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Push & Pull
There are different approaches marketers can take when it comes to learning about mobile users. RegiSoft's Shlasky suggests that consumers can be asked to provide this information themselves. For example, he says, they can be asked to fill out a brief questionnaire when downloading an application or opting into a mobile campaign. But there are additional sources for useful consumer data. Bob Wesley, CEO of MobileLime, explained that by leveraging the transactional data collected by one of its clients (an upscale grocery store) they were able to effectively target the client's opted-in customers with personalized offers on many different items.
Targeting mobile users with personalized offers in this way helps to bring out a further distinction. After mobile users have opted into a coupon program, marketers can choose to 'push' certain coupons directly to the user's mobile device-- similar to MobileLime's program. Alternatively, they can choose to provide users with an opportunity to 'pull' for coupons when they are in a "shopping frame of mind" (as Cellfire does). hese two different approaches beg a very important question. Are mobile coupons better distributed through push or pull marketing?
"The great idea about pull technology," says Dan Miller, president of Movo Mobile, "is that the user has complete control." This level of control, he argues, makes mobile coupons less intrusive. In contrast, he thinks "the challenge of instituting a push technology program is that the user could potentially be saturated very quickly."
Notwithstanding the level of control, consumer adoption of mobile coupons faces a number of challenges. For one thing, pull marketing requires consumers to take the extra step of proactively seeking a coupon. Since part of the value of mobile coupons is their convenience, Miller cautions marketers against having too many "additional hurdles" that mobile users have to jump through. Moreover, as Acuff notes, mobile users are only just warming up to mobile coupons, and having to opt-in to each coupon could slow their receptivity.
Integration and Ease of Use
Mobile couponing also faces a couple of important logistical challenges. First there is the issue of retailer integration. The majority of mobile coupons are redeemed by a retailer which means that every employee at participating retailers needs to understand the redemption process. For a mobile coupon program to work, says Wesley of MobileLime, there needs to be "seamless integration at the point of sale." We all know how frustrating it can be to try to get a "free gift with purchase" and have an employee stare back blankly. When cashiers haven't been trained on new offerings, check-outs are delayed and it's a hassle for the consumer. Particularly when dealing with large retailers that have lots of employees, the process of coupon redemption needs to be as simple as possible. Otherwise, the whole "convenience" element gets a little lost.
There's also the question of mobile phone compatibility. Some of the more complicated mobile coupon programs require users to have an MMS or java enabled mobile device. As things stand, however, many mobile devices weren't built to run this sort of application and may not be compatible. Not to mention that a large number of mobile users simply don't yet know how to use these functionalities.
But there may be reason to be optimistic. "If you check your pockets or purse, you will more than likely find a mobile phone, rather than a stash of coupons," says Laura Marriott, executive director of the Mobile Marketing Association. "The mobile phone provides instantaneous engagement, from the brand to consumer, and is a perfect medium for the delivery of mobile coupons. The MMA has played a key role in the development of best practices that put the control in the hands of the consumer and ensure campaigns are transparent, fair, and consumer friendly."
Taking Stock
High response rates have generated a good deal of the excitement around mobile coupons. One could argue, however, that this may have something to do with the channel's "newness"--consumers aren't used to receiving coupons on their mobile devices. Once the excitement wears off we may see response rates come down a bit. Keeping them relatively high will be up to those marketers developing mobile coupon programs. As coupons become more personalized, their value to consumers will only increase. And that's a good thing-- without targeting, they could end up like paper coupons. And it's been a while since I responded to one of those.
Alan Chapell, CIPP, is president of Chapell & Associates. Read full bio.
