Geofence Pilot Program Results Show Increased Sales

Yesterday at the Mobile Payments Conference in NYC, I joined forces with Jim Walz, Alliance Data's director of mobile strategy and services, to present the results of a joint pilot-geofence campaign we executed at the end of 2012. While people have talked about the possible potential of geofencing and mobile marketing, this is the first time the concept has been proven. And the results couldn't be more positive.

Alliance Data Infographic

Key findings showed that:

  • triggered sales per transaction were larger than average transaction sales, and
  • sales were up 2.5% over projected sales for the time period and up 4.9% over projected sales for Black Friday.

A post-campaign survey was also disseminated to the participants of the trial and they told us that:

  • 37% of participants claimed the text messages influenced them to visit a brand,
  • 39% indicated that the messages influenced their purchase decision,
  • 68% indicated they will likely sign up for future location-based text campaigns,
  • 78% somewhat or strongly agree that mobile campaigns have the ability to influence consumers’ decision to visit stores,
  • 88% felt that the message frequency was just right, and
  • 60%+ were not concerned with security, privacy, or communicating with a retailer via mobile.

In reference to my blog earlier this week, this pilot-program used Network-Based Geofencing. To read the press release with full results click here.