Mobile Couponing: Redemption Rates Soar for Retailers

Mobile couponing helps retailers drive incremental revenue. 

CodeBroker, developer of the award-winning mobile coupon marketing platform, today revealed its customers are seeing redemption rates for mobile coupons that far exceed industry averages, some as high as 50 percent.

A recent customer study showed CodeBroker’s mobile couponing solution resulted in significantly improved redemption rates and ROI. The study also showed that coupons by test message are highly effective in increasing the redemption rates.

The report findings are based on an in-depth analysis of hundreds of CodeBroker retail customer mobile couponing promotions and more than 7 years of experience working exclusively with retailers. The white paper based on the study details mobile coupon redemption rates by distribution channel, the results of a CodeBroker retail customer A/B comparison campaign, and a number of unprecedented key findings. The included case study highlights one CodeBroker customer that realized nearly $14 million in incremental revenue from a 12-week campaign, using CodeBroker’s unique coupon delivery and security model.

Sample Key Findings

  • On-demand offer redemption rates for mobile coupon promos averaged between 30% and 50%.
  • Retailers who combined email with promotion text messages saw redemption rates of between 15% and 25%, substantially higher than email-only offers.
  • Smartphone app users are highly engaged and redeem coupons at average redemption rates of 8-10 percent.
  • SMS subscribers are highly engaged and redeem coupons by text message at rates substantially above typical print and email rates – between 3% and 10%.

“These comprehensive redemption and ROI results are based on several years’ experience with a wide range of retail chains in terms of size and category, and include some of the top retailers in the country,” said Dan Slavin, CodeBroker founder and CEO. “Our retailers have found that mobile coupons deliver significant payback if they implement thoughtful mobile coupon strategies.”