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In these cash strapped times, frugality has never been more fashionable. So it should come as no surprise that (according to a Juniper Research survey) 3 million people are now using mobile coupons in the UK. And with a redemption rate 6 times higher than paper, giving out mobile coupons is a marketing trend set to continue, even when we’re back to maxing out our credit cards.
Hunting around for discounts is already popular on the web. In fact, Hitwise estimated that searches for discount vouchers went up 47.5% in the past year. Coupons are great for email marketing too, with reports that open rates for emails with coupons average 25% compared to 16-18% for emails without.
So, as the figures show, coupons can be a great way of attracting people to your website and getting your emails opened. But when it comes to mobile, coupon marketing offers so much more…
Mobile – the ultimate personal marketing channel
Let’s just consider some of the benefits mobiles offer to marketers:
- Most people have one (many have two)
- They offer a direct route of contact
- They’re normally switched on and close to hand
- People can use them to respond impulsively to marketing
- The success of campaigns can be measured to the exact text message
- They have a built in payment mechanism
And all these benefits without the need of a touch screen!
When you consider the immediacy of mobile it’s no wonder coupon campaigns can be so effective. Here are two great examples:
Coca-Cola’s 200k giveaway
Coca-Cola recently ran a promotion (comprising of point-of-sale advertising, door posters and shelf blazers) letting people know they were only a text message away from a free drink. Participants simply had to text ‘YES’ and their date of birth to receive a promotion code for a free bottle of Fanta, Sprite or Dr Pepper.
The promotion helped distribute 200,000 free bottles to 100,000 people, without the need to fill in a form or cut out a coupon. The campaign had a very high redemption rate of 87%, and provided Coca-Cola with valuable data on coupon hotspots.
Planet Funk’s 377% campaign ROI
Uber trendy US clothing retailer Planet Funk is currently the poster child for mobile coupon marketing. In the run up to Christmas last year it sent 2000 coupons to text subscribers and people who’d texted in response to posters and ads on its website.
Planet Funk’s campaign received a 91% redemption rate – contributing 28% to their December sales and a 377% return on the cost of the campaign. As an added bonus, 15% of coupon redeemers (not wishing to look a gift horse in the mouth) opted into future Planet Funk mobile campaigns.
As these two examples show, coupon marketing, whether by email or mobile, can be a very effective way of attracting a burst of sales and filling your database for future campaigns.
So, instead of Christmas cards, consider sending coupons to your favourite customers this year. It’s a gift many will be happy to receive.
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BDA (Buckingham Design Associates) blog – real people giving real opinions, and a complete lack of agency waffle. BDA deliver an exciting blend of design and creative marketing for the Oxford, Milton Keynes, Northampton and London region.
January 13th, 2010 at 3:46 am
Great blog. I find myself reading a lot here. Keep up the good work!