Rovertown saw an immediate 18% increase in the retention rate of app users once they redeem one coupon, according to a new report by the app platform on mobile app coupons. There are two successful couponing tactics, it said.
The first strategy, surprise and delight, constantly changes coupons each week to keep app users interested. That way, there’s always a reason to open the app and see what’s new; however, it’s a lot of work, the report said.
Second, the reduced price point, limited choices strategy is more straightforward, according to the report. It uses coupons to provide everyday low prices on key categories, typically fountain drinks and coffee. Some retailers may even tie these coupons to specific days of the week, creating a sense of consistency. Rovertown cautions, however, that not all customers will want fountain drinks or coffee.
“Coupons are one of the most direct ways to convert app engagement into sales. That’s why it’s essential to have an effective strategy,” said Tyler Cameron, head of strategy and analytics at Rovertown. “Our analysis reveals several insights that will help retailers level-up and drive better results with coupons.”
Rovertown recommends the following guidelines:
- Announce a weekly app-exclusive coupon with push notifications.
- Create a coupons schedule with weekly updates.
- Track the average coupon redemption per user.
- Have discount coupons on staple items (coffee, fountain drinks, etc.).
- Place coupons near the top off your app page.
- Track the coupon redemption rate among users.
Free-item coupons perform better than those with reduced price points, but it’s costly, the report said.
A major c-store chain recently received coverage from local news organizations in several markets by offering a 40-cents-per-gallon discount, according to the report. This demonstrates that not everything needs to be ‘free’ to be noteworthy. Similar tipping points likely exist with other products, enabling retailers to protect their costs while driving interest in the promotion.
Fountain Drinks
Fountain Drinks are an easy entry point into mobile coupons, Rovertown said.
Across the Rovertown platform, fountain drink coupons were redeemed 799% more than the average category of coupons—the most of any category. Energy drinks took second place (396%) and candy rounded out third (383%).
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