Home  › Social › Social Commerce
cs-gelato

Merchant Combines Groupon with SMS, Finds Sweet Success

  |  August 16, 2011   |  Comments

Gelato retailer averages 12 percent redemption rate on coupons sent via text.

Gelato Spot, a chain of five locations in Phoenix, seems to have found a deliciously simple solution to the problem of turning serial daily deal users into repeat customers - ask for their phone number.

Since February, inviting Groupon voucher redeemers to opt in to Gelato Spot's SMS marketing program has helped the small company quickly build its mobile list to 1,700. That number was primarily achieved with a few Groupon offers and by having cashiers ask for cell phone numbers whenever a customer utilizes a deal (usually $10-for-$5). The patrons are enticed to yield their phone number with the promise of $1 off their next purchase courtesy of a mobile coupon.

Eighty percent of customers have stayed on the list for at least three months, Tommy Plato, Gelato Spot owner, told ClickZ News. "Groupon customers are more tech savvy," he said, "so they are easily convinced to sign up for our SMS couponing program."

Gelato Spot and its mobile marketing service provider Cellit send between two and four SMS specials per month, and 12 percent of recipients redeem the coupon and place an order. That's around 200 customers in raw numbers.

For a single recent offer, Plato said, the redemption rate was 44 percent, equaling almost 750 customers through the door. He said the mobile pitches were getting "the highest redemption rate [we've] seen with any medium."

In addition, Plato said, "We are capturing their data to remarket to these customers and turn them into regulars… We run a deal with Groupon roughly every 90 days, and then we capture as much data as we can from the influx of traffic we get and push our Cellit text messaging loyalty program."

Here are two SMS copy examples involving Gelato Spot's offers:

Open 11AM-9PM The Pizza Spot inside Gelato Spot Old Town Scottsdale 25% off entire menu Pizza, Salads, Panini, bring your friends

New Flavors Alert! Fresh Peach Sorbet & Chocolate Peanut Butter Gelato. Both are insanely good! Here $1.00 off any size!

Interestingly, Plato suggested that he has a partnership with Groupon that gives his SMB a bigger piece of the normal sales pie. Under regular circumstances, merchants and the daily deal site agree to a 50/50 split.

"We are a merchant partner with Groupon," Plato said, "so our splits [are] better than most merchants who run a deal, and we have a deep relationship to cross-promote our businesses through other media sources besides their platform and database."

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...