Ashlyn Booth, director of retail property marketing for JLL, shares insights into the benefits of a geofence.
By Ashlyn Booth
It wasn’t that long ago that retailers and shopping center owners hired surveyors to stand outside their space to question 500 mall-goers hoping to gain a better understanding of their shopping and spending habits. But, today all that’s needed to attain better shopper data is a geofence, a virtual boundary for a specific area, big or small.
When a location-aware device, like a cell phone, enters a geofence, a response is initiated that allows for outbound messages to be triggered or data pulled in from the cell phones entering the geofence. According to a recent report by Markets and Markets, location-based services are forecasted to grow from $8.12 billion in 2014 to $39.87 billion in 2019.
In today’s changing retail environment, increasing sales and loyalty is crucial to staying in the retail game. With geofencing technology we are getting a much richer shopper behavior profile than ever before. Retailers can tailor their store merchandise and promotions to exactly what the consumers want. For example, if you find out that through geofencing your shoppers are heading to a pet supply store immediately following your retail store, perhaps as a retailer you should consider adding merchandise that caters to pet lovers.
Apparel retailer American Eagle Outfitters turned to geofencing to boost both foot traffic and revenue at its outlet stores by pinpointing shoppers who entered the geofenced mall parking lot with promotions. The campaign resulted in sales at its outlet stores tripling. Fast-food chain Taco Bell took a similar approach using geofencing to entice hungry eaters to download their mobile ordering app. Taco Bell targeted a specific demographic, under thirty, and saw an increase of sales by 6 percent. JLL geofences shoppers through its ShopPings program and sends retailer offers to shoppers as they enter the center, working closely with the retailers to measure the offer’s effectiveness.