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Operations & Logistics more likely to engage with a retailer’s location-based service app if they can set timing preferences on when notifications are sent. Based on these statistics, Canadian retailers understand that taking a “wait-and-see” approach may jeopardize the opportunity to personally connect with their best shoppers. Taking a cue from these loyal, tech-savvy consumers, more Canadian brands are ready to use beacon and geo-location strategies to their advantage. Specifically, almost one-third (29%) of companies have implemented shopper-tracking capabilities via beacons and geo-fencing; and just shy of one-in-five companies (19%) have added location-based marketing and communications, according to the “RIS Retail Tech Study,” from RIS News and Gartner, March/April 2015. And they are approaching the opportunity from various angles. From a marketing perspective, for instance, retailers finally have a seamless way to talk to customers at the right time, place and medium. Beacons also give brands visibility into the promotional effectiveness
December 2015
and redemption levels of mobile offers. Consumer delivery is easier than ever before thanks to the utilization of a brand’s social or utility app and the consumer agreeing to share their location with the app as well as consenting to receive push notifications. This increasing retailer and consumer adoption of beacons illustrates the value of digital interactive solutions. However, to uphold the concept of personalization, retailers must also remember that digital engagement is not a onesize-fits-all proposition. As a result, retailers must remain mindful when it comes to choosing new engagement programs and achieving anticipated benefits. Thus, retailers must evaluate business objectives to determine the best combination of digital technologies; how they will respond to customer needs; the value they will deliver throughout the entire customer journey, and a potential return on investment. This is the foundation of “test-and-learn” programs. Unlike pilot programs that are launched as small-scale, short-term
experiments that help organizations explore how a large-scale project “might” work, test-and-learn concepts enable companies to experiment with specific ideas in a small number of locations or among a group of users to predict impact and components that speak to consumers. This practice is extremely effective across mobile strategies, especially those that support ongoing digital message deliveries. While some consumers are pleased with receiving relevant messages up to three times a day, for example, this may be too infrequent—or worse, viewed as overkill, among other shoppers. Test-and-learn practices allow retailers to measure message effectiveness, delivery relevance and the impact of redemption. Armed with results based on actual consumer behavior, brands can reach specific data-driven conclusions, instead of making “gut-driven,” often inaccurate, decisions. As the omnichannel business model expands, consumer intimacy is the key to success. Thanks to the power of personal mobile solutions, this task has never been easier. However, if
consumers are willing to enable their favorite brands to connect with them through this medium, retailers must deliver engaging, relevant messages that coincide with their shoppers’ needs. By adopting emerging strategies such as mobility and beacon programs as well as test-and-learn practices, retailers are on course to learn how to create relevant messages that resonate with today’s fickle shoppers, and in turn, drive long-term loyalty that translates into revenue. As director, mobile, API & analytics innovation
for LoyaltyOne’s AIR MILES Reward Program, Michael Cohen is responsible for setting the product roadmap and development for the Mobile, Analytics and API portfolios. Michael is a champion of agile development and manages a group of Product Owners to achieve the various product visions. Sandra Singer is the vice president of research at Canadian Marketing Association where she leads the development of research assets in cooperation with industry partners along with the curation of marketing intel.
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