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Still on the fence about location based services, mobile, daily deals and if they’re even worth it? You shouldn’t be. Here are some case studies that will go down in the history books, and others not so much, of some entertaining and creative mobile and location based campaigns.
When an e-mail was sent out offering a $50 gift card to the Gap for just $25, more than 440,000 people purchased it. This offer was made through Groupon – a couponing site which provides daily deals in fun and interesting ways. The Gap deal was Groupon’s first big national promotion. With such an overwhelming response, it actually stalled the servers. At one point, the site was selling 534 offers a minute. Success? Yes! The campaign generated $11 million for Groupon. Wow!
In the UK, Domino’s up’d the ante and began offering free pizzas to mayors on Foursquare. Who can say no to free ZA? They even gave away free side dishes for those who check in and spend more than $14.50. Ok, wow. All people had to do was check. Many of the locations weren’t even sit down restaurants, yet the promotion still drove foot traffic. It increased drive pick-up orders and helped eliminate costs associated with delivery.
And back in the news, Best Buy teamed up with Shopkick, an app that turns offline stores into interactive worlds, to roll out the 257 store promotion. No need to ‘check in’ or even press a button, Shopkick automatically recognizes when someone with the app on their phone walks into a store and, boom, deals are sent to them. An app for the lazy. Though it’s too early to tell if this campaign has been successful in terms of revenue/loyalty generated, it certainly has the media all excited. Why? Well it made news by taking shopper rewards to entirely new and location-specific levels, literally allowing shoppers to earn rewards simply for moving through specific areas of the store. Who’s next? Macy‘s, American Eagle and Simon Property Group have all jumped on board the bandwagon.
East Coast Aero Club
A lesser known Groupon promotion from a small east coast flight school brought sheer panic to the company, but in a good way. They put together a deal: $69 for an introductory flight lesson, 70% off the regular price. The company expected to maybe sell 200, but was told by Groupon to expect more like 500. You know what happened? They sold 2600. Wow! Needless to say for the following few weeks the flight school instructors were very busy. All this from one little email.
Want to be an honorary barista for a day? Become a Mayor of Starbucks. Simple if you are an addict. The person who checks into any individual Starbucks the most becomes the “Honorary Barista” of that Starbucks through an App called Loopt. Does that come in Venti? Who knows, but it certainly has more people checking in, whether or not they are buying. Checking in using Foursquare, however, gives you $1 off a Frappucino – now that’s more my cup of tea – or cup of yummy awesomeness. And moving on – there is even another Starbucks mobile loyalty program, their own iPhone loyalty card App, built by mFoundry. Customers collect stars in a cup on their phones every time they make a purchase and get a free drink every 15 visits. I visit the Bucks two times a day, so that would mean a free drink every week and a half. I’d do it.
InterContinental Hotels Group
The hotel chain used Gowalla (Another check-in app) to give gift cards and airline miles to loyal customers of its hotels. Piggy backing off their Hit It Big promotion which offers rewards such as retail gift cards and double air miles to guests who stay multiple nights. The campaign launched at the beginning of summer with the hopes of getting summer tourists checking in like crazy. I haven’t been able to find data on its success but know it ended June 30th.
This ain’t no Britney Spears endorsement. This is geo-location marketing at its best. Last May Pepsi launched Pepsi Loot, an iPhone App that uses geo-targeting for people to find nearby restaurants that serve Pepsi beverages, including chains like Taco Bell, Pizza Hut, Arby’s and Panda Express to individual restaurants that have Pepsi contracts. Power! Customers that check-in to restaurants that sell Pepsi products can begin to earn loyalty ‘loot’ points. These points can be used to get downloadable songs from artists such as Keane, Katherine McPhee and Jamie Cullum. Sha-la-la-la, sing it.
What about charity?! Ok, ok, Shopkick has that covered.
This is stellar, a free location based app for iPhone, iPod Touch and Android, which allows users to collect “karma points” while shopping, and then convert them into cash donations for charitable causes. Since it’s inception the app has brought in over $100,000 in donations to the American Red Cross for the victims on Haiti. This is location based cause giving (LBCG) at its best .. I just made that acronym up, but it sounds good.
I could go on and on with the many new campaigns popping up each week, but these set some good examples. Basically this is where it’s at. Marketing dollars are shifting from offline to online to mobile to back offline. It’s an eclectic mesh of integrating all forms of marketing for the most impact. Although mobile marketing is very new and under much scrutiny, it is inevitable that demand for LBA will continue to grow far beyond large retailers and into hyper-local shops.
Do you have any good examples of successful mama and papa shop location based marketing?
Renee’s knowledge in marketing and social media has helped me gain a better understanding and increased exposure for my photography company. She is incredibly talented and fun to work with!
Donna Santos, Donna Santos Photography