Check-In Based Deals Really Do Work

ScreenHunter_05 Sep. 02 12.45

Techcrunch reports today that a check-in based deal for Virgin America, run by Loopt, resulted in Virgin’s fifth-highest revenue day ever.

Two-for-one tickets from California cities to Cancun or Los Cabos were offered during a four-hour period to anyone who checked in at either SFO or LAX airports, or designated taco trucks in both cities. Thirteen hundred people checked in to one SF taco truck and 80 percent bought tickets.

These are amazing conversion rates and should push the ball forward for general advertiser demand and awareness for location-based mobile offers. The ball is already moving, but it will continue to accelerate as success stories like this come to light.

Loopt CEO Sam Altman espoused many of these ideas during his Keynote at our March Marketplaces conference, and it’s good to see one come to fruition. Also, don’t write off Loopt as the blogosphere focuses on the newest shiniest thing.  It continues to grow, innovate and bring in real revenues — in ways that outshine media darling Foursquare.

This Post Has 3 Comments

  1. Perry

    Mike, while I agree with your conclusion, I really don’t feel this event provides any valid evidence. Just about anything you asked consumers to do to get a free ticket to Cabo would have worked for a strong brand like Virgin. I think the value proposition of check-in/Loopt in this example is really just a coincidence not a proof point for the power of check-in.

  2. Alan

    Agree with Perry–Isn’t Loopt (Foursquare, Gowalla, et al) simply providing a convenient (digital) redemption process for the Coupon? Virgin would have received equal (perhaps far larger scale) if they asked consumers to call a 1-800 # or send an email to confirm. Direct Response is Direct Response, after all.

  3. Mike Boland

    Point well taken from both Perry and Alan. It was the Virgin name that moved those tickets. It will also be virgin’s planes that fly them.

    But snarkiness aside, you’re point is something i didn’t think of in this situation. The actionable local and mobile media we’re talking about in this situation is dependent upon the brand — the carrot.

    Yes you could see Loopt as the distribution mechanism here. But everyone is experimenting in “deals”. The point that sticks out for me is that Altman & co talked virgin into broadening horizons (bad pun) beyond the advertising blinders/comfort blanket that is all too common among brands (and their agencies unfortunately).

    I’m not convinced virgin wouldn’t have done that on their own and Loopt deserves the credit for that, and some other cool stuff. Thanks for reading and keep the comments flowing.

Leave a Reply

Your email address will not be published. Required fields are marked *

2 × 5 =