Location-based Campaign KPI: Spend per Visit
Using location-based marketing to get your customers to come into your business is a good thing. Encouraging them to buy more every time they come in is even better.
This is traditionally called increasing your share of wallet. Sometimes it entails talking customers out of spending dollars at a competitor’s business and encouraging them to spend it with you. (Starbucks did this when research showed that people weren’t buying its pastries and food items, so the coffee chain began locally sourcing food items, which improved freshness and quality).
You can also increase share of wallet by borrowing from other discretionary spending areas. For example, a grocery store might offer prepared meals that some customers might purchase in lieu of dining out — a cost-cutting measure for the customer and a revenue increase for the grocery store.
Grocery stores could help steer this process by creating offers that are time sensitive. For example, anyone checking into the store after 6 PM gets a get a free prepared meal offer with any $20 purchase.
An easy way to increase the money spent during a customer visit is to upsell complementary items to customers. For examples, a stationary store can sell pen refills to anyone buying pens. You can use location-based marketing to suggest these types of purchase by leaving a tip or maybe uploading pictures of your pen refill section so that customers know that you have them.
You can also extend offers that most customers are likely to upsize. For example, a museum can offer a $5 item in the gift shop with a foursquare check-in and purchase of a full-priced ticket. Most likely customers will upsize the $5 item (buy a more expensive item) or buy an additional item.