Biz Tips: Research Shows the Value Consumers Place on Mobile Coupons

Biz Tips: Research Shows the Value Consumers Place on Mobile Coupons

Biz Tip:

Research Shows the Value Consumers Place on Mobile Coupons

Recent consumer research from CodeBroker explains how mobile coupons can drive purchase behavior in a cut-throat battle for mobile-savvy consumers. Among many interesting findings, the report underscores a crucial fact that winning the increasingly fickle consumer requires listening to what they prefer and what they value – including coupons and discounts.

This Consumer Mobile Engagement research provides actionable insights as it factors in responses from over 1,500 consumers nationwide on a wide range of mobile engagement topics to gain an understanding of the mobile channels preferred most by consumers for receiving communications, including mobile coupons and mobile loyalty program rewards.

Mobile Coupons still reign as real tokens of affection

For marketers who feel their loyalty programs aren’t packing the punch they once did or need tweaking, here are some useful findings. Interestingly, the report finds that consumers place the highest value on text message marketing that impacts their wallets, with mobile coupons and sales/discounts combining for 88% of what consumers want from retailer text marketing programs.

When asked, “Which type of text message do you find most valuable to receive from a retailer?”, a whopping 53% said “mobile coupons.”

Many loyalty programs are failing miserably, costing millions of dollars to brands. In the face of diluting margins, draining profitability, less-than-expected growth, it becomes strategic to thoroughly evaluate customer acquisition and retention strategies, with an eye towards margin growth. This data suggests that a significant number of consumers still value personalized rewards such as discounts and coupons that are sent to their preferred mobile marketing channel, such as text.

Mobile Coupons: a major coup in mobile engagement

From efforts aimed at growing a brand’s appeal, to initiatives that promote new products and services, mobile coupons have emerged as a highly effective vehicle in creating a sense of commitment with consumers. Evolving from their erstwhile “vouchers” format, mobile coupons are helping brands and e-marketers innovate and distinguish, and are also growing in popularity, importance and sophistication.

The research offers strategies that can be leveraged by marketers to fine-tune their mobile marketing programs, and turn the telescope around for what really counts in driving mobile engagement:

  • Mobile coupons can help engage millennials as prime targets to build text message marketing lists and for sending personalized promotional text messages;
  • Consumers are willing to provide personal data in lieu of genuine value, especially received in the form of mobile coupons;
  • Mobile coupons lead the way significantly, preferred over receiving messages about sales or discounts by nearly a 60% margin;
  • Most consumers tend to redeem mobile coupons very quickly; this allows retailers to craft special limited-time offers for driving near-term spikes in revenue.

Mobile Coupons drive SMS subscriber list sign-ups

Another interesting revelation of the research proves that marketers should not just think of mobile coupons as only providing incentives. The research has more than 75% of respondents saying “Yes” when asked to fill out a form with their name and address when they are offered a mobile coupon in return. This must be music to many retailers’ ears, since this tactic can help them build high-quality SMS marketing lists.

By offering a high-value mobile coupon, retailers can collect demographic information during list sign-up, and can add the record to the CRM system to target text messages more granularly, such as by location – and also augment text marketing with other channels, such as direct mail or email. At a time when marketers and retailers are trying to double down on customer acquisition and retention, leveraging mobile coupons as incentives can help engage new customers, leading to desired sales uplift.

Retailers and brands need to deepen their understanding of promotional factors that resonate with their customers. Importantly, when it comes to digital commerce or mobile commerce, most brands are likely to have millennials on their target. Let’s put some evidence to this from the research. 100% of millennials who participated in the research have opted in to a text message marketing list. When you see this finding in the context of 75% of respondents who willingly agreed to provide their details in exchange of mobile coupons, you know how these incentive rewards really work and come to define the new language of loyalty, especially among millennials.

Access the full Consumer Mobile Engagement report to find more about how mobile coupons can help marketers grow market share, increase sales volume and cultivate loyal customers by combining tangible value with other elements of personalization such as demographic data, location and past purchase behavior.

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