NEW YORK, NY, Oct 7, 2014 - (ACN Newswire) - Chief Marketing Officers (CMOs) today have the opportunity to really impact their business and engage customers with mobile applications, according to Jonathan Tarud, Chief Executive Officer, and Nicolas Costa, Director of Sales, Latin America, at Koombea. However, it is critical that CMOs adopt a long-term view. "People download an app and look at it for two minutes. If it does not provide enough value to them, they just discard it. For a company's brand and reputation, having a poorly designed mobile app can do more harm than good," Tarud believes.
Koombea is a digital design and development agency at the marcus evans Latin CMO Summit 2014, taking place in Panama City, Panama, October 30-31.
- Why do you consider mobile apps as "not just codes but the business and brand wrapped together"? What do CMOs need to do?
Tarud - Many companies approach apps as something they just need to have. They design and create really simple micro apps that do not add value to the end customer. Mobile affects core businesses in ways that most people cannot even imagine. There is a huge opportunity for disruption in this space. If large companies are not willing to invest in better serving their customers, in ways that take advantage of location and always-on for example, they will be disrupted by new start-ups. They have to think about their business as a whole regardless of the product or service they offer. There is always a way to use the mobile space to add value. In the long-term, a good mobile solution can be a competitive advantage.
- What real ROI can good apps bring to the table? How can companies monetize apps?
Tarud - The standards on usability, design and experience are continuously being raised, as a result of the evolution of app design on modern OS like iOS and Android, and consumer facing apps like Facebook, Twitter, and so on. People now know good apps are possible and they can tell the difference between good and bad ones. Many times apps are just the watered down version of a company's service, lacking certain features and tools. CMOs must keep in mind that this is where most customers will be in five years, as all phones become smartphones, and as a result the primary channel for direct engagement with customers.
Costa - An airline company cannot do with a mobile app where customers can just buy a ticket, but not change a flight. The way companies can monetize the mobile space is not just by getting more dollars, but by reducing the cost of existing processes and operations. All the services and capabilities need to be available to this text message generation of users who do not want to call in. The app must be the front and center operation, where people can interact with the brand in ways that have not been done before, because they are more personal. This will make a big impact on how people perceive brands. Also, companies that sell products through retailers can now interact with their customers directly.
- How should CMOs approach app development and incorporate it into the marketing mix?
Tarud - They should not think of this as just another marketing campaign. Releasing a mobile app is only the beginning! It is not a one-month marketing initiative. CMOs need to discover what customers need and there are hundreds of things to consider. Working with an agency that has experience rolling out apps will be key to driving success. What are people trying to achieve with the app? What drives them to even download it?
Costa - If the app does not add value, people will see through it. There must be buy-in from the entire company to do this right. The company's credibility is at stake, so management must think beyond the next quarter numbers.
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