sms coupons

Online shopping may threaten the lifespan of numerous retail stores, but SMS coupons are helping to drive foot traffic to the mall and increase sales.

The rise of digital channels and mobile technology means mass market reach is through cell phones. Digital technologies also make it more convenient for shoppers to redeem mobile coupons.

Thanks to shopper-friendly strategies,90 per cent of consumers take advantage of digital coupons in one way or another. As a result, experts predict SMS coupon redemptions will total $91 billion by 2022.

An intelligence report published by Valassis reveals that 80% of shoppers have made a buying decision on the back of receiving an SMS coupon – for products they wouldn´t ordinarily have purchased!

Mobile coupon platform, CodeBroker found similar results in their survey and added that coupons delivered via text messages with a sense of urgency drive higher levels of purchases.

SMS Coupons Are Convenient


Today´s redeemable coupons are much more sophisticated than traditional magazine clippings with promo deals. Nobody leaves the house without their cell phone and redeeming SMS coupons is more convenient once the customer reaches the check-out.

It´s no surprise that SMS coupons perform 35 per cent better than print coupons.

Not only that, digital coupons are less expensive to create and thanks to the wealth of data collected through digital channels, brands can reach a target audience with relevant promos.

Mobile coupons have the power to influence customers no matter which stage they are at on their customer journey. What´s more, coupons can help brands acquire new customers and nurture loyalty with existing customers.

Advertisers in the US are increasingly launching campaigns that include SMS coupons. Well- known brands including Coca-Cola, Domino´s Pizza and 7-eleven have all had huge successes with SMS coupons.

There are plenty of compelling reasons for businesses of all sizes to adopt SMS coupons in your marketing mix. Providing you get your strategy right, you can expect to drive traffic and increase sales.

Type of SMS Coupons

There are three types of SMS coupons:

  • On-demand mobile coupons where shoppers redeem the coupon in-store before the offer expires
  • Online coupons which can be redeemed on your website
  • MMS-based coupons which enable you to include multimedia content such as images, video and audio to promote the product you are offering.

Redemption rates are higher with on-demand SMS coupons although online coupons are becoming increasingly popular.

SMS coupons also have unique identification number that enable marketers to keep track of redemptions, otherwise digital coupons can be used more than once by different people.

When you´re putting an SMS coupon campaign together consider the value factor, the level of engagement consumers have with your brand, how long the offer stands for and a call-to-action which informs customers how they can redeem the coupon.

Types of sms coupons

SMS Coupon Strategies

Creating mobile coupons is easy and inexpensive, but you can get even higher ROI with some advanced planning.

Target Precise Demographics

Before you dive straight into mobile coupons, use the data you have on customers to ensure you target the right people with the promotions they will be interested in.

Acquire new customers

General SMS campaigns that offer shoppers irresistible discounts are ideal for acquiring new customers. Whilst you have the option to use shortcodes for text message marketing promotions. Coupons have unique serial numbers so gives you the opportunity to track individual shoppers.

This means that mobile coupons give brands the opportunity to engage with customers beyond the current promotion and target them with relevant promotions in the future.

Customer Loyalty Program

Customer loyalty is key to improving your bottom line. For retail brands, mobile coupons represent the carrot that ensures customers keep returning.

Providing you send relevant promotions to customers, show them you care about their interests and understand their needs, SMS coupons are a great way to build stronger relationships with customers.

Referral Programs

Referral programs are a great opportunity for brands to widen your reach – and get existing customers to do all the work for you. Dropbox famously grew by 3900% by offering existing customers extra space whenever they referred to a friend or colleague.

People are also more likely to make a purchase when they have been recommended a brand or product by a friend.

According to a recent survey, 88% of consumers say they have made a purchasing decision that was suggested by a friend or family member.

Save Abandoned Carts

The average online store loses around 75% of its sales due to customers abandoning their cart. Shopify claim abandoned carts in e-commerce websites is because the customer is presented with unexpected costs, the overall price was too high or they found a better price elsewhere.

SMS coupons, whether in-store or online, resolve check-out issues and give brands the opportunity to recover lost sales. Shopify also advises sending a sequence of messages to determine the reason why the purchase was abandoned.

SMS is a great way to open a two-way conversation with customers! And provide a superior customer service – which in addition builds trust and loyalty.

Boost Holiday Season Sales

There are more SMS coupons redemptions during the holiday season than any other time of year. Announcing discount deals well in advance and giving customers time to take advantage of your offer. Helps to boost your sales and give your customers gift ideas – which is always appreciated!


Influencer Marketing

The rise of influencer marketing has rocketed in the last couple of years. Whilst most influencer campaigns take place through social media networks… There is no reason why brands cannot transfer influencer strategies to SMS as well. Especially given 98% of SMS messages are opened.

According to statistics, 74% of all purchasing decisions in the digital age are due to influence from other people. It therefore makes sense for brands to adopt influencer marketing and combine it with SMS coupons.

As mobile shopping becomes even more popular in the US, retail brands will need to rely on SMS coupon strategies to retain customers and increase sales.

If you´re not already taking advantage of SMS… 2020 is the year to incorporate bulk text messages into your marketing arsenal.

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