Personalization Is A Key Benefit
Let’s take a look at a form of personalization we all know about today. A husband and his wife have individual key FOBs for their car. When the husband gets in the car, the mirrors adjust, the seat slides back, and the radio station changes to his favorite morning radio station. When his wife uses the car that evening, the car returns to her preferences. That’s an example of very useful personalization. Now, imagine if a retail store could do that for you.
We’ve seen online personalization become more and more sophisticated over the past decade with platforms such as Google AdWords and the Facebook Audience Network, and the addition of proximity marketing technologies is making it possible to expand that personalization in-store, effectively bridging the gap between digital and physical environments. There are both exciting and scary possibilities to this.
So, why can’t retailers live without it? The retailer will now be able to understand shopper behavior beyond POS data. Retailers currently have the ability to analyze traffic patterns, deliver personalized offers, measure dwell times, build on customer loyalty profiles and even A/B test physical displays. And what does the shopper get? By integrating this technology into a retailer’s app, the shopper gets an ultra-personalized experience through customer-specific offers, location-specific coupons and contextual information such as maps and menus.
But the question that keeps coming up is: Will shoppers adapt to this kind of experience? If users don’t adopt the technology, hockey stick graphs will never happen for retailers. I think of a Sheryl Sandburg story I’ve heard during her presentations several times. When Caller ID first came out, users were scared by it. They thought the concept of knowing who’s calling before you picked up was creepy. Now, 20+ years later, we don’t pick up our phones without knowing who’s calling.The user’s perception of the technology completely flipped over a couple of decades.
It seems a general consensus among investors and marketers that someone will figure out and win the proximity marketing race.
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