O2, the second-biggest mobile phone network in the UK, has revealed that a mobile marketing campaign has helped net health chainFitness Firstwell over £300,000 in revenue.

The campaign, known as ‘You are here’, uses geo-fencing technology, with mobile phone networks used to identify a user’s approximate position. This data is then cross-referenced with the location of a Fitness First gym which then sends an SMS to a user’s handset when they are nearby.

Fitness First targeted O2 customers offering a free two-day pass, with details of the nearest club. This resulted in over 1,100 recipients signing up as new members of Fitness First on 4-month and 12-month contracts and, using an average membership cost of around £300 per year, this uptake generated revenue of around £330,000.

Shaun Gregory, Managing Director of O2 Media, said:

“The evidence for using location-based marketing is really beginning to mount. These figures show that it is not only effective at targeting the right consumers at the right time, but also extremely effective at driving new revenue streams and huge ROI.”

Calling all Scaleup founders! Join the Soonicorn Summit on November 28 in Amsterdam.

Meet with the leaders of Picnic, Miro, Carbon Equity and more during this exclusive event dedicated to Scaleup Founders!

O2 has teamed up with a number of other retailers as part of its ‘You are here’ initiative, such asMarks and Spencerwho signed a similar deal back in January.

The technology uses network data – not GPS – to determine location, which means that no Smartphone is needed. And for those worried that such campaigns could be intrusive, they are entirely opt-in from a customer’s perspective so they have the final say on whether they receive deals or not.

Story byPaul Sawers

Paul Sawers was a reporter with The Next Web in various roles from May 2011 to November 2014.

Follow Paul on Twitter: @psawers or check h(show all)Paul Sawers was a reporter with The Next Web in various roles from May 2011 to November 2014.

Follow Paul on Twitter:@psawersor check him out onGoogle+.

Get the TNW newsletter

Get the most important tech news in your inbox each week.