Mobile coupon redemption rates to hit 8 percent by 2016

Retail software and store operations are constantly adopting, implementing and accommodating new technologies. With the growth in mobile device use, retailers are finding mobile coupons to be a lucrative sales strategy.

According to a recent study from Juniper Research, redemption rates of global mobile coupons will average more than 8 percent by 2016. This growth is spurred by greater usage of mobile coupons in North America and Western Europe, which is expected to bring the global population of coupon users to 60 million.

However, the study found that growth is not assured. The technology is currently going through an experimentation phase, as companies determine how to connect with consumers.

"As with all new mass markets there is an initial 'shakeout' period," said David Snow, author of the report. "For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base."

Retailers are also partnering their mobile strategies with social media and other web-based platforms to connect with consumers no matter where they are.

Social networks have little influence on shoppers’ purchasing decisions

For many marketing experts, social media, especially networking giant Facebook, has been essential in store operations and the formulation of effective advertising campaigns.

However, a recent survey from Baynote reveals that Facebook may not be as influential as previously thought. It found that only one in five consumers made a purchasing decision based on information they received on the social network.

The survey, which questioned 1,032 U.S. shoppers, reported that online sources such as search engines and email were found to be more influential than social media or commerce websites.

Part of the reason email may have been reported as a more important factor in decision-making could be the growing popularity of coupons, which whether delivered via email, direct mail or search engines were found to be more popular than daily deal websites or social networks.

Accordingly, a recent survey from Responsys reported that retailer promotional email campaigns to subscribers reached an all-time high in 2011.

Top retailers reach all-time high in promotional email marketing in 2011

Retailers are re-evaluating store operations to determine ways to improve sales and revenue. One sector many companies are focusing on is marketing.

The holiday season proved to be particularly illustrative of this, as the average number of email campaigns delivered by retailers to customers reached an all-time high in 2011, according to a study from Responsys, which tracks more than 100 top retailers.

Additionally, the research found that retailers sent subscribers an average of 177 promotional email campaigns – an increase of 16 percent over 2010. Furthermore, since 2008, this number has increased annually by 51 percent.

"Email marketing continues to become more critical to holiday sales, with the average number of email campaigns sent to a recipient during November and December growing at 20 percent year-over-year, outpacing annual growth," said Chad White, research director at Responsys.

Retailers can continue to innovate and improve their email marketing campaigns by integrating them with social media. Networking sites can be used to mine opinions and ideas for fine-tuning initiatives. 

Retailers spent big on paid search to capture consumer dollars

In an effort to generate even more holiday sales, retailers spent approximately 22 percent more year-over-year on paid search advertising initiatives, according to a new report from Ignition One.

The majority of those advertising dollars were spent on Google, the current search market leader. Merchants invested 81.8 percent of their budgets in the Mountain View, California-based company's portal, while 18.1 percent allocated funds to Microsoft Bing, which also powers results on Yahoo.

Overall for the year, retailers' paid search expenditures grew 26 percent, highlighting the importance of leveraging the platform to bolster online and in-store sales. Other core metrics increased as well, including impressions (up 42 percent), clicks (42 percent) and transactions (67 percent).

"Search ads had their biggest quarter yet despite the tepid-to-poor economy. In particular, mobile searches exploded. As the largest search ad seller by a light-year, Google stands to benefit," the report concludes.

With more retail brands opening online shops, it's crucial that merchants promote their website through not only paid search ads but social media and email as well.

Could shoppers desert retailers in January and February?

As per usual, the holiday season was flush for both brick-and-mortar store operations and online retailers. However, in January, it seems that shoppers are deciding to take a break.

While there is nothing strange about consumers saving more in January following holiday-related surges, a recent article from the Fox Small Business Center suggests that this year the "hibernation" may be a bit deeper.

One factor may be an increase on charging this season. As consumers felt more confident, they were more willing to pay for items using credit, assuming they would have the finances to cover themselves when the bill came.

Britt Beemer, chair of America's Research Group, told the source that credit usage was up 25 percent compared to last year. "Now that those credit card bills are hitting mailboxes, shoppers will cut back in a very significant way relative to January and February of the last few years," Beemer added.

However, recent news in the employment sector may mitigate the drop. Last month, the U.S. economy added 200,000 jobs, dropping the unemployment rate to 8.5 percent. 

New England retailers engage customers through QR codes

Retailers based in the New England region are increasingly leveraging new technology such as quick response codes to engage prospective buyers. According to technology and marketing firm Nellymoser, at least 23 major retailers with physical presences in Boston, Massachusetts, are utilizing QR codes.

QR codes are black-and-white graphics that can be printed on physical materials, ranging from posters to actual merchandise. When scanned by specific smartphone applications, they will redirect consumers to a web destination set by retailers, including ecommerce websites, YouTube channels or social media profiles.

Of the retailers analyzed, seven put the codes on window-front displays, five put them on in-store displays, four placed them inside fitting rooms and three mounted them at store entrances and point-of-sale cash registers. Location is key – fitting rooms, for example, are relatively distraction-free areas.

"The front window not only reaches today’s shoppers, but also people who are walking past the store and could become shoppers after looking at the retailer’s offerings,"  Roger Matus, Nellymoser executive vice president, told InternetRetailer.