When we last checked, the use of mobile commerce back in 2010 was about 3%. The numbers at the end of holiday season in 2012 rose up to 11%. In simple words, mobile commerce industry saw revenue recognition of $18.6 billion last year from consumer spending. Our sources indicate that at the end of 2013, mobile commerce will see its acceptance ratio go up to 15%.
Retailers such as Walmart in 2012 have introduced mobile coupons in some of its stores as part of the consumer in-store shopping experience. Walmart introduced Scan & Go program through which shoppers can clip coupons by tapping their smartphones and having the savings automatically applied when they check out. Mobile coupons in USA can also be seen in action at Target stores, Best Buy stores, Kohl’s stores, etc.
According to our analysis the main reasons behind why retailers and brands are offering mobile coupons include:
Digital Revenue Growth: e-retailers see an opportunity in acquiring customers and driving online sales through the launch of successful coupon campaigns. By the end of 2013, mobile coupon users will hit 53.2 million a year.
Consumers spend analysis: Mobile coupons help retailers track the buying behavior of the consumers. There has been a gap in integrating consumer spend online and offline. Through the rise of mobile coupons and usage, retailers can now bridge this gap and customize offers based on the consumer spend behavior and pattern.
Customer Engagement: Mobile coupons are an opportunity for the retailers to lock in their customers for a long time by appealing to their emotional and rational behavior. Retailers through offers can appeal to the rational behavior and through after sale service and customized offers retailers will appeal to the emotional side of a customer.
Increasing foot falls: Mobile coupons have the potential to lure consumers to walk into even stores which are remotely located. It’s a no brainer; increase in foot falls is directly linked with increase in store revenue.
Vaseem Khan is a founding member and a primary author at MEDICI. He is a Payments enthusiast and an avid reader. He loves being involved on initiatives related to Technology, Startups & Payments. He has been associated with companies like Gallup as a Management Consultant and Oracle as an Account Manager.