Brief:

• More than two-thirds (69%) of fast-food marketers plan to increase their use of location data over the next two years, per research commissioned by Cuebiq and shared with Mobile Marketer. Loyalty programs will drive the adoption of location intelligence, as three in four marketers said that enhancing loyalty programs is the "most likely" use case for location data in the next two years.
• More than half (58%) of quick-service restaurant (QSR) respondents said they're likely to use location data for competitive intelligence, while 56% said they're in the process of evaluating or already using that information.
• More than two-thirds (69%) of QSR marketers said location is key to understanding why and how customers interact with businesses, with 62% saying this information has already been useful in improving their companies' marketing performance. The findings are based on a proprietary study completed by 451 Research, an information technology research and advisory company.

Insight:

Mobile technology is gradually transforming the fast-food industry as restaurant chains add location data to the information they already collect about customers through mobile apps, online ordering, mobile wallet payments and point-of-sale systems. QSRs are working to organize the data to create a singular view of each customer group and develop highly targeted campaigns and offers that resonate better with potential customers. Starbucks, Dunkin' Donuts and Subway are among the QSR brands that are integrating location data into their customer loyalty programs with mobile apps.

Mobile marketing is especially relevant for QSR restaurants as Americans are continually looking at their phones and are found to frequently make impulse decisions when deciding to eat out. Adults in the U.S. check their phones an average of 50 times a day, or as many as 80 times while on vacation, according to separate studies. Meanwhile, 83% of people pick a dining location within three hours of a meal, and 57% make the decision within one hour, per data collected by Facebook. This "point of hunger" is a prime opportunity for restaurants to gain visibility through mobile search and location data-powered targeting. Advertising remains the most significant uses of mobile-driven location intelligence, including the practice of "conquesting," like sending McDonald's ads to people who walk into a Burger King, for example, Cuebiq said last month.

Detailed knowledge of competitor interactions and customer behavior provided by location information will drive the next generation of loyalty programs that extends beyond simply offering points based on a purchase to accumulate and redeem for a prize. Knowledge of what other services customers value provides an underpinning for effective loyalty programs that can vary by locale and merge with co-branding, shopper marketing and other partnership arrangements, per Cuebiq. This will become increasingly important as more of the Generation Z cohort — which is less likely to join customer loyalty programs than past generations — become active consumers as they approach adulthood.