O2 claims to have generated revenues of more than £385,000 for gym chain Fitness First using its location-based marketing programme.
The You Are Here initiative delivered SMS messages offering a free two-day pass and details of the nearest Fitness First branch to O2 customers who entered pre-defined areas, called “geo-fences”, surrounding a particular gym branch.
O2 claims the campaign resulted in 1,121 people signing up for 4-month and 12-month contracts at Fitness First, representing a return on investment of 2,690:1 for the firm.
Single Londoners between 18 and 35 were the most responsive to the campaign, according to O2.
O2 Media managing director Shaun Gregory 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.”
In May, the Co-op became the first supermarket chain to sign up for the You Are Here scheme, which has 2 million O2 customers signed up. As soon as a target customer enters the the geo-fence they automatically receive an SMS or MMS (multimedia messaging service) with a suitable offer.
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