Mobile Location Marketing for Quick Service Restaurants
Around 17 percent of U.S. consumers dine out at quick-service restaurants at least once a month and approximately 20 percent visit them at least once a week.
In a survey compiled by the National Center for Health Statistics shows between 2013 and 2016, more than 36 percent of adults – or more than 1 in 3 – consume fast food on a given day.
The fast food and quick service restaurant space is highly competitive, all vying for the attention and loyalty of these consumers.
Check out these insights about the typical fast food consumer:
- Findings from the survey compiled by the National Center for Health Statistics also showed fast food consumption decreased with age. Forty-five percent of adults ages 20 to 39 ate fast food, while only 24 percent of adults over 60 had fast food as a meal or snack.
- Men tend to eat more fast food than women and non-Hispanic black adults consumed more fast food (42 percent) compared to other races.
- The study’s three lowest groups included individuals with annual incomes below $42,800; the middle four groups were those with incomes of $42,800 to $105,000; and the top three groups were individuals with incomes $105,000 and higher.
- 79 percent of respondents, across all income brackets, consumed fast food at least once in the given past week.
- 23 percent ate three or more fast food meals in that time period.
- 81 percent in the lowest income bracket ate fast food at least once during the study period, compared with 84 percent of people in the middle-income bracket and 74 percent in the highest.
- Forbes reports that millennials spend 44% of their money on food and in USDA’s Economic Research Service report, 62 percent of millennials reported purchasing prepared deli food, carry-out, delivery or fast food within the last seven days, while only 47 percent of traditionalists and 56 percent of Gen X-ers did so.
While some consumers frequent the same location on a regular basis, others may visit because it was the most convenient. To better understand these trends, attract new customers, and boost loyalty, quick service restaurants are increasingly investing in location marketing solutions.
According to recent research:
- 69% of QSRs plan to boost location marketing for loyalty programs.
- More than half (58%) of quick-service restaurant (QSR) respondents said they’re likely to use location data for competitive intelligence, while 56% said they’re in the process of evaluating or already using that information.
- More than two-thirds (69%) of QSR marketers said location is key to understanding why and how customers interact with businesses, with 62% saying this information has already been useful in improving their companies’ marketing performance. (https://www.mobilemarketer.com/news/survey-69-of-qsrs-plan-to-boost-location-marketing/526831/)
Location data is transforming the quick service industry and chains are adding this information to the data they already collect about customers. Brands can collect location data from their own locations or competitive locations to further enhance competitive knowledge, better understand the traits of their own customer base, or to enhance loyalty programs.
According to Mobile Marketer, Starbucks, Dunkin’ Donuts and Subway are among the QSR brands that are integrating location data into their customer loyalty programs with mobile apps.
Enhance Loyalty Programs with Location Data
More than 65% internet users are members of food service loyalty programs (Oracle). According to eMarketer, 46% of consumers said that loyalty programs would entice them to visit restaurants more often. Through insights gleaned from location data, QSR brands can use this new source of consumer information to optimize and refine their loyalty programs. For example, what other fast food brands is the consumer visiting?
Gain Competitive Insights
QSR brands can also use location data to monitor their competitors. What does the typical consumer of the competitive brand look like? How often do they go to the competitor? Does the consumer also visit other QSR brands? Using this intelligence, brands can identify the most and least loyal consumers of their competitors, and then target the least loyal — or most vulnerable — segment for competitive conquesting.
Types of Location Based Marketing
Beacon technology allows brands to pinpoint where a customer is at any given moment, and then send them push notifications with coupons, promotions or other targeted offers.
Geo-targeting services allow advertisers to allocate search campaign resources at a local level. With geo-targeting options available today, audiences can be targeted at the country, state, city, and ZIP code level to determine the best potential ad placements.
As mobile capabilities and technologies become even more advanced, marketers now have the ability to identify actual consumers by their mobile devices. Quick service brands have access to numerous technologies to target consumers by market segments and devices, but very little technology has traditionally been available to target the actual people connected to these devices.
V12’s purchase-intent solution, V12 Signals, allows brands to reach consumers based on store visit behavior.
QSR brands are provided with daily consumer audiences who have recently visited their own location or a competitor’s restaurant. Each lead includes name and address and is often enhanced with additional demographic and contact data.