A recent survey by Experian Simmons gives new insight into consumer acceptance and usage of mobile coupons. Since 2005, when only 12 percent of the population used digital coupons, that number has nearly doubled. Twenty-two percent of the U.S. population is currently using digital coupons, almost a quarter of the total U.S. population.
In comparison, the usage of print coupons remains consistent. In the survey, 99 percent of participants who used digital coupons also used print coupons, while 35 percent of participants who used print coupons also used digital coupons. This is an interesting statistic and means that people who use digital coupons are much more open to a variety of forms of coupons. In addition, “digital coupon users also used them [mobile coupons] for a wider variety of purchases and at a greater variety of stores than those who used only print coupons”, reports MediaPost News.
This gives insight in determining the “profile” of a mobile coupons user. While they are not picky in regards to the form a coupon takes, the deal that it offers is paramount. The study also shows that people who use digital coupons are more frequent coupon users in general, meaning that they are open and willing to not only receive coupons on their mobile phone, but have also shown that they will use them.
As mobile coupons continue to rise in usage, it’s important to include a text message marketing component into your advertising campaign in order reach this 22 percent of the U.S. population that is looking for a good deal via their mobile device.
With the holiday season around the corner and the economy making weak improvements at best, retailers are on the lookout for effective ways to get their customers into stores at the lowest cost. Marketing professionals are likely Googling for new marketing ideas in order to meet the demands of the business and consumers alike. Two of the most talked about marketing mediums today are geosocial networking and mobile coupons. We’ve heard our customers question the effectiveness of both and want to provide some facts on which is more effective in reaching the end consumer.
First of all, lets clarify what “geosocial” networking is. Companies such as Foursquare and Gowalla are offering individuals the ability to notify an entire network of friends and family of his or her location. The benefit to retailers here would be that one consumer could notify others of their location and perhaps also relay information about current promotions or specials. Currently 4 percent of the US population is actually using this social location tool, and on any given day, only 1 percent of the population is actually logged in to this social tool, according to Forrester Research.
This week, InsightExpress reported very encouraging news regarding consumers and mobile coupons. When the research company asked consumers whether they had made a special trip into a store after receiving a mobile coupon, 10 percent of consumers said yes. For the age range of 18-24, that percentage jumped to 20 percent.
Motivating your consumers to change all of their plans in order to come into your store is no easy task. Mobile coupons offer a truly unique and simple way to affect your consumer’s behavior in such an instantaneous way. Forty-five percent of consumers said that they prefer for mobile coupons to be sent to them, giving the store owner the control of which items should be offered.
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.
According to a recent study conducted by Juniper Research, mobile coupons are set to generate $6 billion in global redemption value by 2014. This is due to the fact that redemption rates for mobile coupons often exceed 50 percent, whereas paper coupons will typically only produce a 0.2-2 percent redemption rate (Exposure2) – an astronomical difference!
Besides the fact that mobile coupons are green and environmentally friendly, they also save printing costs and encourage impulse purchases. No other technology delivers a coupon right into the hands of your target market while they’re in a store, already shopping. Mobile coupons are viral; they can be easily forwarded to friends, meaning that if your customers are shopping in a group, the likelihood of that message being passed along is high and expands your brand’s reach at no additional cost.
The CRM opportunity created by mobile coupons results in a substancial benefit when compared to paper coupons. When your customers text in to join your list, you are not only obtaining their phone number, but also an opportunity for two-way communication. This allows you to text your customer, asking for demographic information or sub categorize your list into specific interest groups, per person. For example, if you’re a retailer, you can establish separate lists for customers that prefer jeans, shirts or dresses, enabling you to tailor more targeted messages.
Consider creating a loyalty rewards program for customers that redeem your coupons to generate brand loyalty around your campaign. By simply integrating your CRM system to Opt It’s API, keep track of who and where your customers redeem your offers. You’ll also establish a more detailed profile of what your customers needs are to aid in targeting initiatives. This is the perfect opportunity to reward your brand insistent purchasers.
Another benefit of mobile coupons is the ability to communicate almost instantly with your customers. Use mobile messages to send out new product launches, industry news, etc. Utilize this communication channel to ask your customers what kind of coupons they would like to receive!
Altogether, mobile coupons offer you an unprecedented communication opportunity; not only can you send instantaneous coupons, but also integrate your coupons with your CRM system, create a loyalty rewards program, and communicate quicker than ever before. In addition, you’ll be getting green and helping the environment by ditching paper coupons.- Try it for yourself!