Mobile Couponing: With SMS to a higher conversion rate

Day by day, we are confronted with more and more advertising messages. The logical consequence: If I want the attention of my customers, I have to stand out from the crowd. Here’s why you’ll find out why SMS helps you in mobile couponing.

Mobile Couponing: From the mailbox to the smartphone

It was only a matter of time before vouchers – the classics of customer loyalty – also felt the trend of digitization. First through the e-mail, now through the smartphone and the associated possibilities such as apps and messenger services.

As it turns out, this development is well in the sense of end users: Recent studies have shown that already 36 percent of customers prefer to send vouchers via SMS and messenger to their smartphone.

Bad times for direct mail and emails, good news for businesses. With SMS, you can not only reach your customers in a targeted manner, the campaigns can also be set up and sent faster (less than an hour from creation to dispatch), are cheaper and moreover measurable.

Each SMS voucher can track whether it has been received, opened and redeemed.

SMS is dead – long live SMS!

What is the advantage of an SMS over any other messenger? SMS can receive any mobile phone. You do not have to worry about whether the recipient has WhatsApp, Threema, Facebook Messenger or one of the many other messengers installed.

You send a text message and know that it arrives. Sometimes it can be that easy. And: Even Grandma’s old bones (yes, they still exist) are able to receive SMS.

Especially when sending mass mailings such as mobile vouchers, this is a decisive advantage over other messenger services.

From a business perspective, you do not have to deal with many different channels. You just dump the message over an interface and the rest goes by itself.

SMS vouchers in practice: 13.5 percent conversion rate 

The results of the SMS coupons can be seen in the practical example of the Olav Thon Group (OTG).

The group is the market-leading operator of shopping centers in Scandinavia and achieved a conversion rate of 13.5 percent in the first test run in Norway.

More than 2,300 people redeemed one of the vouchers received via SMS during the three-day promotional period.

The conversion rate for issued paper and e-mail coupons averaged less than one percent.

OTG wanted to know why that was and learned through a survey of customer club members: The majority had the coupons at the right moment just not there. A test should show whether vouchers sent by SMS on the smartphone would solve this problem.

Of 18,197 selected customer club members, more than 17,500 (96.6%) received the Welcome SMS with the link to the Mobile Coupon Booklet, a collection of multiple coupons.

Of these, 32 percent clicked on the link embedded in the SMS and opened the booklet. Again, 42 percent of the vouchers received were redeemed within the three-day promotional period at a participating OTG shopping center.

The cost of the test was about 40 percent lower than what OTG would have cost a similar action with its paper counterpart. 

OTG uses the Mobile Coupons solution from the messaging provider LINK Mobility for sending the SMS vouchers. In addition to the voucher via SMS, the group offers further solutions to simplify mobile customer contact.

For example, they allow customer surveys and the payment of bills directly on the smartphone. 

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