How to Increase Mobile Coupon Redemption with Geofencing

If you are a coupon  or a voucher app, then you know that the biggest challenge for apps like that is always to increase mobile coupon redemption. See how geofencing can help this.

This week’s industry: Mobile Coupons

With an increased consumer interest in mobile technology and devices accompanied by economic recession the mobile coupon industry is experiencing an explosive growth. An eMarketer report projects the number of U.S. mobile coupon users will rise from 12.3 million in 2010 to 53.2 million in 2014, which is a more than 300% increase.

Despite such incredible predictions there is a significant problem with mobile coupon apps which if not dealt with will become an obstacle towards 53.2 million – most consumers don’t think about these apps when they are actually shopping. A recent research reveals that 47% of consumers want retailers to send reminders of available mobile coupons to their devices when they are in or near the store. This is where geofencing technology comes in – it allows mobile coupon apps to do exactly that and increase their mobile coupon redemption.

Taking Mobile Coupons to the next level

For starters, coupon companies can indeed just send notifications to remind the customers about any coupons available when they enter the store or pass it by. To make the notifications even more effective, coupon companies can provide customers with personalized coupons tailored to their demographics, personal preferences and purchase history.

What coupon companies also could do to make the notifications even more engaging is enrich them with pictures and sounds. Imagine you are a coupon company and you have multiple clients from the same industry, say, fast food chains. When you create notifications you can attach different tunes associated with each particular client, for example if you were to create a notification about a coupon for McDonalds you could add the famous ‘Buh da buh buh buh, I’m lovin it’ tune to that notification. Imagine the look of surprise on your customer’s face when he receives such a notification when passing by a McDonalds restaurant! ‘Is it really possible with geofencing?’ – you asking yourself right now. Yes, it is and so are a lot more things.

What do our clients think?

Three of our clients,, Find&Save, and Vouchercloud, are major mobile coupon companies in the US and UK, and they are living examples of the fact that geofencing technology can increase mobile coupon redemption and benefit both coupon apps and their users at the same time. Their Click Through Rates exceed 40% and their conversions and sales grow every day.

“Geofencing has allowed us to remind our users to check our app at just the right time – when they’re already at the grocery store. That way we can deliver value to our customers when it will have the greatest impact’, – says Michael Gross, Product Manager at


Want to increase your app usage by 25%?

Download our case study for insights on how to boost app engagement by at least 25% with location based notifications.


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