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Category Archives: consumer behavior

In last year’s Harris Interactive report, the demographic most likely to show interest in receiving a mobile coupon was young, affluent males. Within one year, this has changed dramatically. The same study conducted in 2010 indicates that parents with younger children are the new demographic most highly interested in mobile coupons.

Adults with younger children versus adults with older kids showed varying interest levels. The most interested category of respondents was parents with children 6 or younger, with 35 percent voting “somewhat interested in receiving text alerts with coupons”. This is the same group most likely to clip and redeem paper coupons, so it makes sense that they enjoy the convenience of having a digital coupon as well. Households with older kids were close behind, with 32 percent of respondents indicating interest. Households with no children responded with a 25 percent interest level in getting opt-in text coupons, most likely due to having a larger amount of available income with no children to support.

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New reports from the Pew Hispanic Center indicate significant differences between native-born and foreign-born Latinos and their technological usage. The largest difference was found in text messaging, with 83 percent of native-born Latinos, ages 16 to 25, using text messaging as their primary communication method, while only 56 percent of foreign-born Latinos claimed to do the same.

This technological divide extends to all forms of communication, from talking on the phone, to Internet and email usage. The explanation for the difference is unknown, but researchers speculate that language barriers, a small social network and the inability to afford an extensive cell phone plan, all contribute to the differences seen.

Young Hispanics influence their parents buying decisions as they are often the family translator and more technologically proficient when it comes to comparing prices and doing product reviews. If your customer base include some portion of the Hispanic population, knowing that 16 to 25 year olds influence family decisions helps you align marketing efforts to target an influential younger generation. In addition, taking your clientele into consideration and understanding that there are key differences between native-born and foreign-born Latinos can help you zero in on the most targeted marketing approach. With 83 percent of native-born Latinos using text messages to communicate, it’s a safe bet that reaching them through text message marketing is the way to go.

It’s a common practice for folks to take their mobile phone along anytime they go shopping. A recent study conducted by InsightExpress reports that 4 out of 5 people reported using their mobile phone during shopping trips. However, who are these “people”? And what exactly is meant by “using their mobile phone while shopping”? (Many of us might be imagining a man in the milk aisle, calling his wife to ask whether she prefers 2% or skim.)

The truth is, that stereotype no longer exists. Men ages 25-34 are now looking at their phone to browse coupons that have been sent to them, and they’re doing this more than any other group of consumers. Here are percentages of men, compared to the general population, that used a mobile coupon last month, by location:

  • Electronics store – 30 percent (general population 10 percent)
  • Clothing store – 33 percent (general population 15 percent)
  • Department store – 30 percent (general population 15 percent)
  • Service location – 16 percent (general population 7 percent)

male with cell phone

According to a recent article by Dan Butcher titled “Who is today’s mobile shopper – and why it’s not her”,10 percent of consumers made a special trip to the store after receiving a mobile coupon and for 18-34 year olds, the figure jumps to 20 percent. Since a younger generation’s actions typically predict future trends, this is likely an indicator that the acceptance of mobile coupons by the general population has already begun.

These figures show the evolution of consumer buying behavior, something that marketers need to understand in order to properly communicate with their audience.

Even in a world of constantly changing consumer behavior, a few things do remain consistent: people are always looking for a deal and shopping is still a social function. So how can you tie the knowledge of these constants into your mobile coupons?

Providing your customers with mobile coupons makes finding a bargain even easier, a conveniance they’re sure to appreciate. The social aspect of shopping may mean your customer is shopping with a group with whom they might share your coupon, stretching your brand’s reach far beyond your customer base.

The bottom line is this: if you want to convince your customers it’s time to check out your latest offerings, especially males and the younger population, send them a mobile coupon.

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.