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How to best use mobile mCouponing marketing

How to best use mobile mCouponing marketing

By Ariya Priyasantha, Head of Ticketing & Coupons, 2ergo

The business case for mobile marketing has become extremely convincing, with some very impressive reports of  huge ROIs from various leading brands.  Many recognise that the mobile phone as a marketing medium has become a very effective way to reach a consumer base which is increasingly on the move and engaged with the mobile handset.  Many brands are moving rapidly ahead in the game with their mobile strategies in line with this growth and are now investigating how the various mobile marketing offerings can be tailored to their own needs.

A particularly popular mobile marketing strand is mobile couponing or ‘mCouponing’.  This has the potential to deliver ROI significantly in excess of traditional paper coupons.  Mobile coupons will generate £4bn in global redemption values by 2014, according to Juniper Research, and a recent Exposure2 report shows that Mobile coupon redemption rates often exceed 50%. Paper coupons typically have a redemption rate of just 0.2-2%.

As well as higher redemption rates, mobile coupons offer many other advantages over paper alternatives, including better security and encouraging impulse purchases. It is also a useful customer acquisition tool for collecting redemption data and distribution, as users will often forward coupons on to friends. Using mobile distribution can also create brand loyalty through coupon reward points systems and develop.

The redemption stage of the couponing life-cycle also holds strong value.  Mobile customer relationship management (mCRM) databases can be enriched with lifestyle and purchase data allowing organisations to build a more detailed profile of their customers, which can be used for future marketing and promotional campaigns.  

Beyond the mCoupon

The beauty of mobile marketing is in its highly scalable nature.  Your campaign can start off on a small scale with a couponing strategy and broaden its capabilities and reach once you are satisfied with the corresponding returns.  Once the benefits from an mCouponing delivery are clear you can move on to develop a fully rounded mobile campaign and achieve an effective mobile integration with your marketing strategy.  

There are three crucial phases to consider in order to add value through the mobile medium:

Phase 1: Customer Data Acquisition

Add simple mobile engagement campaigns to your existing strategies to help build a mobile CRM database. Simple text-in campaigns for an immediate in-store offer is a good place to start – all offers redeemable at the point of sale (POS). More advanced campaigns could include oving your existing loyalty card schemes onto mobile – enabling customers to sign-up up on their phone rather than fill out a lengthy form, check their points balances, redeem points against gift vouchers and forward to friends.

Phase 2: Generate Repeat Business

Use insight gained from your mobile CRM database to conduct tactical marketing.  Based on your customers’ previous behaviour, you can use tactical mobile coupons to encourage past customers visit stores again. Keep in touch with your customers by using mobile newsletters introducing new product ranges.  Promote viral marketing by getting your existing customers to recommend it to their friends.

Phase 3: Loyalty

Build a regular mobile relationship with your customers, communicate previews of new products/services on mobile using MMS and mobile video streaming. Be able to identify your profitable customers. Enable these customers to receive exclusive VIP offers from third parties, such as spa days and cinema tickets, with the communication delivered on mobile.

This three phase approach is made considerably easier if you use an end-to-end mobile marketing offering, which can be integrated into your current marketing activity. Using a fully comprehensive mobile marketing solution allows you to use live real time reporting to audit and prove ROI. It also allows you to run multiple campaigns at once from one interface and build insight into lifestyle and purchasing habits from redemption data.

Today’s cutting edge mobile marketing techniques are able to drive registrations for follow on marketing and increase customer revenues in a way that was previously unimaginable.  With the ability to integrate with other marketing activity such as DM or advertising, you can use redemption data to easily quantify the success of your campaigns.  

This and awareness of the need for first mover advantage should make the mobile marketing proposition an easy sell when attempting to get internal buy in and budget sign off.

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