Proximity marketing

The article provides information about proximity marketing, its types, advantages and principle of operation.

The development of technology opens up new prospects for business growth. Proximity marketing is one of the fastest ways to gain a competitive advantage in mobile marketing. All because personalization is a key factor in the success of any digital marketing campaign. Personalization is the basis for providing amazing mobile capabilities for app users.

Defining Marketing Proximity

Proximity marketing (hyperlocal marketing, or contactless marketing) is a technology based on wireless location determination for direct advertising to a client in a specific geographical area. Communication with customers can take place in the right place and at the right time using a personalized mobile message.

Types of hyperlocal marketing

You can use several methods to implement proximity marketing in your business. The most common solution types are as follows:

Wi-Fi

Connecting the user to free Wi-Fi allows the company to collect data and use it to send personalized messages (such as sending push notifications to remind customers to visit your store when they are nearby). This is one of the easiest contactless marketing methods to implement. In addition, this method helps keep the client in your organization for longer.

GPS

Geozones use GPS technology to send messages to customers when they enter or go beyond a predetermined border. It's a great tool to encourage customers to visit your store or let them know about exclusive offers and discounts.

NFC

Short-range communication allows you to exchange data between your smartphone and the NFC label. Organizations can use NFC for contactless payments, social media, contact sharing, photo or video sharing, and more.

Bluetooth

Beacons use high-tech radio signals to provide specific content and marketing messages based on location. They are easily installed on platforms to transmit personalized contextual information to smartphone users. Beacons can create interactive experiences and offer valuable information (such as displaying discounts or promotions) to smartphone users as they pass by to encourage them to stay, shop longer or make a purchase.

QR codes

QR codes are scanning barcodes that redirect a user to a specific website. It's a powerful tool that allows companies to create digital contactless marketing opportunities by simply creating code and hanging it on a wall in a store or any other organization.

How does proximity marketing work?

Contactless marketing involves several technologies. What is best for your company depends on what you want to achieve, what audience you focus on and what infrastructure you have.

For example, if proximity marketing is carried out using beacons, a Bluetooth-enabled mobile device within the beacon's range is required to transmit information in the form of text or images. Mandatory conditions:

  • the customer needs a smartphone with Bluetooth support in a certain place (next to the beacon);
  • the beacon must be correctly installed in the area where customers are located in order to send and receive marketing messages or other data;
  • customers must download and install the appropriate mobile application to receive push notifications.

Benefits of Proximity Marketing

РLocation-based advertising is changing the way brands interact with consumers. As technology in our world accelerates and customer demands become more complex, it's easier and faster for them to find like-minded brands nearby. With more connections and free access to a wide range of ideas and opinions, this has become an integral part of the functioning of the world.

In addition, the increasing use and usefulness of data means that marketers can better understand their target audience. This analysis can lead to better product design, more effective advertising, and better ways to target customers.

Improving customer service

The use of proximity marketing strategy allows the company to personalize customer interactions in a way that varies offerings based on the customer's past, present or future location and behavior.

Application usage

Using ads to provide valuable information and suggestions can improve user interaction with a business application, which can be a place where users can read regular updates, opt out of discounts, etc.

Profitability

Mobile contactless marketing is a cost-effective way to target ads to the right audience.

Improving customer relationships

Proximity advertising helps companies better understand the needs of their customers. This allows them to meet these needs to improve relationships and interactions.

Smartphones have changed the way we shop, work, communicate and live. Unsurprisingly, so many businesses are taking on the proximity marketing challenge.

Businesses reveal the benefits of marketing to customers in the vicinity. Localization is already happening as more and more companies are starting to operate on a global scale. This e-commerce trend is poised for sustained growth as it creates new opportunities for brands to grow their customer base and revenue.

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