Case Study: Location-Triggered SMS for Shopping Mall



Case Study: Location-Triggered SMS for Shopping Mall
Alliance Data Retail Services, a U.S. provider of branded credit card programs, recently collaborated with network based geo-location aggregator Locaid to run an opt-in geofence pilot program between Black Friday and New Year's Eve in 2012.

During the campaign, Alliance Data Retail Services sent over 20,000 opt-in email invitations to cardholders of select branded credit programs, asking them to join in a text message pilot campaign at Easton Town Center, a Columbus, Ohio, shopping mall.

Then, using Locaid technology, Alliance Data implemented a virtual geofence around the mall designed to trigger SMS text messages to participants who had opted in to the campaign when they were within a pre-determined proximity of the mall.

These communications engaged participants with various types of messaging and encouraged them to use their store-branded credit cards for a chance to win a shopping spree at one of the participating retailers. The proximity-based messages influenced the purchase decisions of 39 percent of the participants; 37 percent reported the messages influenced them to visit a specific brand. Following the pilot program, 68 percent of participants indicated they would sign up for future location-based SMS campaigns.

Initial findings from the pilot revealed that participating cardholders spent an average of 24 percent more in a shopping trip triggered by a text message than the average cardholder. Credit sales were up 2.5 percent over projected sales for the pilot period and up 4.9 percent over projected sales for Black Friday alone.

Wednesday, April 17th 2013


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