More merchants embrace mobile coupons

Research group predicts more than 300 million mobile coupon users globally by 2014

As cell phones become appendages that many people can't live without, businesses are increasingly eyeing them as prime real estate for their marketing and advertising messages.

Whether it's to build a brand, boost business or reward loyalty, more merchants are adopting mobile marketing strategies to tap into the cell phone's power of immediacy.

"It's cool," said Kristen Palestis of Plantation at a Jamba Juice in Fort Lauderdale recently after she opted in to receive a 20 percent coupon on her cell phone.

"I'm spending less money, and it was real easy," said Palestis, 25, who used the coupon to buy a smoothie.

Palestis received the coupon within seconds of texting a special five-digit code from her cell phone.

Retailers' mobile marketing messages can include text messages with numeric 'short codes' that customers dial to receive a promotion, bar-coded digital coupons, Web page or website links and display advertisements.

"We know the most effective way to reach the customer is to be where they are," Jamba Juice spokesman Damon Miller said. "For our customers this means both on the Internet and on their mobiles."

Since September, Jamba Juice's 20 South Florida locations — 22 statewide — have been testing a text message campaign that invites customers to sign up for offers on their mobile phones.

Getting special offers quickly into the hands of the consumers who are most likely to use them is what Jamba Juice and others are striving for.

These mobile social users, as they're called, represent 11 percent of American online adults, but their ranks are growing, according to Forrester Research Inc. They're more likely to respond to ads on their cell phones, buy mobile content and services such as ringtones and access the mobile Web.

"We've seen fantastic results both in opt-ins and redemptions of follow-on offers," Miller said.

Jamba Juice, a national chain of more than 700 smoothie stores, plans to roll out the campaign to other markets this year, he said.

Companies that embrace mobile marketing know they have to be careful not to abuse the access consumers have granted, so permission-based text message offers are becoming the standard.

Trade groups like the Mobile Marketing Association in New York have set guidelines for marketers that are designed to protect the consumer, said Jeff Michaud of 3Cinteractive in Boca Raton, a mobile technology firm.

These include opt-in, opt-out and message delivery frequency standards, he said.

Worldwide the number of mobile coupon users is forecast to triple by 2014 to more than 300 million people, according to Juniper Research.

Although usage is still relatively nascent in the United States, the mobile applications revolution is fueling growth of coupon specific services.

During the recent holiday season, many tech-savvy consumers used mobile shopping apps to get coupons on their smart phones and comparison shop.

...Merchants continue to test the water, many motivated by cost efficiencies. Experts say e-coupons have higher average redemption rates — 5 percent to 15 percent, compared with 1 percent or less for print coupons.

This month JCPenney is rolling out a mobile coupon program nationwide after doing tests in 16 stores in Houston, spokeswoman Kate Coultas said.

In the Northeast, Wendy's International also is testing a mobile coupon program.

Chick-fil-A recently added a 'Text Insiders' program on its website for fans to sign up for offers on their cell phones.

Dunkin' Donuts could be next if it takes a cue from Fresco Development Group, a Coral Springs franchisee with seven Miami-Dade County locations.

Last year Fresco sent a free iced coffee coupon to consumers living near its stores who'd already opted-in for promotional text messages.

This was done to generate buzz and learn more about the consumers' demographics and shopping psyche, co-owner Scott Ball said. "We had very good success with it."

Ball, who sits on Dunkin' Donuts national marketing steering committee, said the chain is considering launching a program nationwide.

I really hope this blog has convinced you text marketing is a great investment in your business. Here are a few links to get you started!

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