Discovering The Distance-to-Discount Ratio

When it comes to deals, the bigger the discount, the further people will travel. While this may sound obvious, mobile advertising company JiWire has some numbers to back it up. JiWire is releasing a new study today that evaluates consumers; behavior when it comes to location-based deals and discounts.

In a survey of more than 3,000 respondents, JiWire’s results show that the greater the discount, the further people will travel to redeem a coupon or promotion. For example, for a $100 item, 55 percent of consumers are willing to travel 15 minutes for a 10 percent discount. But 40 percent of respondents will travel an hour for a 50 percent discount, and 28 percent will travel two hours for a 75 percent discount. Essentially, higher discounts motivate consumers to travel farther.  But there are limits to how far people will go.  Even if you give away a product worth $100 for free, only 31 percent of people would travel more than two hours to get it.

While many location-based promotions generally target customers in an immediate vicinity or neighborhood, JiWire’s data indicates that the opportunity to reach new customers goes far beyond the check-in and can draw new customers, even from more than an hour away, into stores,

This isn’t surprising data but it does suggest that location-based deals can be targeted to users beyond just an immediate vicinity.