Company News

Understanding the Basics of Mobile and Online Coupons

by webmaster — April 15, 2010

Clipping coupons is no longer the only way for price-conscious shoppers to get a good deal. Coupon usage is on the rise, and companies are responding by providing customers with convenient multi-media coupon offers that can benefit the consumer—and the retailer. By offering multi-media coupons, retailers are able to un-clutter their print ads by dispersing weekly items to other platforms while still collecting co-op money. Email and text message programs also enable businesses to continuously build their customer databases, laying the foundation for stronger and more enduring customer relationships.

Below we’ve outlined the basics behind four of the most popular outlets for multi-media coupon distribution and redemption.

1. Text Messaging Coupons

What are they?

Text message coupons are virtual coupons sent to a subscriber’s cell phone in the form of an image (barcode) or text message. To redeem the mobile coupon, a customer would need to show their phone to the cashier so that the bar code can be scanned, or show the text messaged coupon at checkout.

The Benefits

Customers always have their cell phones with them.
Messages can be sent out instantaneously, and the message is understood immediately.
Customers who don’t use their email regularly now have another way to receive discounts and deals.
The price structure for text message marketing is much lower than many other digital and print media.

Potential Drawback

Text messages can quickly become disruptive if the content isn’t consistently credible and useful. A text message-marketing program must earn (and keep) a reputation for being highly beneficial to the customer.

2. E-blasts Coupons

What are they?

E-blast coupons are direct email marketing messages that “blast” out to your database of email subscribers.

The Benefits

With email marketing, you can easily track coupon redemptions and monitor the open rate (the number of emails that are confirmed to have been opened by the recipient.)
Increased brand awareness. Customers can spread the word about your brand with the “forward to a friend” feature; the buzz builds exponentially, and you don’t have to lift a finger.

Potential Drawback

Email coupons cost more to send than text messages, and the customer must have a working printer in order to redeem their savings. Also, some customers may not ever receive the messages due to SPAM flitters or other email viewing issues.

3. Groupon.com

Every day, Groupon.com sends out an email featuring one incredible local deal. A subscriber who wants to get the deal must buy it before the offer expires at midnight. If it isn’t purchased by a minimum number of people, the deal for that day is canceled. Because Groupon guarantees the business offering the Groupon deal a minimum number of customers, the discounts that are offered are one of a kind. Groupon can generate a tremendous amount of attention for the featured business of the day and provides an incredible opportunity to tell a very large audience what sets your brand apart.

The Benefits:

Retailers can set a minimum number of purchases to increase their buying power.
People will often repost on their Facebook pages and forward the deals along to their friends.
The Groupon deal of the day is often a popular topic in conversation; it’s a story that people like to pass along.
A large audience is listening for what you have to offer.
As everyone must buy the Groupon during the same 24-hour period of time, you’ll know how many Groupons were purchased so that you’re able to anticipate demand.

Potential Drawback

Groupons do not have to be used the same day they are purchased, so it’s important to have a plan in place for controlling and managing the response your Groupon generates. You need to be able to allow for large-scale redemption that won’t hurt your bottom line or the customer experience.

A few ideas for Groupon.com offers:

Tell a story: use this opportunity to provide current and prospective customers with a powerful reason to believe in your brand. For example, if you want to highlight your catering services, create a Groupon that features your best catering offerings at a great price.
50% OFF a holiday dinner for four. Make sure you have margin built-in and enough staff to support a high demand.
A signature or commonly used product. Buy it by the caseload if enough people signup for your Groupon to help ensure that you maintain a margin

4. Coupon.com

What is it?

Coupons, Inc. is the “leading U.S. provider of consumer-printed coupon marketing and technology solutions.” (couponsinc.com). They provide a web module that can be built into store sites for easy management of vendor coupons.

The Benefits

Customers who typically base their purchasing decisions on the coupons they clip can now find all the coupons in one place—your website.
It’s easy to track coupon redemption with the built-in features that coupon.com provides.
A system for limiting how many coupons a customer can print is included.

Potential Drawback

Customers have to be invested enough to remember to go to the web site and wade through offers to find the ones they care about, rather than having a text or email coupon come to them with just a few really great deals. This is for die-hard coupon-clippers, and won’t attract new store visits from other shoppers.

Interested in developing a multi-media coupon program? Call or email me today.

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