Mobile Coupon Marketing Helps Retailers Drive Incremental Revenue
Mobile coupons help retailers drive increased revenue and customer engagement according to recent findings. CodeBroker’s in-depth analysis of our retail customer’s mobile coupon marketing promotions and associated redemption rates show significant payback to retailers who implement a thoughtful mobile coupon marketing strategy.
Specifically, CodeBroker observed that a successful mobile coupon marketing strategy is dependent on several factors. Namely, the value of the mobile coupons, 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 Mobile Coupons.
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, rich mobile coupons could seriously impact a retailer’s bottom line. Implementing true single-use coupons will mitigate coupon liability concerns. Single-use coupons guarantee that mobile coupons are used once and only once. In addition, regardless of the number of times a consumer requests to receive the mobile coupon, they will receive the same offer.
Consumer Engagement.
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 mobile coupons for women’s shoes to your female customers or mobile coupons for 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%.
Delivery Channel.
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 marketing campaign.
- Coupon fraud minimized with single-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 single-usecoupons 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 Mobile Coupon Marketing Platform as an integral part of their marketing efforts to execute successful mobile coupon marketing campaigns enabling an enriched customer experience, enhanced brand loyalty and improved lift.