Mobile Coupons Redeemed To Exceed $10 Billion This Year
The days of cutting coupons from newspapers seem to be behind us. U.S. researchers say
that the number of discount coupons that were redeemed by users using their mobiles and other devices, will cross $10 billion this year. That is an increase of more than 50% over 2012.
The research conducted by Juniper Research should clearly indicate to the marketing community and retailers that coupons for mobile devices are here to stay. The use of these coupons is very clearly on the rise, and statistics prove it.
More and more retailers now understand that the old way of doing business by offering coupons in magazines and newspapers is quite dead. If you’re not offering customers your discounts and coupons on smartphones, tablets and other mobile devices, you’re clearly missing out on targeting large volumes of customers.
As the folks at Juniper Research put it, mobile marketing allows customers not just a chance to visit your e-store, but also to make purchases, and pay for them using a smartphone. Brand loyalty is being built, and satisfaction is being gauged, helping these retailers retain old customers, and attract new customers.
Another interesting finding that emerged from the Juniper Research study is that mobile coupons have a much higher redemption rate, compared to traditional print coupons. The overall volumes of coupons were much lower in the case of mobile coupons, but the redemption rates were much higher at 10%, compared to traditional print media and PC coupons. In the case of these traditional coupons, the redemption rate was just 1% or less. Part of the reason for this is that retailers can personalize mobile coupons, and target specific individuals, so that they are more appealing, and touch a chord with every individual user.
The data proves the mobile marketing message – you don’t just target customers. You target customers who are very likely to be attracted to your product or service, and actually buy it. That isn’t the case with traditional media where you target a whole community of people, without really gauging their interest in your product, or affecting their ability or inclination to buy your product or service. Targeting of potential customers is higher, sharper and more precise with mobile marketing.
The Juniper Research also threw up some interesting new trends in mobile coupons. For instance, customers are much more likely to hold onto their mobile coupons, and store them, using them later and paying for them using their mobile wallets instead of using it immediately after issue. With mobile wallets so easily available, and so popular nowadays, it becomes even easier for consumers to store their mobile coupons, and use them later, using digital payment methods, without any hassle.
Simply put, mobile coupons are very easy, to use, because a person doesn’t have to store them anywhere. The message for customers is this – you can breathe easy, because you will never miss out on these coupons if you are connected to your favorite retailers on mobile.
The lesson for retailers is this – if you want higher conversion rates, greater engagement with customers, stronger brand loyalty and enhanced customer experiences (and who doesn’t), you have to switch to mobile ways of doing business.