5 Reasons to Use Mobile Coupons Now
The 2010 U.S. Local Mobile Advertising & Promotions Forecast from Borell Associates estimates that mobile coupon spending will grow from $90 million in 2009 to $6.52 billion in the next four years. Indeed, the redeemed value of mobile coupons is already roughly 10 times greater than mail or newspaper distributed coupons and nearly 25 percent higher than printed internet coupons.
Yet despite the meteoric growth and success of mobile coupons, there remain marketers who still haven't realized the ever-growing importance of reaching consumers when they’re on the move.
For those drifting in the mobile marketing doldrums, here are five reasons why mobile couponing can put some wind in your sails.
1. It’s simple. Although much of the mobile marketing hype is focused on apps, most businesses don’t have a need for one nor do they have the resources to develop and support an effective app. Regardless, apps have an incredibly limited reach, as only 17 percent of phones are smartphones. Meanwhile, virtually all phones are capable of sending and receiving SMS or “text” messages.
The simplicity of text messaging, along with its reach (SMS is available on nearly 100 percent of the 288 million mobile phones in the U.S. and 5 billion mobile phones around the world), makes it the most effective medium for reaching any customer — no matter where they are.
2. It can increase the frequency with which current customers use your product or service. Since mobile coupons require opt-ins, your current customers are the ones that will opt in for special offers, not random magazine or billboard readers that you target with normal (i.e., frequently wasted) advertising. These people like you already; you just have to get them to come in more frequently. Rewarding core customers for their continued loyalty by sending exclusive mobile coupons gives them a solid reason for purchasing from you again and again.
3. It can introduce new guests. Buy one, get one offers that require another person (buy an entrée, get an entrée or buy two tickets, get two free) will help introduce new people to your business. Launching mobile marketing messages when your customers are likely to be with friends, family or co-workers can bring new customers in by the droves.
4. It can offset lulls in your business. Bad weather, holidays and normal business cycles can all produce lulls in activity for your business. A well-timed special can turn that negative into a positive with unparalleled speed.
Related story: Target Launches Mobile Coupon Program