Advertising - North Face Campaign Sends Texts When Shoppers Near Stores - NYTimes.com

Location based coupons have been discussed as the holy grail of advertising for years and the technology is finally catching up with the discussion. But really, I once again have to ask the question, how many of your friends outside of the advertising industry have asked to have their phone ping them to deliver coupons based on where they're standing? And once again, we're moving the interruption model from TV/radio into the physical location and talking about it being the next, big thing in advertising.

If I'm already a fan of your store, do I need this kind of incentive to come in? And, if I'm not a fan of your store, how would I sign up in the first place to receive this promotion?

Now, as you know from reading this blog and my previous blog, I'm a big fan of what the cell phone can deliver into the physical location. I think that there are many ways to use mobile to create a better in-store experience. But I'm not sure that beaming coupons just because I'm working past the store is the thing that will drive people to the store.

There are two very simple steps that will create a better engagement with their target audiences:

1. Create a better store experience. I'll check the North Face store the next time I'm in Soho to see how they do, but every time I go into REI, there are always people shopping there. But the last time I went to the North Face store in Soho, it was kind of a bland, shopping experience. You can buy North Face products in lots of places, so what's the compelling experience that will drive me into their store?

   Look at what the Burton store does (it's just around the corner from the North Face store) or the REI stores do to create a compelling experience. Very knowledgeable staff who lives to snowboard. Weekly bus tours to a ski resort. A real sense of community. I paid to become a member of REI because I believed that it was a good value proposition. I go to a store like that because I really feel that they know their stuff. I'm not sure I get that feeling in a North Face store.

2. Deliver information that I really need. How long do you think people will put up with non-stop interruptions of our cell phones telling us there's a sale at the store we're walking past? Do you want that?

   But take a look at this:

   The North Face plans to eventually send branded texts when people arrive at a hiking trail or mountain to alert them about weather conditions or logistics for a ski competition, for example. It also created an iPhone app called the North Face Snow Report that provides snow conditions and trail maps.

   Now, this provides relevant information that adds value to my experience and might lead me to go back to the North Face store. I'm a big fan of having brands bring utility to my life experiences.

The challenge with a new tool like this is that if it's delivered badly, it'll make it harder for brands to use it again later. And if there's a backlash from the consumer, then it will make it that much harder to create acceptable campaigns using mobile in the future.

Hopefully we'll look for a better way to engage me then pinging me as I walk past your store with a coupon.

From the article:

LIKE many retailers, the North Face has been having trouble luring shoppers into its stores. The company, which sells outdoor apparel and gear, is about to try a new tactic: sending people text messages as soon as they get near a store.

Advertisers have long been intrigued by the promise of cellphones, because they live in people’s pockets and send signals about shoppers’ locations. The dream has been to send people ads tailored to their location, like a coupon for a cappuccino when passing a coffee shop.

Advertising - North Face Campaign Sends Texts When Shoppers Near Stores - NYTimes.com.