January 9th 2012
By 2016, mobile coupon redemption rates could reach 8% globally as more North American and Western European users get onboard.
HAMPSHIRE, U.K. â€“ A new report from Juniper Research suggests that the global redemption rate of mobile coupons will average upwards of 8% by 2016, an eightfold increase over paper coupons campaigns, according to a press release.
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. A mobile coupon can be individually targeted to drive foot traffic into 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.
According to report author David Snow: “As with all new mass markets there is an initial â€˜shakeout’ period. 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.