A global survey conducted by Microsoft found that a massive 99% of consumers will share their personal information for some type of reward, but wanted brands to ask for permission first! The hierarchy of these incentives were as follows:
- Cash rewards – 99.6%
- Discounts – 89.3%
- Loyalty points – 65.2%
With the rising popularity in wearable devices, consumers are also more willing to share their location data provided one of the above incentives are met. This provides a new opportunity for businesses to promote their products and services in a very unique and personalized way.
What is Geotriggered Push Notifications?
This is a practice where an advertiser sends a push notification based on the location of a device. These types of notifications are usually triggered when a device enters a “geofence”.
A geofence is a virtual fence placed around real world objects such as building or points of interest. This fence can range in size, either around a specific building or cover an entire city. When a device enters this fence, it will receive a notification from the advertiser whose app this device has installed.
Benefits of Geotriggered Push Notifications
- More foot traffic: Geomarketing provides the opportunity for brick-and-mortar stores to compete with e-commerce by bridging the gap between physical and online inventory. When done right (aka StarBucks), this will drive more foot traffic through the door.
- Precisely target your app users: For consumers, more locally targeted campaigns can improve the user’s experience by providing them with relevant and timely information about your product or service thus reducing the spammy experience usually accompanied with these types of campaigns. For marketers, this might mean higher engagement rates as consumers will be more willing to engage and discover the products and services around them.
- Rich customer profiles
By capturing the geolocation data of consumers this will provide deeper insights in terms of where consumers are in relation to your product or service. For example, if you have multiple stores across the country you are then able to run different promotional campaigns at each store and only target those consumers who are nearby or frequently visit that location.
Starbucks Case Study
Starbucks has put in a significant amount of effort into their app marketing strategy which appears to be paying off. About 21% of Starbucks transactions are now completed on the app, with an estimated 11 million people having downloaded the app globally.
Starbucks are a great example of how to use geolocation push notifications. When a customer enters a stores geofence (maybe 200 meters wide) they are sent a notification with the following information:
- A store is close by with directions to the store
- A discount is available on the consumer’s favourite coffee (highly personalised)
- Triggered during specific times of day when a consumer is most likely to purchase a coffee (commute during to work)
And to really make things convenient, Starbucks have launched a feature called “Mobile Order & Pay” that lets a customer place an order while in proximity of the store before stopping buy, just brilliant!
Geotriggered push notifications can have a swift impact on sales, in particular converting those customers who sit on the fence. When it comes to brands who are equal in terms of price, quality and brand appeal, leveraging geodata and delivering a highly personalised experiences will be the deciding factor for these types of customers.
There are a number of platforms that now support geofencing via push marketing. To learn more about these head over to my App Marketing Stack.