I have never been one to clip coupons from the newspaper or direct mail. Even when I took that rare next step of cutting out a coupon, by the time I wanted to use the coupon it was either at home or misplaced. As we become more tech-savvy and eco-friendly, coupon cutting is quickly being replaced with mobile coupons.
The New York Times recently reported on this topic, which sparked my curiosity on the new trend. Mobile coupons can be sent via email or text message directly to a customer’s mobile phone. That way, it is easily accessible for use all the time. Many innovative small business owners use mobile coupons to push last-minute deals or sales to their customers.
Effectiveness of Digital Coupons
In the first half of 2009 almost ten million mobile coupons were redeemed, a 25% increase from 2008. The convenience of mobile coupons is not only converting traditional coupon users, but also those who have never used coupons in their lives.
“People keep their phones on them all the time,” said Thad Langford, chief executive of the mobile-coupon site Zavers. “Even when people are sleeping, it’s right next to them, charging.” Many analysts believe that mobile coupons have a much higher redemption rate than its traditional paper counterparts. Coupon aggregate service Cellfire says its redemption rate for mobile coupons is 15 to 20% compared to a 1% redemption rate for paper coupons.
Aside from traditional retailers, service providers who offer perishable goods/services have found that mobile coupons can help them sell quickly. Have any of you small business owners tried using mobile coupons? If so, share your success stories!