The Next Big Thing: Mobile Coupons for CPGs

We wrote a couple weeks ago about how web coupons are a hit, especially among affluent consumers. In the current recession, however, coupon usage is growing among all walks of consumers. According to new research from Inmar and The Nielsen Company, “year-to-date coupon redemption was up 26 percent to 2.4 billion redemptions, making it the fourth consecutive quarter of growth.”

CPG brands are aggressively deploying coupons to help allay the always-present threat posed by private-label goods, which are frequently less expensive than brand name items even when coupon savings are factored in. Paper and electronic coupons delivered via newspaper circulars, freestanding inserts (FSIs), direct mail, e-mail and Websites represent the vast majority of coupons used. However, coupons sent directly to mobile devices may be the next big opportunity for CPG brands seeking to drive incremental sales and ensure loyalty. Here’s one reason why, from my latest eMarketer report, CPG Mobile Couponing:

Delivering coupons via mobile or handheld device represents a time-saving convenience for consumers. The process eliminates the need for clipping and sorting, and ensures shoppers do not lose the pieces of paper. To redeem savings, consumers hold their devices up to a 2-D barcode reader or optical scanner at checkout … Consumers are sent targeted coupon offers based on their location, age and gender.

Some key questions discussed in the report:

• To what extent are CPG marketers conducting mobile couponing tests?
• What are the possible scenarios for coupon delivery via mobile phone or handheld device?
• What are the benefits of mobile couponing to CPG marketers?

What are your thoughts?