If you are not aware of the concept, your mobile phones GPS monitors your current location and will send you coupons for products/services nearby. For example, you could be walking passed Starbucks and ‘ping’, you receive a voucher on your phone for 20% off a cappuccino. You’re in a store looking at the shirts and ‘ping’ – buy 2 get one free. The promoters claim that it’s a win-win situation. You get a discounted coffee and Starbucks make an extra sale (as you were walking passed anyway) or you got a discount on 3 shirts and the shop made extra sales.
But is it necessarily a win-win situation? Perhaps you were going to Starbucks anyway but just picking up a newspaper first or had planned to buy 2 shirts and now you had been gifted a 3rd.
There can be no doubt that smartphones are fairly ubiquitous and their users moving from the initial gimmick apps to using them intelligently to save time, effort and money. This, as with many new developments, has taken off in the land of Marketeers, US and a recent survey showed:-
- 76.4 percent browse or look for a product or service on their smartphone or tablet
- 75.0 percent use their device to locate a store or store hours
- 48.9 percent research specific products
- 45.7 percent read customer reviews
- 42.2 percent have used their smartphone or tablet as a coupon (scanning a bar code, showing a text to a cashier, etc.)
- 39.7 percent have made a purchase directly on a mobile device
- 36.2 percent have scanned a QR code
02 Media recently launched Priority Moments, a daily deal program offered exclusively through mobile differing from Groupon as they claim ‘ it’s based off an app that recognizes location, Priority Moments offers our customers unique experiences in their preferred location that can then be redeemed in-store with the mobile device’.
So, is it a win-win situation or is it just giving discounts (and bottom line profit) away unnecessarily?
Well, like all marketing it’s try it in a small way, analyse the results, tweaking, try in a bigger way, analyse, tweak again and then roll it out.
One thing’s for sure, discounts, coupons, incentives are part of modern retailing and you have to find the route that works for you.