Are Coupons the Key to Mobile Marketing?

Mobile commerce has exploded in recent years—and mobile coupons are responsible for much of this growth. In fact, mobile coupons are redeemed 10 times more than print coupons and the number of mobile coupon users is expected to reach 53.2 million by 2014. Combine that with the increase in mobile usage by consumers on the go, and it’s clear that mobile coupons are the perfect solution for growing your small business and attracting customers on the hunt for discounts through their mobile devices.

Mobile commerce has exploded in recent years—and mobile coupons are responsible for much of this growth. In fact, mobile coupons are redeemed 10 times more than print coupons and the number of mobile coupon users is expected to reach 53.2 million by 2014. Combine that with the increase in mobile usage by consumers on the go, and it’s clear that mobile coupons are the perfect solution for growing your small business and attracting customers on the hunt for discounts through their mobile devices.

The Mobile Marketing Opportunity Is Real
eMarketer estimates that nearly 20 million US adults will redeem a mobile coupon this year, including coupons or codes received via SMS, applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile. More than 70 percent of US adult digital coupon users will redeem a coupon or code on a mobile device for online or offline shopping in 2014.

The mobile coupon audience will post double-digit growth rates annually through 2016, driven by continued smartphone and tablet adoption and the proliferation of digital channels offering coupons easily accessed by mobile, such as mobile apps, daily deal and group buying sites, email, and social networks. eMarketer expects that by 2016, mobile coupon users will represent nearly 83 percent of all digital coupon users. This is huge!

The Revenue Opportunity
There are a number of different ways to engage consumers and drive revenue opportunities, including:

  • Coupons: Mobile coupon redemptions in the U.S. will exceed 53 million this year. The mobile coupon audience will post double-digit growth rates annually through 2016, driven by continued smartphone and tablet adoption. (Source: Business Insider 2014)
  • Geo-Targeting: Geo-targeting has boosted the success of SMS-delivered coupons, with retailers seeing high redemption rates from coupons sent to consumers close to their stores.
  • Loyalty Programs: Consumers expect to be rewarded for brand loyalty, particularly millennials. A 2014 poll by Bond Brand Loyalty indicates that 6 in 10 millennial respondents would switch from brands they buy and two-thirds would change when and where they shop, if it meant getting a better loyalty program.

Don’t Forget the Tablet
Year after year, tablets are becoming an increasingly important part of a brands mobile strategy. According to eMarketer, in 2014, 80.2 percent of mobile coupon users will use a tablet for redemption, compared with 75.4 percent who will do so on a smartphone. Tablets are frequently used for in-home digital purchases, which boost tablet coupon redemption.

Coupons, geo-targeting, and loyalty programs can be offered, tracked, and monetized with a mobile engagement platform. Additional revenue opportunities include banner ads, mobile video, rich media and SMS campaigns. But keep in mind that more friction points in the redemption process will greatly reduce the use of mobile based offers. So keep it simple for consumers to redeem your offers.

The data from Black Friday on-line shopping as well as coupon redemption data from Cyber Monday should tell an interesting story for retailers who have made a strong commitment to mobile couponing to drive commerce and increase total purchases by incentivizing their consumers.

You Know Your Mobile Customers Better Than You Think

Consumers are generally very attached to their smartphones and only connect with those they trust. This very reason is why mobile marketing is perceived as a “friendlier” way to engage with consumers. Research shows 95 percent of mobile users read their text messages within three minutes. Now, imagine the impact your mobile marketing will have if you deliver relevant offers, mobile coupons and discounts to your customers-they are almost guaranteed to be read and are more than likely to be acted upon if the message is targeted based on the what you already know about the customer.

Consumers are generally very attached to their smartphones and only connect with those they trust. This very reason is why mobile marketing is perceived as a “friendlier” way to engage with consumers. Research shows 95 percent of mobile users read their text messages within three minutes. Now, imagine the impact your mobile marketing will have if you deliver relevant offers, mobile coupons and discounts to your customers—they are almost guaranteed to be read and are more than likely to be acted upon if the message is targeted based on the what you already know about the customer.

Over the last couple years, mobile marketing has proven itself as an effective way to acquire and maintain customer data. This is true because people generally keep their phone numbers forever compared to their email addresses. Therefore having strong persistent personal IDs, such as a phone number, enables brands to track, evaluate, and optimize their mobile marketing campaigns to determine overall effectiveness.

Leverage What You Already Know
There are major benefits from using mobile messaging as part of a brands overall marketing campaign. Now brands and organizations are tracking and segmenting the users who are in their marketing databases. Information that has been collected through loyalty programs, incentive based marketing and opt-in’s which enables brands to better understand their customers interests and what they will respond to.

Turn Loyalty Programs Into Customize Incentives
Connecting a consumer’s phone number to their loyalty program ID can turn generic SMS offers into customized incentives. If you know what your customers are buying, and more importantly, what incentives bring them into your stores, you can use this information to make offers more dynamic and personal. Which in turn will drive a higher return rate and increase on-going customer loyalty.

CRM and Triggered Messaging
Most CRM systems track events throughout the customer lifecycle. Many of these events represent an opportunity to sell more product and service. These events can be used to trigger personalized messages to your customers that facilitate the sales process. Include a click to call, or drive them to your e-commerce enabled website to move them to purchase faster. Make sure your website is mobile ready!

Extend Your Knowledge of Your Customers
Using Mobile Messaging in your retention marketing doesn’t have to be a one-way conversation. In addition to tying in what you already know about your customers within your CRM or loyalty databases, you can gain insight from the SMS interactions as well. An integration between your back-office systems and your SMS provider can push new data points into your database that round out your customer profiles and lead to additional re-marketing opportunities.

There is a lot that can be done with the information that is collected about customers within a CRM system. While this data can be a great resource for things like consumer segmentation and establishing marketing strategy, it can also be leveraged real-time on a very personal level. Leveraging this data via SMS or other mobile engagements can lead to greater results through right-time, right device, and the right-message that walk the customer down the path to purchase.

As brands continue to evolve their mobile marketing strategies through more personalized interactions, they will be able to build stronger relationships, increase engagement and drive loyalty.

Why SMS Will Be Your Mobile Workhorse and 5 Ideas to Get You Started

We’ve talked about the importance of a mobile-friendly Web presence and mobile-optimized email for your small business. But there is one mobile tool that your small business should be leveraging that will be a key puzzle piece to the success of your mobile strategy. Some might argue that SMS is the most effective mobile channel that exists, when it comes to ROI.

We’ve talked about the importance of a mobile-friendly Web presence and mobile-optimized email for your small business. But there is one mobile tool that your small business should be leveraging that will be a key puzzle piece to the success of your mobile strategy.

Some might argue that SMS is the most effective mobile channel that exists, when it comes to ROI.

There is a reason it continues to be the workhorse within the mobile strategies of brands like Coca-Cola, Macy’s, Victoria’s Secret, Target, jcpenney and many more.

5 reasons SMS will be the workhorse in your mobile strategy.

Instant Deliverability: SMS messages offer one of the most immediate marketing channels for businesses. More than 97 percent of messages are read within four minutes of receipt. So if you have a message that is time sensitive, there is no better way to connect with your customer.

Everyone’s Reachable: Nearly 100 percent of the handsets on the market can send and receive text messages. I don’t care that we’ve surpassed 50 percent smartphone penetration in the USA. I don’t care that that will continue to grow. You’re missing out on 40 percent to 50 percent of your audience right now by catering to smartphone-only customers.

Just because my 65-year-old dad has an iPhone now doesn’t mean he will use it the way I do. But you know what … he sure sends a whole lot more text messages to me.

Highest-Possible Visibility: Remember how I said that 97 percent of SMS messages are read within four minutes? Well, that means that 97 percent of your SMS messages are being read—period. When was the last time your email open rate was over 90 percent? I’ll let you figure that one out on your own.

Now I’m not saying “Stop using email.” Email is super powerful and has its place. But SMS offers you a new, quick, high-converting way to connect with your customers that no channel can match.

Highly Targeted: Because buying lists is a no-no when it comes to SMS, you have to build your database of loyal customers. Being a permission-based marketing vehicle, your customers have to opt in to receiving these messages from you.

Yes, that means they essentially raised their hands and said, “I’d like you to connect with me on my most personal device.” The next best thing in my mind is if your customer invites you over for dinner. Mmmmm …

Cost Effective, Considering the Return: For all you marketing folk, this means Return on Investment (ROI).

SMS is way more affordable than you think. Many of you still spend a good part of your budget on direct mail. Again, it has its place in your marketing mix. But look at some of the costs associated with direct mail: You have postage, shipping, mailing lists, printing, packaging/fulfillment etc.

Direct mail depends on your volume. But, at the end of the day, you could be spending 20 cents to more than a dollar per piece. SMS could cost you pennies per message.

As a small business, a Yellow Pages ad could cost you up to $4,000 per year. Yes, people (especially older demographics) do still reach for their Yellow Pages when they need a business in a hurry, but it offers little to no engagement or tracking.

Depending on the size of your small businesses, incorporating SMS into your monthly budget could run you $25 to a few hundred bucks a month. The level of return will far outweigh your older, traditional media vehicles.

OK, so you’re sold on adding mobile to your marketing mix. Congratulations, it was a wise decision, trust me.

Here are 5 ideas for you to get started with SMS this year.

Mobilize Your Loyalty Program: Begin building your list of mobile numbers and send timely, relevant messaging to your customers. This can include special mobile-only offers, promotion opportunities, sales, new product or service offerings.

The more you can personalize these messages, the better. Many of you may already have some sort of loyalty program in place. I’m not asking you to do something totally new. Just add SMS as a component of the loyalty program to bring loyal customers back with relevant, high-value messaging.

Mobilize Your Coupons: Target, jcpenney and Bed Bath & Beyond are great examples of this. Each and every week, these businesses send mobile coupons to their mobile databases. It’s fast, cost effective and convenient for the customers who prefer to receive these offers to their phones. They just bring their phones to the store and redeem their mobile coupons at the point of purchase.

Eliminate No-Shows: Does your businesses depend on filling appointment slots? Doctors, Lawyers, Salons, etc. rely on filling appointments, but what happens when your customer misses an appointment?

Let me guess, you don’t charge for no-shows? Some estimates state that missed appointments for a single physician can be as much as $150,000 in lost revenue and additional labor costs. Multi-physician offices are even more drastic, estimating no-shows in a single year resulting in losses of over $1 million.

So how can SMS eliminate no-shows?

Why not send an appointment reminder via SMS within an hour or two prior to the appointment? Include a number for those who have to cancel. Better yet, let them reply to the message so that it updates your appointment software.

Oh no, someone canceled! Send out a message to your database to fill that last-minute appointment.

If you’re a salon, restaurant or massage therapist, you can send a message to your customer SMS list offering a savings opportunity to the one that fills that appointment slot.

Add SMS and stop losing money due to no-shows.

Engage Customers With Giveaways: Sweepstakes and giveaways have been great ways to build your SMS list in the early stages.

Offer up one big prize and let your customers text in to enter. Give away a monthly prize and give customers a reason to stay on your list.

Not only do sweepstakes entice customers to opt-in, but everyone loves winning prizes. Is giving away one or two free services a month worth generating hundreds of new opt-ins to communicate with moving forward?

Learn About Your Customers With Polls and Surveys: Did one of your loyal customers just purchase from you? A quick SMS message could let them provide valuable feedback on their experience.

SMS is a two-way interactive tool that lets customers provide feedback just by replying to your messages.

Are you thinking about releasing a new product or service? Are you a restaurant and looking to add a new menu item? Poll your audience to get their feedback to help make smarter decisions.

Bonus point: Tie a sweepstakes to your survey and award a lucky customer with a prize of some sort to encourage participation.

Now it’s on you.

These are just a few ways you could quickly begin to incorporate SMS marketing into your business. It’s important to remember that SMS without a strategy or goal will lead to poor results.

Make sure you understand why you’re adding SMS and determine measurements for success to continually optimize your efforts.

The trick is to not re-invent the wheel. You should look to mobilize initiatives you already have in place.

You don’t need to create a separate marketing initiative. You’re already doing what you need to do. Now mobilize it.