6 Steps for Improving Your Mobile Coupon Redemption Rates

As with other forms of traditional print media, paper coupons have been experiencing a steep demise over the past several years. That’s where mobile coupons come into play, offering a wide array of benefits over their analog predecessors. In fact, CodeBroker research reveals that mobile coupons are far preferred by all audiences these days but, particularly, by the millennial market—97% of millennial respondents say they would actively engage with loyalty programs if they could access rewards information from their smartphones.

That’s a ready-made opportunity to connect and compel this mobile audience to action.

So how can you leverage this trend to boost redemption rates of your coupons and drive online sales? Here are six actionable tips that you can implement now.

1) Create time-limited offers

Time-limited offers boost results. And, in fact, even if the offer itself isn’t time-limited, consumers are likely to act quickly to a coupon received via their mobile devices. CodeBroker mobile coupon research that surveyed 1,500 consumers shows indicates that 25% will act within three days and 60% within a week. That’s a great way to drive short-term spikes in revenue.

Savvy retailers can use time-limited coupons to help address normal valleys in their sales cycles. During typically slow times on-demand coupons that must be used within a limited time frame can drive dollars directly to the bottom line.

Survey asked consumers, “How quickly are you likely to use a coupon that you receive via text message?”

2) Don’t forget the reminder message

For those who don’t act quickly once they’ve received a mobile coupon, reminders can help. CodeBroker research indicates that reminders can increase redemption rates by as much as 70%. The prime time to send a reminder: two to three days before the offer expires.

3) Make coupon recipients feel special

Consumers like to feel special and your coupon offers can do just that, helping to boost redemption, engagement and loyalty. Providing better, exclusive offers to customers—or certain types of customers (e.g. based on recency or amount of past purchases) is a good way to create that sense of a “members-only” offer that has been shown to drive both sales and positive PR.

4) Consider the use of on-demand coupons

When those who receive coupons feel invested in the offer (e.g. when they’re requested a coupon in response to an ad) the odds of their redeeming the coupon go up. While redemption rates for mobile coupons are higher than those for print coupons, redemption rates for on-demand coupons, where customers take an action to access the offer, can exceed 60% redemptions within one week.

5) Keep content timely

Tying your coupon offers and messaging to current or seasonal events can make your offers more relevant and spur consumers to action. The idea is to capture the interest of your audience to ensure they see your offer. Text messages offer a convenient and real-time opportunity to do just that. Offers tied directly to what’s happening around them—e.g. hot weather is the perfect time to buy summer clothing, 4^th of July is a great time for red, white and blue-themed food and beverages.

6) Control the spread

One of the challenges with online coupons is the potential that they could be used multiple times either by the same individual, or by those they may share the coupon with. However, that pass-along potential can be eliminated. Research shows that single-use coupons not only help to protect retailers’ bottom lines, but they’re preferred by consumers who value higher-dollar offers they use once versus multiple-use offers with lower values. CodeBroker research indicates that this preference is significant—77% of respondents have this preference.

Finding Your Couponing Sweet Spots

Every retailer and every offer will be different depending on the product and service, time of year and target audience. Continuing to learn from their offers and how consumers and customers respond is a great way for retailers to stay on top of trends and audience preferences.

For additional tips on how to boost redemption rates with mobile couponing, download “Best Practices for Increasing Text Message Opt-Ins and Mobile Coupon Redemption.”