Summary
We recently analyzed mobile app coupons deployed on the Rovertown platform in 2023, revealing several insights and two strategies used by best-in-class retailers. For example, did you know that retailers see an immediate, 18-point increase in the retention rate of app users once they redeem just one coupon? Watch the recording to learn more insights.
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Coupon Effectiveness and Redemption
- The most redeemed mobile app coupons are for fountain drinks, energy drinks, and candy.
- The most effective mobile app coupons on a per coupon basis are for ice cream, fountain drinks, and coffee.
- Redeeming a single coupon makes a customer 18% more likely to be retained.
Effective Coupon Tactics
- Two effective coupon tactics are surprise and delight, which involves a constantly rotating list of coupons, and reduced price point, which offers items like fountain drinks or coffee at a reduced price.
- While free coupons can see spikes in usage on single days, they may not lead to consistent coupon usage compared to surprise and delight or reduced price point strategies.
McDonald's Mobile App Strategy
- McDonald's has transitioned its discount offerings from the traditional dollar menu to its mobile app to encourage customer engagement and interaction with the app's features.
- This strategic shift allows McDonald's to implement targeted and cost-effective discounting strategies by tailoring coupons to specific customer segments, maximizing the impact of discounts.
- By offering exclusive discounts through the app, McDonald's aims to enhance customer loyalty, incentivize repeat purchases, and gather valuable data on customer preferences and behavior.
Implementing Mobile App Coupons
- Businesses should communicate to customers about available coupons through various channels like push notifications and social media posts.
- Employees should be informed about available discounts and trained on how to process coupons to ensure a smooth customer experience.
- Businesses should clearly communicate coupon availability and any restrictions to customers, such as specific days or product limitations.
