As all smart marketers know, tracking ROI is at the center of everything you do. As mobile marketing goes mainstream, how can you effectively measure the impact of your campaigns? Location can help. Marketers using location to localize promotions will not only increase the ROI of their campaigns but will make those campaigns easier to measure and more tailored for a better customer experience. And I don’t have to tell you that a better customer experience makes for increased loyalty and as such, increased share of wallet.
Mobile promotions and couponing are increasingly becoming standard practice. In a Mobile Commerce Daily article, Rimma Kats states: “Mobile coupons are disrupting the traditional print circular method of distribution as more marketers and retailers are incorporating them into their strategy to build loyalty, drive in-store traffic and possibly combat showrooming.”
Mark Walsh at Online Media Daily estimates that “by 2017, roughly three-quarters of promotions will be targeted toward mobile devices. That includes $9 out of every $10 spent on digital discounts, two-thirds of all digital couponing and almost all spending on online sweepstakes and contest spending.”
Last year we blogged about the benefits of mobile couponing to you and to your customers. To recap:
Advantages of Mobile Coupons for Customers:
- No scissors required. You can’t run with scissors, but you can run with your smartphone to redeem the coupon that just popped up!
- Less waste. Mobile coupons are digital, meaning less paper waste.
- Coupons will be fun. Before, coupons were reserved for household items, such as ketchup, cat food, and cleaning agents. Snooze. Now, coupons sent to you can have the variety of daily deal sites, with discounts on social outings and fun local events, all with seamless redemption.
- They will be targeted to YOU. Mobile coupons, like mobile advertising, will be tailored to you. For example, you can sync your phone to your loyalty membership program (club card) at your grocery store. Your purchase history can then be used to offer mobile coupons on products you may like, introducing you to new products. This is like the “Netflix Recommends” feature of mobile coupons, which has always lead to good discoveries for me.
Advantages of Mobile Coupons for Retailers:
- Secure. Mobile coupons can’t be duplicated.
- High redemption rates. Mobile coupons have redemption rates as high as 30%, vs paper coupon’s 2%.
- Excellent tracking. Instant access to who redeemed the coupons, where they were, and at what time.
- Instant insight into ad campaigns. Instantly see how successful a coupon campaign is and who it’s working with.
- Low Cost. Digital coupons are less expensive to distribute than paper.
- Enhanced data. Redemption data will be linked to purchase history and customer type, allowing for more precise research and future campaigns.
Mobile marketing allows a customer’s location to be a data point in determining which promotion to send and when. This allows for ads to be tailored to a customer’s real-time location, increasing open rates and redemption rates.
Mobile marketing, promotions, advertising and couponing isn’t going away anytime soon. Keep location at the center of your strategy to optimize both the ROI of your campaigns AND share of your customers wallets.