US consumers and retailers embrace location based marketing in the US – next we add context, says D
Consumers in the US are embracing first generation location services – and paving the way for next generation location marketing – with 87% of retailers on the STORES’ Top 100 list providing mobile apps that help fans locate stores through location technology. This first generation use of location technology prepares consumers and marketers for the next generation of location-enabled marketing and engagement capabilities and solidifies location-based services as a mainstay of branded rich applications.
So finds a study in the US by Digby into the growing art of contextual location based marketing for retailers out this week. The study also suggests that 100% of mobile apps in boutique, casual dining, convenience, drug stores, fast food, grocery and value stores feature first generation location technology, which enables a store locator feature.
Mobile apps for big box, department stores and specialty stores with store locator capabilities follow close behind with 94%, 75% and 70% respectively, says Digby. Online retailers finish the group last, with only 25% offering first generation location-awareness.
But what to consumers make of it all? According to Digby, 22% of shoppers opened a contextually relevant push notification when they were near a store. 57% of those shoppers actually visited the store and the offer had a 160% redemption rate, due to shoppers sharing the offer on social channels.
The rising percentage of mobile applications with first generation location technology reflects an understanding of the dynamic engagement location can provide as a means to achieve contextual mobile marketing. Users, too, are seeking out contextual content. A recent report by Pew found that 74% of smartphone owners use their phone to get real-time location-based information.
A few industry leaders have made the transition to next generation location technology and have seen powerful results from their location-based marketing campaigns. The right message to the right person at the right time and place has turned browsers into buyers and improved customer satisfaction.
These initial results are encouraging. According to Forrester Research, Inc.’s January, 2013 report, Five Ways to Mobilize Your Loyalty Program in 2013, “In the mobile channel, loyalty program marketers have wider control over how and when they interact with members through both push and pull messaging and can use customer insights to motivate behaviors before a member even enters a store.” The report goes on to state, “ Whether it’s recognizing a top-tier member as they cross a geofence, reminding a member that they have points to burn while they browse, or alerting a member to a flight delay after they check in to a terminal, mobile makes it easier for loyalty programs to deliver offers, coupons and information to consumers in real time.”
David Sikora, Digby’s CEO & Founder agrees. “We are at a turning point in mobile marketing. Before, rich apps were treated as an extension of mobile commerce and the capabilities for personalization were limited. Now, industry leaders are providing right place, right time engagement that is triggered by activities of the app user in the real world. This next generation of mobile marketing will bring relevancy and value to marketer and consumer alike.”