Why Retailers Cannot Ignore Proximity Marketing Any More!

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You’ve surely heard all the buzz about beacon and proximity marketing. BI Intelligence reported that 4.5 billion active beacons will be installed by 2018, with 3.5 million being in use by retailers. Furthermore, mobile proximity is poised to be the fastest growing player in mobile spending. It’s a retail marketing tactic that has moved from a competitive advantage to one that is simply ‘price of entry’. Why is it so important and valuable to business owners? Let’s take a look.

Proximity Marketing Combines Three Important Elements

The widespread adoption and utilisation of mobile devices by consumers opens up an opportunity for real-time marketing that is more relevant. Think about the amount of motivation required to inspire a customer to come from another location to visit your store, compared to what is needed to get them to stop in when they are already nearby.

With proximity marketing, you can combine your knowledge of a customer’s interests and intent, with their location, which gives you the information needed to send a personalised and highly relevant message that takes customer engagement to the next level. Say you own a store in a mall and a customer who has shopped with you before stops in to visit another store, you can ping them with a 10% discount offer that motivates them to stop by. Without location, the offer would lose much of its power.

Your Competitors are Probably Using Beacons

One of the main reasons you can’t ignore beacon marketing is because, by not using it, you are putting yourself at a serious disadvantage against others who are. With beacons influencing an estimated $44 billion in retail sales, you want your store to reap the benefits, right? If a customer is walking around the mall and gets an offer from your competition instead of you, you have lost that sale. With this tech being mainstream, you need to be using beacons to remain competitive.

Proximity Marketing Improves Customer Loyalty

Beyond helping the retailer, proximity marketing can help customers too. Consumers have repeatedly reported that they are annoyed by irrelevant marketing messages. On the other hand, they appreciate targeted and personalised offers. Using beacons allows you to remind them to stop in when they are in the area. From the perspective of the customer, this is a nice reminder of an additional benefit they can get without going out of their way. As a result, using this technology can help to improve customer loyalty. CVS tried out the technology to deliver real-time push notifications. The results showed that 72% of customers felt their in-store experience was improved.

Lastly, Proximity or Beacon Marketing Offers High ROI

So what is the cost? For a tactic to bring high value to retail stores, and to be in such high demand, you would expect a hefty price tag. However, that’s not the case. Beacon marketing is available at a very reasonable cost for retail stores, resulting in high ROI. It is often incorporated into app services that help to drive loyalty through rewards and targeted messages. As a package deal, you are able to drive meaningful results without using up a huge portion of the marketing budget.

If you haven’t adopted proximity marketing yet, make 2017 the year. It will help you to remain competitive in your industry, drive sales, strengthen relationships with customers, and all at a price that allows for high ROI. Do you have any questions about this technology? Write to us in the comments section below or drop us a line.

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