Savvy marketers know that a mobile coupon is worth nothing unless it’s offered in a larger marketing context. Mobile coupons are on the rise. In 2015, they were up by 18% and steadily rising this year. And marketers are learning to use them as part of their overall marketing plan supported by metrics.
Convenience stores and fast food restaurants are two of the success stories in mobile coupons so far. Both appeal to a younger generation, who are most likely to own a smartphone or other mobile device. Their products also come in at a lower price point that these consumers can afford and the low cost means that higher turnover creates greater revenue. In fact, 65% of convenience store shoppers redeemed a mobile coupon in five minutes or less after walking in, proving that customers are engaged in the moment.
Customers who frequent convenience stores want just that. They are often coming in to grab a quick snack or beverage. That’s why marketers have learned to target them upon entry through mobile loyalty programs, offers, and in-store signage. These customers will often receive a buy one get one free offer or a percentage off their purchase. As indicated above, these customers use these offers almost as soon as they receive them. Below are the top products purchased using a mobile coupon in a convenience store:
- Energy drinks – 43%
- Soda – 17%
- Juice -15%
- Coffee 12%
- Food 11%
- Candy 5%
- Water 4%
- Snacks 2%
While convenience stores have seen a boost by offering mobile coupons, so has fast food giant, McDonald’s. After several years of sluggish sales, they are seeing a rise in revenue largely attributed to the recent re-launch of their mobile app late last year. Since the launch in November 2015, there have been seven million downloads. The McDonald’s app includes everything from menus to nutritional information calculators but marketers are seeing a strong impact with mobile coupons on the app. Customers are coming in after downloading the app to redeem free sandwiches and McCafe drinks.
This direct correlation gives marketers hope for the future of mobile coupons. But smart marketers also realize that offering mobile coupons alone isn’t the solution. This incentive needs to be part of a marketing strategy and not just the only piece. There is clear value in mobile coupons for the future.
Find out how we can help your organization make the most out of mobile coupons. Contact us.