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Location, location, location:
a guide to targeting By Giulio Montemagno, SVP International, RetailMeNot
With more than half of the population now equipped with a smartphone, mobile has become the key driver behind the growth of ecommerce. Tis year, Brits are the biggest mobile shoppers in Europe with a forecast spend of £7.9 billion, up from £4.9 billion in 2013 according to research conducted by the Centre for Retail Research on behalf of RetailMeNot. Te importance of mobile throughout the customer purchase journey is growing. Te IAB revealed in April that tablets are now the ‘go to’ device for 58% of those browsing at home. Increasing sales are the reality online, but the desktop is still a closer and mobile represents a low conversion channel..A recent study from Marin Software shows that the conversion rate on desktop computers is at 6.09% on average, while it’s only 4.6% on tablets and 2.79% on smartphones.
So why tout the power of mobile to drive sales? Te answer is to think about online and in-store sales. Mobile provides retailers with an exciting new channel to both sell and advertise. Not only can it be used to push shoppers to the website and drive footfall into stores, but it can also help convert those important bricks-and-mortar sales for retailers with a presence on the high street. Indeed, 51% of consumers are more likely to enter a store and buy something if they receive an offer for a physical store on their mobile device while they are near that store. (Research from Te Omnibus Company, April 2013) For those looking to crack the world
of m-commerce, the mobile channel has huge potential to drive traffic, influence sales and build customer engagement. With several considerations on relevancy and privacy, location-based targeting could
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be the key to unlocking shoppers’ hearts. And shoppers overwhelmingly seem to be open to giving up their location for a more relevant deal.
Oh shopper, where art thou?
Investing in location-based targeting, retailers have the opportunity to drive much higher sales by tempting potential customers with more relevant offers that they can’t turn down. What’s clear is that retailers need to consider shoppers’ location carefully, in order to build an added-value relationship with the customer. For example, a shopper who is browsing
a website while on their lunch break at work will not appreciate receiving an offer to their tablet about an hour-long flash sale in-store, whilst this same offer could send a potential customer nearby into the shop, to browse the sale and make a purchase. In the same vein, a shopper in your store
is less likely to purchase if he receives an online-only discount code while perusing items in store. In short, a multi-channel offer is often the best strategy if a retailer’s mission is to close a sale and they are agnostic if it happens online or in-store. Recent hype around beacon technology
means that many people are forgetting that there is a life outside of the micro- targeting potential a beacon can offer within location-based marketing plan. In fact, retailers can realistically target shoppers down to the aisle of a store with offers whether they are in-store, nearby on the high street or at a public event. As testing continues with beacon technology, the potential to deliver even more relevant offers to a consumer can help strengthen the bond between retailer and customer.
Don’t overstep the mark
According to the IAB, over a quarter of consumers would be happy to provide their
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