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Upstream: Consumers prefer operator marketing to Groupon

Tim Green
Upstream: Consumers prefer operator marketing to Groupon

Says 70 per cent of US smartphone owners are interested in carrier offers, against 11 per cent in 'high-profile daily deal' sites.

The UK research revealed a similar trend where more than half (52 per cent) of consumers trust their mobile phone company when redeeming deals via SMS, compared to eight per cent who would trust promotions from a third-party.

It all flies in the face of the astonishing growth of firms like Groupon (which went from zero to $1bn in turnover in 18 months), but this is what Upstream found.

The answers were similar when the issue of trust was investigates, with 29 per cent of US mobile users prepared to put their trust in purchasing deals from their mobile service provider and only 11 per cent in deal sites.

The UK research revealed 52 per cent trust their phone company when redeeming deals via SMS, compared to eight per cent who would trust promotions from a third-party.

“Given the consumer trust and openness to receiving mobile offers, there is a clear opportunity for carriers to market their services to their customers to build better customer engagement and drive higher average revenue per user,” said Alex Vratskides, CEO of Upstream.

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“But mobile marketers need to tread a fine line. Based on our experience with hundreds of brands and carriers all over the world, the opportunity to market over mobile must be carefully managed and limited to a number of personalised interactions per month, otherwise consumers will quickly opt-out or churn.”

Upstream runs messaging based loyalty programmes for operators and brands, and claims to have generated more than $500 million in incremental revenue for its customers.

Tags: marketing , crm , groupon , Market Data , upstream , offers

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