention this in the privacy policy.

You can't be careful enough with this measure. There's nothing more personal than a mobile phone. And there's nothing more annoying than paying for text messages or calls that are not either personal or directly work-related.

So, retail store staff must be trained to explain that the text messages will be sent, say, only twice a month or so and for the purposes of keeping valued customers informed of deals, coupons, new products and events.

Third, retailers should buy memorable and easy-to-remember short codes and then run them on the covers and inside pages of their catalogs and on the Web site.

The short codes should also appear on posters, newspaper and magazine ads, in-store signage, store circulars, flyers, inserts and direct mail pieces as well as in emails and plugged on television commercials and radio ads. Don't forget to mention the Web address, of course.

Finally, retailers should follow best practices. Check the Mobile Marketing Association's guidelines and work with trusted mobile marketing service providers who have expertise in their area, particularly those dealing with retail chains and quick-service restaurants (see opinion piece).

With short codes and text-led retail, retailers open a new customer acquisition and retention channel. Not only will such text messages encourage repeat visits, they may also spur impulse buys.

Franchisees of restaurant chains such as McDonald's Corp. (see story) and Subway (see story) as well as hair salons such as Supercuts (see story) are already using mobile coupons to boost foot traffic to stores and encourage sampling of new products.

Make the sure the text messages are to-the-point, state the benefit upfront and yet evoke some excitement. Don't abuse the privilege -- yes, it is a privilege when it comes to mobile -- and don't inundate the consumer with text after text. For some, parting with the mobile number is as hard as parting with money.