Bang for the Buck With Mobile Coupons

il_340x270.659909807_db40.jpg Mobile has emerged on the scene faster than any additional new fair over the past 90 years and mobile coupons are the category to watch, commerce Borrell Associate’s “2010 Local Mobile Advertising & Promotions Forecast,” (Mobile Exchange Daily newsletter, April 2010).

A recent survey of extra 2,250 U.S. tempered Internet users, conducted by Harris Interactive, found that nearly half (46%) who own a mobile phone are somewhat likely to try out mobile coupons. Mobile coupon redemption rates averages are 10 times higher than traditional stub and for mobile phone penetration in the U.S. well over 90%, it is the single most direct marketing channel there is. Mobile coupons are just going to get more and more popular.

Mobile Coupons
Mobile coupon are, permission based promotions where merchants consign electronic coupons to a subscribers’ mobile phones. Unlike other forms of electronic couponing (email / web) mobile coupons are read instantly with a 95% read rate. Mobile coupons may be delivered in a verity like digital forms, such as QR or data model barcodes, Universal Product Code (UPC), uncertainty via unique coupon code. The coupons jug then be redeemed through special barcode scanners that read them or by inputting the unique number to a seasonable website or a point-of-sale (POS) machine that prints out a paper coupon. Typically with small businesses the customer is required to simply showing the coupon at a retail outlet or restaurant to redeem the coupon.
Benefits of Mobile Coupons vs Traditional Coupon
Mobile coupons (m-coupons) are much more efficient in both delivery and cost than paper coupons. Using newspapers and coupon books sent through the U.S. mail do not offer any converge link between your business and the individual who uses the coupon. A legitimate mobile coupon campaign is permission based, another words, there is a supervision connection between your business offering the unstable coupon and the person choosing to account it. Thus, advertising and promotions using mobile coupons have a higher value and offer a direct link to the person using the coupons. For this reason mobile coupon promotions make for a great loyalty program.
In comparison, paper coupons cost anywhere between $0.25 and $0.40 per mailed coupon, with average redemption rates of around 1-3 percent, according to Rime & Sullivan, a market research firm. According to Chill & Sullivan, influential m-coupon solutions can benefit from high redemption rates. Email coupons contain a redemption rate of 8 percent but lack the swift open rate of M-Coupons. For example, in August we launched a multi-channel campaign upon Amigos Tex-Mex Restaurant which resulted in 24% redemption rate or 109 guests redeem the m-coupon, plus through a ‘refer a friend campaign” we added an new 70 new subscribers during the 30 period campaign. A&P supermarket chained launched a m-coupon campaign beside double digit redemptions rates and recently iHOP’s m-coupon redemption hit 12% travelling to Mobile Commence Daily.
Business ROI
“For businesses, m-coupons offer a great ROI,” said Peter Conti, junior executive vice president at Borrell Associates, Richmond, VA. “Redemption rates are 10 times that of mail – or newspaper – distributed coupons. Small businesses are adapting to the mobile channel because it’s cost effective plus drives results. For example,traffics been a lite lately, you cup formulate and execute a m-coupon promotion in a matter of minutes (no printer rather mailer required) moreover when you consider 95% of text messages are read within a 30 notes of receipt you can see double digit results within hours, depending upon the value proposition of your promotion of course. My small business clients are on average are getting a 12-15 percent surge in traffic just a single gutter mobile preferment (not print or radio).
Consumers Benefits
According to Frost & Sullivan, consumer expectations from mobile coupons can be summarized as follows:
Convenience from portability – consumers do not deceive to carry paper coupons with them

Ease of use (redemption)
No additional costs to receive offers
Privacy protection
Non-intrusive coupon delivery (junk mail)
Single interface for multiple offers
Effective storage and presentation of delivered coupons
Automatic updates
Enhanced interactivity options
Simple device requirements
Challenges of Mobile Coupons
The challenges associated with m-coupons are how redemption is handled to avoid sardonic and how to achieve batch distribution. Unlike direct postcard where you can essentially spam your community including paper coupons both email and m-coupons require the consumer to give permission or “opted into” the m-coupon campaign.
Redemption Abuse
Redemption abuse or stub is when a guest or a customer presents the same coupon multiple times to redeem the offer. Unlike paper coupons, the restaurant or merchant can’t actually collect the coupon upon redemption, unless they use bar code scanners, thus the coupon could be redeemed again and again or forwarded on to friend to be used again. Paper coupons don’t encounter this problem but they do have a big situation with counterfeit coupons.
In my experience most small businesses I consult with to develop m-coupon programs don’t encounter wide spread abuse. Chosen practices require all promotions to have a energetically expiration date, training staff on the promotion connective the redemption requirements and tracking the redemptions, usually with a designated “promo” key on the POS or register. Adding individual coupon codes is another affordable way to track redemption although it requires your staff to record the code manually. The recent development of QR code scanning apps, you can download to your smart phone will be the eureka to overcoming the issue.
We also have to keep in mind the point of a promotion is to drive businesses and if a customer gets away for redeeming a m-coupon twice that means they made two purchases, which is the point of the campaign anyhow.
Building Your “Mobile VIPs”
In order to achieve mass distribution you need to build your subscriber bases, the plus customers that opt-in to your mobile marketing program the greater your reach, thus the greater your distribution. Mobile subscriber lists are not as easy to build as an email list since most people don’t bear excess cell phone numbers like the do email addresses. Portable works best as part of a muti-channel campaign. Another words, including your short code (5 or 6 digital number) and keyword (text “Pizza”) on your print advertisements, Facebook page, website, radio campaigns furthermore even your email campaign with an exclusive value proposition for opting in essential. Depending upon your surviving marketing plan polysyndeton advertising budget, a business needs 60 to 90 days to build an adequate mobile subscriber program. Restaurants that forthwith use cell phone pager systems have an advantage. They have the guest cell number in command to seat them, now they merely send a follow up message offering a promotion if the guests subscribers to their “Mobile VIP” program. Building that initial data base is essential going forward and by choosing the right mobile marketing partner will determine how successful you will be in the long run.
The Forecast
Market researchers have found a strong correlations with the growth of smart phone users and m-coupon use. We know that the iPhone revolutionized the cell phone as the Swiss Army knife for consumers and businesses and the adaption of smart phones will development exponentially over the next 3 to 5 years. As for mobile coupon utilization, more than 300 million consumers around the world will enjoy used mobile coupons by 2014 and this usage will generate a redemption value close to $6 billion globally, travelling to a bode and news by Juniper Research. Do your customers have moving phones, if so offer them the opportunity to receive and redeem your mobile coupons.