In this post we explore how and why to use Infobip’s Coupon Service as part of your SMS customer engagement.
Traditionally, marketers and retailers distributed printed coupons for consumers to redeem at the point of sale, or printed them on product packaging to enable sweepstakes and rewards based on point collection.
With the rise of mobile phones, new possibilities emerged for loyalty programs. SMS coupons appeared as a customer-friendly solution for boosting loyalty over a reliable communication channel – SMS messaging – which appealed to different consumer profiles and age groups.
Relying on enterprise SMS technology rather than apps, they offer customers the convenience of not having to download additional software to participate in promotions.
According to Juniper Research, mobile coupons have a redemption rate of 10%, while traditional ones’ rates amount to only 1%.
With a series of refinements and developments around its Coupon Service, Infobip aimed to minimalize the complexity for enterprises when they integrate a good marketing idea with a technical solution that will turn it into reality.
Modular and expandable, the service can meet the challenge of any marketing campaign. It is designed to help enterprises address the competitive environment in which companies are constantly looking for new ways to stay on top, and engage both new and existing customers.
Use Point Collection in your SMS customer engagement
The Point Collection over Coupon service enables enterprises to create engaging competitions where consumers collect points based on the value of the coupon and compete with other consumers to win prizes. The winner doesn’t only need to be the consumer with the highest number of points as consolation prizes can be awarded via a random draw to contestants that might not have joined the competition on time.
- Infobip can track how many points a certain MSISDN has won, keeping track of how many points a single customer has collected.
- We can share results with the enterprise in real time over API calls, giving insight into real-time analytics and statistics about the campaign and the behavior of the consumers.
- Certain limitations can be set, depending on the needs of the competition:
- The duration of the competition.
- You can set how many coupons can there be per MSISDN number, limiting the number of coupons a single user can enter to prevent customers from abusing the campaign.
- Determine the length of the coupons, making them user friendly.
How does this competition look like in practice?
- Customer buys a beverage.
- He or she opens the beverage and finds a coupon on the underside of the cap or on the back of the label.
- The customer then sends the coupon to a short code or a long number which is provided by Infobip.
- Based on the value of the coupon the MSISDN gets rated. The larger the container for example, the more points the coupon is worth.
- At the end of the competition, the customer with the highest number of points wins the main prize.
Use Winning Coupon in your SMS customer engagement
The Winning Coupon option enables enterprises to create competitions based on pre-defined winning coupons. Unlike the Point Collection over Coupon this service gives the possibility to engage consumers in a campaign where they can be awarded regardless of if they’re consuming the most and winning the competition.
The customer buys an enterprise product and by sending a coupon found on the back of the label or under the bottle cap, they get instant information if they’ve won the defined prize.
- Infobip generates coupons for the client.
- We check if the coupon is valid or not, preventing consumers from entering random coupons.
- We check if the coupon is winning or not.
- Depending on the campaign’s needs, various rules can be set:
- The duration of the promotional campaign.
- How many coupons can there be per MSISDN, giving the option to limit the number of prizes a single user can win.
- Determine the length of the coupons.
Winning Coupon solution in practice:
- Customer buys a product.
- They find the code on the back of the label or packaging.
- The customer then sends a message with the coupon to a short code which is provided by Infobip.
- Infobip checks if the coupon is winning or not and sends a reply message accordingly.
Use Voucher Coupon in your SMS customer engagement
The Voucher Coupon solution enables an easy and effective distribution of vouchers over 2-Way SMS messaging. A voucher is sent to the mobile phone of the user and that voucher can be used for different promotional activities, such as discounts or free gifts for the consumer. This ensures that the voucher isn’t forgotten at home and will never be used because the user has it on a mobile phone, ready to be redeemed at his or her convenience.
- Infobip generates coupons and does the coupon validation.
- We do the voucher distribution via 2-Way SMS messaging.
- Several limitations can be implemented:
- The duration of the promotional campaign.
- The number of coupons that can be sent by each MSISDN.
- The length of the coupons.
Voucher Coupon in practice:
- Customer buys a candy bar.
- Customer sends an SMS with the coupon found on the candy bar wrapper.
- Infobip validates the coupon and sends back the voucher.
- Customer is able to use the voucher for a discount on the next buy, a gift or a free candy bar.
We hope you found value in this guide to making Coupon Service a part of your SMS customer engagement.
Be sure to also take a look at this case study exploring an Infobip Coupon Service implementation.