driving sales with digital coupons
DESCRIPTION
Did you know that 16.5% of mobile phone users in 2013 will use mobile coupons? And that digital coupons have 10 times the redemption rates of traditional coupons? If you're not using digital coupons, you're leaving money on the table. Learn the ins and outs of creating and sending digital coupons for mobile, including web coupons, QR codes, text coupons, and email coupons. (These slides accompanied our August 14 live webinar on digital coupons.)TRANSCRIPT
Katherine Raz, Community Manager @ Signal Questions? • Type your question in during the webinar • Tweet @Signal or use hashtag #GetSignal • A recording of this webinar will be available tomorrow
at YouTube.com/TheSignalhq invite others to join: JoinWebinar.com code [129-861-947]
• Why use digital coupons? • Advantages of digital coupons for retailers • How digital coupons work • Controlling redemption on digital coupons • Example digital coupon program customer flow • Determining digital coupon ROI
Signal is an all-in-one marketing platform where businesses can manage: • Email newsletters • SMS marketing • Social media publishing • Content tools (landing pages, short URLs, QR codes) and promotional
tools (sweepstakes) for building your customer database • Customer database, including tracking engagement across channels • Sign up for a free trial at Signalhq.com
About Signal
Why digital coupons?
itsgreg, via Flickr
Consumers want them • 2013 YouGov study found: 65% of
consumers are open to receiving offers on their mobile phones
• 51% of consumers want offers that
provide discounts and are not interested in receiving advertisements that don’t offer any type of discount or offers
% of mobile phone users using coupons
9.5% 13.5% 16.5%
2011 2012 2013 Source: Microsoft Tag study
How do coupons help my bottom line?
They help build your lists! • Digital coupons can be followed by an
opt-in prompt • Customers who may otherwise not join
marketing lists will when presented with an opt-in incentive like an immediate coupon
• Like print coupons, they can be
distributed outside your locations • They capture data
• 2011 Knowledge Networks study on
digital coupons for CPG found that 46% of digital redeemers were prior non-buyers of the product, compared to 34% for traditional print coupons
lynnfriedman via Flickr
Digital vs. traditional
StockMonkeys via Flickr
How digital trumps print • Digital coupons attract more new buyers
than print coupons by a margin of 35% (Knowledge Networks)
• Digital coupon printers are 35% more
likely to have a household income of $75K+ and 17% more likely to have college or advanced degrees (360i)
• Digital coupons have higher redemption
rates than traditional coupons • Digital coupon impressions are trackable
• Digital coupons are often cheaper to
send > cost to send them can be directly related to redemption
Why retailers love digital coupons
Better targeting, lower cost • People who receive them are already
opted in to your list -- paying to reach them makes more sense
• Print costs are increasing while
readership dwindles, especially in younger age groups
• Mobile coupons can be personalized
{{first_name}} and segmented based on any data you collect
• Mobile coupons work in real-time (90%
of SMS recipients read their text messages within three minutes)
kevinomara via Flickr
How do digital coupons work?
stuckincustoms via Flickr
How people prefer to receive digital coupons
Source: Microsoft Tag
Customers scan a QR code
QR code links to mobile- optimized landing page that contains web coupon
Keeping tabs on coupon & QR code stats
Text to get an in-store coupon
Sample call to action Join our text club! Text KEYWORD to SHORT CODE to receive an immediate $10 off your purchase today. These types of coupons are great if you’re trying to build your SMS list. The first prompt will subscribe them to your SMS list, followed by a post opt-in message that contains your coupon.
How to set up your post opt-in coupon send
PRO TIP: You can also insert a link to a web coupon here by clicking “insert coupon,” but keep in mind only smartphone users will be able to view it.
Email customers a mobile-optimized coupon
… or email a link to a web coupon
Use web coupons to: • Control view limits and set dynamic expiration dates • Personalize coupons to the individual • Track analytics
Send an SMS coupon
3 ways to serve up text coupons: • Use a non-unique code and include a static expiration
date • Insert a link to a web coupon • Use a unique text coupon code that changes for each
recipient
Share coupons via social channels
But how do I control redemption?
chuddlesworth via Flickr
Send individual coupon codes
Upload a database of unique codes Each text you send with the {{coupon.code}} tag will populate with a unique code for the individual.
Set expiration dates
Create view limits
Use timer countdowns
How do we integrate with our POS?
jojakeman via Flickr
Show the cashier
manhat64 via Flickr
Coupon codes online
nycarthur via Flickr
Use unique coupon codes, or a single code that activates a discount.
Scan a barcode
herzogbr via Flickr
Not all POS scanners can scan barcodes displayed on LCD and LED screens. Be sure to TEST YOUR POS before sending out barcodes without a backup code that can be manually entered if not scanned off the phone.
Sample coupon marketing flow
Promotion prompts entry Customer
opts in
Customer receives
immediate coupon
More coupon offers sent
Survey sent asking for
segmentation data
More coupon offers sent
A good “starter” coupon: birthday clubs
clevercupcakes via Flickr
PRO TIP: You can also use this feature to send coupons at any time increment after someone joins your list (one month, 6 weeks, one year)
How do I determine ROI?
amagill via Flickr
How much do digital coupons cost?
jdhancock via Flickr
Start by calculating the monthly cost of your digital coupon software. Your Signal account includes some messaging: • Text message coupons are
calculated the same as text messages
• Email coupons are calculated the
same as emails • Web coupons are just like landing
pages At $99/month, 5,000 SMS messages and 25,000 emails are included. Each additional SMS message is just a penny.
Calculating coupon redemption rate & sales
worldbank via Flickr
Coupon redemption rate (%) =
coupons redeemed (#) coupons
distributed (#) With your coupon software, you’ll know: • How many coupons were distributed? • How much did it cost to send the coupon? • How many people viewed or clicked the
coupon? Your POS tell you: • How many coupons were redeemed? • What was the average check total with coupon
redemption?
What kind of redemption rate can I expect?
flowerego via Flickr
Redemption rate varies by industry and by offer. • Kwik Trip gets 10-13% redemption on free
offers and 2-3% redemption on 50-cent coupons
• IHOP got a 10% redemption rate on a free stack of pancakes
• A 2010 Mobile Commerce Daily case study reported a 40% redemption rate on mobile car wash coupons
Free offers generate higher redemptions. Try internet searches for digital or mobile coupon redemption rate in your industry.
Twitter: @Signal or #GetSignal Facebook: Facebook.com/SignalHQ Blog: Blog.SignalHQ.com Ask our team about your marketing plan: [email protected] Next webinar: How to manage a social media sweepstakes Wednesday, Sept 11 at 2PM CDT Register: http://sgnl.cm/sweeps