Study Shows ROI for Mobile Coupon Redemption

SMS Coupon Redemption rate

CodeBroker, a white-label mobile solutions provider, recently completed an in-depth study of its customers’ mobile promotions. The study revealed some interesting findings about A/B testing campaigns and mobile coupon redemption rates across marketing channels.


Before it began examining the data for its study, CodeBroker looked at standard average redemption rates for coupon promotions. They found two figures:

  1. The widely-accepted rates for coupons obtained from free-standing print inserts is .5% to 2%.
  2. Redemption rates for email coupons delivered through desktop channels is around 2.7%.

After combing through the data specific to this study, CodeBroker found the following results for mobile coupon redemption:

  • Coupons sent via a smartphone app are redeemed at a rate of 8%-16%
  • Redemption rates for coupons sent through SMS (text messaging) differ between subscription-based consumers (those who signed up to receive notifications and marketing messages) and on-demand consumers:
    • Subscription-based coupons were redeemed at an average range of 3%-10%; however, select promotions run by CodeBroker clients saw rates as high as 13%.
    • On-demand coupons (one-off promotions accessed by entering a promotional code) are redeemed at much higher rates, typically between 30% and 50%, with some promotions garnering a rate as high as 85%.
  • Coupons delivered via email accessed through a mobile device were redeemed at slightly higher rates than desktop-delivered email, typically within a range of 2%-4%.
  • Retailers who combined email with SMS saw redemption rates between 15% and 25%, substantially higher than email-only offers.

Case Study Results

CodeBroker also conducted an analysis of its specialty retail client’s experience deploying promotions via SMS-only and SMS combined with email. The data was sourced from a period of six ten-day promotions, delivered from Friday to the following Sunday. A key objective for the analysis was to determine which delivery channel drove the highest in-store redemptions. The promotion was for a 25% discount on purchases made using the mobile coupon. The marketing list that was examined contained around 650,000 subscribers. Here’s what the analyst found:

  • A 3.1% redemption rate for the first three weekends of SMS-only coupons.
  • A 5.5% redemption rate for the second three weekends of SMS-only coupons.
  • A more “exclusive” 25% discount offer (sent to the same recipients on Thursday instead of Friday) sent via SMS and email garnered a 5.4% redemption rate.
  • A follow-up message sent via SMS reminding “exclusive” consumers that the offer was about to expire drove the redemption rate to an average of 16.3%.

Based upon the A/B testing, the retailer discovered three results:

  1. SMS promotions without a reminder notification can be effective
  2. SMS reminder notifications can significantly drive more redemptions
  3. Better results can be achieved by combining SMS with other channels, such as email.

——–Coupon Redemption rate

Codebroker has been a leader in retail mobile marketing campaigns for over seven years. Its mobile solutions have resulted in enriched customer experiences, enhanced brand loyalty and improved lift for brands in more than 24,000 locations in the U.S. and Canada. For more information, contact CodeBroker at (800) 928 7315 or visit

Full results of the study can be found by visiting the CodeBroker website.


Written by Alex Brown

Alex Brown is a freelance author with over 10 years experience writing in digital marketing, media, technology and other verticals. His experience includes work for Adobe, Citrix, Target, MGM Resorts International, Yahoo! and other brands. He can be reached at


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