Your Location Marketing Playbook for Off-Price Retail
There’s no question that off-price clothing retailers are becoming more popular with each passing year. With a clear price advantage, off-price clothing account for 75% of all apparel purchases across retail channels and are expected to see an incremental sales increase of $19 billion by the year 2021.
In the last year alone, our Retail Foot Traffic report showed that off-price retailers, such as Marshalls and Old Navy saw the biggest gains in share of foot traffic.
So how can retailers like these capitalize on the growing demand for reduced-price apparel? The answer is simple: Location marketing. Location data allows marketers to analyze where their off-price shoppers spend their time, so you can encourage them to shop in-store right before they’re ready to buy.
Promote a Grand Opening
One of the most valuable marketing moments for retailers is the grand opening of a new location. This is your chance to expose shoppers to your store and start building their long-term relationship with your brand.
To leverage location targeting for this type of promotion, we recommend targeting the customer types that frequent your other locations, along with the shoppers who visit competitors in the area. This is a great way to create awareness of your store opening and steal market share. Use GroundTruth’s scale to get broad yet targeted messaging to customers in the area around your store. Neighborhood targeting can also be utilized to encourage people with a high visitation affinity to your store to switch to your brand.
Steal Competitor Share
It’s important to understand who your competitors’ customers are so you can serve them ads tailored to their location — but this strategy is also crucial when your objective is to reach your competitors’ customers. Using conquesting messaging in conjunction with Location-based Audiences can help you capture your share of off-price clothing shoppers. Make sure to add ‘dynamic distance’ to your creative so your shopper knows just how close you are.
Because your ultimate goal is to drive traffic to your stores, it’s important to use an ad model that focuses on performance. Cost Per Visit is your answer. As the first offline guaranteed performance model, Cost Per Visit removes the guesswork from traditional media buying and allows advertisers to pay only for 1-to-1 visits.
Locate New Customers and Regain Lapsed Ones
With so many consumers eager to buy clothing at a discounted price, there are countless potential customers for retailers to target. Aside from driving overall foot traffic, Cost Per Visit is an efficient way to gain new customers too — particularly during key sales periods like holidays.
Deliver relevant messaging, pay only when a customer visits your store, and retarget new customers to keep them coming back. This way you can ensure you’ve got a steady flow of in-store shoppers while making the most of your advertising budget.
Interested in learning more about how location targeting can help your retail store? Contact us for additional strategies, foot traffic data, and trends.
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