Mobile marketing has become an integral element in every leading brand’s success story. A large number of businesses are recognizing the quintessential smart phone as an effective marketing medium that can be leveraged to engage with customers.
A specifically popular mobile marketing channel that is being currently explored is that of mobile couponing. This tool offers significant potential to deliver high ROI especially when compared with conventional paper-based coupons.
Growth of Mobile Couponing
It is believed that this year alone will see a global generation of USD 6 billion worth of redemptions through mobile coupons. Other studies suggest that mobile coupon redemption rates go as high as 50% while conventional paper coupons offer a rate of 0.2 to 2%.
With the help of smart mobile coupon strategies, businesses are able to deliver digital discounts and offers right onto the mobile phones of their target customers. In addition to this, there are a number of other advantages they offer that facilitate higher redemption rates, enhanced security and encouragement of impulse buys.
Mobile based coupons act as impressive customer acquisition tools that complement traditional marketing initiatives and allow recipients to facilitate viral campaign by way of forwarding coupons to friends and family. With the right mobile coupon strategy, brands have been able to develop a sense of loyalty and develop brand engagement through rewards and loyalty programs.
For instance, Procter & Gamble was able to effectively use mobile couponing as a strategy to encourage customers to visit stores for a free sample of their new Olay Total Effects product. The campaign ran for over 3 months at 12 malls and engaged with 27,000 mobile users; 27% of which engaged with the sales personnel for offer redemption.
Engaging the Right Promotion at the Right Time
A recent Nielsen Report suggests that the penetration of smart phones in the market is as high as 61% and rising. This is a market a brand can certainly not afford to ignore. Furthermore, most retailers today are able to leverage technology to accumulate the wealth of customer data. However, they tend to be falling behind when it comes to personalize promotions.
Mobile couponing allows brands to deliver the highest return on their investment by making it possible to disseminate the right promotion at the right time at the place to the right person. Considering the fact that a smart phone goes where the consumer goes, a shopper’s journey can begin anywhere – at home, while getting into a mall or even at work.
Mobile couponing can help improve their average cart size as well as overall conversion rates by 15 to 30% if executed well. With personalized and valuable offerings, mobile couponing can essentially transform your bottom line in a jiffy!