Brentwood Ace sees loyalty membership soar 545% with mobile promotion

For independently owned Ace Hardware stores, mobile promotions are driving conversions and increased shopper loyalty.

For Brentwood Ace Hardware in Brentwood, Calif. a recent mobile promotion yielded a 545 percent increase in the shoppers registered for the store's mobile loyalty club. According to FunMobility, a mobile promotion software company, the program yielded a 59 percent clip rate and 80 percent redemption rate over a 30 day period.

More significantly, 35 percent of shoppers who registered for the loyalty program responded to a follow-up message.

For Pete's Ace Hardware in Castro Valley, Calif., integrating mobile marketing with in-store signage was a recipe for improved redemption rates, increased cart size and higher engagement with the store's loyalty program.

Pete's Ace had run social media-based ads and banner advertising in the past, but mobile coupons were new for the independently-owned business. Owners Linda, Jeff and Jason Roark had wide-reaching goals: they wanted to attract new customers and repeat foot traffic, increase cart size and grow revenue and profits. Leveraging mobile would also help the store attract younger, more mobile shoppers, and grow membership in the store's mobile coupon club, according to FunMobility.

In-store signage was paired with mobile display ads, mobile search/PPC advertising, social media and email.

In addition, shoppers could access the mobile coupons by texting a keyword or scanning a mobile QR code, which would also enroll them in the store's mobile loyalty program. This lets Pete's Ace establish an ongoing relationship with the shopper and send push messages directly to their mobile devices.

The results were dramatic. The 14-day mobile coupon campaign resulted in a more than 13 times ROI. Mobile redemption rates increased 49 percent, cart sizes soared 411 percent, click-through rates were up 36 percent from previous campaigns and 190 new members signed up for Pete's mobile coupon club (only 1 percent unsubscribed).

The dominant point of view of how retailers should be using mobile effectively varies. Many are moving away from offering mobile coupons and instead are trying to engage shoppers with games and interactive features. Pete's mobile coupon program defies this conventional wisdom, proving that coupons, when paired with loyalty programs and a system to measure results can be effective.

For more:
-See this Mobile Commerce Daily story
-See this FunMobility video

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