Proximity marketing…is there value?

I have been much more active lately posting and sharing on LinkedIn than on this site. I do hate duplicating content, and have not had the opportunity to do both as well as I would like.

I am going to try and work on that. Maybe I could start with a discussion thread on tracking your phone (by beacon or WiFi), as the whole issue of tracking within the store is an interesting one.

sol-proxmobile

I believe (my opinion only) that in the past couple years, consumers have become more accepting of in-store proximity marketing, if for no other reason other than it has become so much better. Understanding the likely reason to be in the store (based on past interaction with that retail brand), and ability to pinpoint specific areas of the store has definitely improved. Retailers are learning what is too much (or too little messaging) and how to gauge time in store, time in a specific area, and progress through the store in sending these messages at more appropriate times.

Yet, this is a practice that is certainly still in transition, and mistakes are still made. How this process is executed may cause consumers to get their backs up. Receiving an offer after just making that purchase is annoying. Many are opposed to the practice of having competitor’s geo-fencing another store and providing competing coupons, while others find this fascinating. Getting bombarded upon entering the store is usually not desirable.

Also, consumers may not recognize that they may have opted to receive messages from the store location itself, but may also simultaneously be receiving ads and messages from other apps that they have on their phones and other sources they have previously opted to have messages from. To say the least, at times the whole process can get messy.

Here are a few data points that all the more underline why proximity marketing may the best way ahead (note: the originator of this material certainly has a vested interest in beacon technology, but interesting still the same):

  • The average clickthrough rate (CTR) for a Facebook ad is 0.119%, according to a recent Wordstream report
  • The average clickthrough rate (CTR) for an email is 1% to 3%, according to a recent report by Mailchimp
  • The average clickthrough rate (CTR) for beacon based push notifications can be as high as 80%, according to the data published by push notification technologist Kahuna (Beaconstac, 2016).

(more on this discussion can be found here: Sheehy, A. (2013, August 19). The Mobile Advertising Value Chain.  http://www.nakono.com/tekcarta/analysis-insight/mobile-advertising/mobile-advertising-value-chain/  )

I do think that one of the big drawbacks to this type of push marketing is that not all consumers have their phones out at all times (I know…it varies by generation, but it still can be a pain to have your phone out in a department store sometimes).  That is why I am encouraged by some of the other ways that proximity marketing can be accomplished such as displaying digital instore signage of items that might be of interest if you have your phone on or through Near Field Communications (NFC) marketing, where you hold your phone close to the sensor to receive more information. Personally, I also like the fact that proximity marketing for that brand ends when you leave the store or certainly shortly thereafter.

What about you…proximity marketing, yea or nay?

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