Mobile Coupons Improve Lift & Customer Satisfaction
Written By: Dan Slavin, CodeBroker
Due to consumer’s continued appetite for discounts, coupon usage numbers significantly increased in the US. eMarketer revised their estimate to almost 103 million people, or 11%, of consumers who redeemed a mobile coupon in 2013, up from an earlier, more conservative prediction of 4.6%. Good news for retailers who use coupons in ongoing marketing promotions as the trend is expected to continue. By 2015, eMarketer estimates over 118 million people will use mobile coupons to purchase a product either online or at a brick and mortar location.
It is widely recognized that mobile coupons have a far greater redemption rate than print coupons – up to 10% for push and 40% or more for on-demand compared to 1% redemption for paper coupons. In a recent survey by RetailMeNot and Omnibus, over half of the respondents said they would be more likely to visit a physical store and purchase a product if given a mobile coupon. As evidenced by this past holiday shopping season, heavy discounts were the norm for drawing consumers to stores. Unfortunately, retailers who focused solely on promotions did not fare as well as those retailers who, in addition to promotions, were attentive to the customer shopping experience.
So, how do retailers use promotions to bring more customers into their stores and improve lift as well as the customer experience? Through personalization. CodeBroker predicts personalizing the customer’s mobile experience will become a priority for many retailers in 2014. Two ways retailers can impact the bottom line through personalization:
- Show the customer that you care – Results from the same survey found 63% of respondents would be more likely to purchase a product if the mobile coupon was made available while in-store, illustrating the impact mobile coupons have when delivered in concert with location. Other ways to personalize coupon delivery include adding customer data such as a first name or referencing past shopping experiences when directing a consumer to a new item. Most important is to provide a means to have a dialog with your customer. Create a way to engage with customers, whether it be through an app, a game, or promotion. Retailers who create engaging experiences for their customers are ten times more likely to keep those customers shopping in their stores.
- Uniform experience across devices – According to an Accenture report, almost half of all consumers agree retailers need to integrate their in-store, mobile and desktop shopping experiences. Everyone has been talking the multi-channel talk but few retailers have figured out how to engage successfully in more than one channel. A 2013 report by Kontangent found the majority of retailers struggle to provide a uniform experience across platforms while at the same time, 90% believe mobile coupons are the key to personalization and customer retention. As retailers expand their reach in 2014, a key component of multi-channel should be personalization. Let your customers decide when and which channels they would like to receive mobile coupons and notifications. A uniform experience across platforms will keep a customer engaged for more than the ten to twenty seconds they typically spend on a site before moving on.
2014 will be the year retailers begin to focus on the customer experience providing mobile coupons to those customers who prove loyal to a brand. At the same time, retailers will design a more engaging experience for customers through personalization across multiple channels. All of these investments designed to bring the customer into a deeper and more meaningful relationship with the retailer as well as improve lift and basket size.