Over the last four years, there’s been a technological uprising in the staid world of coupons.
Over the last four years, there’s been a technological uprising in the staid world of coupons. Bluetooth beacons first arrived on the scene in 2013 when Apple released the iBeacon specification, and since then a number of players have entered the space and built entire businesses around the bet that these kinds of location-sensing devices will eventually reach ubiquity and change the face of retail marketing.
Proximity Marketing, the granular form of location-based advertising, is now becoming the prevalent medium of communication between a brand and a consumer since it is contextually relevant, timely, beneficial, and personal. It comes as no surprise that the proximity marketing industry is growing by leaps and bounds every day.
A mobile app using basic push notifications without location data has an average open rate of 4 to 8 percent. But when using a geofenced message, the open rate increases to 25 to 30 percent. By contrast, a coupon sent via email has an open rate of just one or two percent, at best.
While restaurants, hotels, sports venues, educational institutions, banks, amusement parks, and other businesses are embracing beacons for proximity marketing and reaping its benefits, retailers have been one of the most prolific users of beacons. As brick-and-mortar retailers have long struggled to foster a personalized connection with their customers, they are now turning to proximity marketing with beacons to get a real-time view of the customer experience, increase engagement, and boost sales.
For instance, the Regent Street stores leveraged beacons to engage shoppers and witnessed brilliant results. The stores saw a surge in the usage rate of their beacon-enabled Regent Street app, with contextually relevant offers and information driving 48% of the shoppers to use the app more than twice a month. The businesses also registered a 10-times uplift in offer redemption from beaconing and an engagement rate of 35% on offers sent to nearby shoppers.
With projections of over 1 million new beacons to be deployed in retail and trend of proximity marketing taking over, it is essential for retailers to understand the potential of this new marketing tool and how retailers across the globe are using it to be successful.
To help retailers understand and use proximity marketing to its full potential, we bring to you an advanced guide that offers great insights into how proximity marketing is becoming a success formula for the retail space. It takes you through all the essential steps to get started with your first retail store proximity marketing campaign.