Mobile phone coupon campaign rings up results for Hollywood Video
As consumers migrate to other new entertainment media choices like video on demand or Internet downloads, Hollywood Video is also is looking to new ways of acquiring new customers for in-store movie rentals. The company used Cellfire, a mobile couponing service, to deliver coupons to registered users’ cell phones for store redemption, in a pilot program that saw a redemption rate 200% higher than with a traditional coupon program, according to Cellfire.
The coupons are delivered to registered users` cell phones via an application that users download into their phone from Cellfire’s web site. Once the application`s loaded into the user’s phone, new offers are delivered wirelessly to the phone, based on the user’s registered location, and are accessible to the user when he or she refreshes that application on the phone.
The coupons are displayed on the cell phone’s screen in full-color graphic format. They’re not scanned, but the coupon on the cell phone screen is simply shown at the point of sale to an associate for redemption. Associates are trained to identify the coupons, says Brent Dusing, Cellfire’s CEO.
Dusing says that with no paper or printing costs, the mobile campaigns have lower customer acquisition cost and lower production costs than a traditional paper coupon campaign, though he did not disclose numbers. He also says mobile campaigns have a particularly high reach into the youth demographic, with 63% of Cellfire`s audience base under 35 years old.
Hollywood Video’s pilot program with Cellfire, originally limited to California, went national last year. The national campaign showed that new customer acquisitions through Cellfire were 25% higher than with traditional couponing, with significantly lower costs and more opportunity to optimize the campaign going forward based on initial results, according to Cellfire.
Back...
