Why Proximity Marketing is the Next Big Thing in a Digital Age
Proximity Marketing and the 4Ps
Nothing has influenced the world of marketing more than the Marketing Mix. In the late 1940s, E Jerome McCarthy introduced the world to the concept of the 4P’s: product, price, promotion, place. Of course, the 4Ps went through various iterations over the period and was followed by packaging, positioning, people and performance. Since then, the Marketing Mix has resurrected remarkable success stories for innumerable brands.
The new millennium saw the emergence of the concept Proximity. Proximity marketing uses the location of the consumer and contextual content to target consumers in a physical location. It is gaining precedence and is becoming a driving force in designing marketing strategies for brands and rightly so in the present digital age. Let’s see how Proximity is emerging as the strongest Marketing Mix in this digital world.
What is Proximity Marketing?
Proximity marketing uses location-based technologies such as Beacon, Wi-Fi, Geo-fencing, GPS, and Near Field Communication (NFC) to engage customers directly through their mobile devices. The cellular technology identifies mobile-device users who are close in proximity to specific business premises. These businesses can then target device owners with enticing promotional marketing messages.
Proximity: The Quintessential Millennial Technology
Smartphones have made proximity the most popular consumer technology. With reports of smartphone users skyrocketing and expecting to reach a staggering number of 2.5 billion in 2019, Proximity undoubtedly makes for the strongest and most compelling marketing strategy for enterprises to reach out to its digitally connected customers. The proximity industry has been growing incessantly, and according to a report by Market and Market, it is expected to be worth 52.46 Billion by 2022.
According to Proxbook, over 19 industry verticals have invested in and deployed proximity technologies with the top five being Retail, Shopping Malls, Hotels & Tourism, Stadiums & Sports and Airport. Retail, in particular, has been more aggressive in deploying the latest location-based marketing strategy and investing in proximity platforms. According to a prediction by BI Intelligence, out of 4.5 million beacons to be active by 2018, 3.6 million is slated to operate in retail space. With this prediction, retailers aim to fight back the onslaught of online shopping and connect with the millennial generation by attracting them back to stores with personalized offers and great experiences through leveraging technology.
Proximity Emerging as the Strongest Marketing Mix
Amalgamation of Mobile Culture and Digital Signage
Proximity marketing is a real-time marketing concept that perfectly leverages the two most influential trends of the modern time– the widespread reach of mobile devices and digital disruption to create a win-win situation for the enterprises as well as consumers. Mobile devices are increasingly becoming an inevitable interface for consumers to research, share, connect and even purchase instantaneously. The proximity platform capitalizes on this growing trend to create an opportunity for the marketers to reach out to their customers anywhere, anytime. Proximity marketing can also be credited with bringing the digital advantage which so far had been the sole prerogative of e-commerce to the retails outlets, thereby, turning the stores into a digital playground with the deployment of beacons across their aisle. Also, retailers can create dynamic experiences for their brands by using the potential of multimedia.
Deliver Personalized Experience
Proximity resonates with the fast-paced, interconnected, on the go lifestyle of the millennial generation who rate convenience and personalization as key to a great shopping experience. The modern day customer is ready to share more to get more! Consumers today are more open to sharing location details to get relevant advertisements on their mobile devices evidently engaging with push messages; they look forward to coupons from mobile marketing and share the deals with their friends on social media. Marketers can leverage proximity marketing, technologies, and platforms to design such targeted promotional campaigns based on location, time, inventory and not just customer segments.
Enterprise location based services provide real-time customer data and analytics so that enterprises can approach millennials in the most authentic way and connect instantaneously. Proximity marketing platform, through its connect, engage, and involve model maps the entire customer journey by promoting a better understanding through analyzing customer behavior, buying patterns, preferences, etc. A marketing strategy designed on analytics has more chances of striking a chord with customers and delivering the desired experience.
Proximity marketing is much more cost-effective than traditional marketing mediums. Conventional mediums such as mass mailing, telemarketing, or TV ads all involve substantial costs. Proximity marketing represents a dramatically superior and transparent alternative to these numbers with a one-time investment.
Location-based technologies and proximity marketing platforms like Proximity MX can help you get in touch with the digital age 4Ps through seamless, enhanced and uninterrupted Wi-Fi connectivity. Click below to request a demo.