RadioShack Utilizing Single Touch Mobile Ad System To Increase In-Store Traffic
Technology-based mobile media solutions provider, Single Touch Systems Inc., will be supplying RadioShack with a new mobile marketing solution to bring customers back in-store.
Through partnership with AT&T, the company contracted with RadioShack for use of the location-based mobile marketing advertising technology “FollowMe.” The marketing campaign delivers mobile offers and advertisement for in-store specials, connecting to iOS and Android users located within closest range to one of the thirty nearest, newly revamped stores. The new marketing solution allows for companies, such as RadioShack, to take advantage of the increase in mobile expansion, sending out timely, effective mobile messages and advertisements to improve store growth.
RadioShack will send out ads in real time manner to customers based on features, including interests and locations. The mobile technology will roll out more than 8 million impressions in a two-week period. James Orsini, President and CEO of Single Touch states, “We are excited that our mobile ad tech product will be used by RadioShack as they continue their re-branding efforts that began earlier this year.”
RadioShack plans on closing up to 1,100 underperforming stores over the course of the year, focusing on improving and investing in the re-designed brand, operations, and in-store experience for the remaining 4,000 stores across the U.S. Their strategy is to improve its appeal to younger customers while staying true to traditional customers. The company has been experiencing a decline in sales over the past few years as e-commerce sales of electronics explodes. RadioShack generates half its revenue from cellphone sales, tablets, and other major electronic devices — products that are now available through the convenience of online shopping with other companies and through countless brick-and-mortar stores, including Walmart, Verizon, and other stores potentially offering even better deals than RadioShack.
With total net sales in fiscal year 2013 down by 8.8 percent at $3.43 billion compared to $3.83 billion of prior year, and comparable store sales decreased by 19 percent due to weak in-store traffic and poor performance in mobility services for fourth quarter, the “FollowMe” mobile marketing solution is RadioShack’s effort to revamp in-store performance.