Proximity marketing delights customers and drives deeper engagement. Your entire proximity marketing solution seamlessly connects to your infrastructure to deliver the best customer experience.
The core to this changes is the mobile phone. The mobile industry continues to scale rapidly, with global mobile subscriptions growing around 5% year-on-year. According to GSMA’s The Mobile Economy report, an additional one billion subscribers are projected to get added to the total number of subscribers by 2020, taking the global penetration rate to approximately 60%. With mobile devices becoming a staple of present-day society and the leading way of accessing digital content, today, marketers need to understand how to connect successfully with their mobile consumers at the right place and at the right time. This is where proximity marketing comes into the picture.
Proximity Marketing—also called hyperlocal marketing—is a form of marketing that uses mobile technology to transmit marketing messages to mobile device users who are in close proximity to a business. This form of marketing offers an innovative method of delivering contextually relevant information, offers, and content that regular emails and paper coupons cannot match.
Though, at its simplest, proximity marketing is the act of advertising to customers based on their location, marketers all over the world are now beginning to realize that there is more to proximity marketing than merely delivering vouchers and promotional offers. Proximity marketing tools can be used to better understand the needs and wants of your customer base, as well as notable patterns in customer buying behaviour. This marketing approach can essentially personalise a customer’s shopping experience right from the time they enter the store to when they make the payment for a purchase.
Over the last decade, we have seen big retail brands, like Macy’s, Coca-Cola and Procter & Gamble leverage various technologies such as Wi-Fi, NFC, Geofencing, Beacon technology, and GPS, to deliver hyper-local, contextual, and personalized messages to both existing and potential customers. Small businesses are often left wanting, due to the limited resources they have. But in the last few years we have seen a lot of small businesses adopt to beacon technology, given how easy and cost-effective it is.
Proximity Marketing approach in Small businesses
Among all the industry verticals currently using proximity marketing to target and connect with customers, retail (SMBs) is by far ahead of all competing verticals. According to the “Prox Report Q1 2018”, proximity marketing in small-to-medium businesses can increase operating profit by 8% with an ROI of 365%. With the downturn of traditional marketing and the evolving, information-craving shoppers of today, business owners are searching for alternative ways of delivering their product and service offerings in brick-and-mortar stores. In this regard, proximity marketing is proving to be an out-of-the-box approach to drive purchase and footfall to their stores.
Besides business owners, customers are equally excited about this new evolution in shopping. Statistics, based on various surveys, point out that customers are eagerly looking forward to proximity marketing experiences:
More than half of the customers are interested in location-based services.
- 53% of customers are willing to share their current location to receive more relevant advertising.
- 57% of customers are more likely to engage in location-based advertising.
- 62% of customers share local deals with friends.
- 63% of customers feel a coupon is the most valuable form of mobile marketing.
Contact us to receive a comprehensive guide to proximity marketing for your business.