How Proximity Marketing Is Pushing Sales.

How Proximity Marketing Is Pushing Sales

Posted on June 7, 2016 by

The “Four P’s of Marketing,” (Product, Price, Promotion and Placement) have been used as the primary pillars of marketing strategy since the 1960s, serving companies and investors very well.

And although the Four P’s have gone through various iterations over the years, I believe that another “P” – “Proximity” – is most relevant to investors today, as it represents the final connection between companies and consumers. With Bluetooth-enabled devices and a consumer who has expressed a willingness to receive ads, leading retailers and brands including Apple, Macy’s, Coca-Cola and more are utilising Proximity Marketing to close the last gap between the customer and the register.

proximity marketing

The idea of Proximity Marketing, the physical location of a product with respect to the consumer, involves a new dimension previously untapped given the limits of technology until recent years. Sometimes called hyperlocal marketing, Proximity Marketing uses cellular technology to send marketing messages to mobile-device users who are in close vicinity to a business.

Via a Wi-Fi or Bluetooth signal, proximity marketers can send content similar to an app that appears automatically on the smart devices of consumers. While the audience is limited to those in the proximity of the business and allowing a wireless signal, the message is very user-friendly and reaches those most likely to buy.

Why Should Investors Care?

According to JiWire, the facts are clear as it relates to the value of Proximity Marketing:

  • 53% of consumers are willing to share their current location to receive more relevant advertising.
  • 57% of consumers are more likely to engage with location-based advertising.
  • 62% of consumers share local deals with friends.
  • 63% of consumers feel a coupon is the most valuable form of mobile marketing.

Targeted offers based upon proximity leads to higher conversion rates.

In an article on iMedia Connection, we talk about Apple’s and its role in Proximity Marketing. “Apple created a wave of excitement in the retailing world last fall when it released iBeacon, a proximity messaging system based on Bluetooth Low Energy (BLE) location beacons and integrated into iOS.

By making hyperlocal messaging into the operating system and letting apps send push notifications seamlessly, iBeacon and similar capabilities in Android promise to make hyperlocal marketing a much bigger reality.” Even if you are not pushing offers to willing consumers, a big initial contribution of hyperlocal tracking may be improved analytics rather than proximity messaging.

Macy’s, an early adopter of Proximity Marketing, announced in September that it will be rolling out the technology to all of its stores after a successful pilot last holiday season.

This will be placed inside certain store departments and allow Macy’s to send personalised department-level deals, discounts, recommendations and rewards to customers who opt-in to receive the offers.

Proximity Marketing

In addition, brands such as Coca-Cola, Procter & Gamble, Levi’s and Kraft have implemented InMarket’s version of the technology. InMarket has reported that interactions with advertised products increased 19 times and in-store app usage was 16.5 times higher for users who received a beacon message.


An Effective Tool For Generating Higher ROI

Proximity Marketing has tremendous revenue-producing potential, allowing everything from retailers, hotels, casinos and more, to deepen their connection with consumers, encourage more loyalty and greatly improve the customer experience. Importantly, all of these factors combine to make Proximity Marketing a very effective tool to generate higher ROI for businesses and advertisers.

Let us know your comments below and if you are interested in learning more about Proximity Marketing by seeing our Proximity solutions.

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