What is Proximity Marketing and How Does it Work?

What is Proximity Marketing and How Does it Work?

Almost 5 billion people across the globe are mobile phone users, including more than 3 billion smartphone users. There’s never been a better time to use location-based proximity marketing technologies in your advertising and marketing. This article will explain what proximity marketing is, who uses it, and the benefits of using such an innovative technology.

What is Proximity Marketing?

Proximity marketing means using your customers’ location to promote and advertise your products or services. This usually happens by using the indoor positioning technology that is already available in modern smartphones, such as GPS and cell phone triangulation.

WiFi and Bluetooth technology are also used to help companies deliver mobile proximity marketing.

Proximity marketing is also known as hyper local marketing. That’s because it is a highly targeted form of marketing that lets businesses show promotions to potential customers within a small geographical area. For example, marketing teams can target a neighborhood, a store, or specific section within a store. Using proximity marketing technology allows for hyper

personalized ad promotions and detailed tracking of results to make marketing and advertising campaigns even more effective.

How do Businesses use Proximity Marketing?

Businesses of all sizes and industries can benefit from implementing mobile proximity marketing. For example, major retailers can show proximity-based advertisements to potential customers who are near their stores. If you’ve ever seen an ad for a discount coupon just as you happen to drive by McDonald’s or Walmart, then that’s proximity marketing. Another example is inside a shopping mall, where you can see ads for maps and discount coupons that you can use inside the facility.

Restaurants and fast-food chains use mobile proximity marketing to show promotions to customers and attract them inside. They can also show ads and coupons to existing customers to encourage them to come back, increasing repeat business.

In real estate, realtors can show ads to those in the market for new homes, rentals, or office space, depending on their location and behaviour.

In the tourism industry, business owners can use proximity marketing to display information about events, deals and rewards relating to destinations, accommodations, or local attractions.

The Benefits of Proximity Marketing

There are numerous benefits of using proximity marketing. For example, using this type of location marketing lets you personalize the customer experience based on past, present, or future location and behaviour. Since relevant marketing boosts sales, this is very important.

If you have an existing mobile app, using proximity marketing to deliver information and offers can increase engagement with your app, and app retention.

Mobile proximity marketing is a convenient and cost-effective way to market only to your core audience- people who are already in or near your store and can be persuaded to buy from you.

Lastly, like other types of location-based marketing technologies, proximity marketing helps marketers better understand their customers’ needs. In turn, that lets them meet those needs to improve customer relationships and engagement.