Characterizing likely coupon redeemers for mobile promotion via business analytics

Abstract

Mobile commerce market became larger than ever, and companies rely on mobile promotion more than ever. However, many companies in South Korea use ineffective targeting strategies for mobile promotion usually relying on marketing department’s intuition. This research aims to assess and improve mobile promotion targeting of South Korean companies, especially focusing on mobile coupon promotion, and characterize likely coupon redeemers with a mathematical model. Throughout a large-scale field experiment, we specified a likely redeemer group. Compared to random control group, representing the whole active mobile customers of a South Korean Company, likely redeemers are more deal prone and have more actively purchased from the company’s mobile application more recently. Surprisingly, likely redeemers spent less than average.