Retail is changing. As younger and more tech-savvy populations enter your customer base, new behaviors and expectations are coming with them. A recent study found that more than 84% of consumers are now actively using their smartphones while shopping; spending an average of 15 minutes on the device during their time in your store.
The good news about these new customers, the study found, is that they are likely to spend 40-50% more during a trip where they are using their phone. Considering this finding, it seems only logical that retailers should aggressively pursue customers who are likely to use smartphones while shopping. But how do you gain a strong enough presence with this customer segment?
The solution is mobile coupons.
In 2014, approximately 16 billion mobile coupons were redeemed. By 2019, that number is expected to surpass 31 billion. Likewise, the number of shoppers seeking out and using mobile coupons is expected to grow from 560 million to more than 1.05 billion over the same span of time.
However, the retail industry has been slow to capitalize on the interest in mobile coupons. Fewer than 50% of companies are expected to be utilizing mobile coupons by 2017. That statistic is out of step with the number of customers who report that mobile coupons build brand awareness, generate loyalty, and increase the likelihood of them visiting a store.
Retailers may fear that offering an additional outlet of discounts will do more harm than good, but the data suggests otherwise. More than 77% of consumers spend $10-$50 more than they originally intended when they redeem mobile coupons. Retailers can also gain valuable insights into these customers by watching which items are most frequently purchased with mobile coupons, generating additional opportunities to communicate with customers about related items.
When empowered with deep insights into data at the transactional level, retailers can observe trends with mobile coupon redemptions and gain an accurate picture of ROI for marketing investments like coupon offerings. Salient Management Company has partnered with companies for 30 years to empower decision makers with a single source of facts so that data can be easily understood and delivered quickly enough to be acted upon in time to impact outcomes.
Learn more about Salient Management Company and our solutions for creating a smarter retail environment.