As smartphone use continues to soar, a growing number of retailers are deploying mobile coupons to drive store traffic and revenue. Here are seven strategies using coupon software to improve redemption rates for mobile coupons.
1. Offer mobile coupons through specific channels. “Deliver different content to consumers who sign-up to a retailer’s text message marketing list or email list. This practice creates a sense of exclusivity for each of the channels the retailer uses to deliver offers. Engaged customers tend to sign-up for multiple marketing channels because they know they’ll receive different coupons. This drives both engagement and redemptions.” (Sue LeClaire, CodeBroker)
2. Get the timing right. “Unlike traditional mail and even email, marketers offering mobile coupons can choose exactly when they want people to receive their coupons. Take advantage of this by sending when the offer is most appealing, and by tailoring the language to the situation. For example, at 5pm on a weekday, a marketer could send a promotion that says: “Too tired to cook? Pick up a large 2 topping pizza for $9.99 ($5 off!) on the way home tonight! Call 310-555-1212 to order, and mention this txt.” (Dan Kamin)
3. Keep ‘em coming. “The retailer should have a mobile coupons marketing plan ensuring that mobile coupons are delivered to consumers on a regular basis. Our retail customers experience fairly consistent redemption rates for mobile coupons when they establish an offer delivery cadence. Redemption rates for retailers that deliver occasional mobile coupons vary greatly from promotion to promotion.” (Sue LeClaire, CodeBroker)
4. Include an element of surprise. “The merchants we work with at Pirq are able to leverage a feature of our service called VIP Deals. After a customer makes a purchase and receives a “punch” on their phone, a VIP Deal will instantly appear on their screen. The customer wasn’t expecting this offer, so there’s an element of surprise. We work with each business owner to ensure their VIP Deal offer is enticing to customers. Merchant can update the offer at any time to test which offers move the needle and generate the most revenue.” (Keegan Hall)
5. Use promotion text messages to promote the largest discounts. “Provide more aggressive discounts with promotion text messages than you do with other channels. Offers that buyers perceive as providing the most value, such as Buy One Get One Free, are much more likely to be redeemed. Save smaller discounts for email and other less effective channels.” (Dan Kamins)
6. Rely on data to make offers relevant.
“Local businesses targeting mobile consumers via appealing emails and promotion text messages with special offers see great returns on foot traffic back in the door. To make it relevant, the promotion text message should be personalized based on existing customer data. Therefore, local businesses should start with marketing to their existing customer base. The last step of achieving marketing success by adding credibility is asking consumers to share the offer with their friends and family, so don’t forget to leverage the power of word-of-mouth.” (Stuart Wall)
7. Take advantage of surprise and delight. “When surprise, delight and instant gratification are combined through a single-use coupon offer, our merchants typically see a large lift in revenue. Here’s a good example: a customer visits a coffee shop and gets a VIP promotion text message with a mobile coupon for “20% off any pastry, valid today only.” The customer is surprised (not expecting the special offer), delighted (it’s a relevant offer with enough of a discount to get them to act), and the offer can be used at that moment. So, if the coffee shop owner get even a small percentage of their customers to redeem the offer, that translates into a significant amount of incremental revenue over weeks, months and years.” (Keegan Hall)