Can Beacons, Snap-to-Store and Innovative 1:1 Mobile Marketing Platforms Deliver Higher Margins?
Brands are getting closer to cracking the holy grail of online to store and QR codes driven insights are part of the solution. Facebook has been testing QR code-based redeem and rewards app features, Snapchat is pushing “Snap to Store” with geofilters while music-streaming Spotify just released its elegant Spotify codes for easy P2P music sharing (formerly “Spotify Scannables.”).
From obsolescence to renaissance, QR codes are being reinvented in a much output-focused and data-driven way. Brands can leverage the power of 1:1 marketing to attribute key behaviors back to the customer. If we know that these customers are now more engaged, buy more and are part of the high value / high AOV segment… Then…
….The positive long term impacts can be 4-fold:
* Increased Customer LifeTime Value
* Merchant benefiting from Higher Margins from higher average order value
* Increased relevance of Ad targeting + Data accuracy
* Increased focus on targeting heavy users: $ investment, marketing messages, exclusive access to exclusive products and promotions, exclusive access to the brand voice at the company and more more
Snapshot of brands making headways with the QR code technology:
- Behemoth Starbucks drove 27% of customers to trial app via in-store QR codes powered by app provider 1App which enables download free mobile experiences
- Fast food restaurant chain Wendy’s developed a sponsored (snap) geofilter ad to promote Wendy’s Jalapeño Fresco Chicken Sandwich. This ad drove over 42,000 incremental people to visit one of the burger chain’s various locations within seven days.
Facebook has been testing O2S QR codes since 2012 with the goal of:
“helping businesses continue to connect with customers where they are, we’re running a small test that enables people to use the Facebook app to collect and redeem rewards when they make a purchase at a participating store.”
The Snap-to-store measurement is coming to play in the beacons and store-visits field where Google has been operating for a while (see 2010). For that purpose, Snap inked a deal with Oracle Data Cloud in January to let marketers use offline data like loyalty card programs in targeting mobile ads. Their research also identifies users that are heavy shoppers.
Snap to store regional and state-level lifts and incremental visitors are reported.
Since the early 2000s, Pioneer advertising platform Google has been actively researching in the Online to store measurement field and as published countless articles on Think with Google with store visits conversions as well as client testimony like Sephora who has turned smartphones into store magnets. Its Google Analytics 360 suite promises to bridge the gap between online and offline attribution; with success stories from AirBnB, ideeli, GoPro and BabySupermall.
“Google has hired independent research company to do an experiment: saturate some markets with ads for a particular product and see if that lifts in-store sales. The results: yes! We saw up to 15 times return on ad spend”.
While this article does not fully answer the initial question of delivering on Higher Margin/ Higher AOV / Higher Lifetime Value customers , it gives us some food for thought about the technologies of the present that are inching towards delivering on that value. More to come on this.
Question : Is your client leveraging any of these mobile marketing and attribution technologies (iApp, PlaceIQ, Snap codes, AppFlyer, AdAction, AppNana, Admitad, Mcent and Liftoff etc)? Please share your learnings.
For the road: For the Lumascape geeks around here, see the specific portion about Analytics/ Measurement/ Attribution and Reporting.
Snap wants to help brands track when ads drive people to locations
Spotify adds QR-like codes for quick music sharing
Facebook rewards dangles QR Codes dangles discounts for offline purchases
Snap Advertisers Can Now See If Their Ads Increase Foot Traffic
Note: Opinions in this article are my own, not those of my employer.