HAMPSHIRE, U.K. — Mobile couponing is expected to greatly increase in popularity this year. According to a new report from Juniper Research, the number of discount coupons redeemed through mobile and tablet devices is expected to reach 10 billion this year, up by more than 50% on last year.
According to the report, innovative retailers are increasingly seeking to offer mobile as a delivery channel, both as a means of driving retail footfall and to enhance consumer engagement and retention. It pointed out that while mobile still accounted for a comparatively low volume of coupons issued, retailers had been encouraged by the markedly higher average redemption rate of mobile coupons (10%) when compared to traditional print media and PC coupons (typically 1% or less).
Furthermore, the report observed that mobile couponing offered retailers the opportunity to marry their digital and physical assets.
However, the report stressed that it was critical for retailers to ensure that such coupons had a time-based element, noting that a number of offers had gone unintentionally “viral” leading to brands being unable to service the demand for their products.
The report also found that retailer reluctance to upgrade POS (Point of Sale) terminals for authentication and redemption is creating a bottleneck, effectively suppressing the deployment of mobile coupons.