News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Mobile couponing will save UK millions in fraudulent redemptions
Is there a way to prevent paper couponing fraud? According to Shopitize, the way to solve the problem, and save companies in the UK millions of dollars a year, is to move to mobile couponing.
Coupons continue to be a valuable acquisition and loyalty tool. However, around 30% of paper coupons in the UK are subject to fraud, according to mobile coupon service Shopitize. This misredemption and malredemption of paper coupons is costing firms in the region of $240 million a year.
The problem shows no signs of abating with consumers attempting to use out-of-date coupons or sharing discount codes with friends, particularly via social channels.
"It is extremely difficult to try and come up with a solution that prevents paper couponing being subject to fraud," says Dr Alexey Andriyanenko, joint managing director and co-founder of Shopitize, in a company blog post. "Attempts have been made, either by training retail staff to be more vigilant or by introducing more sophisticated bar-coding, but ultimately mis/malredemption still takes place which greatly increases the costs for any brand running a campaign."
However, the use of mobile coupons can go a long way to preventing fraud, according to Andriyanenko, who believes it has the capacity to be virtually 100% fraud free. Furthermore, the process of redeeming a mobile coupon is faster and easier for consumers and retailers alike, and makes the entire process safer.
"Mobile couponing also does not rely upon the retailer to authorize the coupon, so human error is eliminated," says Andriyanenko. "A busy, tired, cashier no longer has to manually verify countless paper coupons at the checkout. Now it is done via our automated ecosystem, not at the check-out, thus preventing queue bottlenecks."
- Poor mobile connectivity costing UK retailers 1.2 billion pounds
- Multi-tasking costing UK marketing industry 44 million days of productivity every year
- Expert: How to use events as lead-gen
- Study: Brands keen on cross-channel but falling short
- Fraudlogix IDs 'least fraudulent' sites
- Are you EMV-ready? If not, it could prove costly.
- Who are the ad blockers and why are they blocking?
- Expert: EMV switch may not stop fraud
Featured White Papers
- What should drive email Frequency
eDataSource compares certain quarterly email activity and engagement metrics across four similar retailers, based on our visibility into the email...
- The Design Advantage
Design is more than just an artistic endeavor. It is a philosophy and culture that influences every business decision. Companies...