There is no doubt that mobile commerce is going through a Big Bang of sorts and several surveys as well as reports have attested that. Perhaps, that is why many businesses, especially SMBs, have switched over to offering mobile coupons instead of the traditional ones to grab the attention of this growg audience base.
A late 2013 Business Insider report revealed exactly how these business owners might have struck gold with this move. It showed that mobile coupons enjoy ten times more redemption rate than the traditional coupons. Here is a detailed look at the facts that testify it:
Convenience is the key
Mobile coupons are a convenient option for the customers and this is one of the primary reasons that are driving their redemption rates upward. The introduction of user-friendly apps to store coupons (e.g.: Passbook) makes it all the more easy for customers to take their coupons along everywhere without putting in any extra effort. With all the coupons in one place in digital format, there is no longer any question of forgetting them while visiting the store or missing out on redemption when you make an unplanned visit to the outlet.
Geo targeting customers with mobile coupons
Give a potential customer a mobile coupon when he/she is near your shop and he/she is likely to make use of it instantly by stepping in to make a purchase. Mobile coupons can be distributed in a targeted manner to customers based on their geographical location to maximize reach as well as conversion rate. In fact, you can send your coupon to a buyer when he/she is browsing through your competitor’s shop nearby and pull him/her out of the competitors sales funnel and straight into yours. This is yet another reason why mobile coupons are redeemed more often than traditional ones.
A fashionable trend
If you thought that coupon clipping was for the soccer moms and out-of-shape dads, it is time to take another look at it. With the mobile revolution and the introduction of mobile coupons, it has become rather fashionable and definitely savvy to flash your smartphone at the check-out and walk away with a hefty discount. Using coupons is no longer a ‘socially awkward situation’ but the mark of a ‘resourceful shopper’.
In a surprising switch of trends, many youngsters are adopting the coupon clipping lifestyle in direct contrast to earlier years when the younger generation firmly believed that using coupons was a major social gaffe. The hip and stylish mobile coupons are the main reasons for this change in the attitude. Given that youngsters are likely to have limited purchasing power, the savings that coupons represent should drive mobile coupon redemption a bit more in coming years too.