Appadia Mobile Native Apps

5 Signs Retail Should Invest in Proximity Marketing

Read time: 3 minutes

All retailers should be implementing personalization with customers, and proximity advertising is making this easier than ever in retail. Proximity marketing tools have become accessible and affordable over the past few years, even for brick and mortar stores. No matter how big or small your company, this is why and how you should invest in proximity marketing.

Your app has been unsuccessful

Customers are only downloading apps that provide them with new benefits. The experience on the app must be unique to shopping online. An app is still essential to a proximity marketing campaign as a a tool to enhance customer experience through personalization.

In store beacon technology integrated with the app allows you to:Appadia Mobile Native Apps

  • personalize the customer shopping journey
  • send promotions based on shopping preferences
  • send promotions at the right time
  • convert footfall to sales
  • capture customer data

With added value for the customer, the app will receive more downloads.

You’re lagging behind on data collection

Most companies are playing catch up on data collection to compete with retail giants like Macy’s and Amazon. Pairing in store beacon technology with your app, you can operate your proximity marketing campaigns more efficiently.

Pairing in store beacon technology with your app, you can operate your proximity marketing campaigns more efficiently.

Beacons allow accurate targeting, while also collecting infinite amounts of data for marketing and operational use. Some examples of data collection include:

  • The customer’s preferred path
  • Frequency of visits
  • Time spent in stores

For operational use, beacons can improve in-store performance in real time. Pushing notifications to app users, stores can increase footfall with limited-time proximity promotion.

Example: If you’re sales are unexpectedly low because it’s raining, you can send a coupon for umbrellas into the hands of app users.

Your competitors have already implemented proximity marketing

Some big players implemented beacon technology such as Macy’s, Nordstrom, Lord & Taylor, and Neiman Marcus.

Retailers must revamp their in-store marketing strategy to remain relevant and compete with e-commerce. Technology is reshaping the way we shop, but customers are still buying convenience until the in-store shopping experience becomes worthwhile.

In 2018, retailers are expected to increase their spending on proximity and location-based marketing by 7.3% over the amount they spent the year prior. This was the highest percentage among all technologies including AI, RFID, big data, and more (Source: eMarketer’s “Retailers Place Technology Bets for 2018”).

Your customers bring smartphones to shop

Most people have smartphones and are using them during their shopping journey. Here’s a breakdown of how shoppers use their smartphones while shopping in 2017 (Source):

  • (58%) Research products or product info
  • (54%) Price check and comparisons
  • (40%) Access or download digital copies
  • (33%) Access specific retailer mobile app
  • (22%) QR codes

When shopping, customers seek knowledge of products and a way to get the best price. Proximity marketing can satisfy those customer pain points by sending relevant push notifications on specific categories of interest.

Read “How to Solve the 3 Biggest Problems with Customer Experience” here!

According to a 2016 survey, U.S. shoppers are also becoming more comfortable with opting into in-store tracking and push notifications for these reasons (Source):

  • (61%) Discount/coupons
  • (47%) Loyalty rewards
  • (34%) Faster checkout
  • (11%) New product notifications
  • (11%) Personalized recommendations
  • (30%) Nothing: I will never opt into in-store tracking

Your proximity marketing campaign should include discounts and a rewards program; however, not all benefits have to be promotions.

Example: The app can prompt you to confirm your usual coffee order when you pass a coffee shop. The coffee shop already knows what you want and how you pay.

The Appadia Proximity Marketing Solution

  • Full proximity marketing campaign solution
  • Content management on a user-friendly dashboard
  • Subscription-based solution with no commitment

Request a demo here!

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