Mobile Coupons

Keith Clark
Editor
Kclark@MobileMarketingNews.com
3-19-2009

There is something new in couponing - mobile coupons. The technology allows cell phone users to receive and access coupons via their phone - making it simple and easy for the recipient to redeem.

Cell phone users are given the option to download a service, usually free, which allows them to receive mobile coupons from local and national retailers directly to their cell phones. These are usually deals and other specials not offered the general public. Users download the software application, using a process similar to downloading a game or ringtone.

Subscribers choose from a list of local and national participating retail shops and stores (both local and national) they want to receive offers from. The coupons are based on the user’s ZIP code.

Coupons are stored in user’s handset, making it unnecessary for the recipient to log onto the Internet to obtain or print them. The user can scroll to the coupon he/she wants to use, press "Use Now" and shows the coupon to the cashier to redeem.

One Florida college recently created its own mobile coupon services with the help of a local mobile coupon service and area vendors. Students, faculty, staff, alumni and local residents could sign up to receive discount coupons from over 100 area retailers including restaurants, sporting events, nightclubs, and retail stores.

Coupons could be directly to their cell phones, personal digital assistants (PDAs), pagers, and email addresses. Subscribers could also sign up for real-time campus information updates including class meeting changes, school closings, emergency alerts, and payment deadline reminders.

But most importantly, did it succeed?

  • One local radio station used the service to promote a contest. The response was so great that they had to expand the event.
  • An assistant professor used the service alert his students class would be canceled on a specific day and time. No one showed up for the cancelled class.

Overall, participating retailers reported seeing redemption rates averaging between 10% and 20%. In comparison, the same retailers reported an average redemption rate of just 2% when using traditional paper coupons.

Of course, there remains a market for paper coupons:

  1. Retailers who feel that if a coupon isn't used, seeing it on paper reminds the consumer that the product exists.
  2. Retailers who feel a large group of their consumers may be left out of the mobile coupon loop because they use their mobile phones selectively or not at all.

But the facts are clear, when compared to mobile coupons the percentage of paper coupons that actually get redeemed is small while the cost of production, finding your target audience, handling and distribution costs are substantial. And any company that is concerned about lowering their marketing budget and improving ROI, must consider mobile coupons as a way to reach their market.