Evaluate the ROI of a Location-based Marketing Offer
The most important thing about any marketing campaign is that you get a return on your investment (ROI). In the world of location-based marketing and social media some of the benefits can be less tangible than that of say an e-mail or search marketing campaign.
Less-tangible, longer-term benefits include things like share of conversation, lifetime value, customer loyalty (as measured by indicators like Net Promoter Score), and customer engagement.
Benefits that you can measure, including increase in traffic, increase in reach and frequency of your message, increase in sales and share of wallet, can be explicitly linked to location-based marketing. However, it does require the discipline of getting back to marketing 101 principles. This means keeping close track of all the variables of the campaign and being careful to keep them as limited as possible. For instance,
Do pre- and post- testing.
If you’re looking to drive foot traffic, measure how much foot traffic comes into your store before you make an offer on an LBS and then after.
A/B test with locations, offers, or time periods.
A/B testing involves testing one element of a campaign (for instance, an offer) versus another while keeping all other elements the same. For example, in an e-mail campaign, you might randomly split a list of 10,000 people in half and offer one set a 20 percent discount and the other a free pen. This helps you determine which elements of your campaign are the most effective.
For location-based marketing, create a test where you offer a free item in one location or market and then a 20 percent discount in another. (The free item is your A, and the 20 percent discount is your B.) If you use an offer management tool like Geotoko, performing an A/B test across venues, or platforms is immeasurably easier.
Watch the market.
Keep an eye on market factors, holidays, and other external factors that can have an impact.
Focus on offers that might be larger or less scalable than normal to get some initial traction with your location-based marketing program. Binding your offers by time period or with the age-old “while supplies last” can help protect you from going bankrupt.