Global Mobile Coupon Redemption to be 8 Times Paper by 2016
The global redemption rate of mobile coupons will average at over 8 percent by 2016; an eightfold increase over the best paper coupons campaigns, according to a new study by Juniper Research.
According to the “Mobile Coupons Whitepaper,” North American and Western European markets are now beginning to follow the same growth path as the Far East & China and by 2016 there will be over 600 million regular mobile coupon users worldwide.
The report found that mobile coupons have compelling advantages over their paper and online antecedents and are particularly strategic for bricks and mortar retailers in their quest to regain ground lost to online retailers during the internet revolution, as mobile coupons bridge the divide between online and physical retailing and can be individually targeted to drive traffic to stores.
The report warns, however, that the rise in mobile coupon redemption rates will only come after an initial period of experimentation by both coupon issuers and users, during which redemption rates may actually decrease slightly. After this period redemption rates will then start to rise steadily.
“As with all new mass markets there is an initial ‘shakeout’ period,” said report author David Snow. “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. ”
Other findings from the report include:
The integration of mobile coupons and mobile payment data is rare and an untapped opportunity.
Redemption values will exceed $43bn globally by 2016, driven by better targeting and mobile apps.