Beacons, SMS Combine To Boost Loyalty
Today’s retail channel is so fluid that consumers move effortlessly between channels. A shopper may begin online, for example, to learn the price of a 50-in television. But that’s just the beginning.
Online, the shopper might discover he can afford a 55-inch television, so he begins his search again. Then, he realizes he’d like to view the picture quality in-person, so he searches for a nearby store. Once there, he pulls out his smartphone and looks for brand reviews online. The product has a QR code, so he scans it with his mobile device for more information. If the brand meets all the shopper’s criteria — quality, price and style — and is in the store, odds are the purchase will be completed at the brick and mortar location. If not, the consumer may opt to order online, place an order at the store, or, in the worst case for retailers, decide to postpone the purchase.
As retailers evolve to make the most of the ever-changing marketplace, they must select digital technology to enhance their model. For example, online services such as Amazon Mom offer special savings for a targeted group of shoppers: caregivers of small children. Amazon recognized that some items are purchased on a regular basis and are completely driven by need, rather than spontaneity or, frankly, fun. Buying baby wipes and diapers is a necessity for parents of young children, and once a brand is selected, there is an associated degree of loyalty, for any reason: Fit, absorbency, price, etc. Amazon takes some of the drudgery out of such mundane purchases by offering members benefits such as 30 days of Amazon Prime including free two-day shipping, 20% off diapers which are on an auto-delivery schedule, and other promotions geared toward parents.
Auto-replenishment is a terrific driver of loyalty online, encouraging shoppers to “set it and forget it.” But brick and mortars can boost loyalty as well, and in a few crucial ways are better equipped to do so. The primary factor offering them the advantage is what defines them in the first place — their physical presence.
Some stores promote loyalty by their atmosphere and their sales people. Savvy retailers understand the need to build on that using digital technology. Beacons, for example, can alert shoppers to in-store promotions as well as offer coupons and invitations to exclusive events. In return, the retailers receive analytics from which they can create marketing solutions. Business Insider Intelligence predicts that the technology will be used at 85 of the top 100 US retailers and influence $44 billion in retail sales in 2016.
Mobile devices are surging to the forefront of how people interact in today’s retail industry.
Combine that with SMS messaging, which can be used for proximity marketing campaigns, and that’s a powerful retail solution. Take a look at a recent Adroit survey of 1,000 U.S. and Canadian consumers, ages 18 to 34 and 500 U.S. and Canadian consumers ages 35 and up. Adroit found that the majority of paths to purchase are affected by digital: In both age groups, more than 70% were likely to change their plans to visit a retailer or restaurant if they were away from home and received an advertisement on their mobile devices for local deals or discounts.
The winning equation for brick and mortars? Beacons plus SMS equals efficient, affordable tools, ready to arm retailers in the battle for customers’ loyalty.
