People Want Incentives
People WANT incentives!
Numbers and statistics are crucial for marketers to help interpret trends within the market to increase conversion rates. Recent research has shown that consumers are far more likely to make a purchase from their mobile phones if they were properly incentivized. The information concludes that the use of discounts, coupons, loyalty programs, and gift cards will help dramatically increase conversion rates among mobile users via SMS. As a mobile marketer, it is essential to offer the potential consumer with an option that will bring potential savings or some sort of intrinsic value in order to persuade people to take action.
A combined study conducted by Sybase 365 and the Mobile marketing Association surveyed over 1,000 mobile users. 62% of those surveyed freely admitted that they would make a purchase via their mobile phone, but ONLY if given proper incentive to do so. The data shows that without any form of incentive, the majority of respondents would still use their mobile device to research the product or service being presented, which is still good news for marketers. However, 27% of survey takers said that they use their mobile to research product reviews, which has multiple implications;
- Consumers may still be slightly wary when SMS offers are received.
- Consumers ARE interested in the offers provided as they take the time to do their due diligence about the offer given. This is HUGE for marketers as it shows that consumers ARE willing to buy via SMS, they just need the right incentive to overcome their possible uncertainties.
Freebies and other giveaways are not the only incentives that will convince people to act upon an offer. Financial security seems to be a major concern among mobile users when faced with the idea of making a purchase from their mobile device. Within the same study, 25% of survey takers admitted that they would feel more comfortable about making mobile purchases if they were given a payment solution through their bank. 22% admittedly feel safe with Pay Pal as a primary payment option. This means that it is imperative to offer consumers a payment gateway that is convenient and familiar enough to the consumer that it instills trust.
An additional study provided by the Harris Interactive not only surveyed adults, but teens, ages 13-17 as well (future consumers). Each group was asked to rank incentive options. 80% of adults and 70% of teens admitted that they would prefer a cash incentive over any other form. The other possible options are as follows;
What Adults Want
49% of adults preferred free minutes
37% said that they would like coupons
31% would prefer free entertainment
24% want free music downloads
What Teens Want
61% would like entertainment downloads
57% said they would like free music
53% admitted that they would like complimentary minutes.
Clearly, when it pertains to mobile marketing, there are countless options and marketing techniques that could be employed. The one remaining constant is that the use of correct incentives will boost SMS conversion rates like never before.