Why Mobile Coupons are getting popular during the economic downturn?
It is apparent that Mobile marketing is the trend in a restaurant industry that is changing our preferences over everything to mobile. It is natural because a mobile device like iPhones, gPhones and Blackberry’s are always with our selves. Since they enable mobile web access, it is more easier for us as customers to opt in for coupons and order pizza via mobile ordering system without ever opening our desk top which might take a minute or two just to reboot. By this time with a mobile phones, we could order the pizza and be done with it may be even before the computer is ready after it reboots.
Lets face it today, due to the economy down turn every one wants to save money on their dinning expenses. Forget about those expensive restaurants for a while now before economy comes back. Customers have cut back on going to fancy restaurants with high priced menu items. No wonder even the high end restaurant have come up with creative marketing ideas to lure the budget oriented customers by offering under $10 price on menu items. Pizza restaurant are no different to them. In order to attract those customers on tight budget, they have to throw incentives in the form of mobile coupons. Pizza restaurants have been known for years for offering paper coupons but not the mobile coupons.
Domino’s rolls out national mobile coupon program. This should indicate that at least pizza restaurants if not all restaurants need to adopt mobile marketing if they want to sustain the business in the age of mobile phones. People have started changing their food ordering habits by purchasing pizzas via their mobile devices like iPhones over computers.
Domino’s have selected Air2Web a company based out of Atlanta to manage their mobile marketing campaigns. It is strictly permission based mobile coupons that is sent to customers who have opted in, via text message. When the customers receive the text based coupons via text message they can use those coupons while placing an order for their pizzas online in English or Spanish by visiting at www.dominos.com or from a web-enabled mobile devices like iPhone or gPhone at www.mobile.dominos.com/ One thing that is attractive about the mobile coupon is that they are trackable and measurable. Since customers don’t have to go through a hassle of clipping the coupons, they are more receptive to these kind of digital coupons. Redemption rate also go as high as 5 to 15 % where as the redemption rate on paper based coupon could be as low as 1%.
It is about time for all the restaurants including other independent pizza restaurants to take mobile marketing seriously and start learning about it at least if not use it.
7 responses so far ↓
1 Michael // Mar 20, 2009 at 9:19 am
I recently started a mobile coupon business, and I’ve found that pizza places are definitely some of the most receptive merchants. I also think that text message coupons aren’t the answer - they’re subject to too much fraud, are hardly trackable, and don’t provide a quality customer experience. Would love to chat more about the mobile coupon space, if you’d like.
2 Nash // Mar 20, 2009 at 4:42 pm
Hi Michael,
Thanks for your feedback on the blog post.
I agree with you 110% that pizza places are definitely the most receptive merchants in terms of mobile coupons. The reason is that they are used to the online ordering and online coupons and the transition to mobile coupon becomes natural to them.
I respect your opinion on text based mobile coupons. I agree on some points like fraud and quality experience . However, I do believe that if you use the right tool you can track the coupon downloads based on the mobile phone numbers and if you have the right software program you could possibly track even the redemption.
Hey it’s always good to have open minds on ideas so I like to keep my ears and mind open to your ideas.
Look forward to chatting you more on this.
Nash
3 BJ // Apr 13, 2009 at 3:44 pm
We’re just looking into more mobile marketing for some local restaurants and this article has been helpful. Do you know where we could look in order to find some pricing comparisons of Mobile Marketing vs. traditional marketing (ie. Print, Radio, Direct Mail, ect.) anything that would be beneficial in comparing the advertising channels?
4 Nash // Apr 13, 2009 at 6:10 pm
Hi BJ
Thanks for your comment.
I believe if you can do mobile marketing correctly it is far cheaper and effective than traditional media like Print, Radio,DM.
Mobile marketing can be done in less than $100. One company that I very often hear is Cell fire. Air2Web might be little expensive but you can check on that too since Dominos big guys are using it.
To find more I would also recommend you to check out an interview by John Jantsch with Kim Dushinski at http://tinyurl.com/cvq5qy
You can also check out mobilemarketingprofits.com for more details into mobile marketing.
If you need any other info please feel free to drop by my house at cyber space.
Good Luck
Nash
5 Courtney // Apr 27, 2009 at 12:27 pm
I think one of the exciting things about Mobile Message Marketing is it can give marketers a tool to quickly measure response rates to their traditional marketing efforts.
Typically you have to wait days or weeks to see if your inbound call volume or website traffic increases or even wait several weeks or months to see if your sales increase. By incorporating a response code into print, radio or mailers readers/viewers can easily and instantly respond to get special offers or information, giving you an immediate measurement tool.
Plus you begin to develop a database of people who you know want to do business with you which you can market directly to in the future…and who can tell their friends/family about your company/offer.
Another company which has a national presence offering Mobile Message Marketing is DMX Inc.
Thanks for the conversation!
6 Nash // Apr 28, 2009 at 1:35 am
Hi Courtney,
Thanks for dropping by my blog and leaving comments.
You are absolutely right about mobile marketing that it provides instant feedback about any mobile campaigns.
Unlike other traditional medias, it doesn’t have to wait for days. It can be as quick as few push of buttons or click of a mouse.
As you said, it is also great for database management. One can use those datas to contact whenever restaurants want to contact their customers. If it is slow evening at the restaurant, they can quickly send text coupons or dinner specials and instantly fill up the tables which they would not other wise.
The other promising thing that I see about mobile marketing is that restaurant can target customers based on proximity. Lets say some one had signed up for mobile signup for a restaurant through a site. Then when they are near to one of their favourite restaurant they could automatically locate them based on where they are at that point of time and send text coupons or any specials of that restaurant.
Thanks for your info on mobile marketing company and nice sharing ideas.
Look forward to discussing more later.
thanks
Nash
7 Scott A. Ressler // Oct 28, 2009 at 7:26 pm
Chris,
Your online magazine for mobile marketing is fantastic, I have become a fan. We too, like some of your responders, have been developing (for a year) a power set of mobile coupon sites about to go live for show to merchants next week. We are SEO experts here and have tested our skills with great success on Google. We too have found Pizza Restaurant chains are very receptive to Mobile Coupon sites and technology as are the fast food chains. I think it is a matter of time before restaurants and casual dining chime in, but we have sites ready for them as well. Hope to be speaking with you soon. Keep up the great work regarding the Mobile Coupon Industry!
Scott R
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