Recent research by eMarketer shows that in 2015 alone, mobile coupon users rose to 92.6 million, about an 18% increase from the previous year. So, not surprisingly, brands are placing big bets on mobile-based coupons and making them more readily accessible. Although the trend first gained popularity with retailers, many of which are constantly finding new ways to compete to offer the best deals, the restaurant and quick-service industries stand to benefit from mobile coupons as well. Results from our surveys in 2016 found that nearly 60% of customers make more monthly visits/purchases because of mobile coupon and loyalty programs. In another survey, brands said coupon delivery and redemption was their top mobile objective for 2017.
These trends provide a glimpse into the future and suggest the key mobile strategies and tactics restaurateurs must embrace in order to drive traffic and keep customers coming back for more. Here are just a few of those strategies:
1. Drive foot traffic—An increasing number of people are using their mobile devices to search for the nearest restaurants that offer specific menu choices or valuable offers. Eighty percent of diners are likely to try a new restaurant if it’s offering a promotion. Restaurants that implement mobile-based coupons will attract a larger share of these diners and compete more aggressively with other diners in the area.
Mobile coupons’ proximity marketing capabilities also help drive foot traffic. With mobile wallet coupons, brands can establish geo-fences around restaurant locations. Once a customer with a mobile wallet coupon is in close proximity to one of the restaurant locations, they will receive a lock-screen notification, reminding them of the available offer.
2. Amplify redemption rates—Again, your customers are tied to their mobile devices. A customer’s phone is hardly ever more than a few feet away—and if your coupons are mobile-enabled, they’ll be with your customers, too. Gone are the days of print-at-home coupons that get left behind or lost in a wallet or glove box. Restaurants can now enjoy the benefits of mobile coupons that consistently yield redemption rates nearly 10x higher than their paper counterparts.
3. Increase customer loyalty and lifetime value—Research from Opia has found nearly 45% of customers who recently participated in a promotional offer are likely to opt-in for future promotions. Furthermore, we have seen an increase of over 70% ARPU with clients enrolled in an ongoing mobile coupon program. Couple these stats with the higher redemption rates of mobile coupons, and the vision of increased loyalty becomes clear.
In order to align themselves with new mobile trends and customer preferences, it is vitally important for restaurants to identify ways mobile coupons fit into their current promotional strategy. By successfully deploying mobile coupons, restaurateurs will realize increased engagement levels, higher coupon redemption and amplified sales potential in addition to higher customer satisfaction rates—all key elements that will keep customers coming back for more.
Margie Kupfer is Vice President, Marketing at 3Cinteractive (3C). Through mobile marketing services, 3C deepens and extends the connection between customers and brands, driving increased loyalty, brand awareness, and results. Leveraging 3C’s expertise connecting mobile to business results and its Switchblade platform’s multichannel capabilities—including SMS and MMS messaging, mobile coupons, mobile wallet, mobile web, location based services and more—marketers can deliver timely, relevant engagement at the customers’ moment of need. For more information please visit www.3c.com.
