Mobile coupons and digital marketing

The biggest reason for mobile success is due to our personal connection with the device: Mobile devices are an extension of oneself. Mobiles are successful because human beings “see” a mobile as being a part of them. Mobile coupons are also popular. How can you make coupons even more successful?

  • 47% of mobile customers want retailers to send coupons to their devices if they are near the store*
  • 34% of smartphone shoppers use their devices for mobile coupons*

*Statistics taken from (Factbrowser) who also found that 23% of mobile shoppers used direct retailer coupons moreso than deal sites, such as, GroupOn, for example.

Pros and cons of mobile marketing

There are 4 main advantages to mobile digital marketing: convenience, there is no need to cut out a mobile coupon and take it with you; locality, further enhances information; relevancy; and timeliness. Mobile coupons can be significantly improved, in terms of redemption, if coupons are relevant and timely.

Perceived risk, what a customer’s loss might be, is the sole disadvantage of mobile coupons and they include: financial; physical; product; performance; and transactional. If we, for example, examine a product’s price and think it is too expensive (a perceived risk) then we are not likely to buy that product. However, if this high priced product is marketed to be useful and, for instance, easy to use then we are likely to re-examine the price. If financially possible the client will pay the higher rate only if they see the product as being useful and easy to use.

Mobile coupons are redeemed 10 times more than traditional, paper based, coupons.

Advantages of online retailers directly selling to customers

Communication, the first advantage of a company directly selling to a customer, easily occurs because information is quickly exchanged. Transactional, for example sales, secondly, improves visibility and creates a larger customer base, increasing profits. Distribution, thirdly, refers to the exchange of products, shortens the supply chain. eCommerce web sites should consider selling to the general public because the advantages are strong.

Distribution can be further enhanced by using just in time (JIT) systems. JIT orders products in smaller batches which reduces storage costs and, for example, rent. JIT systems cannot take advantage of economies of scale, the ability to buy bulk products at a much cheaper rate, or cheaper production costs if the company manufactures their own product.

Mobile phones

Old and new mobile phone. Copyright reused, unedited, from Wikipedia.

The key to making mobile coupons successful is to positively impact a customer’s attitude towards a product because attitude directly influences perceived control, such as, the fear of spam or invasion of privacy. How can mobile coupons attitude be positively increased? The first aspect is to offer an opt-in or opt-out clause any time. Secondly, protect privacy and communicate this message clearly to the customer, for example, by precisely outlining what data you collect and for what purpose. You should also be aware of the laws within your jurisdiction. In the UK, for instance, the Data Protection Act (1990) protects any personal and sensitive information. Do you also protect any personal and sensitive information? Explain how you do this to the client in simple English.

Since this post identified the Data Protection Act (DPA) it is worth noting that, since the publication date of this post, the DPA is moving towards a unified General Data Protection Regulation law which means that the DPA law will be reviewed and agreed, possibly within the next year or two, for the whole European Union. Protecting personal information is not only a legal requirement but good practice to follow since it puts the user at the forefront of what you do. Furthermore, you increase your brand’s privacy.

Have you used a mobile coupon recently? Tweet Gerald.

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References

  1. Dickinger, A. and Kleijen, M. (2008) Coupons going wireless: Determinants of consumer intentions to redeem mobile coupons. Journal of Interactive Marketing. 22(3) pp. 23-39.
  2. Factbrowser. (no date) Facts Tagged With Mobile coupons.
  3. Im, H. and Ha, Y. (2013) Enablers and inhibitors of permission-based marketing: A case of mobile coupons. Journal of Retailing and Consumer Services. [Volume and issue numbers did not print out properly] pp. 1–9
  4. Kiang, M.Y. Raghu, T.S. and Shang, K.H. (1999) Marketing on the Internet — who can benefit from an online marketing approach? Decision Support Systems. 27(2000) pp. 383–393
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