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Whose territory does a new prospect belong to?

Does this sound familiar to you? We talk to companies all the time who have problems with who to allocate a new customer or prospect to when they ring the sales or franchise company or call centre. Sales territories have always been a bit of a problem to deal with, but this will no longer be a problem for people who use GeoSmart’s new BIonaMAP business intelligence SaaS (Software as a Service) application.

Old school BAU (Business As Usual) is still the way most sales and service companies work. They pin a map on the wall, draw the territory on it with a sharpie pen and write the name on the map. There are always arguments over whether a territory includes both sides of the road, where the suburb boundaries are and don’t even start about what happens when you want to modify a territory.

Queen Street

If the call centre or people taking the calls don’t have access to the map when new customers ring, there can be major time wasting and potential for problems ensuring that the right person is dealing with the client quickly and professionally in order to secure new business. There are also issues over making sure the address is correct. There are a dozen Queen Streets in Auckland and we have heard plenty of stories about people driving up and down a road in the wrong suburb looking for a client they are meant to be meeting with. Then there are vanity suburbs like the person on Remuera Road who say they are in Remuera, but they are actually in Newmarket and knowing which numbers of the street belong in which territory. It is a problem that has been around for years.

This problem goes away with BIonaMAP and there are a number of ways that we can deal with it. Some companies are simply going to use a query on the BIonaMAP home page which effectively allows you to start entering the address, with an autocompleter allowing you to select from a drop down menu to get the right one. Some companies are going to integrate this function right into their accounting software, CRM or other business database application, which means that the full correct address with Post Code and correct suburb as well as the coordinates are recorded into the right fields.

What makes this different? Database applications on their own can deal with suburbs or post codes, but typically can not deal with spatial queries, i.e. in what territory or polygon does this belong to? The answer effectively will be one of the following:

  • It belongs in Territory X.
  • It appears in Territory X and overlapping Territory Y (e.g. a sales and a service territory)
  • It doesn’t appear in any territory

If this is an issue that you have to grapple with in your business, why not contact us and ask us how BIonaMAP can help you?

BIonaMAP is available for New Zealand and Australia and has a host of location based business analytics capability. It is Software as a Service which means no software installation and it can be accessed by using a web browser. We also welcome inquiries from sales, service, franchise and other business consultants, resellers and systems integrators.

May 1, 2012 Posted by | Australia Maps, Business Analytics, Business Intelligence, Business Tools, Data Mining, Distribution, geosmart, GIS, map tools, Mapping Applications, Marketing, new zealand, new zealand maps, SaaS, Sales, sales territory, systems integrator, territory management, Uncategorized | , , , , , , , , , , , , , , , , | Leave a comment

Ageing of the workforce in freight and distribution

Baby boomers are a major part of our workforce today and play a very important part in the freight and distribution industry. I’m told that the average age of a truck driver in New Zealand today is 49. This presents positives and negatives.

The maturity and experience of these drivers makes them very valuable. They know the road, they know their vehicles and routes and get the job done. They are largely professional drivers, many of whom own their own vehicles. Many were able to do that by borrowing against their homes and the average freight company as we have discussed in previous blogs is 0-5 trucks.These operators tend to be very good at their job, but not well versed when it comes to technology. Applications to help them improve efficiencies in their work need to be very user friendly. That is something that GeoSmart puts a lot of energy to.

The flip side is that not a lot of people are rushing to become truck drivers. Many companies don’t really want them until they reach around 24-25 and have burnt out the lead foot testosterone which could be a disaster in a big half a million dollar rig. By that time, a lot of the working stock that might have gone into truck driving have chosen other career paths, or have moved to other shores such as the mines in Australia where they can earn 3 times what they can get paid in New Zealand. We can hope that they will come back to New Zealand with those savings and experience and use them to invest in their driving career back here. These people are of course extremely tech savvy and will expect to have access to applications and services such as Real Time Traffic, Route Optimisation, Car Navigation, Fleet Management and Business Intelligence.

Car navigation with real time traffic

Keeping these ageing drivers healthy and productive is a sustainability policy in itself. Providing them with tools starting with car navigation with real time traffic is a good start. It’s easy to use and whist these people may know the roads like the backs of their hands, they don’t know that there is an accident or traffic congestion that is going to stop them from getting where they are going. They also don’t necessarily know alternate routes they could be using or what the traffic conditions are there. It could be driving out of the frying pan into the fire. A device that tells them there is a 35 minute delay on their current route, but an alternate route will only have a 10 minute delay could be gold for these people. If you are looking at one of these, make sure it provides coverage for the are they are driving in and has the very latest map data as there have been many changes in New Zealand roads over the last year. GeoSmart produces new map updates every 3 months.

February 28, 2012 Posted by | AA Traffic, Auckland, Business Tools, car navigation, Distribution, driving, Freight, geosmart, new zealand, new zealand maps, Oil Price, real time traffic, route optimisation, Route2GO, territory management, tomtom, Traffic, Uncategorized | , , , , , , , , , , , , , | Leave a comment

Sustainability Generates Profit in the Transport Industry in New Zealand

This month I had the pleasure of presenting to the New Zealand Freight Summit at Auckland University to a diverse group of people from all facets of the transport industry. There were a number of common threads and one of them was sustainability. This is a word that is bandied around a lot, together with concepts like carbon emission trading and taxes, but I wonder how seriously a lot of companies are taking it.

One motivator is compliance. Government departments and many corporates today have KPI’s which require that they do business with companies who have sustainability policies and practices. We have responded to a number of tenders recently which have asked us to specify what sustainability practices we have put in place.

I have read many articles that say that companies which have sustainability practices are more profitable than those that don’t. Obviously the above is one good reason, effectively there are contracts they won’t win simply based on the policy.

There are of course other good reasons that also hit the bottom line. The most obvious one is the rising price of oil. If you use tools such as Route Optimisation and Business Intelligence, you can potentially do more work whilst driving shorter times and distance. That means reduced running costs, reduced maintenance costs, saved time which potentially means being able to do more work in the same amount of time and bottom line increase in profit. Whether your fleet is one vehicle or hundreds, there are savings to be made and they are easy to achieve.

Wellington Traffic 28 February 2012 1:15PM

I really enjoyed showing people AA Traffic by GeoSmart. Many of the delegates were not aware that we have real time traffic congestion information covering virtually all arterial roads and highways throughout New Zealand and Australia. There will be some announcements about this in the very near future. If you are a transport operator, how would you like to be able to see exactly where the congestion is in real time and on the same map, see your vehicle fleet?

Does traffic congestion cost your company by not letting your vehicles get where they want to be on time? Wouldn’t it be great if you could have a birds eye of what was going on in real time 24/7? What would that mean to your business? We can help you with that.

Utilising technologies like this can help your company to focus on reducing overheads when the economy is tight and allows you to tell the market that you have sustainability practices, not just policies. Of course in doing so, you are actually taking practical steps to reduce your company’s carbon footprint and doing something good for your country and the planet.

Want to know more about how you can use these technologies in your business? We’d love to talk with you. Contact us today.

February 28, 2012 Posted by | Auckland, Australia Maps, Business Intelligence, Business Tools, carbon footprint, Delivery, Distribution, driving, Freight, geosmart, new zealand maps, Oil Price, petrol, real time traffic, route optimisation, territory management, Traffic, university | , , , , , , , , , , , , , | Leave a comment

Route Optimisation Is Simple and Accessible

I’ve blogged about route optimisation many times recently. One recent blog talked about Fleet Management, our new BIonaMAP application and some other wonderful concepts, as ideas on how to save your business money and time and thereby increasing productivity and productivity.

I would like to break this down a little bit because there is a misconception out there that all of this technology requires spending lots of money and installing expensive equipment in your company vehicles. Let me break it down for you. There are some wonderful solutions out there, many of which are offered by our valued partners and they all have a purpose and fulfil business needs. Some business problems are complex and require complex solutions and some are simple and provide very quick return on investment.

So here is a simple problem. You have one or more vehicles which need to go out on the road and do several jobs. They may be regular runs, or they may be different each day. Let’s make it even simpler. Let’s break it down to one vehicle. You may have lots of vehicles, but let’s just look at one of them.

Here we have a merchandiser, who has to visit a number of supermarkets. One person has to visit 9 grocery stores, checking their stocks, managing the shelf placement, demonstrating new products, taking orders. As do many field sales people in New Zealand and Australia, their territory comprises of urban calls and calls out in the country and they spend a lot of their time driving.

The problem is that you can only fit so much time in a working day. You can have a pretty good idea of what order to do the jobs in, probably the order you always do them in. The other problem is that the price of petrol is going up, prices are coming down and your budget is going up. You need to get smarter.

Our Route2GO Lite application is a simple web service. There is no software to be installed, no set up fees and as Software as a Service you only pay for what you use. In this case person, who is a great sales person, spent 28 1/2 hours in the car, dead  time between calls in order to make those essential visits. Route2GO worked out how she could do the same visits but spending only 22 hours in the car. Now she can either fit in more calls in the same amount of time or spend more time with each client enhancing the relationship, doing product knowledge training with their staff and increasing the average sales she generates from those clients, which reduces the pressure on her and her sales manager to get the results the company needs.

We also cut over 400km in driving distance from this sales trip. At even $1 per km that’s a lot of money going back to the bottom line.

So what do you need in order to achieve a result like this? A PC with a web browser. An account with GeoSmart and a little time. For this run which included 9 clients and returning to base with a pile of orders, the total cost to GeoSmart would have been $6.25. No hidden surprises, that’s it. This includes the fee for geocoding (generating coordinates for calculating the route) and the optimisation from the office, to the 9 stores and back to the office. Oh and the cost of a piece of paper if you want to print off the above map and route.

It really is that simple. If you want to know more, why not contact us? We’ll even do a couple of runs for you for free, preferably ones you have already done previously so you can get a genuine comparison as to whether it will work for you. This was a dramatic example, in some cases it might only save you a little, but if we could help you visit one or two more customers in a trip without increasing your fixed overheads, every trip, hat would that add up to over a year?

We have more information about route optimisation in our blogs, so why not have a scroll through and see if you can find an example that’s relevant to your business. In an upcoming blog I will explain in simple terms what route optimisation actually is and why we can do it better than you can drawing pictures on a map. The key point of this exercise is that you can achieve dramatic results without putting in any money upfront and without having to buy any technology you don’t already have. Route2GO is available for New Zealand and Australia.

February 13, 2012 Posted by | Auckland, Australia, Australia Maps, Business Tools, Distribution, driving, Freight, geosmart, location based services, Mapping Applications, new zealand, new zealand maps, Retail, route optimisation, Route2GO, SaaS, Sales, sales territory, territory management | , , , , , , , , , , , , , , | Leave a comment

Petrol Will Keep Going Up in Cost

You don’t need to be a rocket scientist to understand that petrol and diesel could well hit the highest prices ever this year. This is likely to have a significant impact in New Zealand and Australia where we rely on other countries to provide our fuel. Irrespective of the state of our economies, we are relatively low in the rungs of priority if supplies become short worldwide. Obviously oil demand is increasing globally, irrespective of international politics and our exchange rates. The following graph shows the trend just over the last 3 months.

The implications are obvious. If you have a fleet of vehicles on the road, your running costs are going to increase and you have very little control over what you are going to pay for fuel.

Using technologies such as Fleet Management from our partners, you will have the ability to manage some costs. This includes:

  • Monitoring driver behaviour such as harsh acceleration, speeding and other activities such as engine idling time where reports can identify drivers who may benefit from education on the impact of these activities to your costs.
  • Monitoring the use of the vehicles, eg personal use or order of use.

You might look at operational improvements such as whether it is more economical for the driver to start from home, closer to their first jobs in the morning as opposed to leaving the vehicle at the depot. You might want to focus more on load management, are you sending trucks out with a load but bringing them back empty? You might want to look at whether there are other jobs in the vicinity of the vehicle that could be completed without the vehicle coming back to base and going out again.

GeoSmart has a number of tools that can help you with these considerations. For example Route Optimisation with Route2GO can help you eliminate the guesswork of what order jobs should be done in. If someone is going out and doing one or 2 stops and going back, that’s one thing, but if a vehicle is making several stops on a trip, it is unlikely that many people have the ability to work out the best order to do the jobs in.

Route optimisation takes into consideration every possible sequence of all the stops on your trip, with an underlying knowledge of turn restrictions (one way streets, no left turns), road class (speed zones, a shortest route might include many compulsory stops trying to cross busy main roads and driving slightly farther might not only speed up the trip but by not stopping and starting through the gears, will consume less fuel) and other considerations. The computer has no emotions, it just solves a technical problem and provides you with a result that will tell you the best order in which to do the work, complete with expected driving distance and time. This can produce a run or job sheet that can also give you an idea, based of your knowledge of expected time on site, as to how many jobs may be completed in one day.

Business Intelligence is a whole new story. Imagine being able to see all your clients on a map, run queries and reports based on any information you have in your database or work management application. How would you like to be able to manage run territories, understand profitable clients, see where upcoming jobs and priorities are, without having to install any software? All you need is a web browser and an internet connection. A picture speaks a thousand words and being able to visualise your business on a map can shed a light on what is going on in your business in a way that is often very difficult to get from spreadsheets and tables. GeoSmart’s new BIonaMAP Business Intelligence on a Map can help you put the pieces together and show you what your business looks like.

We can help you keep your fuel costs under control with practical web based tools that will provide you with the information you need by visualising and viewing your business operations on a map. Information is power.

These solutions support all of Australia and New Zealand so if that is where you are, why not contact us to find out how we can help?

January 19, 2012 Posted by | Australia, Business Analytics, Business Intelligence, Delivery, Distribution, Fleet Management, Freight, geosmart, new zealand, Oil Price, petrol, route optimisation, territory management, Uncategorized | , , , , , , , , , , , , , | Leave a comment

Adding Location To Loyalty Card Apps

There are obviously lots of different kinds of loyalty cards. I have somewhere between 10 and 20 cards ranging from Coffee Cards through to Airline Frequent Flyer Cards. I have so many I can’t carry them all in my wallet, which is unfortunate when I find myself in a position to use one. I do carry a Smartphone, so there are opportunities to carry apps. Many retail companies in New Zealand now have apps, mostly on iPhone and Android. They range from cafe’s and fast food companies to tourism and banks. Features include the ability to order food from a specific store, the ability to view the store on the map, make reservations and view points.

A lot of companies have had back on using Smartphone applications for loyalty programs on the basis that there are not enough people using them. At the last Social Media Club Auckland event one of the panel questions was what is the penetration of Smartphones in New Zealand. No one had an answer as the telco’s generally don’t want to share this competitive information. However in this month’s IT Brief there was a quote from Tony Baird of Vodafone saying that 66% of their mobile users now have Smartphones. That’s pretty high penetration and growing rapidly as is their data traffic which grew from 60TB in June last year to 135 TB in June this year. It would be reasonable to expect at least Telecom to be showing similar penetration.

So, in my last post I talked about a number of aspects of getting to know your customers. Given the statistics in the poll on my previous blog almost 70% of loyalty card holders do not specifically head to shop at a store where they have a loyalty card. In effect this says that the loyalty card in most cases is not attracting people to do business, or effectively be loyal to the retailer or group who invest a lot of time and money into the card systems in manufacture, distribution and all the other aspects of running a loyalty program.

What is missing? I believe that one aspect is not really understanding the customer. Let’s start simple. How do you get a loyalty card? Obviously it varies. Some cards like a coffee card are as simple as the retailer offering the card to a customer when they are in the store buying a coffee, the retailer invites them to start using a card, typically offering your 11th cup free. At the other end of the scale there are forms to fill out, which confidentially provides the company with significant information about the person. This may include:

  • Home address
  • Home and Mobile Phone numbers
  • Age
  • Household income
  • Interests
  • Family details e.g. single, married, children under or over a certain age
  • Occupation
  • Email address

In theory this enables the loyalty program to target information to the member and under strict Direct Marketing opt in guidelines, make offers to the members, which typically comes in the form of eDM’s and Direct Mail. The latter is a very expensive form of marketing as is normal advertising such as print, radio and TVC’s. For many industries and products this is tough business. How often do you buy a lawn mower, a TV or an iPhone? The marketing only works when you are open to buy. I recently purchased a new lawn mower, but it was the first one in over 10 years. If I had kept every lawn mower advertisement that arrived in my letter box trying to sell me one and looked at the creative, print and distribution costs, it might have been cheaper for them to give me a lawnmower. Of course all of this advertising is focussed on products that everyone is selling, there is very little focus on products that are unique. Everyone has a promotion on a printer, a TV, an iPhone which forces everyone to focus on price, heavy discounts and the consumer wins if they are looking for that product. Profits up the value chain are massively eroded through the competitive pricing and costs of marketing.

Data Mining and Business Intelligence are already used by some companies and very soon GeoSmart will be launching the much anticipated BIonaMAP we have discussed in many blogs in the past. This will allow companies to better understand their customers on the basis of the data provided, including the ability to view their customers and query their information in relation to the Department of Statistics mesh blocks and area units.

Canberra Income $100,000+

In this example we looked for   where the average household income in Canberra (yes we do Australia too) is equal to or greater than $100,000. If we were looking for loyalty members who had higher than average discretionary spending capability, this could be a very useful tool for target marketing. We could potentially make special offers by overlaying our loyalty card members in this SaaS (Software as a Service) application and then querying them from a combination of the information we have about them and the information the statistics department has about people in the area.

In the coming blogs I will get into more detail about what the implications are from the perspective of location, but like anything you need to start at the beginning and in many cases as I have outlined,  scatter gun marketing, throwing leaflets into letter boxes does not effectively target people who might change their behaviour in favour of your product or brand.

The key to loyalty is a relationship and this comes from engagement. You don’t engage well by putting something in someone’s letterbox. You engage by understanding who they are, what their needs are, when they are out and about and open to buy. As a retailer with a loyalty program you have huge amounts of information about your clients at your fingertips, which is untouched.

Here’s a simple example to finish this blog. Paper Plus not only supports Fly Buys, but they also have their own card called My Big Deal. They run promotions for people who use that card. Right now they have a sale on certain children’s books. If you buy the books using your loyalty card and they store that information, they now know (if they didn’t ask in their registration form) that you either have children or have a relationship with children, perhaps as a grandparent. So they know you buy children’s books. This is valuable information that you could take advantage of in your proximity based marketing application.

More on the location based aspect for apps is coming up, now that we have covered some basics. If this is of interest, please bookmark or subscribe. If you know of someone else who might be interested, why not send them a link? If you would like to discuss these concepts with us about your own business, please contact us.

September 20, 2011 Posted by | Australia Maps, Business Analytics, Business Intelligence, Business Tools, Data Mining, Distribution, geosmart, GIS, iphone, location based services, Loyalty Card, Mapping Applications, Marketing, new zealand, new zealand maps, Print Advertising, proximity based marketing, Radio Advertising, Retail, Retail Profit, SaaS, territory management | , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Location and Shopping – Tomorrow Becomes Today

This morning I was watching a podcast on Unterther.TV which was an interview with Ken Harlan of MobileFuse, a Mobile advertising network. Their core business is publishing ads on mobile applications and web pages, but the discussion that got my interest was about people using their own Smartphone devices to do their shopping. This piqued my interest because one of the areas of shopping in the future is about navigating the grocery store and shopping interests.

GeoSmart is often found at the leading edge of location based technology, working with partners to come up with new applications and helping build the future that one day we will take for granted.

Sky and Sainsbury’s Supermarkets have collaborated to put iPad mounts with chargers in supermarket trolleys. The story suggests you might like to watch sport news and other entertainment.

The idea sort of appeals to me, but I can hear my wife saying “Don’t You Dare!”

But there are more powerful opportunities and I’m sure where Sainsbury’s really want to head with a company like MobileFuse would go something like this:

1. A Sainsbury App that gives you access to their product list including using your Smartphone scanner as you consume product at home to generate your shopping list. When you are ready to go shopping, the app would navigate you to the nearest store to your current location or a selected location such as your home or other destination, so your frozen goods stay cold.

2. Having checked in, you could be notified of any friends or family that are also in the store, or in the neighbourhood, or not:)

3. The App gets to know the sort of things you like to buy and shows you ads of similar products that may be of interest. This could include showing you videos about the product as you are walking around the store, it might even share recipes for you.

4.  Where I get excited is that it could show you where to find all the products you want, in effect order the shopping list so that it lets you know which product to get next as you go down the aisle so you don’t miss anything. In a chain, location based mapping and indoor navigation information could be uploaded for any store in the country, so that anywhere you go, you don’t need to know the layout.

5. This brings in loyalty programs that recognise you and offers you deals based on products that meet your profile and would be of interest to you.

6. You scan your products into the basket in the same way as they have done in stores like Albert Hein in the Netherlands, but the difference is that you do it on your own device and probably also have contact-less payment at the check out.

This may sound futuristic but self scanning was a struggle to introduce not that long ago. I think in a few years time you might find yourself doing it. Hopefully we will have assisted in this.

August 31, 2011 Posted by | Business Tools, Check Ins, Distribution, driving directions, geosmart, Indoor Navigation, location based services, map tools, Mapping Applications, maps, Marketing, Mobile maps, new zealand, proximity based marketing, Retail, route optimisation, Sales, social networking, Web Map | , , , , , , , , , , , , , , , , , | Leave a comment

More on Group Deals and Prescience

Seems like I was on the mark in my blog in July about the huge volume of one day type web sites and that people will quickly get sick and tired of the bombardment of deals. So many of us today are getting huge numbers of time wasting emails, offering us everything from holidays to lucky dip bags. A story in Ad Age Digital this morning says that the trend is now definitely heading downwards in the US.

Yelp, is cutting down its Yelp Deals staff in half as outlined by CNN today and Facebook announced this week that they are shutting down Facebook Deals after originally suggesting that they were going to make huge inroads into Groupon’s business.

Just to reiterate, the problem isn’t the deals. The shear number of sites offering daily deals and bombarding consumers is a fad and most, as I predicted will quietly disappear as they find there is too much competition and they can’t make a profit or reach critical mass for a harvest or sale. As I have already said, retailers aren’t making money from these deals (generalisation) and where they do use the deals to get people into their premises, they don’t seem to be coming back for a second visit once they have their deals.

I will shortly come back to the new strategy that has much more potential to generate positive cash flows for all concerned which is off course location or  proximity based marketing. There will of course be a spate of these and many of the same developers will be jumping on the bandwagon, but they will find that it is much harder than they think and they will struggle to get many retailers on board for reasons I have discussed previously.

All is not lost and proximity based marketing / check ins has huge potential. However it is something that takes an understanding of destination business, game theory, loyalty, what people actually need and want, knowledge about location based services and much more. Areas that we can help with. Get it right and this is a huge business opportunity for all, get it wrong and people will be turned off and it will take much longer to achieve the results that we are predicting.

August 30, 2011 Posted by | Business Tools, Check Ins, competition, Distribution, facebook, foursquare, geosmart, location based services, map tools, Mapping Applications, new zealand, new zealand maps, proximity based marketing, Retail, Retail Profit, Return On Delivery, ROI, Sales, software, Uncategorized | , , , , , , , , , | 1 Comment

Consumers are Checking In to Retail Stores

In my previous blog I pointed out that that retailers were not adopting strategies for check in location based marketing. In the blog prior to that I quoted Comstat research that shows that in the first 3 months of this year 16.7 million people check into locations using Foursquare and similar applications, representing 7.1% of the total mobile population. I don’t know what the statistics are for New Zealand, but I suspect the numbers are somewhere between 5 and 7% of the NZ mobile user population.

Comstat also came up with some interesting statistics about the demographics of those users.

Firstly a lot of people think this is technology for men, that they are the geeks, but of course women love to shop, they are social shoppers and as the graph shows, there are in fact more women than men checking in!

The predominant age group should be no surprise, we would expect 18-44 year olds to be the most tech savvy and of course having disposable income for Smartphones which are the predominant mobile used for check ins. Again from Comstat for the first 3 months of this year in the USA Android pipped Apple at 36.6% to 33.7$ of devices used for checking in.

The largest group of users were in full time employment 46.6% and the second largest at 23.3% were full time students.

Just as a footnote to my blog on Group Deals and Bricks and Mortar Business there was an interesting story in eMarketer a couple of days ago. The story contained statistics that from research by Cooper Murphy Copywriters in July this year, 82% of Groupon users expressed dissatisfaction with the level of repeat business they generated from their campaigns and 49% would not use them again. This is interesting when many companies use daily deal type promotions to introduce new customers to their stores.

Of course you know where I am going with this series and that is that Location or Proximity Based Marketing offers far more compelling tools for retailers and other destination businesses to entice people into their premises. Obviously a fundamental component of that is not just how to get them to come to you, but how to get them there when you want them and to have them purchase or consume products or services that achieve your goals. For a retailer that might be those same products you were quitting on a daily deal, but like the Auckland superette owner who has been selling milk at 10 cents below cost as a loss leader, part of the strategy behind that is the opportunity to merchandise other products those same people will buy with a healthy profit margin. If you have an aged stock problem, location based marketing can get people into your store and while they enjoy the low price of your distressed inventory, put something at eye level in from of them that increases the profit of your sale. Cherry pickers do not make you profit.

Likewise if you have a cafe or restaurant, don’t just offer a free coffee with $5 worth of food. Offer it only at times when your business is empty and not to the people who were coming in anyway, they are dealt with using your normal loyalty program. Of course loyalty marketing is also very important and fits into location, but you’re going to have to come back to a future blog for that.

Thanks for reading our blog. If you think this is of interest to people you know, please tell them about it or send them a link. You can also subscribe using the RSS feed.

August 11, 2011 Posted by | Android, Auckland, Business Intelligence, Check Ins, competition, Distribution, foursquare, iphone, lbs, location based services, map tools, Mapping Applications, Marketing, Mobile maps, new zealand, proximity based marketing, Retail, Retail Profit, ROI, Sales, software, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Retailers are not flocking to take advantage of free check in marketing services

I did some research looking for New Zealand business success stories with check in marketing. I really struggled to find any. I went and visited a number of businesses in retail and hospitality and most of them didn’t know what foursquare was. One gentleman in a cafe told me he knew about it, but was too busy to learn how to do it. I pointed out that it was really easy, but he said he really didn’t have time and then sat down to have a coffee with one of his customers. I understand on further research that this is how he keeps a loyal clientele which is great, but he could always find a student or someone else to do it for him.

I spoke to a number of people in retail that gave me a similar story. It seems, as is often the case that most managers are too busy working on their business to work in it. This is a trap in my humble opinion. It’s common knowledge that businesses like cafe’s and restaurants to name a couple, change hands about every 18 months, a classic bell curve that starts with ambitions and energy, hard work, great service and develops cash flow. Then they get into a pattern or flow of how they do business, stop innovating, perhaps stop having fun and start telling themselves how hard business is. When they started fresh, people enjoyed the new business, new products and faces and the passion flowing from the owner and staff.

The thing is, we have an amazing opportunity to capitalise on location here. Remember the old rule of successful retail “Location, Location, Location”? Well it isn’t enough to stay fresh these days. As consumers we are spoiled for choices and sometimes we need a push to either stay loyal, or to try something new. Location Based Marketing is as simple as going to foursquare and claiming your business. To be honest, claiming your business can be a little difficult in New Zealand from a validation perspective if you are in a non residential street (where NZ Post do not deliver mail) and I have tried to contact them about this, but you should persist.

The great thing with foursquare for now is that they provide you with lots of very easy ways to set up promotion. You really don’t even have to be marketing savvy, it’s all laid out for you. Go and have a look and check  out the Manager Tools. It is so easy. If you need more help, follow this blog and we will explain how to do it.

People are checking into your store and stores near you all the time, why not give them a reason to come into yours, unless you have more customers than you can deal with. The numbers of people using check in services is growing greatly.

Have a look at the bell curve above and imagine this is your business. How long have you been in business? Have a look at your financials, now see if you can plot them on the curve. Is business growing? Are you on the rise? Have you peaked, would you like to keep the rise going? If you are reading this, maybe you have made some time to work on your business, which is great. Know someone in business who could use a little help? Tell them about this blog. There is more information coming on how to do these things.

If you are already using check in services for your business, we would love you to leave a comment. If you are part of a chain or collaborative group and are not currently doing anything in this area, or and agency wanting ideas for your client, GeoSmart would love to help point you in the right direction. We don’t create loyalty applications, but we have business partners and clients who do. We also welcome questions.

I’ll leave you with a link to an article on BusinessDay News which suggests that Location Based Marketing could be worth US$6.2 Billion within a few years. Maybe there is something to it? Would you like a slice?

August 7, 2011 Posted by | Business Tools, Check Ins, competition, Distribution, geosmart, lbs, location based services, Mapping Applications, maps, Marketing, Mobile maps, new zealand, proximity based marketing, Retail Profit, Sales, social networking, Uncategorized | , , , , , , , , , , , , , , , | Leave a comment