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Tech savvy
Mobile
vouchers
and
coupons
… an
opportunity for The opportunity to use cell phones as a marketing tool and purchase platform is enormous,
retailers and
especially in the rural market where the majority of the population own a mobile device.
Mobile versus paper benefits that mobile marketing present
marketers Unlike paper format vouchers and coupons,
from a direct-to-customer perspective,
we would expect good uptake from the
the mobile versions are received and
rural segment,” he says. A lot of mobile
Mobile vouchers and coupons have stored digitally on a mobile phone (or PC).
competitions are already run using out-of-
“Although they could be delivered in a 1D
emerged as a smarter and more home, TV and radio, which are the dominant
or 2D barcode format, in South Africa today
secure alternative to paper-based they are typically delivered by SMS using
forms of advertising in the rural sector as a
versions. This is a particularly mass medium.
a numeric code,” says Rolfe. The reason
useful tool for both retailers and for this is that most retail point of sale
The ultimate marketing tool
marketers to reach the widespread (POS) systems cannot accept the more
sophisticated 1D/2D formats, which require Rolfe takes us through the opportunities
customer base in rural areas, the
dedicated scanners at POS. for mobile vouchers and coupons in three
majority of which own cell phones. sectors, all of which seem to be viable
One of the main strengths of a mobile
Wholesale Business spoke to Chris platforms:
voucher versus a paper voucher is the
Rolfe, CEO of Mobilitrix about the greater distribution capabilities, says Rolfe.
opportunities and room for growth They can be distributed more widely using
Forecourts
in mobile vouchers and coupons. online, print, radio, TV, outdoor or direct ■ The key product in our opinion will
advertising opportunities. In addition, a be the coupon (i.e. the SKU/line item
Mobile vouchers and coupons mobile voucher can be distributed more linked discount of a specific brand). Fuel
defined intelligently using customer feedback companies are not allowed to discount
A voucher has a specific monetary value, from questionnaires or delivered based fuel, and so far we have seem more
which can be used as payment for any on customer actions. “The improved interest in driving promotions around
products and service, while a coupon has a distribution is a key driver in ensuring supplier brand (Cadbury’s, Coca Cola,
specific monetary value that only applies higher redemption rates for digital vouchers Unilever) that attract travellers to stop
to a specific product or SKU. “Typically, compared to traditional paper vouchers,” he at a particular forecourt.
a coupon allows a consumer to buy the says. ■ Although forecourts typically attract
product at a discounted rate, or receive a higher LSM, we think the scope for
added value (e.g. buy one and get one free) Using cell phone marketing differentiating one fuel station from
whereas a coupon can only be used for that in the lower end, informal retail another using vouchers/coupons will be
specific product and cannot be used for sector a useful tool to attract the higher LSM
general spend,” Rolfe explains. Rolfe notes that there is very little direct market segment as well.
The convenience and greater distribution marketing in the rural segment at present,
are clear from the start – both mobile which means that mobile – and its near Township stores
vouchers and coupons are issued, 100% reach in SA households – presents ■ Mobile vouchers and coupons present
distributed, redeemed, reconciled and the best direct-to-customer channel for a huge opportunity for this segment.
settled digitally whereas the paper-based marketers and retailers. “Disposable income Currently spaza shops, tuck shops,
versions rely on a manual process for each is lower in the rural areas that urban areas, taverns and shebeens do not have access
of the steps above. and given the low cost and hassle free to paper based voucher alternatives (the
wholesalebusiness Issue 1, 2011 29
Tech savvy
Coupon Clearing Bureau does not service campaigns offer higher redemption rates engage with any advertising medium using
this market – only the FMCG retail as all steps along the way are 100% SMS, WAP, USSD or mobile applications”
market). The ability to redeem vouchers measurable. This means that the exact says Rolfe. Mobile voucher campaigns
and coupons in the informal sector is campaign return on investment (ROI) can can help achieve a variety of sales and
likely to be bigger than the FMCG sector be measured against specific objectives and marketing objectives including:
in 3-4 years in our opinion. marketing requirements. ■ Increase sales of a product or product
■ Again the mobile reach in this informal line in a specific retail environment
market sector is 100% – so a mobile
Enhanced distribution
capabilities – and at a lower cost ■ Encourage product trial of a new product
voucher/coupon campaign should be
A mobile voucher is sent to a consumer’s ■ Encourage consumers to purchase across
attractive given the lack of an alternative.
mobile phone and should only incur the product lines (up-sell / cross-sell)
In addition, we know that brands and
suppliers want to push this as an option cost for requesting the voucher. This cost is ■ Respond to competitor offers
to move inventory, promote new typically the cost of an SMS, WAP or USSD. ■ Sell overstocked products or slow moving
products, or encourage repeat purchase In the event that the customer receives the products
and brand loyalty. voucher to their phone because they have
■ Clear seasonal items
opted in to specific group; there is no cost
■ Finally there is an element of cache that ■ Reward repeat purchase and loyalty
to them in that scenario.
the mobile phone presents to this market
■ Increase average basket size value
segment and the view is that vouchers
Real-time redemption versus ■ Increase foot traffic to a specific store
and coupons on the phone will be very
manual process
attractive to this price-wise consumer. ■ Increase frequency of purchase
A mobile voucher is validated in real-time
Wholesalers and Cash & Carries at the POS in store. The POS connects The importance of customer
■ So far we have found large interest in
via a switch to the issuer of the mobile profiling and targeting
voucher to check the exact status of that
wholesalers who sell into the tavern, “To increase the 2% redemption rate
voucher. For a mobile coupon, the real time
spaza and tuck shop retailers. The big that is currently achieved using paper-
redemption includes checking to see if that
attraction for wholesalers is that they based vouchers and coupons a more
product (or SKU) is actually present in the
can now get to know their cash (faceless) targeted distribution approach is required,”
basket at that time.
customer using the survey and mobile comments Rolfe.
voucher/coupon products. The bakkie The campaign should rely on more
Reduced fraud and
buyer for a spaza shop is typically a cash relevant data to intelligently manage
increased security
buyer, driven by price, needs constant the distribution process. This data can be
Paper vouchers can be copied relatively
up-selling to buy greater volume and captured and filtered by customer responses
easily and are open to abuse by staff and
looks for brands at good prices, over (to say a mobile survey), in store data
suppliers. A mobile voucher can be fraud
service from a particular wholesale/cash (including basket items) or store location
free for a number of reasons, namely:
and carry store. that the customer visits.
■ Unique codes can be issued that are
■ Wholesalers have also expressed an
interest in using the mobile voucher/
specific to a customer’s mobile number Cost effective marketing
coupon products to move time ■ Vouchers are validated in real-time and campaign
sensitive stock (expiring or old) and can be blocked if necessary at the time Typically a mobile voucher or coupon
to communicate directly with buyers/ of redemption at the POS should cost between R0.50 – R2.00 in
customers as the need to meet monthly ■ The voucher number is taken out of the South African market place. That cost
volume targets from suppliers (Unilever, circulation once it has been redeemed, may be adjusted depending on campaign
Tiger Brands etc). and this prevents re-circulation or re-use volumes, customer survey costs, data
analytics and other services that provide
Advantages of using mobile Type of campaigns that can valuable insights into the mobile consumer’s
vouchers and coupons for be implemented using mobile purchasing habits.
retailers and marketers vouchers This cost should include the issue,
“It is optimal that any mobile voucher distribution and redemption of the mobile
Mobile vouchers and coupons or coupon campaign be integrated into voucher or mobile coupon, although
offer higher redemption rates different marketing channels and does not reconciliation and settlement may incur
Based on more intelligent data and reside as a stand-alone opportunity. The further charges, depending on the nature of
improved profiling, mobile voucher beauty of the mobile phone is that it can the campaign.
30 wholesalebusiness Issue 1, 2011
