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Combining Mobile and Beacons for shopping

Proximity marketing is the act of advertising to a customer based on their location. Location-based advertising (LBA) is a new form of advertising that integrates mobile advertising with location-based services. It hinges around the fact that wherever we go these days we always carry a mobile with us. And most of us quite happily share our location data with the various apps we use. This presents an opportunity for advertisers to personalize their messages to people based on their current location gleaned from their mobile device, and can send different messages to people depending on where they are in real time

Mobile advertising is a method of advertising that appears on mobile devices such as smart phones, tablets or PDAs that have wireless connections. Advertising can take place as text ads via SMS, or banner advertisements that appear embedded in mobile web site, in downloaded apps or in mobile games.

These tools help in providing better services or incentives, customers have this idea of sharing more in hopes of getting more. It works best when used to better understand the needs and wants of your customer base, as well as notable patterns in buying behaviour. In fact when used properly, proximity marketing can even help you improve customer retention.

Reasons why you need to invest in proximity marketing now

There are two primary reasons: the first is the potential to influence customer’s purchasing behaviour with, for instance, targeted offers; and the second is the ability to collect customer data, especially useful for brands such as those in fast moving consumer goods which often don’t collect their own customer insight data.

If your brand has not even begun toying with the idea of investing in proximity marketing, then you should consider this a wake-up call. Reasons why investing in proximity marketing is the need of the hour are summarized below

1.Your competitors are already getting smarter by embracing proximity marketing

Whether you are willing to embrace proximity marketing for your business or not, your competitors are definitely going to. According to the 2015 Store Operations Survey, 29% of retailers already have beacons in stores while 17% more plan to add beacons, which would bring the total number of retailers with beacons to 46% in less than a year. The rise of proximity marketing has some wide ranging benefits; the primary one being to understand customer browsing and buying patterns. Other benefits retailers have seen are

• 71% were able to track and understand customer browsing and buying patterns
• 65% were able to target customers down to the aisle level
• 53% were able to create more relevant and compelling offers in the store
• 24% saw increase in sales
• 24% saw increase in offer redemption

2. Your customers have already dedicated their attention to their phones

A survey by Ofcom last year found that 33% of internet users see their smartphone as the most important device for going online, overtaking laptops for the first time so the future is mobile. According to resent report from a retail marketing firm ‘Reality of Retail’, 75% of consumers use their mobile devices while shopping in stores and this is why many retailers are already exploring beacon-based smartphone proximity marketing technology in order to complement their existing digital efforts and in-store offers. Beacons allow you to deliver a relevant push notification to your customer’s mobile screen at the exact moment at a particular location inside the store, highlighting products on sale which would definitely draw their attention and will create the most successful environment for an impulse purchase.

3. Businesses that can collect location information from customers are able to learn more about them and provide them with individualized experience

Nearly every brick-and-mortar retailer is working on some sort of location-aware experience. While many of those provide special offers or deliver marketing messages, mostly aimed at specially benefiting their customers. One great example is Vigin Atlantic’s use of beacons at London’s Heathrow Airport. Customers walk through Heathrow and they receive proactive notifications helping them along their journey- a reminder to pull out their boarding pass as they approach security or directions to the closest lounge they are eligible to visit. This is what Virgin is doing and it is quite impressive.

You should know all customer journeys are different. However, by understanding the similarities, you can provide just the right help at just the right time for them. Moreover, location is just one data point of personalization. Combining the user’s location with all of the data points in their profile can provide a very rich and tailored experience.

By understanding more about customers and their location-sensitive needs, you can leverage surprise and delight by providing the right information before they even realize they need it.

Getting started with any emerging marketing tech can be intimidating. Is either you are not sure where to begin, or what to expect or how fast you can start seeing results. Proximity marketing using beacons is no different. While thousands of retailers and other businesses have deployed beacons successfully, it can be quite daunting to understand what proximity marketing is, as well as where and how to begin. That is why we are here to help you hit the ground running and begin using location-based marketing as soon as possible.

Why not set up a demo with us so that we can show you how you can join the smart advertising trend and take your business to the next level.

Kimto IoT is a provider of a comprehensive technology suite for the rapid design, development, deployment, and operation of next-generation IoT applications that unlock data-driven insights and transform business processes.

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