Mobile-centric marketing has become increasingly more common over the past decade or so, with much of this being driven by the rise of smartphones. This has led to a variety of niches and practices becoming more important, such as local SEO, and much more.
Recent years have seen these becoming more essential, as well as a variety of new practices being invented. Despite not being new, proximity marketing has become increasingly more common for this. Much of this has been driven by a variety of technological improvements and innovations.
Because of how new the technology behind this growth is, as well as what the overall niche is, few people know much about it. Companies that have implemented the practice have seen quite a considerable number of benefits because of it, with much of this being focused on increased brand awareness and sales.
This means that knowing the ins-and-outs of proximity marketing, as well as how to do it effectively, could make a significant difference for many businesses. Similar to many other areas of entrepreneurship, being informed can be fundamental to success.
What Is Proximity Marketing?
Proximity marketing has often been called hyperlocal marketing, as it targets potential customers that are within a certain distance of your business. This involves targeting them with a personalized message that entices them to purchase a product or service in the near future, with much of this preferably being done within minutes.
How Does It Work?
Proximity marketing involves the use of beacons, which are Bluetooth or wifi connected devices that can target devices within a specific range. This then allows for the passing of information through a variety of ways, with the most notable being through text, video, and images.
This means that there are a few essential requirements for the practice to work, with the first being a Bluetooth enabled device at the location of the beacon. The beacon itself must also be placed where the customer is currently located, as they can have a relatively short range. This means that your beacon should be placed in an area which sees a significant amount of traffic.
Lastly is an app that the potential customer will need to have installed on their phone. While it’s recommended that this is your company’s app, this doesn’t always have to be the case. In contrast, there are a variety of apps available on both iOS and Android that allow businesses to advertise through their platform.
Once you have each of the above, you’ll then be able to take advantage of the practice. There are a few things that you’ll need to consider when you first place the beacon, however. One prominent factor is that it’s set in an area where it will be detected by as many potential customer’s mobile devices as possible.
You should also consider power arrangements, which type of beacon you want to choose, and a variety of other factors.
Benefits Of Proximity Marketing
Proximity marketing has been used for years in the retail sector, which has seen a variety of benefits from its use. This hasn’t meant that this is the only industry that can take advantage of it or benefit from its use. In contrast, the majority of businesses should be able to do so.
There are several benefits that your company should be able to see. The first of these is that it helps to increase app engagement among customers who are within range of the beacon. Keeping users engaged with an app is one of the more crucial parts of its success, which also plays a large factor in a company’s sales and revenues through it.
Similar to this is the fact that it helps to increase app retention. Potential customers aren’t going to keep an app that they infrequently use, if at all, which means that they’re likely to uninstall it. This is something that the majority of businesses will want to avoid.
Instead, using a proximity marketing campaign with beacons can be an effective way to increase engagement rates, which will then encourage customer retention. It’s important that you have analytics with this so that you can measure your click-through rate (CTR) and measure your return on investment.
In many cases, your CTR can be as high as 80%, which will have a domino effect on conversions and sales. As proximity marketing only targets customers within a short range of your business, you should be able to see immediate conversions based on your marketing efforts. – Bill Ross, Linchpin SEO, A Chicago SEO Agency
This is something that the practice can have an advantage over traditional marketing techniques, which often provide longer periods between initial contact and sales. This is driven by the fact that customers are already in the prime location to purchase from your company while push notifications and deals sent through a beacon can be an effective way of doing so, and shortening the sales cycle.
Alongside this is the fact that proximity marketing can provide a personalized experience for your customers. This is something that many studies have shown to be much more effective than traditional techniques.
One of the more prominent ways that this has been on show is that employees can be alerted through the beacon when a loyal or regular customer walks into the establishment. This could allow them to offer a more personalized approach to their service, which means that you could provide extra help to customers who have proven themselves to like your brand.
Trends In Proximity Marketing
There are a variety of trends that have been affecting proximity marketing over the past few years, with one of the more prominent of these being an increased focus on privacy and the security of personal data. This has been driven by a variety of hacks and cybercrimes over the past few years, such as the relatively recent Sony and Apple iCloud hacks.
This has meant that more companies have had to pay a significant amount of attention to how secure each of their beacons is. Alongside this is the apps that are used in conjunction with these, which often contain a significant amount of personal information.
With much of this being digital, it can be vulnerable to a variety of cybercrimes, which means that businesses will need to stay up-to-date with security measures.
Furthermore, consumers are becoming increasingly more concerned with how their information is being used, with the recent Facebook and Cambridge Analytica scandal bringing this back into the spotlight.
This has meant that companies that collect any kind of data will need to be transparent with how they intend to use the information that they collect from consumers. Building and maintaining trust is another trend that is closely linked with this practice.
Because of this, many companies who collect any customer data, regardless of whether or not it’s through a beacon, will need to look at their strategies to ensure that they don’t harm this trust. This could mean auditing marketing and business practices and look for any practices that may create a negative opinion about the company.
Failure to do so could lead to customers uninstalling the app and not wanting to see any advertisements from your beacon or business. As such, this is something that every company will need to address.
Stats About Proximity Marketing
If the benefits of proximity marketing aren’t enough to highlight how important it can be for your business, then there might be a variety of statistics that will. This is because the practice has proven itself to be an effective and affordable way to advertise a business.
This has been especially true when it comes to many other forms of marketing, which many consumers may see as spam. While this may have been an option for many companies in the past, consumers have become increasingly aware of the practice.
This has meant that the majority of them have learned to avoid it and look negatively on the practice, with 25% of people claiming that the experience the issue every week. On top of this, a study highlighted that 96% of marketers believe that a more personalized approach to customer relationships.
A further 88% of these respondents claimed that increased personalization, of which proximity marketing can play a role, can increase engagement with customers.
Over the past several years, the practice has become increasingly essential primarily because of the commonality of smartphones. When proximity marketing was still in its infancy, approximately 60% of people owned a mobile phone. In the years since then, this has skyrocketed to 4.77 billion smartphones being on the market.
Alongside this has been the rise of wearables, which has meant that consumers are increasingly more connected to the web while on-the-go. This has meant that brands have had to focus much more on location-based marketing.
Data has shown that 82% of consumers make their buying decisions while in-store, while 60% of those who research beforehand will look at location when doing this research.
There have been a variety of other statistics that have made themselves obvious, including:
- 75% of retailers have added beacon technology to their marketing efforts. These stores have seen a purported 9% increase in profits while also noting a 175% increase in their marketing ROI.
- There were 3.5 million active beacons by the end of 2018.
- Market growth is expected to grow at a CAGR of 29.8% between 2016 and 2022 with proximity marketing showing the largest results in this.
- Beacons are expected to reach 60 million people by the end of 2019, with 400 million beacons reported to be established by the end of 2022.
- In 2018, a QR code scans were done a reported 9.76 million times.
Many of these statistics shouldn’t be too surprising, given the fact that the beacons can be cost-effective. This is a fact that’s further enhanced by the long battery life that they could have, which is one of the primary reasons that they’ve become a popular marketing device.
With the wide range of benefits that proximity market can have, as well as the significant number of customers who may take advantage of it, companies can’t afford to miss out on the practice.
This means that you should install a beacon just to have one. Instead, it should play a role in a much larger and more refined marketing strategy that takes full advantage of the technology.