How QSR Marketers are Using Location Intelligence to Improve Revenue and Loyalty
In December 2018, Burger King’s app soared to #1 spot on Apple’s App Store in the United States – not something you would usually expect from a quick-service restaurant (QSR). But these weren’t the usual circumstances anyway. Burger King had found a unique way to troll its competitor, McDonald’s, by leveraging a powerful weapon in its marketing arsenal – location data.
Between December 4 and 12, whoever drove within 600 ft of a McDonald’s outlet in the US was invited to make an in-app purchase of Burger King’s famous Whopper sandwich by paying only 1 cent. Once the order was placed, Burger King app would direct the customer to the nearest store from where they could pick-up the food. By doing nothing more than deploying geofences around its competitor’s locations, Burger King achieved the following:
- It gave its nemesis a pretty hard time and received national attention in the process
- It engaged its customers with tongue-in-cheek humor and gained their loyalty
- It made more than 1 million people download and register on its app within 36 hours of launching the campaign, amassing valuable customer data
No wonder 69% of QSR marketers confessed in a recent Cuebiq report that they plan to increase their use of location data by 2020. And geofencing only skims the surface of the many ways in which location intelligence can help QSR marketers to develop highly-effective marketing strategies.
Foolproof Direct Mail Campaign
In an October 2018 survey by Publishers Clearing House, 50% of women and 44% of men said they would be willing to try out a new QSR if they were offered a coupon discount. Clearly, direct marketing material delivered to targeted demographics is a key driver for any QSR looking to attract new customers.
With detailed demographic information and precise address data, marketers can ensure that they are delivering the right message to the right people. Here, the quality of location data plays a very important role because no QSR would want to spend time and money on addresses that no longer exist or have key components like municipality or street name missing from them.
Intelligent Site Selection for Delivery and Non-Delivery Outlets
With more and more people wanting food to be delivered to their door, many QSR brands are trying their hand at delivery services. But since no brand would want to sacrifice the quality of food, it needs to make sure the delivery outlet is operating from a location which has a large number of target demographics living within a short delivery distance.
A location intelligence platform can provide market development managers with all the essential information they need to make an informed decision. This includes demographic data, historical view of how an area has changed over time, nearby points of interest, etc. For example, if an area has a lot of offices generating huge lunch-hour demand, a QSR franchisee may even find it more profitable to offer direct delivery instead of using a third-party service.
The same principles of location analytics apply to non-delivery outlets as well. A location intelligence platform would pair information about new developments, such as upcoming malls or sports arenas, with other important criteria like demographics and median income to make sure the QSR brand does not miss out on any lucrative opportunity.
More Powerful Digital Marketing Campaigns
Location data has empowered umpteen brands to deliver highly-personalized advertisements to their target audience and the QSR sector is no exception. By pairing data from a location intelligence platform (demographics, competitive analysis, consumers offline behaviors, etc.) with geo-filters offered by social media platforms and search engines, QSR marketers can design more appealing campaigns and reach out to different audience groups at their ‘point of hunger’.
And once the campaign is over, marketers can churn the freshly-obtained data in the location intelligence platform to generate ‘heat maps’ of interests received from specific geographies or postal codes, such as identifying combo meal lovers or categorizing the places where BOGO offers received the maximum response.
Real World Competitive Market Analysis
Keeping tabs on the competition and understanding how their own promotions are working compared to the rivals’ has long been QSR marketers’ gold. Location intelligence takes this a step further by relaying real-world customer behavior to marketers and empowering them with actionable competitive intel.
Marketers can place geofences around competing restaurants and see if and when their own customer group is visiting them. Combination of this intelligence with the incentives being offered by competitors will give marketers knowledge on how to steer customers back or even keep them from visiting the competition in the first place!
By the same token, if location data reveals that a QSR brand’s customers tend to shop at a neighboring fashion store, marketers could consider developing a joint loyalty program that would award customers points for shopping at both outlets, thereby cementing their allegiance to the brands.
Better Customer Experience Mapping
To increase customer satisfaction and inspire loyalty, many QSR brands conduct surveys or solicit feedback from their patrons. If marketers use this data maturely to find out which services are valued most by customers, they can gain valuable insights to improve product quality, enhance customer experience and engagement, and improve loyalty.
A location intelligence platform acts as a centralized data hub where market planning analysts can visualize customer data with ease, speed, and agility, and make smart decisions. For example, by pulling up data for specific 6-digit Canadian postal codes, QSR marketers can discover the differences between average spend in neighborhoods and zero down on the locations where the brand is resonating particularly well with the people.
Suffice to say, location intelligence is the present and the future of QSR marketing. Harnessing the power of place, a market planning analyst can both increase foot traffic to the store and encourage people to order more food online. DMTI’s CanMap Address Data and Location Hub Visualization & Web Services can help a QSR to amplify its marketing strategy and improve both revenue and loyalty – starting right from the process of site selection and personalizing promotions for different customer segments to mapping the entire customer experience.
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