Retail Surgery: How can mobile coupons be used to drive footfall?

As consumers feel the pinch, retailers are struggling to attract them in-store. According to the British Retail Consortium, footfall fell by 2% in the first quarter of 2012. But at the same time, PayPal predicts mobile commerce will generate £2.5bn of revenue by 2016.

This growth in mobile needn’t be at the cost of the high street retailer however – if digital channels are used in the right way they can drive customers in-store. Mobile phones are starting to prove effective in bridging the gap between the digital world and physical stores, owing to their portability and ability to deliver real-time communication.

Mobile coupons, for instance, boost customer traffic by offering an incentive to visit. When they do so, the retailer can collect transaction data and use it to generate future marketing relevant to that customer.

Steve Rothwell, chief executive of mobile coupon provider Eagle Eye Solutions, says practical considerations are important: “It’s crucial to make sure stores are able to process coupons easily and in real-time.” Automating the process, he adds, allows stores to validate and measure campaign performance.

Digital coupons can also be used to create instant campaigns. If a retailer’s PoS suggests it’s been a slow day, for instance, it could launch a mobile campaign with coupons redeemed almost instantaneously. The retailer can track redemption rates of the coupons and alter, extend or curtail an offer within hours, based on its performance.