Why are you always on your phone?

Most of the people these days own a smartphone, statistics shows 2.5 billion people in the world own a smartphone and 82% of smartphone users turn to their phones inside a store when making a purchase decision. Is it a good thing or a bad thing? Well, it can be good and bad for a business. The bad is that businesses will face a higher competition rate from its competitors as most consumers always google to look for the best and cheapest option available for a product or service. Apart from that, the good news for businesses is that consumers are always on their smartphone. This means that businesses can utilize proximity marketing to target these consumers.

What is proximity marketing? It is the use of mobile marketing to target consumers within the particular geographical area. Beacons are being used in proximity marketing and beacons are small devices that are set up around cities, shopping malls, metro stations and individual stores. These devices sends out signals within a radius and smartphone users are able to pick up these signals and receive offers, promotions or recommendations from stores within that specific area.

There are already businesses that used proximity marketing in their marketing strategy and the results were favourable. An example would be the giant hypermarket, Carrefour. It uses the beacon technology which sends out notifications about the store’s promotion or coupons to the mobile phone of consumers within the area and users are able to compare the prices of the store with its competitors. Besides that, the technology also tracks the consumer in store behaviour, be it what the category of product the consumer searches frequently or what product does the consumer repurchase that can help the business to better target its product to different consumers with different needs and wants. The result were outstanding as Carrefour has seen a growth of 400% increase in engagement rate in its app and the number of users in the app grew by 600% in 7 months.

It can be seen that businesses are slowly adapting to proximity marketing and beacon technology as it promotes an incredible boost of sales and growth in businesses. What are your thoughts on the future of beacon? Could it be better improved?

9 thoughts on “Why are you always on your phone?

  1. Great post! I think beacon technology is a great way for businesses to interact and engage with their customers without annoying them. If messages and offers are only sent out when they are within a certain range, it’s can translate into a worthwhile visit as you’re already close by. I think beacon tech will become more of a norm in the near future.

    Liked by 1 person

    1. Yes I totally agree with you, beacon technology is not that annoying to target consumers as compared to email marketing (Spam emails, Junk). Yes, there is no reason to not target consumers when they are already nearby or right infront of the shop of the business..

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  2. Interesting post! It is difficult to say how popular beacon technology will become because the technology is still relatively fresh off the block and has had its fair share of setbacks. However, one of the advantages for beacons is that they are relatively inexpensive in comparison to other technologies, so businesses large and small can adopt the technology with very little risk.

    Liked by 1 person

    1. Thank you for the comment! Yes, beacon technology is not as expensive to set up and could be implemented by SME businesses, even startups. Therefore, it is a great tech to be used by businesses to further target their consumers. Even though the beacon technology is still relatively new, but it is proven to be used widely by more and more business as it is not only cheap but also effective. Hope to see more added features in the beacon technology in the future..

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  3. I think proximity marketing is great, but perhaps this is because I’m looking at it from a biased opinion as a marketer because I can see how this could be hugely beneficial for businesses. I think as a consumer with a marketing background, I prefer getting a notification from a business nearby than a random business 10km away because the value created makes a lot of sense.

    Liked by 1 person

    1. Definitely! I agree with you totally, from a consumer perspective, it makes much more sense to recieve a notification from a business nearby (proximately within 500m-1km range) as compare to 10km as you mentioned. But, some businesses especially niche industry could be beneficial to target consumers further away as they are the only operators that have a certain product/service that consumers will most likely purchase from them.

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  4. Interesting post!! I agree that beacon technology is one of the great tactics businesses can use to attract consumers. As you’ve mentioned, it boosts sales and growth in businesses by simply a quick notification which will not disturb consumers as they will only receive it if they are in a certain range. This may be a method that can be used by many small businesses to send quick notifications of recent sales when consumers walk past or are within a close distance!

    Liked by 2 people

    1. Thank you for the comment! Wow you mentioned such a great idea, to include recent sales notification to consumer when they walk past or is within close range of the store. This will actually provide some pyschological effect to consumers thinking that many consumers have shopped in this store, I must get inside the store to see whats the hype about..

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  5. Personally i feel that beacon technology is a way which businesses can do a quick advertisement to potential customers nearby. Not only will it be fast, it can also be more relatable for consumers, hence more effective.

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