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PROXIMITY & PRESENCE DETECTION
HOW TO ENRICH THE PATH TO PURCHASE
MMA Forum
June 2012
AGENDA
1. challenges facing retailers
2. benefits of location marketing
3. location approaches
4. marketplace results
5. considerations
©2012 Vibes. All Rights Reserved. Confidential
CHALLENGES & BENEFITS OF LOCATION MARKETING
Challenges
Benefits
• channel conflict &
inconsistency
• customer loyalty: curating
• digital channels vs. in store
• operating expense vs. same
store sales
• show rooming
‐ 53% stopped in-store purchase
because find better price
elsewhere
‐ Up to 38% better price at other
store or online
‐ Up to 20% because of
selection
‐ Up to 11% because of review
©2012 Vibes. All Rights Reserved. Confidential
• revenue: basket size & foot traffic
• increased shopper expectations
‐ Engaging, emotional, exciting and
entertaining
• gain knowledge of shopping
patterns & foot traffic
• improve merchandising,
resources and retail operations
• dwell time: active vs. passive
shopping
• overcome show rooming
• interfere with competition
LOCATION REACH
YES, used locationbased couponing
39%
NO, but would be
interested
NO, and not interested
79% Potential
Reach for
LocationBased
Couponing
37%
42%
•
©2012 Vibes. All Rights Reserved. Confidential
Source: Custom Mobile Retail Advisor Survey Sept ‘11
REDUCE PATH TO PURCHASE
Shoppers that would choose one store over another with location-based offer
90%
80%
77%
70%
60%
50%
40%
30%
23%
20%
10%
0%
©2012 Vibes. All Rights Reserved. Confidential
with offer
without offer
•
Source: Custom Mobile Retail Advisor Survey Sept ‘11
GEO FENCE MARKETING
• Location aware
- Opt in 18%
Geo-Fence
- Location success 90%
outside the store
- (2) look ups garnered 92%
reachable audience
• Location offers
Wi-Fi
inside the
store
- Offer delivery 7%
- Redemption 83%
- ROI 238-600% depending on fully
loaded cost including offer
- $80-150 spend
- Traffic increased 4x+ visits
©2012 Vibes. All Rights Reserved. Confidential
POS
NFC & RFID
PRESENCE DETECTION & PROXIMITY
• new & repeat visitors
• dwell time & heat mapping
ACT NOW
• traffic statistics
• Welcome
• 5-10M accuracy
• Offer Pushed
• real time customer engagement
• Drive associate interaction
• analytical data & visualization
- heat mapping
- dwell time
ACT LATER
• Analyze patterns
• Develop programs
• Reorganize layouts
• Modify Planograms
• Refine engagement plans
©2012 Vibes. All Rights Reserved. Confidential
BENEFITS OF PROXIMITY
57% of large
business respondents
95%
expressed a need for
Business Intelligence to
address “Consumer
expectation of a
Source: Aberdeen Group
25%
personalized shopping
experience”
Aberdeen Group, Oct 2011
Handsets Shipping that
will be Wi-Fi Enabled
Big Box and Anchor
Tenant Retailers
Offering Free-In store
Wi-Fi to Shoppers
Source: Oxford Economics, Digital Megatrends
6%
and rising
Increased Likelihood
that a Shopper Using a
Mobile Device In Store
will Make an In-Store
Purchase
Source: Aberdeen Group
©2012 Vibes. All Rights Reserved. Confidential
MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC
and are used under license. All other trademarks are the property of their respective owners. © 2011 Motorola Solutions, Inc. All rights reserved.
PAGE 8
PROXIMITY SOLUTION
PRESENCE SERVICES
• Detect Customers On Premises
• Rule Based Push – Welcome, Coupons, Specials
WI-FI ANALYTICS
• Track Detailed Statistics About Customer Activity (Per Store Visit Time,
Repeat Customers, Total Customers in Store, Demographic Profiles)
• Enable Retailer/Store Manager to Better Understand Customer
LOCATIONING (RTLS) SERVICES
• Define Zones to Detect Customers in Specific Areas
• Marketing Logic Drives Promotions Increases Per
Customer Revenue
HISTORIC LOCATION ANALYSIS
• Track Single/Multiple Device Location and Path Over Time
• Quantify Value of Shelf Space Based on Location in Store
• Identify customer flow and congestion
©2012
AllSOLUTIONS
Rights Reserved.
Confidential
MOTOROLA,
MOTO, Vibes.
MOTOROLA
and the Stylized
M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC
and are used under license. All other trademarks are the property of their respective owners. © 2011 Motorola Solutions, Inc. All rights reserved.
PAGE 9
PRESENCE DETECTION & PROXIMITY SERVICES
2
SHOPPER
MOBILE PHONE or
MOBILE
DEVICE/BROWSER
Wi-Fi PRESENCE
DETECTION
PRESENCE INFO SENT
TO MOTOROLA ADSP
3
1
API PUSH
MAC ID / MDN TO
VIBES ENDPOINT
6
SEND MESSAGES
& OFFERS
1.
2.
3.
4.
5.
4
YES
AMOE
REGISTRATION
NO
5
QUERY
REGISTRATION
Customer Arrives Onsite
Wi-Fi Device is Observed Active In the Air: No Connectivity Required
Motorola Observes the Device Active in Airspace
Registers Device as Newly Observed API Notification Sent to Vibes Backend Systems
CRM/Application Takes Action
•
Product Suggestions
•
Coupons
•
Offers or Suggestions Based on Customer Profile
©2012 Vibes.
All RightsSOLUTIONS
Reserved.
Confidential
MOTOROLA,
MOTO, MOTOROLA
and the
Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC
and are used under license. All other trademarks are the property of their respective owners. © 2011 Motorola Solutions, Inc. All rights reserved.
PAGE 10
PROXIMITY TRACK PATHS OVER TIME
•
Single Device Path Over Time
•
Multiple Device Density Views
•
Can Identify Frequently Visited Locations in Store
•
Quantify Value of Areas in Stores
•
Promotion Based on Product Location
•
Point in Time
•
Over Time Period
•
View Areas Of Congestion
•
Filter Devices Based on Type Customer Profile
•
Track Path Customer(s) took
UTILIZE WEALTH OF DATA TO IMPROVE STORE SALES
©2012
AllSOLUTIONS
Rights Reserved.
Confidential
MOTOROLA,
MOTO, Vibes.
MOTOROLA
and the Stylized
M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC
and are used under license. All other trademarks are the property of their respective owners. © 2011 Motorola Solutions, Inc. All rights reserved.
PAGE 11
CHECK-IN APPLICATIONS
• native application
18.9 Million
smartphone owners
use check-in services
• user initiates
• rewards the user for checking in
- discounts
- points earned
- virtual currency
Most Popular Check-in Services
- gamification/entertainment
% of Smartphone
- exclusive offers
20%
20%
15%
10%
5%
3%
2%
1%
0%
Facebook Places
Foursquare
Google Latitude Yelp
©2012 Vibes. All Rights Reserved. Confidential
0.5%
Gowalla
0.1%
Loopt
CONSIDERATIONS
• big picture
• privacy
• timing, reach & costs
• user adoption
• connecting disparate clouds
• integration
• measurement
©2012 Vibes. All Rights Reserved. Confidential
[thank you]
Brittany Clotfelter, VIBES
VP Business Development & Strategic Partners
[email protected]
Laura Davis-Taylor, BBDO / SHOPWORK
SVP and Managing Director
[email protected]
Nathan Rowe, MOTOROLA SOLUTIONS
Sr. Product Manager, Wireless LAN Solutions
[email protected]