Challenge
An FMCG company was running nationwide advertising campaigns (both online and via printed brochures). However, it identified a major disconnect: consumers were not fully aware of the attractive offers available at their specific local stores. The promotional campaigns, though well-funded, were not optimized for location, necessitating a solution to personalize offers and reach consumers at the right time and place. The company chose to implement iPresso Marketing Automation to address this.
Action
The company implemented a strategy focused on real-time data and location-based targeting:
- Real-Time Data Collection: The iPresso system collected and processed multiple data streams simultaneously:
- Consumer locations (where consent was provided, e.g., via a mobile app).
- Purchase history from loyalty cards.
- Product preferences.
- Active promotions within each specific store in real time.
- Location-Based Segmentation: Consumers were segmented dynamically, primarily based on their proximity to a store. This segmentation also incorporated deeper data points, including products most frequently purchased, favorite brands, and store visit frequency.
- Personalized In-App Promotion Banners: The mobile application displayed dynamic banners featuring promotions that were tailored to the consumer's purchase history and specific to a particular store (e.g., “Your favorite coffee now for only $9.99 at the store on Bird Street!”).
- Emails with Local Flyers: Consumers who had opted in received emails containing a digital promotional flyer that was dedicated to their nearest or preferred store, with relevant products highlighted.
- SMS Messages for Urgent Offers: For short-term or time-sensitive promotions (e.g., “Today only: 30% off selected soft drinks at your store!”), text messages (SMS) were sent to eligible customers within the store's range.
Results
The shift to location-aware, personalized marketing significantly increased promotional effectiveness and store traffic:
- Offer Utilization: The use of promotional offers tailored to the consumer's location and preferences increased by 22%, as customers were more likely to take advantage of discounts available "here and now."
- Store Visits: The number of visits to the store increased by 16% among the geotargeted groups, demonstrating that localized communication was more effective at driving foot traffic.
- Average Order Value (AOV): The average order value saw an increase of 11%.
- Consumer Satisfaction: Customer satisfaction improved by 18%, reflecting appreciation for receiving relevant, timely, and convenient promotional information.
