Technology is presently pushing up “Location based marketing” to higher levels. Location based marketing is also getting hotter as many start-ups in the data set industry is venturing into it.
Today online sales are growing faster as customers are getting more attracted to huge discounts and deals offered by online portals. This is putting a lot of pressure on the brick and mortar stores and they are finding it difficult to compete with online portals.
Location based marketing is also getting hotter as many start-ups in the data set industry is venturing into it.
Consequently brick and mortar stores are losing high volumes of sales to online portals. Competition and marketing tactics of online businesses are getting sophisticated and high-pitched every day. This is making it difficult for brick and mortar stores to reverse the flow of business from online to offline.
They are also finding it difficult to get value from customers who come and visit their stores even after spending considerable amount of money to get customers inside the store.
Many start-ups have come up with innovative ways to help the brick and mortar stores. This is by way of targeted marketing to customers who visit malls or big retail stores.
bfonic is one such start-up which has build a beacon based technology platform that create real-time engagement with customers who visit brick and mortar stores for shopping.
Network of closely spaced beacons inside the store are synced to the smart phones of a customers visiting the store. This is made through Wi-Fi and the customer is connected to the network as he syncs his mobile to the local Wi-Fi .
Now these Wi-Fi based beacons are directed to provide targeted offers of items which the customer is found spending more time in browsing. This will enthuse and prompt him to take action on a purchase.
It is being predicted that location based marketing with focus on wi-fi based beacons is estimated to grow rapidly in next five years. According to a Juniper Research report it is expected to grow to $43 billion in 2019 in United States from about $12 billion in 2014.
Innovative methods of location based marketing are at present tested and tried in United States. In a couple of years, this mode of marketing is definitely going to hit the world over.
Swirl and Inmarket are two notable US focused firms in location based marketing based on beacon technology. The technology is new and I am sure brick and mortar stores are going to latch onto this new gizmo that can give better experience to a customer and higher revenue through sales to them. Unless they do stuff like this more customers are going to leave them and flock to online portals for shopping.
I am quoting below a classic example of the use of this technology in a Singapore mall showing ways on how marketers can use this in future.
313 Somerset, a mall near the Somerset MRT station, is Singapore’s first mall to launch a beacon-based mobile advertising network. With their prior permission, users of the Tring313 app can get coupons and sales alerts as soon as they enter 50-500 metre distances from the mall. In many cases, retailers reported 46% sales conversion due to the app.
Proximity marketing is a huge opportunity for marketers in global markets. Innovative methods of location based marketing are at present tried and tested in United States. In a couple of years, this mode of marketing is definitely going to hit the world over.