Disclaimer
This simulation is an illustrative example based on hypothetical data to demonstrate the potential effectiveness of Linkyfi's location-based services. The actual results will depend on the specific circumstances of the shopping mall and its tenants.
Scenario
In this article, we shine a spotlight on the crème de la crème of Linkyfi's features – its advanced location-based services. The scenario we'll explore involves a shopping mall employing Linkyfi, a marketing WiFi system, to optimize three aspects that generate revenue from their tenants:
- leaflet distribution
- digital signage placement
- proximity marketing campaigns
Who is The Real Customer?
Before we proceed, it is crucial to note that the actual customers of the shopping mall are not the end-consumers, but the tenants. They are the ones who pay for space and the marketing services like leaflet distribution, digital signage ads. The shopping mall can provide higher value to tenants and improve its profitability by optimizing these services using WiFi marketing product - Linkyfi and adding new ones like WiFi-based proximity marketing campaigns.
Initial Condition
In this simulation, the shopping mall employs three personnel for leaflet distribution, each earning €1,000 per month, totalling to €3,000 monthly. Each month, they distribute about 120,000 leaflets. This equates to a cost of €0.025 per leaflet (€3,000/120,000).
For digital signage and WiFi-based proximity marketing, the shopping mall has ten digital screens placed around the venue and offers proximity marketing services to its tenants.
The Linkyfi Solution
Implementing Linkyfi, the mall gathers valuable data about customer behavior, high traffic areas, and peak hours based on the WiFi RSSI from guests' devices. For this simulation, high footfall areas could include the food court, popular retail outlets, and the entertainment zone, with peak traffic from 2 PM to 7 PM on weekdays and 11 AM to 4 PM on weekends.
Anticipated Results
Scenario 1: Leaflet Distribution
Focusing on leaflet distribution during peak hours in high traffic areas, the mall could potentially increase distribution by 60% without increasing labor costs, distributing about 192,000 leaflets per month. The cost per leaflet would drop to approximately €0.0156 (€3,000/192,000), improving efficiency by 37.6%.
Scenario 2: Digital Signage Placement
Data from Linkyfi can guide the optimal placement of digital signage to maximize views. Assuming each digital signage ad costs €500 per month per tenant, improved visibility due to strategic placement could raise the value, enabling the mall to charge €600, a 20% increase.
Scenario 3: WiFi-Based Proximity Marketing
The mall can offer a new type of marketing campaign - WiFi-based proximity marketing. Leveraging the knowledge of where and when people congregate allows the mall to deliver highly effective, targeted proximity marketing campaigns. Suppose the mall charges each participating tenant $1,000 per month for these new marketing opportunities.
Projected ROI
Assuming the mall has 100 tenants, 10% of which opt for the new proximity marketing service, and Linkyfi costs $20,000 per year to implement and maintain:
- Improved efficiency in leaflet distribution could save around €1,800 annually.
- The 20 tenants using digital signage could generate an additional $4,000 per month, or $48,000 annually.
- The introduction of proximity marketing services to 10 tenants could generate $10,000 per month, or $120,000 annually.
In total, the mall could see an additional revenue of $168,800 per year. After deducting the Linkyfi costs, the net gain would be $148,800. This signifies an ROI of approximately 744%, demonstrating the remarkable value of the crème de la crème of Linkyfi's capabilities, its location-based services, in optimizing the shopping mall's revenue.
Want to see a real example?
Checkout our video about a real-shopping mall:
https://www.youtube.com/watch?v=O2LicT9FfH0
Or read case-study:
https://www.avsystem.com/media/avssite/pdf/Linkyfi_CaseStudy_Posnania_ShoppingMall.pdf