Mobile Discounts: A Matter of Distance and Time

Picture this: You are sitting at home watching Netflix when you suddenly receive a notification on your phone. You look at your phone and see a discount offer at your favorite store, Target, just around the corner. Of course, you have to go use the discount. It’s Target! And it’s right next to your house

The relationship between technology and consumer behavior has led to the creation of an amazing opportunity for businesses: instant discounts and incentives provided through smartphones using geo-based technology. It's the fusion of convenience and innovation at its finest, reshaping the way retailers connect with their customers.

Retail stores like H&M are utilizing the power of GPS and wireless triangulation to identify when a potential customer is in close proximity to their store. Once they've tracked their prospect, they send them a personalized promotional offer, which of course sparks the consumer’s interest. I would be intrigued too if I received a “50% Off All Jeans” discount offer for H&M on my phone. Wouldn’t you?

Here's the interesting part about all of this. It's not just about how close you are, it's also about when and what you're offered.

A study took a deep dive into the world of mobile promotions in China to decode the interesting relationship between time, distance, and consumer behavior. The study involved sending recipients offers for discounted IMAX movie tickets via text message. These recipients were divided into two groups: those near the theater and those further away. Then, they experimented with time, offering these discounts for the same day, the next day, and two days later.

Results showed that for those near the theater, same-day promotions were notorious. For the recipients further away, a one-day delay was their cup of tea. The reasoning behind this is because humans can be inpatient. We want close and we want it now. However, some individuals are patient. They prefer more time to coordinate, especially if where they are going is a bit far.

Businesses have begun incorporating geo-based technology to instant discounts and incentives to potential customers via text message. Everyone is on their phone nowadays. It’s an obsession for most people actually. So I think these discounts popping up on everyone’s phones is game-changing. It’s a great way to attract business from those near and far. As more and more businesses continue to adapt to the technology world, knowing precisely where and when to send these offers will be their secret weapon. Hopefully, you find yourself in the perfect spot at the perfect time to snag the finest bargain. Keep your phone handy, you might have an offer from your favorite store around the corner.