It Costs $450 In Marketing To Make Someone Buy a $49 Nokia Lumia

[RallosZek]

Every Windows phone Nokia sold in the US has been backed by a $450 slice of AT&T marketing cash, it's estimated.

The mobile network threw its weight behind the handset maker's comeback device, the Lumia 900, with its biggest-ever advertising blitz for a phone: $150m, according to Ad Age. Nokia also spent $25m on Lumias for AT&T employees.


Do Windows Mobile users really love their phones?

Nokia is entitled to point to excellent customer satisfaction ratings from Lumia owners. 93 per cent of Lumia 900 owners say they would recommend them to their friends and 85 per cent would make a repeat purchase, according to Nielsen. But there may be other explanations for this: the fanatical tribal brand loyalty exhibited when choosing an "outsider" brand, for example. Less charitably called Stockholm syndrome.

[cyberstoic]

I am reasonably sure I don't have Stockholm Syndrome, LOL. I do however, love my WP7 phone, as does my wife and kids. It is easy to use, ultra stable, integrates my calendar and other useful appointment scheduling, and I like the info I get from the live tiles at a glance. Amazing about the advertising costs though.

[Big Ang]

I'm not that surprised. I think anything less than a massive push would have been pointless - many people choose Android, iPhone, or Blackberry just because that's what they see everyone else using, and is therefore a safe choice.

I can't remember if it was a Microsoft or Nokia marketing initiative called "Rolling Thunder" to aggressively introduce Windows Phone to everyone in 2012.

Anyone remember Verizon's big push with 'Droid' when they started selling Android? It worked big time with a lot of people wanting a 'Droid' cause it was cool.

Shoving Lumias into the hands of the salespeople is a must. So many people buy a phone because "the salesperson said it was the best" (I'm sure the overwhelming majority of BB Pearls were sold because of that). Even when you walk into a store asking for a specific phone the salesperson tends to recommend the phone that they (A) are told to push this week or, less likely (B) recommend their favourite phone. The salesperson at the cellphone kiosk has an ungodly influence over the average, non-HoFo-reading cellphone buyer.

Of course having a cool looking and unique phone like the Lumia 800 and 900 that stand out from the crowd a mile away work wonders too. Similarly how the white earbuds works with the iPod - you didn't have to see their tiny mp3 player, but the white earbuds stood out and you knew it was an iPod.

It's a struggle to get the first 10% of the market share. After that things get easier, because by that time everyone knows at least one person with your product, and that makes your purchase a lot easier.

[migo]

Actually, the Pearl is still my favorite BB form factor.

$450 in Marketing id probably split up between Nokia and AT&T, in which case they're both still making money in the end.
Sent from my Lumia 710 via the HowardForums WP7 App