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Date: Sunday, December 5, 2004 GOALS MECHANICS RESULTS This Case Study comes from MMA Global.
In a new promotion targeted mostly to young adults, a customer can use their cell phone to send a text message code (sending the word "McFlurry" to 73260) and receive an electronic coupon redeemable for a free McFlurry dessert at participating McDonald's (NYSE: MCD) restaurants. The idea comes from the McDonald's Operators' Association of Southern California, comprised of more than 600 franchised and company-owned restaurants in the counties of Los Angeles, Orange, Riverside, San Bernardino and Ventura. "As a leader in the food industry, McDonald's continues to provide customers choices and offers that fit in with their lifestyles," Clayton Paschen III, president of the MOASC, said in a statement. This Case Study comes from
Restaurant - A restaurant owner places table stands or hands out cards with information about how to join and receive a free dessert by joining the VIP customer club. The restaurant sends a marketing message using our simple online form with a special food or drink offer, which can be used at a certain time when the restaurant knows that business is slow. This creates an immediate boost in sales.
Video Rental Store - A video rental store advertises the system and as reward for joining customers get the next rental free of charge by showing the confirmation message they have received. The store sends out information about new releases to customers once or twice a week at 4 pm to remind them to pick up the videos on the way home from work. Clothing Store - A clothing store offers customers 10% off at the counter for customers who join the system. The system is also advertised on store receipts. The store sends marketing messages to customers just before lunch time. This results in a significant sales increase. The store informs customers about special events and extra discounts for members. Hotel Chain - Hotel group successfully used SMS messaging to increase guest numbers to its hotels and build customer loyalty. The hotel sent out important marketing messages such as specials and promotions directly to its members’ mobile handsets. SMS allowed the hotel to get the messages out instantly and at the most appropriate time of day. The use of SMS as a direct marketing tool resulted in a 10-25% uptake of offers sent out by the hotel and proved to be an integral part its direct marketing and loyalty strategy. NEWS The solution is low-tech, but it has produced strong results with early marketers. Also, the new offering gives Cox a toehold in mobile marketing as advertisers explore this nascent medium.
Mobile ad spending will grow from $1.6 billion in 2008 to $4.8 billion in 2011, according to eMarketer. “We are looking full circle at what advertising can do,” said Peter Schultz, director of advanced advertising at Cox Media. “You have a 30-second spot, you layer with other technology like VOD and long-form ads, and interactive overlays and request for information, but there is still no force driving them to the final sale.”
Mr. Schultz said he hopes the mobile connection can close that loop. “We are making it relevant to you and sending the offer to your cell phone to drive you to the store,” he said.
Cox first tested the mobile tie-in in September with gourmet pizza chain Vocelli in northern Virginia. The commercials included a tag letting consumers know they could send a text message to receive a coupon for money off a pizza. If a consumer sent in that first message, Cox then sent back a reply asking if they wanted to opt-in to the Vocelli mobile club and receive additional discounts, Mr. Schultz said.
With the Vocelli campaign, Cox ran about 100 spots per week across various cable channels. Based on Nielsen ratings, Mr. Schultz estimates about 0.5% of viewers who saw the ads requested a coupon. That number is higher than most Internet ad click-through rates.
Of those who requested the coupon, 56% went on to redeem the coupon at a store and 32% chose to opt in to the Vocelli mobile club.
While text messaging is a seemingly simple entry into mobile marketing, Cox needed the partnership with a Mobile Marketing Company to manage the campaign, the database and compliance with marketing guidelines.
The mobile capability builds on a handful of experiments Cox conducted in the fall in northern Virginia, San Diego, New England and Las Vegas to loop in text messaging to its TV ads. Cox advertisers can include a tag in their spots urging consumers to send a text message to receive a special offer, tailored to each advertiser's needs. That's similar to how consumers votoe for "American Idol" contestants.
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Southern California McDonald's restaurants are reaching out to customers through their cell phones.  |
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