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  • Mar 2024, 10:51 AM

Why is proximity marketing the next big thing?

Why is proximity marketing the next big thing?

If you have not begun toying with the idea of investing in proximity marketing, then you should consider this as a wakeup call! Let's look at a few consumer and industry trends that highlight why investing in proximity marketing is the need of the hour.

  • Your competitors are already getting smarter by embracing proximity marketing
    • 71% were able to track and understand customer browsing and buying patterns
    • 65% were able to target customers down to the aisle level
    • 59% of customers were more engaged in the store
    • 53% were able to create more relevant and compelling offers in the store
    • 24% saw an increase in sales
    • 24% saw an increase in offer redemption
  • Your customers have already dedicated their attention to their phones
    • The average clickthrough rate (CTR) for beacon based push notifications can be as high as 80%, according to the data published by push notification technologist Kahuna.
    • The average clickthrough rate (CTR) for an email is 1% to 3%, according to a recent report by Mailchimp
    • The average clickthrough rate (CTR) for a Facebook ad is 0.119%, according to a recent Wordstream report¬†

Although, companies such as Coca Cola that ran proximity campaigns through their own app have seen CTRs as high as 50-60%, most companies do not see such high CTRs. Typically the CTR of a beacon campaign in 10-12%, which is still 10 times the CTR of an email campaign and 100 times the CTR of Facebook ads.

  • The online world is fast coming offline

At the Digital-Life-Design (DLD) conference, Scott Galloway of NYU Stern stated that "brick and mortar stores are the new black in the world of e-commerce". He stated that going ahead, pure play e-commerce will not work, and that the future of commerce lies in an omni-channel strategy that blurs the online and offline worlds. This is one of the main reasons why pop-up stores have exploded and are currently fueling the retail revolution. In fact, according to PopUp Republic, the pop-up market has grown to become an industry worth approximately $10 billion in sales.

 

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