Study: Retailers abandon generic mobile coupons during holidays

Dive Brief:

BDO USA’s 11th annual Retail Compass Survey of CMOs found that 58% of chief marketing officers plan on including mobile in holiday marketing plans and 23% have increased their marketing and advertising budgets.
One major change: Generic mobile coupons are a tactic that only 8% of respondents plan on using this year, compared to 34% in 2015.
Retailers are planning on focusing mobile marketing on targeted ads (32%) and social media apps like Instagram and Snapchat (29%).

Dive Insight:

Not too long ago, digital coupons were considered an important way to leverage mobile because consumers have their phones on them throughout the day and don't need to remember to bring a coupon with them. BDO's research suggests the thinking around mobile coupons is evolving as retailers double down on customer-centric strategies that favor a more personalized approach over spray-and-pray pushes like generic coupons.

The shift toward targeted ads comes as marketers are investing in higher quality ads, with relevant ads providing a better experience than a generic coupon. Retailers are also want to reach shoppers where they are spending much of their time, which is in mobile apps like Snapchat.

Social media is an important part of the holiday marketing mix with 87% seeking to make meaningful one-to-one connections via social media. The most popular social media tactics include advertising deals and discounts (91%) and influencer and brand ambassador marketing with two thirds of respondents reporting they plan on partnering with a third party.

Beyond the shift away from mobile coupons, BDO's research suggests few other significant changes in how retail CMOs will approach holiday marketing this year.

Omnichannel marketing, a growing focus for marketers, will continue to play key role this holiday season, with one-third of retail CMOs reporting they will adjust strategies in response to customer demands for a consistent shopping experience across different channels. Of these, 91% plan on implementing consistent pricing and 86% plan on using consistent promotional strategies across all channels.

This story is part of our ongoing coverage of the 2016 holiday shopping season. You can browse our holiday page for more stories.