How Brands Can Be Successful With Location-Based Mobile Coupons
Both Loopt and AT&T have unveiled mobile coupons for nearby customers, adding a real-time element to location-based deals. Loopt founder Sam Altman outlines three ways to make it work.
The future of location-based mobile coupons has arrived – you’ll soon be able to walk by a Starbucks and a coupon will be pushed to your phone thanks to recent developments in mobile advertising. This week, Loopt, the location-based app announced they are rolling out a new platform designed to send out mobile coupons based on your location. Attending SXSW this year? Loopt has set up an Austin-based moving “Rewards Wagon” and will be debuting their new Reward Alerts, where national brands and local businesses will offer limited-time deals to passersby, adding a real-time element to location-based deals.
AT&T also unveiled a new opt-in service called ShopAlerts. According to the wireless carrier, “Know What’s Hot” by receiving text alerts about new products, special offers, and events from K-Mart, HP, JetBlue, SC Johnson and other participating brands when you are nearby stores.
Will these new developments be game changers, and will this move see companies like Groupon, LivingSocial, FourSquare and Facebook partnering directly with mobile carriers as well as brands? Only time will tell, but Loopt founder and CEO, Sam Altman outlines below what needs to happen for these location-based coupons to be successful:
1) They have to include limited-time, high-value offers. If you walk by a Starbucks every day and get offered 25 cents off coffee, that’s going to get old, quickly. But if once a month, you walk by a Starbucks and get offered a FREE coffee coupon that expires in an hour, that’s memorable, and could actually get you to redeem the offer.
2) They need to give control to users. People may want offers for some things and not others. Let users help define what kinds of offers they want.
3) Loopt won’t be using SMS to deliver the offers. Text messaging can be expensive and is a personal communication channel. Loopt will be using iPhone and Android “push” notifications instead.
[via Business Insider]