STORES 2014 BIG Show Daily - January 14, 2014 - 14


Tuesday

14

Mapping the Latest Frontier of Customer Engagement

T

echnology can change in the blink of
an eye. Every time a retailer thinks it
has the latest and greatest, something
new is on the horizon. These days, highly
targeted location-based mobile marketing
is the frontier of customer engagement. By
using small sensors in and around stores,
a retailer can set up a perimeter to know
when consumers with enabled apps venture
into its zone.
Jim Walz, director of mobile strategy
for Alliance Data, said location-based mobile marketing is a highly effective strategy
of customer engagement. Whereas retailers
used to expect consumers to "follow" them
via social media like Facebook and Twitter, they are now taking a more proactive
approach and "following" their customers.
Walz said consumers are already using their phones in stores to showroom,
compare retailers, find out more about a
product and use them as customized virtual
sales assistants. Retailers who are willing
to reach out can approach mobile-enabled
consumers in the vicinity of the store.
"We think there is a lot of value to mobile
impulse buying," Walz said. "If you can
deliver just one incremental visit per year
from [a previous shopper], it can provide
a huge sales lift."
Tech company Swirl uses batterypowered sensors that automatically detect
when a Swirl user is within range, triggering
the delivery of relevant content and offers.
Vice president of marketing Rob Murphy
said the Wi-Fi-tracking or self check-in
mechanisms allow retailers to identify
precise locations in a store without extensive hardware; Swirl also provides tools
to analyze and influence shopper behavior.
Online market research firm uSamp
also communicates with consumers via
their phones in-store. Instead of sending
special offers, however, uSamp sends survey requests. Director of mobile products
Allen Vartazarian said having consumers
take surveys while in the store provides
more detailed and reliable feedback.
"'In the moment' is an interesting and
valuable metric for these companies," he
said. "It's one thing if you have to recall
your last trip to that store, but it's another
if you are standing there."
uSamp mobile location research
often involves customers taking photos
and videos of product locations. The data
can show where consumers were standing
-what aisle they were in and exactly what
products they were viewing. Vartazarian
said it can offer critical information on
consumer behavior.

Opt-in, customizable apps

A number of generic location-based
platforms have been on the market for
years. Most retailers who employed such
tactics in the past relied on Facebook's
"check-in" capabilities, often using discounts, contests or giveaways to entice
consumers. In return, retailers obtained
enhanced social media marketing to the

"There is a lot of
value to mobile
impulse buying. If you
can deliver just one
incremental visit per
year from [a previous
shopper], it can
provide a huge sales
lift."
- Jim Walz,
Alliance Data
millions of users who saw that their friends
checked-in to a certain store.
One of the keys of active mobile engagement, specifically geofencing, is that
it typically requires users to voluntarily
"opt-in" to the system (meaning the customer must voluntarily agree to be tracked
or receive such offers). This is critical,
said Walz, because pushing messages to
unwilling consumers could be perceived
as spamming.
"People are going to ask, 'What's in it
for me,'" he said. "You have to give them
a compelling reason to use your app" and
engage in geofencing.
Vartazarian said consumers are willing
to engage in location-marketing capabilities or surveys for a number of reasons. He
believes many consumers enjoy giving
feedback to brands and retailers to help
influence the decisions these companies
make, as well as the discounts and offers
they receive for participating in research.
Finally, Vartazarian said many tech-savvy
consumers simply enjoy using their phone.
"Many just love using the capabilities
of their phone but also enjoy being more
productive with it," he said. "They get an

alert and they take their phone out, shoot
some pictures, some video and scan a barcode. It's fun."
Murphy said Swirl offers a great
benefit for consumers because they don't
have to remember to open an app and look
for offers. If phones are enabled to receive
push notifications, they can automatically
be informed of special offers or discounts
the moment they enter a store. If they don't
opt for push notifications, the sensors will
still automatically connect to the app: If
the consumer opens the app, it will display
relevant offers based on their location.
"We want to make it as easy as possible for the consumer. They don't have to
remember anything or check anything,"
Murphy said. "The retailer can automatically wake up their phone and deliver offers
or relevant content."
Location-based mobile marketing is
very successful in fashion, said Murphy,
because it often appeals to emotion and
can elicit impulse buying. But it could
be successful in any retail environment,
perhaps delivering messages to stave off
showrooming at electronics stores or to
increase basket size with offers in general
department stores.
"There are a number of marketing
tools that the brands can use, but [locationbased mobile marketing's] impact is multiplied by the fact that you are standing right
there," he said.

Consumer-led engagement

There are a number of risks in location-based mobile marketing, the most
important of which is the "creepiness"
factor. A consumer who is walking near
a store and receives a message offering a
discount for a product he was looking at
online two days ago could get a sense that
the retailer is wielding too much power and
overstepping the boundaries of privacy.
Vartazarian said retailers must tread carefully and allow consumers to select the
level of engagement.
"The way you can control that [privacy] factor is to empower the consumer,"
he said. "Make sure they have the power
to set the limits they are comfortable with.
The more control you give the consumers, the more likely they are going to keep
participating."
Privacy concerns are a growing issue. NRF senior vice president and general counsel Mallory Duncan worries that
broad legislation that doesn't factor in the
specific uses of new technologies may
inadvertently quash tools that benefit both
merchants and their customers. He said
new technology, regardless of how benign
its purpose, sometimes triggers undue
alarm; there's a tendency for groups and
legislators to broadly overstate concerns,
even when that new technology is simply
serving old purposes.
Consider technology that allows merchants to determine where customers tend
to cluster (or not) in their stores. To an

extent, Duncan said customers have always
been observed, either by security or associates. With new phone-based technologies,
that observation is being used to benefit
the customer and improve the shopping
experience by facilitating changes in layout
and design.
"If there is a rush to adopt ill-advised
legislation without thinking about how it
operates in practice, policy makers could
put at risk the tools that were designed to
provide more effective and desired services
to our customers," Duncan said.
Murphy said retailers also don't want
to "overuse" information and automatically enroll consumers in e-mail lists or
campaigns. While he admits there are
concerns about privacy, he said since most
programs are strictly opt-in, few consumers
are being tracked against their will. With
customized solutions, he said consumers
can also tweak the level of engagement

"If consumers feel
their [information
and location] is
worth something
and the retailer is
willing to give them
something in return,
they're generally
willing to share it."
- Rob Murphy,
Swirl
that they would like, including whether or
not to receive personalized offers or not to
be "pushed" messages when they are in the
vicinity of a retailer.
"Marketers need to be very careful
about not overusing information," Murphy
said. "What we don't want is every person
being bombarded every time they walk
into a store."
That is highly unlikely to happen today but it could be an issue in the coming
years as more retailers engage in in-store
mobile marketing. Swirl has found that
roughly half of consumers would be
willing to share their location information if they knew they would receive a
$5 store credit. The study "What Women
Want When Apparel Shopping," released
in July 2013, found that when enticed
with a $25 in-store credit, that number
jumped to 83 percent. For an exclusive
flash sale, that number was 59 percent;
for a gift with purchase, 63 percent said
they would opt-in.
The study noted that only 17 percent
of respondents said they would never volunteer their location for any offer.
"If consumers feel their [information
and location] is worth something and the
retailer is willing to give them something
in return, they're generally willing to share
it," said Murphy.



Table of Contents for the Digital Edition of STORES 2014 BIG Show Daily - January 14, 2014

STORES 2014 BIG Show Daily - January 14, 2014 - 1
STORES 2014 BIG Show Daily - January 14, 2014 - 2
STORES 2014 BIG Show Daily - January 14, 2014 - 3
STORES 2014 BIG Show Daily - January 14, 2014 - 4
STORES 2014 BIG Show Daily - January 14, 2014 - 5
STORES 2014 BIG Show Daily - January 14, 2014 - 6
STORES 2014 BIG Show Daily - January 14, 2014 - 7
STORES 2014 BIG Show Daily - January 14, 2014 - 8
STORES 2014 BIG Show Daily - January 14, 2014 - 9
STORES 2014 BIG Show Daily - January 14, 2014 - 10
STORES 2014 BIG Show Daily - January 14, 2014 - 11
STORES 2014 BIG Show Daily - January 14, 2014 - 12
STORES 2014 BIG Show Daily - January 14, 2014 - 13
STORES 2014 BIG Show Daily - January 14, 2014 - 14
STORES 2014 BIG Show Daily - January 14, 2014 - 15
STORES 2014 BIG Show Daily - January 14, 2014 - 16
STORES 2014 BIG Show Daily - January 14, 2014 - 17
STORES 2014 BIG Show Daily - January 14, 2014 - 18
STORES 2014 BIG Show Daily - January 14, 2014 - 19
STORES 2014 BIG Show Daily - January 14, 2014 - 20
STORES 2014 BIG Show Daily - January 14, 2014 - 21
STORES 2014 BIG Show Daily - January 14, 2014 - 22
STORES 2014 BIG Show Daily - January 14, 2014 - 23
STORES 2014 BIG Show Daily - January 14, 2014 - 24
STORES 2014 BIG Show Daily - January 14, 2014 - 25
STORES 2014 BIG Show Daily - January 14, 2014 - 26
STORES 2014 BIG Show Daily - January 14, 2014 - 27
STORES 2014 BIG Show Daily - January 14, 2014 - 28
STORES 2014 BIG Show Daily - January 14, 2014 - 29
STORES 2014 BIG Show Daily - January 14, 2014 - 30
STORES 2014 BIG Show Daily - January 14, 2014 - 31
STORES 2014 BIG Show Daily - January 14, 2014 - 32
http://www.nxtbook.com/naylor/NRFK/NRFK0318
http://www.nxtbook.com/naylor/NRFK/NRFK0218
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180115
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20180114
http://www.nxtbook.com/nxtbooks/nrf/STORES2018_preview
http://www.nxtbook.com/naylor/NRFK/NRFK0118
http://www.nxtbook.com/naylor/NRFK/NRFK0917
http://www.nxtbook.com/naylor/NRFK/NRFK0817
http://www.nxtbook.com/naylor/NRFA/NRFA0017
http://www.nxtbook.com/naylor/NRFA/NRFA0317
http://www.nxtbook.com/naylor/NRFK/NRFK0717
http://www.nxtbook.com/naylor/NRFK/NRFK0617
http://www.nxtbook.com/naylor/NRFK/NRFK0517
http://www.nxtbook.com/naylor/NRFK/NRFK0417
http://www.nxtbook.com/naylor/NRFK/NRFK0317
http://www.nxtbook.com/naylor/NRFK/NRFK0217
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170117
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170116
http://www.nxtbook.com/nxtbooks/nrf/STORES_bigshowdaily20170115
http://www.nxtbook.com/naylor/NRFK/NRFE0017
http://www.nxtbook.com/naylor/NRFK/STORES2017_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0117
http://www.nxtbook.com/nxtbooks/nrf/STORES1216
http://www.nxtbook.com/nxtbooks/nrf/STORES1116
http://www.nxtbook.com/nxtbooks/nrf/STORES1116v2
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_esri
http://www.nxtbook.com/nxtbooks/nrf/STORES1016_radial
http://www.nxtbook.com/nxtbooks/nrf/STORES1016
http://www.nxtbook.com/nxtbooks/nrf/STORES0916_customcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0916
http://www.nxtbook.com/nxtbooks/nrf/STORES0816
http://www.nxtbook.com/nxtbooks/nrf/STORES0716_jestacustomcontent
http://www.nxtbook.com/nxtbooks/nrf/STORES0716
http://www.nxtbook.com/nxtbooks/nrf/STORES0616
http://www.nxtbook.com/nxtbooks/nrf/STORES_sourcebook2016
http://www.nxtbook.com/nxtbooks/nrf/STORES0516
http://www.nxtbook.com/naylor/NRFK/NRFE0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0416
http://www.nxtbook.com/nxtbooks/nrf/STORES0316_visualsearch
http://www.nxtbook.com/nxtbooks/nrf/STORES0316
http://www.nxtbook.com/nxtbooks/nrf/STORES0216
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160119
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160118
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_20160117
http://www.nxtbook.com/naylor/NRFK/NRFE0016
http://www.nxtbook.com/nxtbooks/nrf/STORES2016_Preview
http://www.nxtbook.com/nxtbooks/nrf/STORES0116
http://www.nxtbook.com/naylor/NRFK/NRFC1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1215
http://www.nxtbook.com/nxtbooks/nrf/STORES1115_buyersguide
http://www.nxtbook.com/nxtbooks/nrf/STORES1115
http://www.nxtbook.com/naylor/NRFK/NRFE1015
http://www.nxtbook.com/naylor/NRFK/NRFC1015
http://www.nxtbook.com/naylor/NRFK/NRFE0915
http://www.nxtbook.com/naylor/NRFK/NRFM0016
http://www.nxtbook.com/naylor/NRFK/NRFE0815
http://www.nxtbook.com/naylor/NRFK/NRFE0715
http://www.nxtbook.com/naylor/NRFK/NRFE0615
http://www.nxtbook.com/naylor/NRFK/NRFD0015
http://www.nxtbook.com/naylor/NRFK/NRFS0015
http://www.nxtbook.com/naylor/NRFK/NRFE0515
http://www.nxtbook.com/naylor/NRFK/NRFC0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0415
http://www.nxtbook.com/nxtbooks/nrfe/STORES0315
http://www.nxtbook.com/nxtbooks/nrfe/STORES0215
http://www.nxtbook.com/naylor/NRFK/NRFG0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES0115
http://www.nxtbook.com/nxtbooks/nrfe/STORES1214
http://www.nxtbook.com/naylor/NRFK/NRFG1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1014
http://www.nxtbook.com/naylor/NRFK/NRFM0015
http://www.nxtbook.com/nxtbooks/nrfe/STORES0914
http://www.nxtbook.com/nxtbooks/nrfe/STORES0814
http://www.nxtbook.com/nxtbooks/nrfe/STORES0714
http://www.nxtbook.com/nxtbooks/nrfe/STORES0614
http://www.nxtbook.com/nxtbooks/nrfe/STORES0514
http://www.nxtbook.com/nxtbooks/nrfe/STORES_sourcebook2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0414
http://www.nxtbook.com/nxtbooks/nrfe/STORES0314
http://www.nxtbook.com/nxtbooks/nrfe/STORES0214
http://www.nxtbook.com/naylor/NRFK/NRFG0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES0114
http://www.nxtbook.com/nxtbooks/nrfe/STORES1213
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113_buyersguide
http://www.nxtbook.com/nxtbooks/nrfe/STORES1113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1013
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2014
http://www.nxtbook.com/nxtbooks/nrfe/STORES0913
http://www.nxtbook.com/nxtbooks/nrfe/STORES0813
http://www.nxtbook.com/nxtbooks/nrfe/STORES0713
http://www.nxtbook.com/nxtbooks/nrfe/STORES0613
http://www.nxtbook.com/nxtbooks/nrfe/STORES0513
http://www.nxtbook.com/nxtbooks/nrfe/STORES0413
http://www.nxtbook.com/nxtbooks/nrfe/STORES0313
http://www.nxtbook.com/nxtbooks/nrfe/STORES0213
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130115
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130113
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130114
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0113
http://www.nxtbook.com/nxtbooks/nrfe/STORES1212
http://www.nxtbook.com/nxtbooks/nrfe/STORES1112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1012
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2013
http://www.nxtbook.com/nxtbooks/nrfe/STORES0912
http://www.nxtbook.com/nxtbooks/nrfe/STORES0812
http://www.nxtbook.com/nxtbooks/nrfe/STORES0712
http://www.nxtbook.com/nxtbooks/nrfe/STORES0612
http://www.nxtbook.com/nxtbooks/nrfe/STORES0512
http://www.nxtbook.com/nxtbooks/nrfe/STORES0412
http://www.nxtbook.com/nxtbooks/nrfe/STORES0312
http://www.nxtbook.com/nxtbooks/nrfe/STORES0212
http://www.nxtbook.com/nxtbooks/nrfe/STORES2012_preview
http://www.nxtbook.com/nxtbooks/nrfe/STORES0112
http://www.nxtbook.com/nxtbooks/nrfe/STORES1211
http://www.nxtbook.com/nxtbooks/nrfe/STORES1111
http://www.nxtbook.com/nxtbooks/nrfe/STORES1011
http://www.nxtbook.com/nxtbooks/nrfe/STORES_mediakit2012
http://www.nxtbook.com/nxtbooks/nrfe/STORES0911
http://www.nxtbook.com/nxtbooks/nrfe/STORES0811
http://www.nxtbook.com/nxtbooks/nrfe/STORES0711
http://www.nxtbook.com/nxtbooks/nrfe/STORES0611
http://www.nxtbook.com/nxtbooks/nrfe/STORES0511
http://www.nxtbook.com/nxtbooks/nrfe/STORES0411
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311_v2
http://www.nxtbook.com/nxtbooks/nrfe/STORES0311
http://www.nxtbook.com/nxtbooks/nrfe/STORES0211
http://www.nxtbook.com/nxtbooks/nrfe/STORES0111
http://www.nxtbook.com/nxtbooks/nrfe/stores1210
http://www.nxtbook.com/nxtbooks/nrfe/stores_mediakit2011
http://www.nxtbook.com/nxtbooks/nrfe/stores1110
http://www.nxtbook.com/nxtbooks/nrfe/stores1010
http://www.nxtbook.com/nxtbooks/nrfe/stores0910
http://www.nxtbook.com/nxtbooks/nrfe/stores0810
http://www.nxtbook.com/nxtbooks/nrfe/stores0710
http://www.nxtbook.com/nxtbooks/nrfe/stores0610
http://www.nxtbook.com/nxtbooks/nrfe/stores0510
http://www.nxtbook.com/nxtbooks/nrfe/stores0410
http://www.nxtbook.com/nxtbooks/nrfe/stores0310
http://www.nxtbook.com/nxtbooks/nrfe/stores0210
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshow2010_post
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100112
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100111
http://www.nxtbook.com/nxtbooks/nrfe/stores_bigshow_20100110
http://www.nxtbook.com/nxtbooks/nrfe/stores0110
http://www.nxtbook.com/nxtbooks/nrfe/store_bigshowpreview2010
http://www.nxtbook.com/nxtbooks/nrfe/stores1209
http://www.nxtbook.com/nxtbooks/nrfe/stores1109
http://www.nxtbook.com/nxtbooks/nrfe/stores1009
http://www.nxtbook.com/nxtbooks/nrfe/stores0909
http://www.nxtbook.com/nxtbooks/nrfe/stores0809
http://www.nxtbook.com/nxtbooks/nrfe/stores0709
http://www.nxtbook.com/nxtbooks/nrfe/stores0609
http://www.nxtbook.com/nxtbooks/nrfe/stores0509
http://www.nxtbook.com/nxtbooks/nrfe/stores0409
http://www.nxtbook.com/nxtbooks/nrfe/stores0309
http://www.nxtbook.com/nxtbooks/nrfe/stores0209
http://www.nxtbook.com/nxtbooks/nrfe/stores0109
http://www.nxtbook.com/nxtbooks/nrfe/stores1208
http://www.nxtbook.com/nxtbooks/nrfe/stores1108
http://www.nxtbook.com/nxtbooks/nrfe/stores1008
http://www.nxtbook.com/nxtbooks/nrfe/stores0908
http://www.nxtbook.com/nxtbooks/nrfe/stores0808
http://www.nxtbook.com/nxtbooks/nrfe/stores0708
http://www.nxtbook.com/nxtbooks/nrfe/stores0608
http://www.nxtbook.com/nxtbooks/nrfe/stores0508
http://www.nxtbook.com/nxtbooks/nrfe/stores0408
http://www.nxtbook.com/nxtbooks/nrfe/stores0308
http://www.nxtbook.com/nxtbooks/nrfe/stores0208
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail08
http://www.nxtbook.com/nxtbooks/nrfe/stores0108
http://www.nxtbook.com/nxtbooks/nrfe/stores1207
http://www.nxtbook.com/nxtbooks/nrfe/stores1107
http://www.nxtbook.com/nxtbooks/nrfe/stores1007
http://www.nxtbook.com/nxtbooks/nrfe/stores0907
http://www.nxtbook.com/nxtbooks/nrfe/stores0807
http://www.nxtbook.com/nxtbooks/nrfe/stores0707
http://www.nxtbook.com/nxtbooks/nrfe/stores0607
http://www.nxtbook.com/nxtbooks/nrfe/stores0507
http://www.nxtbook.com/nxtbooks/nrfe/stores0407
http://www.nxtbook.com/nxtbooks/nrfe/stores0307
http://www.nxtbook.com/nxtbooks/nrfe/stores0207
http://www.nxtbook.com/nxtbooks/nrfe/stores-globalretail07
http://www.nxtbook.com/nxtbooks/nrfe/stores0107
http://www.nxtbook.com/nxtbooks/nrfe/stores1206
http://www.nxtbook.com/nxtbooks/nrfe/stores1106
http://www.nxtbook.com/nxtbooks/nrfe/stores1006
http://www.nxtbook.com/nxtbooks/nrfe/stores0906
http://www.nxtbook.com/nxtbooks/nrfe/stores0806
http://www.nxtbook.com/nxtbooks/nrfe/stores0706
http://www.nxtbook.com/nxtbooks/nrfe/stores0606
http://www.nxtbook.com/nxtbooks/nrfe/stores0506
http://www.nxtbook.com/nxtbooks/nrfe/stores0406
http://www.nxtbook.com/nxtbooks/nrfe/stores0306
http://www.nxtbook.com/nxtbooks/nrfe/stores0206
http://www.nxtbook.com/nxtbooks/nrfe/stores0106-globalretail
http://www.nxtbook.com/nxtbooks/nrfe/stores0106
http://www.nxtbook.com/nxtbooks/nrfe/stores1205
http://www.nxtbook.com/nxtbooks/nrfe/stores1105
http://www.nxtbookMEDIA.com