47pc incentivized to try a brand when receiving a mobile coupon: report
Mobile coupons are successfully encouraging consumers to try a new brand, according to a new report from RetailMeNot.
“The State of Digital Coupons” survey conducted for the Austin, TX digital-coupons marketplace by Forrester Consulting, found that nearly half of those surveyed (47 percent) are incentivized to try a new brand when receiving a digital coupon on a smartphone. Nearly seven in 10 (68 percent) surveyed strongly believe that digital coupons have a positive impact on a retailer’s brand and 68 percent feel that coupons generate loyalty.
The findings underscore the degree to which shoppers have grown to like the convenience that digital coupons provide and the ability to share them with friends and family.
“Shopping can be very stressful for anyone and it starts with getting ready to leave the house – rushing around making sure you have your keys, wallet, coupons and, most importantly, your mobile phone,” said Bruce J. Hershey II, vice president, mobile strategy, with Chicago-based Vibes.
“But let’s say you forget your coupons and you drive all the way to mall or store, find what you’re looking for and check out, to only find out that you left your coupons at home. Then the associate says, no worries, if you join our mobile club you can save even more.
“Right then, the consumer is happy and feels like the brand cares about him/her enough to make their loyalty program digital/mobile. It is a win-win for both the consumer and the brand.”
Of consumers surveyed, 64 percent said a digital promotion or a coupon often closes the deal if they are wavering or undecided on making a purchase. Fifty-nine percent of respondents stated that out of all the different types of promotions a retailer can employ, digital coupons still sway them the most when it comes to influencing a purchase decision. Second to digital coupons, sales are preferred by 28 percent of those surveyed.
The survey also showed that digital coupons create a sense of urgency for consumers.
Receiving a deal or savings opportunity via a digital coupon can be the tipping point for a consumer to click “buy” online or to walk into a store and make the purchase in person.
Nearly 80 percent of respondents agreed that digital coupons close the deal for them when undecided on a purchase. Once a consumer receives a digital coupon, most are redeemed within several days.
Consumers also are likely to spend more when redeeming digital coupons from smartphones, according to the survey.
Fifty-five percent of smartphone coupon users will spend more money during their online or in-store visit —the majority at least $25 more. Additionally, 77 percent of customers will spend between $10 and $50 more than anticipated, and 17 percent will spend an extra $50 or more, according to the survey.
“I think it’s very likely that consumers spend more when redeeming digital coupons on their smartphones, but feel this is primarily because shoppers that are doing this are typically more engaged on the shopping trip,” said Bill Bishop, chief architect with Brick Meets Click, a Barrington, IL-based retail and technology consulting firm.
”They probably therefore would be spending more anyway versus an average trip.”
Michael Barris is staff reporter with Mobile Marketer, New York.