75pc of mobile shoppers redeemed mobile coupons in 2013: Report
Shoppers are continually upping the ante for retailers when it comes to mobile expectations, according to a recent study from Key Ring.
The study found that mobile coupon redemption is up 5.3 percent year-over-year, with 75.3 percent of mobile shoppers having redeemed a coupon from their mobile device in 2013. Additionally, 80.4 percent of shoppers said their perception of a retailer would improve if the retailer offered mobile deals and coupons.
“Many retailers are still adopting the ‘build it and they will come’ philosophy when it comes to defining their mobile strategy — i.e. we’ll build an app and our customers will find us,” said Chris Fagan, CEO of Key Ring, Dallas. “Unfortunately mobile is much more complicated and the app stores are littered with unused apps.
“You have to focus on creating real value for the consumer, and if you’re successful they will find you,” he said. “Unfortunately it’s difficult for most retailers to create a very strong mobile value prop considering building consumer mobile plays is not one of their core competencies.”
As consumers spend more time on their mobile devices, retailers need to figure out how to meet their shoppers where they are and in the way that they want. It is not enough to simply throw an app in the app store and assume consumers will find it and value it.
Key Ring’s study surveyed more than 25,000 mobile shoppers to see exactly what they are looking for when it comes to mobile shopping.
Not surprisingly, one of the biggest values consumers are looking for on mobile is saving money. Shoppers want mobile coupons, mobile deals and mobile sales.
Of the respondents, 50.9 percent had digitally saved a coupon to a store loyalty card in 2013, representing a 8.5 percent increase year-over-year. Coupon redemption frequency is also increasing, with around ten percent more consumers redeeming mobile coupons once per week.
“It’s a combination of many factors – there’s more coupon content available, retailers and specifically sales associates are becoming quite comfortable redeeming a coupon from a mobile phone, and probably the most fundamental change is that the consumers are becoming very familiar with how to use their smartphone to find in-store coupons,” Mr. Fagan said.
More than half of the respondents said that they would be more likely to look at a circular if they could access it on their phones.
Key Ring found that 48.7 percent of mobile shoppers were between the ages of 35-54, 62.3 percent were female and 68.7 percent were married.
These shoppers also like to make lists, with 46.3 percent making lists on phones or tablets.
Additionally, mobile shoppers are highly influenced by mobile ads, per the study.
Sixty-five percent said they add products to their shopping lists as a result of seeing a mobile ad. Forty-seven percent tried a new consumer-packaged good or brand as a result of seeing a mobile ad.
Consumers are also using their phones as a tool in-store, with 71.5 percent using the Key Ring app while shopping and 47.9 percent using it while waiting in line.
“In 2014, I’d say focus on creating the best in-store experience as possible and leverage mobile as a channel to drive customers to your locations,” Mr. Fagan said.
“Instead of wasting millions of dollars on trying to create your own mobile networks, instead focus on figuring out where your consumers are on mobile and then provide them meaningful content that will help drive them to the store,” he said.
“Your consumers will respect you for understanding their mobile preferences, and ultimately that leads to more transactions.”
Rebecca Borison is editorial assistant on Mobile Commerce Daily, New York