Mobile coupon popularity is growing rapidly in the retail sector. One analyst firm, solely focused on mobile, predicts that mobile coupons redeemed will almost double between 2014 and 2019 to more than 31 billion. Initially, the move to incorporate mobile coupons into the mix of discounts available to consumers was driven by retailers wanting to provide a unique and improved consumer experience. In addition, a handful of retailers were looking for a solution that would limit their coupon liability exposure through the use of one-time-use mobile coupons. Today, a majority of retailers are interested in the ROI of implementing a mobile coupon solution as mobile coupon use is becoming increasingly popular with consumers. This is also driving the adoption of area-imaging (2D) scanners capable of reading QR codes and other coupons directly off the screen of customers’ smartphones.
Based on recent findings and more than seven years of experience working exclusively with retailers, CodeBroker measured redemption and ROI rates for retailers who use mobile coupons and found a significant payback to retailers who implement a thoughtful mobile coupon strategy. CodeBroker observed that a successful mobile strategy is dependent on several factors. Namely, the value of the offer, the level of consumer engagement with the brand, the sense of urgency the retailer creates with the promotion, and the mobile coupon delivery channel all play a role in the level of ROI the retailer experiences.
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“ CodeBroker… found a significant payback to retailers who implement a thoughtful mobile coupon strategy.”
• It is widely accepted that industry standard redemption rates for coupons obtained from Free Standing Inserts (FSIs) range from .5 to 2%.
• Redemption rates for coupons delivered via email are slightly higher at 2.7%.