Moonstorm has launched a mobile coupon service in California called Cellfire, which “offers valuable coupons from a list of local and national retailers within the cell phone user’s geographic region and allows the user to access those coupons on their cell phone”. They can either show the coupon to the cashier or use a “call-in” feature that allows a person to click on a local offer, such as “$3 off large pizza”, and the phone will dial the closest participating pizza location.
Apparently it’s doing quite well…it’s showing a redemption rate in the high teens, with some coupons in the 20% range. I’m told this compares very favorably with paper coupons which have a redemption rate of less than one percent. This makes sense, since people have to pay a lot of attention to use paper coupons whereas they pretty much always have their phones with them, and can quickly search for a coupon when they are out and about…
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