Cellular Coupon Savings
April 07, 2008
Cellfire gives coupons a 21st-century makeover
By Alex Palmer
The coupon, which has served as a reliable consumer incentive for decades, is getting a 21st-century makeover. San Jose, Calif.–based Cellfire Inc., a mobile coupon company founded in 2005 and expanded nationwide last year, is offering access to myriad discounts and savings to customers who download the company's application on their cell phones. Those with the application can find two-for-one, 20 percent off, or any other of the many deals Cellfire features, from vendors ranging from Wienerschnitzel and Supercuts to Enterprise Rent-A-Car and, most recently, Extreme Pita.
Though this use of the technology is still in its early stages, it seems to be catching on. According to Cellfire, in the last six months mobile coupon usage has increased 119 percent at the company, and while younger consumers make up a majority of Cellfire's customer base (the demographic least likely to use traditional, clippable coupons, according to the Promotion Marketing Association's Coupon Council), mobile coupon use in those aged 34 and above has tripled in the same period. Those at Cellfire are emphasizing the convenience that these straight-to-your-phone offers provide.
"What are the three things that everyone carries with them all the time these days? It's the keys to your house or your car, your wallet and your phone," says Dwight Moore, vice president of corporate marketing for Cellfire. "So that phone is always with them and always at the ready when they're shopping, and they can easily find the offers at the time and use [them] right there."
Moore points to several factors that make Cellfire's program a likely success. For one, consumers are embracing the idea that phones can serve purposes beyond calling and texting: Consumers embraced the iPhone's requirement that customers buy data services with the phone, and Sprint has recently announced a $100 Unlimited Plan. Instead of working as some promotional tools do, where consumers receive offers through texting, Cellfire allows the end-user to view available coupons when they choose, which avoids concerns of unwanted or "spam" texts.
Moore explains that for vendors, the cellular coupons have advantages over traditional paper coupons because being transmitted electronically rather than through the mail, they require fewer expenditures of energy and materials. Also, they can directly target potential customers, who can look at coupons based on location and preselected preferences, increasing the likelihood of redemption.
Mobile Coupon Redemption
• 470 percent of mobile coupon redemptions were from shoppers under 34 years old
• Redemption by consumers over 34 years old tripled in the last six months
• Majority of discounts were redeemed Tuesdays, Sundays and Wednesdays
• Three of the top five areas using mobile coupons most frequently are in California (the others are Dallas/Ft. Worth and Atlanta)
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