Retailers are seizing on the use of single-use coupons, and moving away from using generic promo codes due to the fact that these “coupons” are really unlimited offers that customers can reuse, to the detriment of retailers.
There are several benefits of using single-use mobile coupons:
- Improve the marketing department’s personalization efforts.
- Eliminate coupons and offers from going viral.
- Enable A/B offer testing to identify (versus guess) which offers drive the best returns.
- Attribution of redemptions to individuals and segments.
- Customers prefer single-use coupons with a high-value offer (see the research).
To provide true single-use mobile coupons, there needs to be an integrated security model that ensures:
- The customer always receives the same mobile coupon regardless of the number of times and channels in which she requests the coupon.
- The coupon expires simultaneously, and is marked as redeemed, across all channels to prevent re-use.
- That it is impossible for a consumer to obtain a second copy of the coupon unless specifically allowed by the retailer.
So, what are the characteristics of a true single-use coupon? It must:
1. Contain a unique code, to track the offer from issuance through redemption and expiration.
2. Be delivered to a specific device and/or individual, to allow the retailer to track all coupons the customer has received.
3. Support simultaneous multi-channel delivery, redemption and expiration. Simultaneous expiration ensures the coupon cannot be used more than once, eliminating coupon fraud.
Retailers benefit significantly from deploying single-use mobile coupons. CodeBroker customers routinely see up to 50% redemption for on-demand coupons, significantly higher than paper-based coupons. Effective offers are helping retailers build brand loyalty with their customers, increasing their lifetime value. With single-use coupons, retailers are also able to track the entire purchase funnel – from delivery through redemption – creating a comprehensive picture of consumer purchase behavior. And finally, CodeBroker customers have realized significant savings by reducing print spend when delivering offers via a text message marketing program.