This holiday season, apparel retailer H&M is using an in-store mobile program to drive quick sales and attain customer contact info for future email and mobile marketing activities. The company is handing out marketing collateral in-store, encouraging customers to sign up for email newsletters from the retailer via SMS/text message. When consumers send the text to sign-up, they receive a message encouraging them to reply with their email address, opting the consumer into H&M’s email newsletter and SMS programs.
Once signed up, shoppers receive an SMS coupon that can be shown to a sales associate for 10% off a same-day purchase. This lets H&M attract quick sales from shoppers that need that extra edge. Then, once the customer’s email is confirmed, they receive an additional 20% off coupon for their next purchase.
While email marketing has been around for a while, there is a growing focus on leveraging mobile for loyalty programs and for driving sales. According to the Yankee Group’s June 2013 US Mobile Marketing and Commerce Survey, 47% of smartphone users wish more stores offered mobile apps to collect and redeem loyalty points and an equal percentage would choose to shop at a store that offered a mobile loyalty program over a store that didn’t.
Strong efforts in mobile can also help retailers lessen the potential for showrooming (when customers browse in store, then find better deals online). Targeting customers at a personal level with deals and discounts for in-store purchases could create incentives to forgo searching online later.
Local advertisers should learn from H&M’s example and look for ways to provide local retailers with opportunities to build email and SMS loyalty programs. This will help local retailors to compete with national brands and address their customers’ desire for loyalty offerings.