Mobile Coupon Redemption Rates to Reach 8% by 2016
Redemption rates for mobile coupons are projected to rise to an average of 8% by 2016, an eightfold increase over rates for the most successful paper coupon campaigns, according to a new report from Juniper Research. The study projects that by 2016 there will be 600 million regular mobile coupon users worldwide, with total mobile coupon redemption values exceeding $43 billion, compared to $5 billion in 2011.
Mobile coupons offer compelling advantages over paper and online coupons, particularly for brick-and-mortar retailers, because they bridge the gap between online and physical retailing and can be individually targeted to drive traffic to stores. The report, Mobile Coupons Update: Ecosystem Analysis & Marketing Channel Strategy 2011-2016, notes that integration of mobile coupons and mobile payment data presents a powerful opportunity that is yet to be tapped.
However, the rise in redemption rates won't take place until the current period of experimentation by both coupon issuers and users ends. "As with all new mass markets there is an initial 'shakeout' period," said report author David Snow in a statement. "North America and Western Europe are at this stage now. For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base."
For related content: Value of Mobile Payments to Nearly Triple by 2015, Hitting $670B
Mobile coupons offer compelling advantages over paper and online coupons, particularly for brick-and-mortar retailers, because they bridge the gap between online and physical retailing and can be individually targeted to drive traffic to stores. The report, Mobile Coupons Update: Ecosystem Analysis & Marketing Channel Strategy 2011-2016, notes that integration of mobile coupons and mobile payment data presents a powerful opportunity that is yet to be tapped.
However, the rise in redemption rates won't take place until the current period of experimentation by both coupon issuers and users ends. "As with all new mass markets there is an initial 'shakeout' period," said report author David Snow in a statement. "North America and Western Europe are at this stage now. For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base."
For related content: Value of Mobile Payments to Nearly Triple by 2015, Hitting $670B