Case Study: Location-Triggered SMS for Shopping Mall

Alliance Data Retail Services, a U.S. provider of branded credit card programs, recently collaborated with network based geo-location aggregator Locaid to run an opt-in geofence pilot program between Black Friday and New Year’s Eve in 2012.

During the campaign, Alliance Data Retail Services sent over 20,000 opt-in email invitations to cardholders of select branded credit programs, asking them to join in a text message pilot campaign at Easton Town Center, a Columbus, Ohio, shopping mall.

Then, using Locaid technology, Alliance Data implemented a virtual geofence around the mall designed to trigger SMS text messages to participants who had opted in to the campaign when they were within a pre-determined proximity of the mall.

These communications engaged participants with various types of messaging and encouraged them to use their store-branded credit cards for a chance to win a shopping spree at one of the participating retailers. The proximity-based messages influenced the purchase decisions of 39 percent of the participants; 37 percent reported the messages influenced them to visit a specific brand. Following the pilot program, 68 percent of participants indicated they would sign up for future location-based SMS campaigns.

Initial findings from the pilot revealed that participating cardholders spent an average of 24 percent more in a shopping trip triggered by a text message than the average cardholder. Credit sales were up 2.5 percent over projected sales for the pilot period and up 4.9 percent over projected sales for Black Friday alone.

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