Leading money-saving brand, vouchercloud, reports it has successfully trialled new geo-fencing marketing technology, announcing that it will change the way that consumers receive offers and deals whilst shopping on the high street, removing the process of sourcing the deals themselves.
The brand said it is adopting new geo-fencing technology to enable users of their smartphone app to receive notifications automatically whenever they enter a specific radius of one of their contributing retailers; thus eliminating time spent sourcing deals themselves and delivering timely reminders of the deals on offer.
Vouchercloud.com has been trialling the new technology with several partner retailers in the UK and Netherlands. Geo-fencing is a new way for retailers to communicate with their customers, by delivering exclusive, targeted content via push notification to users’ smartphones when they come into the radius of the technology. When entering a geo-fence district, which vouchercloud.com trialled with a radius of up to 200 metres, the user receives a push notification informing them of nearby offers, complete with a click through option to open the advertised offer within the vouchercloud app.
Trials in the UK have been held in association with the below retailers:
– Papa Johns
– Hotel Chocolat
– Jones Bootmaker
– The Disney Store
– Loch Fyne
The impact of geo-fencing is exemplified by Hotel Chocolat’s experience during the trial; voucherloud.com confirmed that revenue increased by 80% during the period that geo-fencing was used to support normal marketing and communication, driving footfall and improving sales.
In order to further understand influential factors over the success of the trial, the variables of the notifications were changed to assess how this impacted the conversion rate of the advertised deal. Taking the restaurant chain, Prezzo, as an example, the day and time of the campaigns played an integral part; therefore, the deals were focused on weekends and specifically at lunch and dinner times, targeting users when they were looking for somewhere to eat.
Another factor that influenced the conversion rate was the proximity of the store. The research showed an average conversion rate of 30% was achieved, which is far higher than the industry average for communication channels such as email, SMS, push etc; however, this increases further still, to an average of 35%, when the radius is restricted to 50m of the store’s entrance.
Stephen Davis of vouchercloud.com said: “We are very pleased with the initial results. On some days, we have seen click-through rates of 45%, an incredible amount. We are the first in our market to offer this functionality and feature, which is a great innovation for us and something we can offer in addition to our other great attributes for our merchants.
“Geo-fencing technology allows us to drive in-store redemptions in a very clever and critical part of the purchasing cycle. Customers will be able to opt-in to receive location-aware notifications to increase engagement and join up an online campaign. It’s a great way of driving in-store activity and putting vouchercloud front of mind, drawing the customers’ attention to an offer they might not have seen otherwise.”