Mobile Couponing: Uses in Mobile Commerce Applications

As using a Smartphone has become second nature to consumers, it should come as no surprise that retailing companies are developing marketing strategies to engage their customers at this new and valuable touch point. The idea of couponing has been has been around for over fifty years, with print being the long running standard. The goal is simple, present value to a customer or potential customer to induce the purchase of a good or service. With the rise of the internet, companies then adopted this technology to allow for digital couponing, but a printed copy was still, in most, cases required. While the web greatly increased the amount of discounts offered to consumers, as well as the target marketing of products to customers based upon previous purchasing behavior, many companies saw the actual effects of these campaigns come in below expectations.

With the rise in business of customer/consumer mobile applications being deployed on Smartphones such as the iPhone, Droid, and Blackberry, many companies are taking mobile couponing to the next level. With the actual customer’s location available to the retail companies via the geo-location on their phones, savvy companies can target promotions and couponing down to a city block. Companies can look at events happening around the stores such as weather, and send targeted coupons and promotions to all customers in that specific region. As companies further mobilize their back office systems and push relevant information to customers, such as inventory levels by store location through innovative mobile solutions providers such as Smartsoft Mobile Solutions, the possibilities are endless.

Imagine this scenario, as it is coming in the not so distant future. A retail company’s merchandisers know that a new line of products that is adored by their customers is going to be released by their supplier. With shelf space at a premium, the old product line needs to move off the shelves rapidly in order to make room for the incoming products. The merchandisers have a view into inventory levels of the current product line not only by region or city, but down to the store level. Well, while this technology exists here is the twist… Now the merchandisers can search all customers within a defined location relative to a physical store, review those customer’s purchasing habits, as well as the product affinity of an individual mobile application user. The merchandiser can then rapidly develop a geo-targeted couponing campaign based upon real-time mobile analytics. The campaign is pushed to the company’s customers’ mobile devices during the application launch. The promotion can be targeted to individual buyer groups, giving the firm’s customers a targeted and compelling value proposition to encourage purchase. Users who bring in a coupon on their mobile device are 30% more likely to convert or purchase the promoted product or service. The beauty of the rapid advancement in mobile technology is the dual benefit for the business and consumer. As mobile technology and applications continues to advance, look for some of the following:

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