Mobile Coupons by JCPenny


Mobile Coupons by JCPenny
The large retailer JCPenny recently made its first move into mobile couponing by piloting a program in Houston with 16 stores. This is following a trend of successful mobile forays by companies like Starbucks and Domino’s Pizza. The would allow for redemption of mobile coupons at the point of sale (POS). That way as the phone never leaves people’s side it is easier to manage then clipping and saving paper coupons.
Neil Stother, an analyst at Forrester research , stated “”In a down economy, we’ve seen online couponing expand, and this is [a similar] extension to the mobile phone.” (Dillworth, 2009). While fast food and grocery companies have been the pioneers mobile is quickly emerging in other verticals and with the growth of online couponing the retailer wisely seeks to gain traction in that market.
The company has run mobile campaigns since 2007 but this new foray is meant to mostly maintain customer but will also work on awareness and some new customer acquisition. The channel is for younger consumers who do not use coupons. The redemption rate is higher as well being closer to 10-20% as opposed to 0.5% with traditional direct mailers (Dillworth, 2010). The brand acknowledges that it will need to work on training customers for this new foray into mobile.
Source:
Dilworth, D. (2009, September 25). Jcpenny takes coupons mobile. Retrieved from http://www.dmnews.com/jcpenney-takes-coupons-mobile/article/149790/

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