Dunkin’ Geofences The Competitors' Customers

by Tim Sloane 0

An interesting article in Mobile Commerce Daily identified how Dunkin’ Donuts, using geofencing and YP’s capabilities, delivered ads and mobile offers to prospects that were frequenting competitor’s location or a convenience store or even another Dunkin’ Donuts in the area. According to the article, they had the ability go back 30 days to identify mobile users in the Providence, R.I. area, where the test was conducted.

The campaign’s methodology was described as the following taking place in the article:

The campaign ran during the first quarter of 2014, delivering banner ads to targeted devices that ran in a recipient’s favorite apps or mobile Web sites. The banner ads featured one of several different offers, including $1 off a cup of coffee, $2 off a coffee plus sandwich meal.

Once users clicked on the banner ad, they had the opportunity to take that coupon and walk into a Dunkin’ Donuts and redeem the coupon. Or, they could save the coupon to their phone to redeem at a later date.

Users could also find the nearest Dunkin’ Donuts location and click to call Dunkin’ Donuts. YP uses real-time bidding technology to build its behavioral profiles, looking at billions of impressions that come through mobile to identify anonymous Android and Apple device IDs. Then it logs where else it sees that ID, using GPS, Wi-Fi and IP data to determine the location of the ID.

This information is paired with YP’s map of points of interests throughout the United States. For example, it knows where every Dunkin’ Donuts in America is. These locations have a geofence placed around them so it can determine when device IDs go to these points of interest.

Top of the line results were given.

“The results were promising, with 36 percent of those who clicked on the offer taking some secondary action, 18 percent of these saving the coupon and 3.6 percent of secondary actions resulting in a redeemed coupon,” said Luke Edson, vice president of national markets at YP. “If you were loyal to Dunkin Donuts, we saw pretty solid results. If you were loyal to the competition, we didn’t see that great.

“If you have a location history that was sometimes you went to Dunkin’, sometimes you went to Starbucks, sometimes you went to McDonald’s, with the right offer at the right time, that was the group that saved with the highest percentages,” he added. ‘That was the win for Dunkin’.

Overview by Tim Sloane, Vice-President, Payments Innovation

To read the full story, go to Mobile Commerce Daily.

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