In recent years, ecommerce has put unprecedented pressure on offline stores and retail brand. At the turn of this decade, shoppers were introduced to a convenient, flexible way to shop for a diverse range of goods – all from within our cubicles and living rooms. Then came recommendation engines, or the online equivalent of an extremely competent store associate. They made recommendations based on the bases of their consumers’ personalities, which they gauged through browsing behaviours, clicks, and views.
For a while since e-commerce came into being, online retail had the data edge. They understood and related with their customers better because they sat on a pile of information about the their tastes, lifestyle, and more. For offline retail to be able to compete with e-commerce, it is no doubt that they need access to similar information. But with location-based marketing, they have much more to work with!
In essence, location-based advertising allows offline retailers to market their products and services to a much more targeted, engaged audience. This in itself is one step forward in personalization. With location-based technology, retailers can help their customers navigate through stores. They can increase visibility for products that fit the customers’ needs. They can also personalize their deals and offers. Retailers can find more revenue streams through new customers, and enhance their engagement with shoppers in the vicinity that stand higher chances of conversion.
Deriving new insights about consumer behaviour
Location-based technology allows consumers to engage better with retail and other services in their vicinity. At the same time, it also gives marketers fresh view into their customers’ offline, real-life behaviour. Location-based advertising clocks in information like locations, daily routines, hobbies, and interests purely on the basis of where the consumer travels through a day, week, or month. For example, if offline retailers can get information about how frequently a consumer goes hiking, running, or travelling, they will have a better insight on their travel style and general lifestyle. They can then offer deals and promotions and serve ads to them accordingly. There are many more such use-cases that depend heavily on consumer locations and related behavioural patterns. Location-based technologies like beacon, geo-fencing, in-store WiFi, RFID, and more can come together to give retailers a 360-degree view of the customers’ journey and lifestyles.
Clearly, with location-based technologies and advertising, offline retailers gain an edge over online retailers, as the latter heavily depend on consumers’ online behaviour only to personalize offers, deals, and advertising.
Seamless online-to-offline integration
Digital advertising is the new norm – everyone is in on it. Whether your brand’s shopping experience and customer engagement happens online or offline, chances are your marketing dollars are heavily invested in online advertising through mobile marketing, banner ads, social media advertising and more. Although investments have increased in digital marketing thanks to increasingly connected consumers, brands still have little visibility into the impact of their digital marketing and advertising campaigns. Location-based technologies, in combination with other data sources such as transactions, now have the capability to provide a granular, SKU-level visibility into the impact of your brand’s digital advertising campaigns. This, in turn, can ensure that advertisers and brands get more bang for their marketing buck!
Clearly, location-based technologies are raising the game for offline retailers. They are preparing them for new age retail where competition is thriving from all quarters. Are you ready to raise your brand’s game? Get in touch with us!