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Proximity Marketing: What it is and why your business needs it

Proximity Marketing – What it is and why your business needs it

In today’s world, we are inundated with information coming at us from all directions. You can’t walk or drive down the street without 10 new advertisements striving for your attention every second. The same holds true when surfing the web or browsing on Facebook. This leaves business owners to wonder – how in the world am I supposed to get in front of my potential customers? Enter Proximity Marketing.

What is Proximity Marketing?

 Proximity Marketing uses cellular technology to identify mobile device users that are within a certain location of a business to send enticing marketing messages. This technology is powered by little devices called beacons. Beacons are small devices that send Bluetooth Low Energy signals (BLE) to smartphones and tablets nearby. Once emitted, these one-way radio waves reach the phones in the vicinity of the Beacon device and interact with them. That means that when the signal from a Beacon reaches a phone, it triggers specific actions, like location-based notifications and alerts.

Why Should Your Business Use Proximity Marketing?

Beacons can trigger location-based notifications on customer’s phones. These notifications might inform customers, in a personalized way, about special promotions, discounts or new products available within the store where the beacons are placed. Location-based notifications can be used to invite customers to enter a nearby store, or to welcome them when they enter the store, or to greet them when they leave by providing a discount or a special treat to encourage them to come back. All these strategies are very powerful tactics to drive foot traffic to retail stores and increase their conversion rates and sales volume. Also, this use of Beacons can help retailers attract users to their apps, retain those users, and increase engagement on those apps.

 

  • Proximity marketing gives the ability to tailor messages and promotions to certain groups based on their preferences and their location in and outside the business
  • Based on the proximity of a customer to a business and the delivery of a targeted offer or message, this can lead to higher conversion rates.
  • 53% of consumers are willing to share their location to receive relevant advertising and offers
  • According to a study, 72% of consumers will act on a call to action from a marketing message if they receive it while in sight of the retailer

Businesses and Industries Already Using Proximity Marketing

Some industries that are already integrating proximity marketing into their efforts include:

 

  • Real Estate Agents/Agencies
  • Retail Stores
  • Insurance
  • Restaurants
  • Coffee Shops
  • Ice Cream Shops
  • Car Washes
  • Salons
  • Florists
  • Dentists
  • Chiropractors
  • Pest Control
  • Plumbers
  • HVAC

A common misconception a lot of people have is that this technology is designed for retail businesses with a storefront. That is not the case. If you have any sort of offer you can make to potential customers based on a location they frequent, then you can use proximity marketing to drive more business.

Top Tips For Your Proximity Marketing

We recommend you stick to the following tips when running proximity marketing campaigns:

 

  • Make the service optional to allow customers opt-in or out. Do not force it on them.
  • Vouchers or discounts are the best types of message as 63% of consumers feel these are the most valuable
  • Deliver interesting and relevant content to enhance a consumers experience or knowledge of a product or service. Videos work very well here.
  • Deliver a message that will make the consumers experience easier, quicker and more pleasant.