The Challenge
Brand and retail marketers face various challenges in trying to drive sales through tactical promotions or through larger strategic loyalty initiatives. In particular, current methods fall short as they have:
- Limited ability to target the relevant customers – especially the elusive 18 to 35 age group
- Low consumer redemption rates (0.1% - 2%)
- High associated cost – costs stacks up with production, distribution, collection and reconciliation of paper coupons/vouchers (approximately GBP 0.80 – 1.20)
- A lack of data collected on who is redeeming the offers, at what store and at what time, which would improve the relevance of the promotion
- Long lead time in setting up, collecting the coupons and reconciling the redemption rates
The Solution
Our solution addresses the challenges highlighted above. The customer experience is simple and follows existing customer behaviour.
Customers text in a message to a memorable short code and receive back a mobile coupon in the form of a barcode or PIN. RAPOSNet terminals are distributed at strategic retail locations, where the cashier is able to validate the offer for the customer.
Benefits of the solution:
- Requires no upfront integration with the POS
- Allows brands and retailers to run a cost effective targeted short term 2-3 month campaign in a matter of days
- Achieves much higher redemption rates (our case studies have shown 4 – 10% redemption rates for push based campaigns and up to 70% for pull based campaigns)
- Collects data on redemptions and customers to better target the offer
- Differentiates the campaign by using an innovative approach and offers to drive footfall or sales
In addition, we have also rolled out our promotional network in strategic retail sectors (leisure sector focused), that can allow brands to simply run campaigns without thinking about the technology and logistical requirements.
Diagram
Step 1: Customer listens to a radio show and is offered a free gift if she participates by sending in a text message.
Customer receives their unique offer in the form of a barcode or PIN to her phone
Step 2: Customer goes to the participating retail outlet.
Step 3: Customer scans the barcode on the RAPOSNet terminals. The RAPOSNet terminal sends the promotional request to the RAPOS™ server.
Step 4: RAPOS™ server authenticates and validates the offer. Data is captured at this point and the transaction confirmation is sent back to the RAPOSNet terminal.
Step 5: The RAPOSNet terminal prints out a coupon for the offer and the retailer can check immediately the customer activity and redemption levels online
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