What's In Store For Retailers: Mobile Retail

Written by: Alan Berrey, VP of text and mobile messaging at SoundBite Communications

Americans send billions of text messages every day. They chat, tweet, blog, and search, but rarely do they think of "couponing." According to The Wall Street Journal, the recent economic downturn has sparked a resurgence in coupon usage (http://www.emarketer.com/Article.aspx?R=1007164 ). Yet, printed coupons continue to be a hassle. They are easily lost or forgotten, expensive to print and distribute and require physical handling at the point of sale.

Mobile technology addresses many of the issues that accompany traditional coupon programs, but provide numerous benefits for both consumers and retailers, including higher response rates.

Mobile coupons are:

1.   Affordable and effective: Text message coupons are more cost effective than traditional print and mailing alternatives. Text messaging also provides consistently higher response and redemption rates than traditional print, email or Internet coupons. It is not uncommon for text message coupons to be redeemed up to 10 times more than traditional counterparts. Additionally, a dual channel approach (i.e. email and mobile) allows the consumer to manage the coupon the way they prefer, thus maximizing the likelihood of redemption. The email or printed coupon can provide instructions for obtaining a mobile version, "To get this coupon on your phone text COUPON to 77053."
2.   Immediate and create urgency:  Mobile coupons require no print or mail time. They are delivered to the mobile device immediately and can be in the hands of millions of consumers just minutes after being conceived. Because coupons can be delivered quickly they can also expire quickly. And, since the goal of any coupon is to influence consumer behavior, mobile coupons can expire quickly creating a greater sense of urgency and chance of action.
3.   Green: Mobile coupons leave no carbon footprints and produce virtually zero environmental impact. There is no greener way to operate a coupon program.
4.   Mobile and viral:  Typically consumers clip coupons or print them off the Internet, then carry them to a store for redemption. Mobile phones are perfectly suited to conveniently retain and transport coupon data into the store. They are also great vehicles for sharing. Consumers have shown that they are willing to forward coupons to others if it is convenient. Text message coupons can be forwarded to a friend in an instant—as easily as their email counterparts, and offer an increased likelihood of being read and redeemed.
5.   Great reminders: Some marketers worry that eliminating the printed coupon will also eliminate the reminder. In reality, mobile coupons are psychologically tied to the consumer's mobile phone, making the phone itself a powerful reminder. Furthermore, if the coupon is not redeemed it can easily be re-sent via text message to the phone to remind customers of their initial interest.
6.   Two-way communications vehicles: Mobile coupon redemption provides retailers and marketers with an immediate two-way communications channel. No other coupon option offers a mechanism for saying "Thank you for your purchase" at the very moment the coupon is redeemed. Text provides a mechanism for consumers to ask questions or seek additional information, such as using a text-based store locator. Once a coupon is redeemed, the retailer can immediately send text-based customer service messages or even place a thank you call because they know who redeemed the coupon.

Rapid consumer adoption of many other mobile technologies and a resurgence of coupons in today's economy make now a perfect time to start mobile coupon programs. The technology is available and consumers are ready. The time will soon come when mobile coupons will rival or replace most other forms of coupon programs.