Proximity Marketing: Its Application & Benefits for Businesses

Proximity Marketing: Its Application & Benefits for Businesses

In order to increase their bottom line, business heads need data that can generate information about their customers, both one-time and recurring. Information such as likes & dislikes, time spent at a particular store/point, and engagement with other recreational zones among others when gathered can then be used for planning an effective proximity marketing strategy.

What is Proximity Marketing?

Proximity marketing, the new wave for large facilities help communicate with their customers in real-time while personalizing notifications right to their Smartphones. It is a system that uses technology to directly communicate with customers via adaptable devices. This is the modern way of targeting the visitors and the best part of it is that it engages them as well.

Isn't that a great news for large facility marketers?

How Does Proximity Marketing technology Work?

First of all, we need to understand the fact that this feature can be enabled with an indoor positioning platform only.

Once integrated into a Smartphone app, proximity marketing works to fine-tune the approach of the facility to improve customer experience and engagement.

Go through these points to know how it works:

1. Firstly, beacon technology is deployed within the facility, within the range of the store.
2. Bluetooth enabled Smartphones detect these signals and send the ID number attached to these signals to the cloud server.
3. Now with the help of this ID number, the server responds accordingly and sends notifications to the respective customer in the form of discounts, new products, feedback, or even greetings.

Hence, proximity marketing works best for both entities, the customers and the management. This survey has more details.

shopping-mall

Proximity Marketing with Beacons - The Fifth 'P' for Business Marketers

A renowned marketing professor Edmund Jerome McCarthy from America in his book titled Basic Marketing proposed this concept of 4Ps of marketing in the 1960s. The 4Ps being Price, Promotion, Product, and Place, the basic marketing mix.

Today, with rapidly growing market trends and indecisive customers, the need for the fifth P has evolved and, therefore, Proximity Marketing. Visitors in large facilities are looking out for something that can notify them with exclusive offers even before they explore the store.

Here it is then, with proximity marketing with beacons, facility heads can target their customers based on their previous interactions, and make them avail discounts, made exclusively for them.

Proximity marketing with beacons becomes very important in order to seek the attention of the digitalized masses of the 21st century.

Proximity Marketing with Wi-Fi

Ever heard of Wi-Fi being used as a proximity solution? No right! However, with the widespread usage of Wi-Fi among the masses, marketers are now using it to send notifications. With the help of Wi-Fi hosting website, managements of the facilities will be able to send location-specific content to the visitors. Technically, Wi-Fi is not the best fit for proximity based marketing though because of the less accuracy it provides.

Proximity Marketing with RFID Based Systems

The most common usage of RFID tags is to track store products and inventories in warehouses. After its introduction in 2003, it received great recognition from the masses, however, it was ephemeral.

The biggest challenge for the large facility owners in deploying this technology in their facilities was it required various components. Tags, readers, apps, and much more such hardware is required to setup an RFID technology.

In short, it needs a substantial amount of investment upfront as it does not inherit compatibility with mobile or other platforms.

So, proximity marketing with RFID is a costly affair and business heads have too many pockets to feed.

The traditional strategy of sending push notifications and discount coupons to visitors is long gone. It is time now for personalized content delivery. The role of the modern proximity marketing is to enhance and attract the customers' store experience and in the process build genuine loyalty and gather feedback as well.

With proximity marketing in industries such as shopping malls, aquariums, museums, convention centers, warehouses, among many. the scope for enhancing their visitor experience and increase in bottom line is much certain.

Additional Benefits of Proximity Marketing Solutions

Apart from notifications, enhanced customer experience, and customer personalization, it can offer benefits such as:

• Customer Engagement - It is already an observed fact that more than 75% of customers have associated themselves with a Smartphone app to avail the benefits of proximity marketing while they are shopping.

• Customer Insight - To know what your customer is looking out for is impossible but with proximity marketing, the entire purchase map of your customers can be gathered at the end of the day and, henceforth, you can drive your consumers in their future visits.

proximity-marketing

• Hyper Customer Personalization - Based on the data you gather on each customer, the mall heads can hyper customize the selected customers with much higher discounts as a token of gratitude. This will certainly double the visitor engagement.

• Higher Conversion Rate - The fact that your interaction within the facility is recorded and customized, the consumers are by nature motivated to buy. Therefore the conversion rate of engaging will convert to buying.

• Mass Personalization - Multiple customers at once can be personalized with each one's data scrutinized digitally to avoid any form of miscommunication or confusion.

The leading retailing businesses across the world like McDonald’s, IKEA, Amazon Go Store, etc. have already integrated proximity marketing within their businesses and have improved their bottom line.

proximity-marketing

Proximity Marketing Will Create a Win-Win Situation for Businesses

Looking forward to the near future, business heads will use this technology to collect critical visitor behavior data and allow them to engage them in a better way which eventually will result in a healthy RoI.

However, proximity marketing is not confined to beacon technology alone. Depending on the facility and the services it demands and their budget, marketers will have to pick the relevant one and break the gap between online and offline customers to reach out to larger visitor segments.

About Pigeon

Pigeon is a positioning and navigation solution built for the enterprise.

Based on Geolocation tech, Pigeon aids in indoor positioning, indoor navigation, asset tracking, indoor location tracking and event management among others.

Pigeon’s real-time location tracking technology enables location based services for shopping malls, healthcare facilities, corporate campuses, and museums to name a few.

Types of Indoor Positioning Systems [Key Features of Indoor Navigation, Magnetic Positioning and Indoor Localization Technologies]

Types of Indoor Positioning Systems [Key Features of Indoor Navigation, Magnetic Positioning and Indoor Localization Technologies]

Indoor positioning is the most commonly used umbrella term which includes all of these ‘indoor GPS’ technologies. However, when observed closely at the technological platform they thrive on, the rationale for using these varied terms to describe them individually becomes self-explanatory.

Indoor navigation, magnetic positioning, and indoor localization refer to technologies adopted by large facilities to help them locate objects, spaces, or people inside the facility where the satellite-enabled Global Positioning System (GPS) does not work due to the infrastructural elements such as walls, cabin material, glass, etc. In order to counter this challenge, Indoor Positioning Systems (IPS) use a wide array of platforms to enable users locate and navigate within a facility, wayfinding to their points of interest.

Types-of-indoor-positiong

One of the primary reasons for incorporating this technology within a large facility is the flexibility it offers inefficient facility management. Once adopted, users can effortlessly locate, navigate and way find on their smart devices.

An extension of these technologies makes Location Based Services (LBS) possible as well.

Indoor Positioning Technologies - Key Features

So what are the key features of these three positioning technologies? What industries can they be adopted by to help manage the facility better? Which is the most cost-effective type?

It has been eruditely mentioned in an article in 2013 that for this technology to be successful and arrive at a point where precision becomes the norm, a combination of technologies such as Wi-Fi, Bluetooth and Ultrawideband may be the answer. Towards the end of the article even leveraging benefit from Internet of Things (IoT) was mentioned, which as we know today, is a reality that has emerged faster than it was predicted.

The table below lists these three terms against parameters used to identify them. With growing focus on the applicability of these technologies, as mentioned in this highly engaging feature, it is important to understand the fine differences between these three terms as well.

Indoor Navigation Magnetic Positioning Indoor Localization
Used for Navigating inside a large facility Locating people or objects inside a building Locating a device or a user inside a building
How does it work? Uses radio waves, acoustic signals, and other sensory information Uses magnetic sensor data from a Smartphone Recommended for use with Wi-Fi & IoT
Technology platform Wi-Fi, Beacons, Bluetooth, Radiofrequency Magnetic Fields within a facility Wireless Infrastructure with IoT
Accuracy 80% and above 90% and above 95% and above
Industry applicability Office Spaces, Wildlife Parks, Resorts, Shopping Malls, Convention Centers Office Spaces, Shopping Malls, Warehouses Hospitals, Shopping Malls, Disaster Management
Indoor Data Tracking Possible Possible Possible
Additional Infrastructure Wireless Infrastructure, Beacons, etc None Wireless Infrastructure
Cost Subject to hardware installation Comparatively cheaper Subject to hardware installation
Works as a mobile application? Possible Possible Possible

What can be gathered from the above chart is that using an IPS will have to be based on the industry it is set to be implemented in.

However, as has been written about in our earlier blog posts, a facility needs much more from a mobile application than positioning and navigation alone.

Hence, the success of any of these three technologies lies in seamless integration with other features like indoor navigation which would help in superior facility management.

How Important is Accuracy and How Accurate is an IPS?

Let’s not forget the fact that an IPS should not be evaluated by its accuracy alone, though accuracy defines the effectiveness of the technology. And with recent improvements in algorithms, it’s much safer now to call IPS the most accurate technology for navigating as GPS systems do not work effectively indoors. This journal article has plenty of details on the accuracy of an IPS.
indoor-navigation-system

Tracking People and Objects

The safety & security of people and objects is assured with IPS as it can control people and restrict them to certain areas. Also, it gives a visual overview of all the personnel within the house which makes it easy to monitor.
IPS plays an important role in facilities that need to track personnel and ensure accountability of their safety as well. For instance, while someone (personnel) is in a static position in a space not meant for them, this technology will identify it and notify the management instantly.

Additional Benefits of IPS on Tracking People and Objects:

• Protection from theft and misplace of assets
• Assurance of tracking compliance and protocol
• Helps avoid accidents and enhances the safety of the workers and the visitors
• Tracks suspicious gestures and optimal employee accountability

About Pigeon

Pigeon is a positioning and navigation solution built for the enterprise.

Based on Geolocation tech, Pigeon aids in indoor positioning, indoor navigation, asset tracking, indoor location tracking and event management among others.

Pigeon’s real-time location tracking technology enables location based services for shopping malls, healthcare facilities, corporate campuses, and museums to name a few.

How Wi-Fi and Bluetooth Enable Functioning of Indoor Positioning Systems (IPS)

How Wi-Fi and Bluetooth Enable Functioning of Indoor Positioning Systems (IPS)

Wi-Fi and Bluetooth technologies in large facilities can be availed to enable indoor positioning systems for better asset management and indoor location tracking. Here is a brief exposition of how the technology works using various wireless systems.

At the outset, let’s understand that indoor positioning technology is an umbrella term with many connotations, yet referring primarily to indoor positioning and indoor navigation. Based on a facility’s requirements, the adoption of different types/mediums such as Wi-Fi and Bluetooth are used in order to serve several purposes, with positioning and navigation being predominant.

Also, read our blog All You Need to Know About Indoor Positioning and Navigation Systems

How Does an IPS Work?

In this hi-tech era, we hardly hear people getting lost in a new city or navigating to new places in their place of domicile as Smartphone’s with internet and GPS enabled in them make locating points of interest an effortless, and sometimes an enjoyable task.

However, how do we navigate when we are indoors in a large facility such as a shopping mall, a healthcare center, an educational institution, or a place like an amusement park?

Much like how GPS helps us navigate outdoors,  enabling IPS with the help of Bluetooth, Wi-Fi and Sensors can aid visitors in wayfinding and reaching their desired spaces with ease inside a facility.

IPS works through several categories such as:

Proximity Positioning- With the help of a receiver or a device, the proximity of the locations are detected and delivered as output. These proximity-based systems have the ability to detect the general location of a person, object or service rooms within the facility based on several technological platforms such as:

Indoor Positioning System

  • QR Codes / NFC tags
  • Bluetooth
  • Visible Light Communication (VLC) devices
  • Wi-Fi Access Points
  • Ultrasound devices

Fingerprint Positioning- This system is built through signal measurements across the facility to compute the position of the visitor. However, it is hypothetical because every position within any facility is almost unique and incomparable to the other.

This system is most commonly used to improve the accuracy of other positioning technology within the facility and moreover, combining multiple sources can increase the accuracy of the technology which can eventually lead to productivity. Similar to the above system, fingerprinting also uses similar technological platforms such as:

  • Bluetooth
  • Wi-Fi
  • Magnetic field

Apart from Bluetooth and Wi-Fi, there are other platforms as well which chip-in based on the implementation costs and the precision in locating the visitor intended destination within the facility.

The chart below will give you a deeper understanding of indoor tracking.

Indoor Tracking

Just like the way GPS functions outdoors, it is IPS that does it indoors. Often placed in large facilities like shopping malls, zoos, convention centers, resorts, etc. IPS aids visitors on a real-time basis displaying pathways and shortest routes while ensuring management of these facilities obtain necessary data to make more informed business decisions.

IPS is in itself a technology which is blended with a combination of other technologies to provide the best possible precision and accuracy for visitors at large facilities.

Fingerprinting and proximity positioning can together increase the rate of accuracy as high accuracy is the need of the hour in indoor tracking services.

Not all facilities require precision and accuracy but facilities that have large tracts of the area and huge infrastructures need to deploy IPS to serve the twin purposes of indoor positioning and indoor navigation within the facility.

 

About Pigeon

Pigeon is a positioning and navigation solution built for the enterprise.

Based on Geolocation tech, Pigeon aids in indoor positioning, indoor navigation, asset tracking, indoor location tracking and event management among others.

Pigeon’s real-time location tracking technology enables location based services for shopping malls, healthcare facilities, corporate campuses, and museums to name a few.

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