For decades, traditional coupon marketing has helped advertisers to attract new customers and consumers to cut household costs. However, a surge in mobile devices shifted the landscape for promotions and offers. It has transformed coupon marketing from print to digital. Though many retailers and marketers today still benefits from paper coupons, the rapid increase in the number of Internet users worldwide has helped businesses to skyrocket their sales through mobile coupons.
Mobile vs. Printed Coupons Redemption Rates
According to Mobile Coupon Consumer Research Report of 2018, mobile coupons had a growing preference of (47%) over paper coupons (53%). Another study by RetailMeNot and Placed finds that 42.8% of consumers use mobile apps when seeking out tickets, while 35.9% look to the print.
It indicates that digital coupons are almost at parity with printed cards, and this trend will continue upwards for electronic platforms.
Why it is Essential to Improve Digital Coupon Redemption Rates
Businesses develop digital coupons and distribute them across platforms. However, they miss the most critical part of coupon marketing, which is, improving the redemption rates.
The increase in coupon redemption rate helps:
- To measure overall marketing program satisfaction
- To check how valuable the rewards are
- To enhance purchasing behavior
- To indicate the marketing program’s simplicity and ease of use
How To Improve Mobile Coupon Redemption Rates
- Send coupons at the right time: When you send discounts codes at the right time on users’ devices, the chances of getting the ticket opened, read, and redeemed increases. Determine at which time your consumers get more active on their mobile devices and analyze their behavior patterns. This process will help you to pick up the perfect time to send mobile coupons.
- Set expiry date: You can spark customer engagement by setting the expiration dates for coupon redemption. Moreover, it will help customers to know the time limit for getting their rewards. Study the type of compensation you are providing, your customer base, and then set a well-measured reward expiry conditions. It will improve conversion rates and prevent causing customer dissatisfaction.
- Make effective content: Send clear messages of your rewards and their value for the customers. If the communication lacks proper information or is complicated to understand, then it may result in low redemption rates. You can even create a page on your website or provide help in mobile apps to consolidate the information. Include terms like ‘members-only’ or ‘only for selected users’ and more to make the customers feel special. This strategy will help to boost redemption rates.
- Send reminders: If you continuously face low redemption rates, then there is a chance that your customers are not well aware of your loyalty programs. You should send reminder messages to users, which can comprise their current points balance, info about your reward program, dates, and clear call-to-action.
- Be consistent: Remember to send rewards on customers’ mobile devices timely. New service or product offerings, openings, and even seasonal offers can be useful to capture the attention of users. Make a calendar according to your market trends, upcoming festive seasons, and customer interests to send promotional texts and coupons accordingly.
Coupons are a powerful strategy for brands and can perform as a purchase trigger. Digital tickets are less expensive, easy to distribute, and more convenient to redeem than printed coupons. However, you need to monitor the loyalty program’s performance, analyze market trends & customer needs, and determine the areas that restrict the mobile coupon redemption rates. To address this, you can leverage suitable smartphone coupon app development services to get maximum engagement and revenue.