Guest contribution • 24.07.2017

More relevance for retail customers thanks to location-based marketing

Only those apps that offer personalized added benefits are the key to lasting success

Using smartphone in a supermarket
Source: Neirfy, Viktor1 / shutterstock.com

Until recently the “mobile“ subject matter only had one specific focus, namely “apps”.  Having said that, the current Adobe Digital Insights Report shows that worldwide app usage remains stagnant. In the U.S., usage has decreased by 28 percent. Meanwhile, smartphone usage rates are growing sharply: the number of online visits occurring on smartphones in Europe has risen by 156 percent since 2014.

While app usage stagnates, smartphones continue to be immensely popular. Making it obvious that companies simply can’t ignore the mobile channel if they want to reach their customers. Though the question remains how app usage can actually still be increased. Stefan Ropers, Managing Director Central Europe at Adobe, gives an answer in the Horizont: “[Companies] must […] reach mobile customers in their particular usage situation with exactly the right content. When it comes to the mobile setting, relevance and added benefit are the crucial criteria for success." Companies are able to accomplish this with location-based services (LBS).

Shoes on a smartphone screen
Source: blackzheep, BLUR LIFE 1975, Anthony Shaw Photography / shutterstock.com

Location-based services: This is how they work

Susan – a regular at a major retailer – approaches the candy aisle at her local supermarket and is still unsure which ”sweet little sin“ she wants to give in to today. A peek at the news feed on her smartphone shows that her favorite brand of chocolate is on sale. Susan grabs the chocolate. On her way to the checkout, she receives another push notification: a typically quite expensive Fair Trade coffee is available at a greatly reduced price today. Susan loves great coffee but usually purchases a different brand. She decides to try the coffee that’s on sale.

Retailers reach their customers with the right offers at the right time, and through the right channel using location-based services. The mobile app detects where the customer lingers at a defined location: near a store, at the entrance, in the sales area or in front of the shelf. How is this possible? Retailers have a whole slew of localization technologies at their disposal, each with specific available options. Services like WiFi, GPS or installed senders such as beacons facilitate localization and personalized communication with customers. Consumers receive an added benefit thanks to relevant offers and information at the right time and tailored to the situation. Susan gets a discount on preferred items, even without standing right in front of the actual shelf and saves money. Her preference for premium coffee is known based on her customer history. When she shops at the store, this respective information is used as the basis to extend optimal offers.

shopping via smartphone at home
Source: Kristina Vykhor, HighKey /shutterstock.com

Relevance is crucial

When using LBS, it is crucial to send customers offers that are interesting to them. In the worst-case scenario, “stalking“ them with frequent and undifferentiated customer communication causes consumers to delete the respective app. That’s why the frequency of contact also plays an important role. The more a company knows its customers, the more smart technology is able to control notifications. The well thought out use of LBS is critical to ensure the success of measures.  Next to technology, the experience is also important. Only the intelligent use of customer insights – such as Susan’s preference for a certain type of chocolate or brand of coffee – can improve the relevance of the sales approach and intensify the overall customer experience.

LBS as an opportunity for brick-and-mortar retailers

At home, Susan has a little time to spare and decides to look for a new summer dress online. It’s a pity that her favorite department store does not have an online store. Unfortunately, she also doesn’t receive the right mobile offers from the local store like she did at the supermarket earlier.

Brick-and-mortar retailers are increasingly under the gun and have to reposition themselves. More and more people purchase their products online. Major players in retail also get to feel this effect and are forced to react – like the U.S retail chain Macy’s, for instance, which has successfully used location-based marketing since the summer of 2014.

Online rivals like Amazon & Co cause a massive downturn in sales. Shifting to online retail should be a part of the business model. Brick-and-mortar retailers who also operate an online store and use LBS are not only able to keep up better with their online competition but also have a competitive advantage over other retailers.

LBS connect the real and digital world in real-time. Local strengths and assets such as personal consulting services and direct contact with customers are combined with omnichannel marketing. When Susan looks for a new summer dress online but is unsure about the size and fit and thus visits a local store, her website visit is linked to her visit to the store. On-site, she obtains information via an app about price reductions, size availability or matching accessories for the summer dress. The shopping experience is intensified at the point of sale. Unlike many other marketing measures, companies are able to measure their success with LBS live and increase their conversion rates thanks to targeted sales offers. A joint venture by Chep, PAYBACK, Mondelēz International and real,- demonstrates exactly how location-based services work in retail and how beacons assist in catapulting in-store promotions into the digital age.

Innovative technology + expertise = success

Chep, the leading provider of pallet and container pooling services installs beacons on its pallets at the real,-  stores that ensure that sales promotions can be tracked in real-time. Customers who installed the PAYBACK app on their smartphones and activated LBS receive the signals that are transmitted by the beacons. The app registers these signals and looks for matching coupons for the respective customer. The generated beacon contacts allow continuous monitoring of the pallets as well as the timely provision of sales offers. From the customer’s perspective, consumers can be specifically targeted at the POS, while sales promotions can be extended via the smartphone – all this with a higher-than-average increase in product sales and sales quotas.

Author: Alina Resnik, expert in customer loyalty at Loyalty Partner Solutions

related articles:

popular articles:

Thumbnail-Photo: Checkout-free hotel convenience store in Yokohama, Japan...
17.02.2021   #self-checkout systems #self service

Checkout-free hotel convenience store in Yokohama, Japan

Using biometric authentication technology

Zippin announced the launch of its latest retail format: a hotel convenience store. Zippin's partner, Fujitsu, the leading systems integrator in Japan, has worked with Koyo Group to implement the world's first checkout-free store within a ...

Thumbnail-Photo: Touchless Feedback
16.03.2021   #customer satisfaction #customer relationship management

Touchless Feedback

The Wall Street Journal published an article about Instant Feedback ‘Smiley’ Buttons

The Wall Street Journal, after interviewing our co-founder and Executive VP of Strategic Alliances, Ville Levaniemi, published an article titled “Instant Feedback ‘Smiley’ Buttons Go Touchless in Pandemic”. The article ...

Thumbnail-Photo: The Citizen CT-E651L :  two-in-one label and receipt printing...
04.03.2021   #printers #label printers

The Citizen CT-E651L : two-in-one label and receipt printing

Compact, dynamic and stylish design with outstanding connectivity

Say goodbye to manning separate printing solutions for label and POS as global specialist printer manufacturer, Citizen Systems, announces the all-new CT-E651L label and POS printer. Derived from the successful CT-E651 POS printer, the CT-E651L is a ...

Thumbnail-Photo: More than 400 Danish Coop Stores Now with Electronic Shelf Labels...
29.01.2021   #electronic shelf labels (ESL) #price labelling

More than 400 Danish Coop Stores Now with Electronic Shelf Labels

Back in 2010, the first Coop store implemented electronic shelf labels from the IT company, Delfi Technologies.

Store no. 400 became Irma at Islands Brygge in Copenhagen, which has undergone a major renovation project, where investments have been made into several initiatives to improve the shopping experience – this includes electronic shelf ...

Thumbnail-Photo: The 6 technology trends affecting the security sector in 2021...
15.01.2021   #security #brick and mortar retail

The 6 technology trends affecting the security sector in 2021

The trends are shaped by how and why technologies are used

It’s useful when looking forward to first look backward: hindsight has a wonderful way of providing context for future-gazing activity. And when looking back over the past year, one insight could understandably be that attempting to predict ...

Thumbnail-Photo: Vending machines: Customers alone in the store...
18.01.2021   #sales promotion #food retail

Vending machines: Customers alone in the store

Combi City-Markt makes round-the-clock shopping possible – without staff

Shopping after closing time? That’s possible at the Combi City store Bünting in Oldenburg. At the 24/7 vending machine, late at night shoppers have the opportunity to stock up on everything they need from the supermarket's ...

Thumbnail-Photo: FinTech IoT platform for self-service financial transactions...
25.02.2021   #cash management #cash handling systems

FinTech IoT platform for self-service financial transactions

PayComplete, the new cash handling brand from SUZOHAPP, announces global launch

PayComplete, the new brand and identity of the cash handling division of SUZOHAPP announced its launch today. This new brand will invest in what is an Internet of Things (IoT) platform for broader financial transactions, running both on ...

Thumbnail-Photo: Payments keep going digital and mobile
06.04.2021   #mobile payment #payment systems

Payments keep going digital and mobile

2.7 billion people to use mobile wallet apps by 2022?

As businesses open their doors online, payments solutions adjust to the change – and so do people. In a study conducted for Payvision, Kaleido Intelligence reports on the latest trends and forecasts in mobile wallets usage across the ...

Thumbnail-Photo: Klarna starts cooperation with Verifone
23.12.2020   #digitization #self-checkout systems

Klarna starts cooperation with Verifone

The idea: a shopping experience in stores that is unique worldwide

Klarna, the leading global payments and shopping service, announces a strategic partnership with Verifone, a global leader in payments and commerce solutions, that will make Klarna available as the first-ever buy now pay later solution to millions ...

Thumbnail-Photo: Tackling sustainability challenges in the food packaging industry...
04.02.2021   #sustainability #food retail

Tackling sustainability challenges in the food packaging industry

Tetra Pak calls for collaborative innovation

Tetra Pak has introduced a new collaborative innovation model with leading paperboard producers, a move aimed at tackling the food packaging industry's sustainability challenges. The traditional operating model of a linear supply chain has ...

Supplier

Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
40476 Düsseldorf
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf
GLORY Global Solutions (Germany) GmbH
GLORY Global Solutions (Germany) GmbH
Thomas-Edison-Platz 1
63263 Neu-Isenburg
Elo Touch Solutions (Belgium) NV
Elo Touch Solutions (Belgium) NV
Wingepark 5B / 301
3011 Rotselaar