Mobile coupons are still a narrow niche in the retail industry, but high profile pilots among industry heavyweights have made a lot of
retailers rethink the future of how promotions and redemption will be managed
A recent study by Juniper Research predicted more than 300 million consumers around the world will have used mobile coupons by 2014 and this usage will generate a redemption value close to $6 billion globally.
Combining the convenience of mobility and the distinction of being “green” and eco-friendly, the use of 2D scanning entered the mainstream when industry heavyweights like Target and Starbucks recently got ahead of the curve in the mobile couponing space.
While traditional bar code scanners can only read linear bar codes, newer 2D imaging scanners can read self-illuminated displays featured on PDAs and mobile phones. 2D scanning eliminates the need for the consumer to carry paper print outs, as retailers scan the coupon directly from the digital display of the consumer’s mobile device at the point-of-sale.
Target’s current mobile couponing program enables customers to receive exclusive offers via their mobile phones that can be redeemed at checkout with a 2D scanner
Starbucks’ program is a bit different in that it allows customers to download a mobile application that gives them the option to check or reload their card balance and view their transactions. For the mobile payment feature, a 2D bar code is displayed on their mobile phone that can be scanned just like their plastic Starbucks card.
In addition to the high profile deployments at Target and Starbucks, there is growing interest incorporating 2D scanners into new stores and POS upgrades, according to Taylor Smith, Director, Scanning Product Management, Honeywell Scanning & Mobility
“There are several major retailers who are either in the piloting or evaluation phase,” for 2D scanning equipment, Smith said. While retailers realize mobile couponing is likely to represent only a small segment of their promotions, he added that implementing 2D scanners now is seen as a way of “future proofing” their investments.
Another example of the positive reception toward mobile couponing is a recent survey commissioned by Honeywell and conducted by Harris Interactive, which found that 46% of adults who own a mobile phone are at least somewhat likely to try receiving and redeeming bar coded coupons via their mobile phones—giving those retailers who are considering the upgrade to 2D scanners something to really sink their teeth into.
The survey showed even more opportunity for apparel and other specialty retailers, as young adults (ages 18-34) make up the largest demographic interested in mobile couponing, with 66% at least somewhat likely to try the technology.
Mobile couponing is also emerging as a new path to engage consumers, according to the survey, as almost one-third (31 percent) of adults who own a mobile phone said they would be willing to share their phone number with retailers in order to receive mobile coupons.
Smith added that retailers who adopt area-imaging scanners that are specially optimized for mobile couponing like Honeywell’s Genesis™ 7580, or the recently unveiled Xenon™ 1900, which utilizes Adaptus®™ Imaging Technology 6.0 to read high density linear bar codes, will be well positioned to tap into mobile couponing at the store level.
