A leading specialty arts and crafts retailer is performing location-based marketing in its stores.
Seeking to drive more revenue in its stores and increase the usability of its mobile app for customers, Joann sought to make it easier for customers to locate products through the app and make additional purchases while in a store. Specifically, the retailer wanted to find a way to drive larger basket sizes while customers were shopping in-store, even if the item they were looking for was only available online.
To accomplish this, Joann explored both developing an in-house location solution and pursuing an out-of-the-box geofencing platform. Building a location solution in-house ultimately proved prohibitive because of the development effort and technology investment required.
After evaluating third-party geofencing solutions, Joann decided to implement Radar’s geofencing platform. When a customer engages with the app, the Radar solution checks their location to see if they are in a Joann store geofence. If the user is inside a Joann geofence, a free shipping coupon is displayed, encouraging the customer to place an online order if the item they’re searching for isn’t available in the store.
This incentivizes customers to place their order through the Joann app instead of leaving the store to look for the item at a competitor. Not only does it help Joann increase larger basket sizes, it also gives customers a better shopping experience.
Joann’s in-store mode gives customers a reason to opt-in to location sharing. In fact, 89% of app users opted to share their location in exchange for savings and a more seamless way to purchase the items they need. These compelling location-aware experiences also drive app engagement — these users are 33x more engaged than users who have not granted location permissions.
As a direct result of the new in-store coupon offers powered by Radar’s geofences, Joann generated more than 25,000 incremental orders with a return on investment of 718%. With a 7x ROI in 2021, Joann’s use of Radar far exceeded expectations. Joann’s success provides insight into the power of location-aware experiences for retailers and the experiences they can provide to their customers.
Other ways Joann employs store-based geofencing includes in support of its curbside pickup program. In the parking lot, customers can open geofencing on their mobile device, and an associate will get a ping on their handheld. They don’t need to tell the retailer they’ve arrived.
[Read more: Joann unwraps streamlined BOPIS, curbside in time for holidays]
Using Radar to provide location-aware experiences and location-based marketing to customers shopping in-store through in-app offers has resulted in more than 25,000 incremental orders annually with ROI of 718%, according to Joann. These results have exceeded the retailer’s expectations.
Moving forward, Joann plans to continue to use location-aware experiences and marketing strategies supported by the Radar platform to increase order volumes and in-store sales.
“We needed to implement an in-store mode and location-based marketing solution that would support our digital strategy to reach customers in-store,” said Ryan Davis, VP of marketing, Joann. “Radar has been instrumental in supporting our team with the tools to produce winning marketing strategies through location-aware experiences and to increase revenue through in-app engagement and purchases.”
Joann operates more than 850 stores across 49 states and an e-commerce business.