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Using Location in Loyalty Cards

Loyalty cards haven’t fundamentally changed the way they do business for many years. There are the fans and the people who actively look for deals, but most of the people we have spoken to recently have said that the time they realise there is an opportunity is when they are at the checkout and the cashier asks if they have their Fly Buys or whatever card. This obviously is not generating increased sales or revenue.

There are huge opportunities for loyalty cards to exploit location with the large number of people now using Smartphones fitted with GPS. Effectively a Smartphone application can therefore identify when a card holder is near a store or participating retailer and can potentially be offered a deal using push technology. We are hugely spoiled for choice these days as retailers flock near each other to try to win your business. For example, if you go to AA Maps and do a search for ‘Hardware Albany’ you will come up with 48 results! That’s a huge range of options in one area within around a 5km radius.

Albany Homes Owner Occupied 70% or Over

A large number of these retailers spend a lot of money on advertising in newspapers, magazines, letter box drops, eDm’s and much more. Many of them are involved in loyalty card programs which provide additional opportunities for targeted marketing. These are all very expensive media and the approach uses often sophisticated targetting using demographics tools, such as GeoSmart’s BIonaMap discussed in a number of our blogs such as this one using demographics for a lawn mowing franchise. By understanding what your target market is, you can identify the best place to locate your store and which areas are best for letter box marketing. Of course success requires that your target market is open to buy and looking for your product.

If a consumer is looking for a lawn mower and your mailer arrives in their letter box, there is the potential that they will visit your store, but how often do they buy lawn mowers and how often do they read your mail drop? The example illustrated here shows homes where the owner occupancy is 70% or greater, a perfect target for DIY sales using BIonaMAP from GeoSmart.

In coming blogs I will post examples of how a loyalty card smartphone application using GPS location could integrate with retail Point of Sale systems, inventory management and really understand what a customer is looking for, sending meaningful offers to consumers when they are looking for product and are in proximity. If you make things easy for customers and have a meaningful relationship with you, they will buy your products over your competitors products, but to effectively do that, you (your technology systems) really do need to understand who your customers are and what their needs and interests are. They want to give you their money and it isn’t necessarily about special pricing.

Where should you start? Probably by asking what your loyalty card company is doing about proximity based marketing and check ins (which we have discussed frequently on this blog). GeoSmart is keen to support local loyalty card companies and application developers and we are convinced that there are huge opportunities to really bring in serious retail profits and the opportunity to develop genuine loyalty relationships. Who wants an unfair advantage? If that’s you, why not contact us?

Feel free to ask questions here or to leave a comment. Bookmark this page for upcoming blogs on how a loyalty card company can use this technology to help their partners win more business.

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September 19, 2011 Posted by | Business Analytics, Check Ins, geosmart, gps, new zealand, proximity based marketing, Retail, territory management, Uncategorized | , , , , , , , , , , , , , , , , , , , | Leave a comment

Location is Going Places

Obviously we would love to be writing more blogs about how our clients and partners are writing location-based apps using GeoSmart Maps API’s and Web Services and how we are helping the discover new ways to use location for proximity based marketing, location-based games (read future proximity based marketing), location-based education and  much more.The good news is that there are many new projects happening and more announcements to come next week from our camp.

There are companies who automatically go to global map providers because they perceive there is no difference and maps are pretty much all the same. To those people I say, go and have a look at the new Upper Harbour Motorway on AA Maps (one of our clients) using GeoSmart Maps and then check any other map provider on the web or on a mobile application. It’s only one of many locations we update as they happen because we are local and we care about providing the best data to our clients and to New Zealand motorists, but it is pretty major if you travel between west and north Auckland.

So this blog is for those of you who are wanting to develop applications using quality maps and location-based data, because we want to keep you informed and share great ideas with you and help you achieve your goals, whatever your business models and budgets may be.

One of the areas that I think is huge is proximity based marketing. If you are running loyalty programs, you really need to think about what you are doing. If they are working well, then we say they could be working much better, if they are not performing the way you would like, you should talk to us about how we can help, because location is our bread and butter.

As we have discussed before, the marriage of social media and location is really going places. I’d like to mention a couple of recent developments relevant to the many blogs here.

Foursquare

Now obviously Foursquare is global and needs more than the excellent New Zealand and Australian Maps we provide, but they are really showing the way to develop successful check in software. Want to know more about check ins and Foursquare have a look at more of the blogs on this site.

One of the things that people have been asking about is how to push a message to people based on their proximity. In effect, rather than have people open up Foursquare and look for deals and promotions near you, what people have been asking me about almost daily is how do we push an alert to people, rather than have them stumble on opportunities.

Now Foursquare has their own very popular application and I hope to hear that their latest announcement appears on their own application as well as the API’s they offer to developers. The Foursquare global hackathon starts tomorrow and it has een whispered on many sites around the world that one of the new features to be launched there is a Push API.

What does this mean? Well effectively it is an opportunity for developers to look at ways to send push messages to people using their applications using the Foursquare API’s. During the hackathon there will be competitions to see who can come up with the best applications using this functionality over the week. It could be almost anything and I’m hoping that this will provide our local New Zealand developers with ideas as to what they can do using these concepts. A few ideas being floated include:

  • Your mobile shopping list reminds you that you haven’t bought the milk and you are passing your local grocery store.
  • You are at a bar or restaurant and your app tells you that you have friends nearby. You can notify them where you are and get them to join you.
  • Your restaurant has empty seats and you have loyalty customers nearby, send them an invitation with tonight’s specials
  • Your loyalty card has double points today and you are about to pass your favourite Petrol Station, DIY, Clothing, Consumer Electronics store

Obviously we have much cooler ideas in our treasure chest to share with our clients, but you get the idea I hope. This is one of the missing links and is going to turn the concept of check-ins on its ear in my humble opinion. Now you don’t need to use Foursquare for this, although I’m not saying you shouldn’t. Personally I’d like to see these sorts of things being developed and proven locally in the way good Kiwi entrepreneurs do, with support from GeoSmart and then shipped overseas generating export revenues.

We have clever and passionate people here and sometimes it frustrates me that companies developing applications around locality instantly go to American or other map providers who aren’t passionate about New Zealand aren’t keeping their maps up to date and don’t have local resources to help. OK, I’m off my soap box people.

September 15, 2011 Posted by | AA Maps, Auckland, Australia, Australia Maps, channel partner, Check Ins, competition, competitions, foursquare, geosmart, gps, ICT, Indoor Navigation, iphone, lbs, lbs games, location based services, map tools, Mapping Applications, Marketing, new zealand, new zealand maps, proximity based marketing, Social Media, social networking, Uncategorized | , , , , , , , , , , , , , , , , , , , , , , | Leave a comment