Quiznos, a franchised, quick-service restaurant, implemented a location-based mobile targeting campaign that targeted tech-savvy and busy consumers of Portland, Oregon. It made use of Sense Networks’ platform, which analyzed the location trails of mobile users over detailed time periods and built anonymous profiles based on the behavioral at- tributes of their shopping habits.
With the application of predictive analytics on the user profiles, Quiznos employed location-based behavioral targeting to narrow the characteristics of users who were most likely to eat at a quick-service restaurant. Its advertising campaign ran for 2 months—November and December 2012—and targeted only potential customers who had been to quick-service restaurants over the past 30 days, within a 3-mile radius of Quiznos, and between the ages of 18 and 34. It used relevant mobile advertisements of local coupons based on the customer’s location. The campaign resulted in over 3.7 million new customers and a 20% increase in coupon redemptions within the Portland area.
1. How can location-based analytics help retailers in targeting customers?
2. Research similar applications of location-based analytics in the retail domain. Provide at least 3 examples and explain how they are used. What information from these apps do you think is important to the businesses that have them?
Location-based analytics offer retailers valuable insights and tools for effective customer targeting by:
Many retailers have their mobile apps that use location data to enhance the shopping experience. For example, Walmart’s app provides in-store maps, item location, and real-time promotions based on the shopper’s location within the store. Businesses gain insights into shopping patterns and product preferences. b. Beacon Technology: Retailers like Macy’s and Target use Bluetooth beacons to send location-specific discounts and alerts to customers’ smartphones when they are near or inside the store. Beacon data helps retailers track customer movement and optimize store layouts. c. Google Maps Advertising: Retailers can advertise on Google Maps, targeting users based on their location and search history. For instance, a coffee shop can display ads to users searching for “coffee” when they are nearby. This allows businesses to reach potential customers at the right moment.
Overall, location-based analytics empower retailers to make data-driven decisions, enhance customer experiences, and improve the effectiveness of marketing efforts.