What is proximity marketing and how can my business benefit from it?

As the need for data-driven marketers continues to rise, there is an ongoing quest to acquire meaningful consumer data. To keep up with the growing demand for data and personalized consumer content, location data has become a “powerful and important data source within marketing strategy”. You may be wondering how exactly. Well, according to a location data study conducted by Factual, 89% of mobile marketers report that they’ve seen an increase in sales, 86% grew their customer base, and 84% saw more engaged customers. While there are many different types of location-based marketing, there is one in particular that is focused on targeting customers who are in close vicinity to the business. That is referred to as proximity marketing.

What is Proximity Marketing

According to Social Media Today, proximity marketing is used to “describe any use of location technologies to directly communicate with customers through their mobile devices”. This includes not only smartphones but any GPS, Wifi, or Bluetooth-enabled device. Put simply, this means that companies use cellular technology to determine which mobile-device users are within a certain location of a business. As a result, they’re able to send specific marketing messages to those individuals to entice them to engage with their business. 

Why Should Companies Care?

From a business perspective, there are several benefits to utilizing proximity marketing. Below are a few statistics that highlight the impact that using this type of marketing campaign can have on your business. 

  • 72% of consumers will act on a call of action from a marketing message if they receive it while in sight of the retailer
  • 53% of consumers are willing to share their current location to receive more relevant advertising
  • 57% of consumers are more likely to engage with location-based advertising
  • 80% of shoppers [use] a mobile phone inside of a physical store to either look up product reviews, compare prices or find alternative store locations

As you can see, there are plenty of opportunities to take advantage of the likelihood and willingness of customers to respond to proximity marketing ads. Once you can strategically and effectively use this type of location-based marketing, your targeted messages can lead to higher conversion rates as they are reaching the right customers at a pivotal moment. 

How to Get Started

If your business has a physical location where your customers are likely to spend more than just a few minutes, this may be a strategy you want to consider. Through the use of proximity marketing, your messaging will be “more personalized and contextually relevant”, which can yield positive sales and engagement results. You’ll need to invest time and resources upfront to configure an effective campaign with quality content however, the return on investment may be well worth it. Check out this detailed guide to help you get started!