Dazbog Coffee has launched a mobile coupon initiative to entice consumers to opt-in to the company’s SMS program.

Mobile coupons are currently being used at 17 Dazbog locations in Colorado. The coffee chain is working with mobile service provider MocaPay on this initiative.

“Restaurants that used to do the traditional Sunday print coupons are becoming much more innovative with mobile coupons that are immediately on their phones,” said Karen Moritzky, director of client relations at Mocapay, Denver.

“Consumers take their phones with them everywhere and mobile coupons give users an immediate push to come into a store,” she said.

What’s brewing
Dazbog originally began its mobile initiatives in 2010 with Mocapay.

Consumers can opt-in to Dazbog’s loyalty program by texting the keyword FREEDAZ to the short code 466622.

To encourage users to sign up for the service, consumers could redeem a $4 mobile coupon in-stores to use on their next coffee purchase.

Once consumers have opted-in to the program, they can receive their coupon by replying to the text message and showing their screen to an employee.

In order to activate their coupon, users must unlock a six-digit code that works for 30 minutes until it expires.

Here is the offer that consumers receive via SMS

Users can also redeem their coupon by downloading the Mocapay app, which is available for iPhone, Android and BlackBerry devices.

Additionally, Dazbog is using SMS to send out special promotions for drink upgrades.

Dazbog has been using the mobile coupons for approximately two months to help build its database and drive in-store traffic to its locations.

Here is what the offer looks like inside the Mocapay app

The coffee chain also lets consumers send and receive mobile gift cards by using the Mocapay app, and users can receive push notifications when new offers are added to the app.

To spread the word about Dazbog’s mobile offerings, the coffee chain is using in-store signage with mobile calls-to-action.

Mobile java
Dazbog is not the only coffee chain tapping mobile for loyalty programs.

Coffee giant Starbucks also recently began using a SMS program to build its database and encourage consumers to join its reward program (see story).

Additionally, smaller coffee chains such as Peet’s Coffee & Tea have tapped mobile payments with Google Wallet.

Mobile loyalty is a natural tie with quick serve restaurants and cafés because they are businesses that consumers visit on a regular basis, and they have strong relationships with.

For small businesses and companies looking to include mobile into their loyalty programs, mobile coupons are a safe route to go, per Ms. Moritzky.

“Mobile coupons prevent fraud because once you use them, they automatically remove themselves from the app,” Ms. Moritzky said.

“Dazbog is a very innovative business and they wanted to go into mobile to get competitive in the space,” she said.

Final Take
Lauren Johnson is editorial assistant on Mobile Commerce Daily, New York