Using a smartphone to hunt for bargains

Women looking at a cell phone

Mobile couponing turns your smartphone into a bargain hunter.

Mobile couponing turns your smartphone into a bargain hunter: customers can find out about discount promotions, download coupons and redeem them immediately by using a special app.

With this innovation in mobile marketing, Telekom is providing retailers with an effective, low-cost way of fostering customer loyalty and protecting consumers' wallets.

Offers in several categories
Market research shows that two thirds of all smartphone users are interested in mobile couponing. This is no surprise because using mobile couponing is child's play and promises affordable shopping: users download the coupon application free of charge to their smartphone. In doing so they indicate their age, sex and e-mail address. The app is immediately active and starts to provide information about discount promotions in its vicinity.

The user can select offers in several categories, for instance dining, culture and education, leisure or shopping. A navigation function then guides the user to the relevant outlet - on foot, by car or by public transport. Really convenient feature: if you have your smartphone on you, you always have coupons.

Winning news customers
This gives participating companies a new, attractive way of encouraging customer loyalty and winning new customers: they can position their discounts in a time/location or offer-specific manner or depending on customer footfall. By combining this with location-based services, they can direct flows of customers selectively to specific branches for example.

Thanks to Near Field Communication (NFC), coupons can be scanned and validated at the point of sale in a contact-free way. Mobile couponing can be implemented without having to modify checkout hardware or change existing checkout procedures. The fact that mobile couponing makes marketing budgets more efficient is another advantage: it saves the cost of producing conventional paper coupons and the redemption rate is 5 to 15 percent as opposed to only 1percent in the case of paper coupons.

Viral mobile couponing
Mobile coupons are set to become more attractive due to the growing use of smartphones and Tablet PCs. Deutsche Telekom's corporate customer arm, T-Systems, offers a full range of services related to this innovative marketing solution on a one-stop basis - from developing a fraud-proof system, integration into the users in-house checkout and ERP systems or existing corporate applications, through to analysis and transaction-based accounting.

T-Systems has developed a solution concept for viral mobile couponing that extends the reach of mobile couponing solutions even further in cooperation with the Ludwig Maximilians University in Munich.

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Telekom Innovation Laboratories

Telekom Innovation Laboratories