UK brands to invest in Proximity Marketing
The major (79%) of major UK brands are planning to invest in proximity marketing within the next six months, according to a study of brand marketers commissioned by proximity marketing and engagement specialist Airspace.
Almost all respondents (99%) are either already investing in (28%), are in the process of doing so (51%), or are considering (20%) trialling or investing in a proximity marketing campaign. It was also revealed that of those, 79% are planning to implement proximity marketing campaigns within the next six months.
Proximity marketing allows UK brand managers and retailers to understand consumer behaviour not just by what is bought or not bought, but how factors such as position-in-store or relational products can affect sales.
In store, proximity marketing can up-sell, cross-promote, incentivise, engage, educate, entertain and, increasingly, handle the sale itself. The survey revealed that 80% of respondents say this ability to gather more accurate data to better understand their customers is an important benefit of proximity marketing.
Almost four in five (79%) respondents say proximity marketing is useful for knowing how much time customers spend in-store, and 81% say it is useful for understanding which products customers dwell near but do not buy (84% say store analytics is helped by understanding hot and cold spots).
And 50% of those surveyed say they would use proximity marketing to draw people to specific locations within company stores or sale points, and 47% report they would use them to encourage passers-by to enter or investigate company stores or sale points.
Indeed, four out of five marketers (80%) said the ability to drive loyalty with their customers is an important benefit, and over three quarters (76%) report the ability to better engage with their customers is extremely beneficial.
Some 95% of respondents say that having more knowledge on how to conduct a trial or start a proximity marketing campaign would encourage their company to invest more.
Similarly, 94% say they would be likely to invest more if there were more cases to demonstrate success with 96% saying they would invest more if there was the ability to gather deeper analytics to measure success.
"Brands that utilise proximity marketing to deliver relevant, contextual messages tend to see an upturn in conversion rates - and arguably have more loyal customers," concluded Airspace CEO, Ian Malone. "Even the brands that use the technology simply to understand their customers better stand to gain a competitive advantage over those that don't have access to the kind of rich data and insights that proximity networks can deliver."
Sources: Airspace / The Marketing Factbook.
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