The mobile marketing world is starting to hit the fast lane and the news last month that many U.S. convenience stores are beginning to eye mobile phone coupons is worth keeping a close eye on. This new technology is allowing retailers to send text messages that include a bar code consumers can redeem as a discount store coupon. According to a recent report from business and technology news website Silicon.com, convenience store retailers are making plans to start using the new system later this year.
The concept is essentially turning cell phones into electronic wallets and making that device even more central to the lives of consumers. The benefits here seem to come full circle – mobile phone operators win for the aforementioned lift to their product, consumers have a new, more convenient way to shop and the retailer has a slick, targeted marketing tool that speaks in a very personalized way to their customers.
On its most basic level, the system works thusly: the shoppers receive a text message containing a barcode that can be scanned to score a discount on whatever goods the retailer chooses. The consumer might also be able to text keywords to get discounts on other goods they may want to buy – of course, the individual retailer will make these decisions.
Early returns within this world are showing surprisingly high redemption rates – as much as 5 to 10 times more effective than something like the typical loyalty card system. However , we are told the real key for the retailers and their manufacturing partners – is the data they can get about customers when they sign up, which will be used to target personalized marketing messages to their cells.
Again, this isn’t all going to happen by Father’s Day, there are still many kinks to work out and the jury is certainly still out on how consumers will ultimately take to some of this stuff. But one thing is certain, if it takes hold and your competitors are on it, it’s a call you may want to take. We’ll be taking a much closer look at this topic in an upcoming issue.
