With 61 percent of loyal customersgoing out of their way to buy from a specific company, and 60 percent of loyal customers making more frequent purchases, it’s no surprise that brands are looking for new ways to increase customer loyalty and retention. Creating high levels of trust and a personalized, more seamless experience is critical in achieving this.
These days, standard loyalty programs alone are not enough to meet every customer’s expectations and needs. Brands must also create unique and personalized experiences and offers to keep users coming back for more. After all, consumers who believe companies are doing very well with offering personalized experiences shop three times more frequently. However, creating this type of experience is easier said than done. This is why many brands are considering using location data to help inform and execute their strategies.Here’s how:
Measure Customers’ Loyalty Levels
Location intelligence provides the capability to geofence and monitor competitors’ locations to get a relative sense of consumer foot traffic patterns and loyalty levels. Armed with these insights, brands can see what percentage of their customers also visit competitors’ stores or restaurants.
Location intelligence gives brands an understanding of overall patterns of movement, shopping habits and frequency of visits. Having this understanding allows you to create personalized experiences, offers and promotions that tailor to individual customers’ needs and interests. Personalization can then lead to higher loyalty levels.
Win Customers Over From Other Brands
Location technology enables you to target devices that have been to particular stores or restaurants. Last year for example, Burger King launched“The Whopper Detour” campaign to win customers over from McDonalds. By geofencing over 14,000 McDonald’s locations, Burger King targeted people who were within those geofences and sent them a coupon for a 1-cent Whopper if they ordered through the Burger King app. In addition to a great deal of social media and press coverage, Burger King reported they had 1.5m more app downloads and the highest store traffic in four years as a result of the campaign.
Burger King’s campaign didn't just have a big impact on sales during the campaign, sales through their mobile app doubled after the promotion ended. The campaign was successful in bringing new customers who then became loyal post campaign,“Whopper Detour put our mobile app on the map, made people engage with it, and now they continue to use it” they said. This is just one example of how a campaign can be executed using geofencing to gain loyal customers.
Measurement & Attribution
Providing unique customer offers and experiences is only half the battle. Measuring the impact of those campaigns is equally important. Brands need to quantify if those campaignsactually influence real-world actions. Verifone Mediais another brand that integrated location data into an advertising campaign at scale. Using Skyhook’s location technology, Verifone was able to identify consumers who had been exposed to advertising campaigns by matching campaign timing with smartphones observed at gas pumps during those same time periods, all in order to measure the subsequent behavioral response through foot traffic. In other words, Verifone was able to demonstrate whether or not the offer had the intended effect of causing real-world actions. This measurement capability allows brands to understand the true ROI of their marketing and advertising campaigns, and justify the ad spend behind it.
Bringing It All Together
Leveraging location intelligence, brands can improve their customer loyalty and retention and take their loyalty programs to the next level by providing personalized and unique experiences. These tactics then help win them over from competitors. Location can then measure the effects of these campaigns to ensure that the efforts are paying off.