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Top 3 tips to improve location based campaigns
According to xAd, Geofencing has become the most popular location-targeting technique and is used in 55% of location-based advertising campaigns. There are still a lot of misconceptions about the use of Geofencing however. Here's how geofencing can assist your mobile campaign.
Rip Gerber, Locaid CEO: At the end of last year we ran a geofence-based SMS pilot in a shopping mall in Easton, OH with Alliance Data. Initial findings from the pilot revealed that participants spent an average of 24% more in a shopping trip triggered by a text message than the average cardholder. Credit sales were up 2.5% over projected sales for the pilot period and up 4.9% over projected sales for Black Friday alone. However, as with all marketing campaigns the key is to integrate your activity and to make it relevant to your customer.
Kristina: For location based campaigns, how important is technology like geofencing? And, related, is it important for brands to include time sensitivity - for example, a 24 hour expiration - for mobile couponing?
Rip: Critical. Combine the use of geofences with a targeted mobile advertising strategy and you will increase engagement, footfall and ultimately, wallet share. [You] don't need an app to do it. And your customers won't be automatically notified when they cross the invisible boundary of a geofence. To link to the second part of your question around time sensitivity, a Geofence is a highly effective way to send locally-targeted, relevant content to your customers at times that most benefit your business. Run a happy-hour? You only need to look up the location of your customers and send them a promotional message once a day to drive traffic. Sales slow between 10-11am? Look up the location of all customers in the area at 9.30am and send them a coupon to redeem when they buy something in (what used to be) that slow hour. That same practice relates in part to the mobile coupons themselves. There are exceptions to the rule when you're looking at the daily deal websites but even the most successful of those have a time limit on them.
Kristina: What are your top 3 tips for improving location based campaigns?
Rip: [K]nowing the location of your message/offer/service is the #1 way to be relevant. Any mobile campaign you're running without location should be stopped immediately. After you add location, you will double your ROI at a minimum. Location not only enables greater personalization but adds a layer of verification to help prevent fraud and reduce the unnecessary admin costs of many mobile marketing campaigns. And use geofences. Geofencing provides a unique opportunity for you to target your ads at nearby consumers increasing the personalization of your customer service and adding value to your customers. Last but not least, analyze. Location gives you a new data point for analyzing customer behavior. The key is to make sure you turn that data from information into intelligence that informs your business decisions.
You can read part one of my chat with Locaid, including the importance of mobile for retailer campaigns, here.
Image via Shutterstock
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