IBM Buys Xtify in Mobile Commerce Play

Big Blue is pushing deeper into the cloud-based mobile messaging space. IBM has acquired Xtify, a mobile messaging tools provider that helps enterprises improve mobile sales, drive in-store traffic and engage customers with personalized offers. Financial terms were disclosed.

Xtify lets digital marketers create content-rich, in-app mobile messaging and push notifications to spur mobile application usage. Mobile applications can increase in-store traffic and improve mobile sales while fostering brand loyalty.

"With the increase of mobile devices, organizations across all industries are anxious to develop a mobile approach to engage their customers," said Kevin Bishop, IBM vice president for digital marketing. "The acquisition of Xtify provides new ways for our clients to foster a direct, one-to-one communication channel with their customers."

The Mobile Opportunity

As IBM sees it, mobile communication channels are completely transforming the way that organizations interact with their customers. Consumers expect personalized messages and promotional offers based on expressed interests and shopping and browsing habits.

With the Xtify acquisition, IBM aims to give marketers a new opportunity for client engagement anytime, anywhere, as consumers traverse across multiple digital channels, browsing in stores, shopping on mobile Web sites or other online channels.

IBM did its homework and offered research from Gartner to further prove out its reasoning for the acquisition. The market research firm predicts that worldwide mobile payment transaction values will reach $235.4 billion in 2013, a 44 percent increase from 2012. These increases will continue at a 35 percent annual growth rate culminating in a $721 billion market with 450 million users by 2017.

WhatEUs more, a new IBM Institute for Business Value study confirms that leading organizations have seen clear benefits in their mobile investments to date: 73 percent have experienced measurable results from their mobile initiatives versus 34 percent of all other companies in the study. Further, 81 percent stated that...

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