There’s been quite a bit of talk recently around the value of competitive geo-conquesting. Having done many such campaigns for retail clients ourselves, we’re here to tell you that we’re big fans. Targeting consumers based on their visits to rival stores does in fact work, with results exceeding industry norms.
But retailers can now do better.
Most location-based geo-conquesting campaigns are one-dimensional, with targeting based on “who” is visiting competitors and “how often.” Certainly these are important parameters, but relying solely on that knowledge leaves marketers ill equipped to know what offers will resonate with these consumers.
Enter, context. Using purchase history, marketers have some level of context on consumers that shop with them and competitors, but these insights can be misleading. Consumers frequently purchase items for other people, so using purchase history alone often results in irrelevant offers, and underperforming campaigns.
The essential second dimension: Location-based Lifestyle Context.
By knowing what consumers as individuals are interested in and passionate about, built on the local events and activities they frequently engage in, marketers can definitively know what they should say to optimize geo-conquesting campaigns.
As an example, we recently ran such a campaign for a major U.S. brick-and-mortar retailer. Half of the targeted consumers received offers based solely on the retailer’s purchase history (where they had it). The other half received interest-based offers by lifestyle context segments, including:
- Running Enthusiasts – Based on frequent participation in running marathons and visits to sporting apparel stores
- New Parents – Based on frequent attendances at birthing, nursing and infant care classes and visits to baby apparel stores
- Self Pamperers – Based on frequent visits to spas, beauty day events and wellness activities
- Health Nuts – Based on frequent visits to farmer’s markets, nutrition classes and specialty nutrition stores
The results were compelling:
- The Purchase History Offer group generated a 28.7% average increase in store traffic during and two weeks after the campaign.
- The Lifestyle Context Offer group generated a 62.3% average increase in store traffic during the same period.
So, we’re strong proponents of geo-conquesting; it works. But the next time you plan to execute one of these powerful campaigns, make sure you utilize all of the necessary tools—not just “Who, Where and How often,” but “What to Say” to lure consumers away from the competition.