A new forecast from U.K.-based Juniper Research projects mobile coupon redemptions will grow more than 50% this year to 10 billion. The firm said retailers are increasingly adopting mobile as a tactic to help drive footfall and enhance customer engagement and retention.
While mobile still accounts for a relatively low volume of coupons issued, retailers have been encouraged by the 10% redemption rate of mobile coupons compared to 1% for traditional print and PC-based ones. The higher rate stems partly from mobile coupons acting as a link between a company’s digital and physical assets.
Among other key findings, the report said Apple’s Passbook app should act as a catalyst for both coupon distribution and redemption. However, retailers’ reluctance to upgrade point-of-sale terminals for authentication and redemption is creating a bottleneck, limiting the use of mobile coupons.
The Juniper study comes as the Mobile Marketing Association today released an updated guide to mobile couponing as it works to develop a standard mobile coupon ad unit.