Cellphone coupons result in win-win to consumer and retailer

One area where cellular phones have seen a jump in usage is as a way to distribute coupons to shoppers. Instead of having to go through newspapers to find a coupon that might match your shopping needs, cellphone users can opt-in at certain sites to receive coupons designed especially to match their needs. Web sites like 8coupons, Yowza, Zavers and Cellfire will send out coupons based on the products and services that you show a desire for. Of course, there are retailers that send coupons directly to potential customers without the use of a third party company. Either way, many of those using cellphone coupons wouldn't touch one made out of paper; according to Brent Dusing, CEO of Cellfire, about a third of those who signed up with his company have never used paper coupons.

To show the growth of the business, 10 million digital coupons have been redeemed in the first half of this year, a 25% gain from last year's first half number. And new services are leading the growth. Third party firms like the previously named 8coupons and Mobiqpons can send out discounts to a potential customer on his cellphone when he/she is only a few blocks away from the retailer. And while only 1% of paper coupons are used, Cellfire says that its redemption rate for mobile coupons is an impressive 15% to 20%.

The benefit to using these discounts goes both to the customer and to the business owner. A cellphone user recently scored an $8 discount on tickets to an off-Broadway show and was able to take 15% off his bill at the Container Store simply by using the coupons on his phone. On the other hand,  Buttercup Bake Shop in New York City recently used 8coupons to send out a special promotion for 8 cent cupcakes to subscribers by text message. Over 500 people showed up to take advantage of the offer. It's a rare win-win relationship.

source: NYTimes