Mobile coupons may have benefits past the date of a specific promotion, according to new research from Binghamton University, Cornell University and Georgetown University.
The coupons can also affect affect long-term sales goals, and targeting customers with the right kind of mobile coupon may increase sales, according to the research.
Working with data from a global beauty company that markets skincare and makeup products, researchers from the three universities looked at the effectiveness of price discount and free sample mobile coupons, went directly to consumers’ phones via text messaging services.
The research found that the mobile discount coupons were most effective for short-term sales goals. They also increased the average amount that customers spent per purchase during the promotion.
Free-sample coupons also helped with short-term sales goals, but the researchers also found that those coupons had a long-term influence on purchase behavior after the promotion period. They contributed to incremental purchases over a longer period of time than discount coupons.
“Offering free-sample mobile coupons may have longer-term effects because it pushes people to try a new product at no cost that they may like and buy again later,” said Binghamton University School of Management Assistant Professor of Marketing Chang Hee Park. “Price-discount coupons don’t have that same push,” Park said.
Park also said markets should choose the kind of mobile coupons that an individual shopper may want.
“Different customers have different sensitivities to different kinds of mobile coupons, so you need to consider those differences when making your couponing strategy,” he said.
“The Effects of Mobile Promotions on Customer Purchase Dynamics” has been accepted for publication at the International Journal of Research in Marketing.