Do You Like Math?

I want to show you how easy it is to make your money back using Spike|Mobile to promote your business with a mobile coupon.

It’s all percentages. Mobile coupons have redemption rates between 10-20% on average, paper based coupons are somewhere in the 0.2-2% range.

Let’s say that you chose to sign up with Spike|Mobile for a year, so you’d be paying $49/month to reach 200 people via SMS. You start off by promoting your SMS Club everywhere you can. In store, print ads, email etc. pretty soon you have a list of 100 people.

Even with 100 people, at $49 it’s going to cost you 50¢/person to reach them.

Let’s assume that you’re only going to get 10% of 100 people (10 people) to come in. If you can make $5 off of those 10 people then you’ve paid for the service you used to get them in.

This is easier than you’d think! Let’s say you’re in a restaurant situation. Most people come with other people to the restaurant. So while you may be offering a discount to the person or people with a cell phone, the additional bodies will more than make up for the $5 you need to pay for the Spike|Mobile service.

The $5 cost shrinks even more when you grow your list to 200 people plus. Let’s say you’ve really been promoting your SMS Club and you’ve grown your list to 500 people. According to the pricing chart you’d pay $49+$59 for 300 additional messages, about $110 total.

Because you have a bigger list, you might even see a higher percentage come in this time. What if 15% of people come in? You can advertise a sale that’s already going on, and give an additional 10% off to SMS Club Members. 15% of 500 is 75 people. How much more revenue could your store make with an additional 75 people dropping in for your weekend sale? The cost of reaching those 75 people was $1.46 – can you make $2 off of each of your customers?

A bit of simple math can show not only how affordable our service is, but how easy it is to make back several times your investment. What other form of marketing costs $2 to get the customer in your door?

The work comes in the form of growing your SMS list. Promotion will take some time, but if you nurture the seed it will sprout and reap great benefits. Try stapling a business card to their receipt and having in store signage to let them know about your SMS Club.  If you’re enthusiastic, you’ll be surprised how fast your SMS Club grows. Of course, we’re always here to help too!

Greg Lehman