May 17th 2011

Diaspark on Mobile Couponing

Consumers are spending more than five hours a week on the mobile web and companies like Amazon and eBay are generating over $US1 billion in sales through their mobile channels. Gartner

Technology is changing rapidly and location-based services offer enormous opportunity for retailers.

With mobile coupon spending expected to grow at a rapid cumulative average growth rate of nearly 78 percent, it is one of the hot areas in mCommerce today.  As a result, no of Software companies and retailers, restaurants are collaborating to present wireless discounts to the consumer on the go. In Fact “A recent study by Gartner showed that mobile couponing was one of the top activities of consumers who use mobile devices for shopping planned on doing.”

Mobile coupons presents huge potential for retailers as it enables smart consumers to browse products vis-à-vis competitive products, view coupons and offers, compare and make a smart buying decision – all on a mobile device. Looking at the current adoption trends, there is no doubt that Consumer’s expectations from mCommerce will surely outpace retailer’s ability to leverage this phenomena .Therefore, it becomes essential for retailers to adopt new technology and path-breaking trends and be in front of increasing mobile consumer segment or risk alienate.

Diaspark is an early entrant in this segment with mobile application development services delivered to our clients. The app is specifically designed for Retailers, Restaurant Owners, Book Stores, Entertainment Supermarket, Food joints or anyone who want to download. You just name it. Here’s how it works. Those with iPhone and iPod Touch can download the software application and access coupons available from 100+ merchants. The coupons presented are location contextual. The coupon will consist of a bar code or a promotional code number. The phone user shows the screen to the cashier, who scans the bar code or enters the promotional code into the cash register to redeem the coupon customers.

Total mobile coupon spending in the U.S. is expected to rise from $90 million in 2009 to $6.53 billion in 2014, according to the 2010 U.S. Local Mobile Advertising and Promotions Forecast. By comparison, total U.S. spend on Internet coupons in 2009 was $4.2 billion, and is expected to hit $22.6 billion in 2014.This highlights the fact that how much consumers nowadays are relying on their mobile phone rather than their wallets. Consumers can easily carry coupons in their mobile phones and use it for payment and check out processes too. This element has added a lot of fun to the shopping experience of the customers.   As a result, the largest mobile network in the US has launched various initiatives in 2010, and credit card issuers also partnered with some of them to add supremacy to those initiatives.

References: Gartner and Borrell Associates

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