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Geo-fencing and the Shopping Experience

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  • by: Alexis Prousis

Smartphones have moved beyond convenience. They are now a necessity for most people, especially when shopping. From price checking to coupon redemption, smartphones are consumers favorite shopping companion. And, when geo-fencing and location-based technologies accompany the shopping experience, the retail possibilities and engagement are endless—and consumers are receptive!  

Two different studies showed that 59% [Ninth Decimal] of grocery shoppers and 86% [Shopatron] of retail consumers use their smartphones while shopping in store. Brands are integrating geo-fencing into their mobile apps using deal, offer and rewards programs to increase frequency and loyalty among consumers. And there's much more opportunity to be had. 

Four ways geo-fencing enhances the path to purchase

1. Uses Shopper Data To Deliver Relevant Content and Offers In Real-time

When a consumer walks through a geo-fence associated with a brand/retailer's mobile app, that consumer would receive a one-to-one notification specific to past purchases, time of day, weather, or other behaviors.

2. Consumers Want To Feel Special…and Loyalty Programs Do That

A recent study conducted by Bond Brand Loyalty indicated that one-third of respondents wouldn't show as much dedication to their favorite brands if not for loyalty programs. Loyalty programs build rapport and keep consumers coming back to a brand's mobile app, online store or brick and mortar. 

3. Increases Foot Traffic to a Brand's Store

Creating geo-fences that alert shoppers of activities, sales and content related to a brand's store when it's most relevant to that shopper increase urgency and awareness for a brand, while bringing more shoppers to that brand's brick and mortar store.   

4. Drives Consumers From Competitor Stores to a Brand's Store

Have the Walgreens app, but are near a CVS? Geo-fences placed near CVS would be triggered by a consumer's smartphone, sending relevant content or offers to use at the nearest Walgreens.

 

Shopping with geo-fences gives brands the opportunity to target the right shopper, while also building brand and customer loyalty. Brands have the opportunity to bring their app to life, increase sales and retain customers, but the key is geo-fencing.