Coupon usage is big and is projected to get even bigger. About 96% of American shoppers are coupon users and numbers continue to climb thanks to the popularity of digital coupons (RetailMeNot). However, with such high volumes of coupons being redeemed each year, the potential for coupon fraud increases as well. Fortunately, incorporating mobile coupons into a cohesive digital marketing strategy can both increase redemption and reduce coupon fraud.
Mobile coupons are digital coupons that are received and redeemed with a mobile device. These coupons are typically redeemed either by a code directly in the text itself or, a QR/bar code on a landing page. Despite their simplistic nature, mobile coupons have been very successful and have had a massive impact for a variety of industries. According to Juniper Research, 45% of mobile users will use mobile coupons this year with mobile coupon’s global usage projected to surpass 1 billion by 2019 .
SMS vs. Coupon Fraud
It is easy to understand how mobile coupons are beneficial to businesses but, how do they stop fraud? To explain this concept, let’s look at a recent example that we had here at 3Seventy. A quick service restaurant wanted to have a targeted coupon promotion for a particular region of their restaurants. However, incorporating a 3rd party coupon into their POS system wasn’t a feasible option. This meant that coupons would have to be entered manually which would increase the chances of both human error and coupon fraud. By using 3Seventy’s Coupon Campaign builder, landing pages were automatically created that allowed end-users to both receive coupons by texting in a keyword to a short code. These coupons were then redeemed at participating stores. Since these coupons were single use only and were being redeemed at the register, any chances of customers posting on coupon sharing sites were eliminated which allowed franchises to control market spend.