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.
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