The use of digital coupons in local media campaigns continues to grow in order to target consumers whenever and wherever they are using their smartphones.
By 2014, one in four mobile users will redeem a coupon via a mobile device. And, the estimated number of coupon users in 2012 rose by 66%, following a growth rate of more than 100% in both 2010 and 2011. – eMarketer
Here are a few reasons why the use of mobile coupons is an effective way to target customers:
1. Advanced Targeting
As technology is advancing, the ability to target customers, while they are in your marketing area, has become a reality. According to an article by FunMobility, the use of mobile coupons “is expected to skyrocket in 2013 with the advent of geo-targeting and Near-Field Communications (NFC).”
Geo-targeting and Near-Field Communication technology allows advertisers to target and push text alerts to cell phones when they are in or very near to a store. This is typically done through mobile apps to customers who opted-in to the program.
Whether you have a single location or multiple locations, targeting mobile phone users with a coupon, when they are around your location, is a great way to drive traffic to your store.
Make sure you take full advantage of this technology when planning your next mobile campaign, by selecting a provider who is able to geo-target your coupons in and around your specific locations.
2. Redemption Rate
While totals of mobile coupons, by companies, is still lower than other forms of couponing, there are markedly higher average redemption rates when compared to traditional print coupons.
According to a report from Juniper Research, the redemption rate of mobile coupons averaged 10%, while more traditional coupon redemption was typically 1% or less.
If you are not satisfied with your current coupon program and seeing lower than anticipated redemption rates, consider testing a mobile coupon program to see if you are able to increase your redemption rate.
3. Customer Expectation
It is hard to argue with the fact that consumers are using their mobile devices for more than just communication.
Consumers expect to have everything at their fingertip. The convenience of mobile coupons makes it easy for consumers to “bring their coupon” into the store, without having to clip them out of newspapers or even print them out of their mobile device.
With many consumers keeping their phones within arm’s reach 24 hours a day, don’t miss an opportunity to target them by making mobile coupons a part of your local media campaign.