4 Technology for Effective In-store Proximity Marketing

Mobile Apps notifying users when something new and interesting is nearby are now enjoying a big influx of excitement. Why is the technology so, trending right now? This is not a new innovation. User Experience, bandwidth availability Timing, smartphone ubiquity and also the explosion of Android devices – more than 70% of people have smartphones that can really leverage the tech. Or is it the acceptable level that changed drastically?

The retail industry is going wireless by adapting new technology of proximity device, Smartphone, Bluetooth promotion – Bluetooth proximity sensor, Beacon and much more. The in-stores are thus taking the privileges of opportunities and earning high revenue on investment.

Shopping Apps: Shopping is an in-store feature. A large number of stores offer in-store apps that enable the buyer to use digital coupons, find out whether the store carries the particular product, and enable the store to manage their products in the store. It also comes with easy to swipe and share options for the shoppers.

Some of the retailers also offer reward points, which can cut down the expense while making payment. In addition to time and energy saving, the shopping apps maximize the retailer’s checkout range, thus enabling a customer to buy more products with fewer employees. With the delivering coupons of the customers, the retailers can get the consumer data and analyze that for any future use. mega-stores like Walmart launched several features that allow customer profile creation, browsing weekly in-store ads, the creation of shopping lists, in-store pick up, etc. Members of the app can also earn additional gift points that they can redeem later at the store outlets. This encourages shoppers in coming back again and again into the store.

Personalization and Affinity Marketing:

With so many buyers moving toward online purchases, in-store retailers must put an extra effort to put relevant products (that can be predicted by predictive analysis) in front of their users to escalate the store sales.


Affinity marketing creates customers tailored to brands. Suppose you have a Company selling “Running Shoes” and your target is the sports fans for a good sale. But that is not something suggested by Marketing Strategies. You need to target avid marathon athletes instead to enjoy a good sale.

With tracking process and personalization, customers can track, analyze and understand the buying behavior of the customers studying their past purchase record. By curated system, a retailer can also recommend merchandise that was related or compatible with the ones already purchased by the customer to enhance sales and build customer satisfaction.

Predictive Analytics and Retail Insights:

Retailers are utilizing predictive analysis tools to understand retail insight and thus personalize the shopping experience of the users and thereby improve in-store sales. Customer data is pretty essential to influence the business decision of any in-store that includes staffing, inventory management, plan reward program and redesign their in-store.

In-Store Wi-Fi:

According to the latest report, more than 28% of participating in-store of all types and all sizes, experienced increased customer loyalty after launching in-store consumer Wi-Fi, which came along with more than 2% increase in overall sales. Nearly 21% of retailers also reinforced the fact that their shoppers spent more time in the brick-and-mortar, and so… Big Thanks to the In-Store Wi-Fi.

In-store Wi-Fi empowers both customers and in-store sales representatives to gain more information about stocks while in the store.

Online Retailing is growing by the day with the breadth of utility and customer appreciation. If brick-and-mortar wants to stay competitive, adoption of these tech newbies can be the key to sustaining a cutting edge in the era.

Beacon Technology and Proximity Marketing in Retail Stores

Indian Retail market until recently was looking for 4 conventional P’s that would help them to swing their business in full motion. These includes – Product, Promotion, Price and Placement. But from now onwards a new P has managed to make its stable room within these. And this game changer is Proximity Technology.

Proximity Marketing has unlocked a new door in the Retail world. Be it India or abroad, Location-based marketing is steadily making its place in the business world.

Retail world with the use of Beacons

Retailers with the help of “Beacons” can push appropriate advertisement content to customer’s smartphone based on his/her location in the retail outlet. The future prospect of beacons will be discussed, but let us go through its feature and let’s check how beacon can interact with applications in smartphones.

beacon technology

Beacon Technology

Beacon use radio waves to transmit signals to the smartphones in a short range up to 70 meters by using Bluetooth Low Energy (BLE) technology. It accesses a CRM database to get a detail report of the customer profile and hence can send customized offers judging the past buying behavior of the customer.

The customer needs to install the apps of the retail in their Smartphone and keep the Bluetooth ON to receive the offers. It can range from Promocodes, Couponcodes, Gift vouchers, Discount offers and Product information.

Beacon Engagement Facts

Proximity sensors can engage your customer for a long time and provide a great shopping experience for your customers. Understanding the previous shopping experience a more personalized discount offer or promotion voucher can easily be sent.

Use Cases in “in-Store Retail”

Consider these scenarios mentioned below and discover how beacons can help increase in-store customer engagement and provide insights to drive sales.

Beacons installed counter can help feed data for instore analytics. It gives perfect research result for the products bought, displayed product, the launch of new product and stock clearance report generation.

Data can also be collected based on the stores visited by the customers, products having a good sale without any discounts and products are not getting many sales with good offers and discounts.

After the purchase is made by the customer, a loyalty program can be sent to the customer that can benefit him in his future purchase and help him to stick to the retail shop. With the installation of the apps, the customer can share feedback and avail redemption offer sent as notification.

Thanking the customer for shopping, discount vouchers or codes for future purchase or codes they can share with friends and families can be sent. This will again be an attempt to encourage sales.

Marketing Cost: Traditional Marketing VS Proximity Marketing?

With strong competition from the online sellers, brick-and-mortar retailers are looking for innovative methods to share promotional offers with buyers.

The Recent recurring cost of Retailers for advertisement are like printing pamphlets, advertise through big and bright hoardings, Television Advertisement and many more! Use of Beacon Technology can be a suitable yet inexpensive tool that can offer best promotion 24/7. It is free from any random maintenance. The only investment you have to make is to buy batteries that too last for 2-3 years.

Data Speed in Beacon Technology

Beacon device uses Bluetooth Low Energy (BLE) technology for proximity marketing, so customers are not in need of any internet access. They just need to use Smartphone with Bluetooth option, and they should keep it ON. For the retail outlets normal 2G and the 3G connection are just enough for proximity marketing using the beacon technology. In addition to this, more and more users are getting accessed to the internet every day and 4G is about to blast the market, so there should not be any annoyance caused by lack of speed.

Outcomes and Benefits of Beacon Technology

Beacons has already been implemented by a plethora of retail giants. Apple, Coca-Cola, LORD & TAYLOR, Levi’s, Virgin Atlantic, MACY’S are some of the beacon’s clients wherein beacons have been successfully implemented and where shoppers are enjoying benefits.

Our Recommendation for Beacon usage

Beacon Technology is accelerating in India. Retailers should look at embracing this technology to create a proximity environment to get an early player advantage and increase business before the opposition catches on.

India is to become the second largest smartphone market in the world by 2017. Users are sure to lap up data services in smartphones with the proposed low rate of 4G net service. This makes smartphones a tool for omnichannel marketing of retail products.

So don’t stay behind, run the race of success.

Proximity Marketing: a Way to Combat with the e-World


The localized method of transferring advertising contents for a particular place or location is known as Proximity Marketing. The transformation is done mainly through wireless channels. The people or the customers who want to receive the messages can receive it through various devices like their smart phone, laptops or any other Bluetooth enabling devices.

The Various Ways to Determine the Location of a Device Are as Listed below:

  • The Smart Phones or the cellular phone within a particular location.
  • Devices with Bluetooth or Wi-Fi facility.
  • The GPS enabled devices with a strong internet connection.

A NFC accessible device that can read a RFID chip that depicts the news of a Product launch or a media launch at a particular location. The information is collected in the form of localized contents that are collected via the internet servers.

mobile proximity marketing

Proximity Marketing has various utilization but how the Retailers are benefited out of it is the main matter of concern here. If someone goes by the definition of proximity marketing it is said there that proximity marketing is all about providing information about the people of a particular locality at a particular time. In this way the retailers can collect information about their targeted customers of a particular location.

How Do the Bluetooth Proximity Marketing Techniques Work?

Proximity Marketing like any other marketing involves selling or marketing of the product to their targeted customers. However the proximity marketing messages are accurate and are confined to a particular location at a particular time.

Following are the process through which the Bluetooth Proximity Marketing works:

  • The Data or the information collected through various Bluetooth enabled devices, or through internet are transformed into the form of images, text, data, audio, video or even sometimes in the form of games are sent to the targeted customers via their smart phones, laptops etc. Sometimes the retailers also send the messages when the customer is standing in front of a particular product.
  • Through push messages about the things or the products that the customers are seeing in the shop.
  • By sending various coupons containing discounts or offer for individual or group of customers.
  • Through various social networking sites like Facebook, twitter etc. The Data collected from these sites helps in proper segmentation of the customers. This way the Retailers are also benefited as they can approach their targeted audiences or the customers much smoothly.

Beneficiaries of Proximity Marketing:

Proximity Marketing has no doubt strengthened the relationship of the retailers with their customers. The engagement level of the retailers and their customers is much high with this marketing technique. The retailers can now their customer’s individual behavior, needs and wants. It also helps the retailers to privatize their products according to the individual customer’s choices or preferences.


Since smart phones have now became the necessity of every human being proximity marketing in this context have a much long way to go and help the retailers to shine in their business. This can be the only way the brick-and-mortar store retailers can combat with the e-retailers.

Proximity Marketing Together with Micro-Location Marketing Can Give a Better Result for Retail

The dictionary meaning of micro-location marketing implies to the process of using Geo demographics with that of marketing or to be more accurate we can say as the consumer marketing. As the name suggests micro-location marketing is a marketing technique or strategy where the advertisement messages or the contents are being targeted to a small group of people, thus the messages are meant for a group of targeted consumers. This process of marketing is widely being used the companies or the brands that segments their customers into small groups. These companies or the brands pay much attention to certain characteristics of their customers like their buying habits, their likes and dislikes etc.

Micro-Location Marketing Strategies:

The various micro-location marketing strategies involve;

  • All the strategies that are made for micro-location marketing process are based on either the local market or an individual targeted market . This involves having a clear observation on the style, size or pattern of the market.
  • Another thing that is kept in mind for micro-location marketing is to divide the whole lot of customers into small groups.
  • The most important objective of the micro-location marketing strategy is that the messages of this type of marketing are being targeted to an individual customer. This led the companies to have complete information about their customers.

Usefulness of Micro-Location Marketing:

This process of marketing helps the E-Commerce websites to track their customers easily. This in turn helps them to prepare their advertising messages accordingly. By knowing their customer’s demand these websites can display the product which the customer is in need off.

Potentiality of Micro-Location Marketing:

There are various potential of micro location marketing which are as follows;

  • It helps to attract more customers by raising their instinct of shopping by sending promotional messages, advertisement to the targeted group of customers or to a micro level of people to whom this advertisement matters.
  • By knowing the customer’s behavior it helps in delivering the messages or alerts of sale that the customer need or demand.
  • Helps in making more personalized content for individual customers like offers, discount, etc.
  • The companies can provide various details about a specific brand which will be beneficial for their shoppers.
  • Help in increasing the customer loyalty by linking or merging the real time offers with that of the micro location.

Levels of Micro-Location Marketing:

There are four levels through which the micro-location marketing works. These involve;

  • Segments
  • Niches
  • Local Areas
  • Individuals

Proximity Marketing and Micro-Location Marketing:

With invent of Proximity Marketing the most common terminology that we come across is the virtual shopping. This is quite true that the process of marketing have become much more easy and first with the help of mobile marketing or proximity marketing. Proximity Marketing has made the process of marketing much more personalized than it was before. Now the brands or the companies can track their targeted customers easily via the Bluetooth or Wi-Fi present in their Smartphone. This low energy beacons help to sent on spot messages to the customers. Proximity marketing also helps the brands or the companies to follow their customers through various social networking sites like Facebook, twitter, etc. the companies now pay much more attention in tracking the customer’s behavior. Knowing the customer well is an important objective of micro-location marketing and this is being possible through proximity marketing.

micro-location marketing
micro-location marketing

Image credit: mdgadvertising.com

Will Digital Coupons Win over the Paper Coupons in the Coming Years?

Proximity marketing is not a new concept among the Retailers and the Customers. However Bluetooth proximity marketing is a latest trend introduced now a day.

Every smart phones or mobile phone and tablets have a Bluetooth access facility in today’s world. Thus this also known as the mobile proximity marketing or the Bluetooth proximity marketing. Bluetooth is nothing but a short range wireless system that can transmit information as well as can also receive information from other devices without the use of any wires. Bluetooth proximity marketing involves transmitting promotional messages, videos, and images through this Bluetooth supporting devices. The messages are transmitted through the Bluetooth broadcasting equipments or devices and within the range of area where the transmitter is placed. These transmitters are known as the Beacons.

digital coupons


The main objective of Bluetooth proximity marketing is to reach the customers directly to market a product. Bluetooth proximity marketing helps in finding out the individual customers and targets him or her at the right time and at the right place. The retailers are thus highly benefited by this system of marketing.


Retailers Benefit:

The retailers throughout the years are practicing several ways to market their products in a right manner by satisfying their customers. The Retailers are benefited from the Bluetooth proximity marketing in various ways. The retailers can send messages images, text to a customer even if he or she is present in the store physically. The customers can send relevant push messages from the retailers about a product that the customers are seeing or opting to buy.

Now a day the customers have a larger exposure to various online sites through which they can enhance their buying. The Bluetooth proximity marketing in turn helps the retailers in segmenting the customers. They help in segmenting depending upon the customers, Facebook login, etc. Thus these type of marketing strategies help to engage with a large number of audiences at a time. These help in direct communication with the targeted customers.

Additionally through this way of marketing the retailers’ track who is in the stores, what are the areas that are attracting most of the Customers. The Retailers can also improve their promotional contents Band messages by finding out which content is attracting more customers and which not.

Thus through this the retailers helps the customers to enhance their overall shopping experience.

Customer’s benefit:

The customers are also benefited in various ways through these Bluetooth proximity marketing. They can pay their bills trough Bluetooth much quickly than before. This system is also much more pocket friendly. With the push of a button, the customers can now pay the bill once they are registered to the shop.

Paper Coupon vs. live Coupon:
If we look into the statistics we will find that the use of both paper coupons as well as digital coupons is almost same.

digital coupons

To make the full fledged use of digital coupons is however now under process, but as the year is passing by more and more companies and brands are showing their interest to introduce the coupon system.

There is a common dilemma among the retailers now a day whether digital or paper coupons which one will win over the customer’s attraction.

It is surprising to see that even if in this digital age or in this tech savvy world people are more inclined towards the paper coupons. Thus the Retailers need to think over this issue to find a way out to choose the best among the two.

Proximity Marketing: Merging Online with Offline Shopping

Till a few years back there was a wide and clear distinction between the Retail Marketing and Digital Marketing system. The methods and techniques used by these two were not at all similar. However, in the recent years the situation has changed a lot. The invention of Proximity Marketing has blurred the distinction between retail and digital marketing. Until its invention, the retail looks at the Stores while the digital division controls or operates the e-commerce section. Both Retail and Digital Marketing also targets two completely different sets of audiences until few years back.

Present Scenario:

Proximity marketing is helping the Retailers to keep a close watch to their in-store customers. This helps them to know about their customer’s behavior in a much clear way than earlier. Thus the proximity marketing strategy has bridge up the distinction between the brick and mortar store and the digital store or the e-stores. Now, the customers are not only a store or online visitor but are both.

proximity marketing solutions

Why Proximity Marketing Is Beneficial for the Retailers?

Proximity marketing not only helps the Retailers in knowing the Customer’s Behavior well by tracking what they are buying or with whom they are coming, how much time they are spending but it also helps them to judge their marketing strategy as well. It helps the Retailers to find out if the products at their stores are kept in a proper manner or it needs any change to attracts the customers or if the in-store staffs are behaving properly with their customers.

Proximity Marketing and in-Store Marketing:

Proximity marketing has helped the in-store marketing in many folds like;

  • Increases the selling of the store
  • Help in cross promote
  • Incentive
  • Educate
  • Entertain
  • Increasingly handle the scale itself

With the help of proximity marketing the two system of online and offline mode of marketing have merge together. This also helps the Retailers to use the online browsing history with that of the physical visit in a store. Customers who had purchased something online can now be identified easily when they visit the store physically and can be treated accordingly satisfying their needs and demands. These customers can be tracked with the help of their smart phones.

The Mistakes to Be Avoided by the Retailers in Proximity Marketing:

There are certain mistakes that the retailers need to avoid for proximity marketing;

  • Receiving in sufficient amount of data. Proximity marketing requires huge data for knowing their customers well .Unfortunately some retailers are lacing of data.
  • Failing to put a limitation to the number of messages to be sent by the Beacons to in-store customers.
  • Failing to meet the customers demand. With the proximity messages the customer’s needs and demands of getting personalized offers and discount are increasing day by day which the retailers are failing to meet.

proximity marketing

Various proximity marketing solutions are :
The devices to be used for proximity marketing are termed as the proximity marketing solutions. Proximity marketing now a day is not only limited to the use of smart phones it can now be accessed through any GPS enabled devices, like the laptops.

Proximity marketing in India:

Proximity marketing is also gaining its importance in India at a fast pace. Many of the leading retailers of India is using the proximity marketing strategy to increase their business. The proximity marketing solutions that are used in India are;

  • An internet enabled device
  • An Wi-Fi enabled device
  • A Bluetooth device
  • A NFC enabled phone
  • QR codes