“Every app needs a purpose,” according to a new report. “Coupons can be that purpose.”
And the types of coupons offered could determine whether a retailer’s app, and the retailer itself, attracts customers, or loses them to the competition. So bring on the soda coupons – and forget the corn dogs.
Rovertown, a mobile app platform for convenience stores, has released the results of a new study, revealing what types of coupon deals shoppers are most interested in – and what deals they couldn’t be bothered with.
“Driving Sales with Mobile App Coupons” examines a year’s worth of mobile app coupons offered and redeemed on Rovertown’s platforms, at convenience stores across the country. It found that app users want drinks, snacks – and freebies.
Of nearly three dozen coupon product categories, the report found that coupons for fountain drinks were the runaway winner, with 800% more redemptions than the average mobile convenience store coupon. That’s twice as many redemptions as the second-most popular coupons, for energy drinks. Candy rounded out the top three.
Coupons for tobacco products and sports drinks provided the baseline, with about average redemptions compared to all other products. Coupons for convenience meals like sandwiches and hot dogs did okay, with slightly below average redemptions. Least redeemed were coupons for grab-and-go foods like pizza, chicken, fruit and – dead last – corn dogs.
What do convenience store couponers have against corn dogs, anyway?
The report didn’t attempt to explain the significance of the least-redeemed coupons. But it did emphasize the importance of considering the most-redeemed. “Fountain drinks are an easy entry point into mobile app coupons,” it noted. So in order to get customers engaged, “retailers might consider surprising new app users with a fountain drink coupon” that they’re likely to be interested in using.
And once that first coupon is redeemed, it’s more likely that shopper is going to turn into a loyal customer. The report found that using just one mobile coupon significantly raises the retention rate of app users, meaning they’re more likely to use the app again, looking for deals and doing business with that retailer.
It’s not just the product offered, though, but the type of coupon offered that matters. Perhaps unsurprisingly, shoppers like free stuff. Rovertown’s data found that coupons for free items performed more than 400% better than coupons offering mere discounts, though the report suggests that retailers use this costly strategy strategically, and sparingly.
Finally, after considering the type of product and the type of discount that couponers are most interested in, there’s the matter of the way those coupons are offered. The report identifies “two tactics driving the best results.” There’s the “Reduced Price Point” strategy, which simply offers deals on key categories like fountain drinks and coffee, keeping shoppers coming back for predictable deals. Or there’s the “Surprise and Delight” strategy, mixing things up by regularly changing coupon offers in order to keep app users interested and engaged.
Regardless of which strategy a convenience store retailer adopts, “coupons are one of the most direct ways to convert app engagement into sales,” Rovertown Head of Strategy and Analytics Tyler Cameron said in a statement. “That’s why it’s essential to have an effective strategy… Communicating about exclusive coupons on high-traffic items is one of the best ways to drive visits to your stores.”
So if you’re a convenience store app user, and you consistently get coupons for items you want to buy, that’s a sign your store knows what they’re doing. And if all you see are coupons for corn dogs – well, maybe your store needs to listen to some expert advice.
Image source: IntangibleArts 
