The emergence and adoption of mobile couponing among businesses seems to mirror that of social media: Everyone is talking about it; few businesses are using it; and many don't understand how, why, or where to get started.
According to "The 2010 U.S. Local Mobile Advertising and Promotions Forecast," mobile coupon spending was $90 million in 2009 and is expected to hit $6.52 billion in the next four years. Yet despite this rapid growth, mobile couponing is still very much in its infancy.
Although most businesses are fully aware of the marketing potential of mobile couponing (namely its ability to reach customers anywhere, at any time, with any message), many marketers still have not found effective ways of harvesting that potential and transforming it into sales.
There are several ways that mobile marketing can increase your bottom line. Chief among them are the abilities to reach a large audience, increase the frequency that customers use your product or service, attract new customers, offset lulls in your business, and start two-way conversations between you and your customers.
Simply put, mobile marketing can do more than just increase sales for your business; it can also create more meaningful, lasting relationships with your customers. Here are five useful tips.
Apps are cool, but does your audience really need an app for that?
Since apps are the hottest trend right now, the first question that many marketers want to ask when stepping into the mobile arena is how they can "get an app for that." But the truth is apps have an incredibly limited reach, as only 17 percent of phones are smartphones. Meanwhile, virtually all handsets are capable of sending and receiving SMS, or text messages.
The simplicity of text messaging, along with its reach (SMS is available on nearly 100 percent of the 288 million mobile phones in the U.S. and 5 billion mobile phones around the world) make it the most effective medium for sending mobile coupons.
The redeemed value of mobile coupons is roughly 10 times greater than mail or newspaper distributed coupons and nearly 25 percent higher than printed internet coupons. But even if people decline to redeem your coupon, 95 percent of all text messages are read by the recipient. This means you're staying top of mind with your most valuable customers -- those that like you enough to opt in for your messages.
Boost business by giving current customers a reason to join the club
Since mobile marketing messages are permission-based, your current customers are the ones most likely to sign up for special offers. These people have already expressed a preference for your product or service, making them likely candidates for repeat purchases.
However, even though you are targeting customers that are already using your product or service, you will still need to offer them an incentive to opt in to receive your messages. One way to do this is to offer customers a reward while they are already engaged with your product.
An invitation to text a keyword to a short code is a welcome diversion when waiting in line to buy a movie ticket or if you're sitting in a car wash. This is a great opportunity to offer your customers an incentive for receiving your coupons.
Rewarding these core customers for their continued loyalty by sending exclusive mobile coupons gives them a solid reason for purchasing from you again and again.
Timing is everything
A good way to encourage a group of potential customers to act on your mobile coupon is to catch them on the move and create a sense of urgency. If you want a group of customers to grab a burger on their lunch break, for example, you should send mobile coupons at around 10 a.m. -- right when their stomachs are starting to growl and the office is discussing lunch plans. And to add a sense of immediacy to the deal, the coupon should expire at the end of the day or, better yet, after lunchtime.
Try launching your mobile marketing messages when your customers are likely to be with friends, family, or co-workers. Buy-one-get-one offers that require another person (buy an entrée, get an entrée or buy two tickets, get two free) will help introduce new people to your business.
Slow day? Text a coupon
Bad weather, holidays, and normal business cycles can all produce lulls in activity for your business. A well-timed special can turn that negative into a positive with unparalleled speed.
Text marketing campaigns can produce customers in a matter of minutes -- no other marketing medium can reach eyeballs as quickly as text messages. For example, send out a mobile offer for a free cup of chili when a snowstorm hits. Or if it's a slow night at the bar, free drink specials can put bring in customers within minutes.
Start a conversation
Another advantage that text coupons have over apps is the ability to communicate directly with your customers and empower them to interact with your business. Any time a customer opts in to receive your mobile coupons, it's important to thank them for inviting you to earn their business. Auto-replies are a must when sending text coupons as they are the first step toward creating more meaningful and advantageous customer relationships.
One way to start a conversation with your customers is to ask them what kinds of deals they are interested in, rather than just pushing a random deal on them. For example, a burger place can send a text that says, "Lunch deal of the day -- would you rather have a free burger or two free side items with the purchase of a combo meal? Text 'burger' or 'side' to vote." By asking your customers what they want, you aren't just learning more about them, you're creating a thread of conversation that will invariably lead to a more loyal customer base.
Making the most of your mobile coupons
- Text message offers are easy to implement and offer the best return. Don't waste your time (and money) on fancy things like apps unless there is a compelling business case.
- Reward your customers' loyalty by providing them with exclusive deals, and they will reward your business with their unwavering dedication.
- Activate your current customers to engage with new customers. Social media sites aren't the only ones capable of turning a marketing message into a viral campaign. A well-crafted and specifically timed text message coupon can encourage regular customers to bring in first-timers.
- Keep business booming by offering great deals during slow nights, weeks, or even months. Don't let inclement weather or a sudden downturn deter you from offering your customers great deals. Often, a well-timed coupon can give your business the jumpstart it needs.
- Ask your customers what they want -- they'll be more than happy to tell you.
Brad Herrmann is founder and president of Call-Em-All.
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