Cohesion Case

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Making Business Decisions I: M-Coupon
Why are m-coupons better than traditional paper coupons?
M-coupons are superior to paper coupons in several ways. M-coupons are easily accessible and can be obtained and used at any time. You don’t have to worry about leaving your paper coupon at home and missing out on a deal. You can store the coupon to your phone and save the time that you would normally use clipping paper coupons. Using m-coupons is also environmentally friendly; by eliminating printing the coupons you are saving trees. M-coupons are cheap and easily traceable, according to an article on Haddonave.com mobile coupon redemption rates averages are 10 times higher than the paper coupon. The fact that the m-coupons are sent to a mobile phone they have a 95% read rate, unlike coupons sent in email or over the web.

What are the risks involved with mobile marketing and m-coupons? In any business venture you may always encounter some sort of risk. The risks associated with m-coupons are intrusion, scams, age appropriateness, and security. Using m-coupons is a very effective way to get that direct contact with the customer, and with that you can sometimes come off as being intrusive. You should set up a system that allows the customer to choose when they receive the coupons so they aren’t getting communications from you when they are not wanted. You don’t want your communications to seem like they are some sort of scam. Always be sure that communications are authorized by the receiver, the messages are clear, they are appropriate, and the option to opt out is clearly explained. Another risk would be to ensure that the content of your communication is age appropriate; depending on what you are marketing you want to make sure any information regarding age is clearly explained. This isn’t something that would necessarily affect the Café but is something to be considered when creating m-coupons in general. Lastly another risk would be security. You want to have your m-coupon system set up with a good security system to prevent anyone from hacking into your customers’ personal information. (Socolow, 2010)

What are the privacy issues involved with mobile marketing and m-coupons? Maintaining your customers’ privacy is very important when using m-coupons as a marketing tool. You should always get the proper consent from consumers before using m-coupons as a marketing communication. After the consent is obtained you should also make it easy for them to opt out from receiving the communications. You should also provide customization options for customers to control when and what is sent to them. Having a security system set up to protect consumer information that is stored in your system is also imperative, you don’t want to create mistrust by allowing their information to be compromised. There are also guidelines set up by the Wireless Association for location-based services. You must inform the customer of how their location information will be used, disclosed, and protected. (Socolow, 2010) How can the café benefit from collecting and tracking response rates of m-coupons by customers?

The café can benefit from collecting and tracking response rates of m-coupons by customers in many ways. It allows you to see how many people are actually using the m-coupons, unlike paper coupons that are more difficult to keep track of. It gives you a gauge to see how well your marketing strategy is working. You can also see how long it takes the customer to use the coupon from the time it was sent to them. By having the ability to track who is using the m-coupons and when you have the ability to contact them directly to get feedback using surveys or text messaging communications. You will have the ability to get information that will help in improving your marketing strategies directly from the consumers.

How can the café benefit from tracking if an m-coupon is forwarded to another cell phone?

The café can...
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