August Mobile Coupon Redemptions

Disclaimer The slide presented below was extracted from a monthly client report and only represents accounts under management. We don’t track redemption rates or ROI for clients on our DIY or Assisted mobile marketing plans. Also, the screen shots below are illustrative only; they are not meant to suggest any specific customers. 

August Redemption Rates, ROI

Firstly, let me point out in no uncertain terms, a 450% ROI is higher than average when it comes to mobile loyalty and promotional campaigns. My guess is that most of our customers realize an ROI of about 300%. Furthermore, not all businesses that send mobile coupons should expect to see a 14% redemption rate on their promotions.  Nevertheless, as the below slide illustrates, when campaigns are expertly managed, it is very possible.

Coupon Redemption Rate

Tips on Getting Strong Redemption

Mobile coupon and loyalty-award redemption rates will generally depend on various factors. But there are some best practices for maximizing ROI.

  • Compelling Offers
    BOGO offers, (Buy-One-Get-One’s) usually do great and are a win-win for the advertiser. On the other hand, a 5% OFF discount is unlikely to generate a lot of excitement.
  • Leverage Your Social Reach
    Your best clients should be following you on social media. So promote your offer there. Post a message with a direct link to a mobile coupon and allow fans to grab the coupon(s) to their phone via text message.
  • Call to Action with Scarcity and Urgency
    The fastest way to dilute an offer is to run it continuously or make its expiration date too far in the future. And when an offer is particularly meaningful, e.g., “50% OFF this Friday ONLY”, make sure you let prospects know your offer is valid “only while supplies last”.

Typical Redemption Rates

Most customers see mobile coupon redemption rates between 5-8%. This is actually very good when you contrast this to the average US coupon redemption of 1%. And of course, sending mobile coupons is much less expensive than printed ones and much more engaging. The key metric of course is ROI (return on investment). If you spend  $80 per month on mobile marketing services, e.g., SMS/TEXT coupons or loyalty programs, and book an additional $300 in sales, then you should be quite satisfied with your SMS marketing program.

Even Non-Retail Businesses Can Benefit

It’s not only traditional retail business that see benefits from using mobile loyalty programs. At Adverscan, we manage mobile campaigns for professional service businesses like: dermatologists, chiropractors, and dentists. They use the solution to promote value-added services – BOTOX®, Facial Treatments, Teeth Whitening, Massages, and so forth. Service businesses that reward customer loyalty should realize better rates of customer retention.

Loyalty Marketing

With a mobile loyalty solution, each time a VIP client visits the business (and spends some minimum for services), they can ‘check-in‘ at a self-service kiosk. When a customer reaches a predefined goal, i.e., a configurable number of visits, the business can send them a generous gift. Clients can also be automatically sent birthday gifts, which is a powerful way of staying in front of your best clients.


Would you like to learn about mobile marketing and how it might benefit your business? Contact us for a consultation.  We are located in the Raleigh area of NC but we serve clients anywhere in the US (or Canada).  Our DIY plans start as low as $12 with no term commitment and the 1st month is FREE so you don’t need to pay while you build your customer opt-ins.

About Mike Cancell

Mike has been a thought leader in the area of mobile communications and digital marketing for the past 20 years. He is the principal partner of Adverscan, a small multi-channel marketing agency located in the Raleigh-Durham area of North Carolina. When not daydreaming about skiing in the Rockies, wind surfing in the Caribbean, and dating supermodels, he can be found at home trying the patience of his wife and kids.