Businesses are spending millions on engaging customers through their mobile phones, according to research from IT services provider Tata Consultancy Services.
Tata Consultancy Services (TCS) said the trend is set to grow over the next three years.
TCS also revealed European businesses spend a larger proportion of revenues on strategies to target customers through smartphones than companies in the US. But the Asia-Pacific region is the highest spender.
TCS said that, in Europe, organisations spend $1.59m per $1bn in revenue in 2012, compared to $2.41m in Asia Pacific and $1.63m in Latin America. North America lags behind with $1.43m spent per $1bn.
But by 2015 North America will outstrip Europe with $1.98m spent per $1bn compared to $1.76m in Europe. Asia Pacific will continue to spend the highest proportion of revenue on mobile strategies, at $2.85m per $1bn. Latin America will make a substantial leap, to $2.72m per $1bn.
Business strategies to target mobile users
- Tesco launched a smartphone-friendly virtual supermarket online shopping system at Gatwick airport to enable travellers to place an order before they fly. While waiting for their flights, users can use their smartphones to scan items displayed on 10 screens in airport's departure lounge, to order a delivery for shortly after they return home.
- Energy supplier EDF has made an app that enables customers to submit meter readings by using the camera on a smartphone. Customers can take a snap of their electricity and gas meters and send it directly to EDF, which will automatically update their account.
- Baring Asset Management has released an app for Apple, Android and Blackberry devices to give investors the latest fund prices, detailed fund information and access to its latest investment views and fund manager interviews.
The New Digital Mobile Consumer: How Large Companies are Responding study said the average company ($11.2bn revenue) will spend between $13m and $22m to market, sell and service digital mobile consumers through their mobile devices in 2012. By 2015, investment levels will rise to between $22m and $26m annually.
“The digital consumer is an exciting and complex customer segment that global corporations have to understand and engage with,” said TCS CEO N. Chandrasekaran.
"These consumers are diverse in their need, their interactions are flexible and often conducted ‘in motion’.
"Keeping their attention means being able to serve their dynamic needs by leveraging the power of digital and mobile technologies to engage with them.”
The TCS study revealed businesses are taking mobile consumers seriously. It found 82% of firms classed as mobile leaders said they have made the digital mobile consumer a unique market segment and 85% of these firms created a new product and service offering for digital mobile consumer.