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The new rules of engagement: How location-based technology builds customer loyalty

Ryan Goh, Vice President of Sales, Zebra Technologies APAC | July 6, 2015
Ryan Goh, Vice President and General Manager, Zebra Technologies Asia Pacific, shares his views on how such location-based technologies can revolutionise the retail industry and help retailers cope with the increasing demands of customers.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Today's customers have endless opportunities and choices with the introduction of internet and mobile alternatives for retail therapy. Retailers increasingly recognize that to stay competitive and provide a new, more personalized shopping experience for customers, they need technology. One interesting technology solution that is set to make waves in the retail sector is the use of location-based technology.

According to MicroMarket Monitor's report on location based services in Asia Pacific, the region is expected to experience a large amount of growth in geo-location technology use, with revenue figures expanding more than six times from 2014 to 2019.

Through geo-location technologies, everyone's shopping experience can be markedly different. For instance, shoppers can use retailer's smartphone apps to create detailed shopping lists. Once near the vicinity of the mall, with the proper in-store Wi-Fi solution in place, shoppers will be prompted to connect, and provided with access to store directions and offers specific to their needs.

Contrary to the "showrooming" effect that many retailers fear, consumers who use mobile devices in stores often spend more money while there, too. According to Google's "How Mobile is Transforming the Shopping Experience in Stores", frequent mobile shoppers spend 25% more in stores than those who only occasionally use a mobile phone to help with shopping. The increased spending is across a variety of retail sectors, including appliances, groceries, baby care, electronics, health and beauty, and apparel. Geo-location technologies can ensure the right set of information are shared with shoppers in the aisle when buying decisions are being made, turning them from browsers to buyers.

Personalized shopping experiences are becoming a reality and are set to aid retailers' bid to extend customer loyalty.

Making Personal Customer Engagement a Reality

Locationing platforms are the new shiny carrots that enable retailers to capture more insight into shopping behaviors. More than that, they can unlock the door to a new level of business success.

The latest generation of solutions can reveal which aisles and products customers prefer, which products they purchased in the past and what influences their buying decisions. This level of visibility makes new, deeper transactions possible and empowers loyalty applications to evolve to deliver even more value to customers, such as:

  • Greet customers as they arrive and provide repeat customers with discounts based on their previous purchases;
  • Reward customers with location-based coupons that are sent directly to the customers' mobile phones;
  • Offer shoppers way-finding assistance via digital store maps to quickly find the products they want;
  • Prompt associates to tend to customers who linger in certain areas;
  • Communicate promotions based on shopper proximity and relevancy; and
  • Marry retail and eTail for a seamless, personalized shopping experience.


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