Vectaury blog

GEOLOCATION DATA, RETAILERS' NEW SECRET WEAPON

THE OMNIPRESENCE OF THE MOBILE AND THE RETAIL REVOLUTION

Inevitably, the digital revolution is shaking up consumers’ behavior and their way of thinking on a daily basis.

According to recent studies*, figures on smartphone usage show that an average mobile user uses his smartphone more than 150 times a day. In 2017, the mobile phone became the number-one Internet advertising channel in the world.

Faced with these major changes in usage, and the exponential growth of e-commerce players, the retail sector has not been left behind. Consumers still make their essential purchases in brick and mortar stores, representing more than 90% of retail sales.

Given that the conversion rate in brick and mortar stores is 20 times higher than on commercial websites**, generating in-store traffic remains undeniably the best way to increase a brand’s sales.

Thus, the mobile phone is the best bridge between the digital and the physical worlds, and the best way to carry out a drive-to-store campaign which will lead to the mobile user to visiting a store.

Personal, omnipresent, impactful, the mobile phone is a powerful ally for retailers and brands, allowing them to target their audience in real time, to measure, automate and optimize their marketing efforts, but also to reinvent themselves in order to compete with Internet giants.

GEOLOCATION & PREDICTIVE MARKETING: DRIVE-TO-STORE RECIPE

With the mobile phone, geolocation is becoming the real-world cookie. An individual’s activities in the real world are far better indicators of intention and interests than those of his online activities: “tell me where you are and I will tell you who you are!”

Today, players specializing in “geo-profiling” are emerging. They are able to use geolocation data to establish consumers' robust, qualified, profiles, “Buyer Persona”, and to learn about their residence, their workplace and consumption habits while remaining respectful of their privacy and personal data.

By using prospects’ robust and qualified profiles, you can today target prospects who are regularly found with in a store’s geographic zone, at any time.

By the use of an optimization algorithms, data science can measure the performance of mobile campaigns and improve geo-targeting for future campaigns based on the results.

Finally, some emerging player can go further in their analysis by anticipating and predicting mobile users’ needs, behaviors, buying tendencies, as well as traffic to the stores and its influencing factors.

AND TOMORROW? PERFORMANCE, OUT-DOOR & IN-STORE ROUTE, PRIVACY

It seems obvious that Drive-To-Store will enter a mature phase when its impact is measurable, no matter which device is used by the prospect (mobile, PC, tablet, etc.). In fact, we have very high expectations from new mediums compared to traditional Offline ones (signage, radio, flyers, etc.).

Other promising in-store technologies could easily grow stronger. Accurately measuring of in-store user activity, such as in store route, represents a real opportunity for retailers. In the future, retailers could also adapt marketing efforts to precise in-store locations, based on accurate data. 

 

Lastly, one of the major issues is the ability of technology players to be able to fulfill their value proposition while still guaranteeing the protection of personal data. This “performance & privacy” tandem is what will allow Drive-To-Store to claim its place in revolutionizing digital marketing.

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*NUMÉRAMA STUDY

**L’EXPRESS STUDY

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