Juniper Research defines a mobile coupon as “a coupon sent and stored on a mobile phone that can be exchanged for a rebate, a financial discount etc. at a retailer when the consumer purchases a product.” When compared to their paper cousins, mobile coupons offer a number of distinct advantages allowing the coupon issuer a direct connection between themselves and the consumer using the coupon.
Reasons Mobile Coupons are an effective marketing tool
- Cost savings on campaigns
- An increase in ARPU
- One-2-one marketing opportunities
- An increase in customer retention for mobile operators – lower churn
- Higher conversion rates
- The expansion of mobile value added services
- Reduced fraud
Mobile Coupon Delivery Methods
QR Code – A QR Code allows its content to be decoded quickly. They normally are used as a quick link to access paper or online content from a mobile device. They are more frequently being used as a tool for retail coupons.
SMS – Promotions and coupon codes have been sent to mobile phones via SMS for some time, but with new technologies, informational SMS can now be triggered automatically by proximity to a service or retail outlet.
Geolocation – “Check-in” services such as Foursquare are now pairing up with companies to offer the customers offers based on their current or most visited locations. Events can also be triggered automatically by proximity.
NFC Smart Posters – By passing their device near a “smart poster” with a near field communication tag embedded within it, users can interact directly with the content/promotion by information being sent straight to the device.
Apps – There are now a variety of apps available on iPhone, Android and Blackberry that users can interact with and find the coupons most relevant to them by location and category.