Typically vouchers offer a specific monetary value that can be used as payment for any products and service, while coupons allows a consumer to buy the product at a discounted rate or receive added value.
Unlike paper format coupons, the mobile versions are received and stored digitally on a mobile phone (or PC). Although they could be delivered in a 1D or 2D barcode format, in South Africa today they are typically delivered by SMS using a numeric code. The reason for this is that most retail point of sale (POS) systems cannot accept the more sophisticated 1D/2D formats which require dedicated scanners at POS.
One of the main strengths of a mobile coupon versus a paper coupon, according to Mobilitrix, is a greater distribution capability. Mobile coupons can be distributed more widely using online, print, radio, TV, outdoor or direct advertising opportunities. In addition a mobile coupon can be distributed more intelligently using customer feedback from questionnaires or delivered based on customer actions. The improved distribution is a key driver in ensuring higher redemption rates for digital coupons compared to traditional paper coupon.
According to Mobilitrix, there are considerable benefits to using mobile vouchers
a. Unique codes can be issued that are specific to a customer's mobile number
b. Vouchers are validated in real-time and can be blocked if necessary at the time of redemption at the POS
c. The coupon number is taken out of circulation once it has been redeemed, and this prevents re-circulation or re-use
Hardware or software requirements
If a 1D or 2D barcode coupon is used, most retail stores in South Africa will require new hardware in the form of barcode scanners. If an SMS format is used with a numeric coupon code, typically this can be captured into the POS without any hardware changes, some software upgrades to the existing POS might be required.
It is optimal that any mobile coupon campaign be integrated into different marketing channels and does not reside as a stand alone opportunity. The beauty of the mobile phone is that it can engage with any advertising medium using SMS, WAP, USSD or mobile apps. Mobile coupon campaigns can help achieve a variety of sales and marketing objectives including:
Other objectives may relate to:
Customer profiling and targeting critical to success
To increase the 2% redemption rate currently achieved using paper-based coupons, a more targeted distribution approach is required. The campaign should rely on more relevant data to intelligently manage the distribution process. This data can be captured and filtered by customer responses (to say a mobile survey), in store data (including basket items) or by store location that the customer visits.
Typically a mobile coupon should cost between R0.50 - R2.00 in the South African market place. That cost may be adjusted depending on campaign volumes, customer survey costs, data analytics and other services that provide valuable insights into the mobile consumers purchasing habits. This cost should include the issue, distribution and redemption of the coupon, although reconciliation and settlement may incur further charges, depending on the nature of the campaign.