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BizReport : Mobile Marketing : August 31, 2010

Pizza parlor m-coupon campaign delivers success

Shakey's Pizza Parlor decided they wanted to try a slice of mobile marketing and after a one-day mobile coupon promotion found themselves tasting success.

by Helen Leggatt

Shakeys_Logo_small.jpgHaving populated their consumer database with mobile phone numbers following a multi-channel opt-in campaign on radio, in-store, and advertising, Shakey's put the data to good use by implementing a one-day-only mobile coupon campaign.

The coupon was sent out via SMS to 9,800 consumers that had previously opted-in. The call-to-action, "Thanks from SHAKEY'S PIZZA. Get 1 FREE MEDIUM PIZZA, today only, 5/29. Dine in only. Present this text to cashier. Not transferable", resulted in more than 1,000 consumers redeeming the coupon - a conversion rate of over 10%.

"We continue to see our customers shift marketing budgets to text messaging offers after implementing successful test offers. Shakey's has a great brand and tradition so we are not surprised to see their customers react so positively to these mobile offers," said Scott Frohman, CEO of Options Media CEO, the company that managed the SMS campaign for Shakey's.

The coupon has shaken of any stigma attached to its use, perhaps in part due to the convenience of electronic and mobile formats. While only 1.5% of all coupons are distributed digitally, redemption rates are impressive at around 10-15% compared to an overall 1.2%.

Borrell Associates forecasts mobile coupon growth will rocket from 2009's $5 million to $2.4 billion by 2013.

Tags: mobile coupons, mobile marketing, text messaging

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