McDonald’s have been working to become the first fast food chain to trial beacons and create personalised customer experiences whilst increasing sales.
Customers that visited one of the select 26 Mcdonald’s restaurants located in Columbus, Georgia, gained access to exclusive offers directly from their mobile device. Jack Pezold, a McDonald’s franchisee of 40 years, stated that,”everyone is looking at their phones, millennials especially, and that’s where we’ve decided to engage,” The four-week trial offered special deals on McChicken Sandwiches and 10 piece Chicken McNuggets. The beacon triggered app was also used to enhance customer interactivity as customers were able to choose the type of messages and deals they wanted to receive. They could also opt out from receiving any beacon triggered notifications.
Proximity Marketing increases sales of up to 8%
This iBeacon campaign increased McChicken Sandwich sales by 8% and Chicken McNuggets increased by 7.5%, which are great sales. CEO of Piper, Robert Hanczor stated, “In the [fast food world], these are big numbers”. This may be because fast food restaurants are often seen as places where people are in a hurry to order their food. And with the help of the app, Mcdonald’s customers who visited during the trial period were able to enjoy a new experience. Hanczor also continued “Consumers won’t know these small radio devices are responsible for the content they’re receiving…but they’ll appreciate retailers are connecting with them with relevant information they can act upon.”
Another factor that made this a successful trial is that valuable data regarding customer preferences was obtained. This was due to the app prompting Mcdonald’s customers to complete a survey at some point of their visit.
Retailers using proximity marketing have a better understanding of customer behaviour as they gain an insight on customer journeys within the store, the frequency of their visits and the length of time they spend inside the store. With access to such data, retailers can go on to develop loyalty schemes which, in turn, increases sales. These are all essential pieces of information that iBeacon technology can provide.