Guest contribution • 03.06.2019

Attracting customers to your retail store: location-based marketing

Right people, right place, right time: getting your customers' attention

Woman smiles into the camera
Jana Wiedemeyer is an IT editor.
Source: Palmer Hargreaves

“Check out this suede jacket that matches your pants and shoes." 

Once a customer is near the entrance of a fashion boutique, marketers deliver personalized promotions via hologram. After the customer has entered the store, the nearest sales associate uses the customer’s name to greet him and asks about the pants the customer bought during his last visit. Moments later the customer purchases the recommended jacket and then stops by the drugstore next door. He needs to buy shower gel. An app message on his smartphone tells him about the brands that are on sale today. He then makes his way to his favorite supermarket down the street. GPS tracking lets supermarket associates know in advance that the customer is about to arrive to pick up his online order. The ordered items are ready for pickup at the checkout as soon as the shopper has arrived at the store. Once again his smartphone beeps - with a new promo code for the customer’s favorite wine brand.

Targeting new customers with special location-based offers

This could be the future of shopping centers where location-based marketing gains retailers a crucial competitive advantage, attracts new customers and lures shoppers into stores. Needless to say, this assumes that customers have given their explicit consent to use their personal data because they consider this personalized approach and relevant offers a welcome extension and improvement of their retail shopping experience.

According to a study by Research Now, 91 percent of German marketing managers today already consider this a solution that optimally links online and offline channels. Last year, they spent nearly half of their company’s marketing budget on corresponding technologies.

Whether customers are browsing or specifically shop for products in the vicinity – thanks to geolocation data on the smartphone, retailers can instantly connect with consumers near their stores via personalized content, videos, unique coupon codes or push notifications. According to the 2018 Global Location Trend Report by the Location Based Service Association (LBMA) international group, Germany is a world leader in this area: Almost 90 percent of German companies utilize corresponding tools, whereas other countries average 77 percent.

A saleswoman holds a tablet in her hand and advises a customer in a garden...
Location-based marketing and good customer service are becoming increasingly important.
Source: PantherMedia / Lev Dolgachov

Regent Street recognized as a shining example: Delivering personalized offers to shoppers’ smartphones

Location-based marketing requires technologies like GPS or Bluetooth radio transmitters, so-called beacons, which are installed within stores. These types of technologies require users to install the retailer’s app and enable GPS or Bluetooth on their mobile devices. The small, wireless transmitters locate the customer, while computers send customized notifications on offers when patrons are close-by.

Regent Street, London’s elegant shopping street shows how it’s done: Nearly 120 stores and restaurants have implemented beacon technology. Retailers send personalized offers to customer smartphones as they make their way along the shopping street.

Timberland in New York proves that the use of these types of technologies pays off. The fashion retail chain raised in-store visits by 6 percent using location-based marketing (LBM). McDonald's in Hamburg also attracts customers via smartphone: The fast food restaurant chain has reached more than one million customers in one year thanks to location-based advertising.

Location-based marketing drives more sales

“Retailers who don’t tap its full potential are losing many sales opportunities," says Andreas Helios, Head of MEE Marketing, SAP Customer Experience. According to an analysis by Statista Digital Market Outlook, there are nearly 65 million active smartphones in Germany at the moment. "Every smartphone is a potential customer that retailers can interact with thanks to these technologies." Bars point out Happy Hour Specials to nearby customers, museums send alerts about current exhibitions, and fashion retailers utilize weather conditions and location to sell raincoats or sunglasses. 

Turning customer data into business value

How do these companies know the preferences of their customers? They collect customer data and purchase information in a database every time consumers buy a product. An effective customer experience solution strikes the right balance between data privacy and personalized offers. The system is able to maintain a fine equilibrium but the final decision always lies with the customer of course. In the future, companies will be able to develop better and more targeted offers thanks to collected consumer data.

A flexible and smart customer experience tool like the SAP C / 4HANA is essential to analyze customer behavior and data. It can also be used to boost customer loyalty and increase customer retention: A tablet alerts the store associate that a loyal customer has just entered the store. The collection of data from the database gives the associate valuable customer insights, allowing him or her to learn about the customer’s previous purchases and preferences. The sales associate is subsequently able to greet the customer and recommend targeted items that match the customer’s preferences – providing stellar customer service in the process.

Author: Jana Wiedemeyer, IT editor

related articles:

popular articles:

Thumbnail-Photo: Social networking for neighbors
17.10.2019   #brick and mortar retail #online marketing

Social networking for neighbors

Nebenan.de is a social media platform where both neighbors and local businesses can network

"Mrs. Müller, may I borrow some flour from you?" The online platform nebenan.de has accommodated requests like this one and others among neighbors for some time now. Neighbors can also post in the “for free” section or ...

Thumbnail-Photo: POS TUNING supports Grips&Co
26.09.2019   #sales promotion #product presentation

POS TUNING supports "Grips&Co"

POS TUNING is committed to promoting young talent in the retail

Since the magazine "Rundschau für den Lebensmittelhandel" launched the Grips&Co competition, the annual cult event for junior staff, HR specialists and brand industry has been taking place for almost 40 years. Two days of ...

Thumbnail-Photo: A pearl among commodities: encouraging impulse buys...
11.09.2019   #pos marketing #customer analysis

A pearl among commodities: encouraging impulse buys

How to make the most of wait times

It’s wonderful if customers come to retail stores to buy things. It’s fantastic if they buy more than they planned to purchase. This offers many opportunities, especially for brick and mortar retailers as surveys show: customers are more ...

Thumbnail-Photo: Vast majority of consumers plan to return holiday gifts...
03.10.2019   #pos marketing #personalization

Vast majority of consumers plan to return holiday gifts

“Retailers need to seize the moment."

During the upcoming holiday season 77 percent of consumers surveyed said they plan to return a portion of their gifts, with nearly 20 percent expecting to return more than half of their presents (sorry grandma!). This is both a blessing and a curse ...

Thumbnail-Photo: “What do you have that nobody else has?”...
16.09.2019   #data management #digital marketing

“What do you have that nobody else has?”

Exhibitor statements from the halls of DMEXCO 2019 on marketing trends and technology

We from iXtenso were visiting DMEXCO 2019 and looked around for the latest opportunities and technologies for marketers. We asked some companies what makes their solution unique – here are some answers. ...

Thumbnail-Photo: Distract or divert!
10.09.2019   #customer satisfaction #customer relationship management

Distract or divert!

How to engage customers at the checkout

Retailers and retail designers spend a considerable amount of time discussing and juggling a crucial aspect of the customer experience at the point of purchase: the checkout.To be fair, it’s not easy to turn the moment when customers have to ...

Thumbnail-Photo: All Influencer Marketing Conference 2020
11.12.2019   #digital marketing #marketing planing

All Influencer Marketing Conference 2020

The All Influencer Marketing Conference will take place for the fourth time on 19 March 2020 at the ICM Munich.

Influencer marketing is becoming more and more important! The importance of this discipline has rapidly increased in the marketing plan and almost every company is doing influencer marketing or is planning to do so in the near future. Why? No ...

Thumbnail-Photo: E-commerce Berlin Expo 2020 - first speakers announced!...
19.12.2019   #e-commerce #retail

E-commerce Berlin Expo 2020 - first speakers announced!

Save the date: the 13th of February of 2020, STATION-Berlin

This is where e-commerce insights combine with business knowledge and one of a kind networking, during the fifth edition on E-commerce Berlin Expo. The first speakers have already been announced - and saying that they are good and solid, is a real ...

Thumbnail-Photo: Mobile shoe closet on the road
27.09.2019   #sales promotion #fashion

Mobile shoe closet on the road

Luxury brand Tamara Mellon with first-ever traveling shoe store

Tamara Mellon, direct-to-consumer luxury brand, is taking their innovative retail concept on the road with the launch of the mobile TM Closet — the first-ever traveling shoe closet.Kicking off in Boston, the TM Closet will be located in ...

Thumbnail-Photo: VKF Renzel takes over exclusive distribution of EasyCubes...
23.10.2019   #product presentation #goods illumination

VKF Renzel takes over exclusive distribution of EasyCubes

The sales promotion specialist VKF Renzel took over the sole distribution of the
EasyCubes product presentation system for the DACH region with effect from
23.09.2019

After VKF Renzel was already involved in the successful product launch, this is now the consistent further development. ...

Supplier

HappyOrNot
HappyOrNot
Innere Kanalstraße 15
50823 Köln
Mood Media GmbH
Mood Media GmbH
Wandalenweg 30
20097 Hamburg
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
loadbee GmbH
loadbee GmbH
Nikolaus-Otto-Straße 13
70771 Leinfelden-Echterdingen
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
VKF Renzel GmbH
VKF Renzel GmbH
Im Geer 15
46419 Isselburg