HAMPSHIRE, U.K. – A new report from Juniper Research suggests that the global redemption rate of mobile coupons will average upwards of 8% by 2016, an eightfold increase over paper coupons campaigns, according to a press release.

The report found that mobile coupons have compelling advantages over their paper and online antecedents and are particularly strategic for bricks and mortar retailers in their quest to regain ground lost to online retailers. A mobile coupon can be individually targeted to drive foot traffic into stores.

The report warns, however, that the rise in mobile coupon redemption rates will only come after an initial period of experimentation by both coupon issuers and users, during which redemption rates may actually decrease slightly. After this period redemption rates will then start to rise steadily.

According to report author David Snow: “As with all new mass markets there is an initial ‘shakeout’ period.  North America and Western Europe are at this stage now.  For the next few years users will be signing up to multiple coupon schemes and deciding on the ones they like best – so now is a crucial time for mobile marketing agencies to get it right on behalf of their clients and establish a loyal customer base. ”

Other findings from the report include:

• The integration of mobile coupons and mobile payment data is rare and an untapped opportunity.
• Redemption values will exceed $43bn globally by 2016, driven by better targeting and mobile apps.

The Mobile Coupons Whitepaper is available to download from the Juniper website together with further details of the study ‘Mobile Coupons Update: Ecosystem Analysis & Marketing Channel Strategy 2011-2016.

From Shop.org: http://www.shop.org/press/20110527

Washington, May 27, 2011 – Shoppers are willing to interact with retailers through a variety of social networks and retailers have limitless opportunities to capitalize on the momentum, according to the 2011 Social Commerce Study, a joint research project by Shop.org, comScore and Social Shopping Labs. The report, which evaluates shopping directly influenced by social media, polled 1787 adult online shoppers in April 2011.

According to the survey, 42 percent of online consumers have “followed” a retailer proactively through Facebook, Twitter or a retailer’s blog, and the average person follows about six retailers. While shoppers’ reasoning for following a retailer varies, the majority of respondents (58%) said they follow companies to find deals, while nearly half (49%) say they want to keep up to date on products. More than one-third also follow retailers for information on contests and events (39%).

Though many retailers use social media to build their brand, research indicates that companies may also be able to monetize these channels. According to the survey, more than half of Facebook users (56%) say they have clicked through to a retailer’s website because of a Facebook post, while over two-thirds of Twitter users (67%) say a post has spurred them to click through to a website. Additionally, the appetite for buying directly through social networks appears strong: one-third of shoppers say they would be likely to make a purchase directly from Facebook (35%) or Twitter (32%).

Given the popularity of devices like iPhones and Droids, many shoppers are using smartphones to easily engage in social media on a regular basis. According to the survey, 42 percent of Twitter users access the site on their mobile phone at least once a day, while the same is true for 34 percent of Facebook users. In addition, about one-third (32%) of people view YouTube clips daily from their smartphones.

“Instead of waiting to get back on their desktop computer to watch videos or interact online, Americans are easily accessing social networks when they have even a few moments of down time, whether they’re scanning Facebook news feeds while picking up their kids from school or tweeting about their shopping experience while browsing the mall,” said Fiona Swerdlow, Head of Research at Shop.org. “The popularity of mobile devices will only boost the power of social commerce, which presents an incredible opportunity for retailers.”

Shoppers are also using mobile devices for research and information while shopping in stores. According to the survey, nearly half of consumers (47%) have accessed customer reviews in store using their mobile device with men (55%) more likely to access these reviews in store than women (39%).

-Group-Buying Sites, Location-Based Apps Present Opportunities-

Though still in their infancy, group-buying sites like Groupon, LivingSocial and Gilt City have already made their mark on many online shoppers. According to the survey, eight in 10 (82%) online consumers are aware of group-buying sites, though only 19 percent of survey respondents have actually made a purchase through one of the sites. Those who do leverage group-buying sites appear to be enthusiasts, as the majority of consumers (57%) have spent over $100 through these sites to date. While some traditional retailers have experimented with group-buying offers, the majority of shoppers say they have purchased non-traditional retail items like food and drinks (18%), entertainment (16%), and personal care items (12%) through these sites.

“Many shoppers are aware of group-buying sites like Groupon and LivingSocial, but haven’t yet been compelled to make their first purchase,” said Peter Leech, founder, Social Shopping Labs. “As these sites gain momentum and spread to more cities around the country, retailers have an opportunity to experiment not only with established sites but also group-buy promotions on their own Facebook pages and websites.”

The report also evaluated awareness and usage of location-based applications like Foursquare, Yelp and Gowalla. On the basis of sheer awareness among consumers, these platforms are still in the early growth stage among consumers: Foursquare has the highest awareness (16%), followed by Yelp (10%) and Gowalla (6%).

Shop.org members can download a free copy. Non-members may purchase the report for $995. Learn more.

About the survey

The 2011 “Social Commerce Study” provides a unique look into the behaviors and attitudes of consumers regarding social media. The study covers consumer shopping activity and engagement via Facebook, Twitter, customer reviews on websites, group-buying sites and location-based social platforms. Over 1700 consumers participated in the survey which was conducted in April 2011 by comScore, Inc. The survey participants were selected to ensure that results were representative of the demographics of the U.S. online adult consumer. Results were weighted to accurately reflect U.S. demographics.

comScore, Inc.  (NASDAQ: SCOR) is a global leader in measuring the digital world and preferred source of digital business analytics. www.comscore.com/companyinfo

Social Shopping Labs provides ecommerce and social commerce consulting services, assisting retailers with strategy, initiative planning and software solution selection. The company is based out of Kirkland, Washington.  www.socialshoppinglabs.com

Shop.org, a division of the National Retail Federation, is the world’s leading membership community for digital retail. Founded in 1996, Shop.org’s 600 members include the 10 largest retailers in the U.S. and more than 60 percent of the Internet Retailer Top 100 E-Retailers. It’s where the best retail minds come together to gain the insight, knowledge and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Shop.org programs and activities include benchmarking research, events and networking communities.

Editor’s note: Amy Gahran writes about mobile tech for CNN.com. She is a San Francisco Bay Area writer and media consultant whose blog, Contentious.com, explores how people communicate in the online age.

(CNN) — According to a new report from the Pew Internet and American Life Project, 35% of U.S. adults own a smartphone.

Since 83% of U.S. adults own a cell phone of any kind, simpler “feature phones” remain the most popular type of mobile device, used by about half of U.S. adults.

Still, smartphones are gaining ground in the U.S. market as wireless providers push them over cheaper, simpler “feature” phones.

Pew’s estimate of smartphone ownership is similar to that of comScore, which tracks this statistic monthly. On July 5, comScore reported that about 33% of Americans 13 and older own smartphones. That’s up from 27% at the end of 2010.

Given the high cost of most smartphones, it’s not surprising that a market sample that includes teens would show a slightly lower percentage of smartphone ownership.

How does Pew know who has a smartphone? In May 2011, Pew surveyed nearly 2,300 U.S. adults, including 755 phone interviews.

One-third of cell owners (33%) described their phone as a smartphone. But a greater number (39%) specifically indicated that their phone has a smartphone operating system (such as Apple iOS, Android, BlackBerry, Windows or Palm WebOS).

That’s interesting: Around 6% of cell owners own what are technically smartphones but don’t consider them to be smartphones.

It’s possible that BlackBerry users account for much of this disparity — many BlackBerry devices have notoriously limited Web browsers, and quality Web browsing is widely held to be a central part of the smartphone experience.

How many smartphones are currently in use is one way to measure smartphone market penetration.

The Nielsen Company took a different approach: On June 30, Nielsen announced that smartphones now make up the majority of new U.S. cell phone purchases: “55% of those who purchased a new handset in the past three months reported buying a smartphone instead of a feature phone — up from 34% just a year ago.”

This sounds compelling, but I suspect Nielsen’s claim probably overstates the market reality.

If you’re using statistics, it’s important to understand how the sample group upon which they’re based was selected. I asked Nielsen how they found people to survey to produce that statistic.

Nielsen representative Lerdo de Tejada explained: “We survey around 300,000 mobile consumers in the U.S. each year, which works out to about 25,000 each month. These surveys are mostly conducted online with one exception: We survey Spanish-speaking Hispanics via telephone.”

Since Nielsen conducts the vast majority of its surveys via the Web, I’m skeptical about their claim that most new U.S. mobile-phone purchases are smartphones.

Feature phones are especially popular in low-income communities and among seniors — demographics that also tend to be less likely to have the time, equipment, experience and inclination to take a Web-based survey.

So a mostly Web-based survey might well miss a significant portion of feature phone users, and thus understate their role in the mobile phone market.

I asked Nielsen for further clarification, but they simply restated their earlier information.

Beyond market penetration, the Pew report listed some interesting points about how U.S. adults are adopting and using smartphones.

Who’s getting smartphones? Not surprisingly, people who are affluent and well-educated are most likely to own one.

People younger than 45 also are especially likely to own smartphones. But people ages 25 to 34 are actually more likely (58%) than those who are 18 to 24 (49%).

African-Americans and Latinos (44% of each) are leading U.S. smartphone ownership; only 30% of whites own a smartphone. (Earlier, I reported that Hispanics lead the U.S. embrace of mobile technology.)

According to Pew, 25% of smartphone users, about 9% of U.S. adults, currently do most of their Web browsing on their smartphone. “Roughly one third of these ‘cell mostly’ Internet users lack a high-speed home broadband connection.” These users also tend to be young, non-white and lower-income.

Only 21% of rural Americans own smartphones, compared with 38% each for urban and suburban Americans. This may reflect the spotty availability of wireless broadband in many rural areas — an important aspect of the U.S. mobile digital divide.

Which smartphone platform is most popular? According to Pew, Android has a substantial lead, at 35% of U.S. smartphones in use. BlackBerry and iPhone each garnered 24%.

The opinions expressed in this post are solely those of Amy Gahran.

Coffee, dispensed beverage consumers are high-frequency buyers; represent 68% more visits

HOUSTON — Getting a cup of coffee or another dispensed beverage is the single-minded mission of many high-frequency convenience store visitors, and often they will grab a donut or something else to go with it, according to c-store research by The NPD Group. NPD’s Convenience Store Monitor, which tracks the consumer purchasing behavior of more than 51,000 U.S. c-store shoppers, finds that 86% of dispensed coffee purchases are planned and 7% are purchased on a deal.

Other dispensed beverages are also purpose-driven purchases with only 14% bought on impulse and 13% on a deal.

Consumers of coffee and other dispensed beverages are high-frequency buyers who represent 68% more visits than the average convenience store customer.

Coffee and other dispensed beverages represent 31% of unit purchases made in a c-store, and of the dispensed beverage consumers, 33% are looking for coffee, 11% cappuccino or latte and 3% hot or iced tea. Typically, with the dispensed beverage incremental purchases are made amounting to an average visit of $6.83. And 45% of consumers who purchase their coffee between 6:00 a.m. and 10:00 a.m. tend to also purchase doughnuts, gum, sweet rolls, sandwiches, breakfast sandwiches, snack cakes and cookies, said NPD.

Dispensed beverage buyers are different than average c-store buyers, who tend to be blue-collar males, 18-to-49 years-old, according to the Convenience Store Monitor. Dispensed beverage buyers tend to be female, ages 35 to 64, white collar, Hispanic and from larger households. Coffee buyers tend to be male, ages 45 to 65, a mix of white and blue collar, strong military connection, smaller households and higher income.

“The fact that the buyers of coffee and other dispensed beverages are defined differently than the typical convenience store visitor presents an incremental opportunity for c-stores,” said David Portalatin, executive director of industry analysis at NPD. “If a convenience store can deliver on what dispensed beverage buyers are looking for in terms of product quality, a rewards program and a clean and bright store, it can attract a loyal new customer base.”

He added, “The fact that coffee and other dispensed beverages are purpose-driven purchases is a ready-made niche for any convenience store ready and willing to compete with QSRs and other retail outlets offering coffee and beverages. If a convenience store is looking for a way in which to distinguish itself from its gasoline or other offering, dispensed beverages appear to be among the possible answers.”

The NPD Group is a provider of consumer and retail information for a variety of industries. It helps clients to identify new business opportunities and guide product development, marketing, sales, merchandising and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless.

TORONTO – Most companies view loyalty programs as a way to keep current customers coming back again and again. But a new study discovered that reward cards might not always work, Marketing Daily reports.

Ryerson University professor Saeed Zolfaghari, who directs the school’s industrial engineering program, found that loyalty programs have little research to back up claims of keeping customers happy and shopping. The study used a mathematical model that calculated the effectiveness of the initiative.

The results go against conventional wisdom when it comes to loyalty programs: that companies don’t need to spend on these programs to keep loyal customers. “Loyalty programs entice people to become, and remain, customers,” said Zolfaghari. “Our model demonstrates that if average customer satisfaction increases over time, there is less incentive for a company to offer a loyalty program. Essentially, your customers are already happy with you.”

Zolfaghari and his partner created a model that maximizes revenue and included a loyalty program. “In our model, we also found that as the number of customers who intended to make a purchase in the second period increased, a company had to increase their price in the first period to offset the discount offered on subsequent purchases. To make up for increased reward costs in the future, you need to increase your prices in the present,” said Zolfaghari.

“A Stochastic Model on the Profitability of Loyalty Programs” appeared in the online April edition of Computers & Industrial Engineering.

Click here for full NACS News Story

June 21 – Bloomington, MN

Exclusive Cenex Event – You’re invited to attend an exclusive event for Cenex branded marketers. The Cenex Convenience Store 2011 Buyers Fair: Driving Better Business provides an opportunity for your company to meet and interact with industry suppliers while discovering new products and services. Best of all, exhibiting vendors are offering discounts exclusive to Cenex operators that attend the show.

Click Here for more info.

Eliot, ME – May 26th, 2011 - Abierto Networks announced today that its Digital Marketing Platform was once again selected as one of the top 3 new products exhibited at this year’s NACStech show in Las Vegas. Attendees chose from more than 100 exhibiting companies, with the winning resluts revealed today by NACS.

Rick Sales, President of Abierto Netowrks, said, “That the NACStech retailer attendees again picked our Digital Marketing Platform as “Most Exciting New Product” is contuined validation of our strategy to deliver real value through the creative application of technology to meet the evolving needs of the Convenience Store and Fuel Retailing Industry. On behalf of all of us at Abierto Networks, thank you for your votes!”.

Abierto’s Digital Marketing Platform enables retailers to target consumers with eye-catching Digital Advertising and Mobile Phone Coupons. Convenience Store chains can generate impulse buys and boost brand awareness with high-impact promotional messages at the point of purchase. Retailers can automatically change in-store advertising by time of day and day of the week, as well as send Mobile Coupons to increase in-store traffic (5-10 times higher redemptions than paper coupons). Electronically redeemable at the POS, Abierto’s Mobile Coupons reduce fraud and deliver targeted, measurable promotions directly to consumers’ cell phones.

About Abierto Networks

Abierto Networks is a value added solutions provider and integrator of Digital Technologies, specializing in High-Speed Payment and Digital Marketing solutions for the Convenience Store and Retail Petroleum Industry. Learn more about Abierto Networks at www.ab-net.us

“This is an exiting time for all of us at Abierto,” said Rick Sales, president of Abierto Networks. “The Development Award investment from the Maine Technology Institute (MTI) allows us to accelerate our plans to develop and commercialize a cutting edge, advanced marketing technology solution for the Convenience Store Industry.”

The Digital Marketing Platform (DMP) is the result of years of technology and market research geared at developing an integrated technology solution that allows retailers to increase in-store revenues and profits by targeting high impact messages and promotions directly to their customers. With the technology integration available in DMP, a retailer can (for example) advertise breakfast promotions on Digital Signage displays at their stores during breakfast time while sending “intelligent” mobile coupons to the cell phones of breakfast customers, and redeeming these coupons on their POS system. The same retailer can use DMP to automatically and seamlessly change messaging and promotional offers for lunch, dinner, by day of the week, or from week to week to suit their marketing and promotional plans. With DMP, retailers can deliver the right promotion to the right consumer at the right time, increasing effectiveness and eliminating the overhead and database management needs of traditional loyalty systems.

Rick Sales added, “We have an ambitious plan to bring this product to market in a big way, grow sales revenue and hire, in Maine, marketing, engineering, technical support and administrative employees. As we expand DMP, we look forward to creating new jobs with competitive wages and employee benefits as well as offering an environment for professional development and advancement.

About Abierto Networks
Abierto Networks is a value added solutions provider and integrator of Digital Technologies, specializing in High Speed Payment and Digital Marketing solutions for the Convenience Store and Retail Petroleum Industry. Learn more about Abierto Networks at www.ab-net.us

About MTI
MTI is a publicly financed, private nonprofit organization created by the Legislature in 1999 to stimulate research and development activity leading to the commercialization of new products, processes and services in the state’s seven targeted technology sectors. MTI award programs are designed to enhance the competitive position of those sectors and increase the likelihood that one or more of the sectors will support clusters of industrial activity and create quality jobs across Maine. More about MTI at: www.mainetechnology.org.

MTI’s Development Awards are conditional loans to companies and technology transfer projects that advance Maine’s economy by creating new products, services and process improvements that help companies remain competitive. Awards of up to $500,000 are offered three times a year on a competitive basis to support early activities for product development, commercialization, technology transfer and business planning and development. Each award requires a minimum 1:1 matching investment consisting of actual cash, salaries, staff time or equipment and in-kind contributions directly attributable to the proposed project. The application deadline for the next round of awards is July 14, 2011. MTI encourages technology start-ups, existing businesses and institutions to apply and offers support to interested companies on the application process.