“Precision Retailing” and Indoor location-based promotions
Smart Phone GPS and mobile communication technologies are being used in limited ways such as mobile payment, digital signage and QR codes. However, the potential to really increase the size and value of each shopper's basket will occur when retailers zero in on individual shoppers, using location-based, focused advertising. We call it "precision retailing" – think of it as impulse buying on steroids.
This statement was made by Randy Evans, wirting in Progressive Grocer in an article entitled "Precision Retailing." It all boils down to big data and analytics. Evans goes on to say:
Reaching shoppers through a new medium in real time sounds great, but without a reliable back-end IT infrastructure, it still boils down to hit-and-miss marketing. Combine real-time personalized promotions with the weight of your shoppers' point-of-sale transaction histories, and we're talking about a serious market advantage.
We are in the age of location-based marketing. The catalyst seems to be indoor positioning and the ability to capture real-time information, social chatter and transaction data. Retailers have always been able to capture transactions and buying patterns but the anty has been uped because retailers need a better way to improve already slim margins.And the way they are trying to do it is at the point of sale. To do that they need to grab the attention of the customer for more impulse buying. That's where mobile alerts are coming into play. The technology to facilitate this will be indoor positioning but while the technology is available, the analytics to process the data and the ability to get it into the hand of the merchandizing manager are only just beginning. Location analytics are still just getting traction and how merchandizers put these data into action still need use cases. But you can see the start of something very big.