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?