A recent article for ClickZ talked about the rise in popularity of all sorts of coupons, especially those of the mobile variety. A new report from Borrell Associates says that the trend will likely continue on all mobile devices as cell phones become the premier platform for delivering customer discounts.
As stated in the article, mobile coupon spending in the U.S. is expected to rise from $90 million in 2009 to $6.53 billion in 2014, according to the 2010 U.S. Local Mobile Advertising and Promotions Forecast. This astonishing growth is likely due to phones becoming better equipped to deliver coupons and apps, and because of the proximity of cell phones to the end-user.
One important item to note from the Borrell study is that the redeemed value of mobile coupons is 24 percent higher than Internet coupons and almost half as high as paper ones, presumably because the majority of mobile coupon recipients have “opted-in”. Developing a customer list of opted-in members and reaching out to loyal customers with Opt It Mobile gives your business a great advantage against tough competition.
In the ClickZ article, Gordon Borrell, CEO of Borrell Associates, urges readers not to be enticed by fancy media-rich apps, but to instead focus on texting inexpensive coupons to loyal customers. The low cost of mobile marketing via SMS is much more likely to have a positive effect on ROI.