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SMS Mobile Coupon Redemption

by bjallen
11 replies
Hi All,

I am working on a quote for SMS Text Marketing for a nightclub with 4 locations. They asked about a method for redeeming the coupons from the customers cell phones that would keep them from re-using them. (running to different bartenders to get their free drink) They would also like to have the ability to track redemptions so they know how well their campaigns are working.

I started researching mobile phone scanning devices, but wow, between the scanner, the software and the server, it will add $2K to $3K to the startup cost for them.

Does anyone who is doing SMS text marketing have a method for tracking and fraud-proofing mobile coupon redemption that doesn't cost an arm and a leg?

(I suggested a red X on the hand of every coupon redeemer so they can't redeem twice, but nobody seems to like this idea)

Thanks!!
BJ
#coupon #mobile #redemption #sms
  • Profile picture of the author redlegrich
    I'm hoping someone will have a good idea here! If the coupon user is paying cash for each drink then they could certainly game the system. With a server or credit card payment (your tab) there is a lot less likely chance for exploitation.

    I'm curious in regards to coupons for free drinks and two 'fers. Is that allowed any more? Most states are pretty strict about that sort of thing. Happy hour pricing is OK, but freebies and things like that are frowned upon in many states.
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    • Profile picture of the author mrcouchpotato
      Well....how to redeem them and keep people from reusing them is easy. Make the customer delete the text in front of the server. That's what I had to do when I used one at a restaurant recently.

      As for keeping track of how many are redeemed I'm not sure.

      Mike
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      • Profile picture of the author sitefurnace
        Originally Posted by mrcouchpotato View Post

        Well....how to redeem them and keep people from reusing them is easy. Make the customer delete the text in front of the server. That's what I had to do when I used one at a restaurant recently.

        As for keeping track of how many are redeemed I'm not sure.

        Mike
        Mike, Before they delete it they could just forward it to all the friends they are there with.... and then they could forward it back again - unlimited drinks thank you!

        You need a system where the coupon is redeemed against the mobile phone number if your going down this route.

        I don't know how these sms systems work, can you send individual codes to each handset on the list or is it like email marketing where you create one email and blast it to all?

        I think the best way would be for it to be built into the functionality of the SMS system itself but I don't know if these systems do that.

        Maybe for this scenario you could do something like this:

        Send out a code but say that it is only valid for the evening or 1hr(happy hour) Say that if you show this code to the bar staff they will give you discounted drinks all night or between 8-9pm

        Brief the bar staff that anyone in the club between that time that show the code with that days 'keyword' should automatically get $1 off their drinks no matter how many they buy.

        The control will come from the time cutoff - just offering one free drink may be complicated to engineer.

        For a restaurant - show todays coupon code to your waitress to get 20% off your bill - in this scenario its unlikely that anyone will pay for two meals in one evening to try and abuse the offer.
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  • Profile picture of the author Nick Surran
    Find out if their point of sale system allows entry of a coupon code of some sort. Then include a coupon code in the text offer and have the bartender/server enter it when they ring up the order. If they can do this with their POS, they should then be able to get some sort of report as to how many coupons with that code were redeemed. Just use a different code for each different offer.

    As far as one time use, I like Mike's idea of having the customer delete the text in front of the employee.
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  • Profile picture of the author iAmNameLess
    Originally Posted by bjallen View Post

    Hi All,

    I am working on a quote for SMS Text Marketing for a nightclub with 4 locations. They asked about a method for redeeming the coupons from the customers cell phones that would keep them from re-using them. (running to different bartenders to get their free drink) They would also like to have the ability to track redemptions so they know how well their campaigns are working.

    I started researching mobile phone scanning devices, but wow, between the scanner, the software and the server, it will add $2K to $3K to the startup cost for them.

    Does anyone who is doing SMS text marketing have a method for tracking and fraud-proofing mobile coupon redemption that doesn't cost an arm and a leg?

    (I suggested a red X on the hand of every coupon redeemer so they can't redeem twice, but nobody seems to like this idea)

    Thanks!!
    BJ
    Haaa... yes... the easiest way to do this is a ticket system. Otherwise the club is going to be paying way too much money without seeing a return.

    What you should suggest, and advise, is when you promote a night sending out some kind of promo text, the club usually would have a doorman carding people right? If that is the case, the doorman should have tickets, and they should show the text message at the door in order to receive drink tickets. I have a couple big clients I do this for, and I'm going to tell you exactly why they will stay clients of mine for a very long time. Instead of a sure fire way and high tech way to prevent abuse, you keep costs low with tickets, and the promo text brings people in there without a doubt, but people forget about their text with a special offer. So basically, the owner gets more customers, without having to provide deals for everybody. Higher profits.

    What you need to stress, is that night clubs do best when it isn't a coupon... it does best when it is advertising specials, or a show the text at the door and get $1 off ALL drinks, or something similar.

    He shouldn't be worrying about that, he should be worrying about his own employees taking advantage of this to make more in tips.

    Another EASY way around this, is to have only one bartender handle the coupons.
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  • Profile picture of the author MaxReferrals
    Similar to what Iolaus said.

    1. Unique identified code, could be alphanumeric etc.
    2. Server keys or redeems to apply the voucher/savings.
    3. Their POS logs it.
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  • Profile picture of the author iAmNameLess
    One method if there is just a small list, under 100... have the list organized and the bartender should cross off the number when they order.
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  • Profile picture of the author redlegrich
    The ticket idea really makes a lot of sense. Easy, reliable and no fancy tracking tasks or infrastructure. Keeping lists, tracking codes and so on just get in the way of what the bar is there to do, make money serving food and beverage.
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