Consumers are increasingly using their mobile phones for shopping purposes. As a result, mobile coupons are one merchandising trend that is on the rise. In fact, a study by Juniper research predicts the number of mobile coupons redeemed is expected to reach 10 billion this year. Mobile coupons provide many benefits such as driving traffic to the stores and enhancing customer engagement and retention.
There are a variety of reasons why retailers are interested in offering mobile coupons to their customers. One reason is mobile coupons help drive foot traffic to physical stores. Also, the accessibility of mobile coupons enables an easier redemption process at the store. The mobility capability eliminates the issue and complication of cutting out and keeping track of print coupons. Another reason retailers are in favor of mobile coupons is because they are a great medium for gathering consumer data. The reason being mobile coupons are often received on phones but redeemed offline. The third and most important reason brands prefer mobile coupons is because they help build relationships with customers. Mobile coupons offer consumers discounts that add value to their life and are available right at their fingertips. These coupons are a great way to communicate with consumers and offer a more personable way to do so. The convenience of mobile coupons is another key factor contributing to engagement with the consumer.
Evidently, there are several benefits of mobile coupons and many reasons why retailers are adopting this trend. By 2014, the number of expected mobile coupon users is predicted to increase to 52.3 million a year (via business insider). Therefore, it is imperative retailers incorporate mobile coupons in their marketing strategy. Windsor Holden, research director at Juniper Research, stated, “There’s recognition amongst retailers that mobile isn’t just something that they ought to do, it’s something that they have to do if they wish to remain competitive” (via mobile commerce daily).