O2 Media’s recent You Are Here campaign for Fitness First generated more than £385,000 in revenue for Fitness First. When viewed in relation to the overall cost of the campaign, this revenue growth equates to a return on investment of 2,690%.
Fitness First targeted O2 customers with location-based messages offering a free two-day pass and details of the nearest club. This resulted in 1,121 recipients signing up as new members of Fitness First on four month and 12 month contracts.
With average membership costing just under £300 per year, this uptake generated increased revenue of £385,000.
The best responding target audience was 18 to 35-year-old smart phone using single Londoners, who enjoy engaging through social media.
Shaun Gregory, Managing Director of O2 Media, said: “The evidence for using location-based marketing is really beginning to mount. These figures show that it is not only effective at targeting the right consumers at the right time, but also extremely effective at driving new revenue streams and huge ROI.”
You are Here uses ‘geo-fences’ which are set up around a particular location, in this case a Fitness First health club and gym. As soon as a target customer enters the area marked by the ‘geo fence’ they automatically receive a SMS or MMS with the offer. To redeem the offer, they simply show the message at the nearest Fitness First club.
Unlike other location-based services which require customers to log-in to retrieve deals and offers, O2’s You are Here service drives value and consideration for
brands by pushing messages to target, opted-in customers in specific areas. It is also completely handset agnostic meaning that any customer can benefit from the offer regardless of whether or not they have a smartphone.