By: Frehiwote Negash
Technology is rapidly changing in a world that is heavily reliant on it. As a result, retailers have to find unique methods of advertising to reach the consumer. In a day and age where companies are looking for innovative ways to bring customers through the doors, a new technology might do the trick in driving up sales and help build consumer loyalty. The introduction of Proximity Marketing has allowed for retailers to hone in on the desires of consumers and place ads that are tailored, directed and targeted to cater to their individual tastes. Therefore, ads will be target to the consumer based on specific interests as well as their proximity to a retailer that can best fulfill those needs. Not only does it allows for potential customers to build a relationship with the retailer but can enable two way communication and helps foster loyalty to the retailer. Companies like Impact Mobile have decided to enter what could end up being a very lucrative market as they see the value in enabling and strengthening the relationship between the consumer and the retailer. More importantly, the true value of the technology is measured in the conversation rate from the placement of the ad to when the consumer heads to the cash register.
Proximity marketing uses cellphone technology to send ads to smartphone users who are in close to a business using the technology. While the ad is limited to those in the proximity of the business, the message is user-friendly and reaches consumers that are most likely to buy. Users can opt-in to receive ads from specific retailers and avoid being inundated with ads from retailers that do not suit their tastes.
Although variants of this type of technology have been around for about decade, many are hesitant about it as its success hinges on two keys factors: retailer interest and consumer acceptance. Investors should be excited about its potential as 53{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of consumers polled in a JiWire study said that they were willing to share their current location to receive more relevant advertising and 57{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of consumers are more likely to engage with location-based advertising. 63{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of respondents said coupons are the most valuable form of mobile marketing. These numbers illustrate the value of this type of targeted marketing. With respected companies like Apple, Macy’s and Coca-Cola utilizing this tool to bolster their brands and maximize profits, we can say that proximity marketing is here to stay.
The potential for this technology is not just limited to retailers but can extended to restaurants, sports events, hotels and even casinos as smartphones are increasingly becoming efficient tools for eCommerce.
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Sources: Forbes.com