Many retailers have been focusing on the way they optimize customer use of mobile phones, such as with mobile credit card payment processing equipment or with branded mobile applications that request user feedback. However, one use of mobile phones is catching steam more quickly than most others: the distribution of mobile coupons.
Mobile Commerce Daily recently reported the results of a study conducted by Key Ring, finding that mobile coupon redemption has been rising at a rate of more than 5 percent year-over-year. The report stated that over 75 percent of all shoppers using mobile phones had redeemed a coupon using their phone sometime in the past year. More significantly, roughly 80 percent of respondents noted that they'd be more likely to shop at a retail location if it accepted coupons redeemed digitally at its payment processing register.
Chris Fagan, CEO of Key Ring, suggested that this news illustrates how retailers need to offer consumers tangible value - rather than just bombard them with advertisements - if they want to achieve true engagement with mobile phone users.
"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," Fagan told Mobile Commerce Daily. "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."
Consumer spending ticks up as well
The use of mobile phones and mobile marketing may be helping to lead to an increase in retail spending. The Deloitte Spending Index, for example, recently increased to 4.3 in December 2013 from 3.9 the previous month.
"Economic fundamentals that influence consumer spending moved in a positive direction in the latest Index," said Daniel Bachman, Deloitte's senior U.S. economist. "Median home prices increased, while initial unemployment claims continued to fall. Real wages, which have remained stubbornly flat, increased slightly as well."
Alison Paul, vice chairman of Deloitte, then went on to note that retailers need to issue discounts wisely, as well as accentuate their new products, in order to drive sales while simultaneously preserving margins - thus offering a valuable insight to retailers who are looking to net large profits even while distributing cost-cutting coupons.
