Boom or Bust – The Future of Proximity In-Store Marketing
Not too long ago I tested out a number of proximity based apps in a few of New York’s larger retailer stores. As consumer habit continue to move towards mobile tech integration business are looking to get as up close and personal with shoppers as possible. Tailoring your in store experience based on where you are comes with a number of potential benefits. Below is the opening excerpt of a great piece discussing In-store proximity marketing. Check it out then hop over to the full post at the end.
Today’s constantly connected consumers are using smartphones in-store more than ever. A recent Google survey states that a staggering 80 percent of shoppers are using smartphones to make purchasing decisions. Retailers and start-ups have taken notice, and the concepts of mobile location analytics and proximity marketing are emerging out of that.
Publications like Techcrunch and Adweek have articles of retailers launching Bluetooth beacon pilot programs almost on a daily basis. Some recent examples includeTarget, Country Market and Urban Outfitters. But when you clear away all the buzzwords, what exactly is this shift we’re seeing? It’s the world customizing itself to you. The world is reacting to your presence, specific to you as an individual.
Proximity marketing is an exciting concept, but a lot of people are worried they’ll be inundated with spam if they opt in.
That is an exciting concept. Talking about this out in the world will get you varying reactions, from concerns about privacy issues to the idea that your phone is going to spam you with Viagra ads non-stop, but if you boil down the idea, there are some really compelling concepts here.
Personalization Is A Key Benefit
Let’s take a look at a form of personalization we all know about today. A husband and his wife have individual key FOBs for their car. When the husband gets in the car, the mirrors adjust, the seat slides back, and the radio station changes to his favorite morning radio station. When his wife uses the car that evening, the car returns to her preferences. That’s an example of very useful personalization. Now, imagine if a retail store could do that for you.
We’ve seen online personalization become more and more sophisticated over the past decade with platforms such as Google AdWords and the Facebook Audience Network, and the addition of proximity marketing technologies is making it possible to expand that personalization in-store, effectively bridging the gap between digital and physical environments. There are both exciting and scary possibilities to this.
So, why can’t retailers live without it? The retailer will now be able to understand shopper behavior beyond POS data. Retailers currently have the ability to analyze traffic patterns, deliver personalized offers, measure dwell times, build on customer loyalty profiles and even A/B test physical displays. And what does the shopper get? By integrating this technology into a retailer’s app, the shopper gets an ultra-personalized experience through customer-specific offers, location-specific coupons and contextual information such as maps and menus.
But the question that keeps coming up is: Will shoppers adapt to this kind of experience? If users don’t adopt the technology, hockey stick graphs will never happen for retailers. I think of a Sheryl Sandburg story I’ve heard during her presentations several times. When Caller ID first came out, users were scared by it. They thought the concept of knowing who’s calling before you picked up was creepy. Now, 20+ years later, we don’t pick up our phones without knowing who’s calling.The user’s perception of the technology completely flipped over a couple of decades.
It seems a general consensus among investors and marketers that someone will figure out and win the proximity marketing race.