Mobile coupons are essentially coupons sent, stored and redeemed via electronic means. They are becoming more popular and many businesses are embracing the idea of mobile coupons because they boost customer loyalty (Rosen, 2012). Today almost every adult in the developed world interacts with the internet or phone daily, in a variety of ways. Mobile devices are becoming common tools for shopping, allowing customers to research product quality, opinion, reviews, and location.
Increases in Profit from Reeling in Student Demographic
Approximately one in five smartphone owners redeem a mobile coupon every year. Future estimates show that in a year’s time, 30 percent of mobile device users would be redeeming discounts on the go (Emarketer, 2011). Currently the student demographic is the most active on social media.
Since social media already offer brand presence, mobile coupons come in handy to promote direct conversations around the products. The media shrewdness of the student demographic and concentration of students in campuses provides an ideal target for marketing with mobile coupons (OnCampus Marketing Team, 2012).
E-mail Coupons Attract Larger Customer Database
The basic and most common form of this interaction is email. In fact, email serves like an online identity and shipment address for internet transactions. In addition to the scale of reach available through email, businesses have the advantage of time. Electronic communication is instantaneous to almost any part of the world. Mobile coupons require users to enroll and this allows marketers to develop customer profiles.
Later the databases become handy for tracking redemption patterns, and consumption behaviors. For businesses, use of mobile coupons makes it possible to track market data and deliver better product campaigns in future. Use of mobile coupons ensures that business receive demographic feedback of their market campaigns fast and efficiently.
More Publicity for Growing Small Business
Consumers opt for mobile coupons because of the savings held within them; however, companies using coupons are now attaching multiple purchase requirements for qualification. Therefore, while mobile coupons increase in popularity and their face value increases to entice customers, sellers are still benefiting from the low average value offered on multiple products compared to the face value of one product.
For small businesses, the return on investment offered by mobile coupons is hard to pass by. They result to the movement of two to three different items because of their multiple purchase agreements. Here, small businesses collaborate with larger ones to offer their products as part of the multi-purchase settlements.
Better Idea of Most Popular Items
Other than attracting customers with their discounts, mobile coupons also encourage consumer interactions with business and more products. In a way, mobile coupons help organizations to introduce new products or divert attention from less profitable products. In addition, cheap marketing options like pay-per-performance lead to bigger savings for businesses.
Fewer dealings with paper translate to fewer hassles for customers and make a business that uses mobile coupons friendlier than others do. Primary grocery shoppers are turning to mobile coupons to minimize their family budgets. These shoppers choose brands based on the coupon offerings and in turn go on to develop attachments to the new products.
Companies Using Mobile Coupons
The adoption of mobile coupons is happening to all kinds of companies like retailers, restaurants and even gas stations. For example, Procter & Gamble patterned with a technology start up to create barcode beams that allow phone screens to be readable to laser scanners (Karp, 2011).
The retail company Target and Walgreens uses mobile barcode scanners to award their own mobile coupons (Karp, 2011). Wal-Mart has introduced an iPhone app that allows users to interact electronically with the retailer. In addition, customers at Wal-Mart can grab coupons and send them via email on their phones (Rim, 2011). Lastly, McDonald’s also uses a mobile feature by cellfire to offer mobile coupons in parts of western United States. The company uses the mobile coupons to drive awareness of its new products (Khan, 2008).
Emarketer. (2011, September 7). One in ten mobile users redeem coupons. Retrieved February 29, 2012, from http://www.emarketer.com/Article.aspx?R=1008576
Karp, H. (2011, December 19). Procter & Gamble cuts mobile coupon deal. Retrieved February 29, 2012, from http://blogs.wsj.com/digits/2011/12/19/proctor-gamble-cuts-mobile-coupon-deal/
Khan, M. A. (2008, April 10). McDonald’s uses mobile coupon for new product. Retrieved February 29, 2012, from http://www.mobilemarketer.com/cms/news/commerce/816.html
OnCampus Marketing Team. (2012, February 11). Using college campus advertising to promote spring break opportunities. Retrieved March 4, 2012, from http://blog.oncampusadvertising.com/blog/youth-marketing
Rim, R. (2011, November 8). Walmart iPhone app adds shopping lists, budgeting tools, coupons. Retrieved February 29, 2012, from http://gigaom.com/2011/11/08/walmart-iphone-app-adds-shopping-lists-budgeting-tools-coupons/
Rosen, E. (2012). 5 Reasons Why Mobile Marketing Coupons Are So Popular. Retrieved February 29, 2012, from http://ericrosen.net/5-reasons-why-mobile-marketing-coupons-are-so-popular-2/