According to a study conducted by Accenture, 60% of US consumers want a more personalized shopping experience with real-time promotions. Retailers are now looking to leverage mobile devices in tandem with location-based marketing technologies to create a more personalized shopper journey. Often times, this is easier said than done, and retailers aren’t always sure what route to take and what technology to leverage.
Below are a few examples of retailers who have had success leveraging location-based marketing to create a more personalized path-to-purchase and increase their return on investment.
Charlotte Russe increases sales by 42 percent during a single day by promoting “Appy Hours”
Charlotte Russe has recently implemented a play on “Happy Hour” through an even called “Appy Hour,” which leverages the brand’s mobile application. During these “Appy Hours” Charlotte Russe sends discounts to shoppers who use the mobile app. On one particular day when the “Appy Hour” was taking place, sales at Charlotte Russe were 42 percent higher on average than they were during the previous 20 day period. It was also noted that 85 percent of consumers who downloaded the app chose to allow push notifications. Comparatively, the average push notification opt-in rate for the retail industry is at about 40-50 percent. This promotional tactic allows Charlotte Russe to engage with their most loyal and active users.
Flip Flop Shops sees a 16.8% redemption rate on new digital coupon by offering free Wi-Fi
Flip Flop Shops found a unique way to drive shoppers into stores by leveraging in-store Wi-Fi. The store, located inside a 250 store mall, placed a sign in the window that said they offered free Wi-Fi to guests. Upon entering the store and logging into the store’s Wi-Fi, the guests received exclusive coupons. While this specific campaign was taking place, the store saw approximately 3.8 new customers join their Wi-Fi network each day. Flip Flop shops gained about 900 new customers to their mailing list during this 8-month period, and eventually added in-store signage to continue promoting the free Wi-Fi and exclusive offers.
Macy’s drives shoppers to specific departments by offering exclusive department-level deals
Macy’s has recently started using a shopper engagement app to connect with consumers. The shopping app helps Macy’s offer customers who are on their shopper engagement platform receive personalized department-level deals, discounts and rewards. Consumers can browse the app from home, and then arrive in store and go to specific departments to receive exclusive deals. The shopper engagement app has helped drive more shoppers into Macy’s and encourage shoppers who have the app downloaded to visit departments that they may not normally visit.
When location-based marketing tactics are leveraged properly, they can support retailers in creating a more personalized customer experience. Which example would you want to test and apply at your store?
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