Smartphones have revolutionised the way we live, the way we connect and the way we get information. They can go a step further and revolutionise the way we communicate with brands but only if the brands get their approach right.
Our constant on-the-move access to data – and the ability of Apple and Google and the other apps we download to know about our passions, preferences and position have created new ways to put consumer and brand in touch.
But there’s a simple rule for brands that want to take advantage. We will only accept such messages if they accept the implicit value exchange that needs to take place: consumers will be happy for you to have this information and use it intelligently to offer them something they want and will value.
Smartphone data provides brands with the means to deliver better-targeted, more personalised brand experiences than ever before but if they just use this data to support their own interests, the brand will simply be ignored.
The secret to successful location-based work is to use behavioural mechanisms to tailor customer experiences and this will be key for brands that seek to stand out from the crowd and enhance their brand reputation.
A few brands have recognised this bargain and responded in kind, creating messages that deliver real value to consumers.
Virgin Atlantic, for example, has been trialing location beacon technology at London’s Heathrow Airport to generate a more personalised customer experience – providing passengers with reminders about boarding times and gate information, as well as pulling up their boarding pass as they approach airport security.
Macy’s in the US has also been conducting various trials of location-based technology to enhance the in-store experience for their customers. Shoppers can now receive a personalised welcome and access location-specific special offers, rewards and discounts – delivered to the shopper’s smartphone via an app.
McDonald’s China partnered with Angry Birds to create a location-based promotional game to entertain and reward restaurant visitors. Players were able to vote for their favourite McDonald’s in China, with the most popular branch getting a gigantic Angry Birds slingshot attached to its famous golden arches.
The value of taking this approach is clear from our recent research with a large technology brand designed to measure the impact of a location-based campaign that served a mobile ad when the target group were near one of its stores.
The goal of the campaign, which ran in multiple markets around the world, was to drive traffic into the store to see a new mobile phone. It boosted store visits by nearly 100% compared to a control group with 50% of the exposed respondents going on to trial the product in-store.
The message, offering early adopters a first chance to experiment with the latest technology, also increased brand preference by a significant margin as well as affecting the scores achieved by a key rival.
The implications of location-based technology are enormous for the marketing world, far beyond simply direct response campaigns. This is a means for marketers to know much more not just about their target audiences but also about how their other channels are performing.
With location data, brands can finally understand in much more detail the in-store journey, which aisles really grab consumers’ attention and their shopping behaviour.
With location data, brands can also reconsider panel research with a bespoke and accurate look at how exposed consumers have really been to point-of-sale displays or out-of-home sites.
The opportunities for brands – particularly in service sectors such as airlines and banks – to enhance the customer experience is enormous. Likewise many retailers could learn from Macy’s and tailor a more personal shopping experience for each and every customer.
As consumers we will benefit from the fact that smart location-based messaging means that ads are likely to be more meaningful to what we are doing at any given moment. Great ads will become more akin to useful content that enhances our experience of the every day.
Ultimately, giving customers what they want – or even need – at the right place and right time will become a key differentiator. The brands that get this right will build personal relevance and meaning.
Those that get it wrong could suffer from negative impact and probably spook consumers who worry that brands know too much about them. After all, act like big brother or a stalker, and this could have serious repercussions on brand reputation.
By Amanda Phillips, head of marketing at Millward Brown.
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