Tips & Tactics to Drive Mobile App Coupons
ST. LOUIS — As today's convenience store retailers shift to digital storefronts that go beyond rewards programs to embrace delivery, ordering, payments and other technologies, coupons continue to be a crucial tool that links app usage with sales.
Based on an analysis of dozens of convenience retailers from Jan. 1 through Dec. 31, 2023, Rovertown, the mobile app platform designed for convenience retailers, revealed top coupon categories, practical tips and tactics for success in a new report, "Click to Claim: Driving Sales with Mobile App Coupons."
[Read more: Convenience Retailers Push the Engagement Envelope]
"Coupons are one of the most direct ways to convert app engagement into sales. That's why it's essential to have an effective strategy," said Tyler Cameron, head of strategy and analytics at Rovertown. "Our analysis reveals several insights that will help retailers level-up and drive better results with coupons."
Key insights from the report include:
Coupons drive retention. Retailers see an immediate, 18 point increase in the retention rate of app users once they redeem just one coupon.
Free items resonate, but there's a catch. Coupons with free items performed 408% better than coupons with reduced price points, but retailers should exercise caution. The added cost of free campaigns means it may make sense to instead offer meaningfully reduced prices, Rovertown reported.
Fountain drinks reign supreme. Fountain drink coupons drove 799% more redemptions in total, across the Rovertown platform, compared to the average category of coupons. Energy drinks took second place (396%) and candy rounded out third (383%).
Two tactics can drive success. Convenience retailers using two tactics — Surprise and Delight and Reduced Price Point, Limited Choices — saw increases of 460% and 780% over the average retailer based on the percent of users redeeming coupons and the number of coupons redeemed per user.
"App strategies should always compliment in-store strategies," Cameron said. "Apps are fundamentally communication platforms, and communicating about exclusive coupons on high-traffic items is one of the best ways to drive visits to your stores."
The full report is available here.
Headquartered in St. Louis, Rovertown's customizable platform empowers retailers to build branded, design-forward apps and make self-service updates in real time.