Planet Funk sees 91% redemption rate on mobile coupons
Planet Funk, a fashion retailer with stores in California, Texas and Colorado, has reported impressive results from a mobile coupon campaign designed to boost sales over the Christmas 2008 shopping season.
The retailer, which targets trendy young men and young women, saw a 91% redemption rate on the coupons and generated a 377% return on its investment in the campaign which launched on 21 November and ended on 21 December 2008. Twenty percent of revenue for the month of December was generated by the almost 2,000 coupons that were generated, and which were sent as SMS text messages via the MobileStorm digital marketing platform.
“Mobile is a natural fit for our customers and being able to give them such coupons — both in the store and online — that can be instantly received on their phones is a no-brainer,” said Kitiri Lomaka of Planet Funk. “The results we experienced proved this and we look forward to continuing our partnership with MobileStorm to drive future mobile campaigns. We now realize that mobile marketing can not only be affordable for companies like ours, but also wildly profitable if handled the right way.”
Planet Funk only sent the coupons to people who subscribed to receive text messages from the company. It advertised the promotion with signs inside its stores, on its website and blog, and on the websites of the malls where Planet Funk shops are located. Besides immediate revenue, the company also set the stage for future campaigns: 15% of coupon-redeemers opted in to receive future SMS marketing messages from the retailer.
“Mobile coupons provide end-to-end tracking, so it’s easy to gauge your return on investment,” says Jared Reitzin, CEO and founder of MobileStorm. “Clearly this investment was a huge success for them, and I am happy to be helping out a retailer I am a fan of during this recession.”
You can download a full case study on the Planet Funk campaign from the MobileStorm website.
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