4 reasons why businesses should consider mobile couponing
It’s a new age, where every aspect of our lives is connected through technology. Developers are constantly rolling out apps with new functionalities, while wearable devices are tracking health data. Smartphones are not only used for communication and entertainment, but for saving money as well. Even coupons, which for so long had to be cut out of newspapers or pulled from magazines, are now available in mobile form.
In fact, mobile couponing is a growing trend for retailers. Customers are using these digital coupons to get great deals on just about everything. In 2015, eMarketer estimated there were 121.3 million digital coupon users in the US and expected that figure to grow 5.2 percent to 127.5 million in 2016. Retailers looking for new ways to engage audiences through mobile channels are using SMS, MMS and NFC messaging to target nearby customers with relevant coupons and sales.
The following are four benefits of mobile couponing to retailers looking to better engage with their customers:
1. Customers aren’t confused
How often do your customers wait their turn to check out, present a coupon and find out it was used and is now invalid? In the end, the customer is annoyed and you may lose a sale. Don’t let that happen to you. Mobile coupons allow for dynamic passage, so each time a customer uses a mobile coupon, it gets updated on-the-go, informing the customer whether it’s possible to use that coupon again. There’s no more confusion at the checkout line, customers are spared from embarrassment and your sale is more likely to be completed.
2. Redemption rates are high
In comparison to paper coupons, mobile coupons have higher rates of redemption. According to CodeBroker, coupons obtained through on-demand promotions have redemption rates from 30 percent to 50 percent, SMS coupons have redemption rates from three percent to 10 percent, and paper coupons have redemption rates from 0.5 percent to two percent.
3. You can to target customers on the fence
Quite often, customers are unsure whether they want a product, so they may keep it in their cart while they mull the purchase over. As a retailer, you’d naturally like the customer to make a purchase. This is when you can reach out to the customer and entice him or her to complete the purchase with the added incentive of a coupon. A special offer for that item can make all the difference and help close the sale.
4. Loyalty is increased
Imagine a customer walking into his favorite store, picking out the item he wants and presenting a mobile coupon at the register, only to get a pleasant surprise from the salesperson when he’s informed he can use that same coupon again next time. The “feel good” factor the customer receives is a big win for you. The customer has had a wonderful experience and will not only come back and shop at your location again but will also spread the news. You just gained a valuable, loyal customer for life.
This is what mobile coupons do. They retain your customers and add value by boosting customer loyalty. By making the switch to mobile couponing, your business can deliver a better customer experience and generate more sales.
Photo courtesy of iStock