It goes without saying that geo-targeting is widely deemed critical to modern mobile marketing. But a a “lack of personalization” can effectively zap a geo-targeted effort of its potential impact.
“As consumers increasingly turn to their mobile devices to help scout out offers and deals, mobile coupons have gotten to a point where they need to be contextually relevant so that they can scale,” says Lauren Johnson of Mobile Commerce Daily. “Smart brands have a trove of data that they can use to make mobile coupon efforts more effective.”
In a new report focusing on mobile analaytics and sound targeting, Johnson explores how mobile marketing is about so much more than just location. Patrick Moorhead, vice president for mobile at Catalina Marketing, agrees.
“There is a lot of talk and excitement in the industry around geo-location and coupons,” said Moorhead. “We believe that geo-location is a great opportunity, but it’s really just a component of personalization.”
“Location is a type of personalization,” he adds, “but it really becomes impactful when combined with other personalization criteria, namely past purchase behavior. A coupon for frozen pizza in the parking lot of the store is cool. A coupon for my favorite brand and favorite toppings while I am on my way into the store is something I can use.”
With nearly 100 million Americans redeeming digital coupons in the past year, there is clearly a large and growing user base for mobile marketers and advertisers to better target. But customizable targeting will mean the biggest difference in their bottom line.
Citing a Merkle executive at the 2013 Mobile Marketing Association Forum San Francisco, Johnson writes that redemption rates “can be as high as 89 percent the first time that a consumer receives a mobile coupon from a brand. From there, ongoing redemption rates can be around 25-40 percent. This shows how mobile coupons can be alluring to consumers at first. The trick though is to keep the conversation going with tailored, personalized offers that continue to generate high redemption rates.”