LumiAds would like to bring you a system of advertising that allows you to pay only after you have seen how effective your advertising campaign has been.
We use a combination of LED screens, posters and direct mailing to inform local customers about your promotions. Customers text in and we SMS them the discount coupon. You are charged only based on the number of coupons sent.
Since the customer has put in active effort to collect the coupon, more than half the coupons requested will result in a sale. In addition, we only charge you per coupon sent so it means that you pay nothing for all repeat uses of the same coupon.
The performance of LumiAds as an advertising tool is measurable. You can compare how your advertising performed and constantly optimise so every penny you spend goes towards attracting the right kind of customers.
In particular, we emphasize periodic discounts in all our promotional material so that we attract a self-selecting group of customers that have gone to the active effort of texting in and are also interested in purchasing from your business regularly.
Three big reasons to use LumiAds:
- Periodic discount coupons encourages existing customers to come back more often, at the same time rewarding them for their loyalty. You can even use the coupons to bring in customers during slack periods or special events.
- Your best spokespeople are your happy customers. By using coupons that are designed to share with friends and incentives to forward coupons, we make it easy introduce new customers to your business.
- Giving regular discounts makes price sensitive customers less likely to switch to competitors' products.
Some frequently asked questions:
(To learn more please click on any of the questions below)
Why use discounts to promote my business?
Discount coupons allow you to track how many people have seen your advertising. They can be cheaper and more effective than conventional advertising as you focus only on sales prospects by asking people to take active effort to collect the coupon.
Conventionally discounts were used for preferential pricing. The LumiAds service targets your existing customers. By delivering coupons we reward the existing customer for loyalty to your store. By designing coupons so they are priced to share, existing customers are likely to bring in their friends to take advantage of the discount. More people try your business and some are likely to come back.
We can also help you instate an active referral program. For example, existing customers can be given unique discount codes that they can send to their friends. When the required quota of friends text in with the unique code, the existing customer can be given a slightly larger discount.
As a bar owner or restaurateur, weeknights are likely to be slacker for you than weekends. Since you have to pay your staff anyway, why not use discounts can bring in customers on weeknights. Additionally your customers can enjoy the benefit of a romantic date or a quiet drink without having to queue on a weekend.
So knowing how many people have responded to your promotions allows you to measure yourself against last months. It gives you a better indication of how many people will come in during slack periods and what the sales will be this month. So why not reduce the unpredictability and build discounts coupons into your strategy?
How effective is SMS marketing?
By using tested direct marketing methods and constant optimisation of our advertising, the LumiAds service can bring you more than 3x as many customers that buy compared to any other advertising channel.
TV advertising campaigns combined with SMS marketing run by Unilever and Dominos pizza in the USA have shown text in rates ~1% and coupon redemption rates between 50% and 70%. This gives an overall conversion rate from view to sale of 0.5% to 0.7% which is nearly double that of the nearest competing solution. Conversion rates from posters to the customer texting in are greater than 1.5%. Combined with the added benefit of forwarded texts this figure is raised to 3.41%. When geographically targeted as with LumiAds, the conversion rate increases to greater than 9.5%.
With conventional advertising, the conversion from a billboard to sale is approximately 0.006%, Google pay per click is 1.5% to 2% for click through and 7 clicks or so per sale giving a conversion rate of 0.3%.
As can be seen SMS marketing offers a superior conversion rate. After all, what is simpler than to take a mobile phone out and immediately request a coupon when you see an offer you like?
How can LumiAds be cheaper than conventional advertising when I offer a promotion and then pay per coupon requested?
Discount coupons can be used as a promotional tool that has a lower cost compared to conventional advertising if priced appropriately.
We can help you design discounts so that the cost of advertising is essentially "FREE" and you don't pay twice.
For discount coupons to work effectively, it must be priced to increase the average spend per transaction while covering incremental costs of selling another unit.
For example, if the variable cost of a product is £1.50, the average number of units sold is 2 per transaction giving a revenue of £5.00 and fixed costs amount to £1.00 per transaction, the net profit is £1.00.
If on the other hand, a discount coupon for 10% discount for orders greater than £7.50 is given, the average revenue goes to £9.00, variable costs will be £6.00, fixed costs will remain at £1.00 giving a net profit of £2.00.
If the cost of advertising is less than £1 per £10 spent, the increased profit has completely covered the cost of advertising. As mentioned previously, it is likely that the existing customer will bring in friends to take advantage of the offer.
It also means that the customer may use the coupon more than once, and your costs of advertising remain fixed as we only charge you per coupon given out.
Why should I advertise with LumiAds when I can run my own SMS promotion system?
We display multiple promotions per poster or LED screen so our costs are distributed over multiple advertisers. This means that we can operate at a lower cost and pass these savings on to you. However, to maximise customer response we limit the number of promotions on each poster or email to six.
With LumiAds you get the benefits of running your own SMS marketing service at a fraction of the cost of doing it yourself.
Contact Mr Nallan Rangesh at spsrangesh@gmail.com or your nearest LumiAds franchise for any further enquiries or to advertise.
