Quick service restaurants operate in a crowded marketplace and marketers often have to work hard to convince customers to make a split-second decision to choose their restaurant rather than their competitor’s restaurant next door.
Many QSR marketers are already using location data to inform their marketing strategies and are already geo-targeting existing and potential customers via mobile ads. However it is not enough to have a national location-based strategy where potential customers are targeted in the same city or town as your QSR with little or no knowledge of who the ads are being targeted to.
Your location-based advertising strategy for 2018 needs to be informed by a sophisticated understanding of your audience including their dining habits (whether at your restaurant or at your competitor’s). The latest technology means that location-based ad platforms are able to refine targeting to a high degree so you can reach the right audience at the right time. Read on to discover the main advantages for QSR marketers to invest in location-based advertising.
The obvious main advantage of a location-based advertising strategy is to increase visits to your restaurant. Thanks to in-depth audience insights, you can create a refined marketing campaign and pitch relevant messages or offers to target brand new customers, steal customers who frequent your competitors, build loyalty and increase visit frequency amongst your existing customers.
Thanks to innovative technology you are also able to measure exactly how many restaurant visits arrive as a result of these campaigns. At the beginning of your collaboration with a location-based advertising platform, you should be offered the option to ‘map out’ the surface area of each restaurant. Thereby only ‘real’ visits are measured and not people in the parking lot or in the restaurant next door.
In addition to mapping, it is essential to calculate the dwell time (average duration in the store), to properly count a store visit. This enables the platform to be able to exclude employees, people just walking past the store, etc and provide a more accurate measurement of in-store visits.
The best way to pitch a special event or promotion is to target people in the immediate vicinity of your QSR. Most people will not be willing to travel across town for a special deal but will be more likely to pop in if they are just next door.
This means you can increase the relevancy of your marketing message and thereby increase the chances of conversion into sales.
Consumers want to be informed of restaurants deals and promotions. 9 out of 10 diners have looked for a restaurant deal at least once and 52% of millennials say they want to use their phones to access special deals.
However, 60% of consumers have two or fewer brand retail apps downloaded so QSR marketers need to find ways to expand their reach through partner apps. This is where a location-based advertising platform comes into play.
Location-based advertising platforms operate thanks to a network of partner apps. This enables you to both gather both behavioral insights into your audience’s purchasing habits and to target them in a relevant and timely manner via mobile ads with deals that they want to access.
We’ve already briefly discussed how you can use consumer insights to better target your marketing messages and promotions. However gaining a thorough understanding of your audience’s behavioral habits (not just their dining out preferences) can help inform your marketing approach at a national level.
For example, if you can see in a particular state that consumers often visit your QSRs after attending a sports event you could then consider launching a campaign which features relevant local sports stars or create a special post-game promotion.
As well as in-depth consumer insights, you can also get a more robust understanding of your brand’s position compared to your competitors. This will both help inform you increase the effectiveness of your local marketing tactics but may also help make strategy decisions about the positioning of future QSRs in order to close out a particular market.
So there you have it, 5 great reasons why QSR marketers should definitely be investigating how location-based advertising can help boost their acquisition strategies. Consumers have short attention spans and are barraged by information everyday - location-based advertising is one more way you could stay ahead of your competitors.
To find out how Teemo could help you kickstart your location-based ad strategy, request your demo today.