Remember those Apple iPhone ads for Siri? “Siri, remind me when I get home to take out the trash”.
Admittedly Siri has had her bad PR as of late – more useful as a tool to raise blood pressure than provide convenience. While we can debate the usefulness of Siri, I want to focus your attention on the location targeting technology at play in that commercial. Your iPhone is able to give you useful information when the timing’s right. In this example it’s arriving home and taking out the garbage. In other examples it can be a coupon or offer at the time you’re purchasing a product.
In a commercial setting Location Targeting derives the most benefit with retailers who rely on timing to engage their customer. For large ticket retailers, such as dealers, convenience and timing of the message is key.
How valuable would it be to chat with your customer the moment they walk onto a competitor lot? How valuable would it be to send an oil change coupon to your customer the minute they pull into a quick lube station?
For the first time we are able to influence a customer precisely at the moment of decision.
Let me give you an example:
I was shared a story by a GM who used Location Targeting for a Saturday only offer:
“Best Price Match Offer + $500 cash. Today only.”
The dealer targeted 5 competitor lots. On that Saturday alone, 7 shoppers brought their phones into the store and 3 purchased vehicles from the offer.
The dealer above is a prime example of catching a customer at the time of decision.
Let’s look at technically how Location Targeting works.
- Get the download.
App-based location targeting is tied to, you guessed it, a mobile app. Be it Android or iOS, the automotive shopper must first have installed your dealer app on his or her device. The app does not need to be running and the phone does not need to be turned on.
- Identify targeted locations.
Location Targeting by definition delivers a coupon or offer to the user based on their location. Therefore, we need to identify up to 5 physical locations of interest. Many dealers choose competitor lots or quick lube stores.
- Compose the offer/coupon.
The coupon or offer should correspond with the location targeted. For example, if we had chosen a competitor’s lot, our offer could centered around a price match offer. If we had chosen a 3rd party quick lube location, a service scheduling discount would be most applicable.
- All set: Location Targeting is Active.
When a customer visits one of the five targeted locations, a message with the coupon or offer instantly appears on their smartphone. Should the customer choose to engage with the message, they are taken to the app for redemption or next steps.
Your goal with Location Targeting should be a showroom visit. Incentivize your customer to visit your store by motivating them when the timing’s right.
What other incentives or offers work well when delivered at the moment of decision?
“Claim Your $25 Starbucks Gift Card with a Test Drive of any Vehicle”
“Your $19.95 Oil Change Coupon is Available”
Do you think Location Targeting works best pre-sale or post-sale?
How else could you use Location Targeting with your store? Let us know in the comments!