The pizza company with the garlic dipping sauce is in a bit
of trouble for some activity related to mobile marketing. Papa John’s is facing
a $250 million lawsuit for sending out over 500,000 SMS text messages in early
2010. The company is arguing that the texts were sent through a third party and
the company is not responsible. The customers are arguing that Papa John’s sent
them sometimes up to 15-16 messages at a time, sometimes in the middle of the
night. The allegations are having a real effect – since the plaintiffs were
permitted to team up, shares of PZZA have fallen by 2%.
A recent article in Forbes covered the story and gave some
tips for marketers who want to use mobile to communicate with customers,
summarized below:
- Design & build a mobile experience. So, it’s not just about a one-off text, but engaging with the customer on their terms and when it makes sense for them.
- Ask for permission, confirm and approve. Enough said.
- Grow engagement & conversion. Be uber targeted about your interaction when you decide to use mobile; aggregate CRM, opt-in survey information, and any other insights you may have about the customer.
- Timing is everything. Probably not a text about pizza specials in the middle of the night?
- Make technology your friend and build a dialog/create loyalty. Think about your strategy, then the technology.
See the full article here: http://www.forbes.com/sites/marketshare/2012/11/27/what-mobile-marketers-can-learn-from-the-papa-johns-lawsuit/
-Rebecca Canan
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