Shopping centers are valuable ecosystems for location-based mobile marketing

By December 07, 2011

DDR, a shopping center owner developed a new marketing tool that leverages location-based retail offers and work on almost any phone to drive foot traffic to its tenants’ stores. Similar programs have proved popular with customers and attracted new visitors to stores.


Shopping center owner DDR has teamed-up with geo-fencing mobile marketing pioneer Placecast to launch a program that is designed to drive traffic to its various tenants. While most geo-sensitive marketing strategies are geared towards smartphones, the majority of consumers can best be leveraged by more universal phone features. Reflecting that consideration, ValuText uses “geo-fences,” designated virtual areas surrounding DDR assets that can be utilized by 92% of US mobile phones. When a user opts into this program, by passing a store’s geo-fence, the phone is sent a text message with a deal for that particular store.

ValuText drives foot traffic into shopping center tenants’ retail store

The ValuText program aims to drive customer traffic inside DDR shopping centers’ retailers, by offering them real-time deals, thus helping out the retailers and adding value for customers. "DDR is committed to ensuring that our retailers have every tool they need to succeed," said John S. Kokinchak, senior executive vice president and chief administrative officer of DDR. "ValuText helps our tenants by giving potential customers access to real-time, location-based offers, thereby driving traffic to their stores". Of course, such a program is also meant to make DDR more competitive, both for customers and potential tenants. 

"Retail shopping centers are primed for location-based mobile offers" 

As Kathryn Koegel of Primary Impact Research explained, shopping centers offer great geo-fencing marketing opportunities for retailers: customers are in the mood to shop when they walk in, and tenants can benefit from their neighbors’ customers. Geo-fencing has been used through other programs by AT&T and other brands, and has generated positive consumer feedback. Nearly 3/4 of participants like that their location is used to generate retail offers, and over half have acted on an offer that they received. A fair amount of follow through results from this strategy - “22% of shoppers in similar programs reported making purchases at participating retailers based on receiving a location-based alert.” It is effective for gaining new customers and making sure that current ones come in as well - “for nearly 50% of shoppers, the retail visit prompted by the text was unplanned; for 19% of those surveyed, the alert served as a reminder.”

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