Once relegated to housewives in their mid forties with children, the demographic targets for coupons are quickly shifting as new mediums emerge, according to analysts and presenters at this week’s ACP Coupon Conference.  “Our data shows the e-coupon user trends a little bit younger and wealthier in line with the demographics of the online adult (versus offline only),” says Lisa Bradner, Analyst with Forrester Research.

New research from Information Resources (IRI) and Platform-A, indicates that 51% of 18-34-year-olds are more likely to use online coupons. While typically ambivalent to traditional coupons, younger couples are the most likely life-stage group to use online coupons, indicating an opportunity to influence product choices within this segment.
With growing and changing demographics comes new ways to deliver coupons, aside from traditional clipping. “The Internet has made coupons ubiquitous, but up until the economic downturn, e-coupons were hampered by the fact that they still needed to be printed out and carried to the store,” says Bradner. “When the economy turns around, we’ll see how much coupon usage drops off.  Ultimately, for the FSI to go away, e-coupons will need to become paperless and will need to eliminate breakage.”

“Traditional newspaper coupon campaigns that blanket a region are being replaced by more targeted, cost-efficient online campaigns,” says Fran Garcia, VP Marketing Solutions, Coupons.com. “We’ve seen CPG clients bring 20% of their promotional budgets online to Coupons.com, and they’re getting a 15-20% redemption rate vs. 1% with newspapers. Our customers know they can granularly track the entire life-cycle of a coupon – from viewing and printing through redemption – and get detailed demographic information.”

The mobile phone, which has already created quite a stir as a new shopping medium for consumers, is even being exploited for coupon purposes. While the capability to receive mobile coupons is not brand new, it is starting to come to life at the point of sale. By 2013, over 200 million people will receive and redeem coupons via mobile phones worldwide, according to Juniper Research.

Putting Mobile to Work
Starbucks partnered with Codilink to create a loyalty program based on 2D bar-code coupons deployed via SMS. The campaign is currently running in Guadalajara and San Luis Potosi, Mexico. So far, the effort has reportedly boasted a 60% mobile coupon redemption rate. To spread the word, Starbucks created postcards for distribution in malls, universities and retail outlets. The call-to-action urged consumers to text keyword STARBUCKS to short code 80080 to get a WAP link to download a buy-one-get-one-free 2D bar code mobile coupon. The Starbucks locations are equipped with 2D bar code recognition software, so employees can read the mobile coupon directly from consumers’ mobile phones at the point of sale.

 “I really like mobile because, from a consumer perspective, it makes a lot of sense, although there are some kinks to work out of the system,” says Bradner. “Loyalty programs offer companies a way to really engage consumers around the coupons and make sure they’re getting some reward for the discount they’re offering.  Creating richer rewards for fewer customers is a reward for the brand and for its loyal shoppers.”

Cellfire, a leading mobile coupon distributor, recently expanded its digital grocery coupon program with Kroger nationwide— making its coupons redeemable at the retailer’s 2,400+ stores across the country. Cellfire is also working with Sears, Payless and Best Buy to deliver coupons via the mobile phone. “Marketers use coupons for different reasons: customer acquisition, increase visit frequency or shopping basket size, or the introduction of new products or categories,” says Dan Kihanya, VP of Consumer Marketing, Cellfire.  “Digital media allow them to hit the right segments, thereby increasing ROI. It should be noted that the phone allows for time-of-day targeting as well – a unique aspect of mobile.”

Coupons.com’s Garcia says retailers should optimize their Web sites for smart phones and have a coupon page directly on the site (like Kroger, Safeway, Kmart, CVS and Walgreens have done) where shoppers can print coupons. Garcia notes that while there’s great potential for smart phones, there are still some technical barriers to be worked out.  Coupons.com has partnered with Yahoo! Mobile and recently appointed a former Google Android developer as CTO to bring coupons to smart phones in the near future.

Sandy Spakoski, Director of Account Managing, CPG Sales for AOL Shortcuts, says the platform is appealing for younger consumers who want to use coupons without the stigma. Surprisingly, at the time of Shortcuts’ launch in March 2008, 44% of its visitors were males, for leading grocery chains including Kroger.

Spakoski, who presented trends in offline and online couponing at the conference, says one of the appealing aspects of online couponing is security. “Today there is a large counterfeit couponing problem in the grocery space,” she says. “The thing around online coupons—the safety mechanism that they bring—is that you don’t have a data element for a consumer to see or manipulate characters in any way. It makes it a safer product.” Coupons acquired via Shortcuts do not have a barcode, so the consumer doesn’t have a way to edit it. In its one year on the market, Shortcuts has not had any counterfeit issues with coupons. “As manufacturers think about where to take coupons, safety is something they focus on. Counterfeit coupons cost the manufacturer and the retailer,” says Spakoski.

“The evolution we are seeing is similar to what other markets have seen with the transition from physical media to digital,” says Cellfire’s Kihanya. “The industry is embracing the paradigm shift from broadcast distributions through paper channels to targeted programs with digital delivery. This allows marketers and retailers to more tightly align their coupon campaigns with the goals they are trying to achieve.”

Overall Increase in Coupon Usage
Consumers have transformed from “want” to “need” based amid the volatile economic climate. 66% of the population is needs focused, compared to 17.5% two years ago, according to a study conducted by NCH Marketing, a coupon redemption and tracking agent. “Naturally, the majority (59.4%) of coupon users today consider themselves promotion sensitive shoppers,” says Charlie Brown, VP Marketing, NCH.

Because consumers are focused on price and value, the coupon redemption rate has shown a steady increase in the last four years, according to the NCH Consumer Survey. Brown says there has been a 17% increase in coupon redemption in Q4 2008, and it continues to grow. “In a recession, consumers become more responsive and they’re more interested in saving,” says Brown.  “The overall numbers of consumers who have used coupons in 2008 in up 5 share points of the populations. Up to 40% of people that say they would use CPG coupons at one time or another, including in that are people who say they very rarely use coupons.” Brown, who also presented at the Coupon Conference, says the Sunday newspaper is still the largest distribution medium (over 90% of coupons are distributed via the newspaper), because it can reach so many people at one time.

“Marketers need to think: not only are consumers using more coupons right now, but it still comes down to the main purpose of trying to move the product,” says Matthew Tilley, VP Marketing, InMar, a marketing agency specializing in promotion processing.  “You’re trying to get someone to try your product for the first time, come back to your product for the second time, or continue to be a user of the product. You have to keep that in mind as your objectives. You need to have the right tactics and offers.” Tilley’s Coupon Conference presentation was centered on the increased effectiveness of coupon promotions.

Compelling Content
Like any other form of advertising, the messaging in coupons needs to be relevant and valuable to consumers in order for it to be effective. Brown says consumers look at the expiration date, the purchase requirement and face value. “ If you’re asking them to buy more than they are comfortable buying to get the discount, that will reduce the overall redemption, but it still will motivate some people and can make a good return on investment,” says Brown.

“If you compare the single purchase coupons to a multiple purchase coupon (buy two, three or more), we will generally see the highest redemption rate out of the single purchase because it’s not requiring the consumer to do something that they are uncomfortable with.” Brown notes that these results vary by category. Multiple purchases can work very well for things like cereal, baby food, yogurt, etc.

Some other suggestions experts offer to make integrate coupon promotions with your in-store marketing include:
•    Shelf Talkers-  could be used to give consumers a reminder to use coupons; provide insight on the savings and value of a discounted product
•    Digital floor mat- placed in store aisles, this could give consumers product information at the point of decision
•   Point of Sale Integration- eventually, analysts predict that technology will enable cashiers to simply scan a mobile phone to take a discount at the point of sale. Targeted offers and loyalty programs can also be worked at the point of sale.

“Out of store tactics are great at driving traffic to the store and reminding people to pull them in,” says Tilley. “In-store tactics are good for driving consumer interest to one particular brand or subset. You can have all the in-store messaging you want, but if a consumer is not in your store, it won’t matter. It’s not an either or proposition.” He suggests retailers think about coupons as a strategic marketing effort to attract customers in the first place, with compelling offers to keep them coming.

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Focused on providing a more convenient and fun shopping experience, and bringing the online experience into stores, Macy's, Inc., is providing mobile technology to its store personnel, as part of the company's omni-channel strategy to drive sales for the Macy's and Bloomingdale's brands. These innovations are designed to engage customers with self-service options and streamline the path to purchase.

Macy's and Bloomingdale's are bringing self-service and the online experience to stores with computer tablets and hand-held devices that engage customers in selected merchandise areas. Approximately 350 stores will test the tablets to help customers research and select products, specifically at Macy's and Bloomingdale's Clinique counters. Bloomingdale’s is testing tablets and handheld devices in 5 stores to help customers view and shop a variety of shoe styles and colors. In fine jewelry, 25 Macy's stores are using tablets to demonstrate product features and offer coordinating jewelry pieces that may not be available in that particular location. These items can then be purchased via Macy’s Search & Send order fulfillment system.

Macy’s operates approximately 850 department stores in 45 states, Guam and Puerto Rico under the Macy’s and Bloomingdale’s brand names. The company is headquartered in Cincinnati and New York City, and reported 2010 fiscal sales of $25 billion.

“We are committed to leading in the adoption of technology that resonates with customers,” said Terry J. Lundgren, Chairman, President and CEO of Macy's, Inc., in a press release. “In particular, we are using technology in our stores to mirror the online shopping experience, and adding functionality and content online to provide customers with additional assistance in product selection. The ultimate goal of our omni-channel strategy is to build deeper relationships with customers and ensure Macy's and Bloomingdale's products are accessible no matter how or when customers prefer to shop."  

As the company builds its culture of growth, “it is important that we develop and test new ideas so we can learn and continue to improve,” said Lundgren.

In October, Macy's began testing Beauty Spot, a new cosmetics concept that allows customers to search and select products via a kiosk from various product categories across multiple brands. Additionally, dedicated Beauty Spot concierge associates will use hand-held mobile devices to assist customers and process credit card transactions. Macy’s is testing Beauty Spot (with interactive touch screens) in four stores in New Jersey, Texas and Virginia, while six Macy's stores in Delaware, New Jersey, Pennsylvania and Texas are assessing Beauty Spot without touch screens.

Macy's and Bloomingdale's are installing free Wi-Fi service in stores nationwide to enable customer use of smartphone applications and/or tablet technology for shopping. By the end of October, full public Wi-Fi access will be activated in about 230 Macy's and nine Bloomingdale's stores. In another 79 Macy's stores, Wi-Fi access is being installed in junior's and young men's departments to support the company's youth initiatives.

“Macy’s realizes that there’s not a single product in its assortment that shoppers can’t find elsewhere,” said Laura Davis-Taylor, SVP, Managing Director at BBDO/Proximity ShopWork, a specialist in retail campaign strategies, in an interview with RetailTouchpoints. “As smart shoppers continue to use digital devices to find products cheaper in other stores, retailers must make a difference in the customer experience to mitigate the price issue.”

Additionally, macys.com has launched a new denim fit finder for women. Powered by True FitTM fit personalization software, the function allows online shoppers to select jeans via a three-step process based on body and style preferences. Recommended styles can be saved on the customer's personal profile page for future reference.

Digitizing In-Store Operations
Macy’s latest innovations also are streamlining in-store operations across a variety of departments. The company has expanded the Search & Send initiative to include order fulfillment from 23 selected Macy's stores across the country. Previously with Search & Send, every Macy's store register was enabled to find products unavailable in that particular location by accessing the macys.com online inventory. By 2012, more than 100 Macy's stores with broad merchandise assortments will be part of the Search & Send fulfillment network. The company also is testing the use of Macy's store fulfillment for selected items purchased online. Bloomingdale's provides fulfillment from all of its stores, as well as its online inventory.

At the end of October, all Macy's and Bloomingdale's furniture/mattress delivery associates will utilize computer tablets to plan daily routes, find locations via GPS, record delivery verification signatures and access product and sales transaction information on-site to answer customer questions.

Macy's and Bloomingdale's stores are replacing signature pads at all 50,000 point-of-sale terminals with new customer response units developed by Verifone. The rollout will be completed by fall 2012. The new units enable the company to test emerging transaction-processing technologies. Among them is Google Wallet, a smartphone application now being tested in 219 Macy's and Bloomingdale's stores in Chicago, Los Angeles, New York, San Francisco and Washington, D.C.

Beginning late October, Macy's will experiment with digital receipts in 50 selected stores across the country. When making a purchase, customers can choose to have a copy of their receipt emailed to them. In spring 2012, Macy's customers will have the option to select digital receipts only.

“Retailers can generate dollars by tapping into customers’ hearts,” said Davis-Taylor. “The only way to do that is to be relevant to shoppers’ lives, and the quickest way to be relevant is to solve their issues. For five years, the Number One finding among retail consumer surveys is that shoppers want browsing and finding streamlined for them. Number Two is that they want retailers to build better bridges across channels. As Macy’s acts on these customer needs, the entire retail industry is going to look and follow suit. I truly believe that the initiative will help mitigate some of the fear of other brands [when it comes to a rollout like this].”

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For all the science of shopping, even Paco Underhill, the retail guru, would tell you that designing an optimal commerce experience is a fairly simple proposition. Words like frictionless, seamless, impulse, uninterrupted, and accessible come to mind: One-Click Ka’Ching?

But between the idea and the reality falls an unwieldy shadow. With the launch of Amazon’s new Android tablet will Amazon’s signature one-click checkout meet portable desire and allow for an optimal commerce experience for the impulse shopper on the go?

In a world where Amazon has go far beyond the book, is this the new Kindle for the shopper? The new tablet is reportedly priced at $199 (below the $210 hard cost for manufacturing) and is being sold as a T-Commerce transaction shopper device.Will a low price point — bundled with commerce wallet toolkit including reviews, consumer recommendations, shopping comparison and a fairly simple checkout ― bring the cloud down to the shopping mall?

Shopping Disruption

But all these shopping innovations, tools and shortcuts beg the question of what is the ideal and optimized mobile checkout? VISA “Square” has democratized point of sale of plumbers and pool cleaners across America. It works because it offers a simple, cost-effective solution that is riding the existing commerce rails. “Square” allows for a plastic card swipe and serves up a merchant account through the audio jack on the phone. Everyone is now a store.

VISA and PayPal continue to work to create similar quick-checkout for the small screen, eliminating the clumsy data form fields needs to check out on the large screen desktop that make for abandoned m-shopping carts all over cyber space. VISA’s purchase of PlaySpan is a perfect example of frictionless commerce engineering. PlaySpan (before it was acquired by VISA) allows gamers to buy virtual swords and pumpkin seeds for their virtual battle grounds and farms without leaving the game. VISA is using this same technology to launch a quick check for all those folk for whom real-world shopping is a “game”. We should see this roll out in 2012.

Google’s M-Wallet promises TAP and exit shopping at your local store. The problem here is that for all the hype, NFC-phones are only entering the market now and few retailers (outside of McDs) has contactless POS. I love the bricks and mortar dream-scenario of TAP purchase using your phone for payment, loyalty, affinity and marketing. However, I will remind the reader that self-checkout was a sexy idea twenty years ago and took two decades to start to appear in supermarkets in the US. The retailers are unlikely to pay soon to retrofit their existing DOS-like POS when the “reward” of quick-flowing aisle and proximity marketing is yet to be proven. Until the ROI calculator can be taken out, Google maybe waiting at self-checkout.

VeriFone is answering the call by designing Swiss army knife units like PAYware that allow for mobile point-of-sale (mPOS) in store and can accept magnetic swipe, CHIP&PIN, NFC; it can scan bar codes and enter promotional PINs. Companies like GlobalBay have integrated to all major POS vendors (SAP, Epicor, Oracle, etc.) to allow this unit to mobilize the existing cash register without retrofitting it.

Apple has yet to show its NFC card. When they do, look for NFC to meet iTunes checkout. There is a tremendous opportunity for Apple to take over the traditional media space with TAP2SHOP service riding on it iTunes’s quick checkout. Until then . . . we have Amazon’s Tablet.

Amazon T-Commerce

Tom Daly, head of mobile globally at Coca-Cola is focused on making their products “within arm’s reach of desire”. If Amazon can allow their customers to have a commerce tablet that enables them to shop where they want, they will succeed. By Q4 next year, look for Amazon consumers all over America, side-saddled in the waiting area of the mall after comparison shopping in their favorite store (showroom) checking out in the cloud.

Will VISA and PayPal design more optimized digital checkout? Yes. Will Google’s Wallet continue to expand retail doors and eventually become part of our shopping experience? Yes. But until then, Amazon will disrupt the mall and dominate the cloud shopper.

(If this all seems a little depressing for the store owner, here is some advice: While Amazon focused on T-Commerce on a portable screen, you need to focus on M-CRM on the small screen. You need to start owning the mobile two-way relationship on your shopper’s “handheld” and use the handheld in-aisle to drive tonnage.)

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Retailers are gravitating to mobile marketing initiatives including short message service (SMS) marketing, quick response (QR) codes, and applications to boost brand awareness and formulate more personalized shopping experiences. Merchants also have leveraged the “always on” benefits of the web by rolling out mobile storefronts to encourage browsing and buying directly via smartphone.

A vast majority (91%) of retailers indicate they currently have a mobile strategy in place or in development — a 17% boost from 2010, according to the Shop.org and Forrester Research report titled “The State Of Retailing Online 2011: Marketing, Social, and Mobile.” Results also indicate that implemented tactics are thinly distributed; As much as 48% of retailers report having a mobile-optimized web site, while others have focused on releasing apps for iPhone (35%), Android (15%) and iPad (15%). However, many retailers are struggling to finalize a mobile strategy that fits brand image and expectations accurately.

First and foremost, retailers must see mobile as a complementary strategy to existing in-store and online marketing campaigns, according to Gary Schwartz, President, Impact Mobile. “Retailers need to think of mobile as a horizontal media, not another separate vertical,” he said. “In turn, retailers can resuscitate their existing investments to build value. For example, integrating with social-to-mobile (SO-MO) widgets in Facebook can drive social investment into a direct opt-in relationship that retailers can move to high-ROI destinations such as store or cloud checkout.”

The array of techniques and technologies available, such as SMS, QR codes and applications, present forward-thinking retailers with the prime opportunity to create a compelling and memorable shopping experience for consumers across the buying lifecycle. In fact, shoppers are more willing than ever to participate in opt-in programs to receive specials, coupons and behind-the-scenes information.

A majority (75%) of consumers recognize the value in mobile loyalty clubs, while 33% of consumers claim they would be interested in joining mobile loyalty programs for their favorite brands, according to the “2011 Hipcricket Mobile Marketing Survey.” Conversely, only 12% of respondents actively participate in these programs.

Getting Shoppers To “Raise Their Hands” Via SMS

SMS marketing allows retailers to communicate with loyal customers and one-time buyers directly through their mobile inboxes. This initiative also allows merchants to direct shoppers to e-Commerce sites, applications or abandoned shopping carts easily.

Retailers including Victoria’s Secret and Rue LaLa have deployed SMS campaigns, along with mobilized loyalty programs, in an effort to capture consumer information and analyze shopper preferences more efficiently. Marketers then can send relevant and timely offers, coupons and news updates to enhance consumer relationships. 

“Until a two-way channel is developed that is ubiquitous across all handsets and carriers, and also ties the retailer into a direct one-to-one relationship, SMS remains the channel of choice,” Schwartz noted. “Social sites such as Twitter are valuable, but it is basically micro-blogging from one source to a large amount of people. QR codes are scan-to-web, but that tactic acts merely as an anonymous click-through.”

Retailers can ensure consumer action by combining SMS messages with personalized URLs (pURLs), Schwartz added. By including links to recommended items or abandoned shopping carts, site visitors are more likely to make their final purchases in the m-Commerce store. Regardless of the potential impact of SMS on conversion rates and click-throughs, few retailers have leveraged the tactic to reach consumers directly through their inboxes, according to research from the e-tailing group.

In an analysis of 200 top retailers, the e-tailing group’s “Annual Merchant Survey” revealed that only 14% of top retailers employ SMS. However, approximately half (46%) of respondents plan to employ text message marketing in the future. Despite retailers’ slow adoption of SMS marketing, implementing this instant communication can keep brands top-of-mind and have a significant impact on customer engagement, according to a 5th Finger report titled “6 Things You Need To Know About Mobile To Get Ready For The New Year.”

“SMS is the flexible intermediary — an SMS can deliver a jump off to a mobile web page, a phone call or the beginning of a two-way brand relationship,” the report explained. “Texts can successfully drive consumers in-store so long as they are relevant and offer an incentive. While mobile applications are engaging and banner ads can help drive site traffic, permission-based SMS messaging remains a viable way to drive consumers in-store.”

Retailers can increase relationships with consumers and boost purchase rates by tying SMS initiatives to the m-Commerce site and applications. Best-in-class retailers particularly have excelled in developing engaging applications that contain key features such as store locators, high-definition images of full product assortments and in-depth item information. In turn, shoppers can interact on mobile apps in-store and at home to make educated buying decisions.

Leveraging Mobile Applications To Boost Engagement

Innovative retailers have released mobile applications for the Android and iPhone to create a shopping experience that is seamless and media rich. For example, Target incorporated sharing capabilities in its mobile app to allow shoppers to send items to friends and family via email and text message. However, Sephora particularly has excelled in connecting multiple interactive touch points and multimedia elements to add value to the app experience.

To optimize word-of-mouth, sharing and communication among shoppers, the Sephora apps feature mobile offers, videos, ratings and reviews, and a beauty advice column. The apps also include barcode scanners, access to the beauty retailer’s entire inventory and a list of high-demand items. This array of features and capabilities provides shoppers throughout the buying lifecycle with optimal incentives to visit and interact with the brand.

“M-Commerce sites and apps play different roles,” noted Lisa Schwartz, Junior Analyst for the e-tailing group. “Applications must have a significant value to the shopper. For example, if Recreational Equipment Incorporated has a snow report app or if Rue La La has an app for shoppers who want to continually check in to make purchases, both can be very helpful to shoppers. But though these ventures make sense, it is not realistic to get consumers to pay attention to all apps.”

Entertainment value is important for an engaging application, but retailers must focus on core capabilities that create a seamless browsing and buying experience, according to Schwartz of Impact Mobile. If navigating through an app becomes a daunting, convoluted task, consumers will turn away. “Retailers may have an application that is not forgotten on consumers’ phonetops, but it is vital to remember that the business is selling a product, not an app download,” he noted. “In the end, shoppers want quick access to relevant content and an optimized checkout for the small screen.”

Retailers also must note the continual penetration of mobile apps. In fact, the number of app downloads worldwide will grow at a compound annual growth rate of approximately 57% between 2010 and 2015, according to findings from the Berg Insight “The Mobile Application Market” report. Moreover, results from the Oracle survey titled “Opportunity Calling: The Future of Mobile Communications — Take 2” revealed that more than half (55%) of consumers have downloaded a free app, versus 42% in 2010.

While applications are the evident stars of the mobile movement, David Dorf, Senior Director of Technology Strategy for Oracle Retail, told Retail TouchPoints that retailers should look to other methods that are more timeless and efficient.

“I think apps are temporary,” Dorf noted. “The rich, multimedia experience with applications is great and that’s why consumers use them. But from a retailer perspective it’s a pain to provide that on different platforms, such as Apple iOS, Android and Windows. I think in the long-term, HTML5 will be the top resource because it allows retailers to create an application that works across all platforms. It provides that rich experience right from the browser.” Dorf advises that retailers utilize SMS to gain shopper attention and send digital coupons, and release an app as a vehicle to deliver more in-depth content.
QR codes are another marketing initiative to drive consumer action in-store and at home. By scanning a code on advertisements and signage, shoppers can obtain product information, view item reviews and recommendations, and retrieve special coupons and offers. 

QR Codes, Geo-Fencing Encourage In-Store Engagement

Retailers including The Home Depot, Crate and Barrel, Best Buy, Cabela’s and Macy’s offer QR codes to educate consumers with detailed product information and encourage brand interaction. For example:

·   The Home Depot implements QR codes as a cost-effective alternative to in-store signage;

·   Crate and Barrel printed scannable codes on the back of catalogues to allow shoppers to allow easy sweepstakes sign-up;

·   Best Buy and Cabela’s feature QR codes in-store to allow shoppers to learn more about products they’re considering; and

·   Macy’s successfully rolled out its Backstage Pass campaign, which allows shoppers to scan in-store signage to receive behind-the-scenes videos from top industry figures such as Martha Stewart and Jessica Simpson.

By offering in-depth information via codes that are accessed easily, retailers can further purchase likelihood and increase overall brand trust, according to Joy Liuzzo, VP and Director of InsightExpress.

“We know that consumers are flowing between mobile and online, so acknowledging that by using mobile to recruit for email newsletters is a smart strategy,” Liuzzo noted in recent Retail TouchPoints coverage. However, Liuzzo cautioned that since most QR code initiatives take multiple steps to repeat, retailers must provide memorable, valuable offers that encourage shoppers to participate.

“My biggest hesitation with QR codes currently is that it is a four- to five-step process to get to the end goal,” Liuzzo explained. “Download the app, open the app, scan the QR code, get the content and interact with the content. QR codes have potential but most campaigns still make consumers jump through too many hoops to get to something that isn’t that great in the end. Making the end goal less gimmicky and more relevant will go a long way in demonstrating the value to consumers.”

Geo-location tactics also can contribute to increasing in-store traffic, especially with consumers’ growing confidence in sharing their locations with outside sources. In fact, 45% of consumers voluntarily provided their locations to apps, up from 33% in 2010, according to the Oracle survey. 

While location-based apps such as shopkick and foursquare drive purchases by promising coupons and discounts, push notifications sent via geo-fencing are more efficient. “Geo-fencing allows retailers to draw perimeters so they can send text messages to anyone that comes within a certain area of the store,” explained Dorf. “It’s a lot more exact [than check-in apps] to ensure that shoppers really are within a certain area of a store or around competitor stores.”

By implementing mobile marketing strategies, retailers can empower shoppers to research, browse inventory and obtain in-depth information via mobile devices, according to Liuzzo. Teamed with a strong m-Commerce initiative, retailers will provide consumers with the resources to make an educated buying decision.

“Consumers don’t have to rely on salespeople as much anymore,” Liuzzo said. “They have the ability to get all the information they want in the palm of their hands. Overall, consumers also are more educated and can be influenced more easily by outside information while they are in store locations.”

Part II of the Mobility Report will be published in the November 17 Retail TouchPoints newsletter.

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