In a recent ICOM survey of U.S. Shoppers, selected from a 40,000 HH database, 67% said they are much more likely, or somewhat more likely, to use coupons during a recession. Combine this study with the increasing popularity and reach of SMS in the U.S. and retailers have a compelling reason to invest in a mobile coupon solution. Below are SMS coupon solutions we have evaluated for partners each with varying reach, costs and simplicity that can be delivered through the Msgme technology.

SMS Barcodes (UPC). Standard bar codes delivered via MMS or WAP push. Since UPC codes will work with existing PoS scanners, this solution makes redemption and processing simple and cost effective requiring limited staff training. However, a significant number of handsets don’t have a high enough screen resolution for laser scanners to read the coupon code resulting in a limited mobile audience.

Text Barcodes. To solve for the penetration issues with UPC codes, vendors have designed unique PoS scanners that can read barcodes or unique redemption codes within text messages. This drastically increases the reach and leverages the processing simplicity of UPC coupon codes. Of course, integrating new scanners into existing technologies is an endeavor most retailers may find tough to rationalize – a major limitation with this solution.

SMS Redemption Codes. A unique redemption code delivered within the SMS message that requires the cashier to manually enter the code into the cash register. The biggest benefit with this solution is the reach as all handsets with SMS capabilities could participate. Staff training and the potential delays at check-out due to slower processing speed are shortcomings of this solution. However, if retail staff is already trained on how to manually process coupon codes through existing systems, this solution becomes a more viable option.

SMS “Reply Back” Codes. A unique redemption code that is dynamically delivered via SMS. Upon redemption, the customer replies back with a redemption keyword to the short code to process the transaction and confirm validity of coupon. The customer then shows the cashier the confirmation message to receive the discount. Not only can you reach a broad audience, but the transaction happens by the customer limiting staff training and removing any type of integration requirements. One shortcoming is the possible delay at check-out if the customer has difficulty texting or message response time is slow.

SMS Barcode/Redemption Hybrid. A solution that many retailers are leaning towards is a hybrid approach where customers are presented with a Barcode and a Redemption code option to choose from based on preference and device capability. In this case, scanner technology is leveraged when applicable and customer reach is broadened with the SMS redemption offering. As mentioned earlier, staff training and possible delays are potential shortcomings of the manual redemption solution, but this can be minimized if existing coupon programs are in place that require similar processing techniques.