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A comparison of the effectiveness of e-mail coupons and mobile text message coupons for digital products

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Abstract

An increasing number of companies are focusing on e-mail and mobile marketing to promote offers. The aim of this study is to analyze a coupon campaign for a 67 % price discount on downloadable personal computer (PC) software. The campaign was carried out via e-mail and mobile text messages. Using an opt-in database, we gathered data from more than 37,000 participants and compared the response and conversion rates for both e-mail and mobile text messaging. The results indicated that the response rate for e-mail coupons is higher than the response rate for mobile text message coupons, but text messages yield a better conversion rate and a higher number of total purchases. After calculating the price elasticities for both communication channels, we found that the promotional price elasticity is higher for mobile text message coupons than for e-mail coupons.

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Acknowledgments

The authors gratefully acknowledge support for the field experiment from Clemens Schleiwies.

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Authors and Affiliations

  1. Institute of Electronic Commerce and Digital Markets, Ludwig-Maximilians-Universität München, Geschwister-Scholl-Platz 1, 80539, Munich, Germany

    Philipp Reichhart, Christian Pescher & Martin Spann

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  1. Philipp Reichhart
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  2. Christian Pescher
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Correspondence to Martin Spann.

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Responsible Editor: Christopher Patrick Holland

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Reichhart, P., Pescher, C. & Spann, M. A comparison of the effectiveness of e-mail coupons and mobile text message coupons for digital products. Electron Markets 23, 217–225 (2013). https://doi.org/10.1007/s12525-013-0129-3

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  • DOI: https://doi.org/10.1007/s12525-013-0129-3

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