Drive Increased Revenue for Retailers with Mobile Coupons
Based on recent findings, there is no doubt that mobile coupons drive increased revenue and customer engagement for retailers. CodeBroker’s in-depth analysis of our retail customer’s mobile coupon promotions and associated redemption rates show significant payback to retailers who implement a thoughtful mobile coupon strategy.
Specifically, CodeBroker observed that a successful mobile strategy is dependent on several factors. Namely, the value of the offer, the level of consumer engagement with the brand, the sense of urgency the retailer creates with the promotion, and the mobile coupon delivery channel all play a role in the level of ROI the retailer realizes.
Value of the Offer.
Not surprisingly, consumers respond enthusiastically to rich rewards. In fact, 83% of consumers make an unplanned purchase because of a coupon (NCH Marketing Services). Retailers intent on using generous mobile coupons (e.g., 20% off an item) need to have the ability to manage offer accessibility. Without the necessary controls, a rich coupon could seriously impact a retailer’s bottom line. Implementing true one-time-use mobile coupons will mitigate coupon liability concerns. A single-use coupon guarantees the offer is used once and only once. In addition, regardless of the number of times a consumer requests to receive the coupon, they will receive the same offer.
CodeBroker observed that a retailer’s most engaged customers contribute most heavily to the bottom line. Increasing customer engagement can be accomplished many ways, such as through a retailer’s mobile app, offers and personalization to name a few. As a retailer, being able to provide coupons for women’s shoes to your female customers or men’s slacks to your male customers creates a much improved brand experience.
Sense of Urgency.
One of the more interesting findings was the effect of creating a sense of urgency among a retailer’s most engaged customers. By leveraging more than one channel when communicating with customers and incorporating reminder messages, our retail customers realized an increase in redemption rates between 300-500%.
Sending mobile coupons to consumers in multiple channels has a significant impact on redemption rates. Mobile delivery channels CodeBroker analyzed included smartphone-app, SMS / mobile web, and mobile email. The greatest success occurred when retailers use more than one channel in a single promotion (e.g., email plus SMS/Passbook) to distribute offers.
Using the CodeBroker Platform, CodeBroker retail customers realize:
- Significant incremental revenue and gross margin directly attributed to the mobile coupon campaign.
- Coupon fraud minimized with one-time use coupons.
- The ability to track campaign results in real-time.
- A meaningful increase in customer engagement when customers are reminded to use their expiring mobile coupons.
In addition to driving increased revenue, the use of CodeBroker’s one-time-use mobile coupons surpassed retailer’s ROI expectations allowing them to make additional investments to improve customer engagement and lifetime value. Retail chains with thousands of locations in the U.S. are using the CodeBroker Platform as an integral part of their marketing efforts to execute successful mobile marketing campaigns enabling an enriched customer experience, enhanced brand loyalty and improved lift.