Proximity marketing: what it is and what it is for

Proximity marketing is a fundamental step for companies that want to make the most of their connection with the territory. Connecting online work with digital, leaving nothing to improvisation.

In most cases the idea is to create a website, a social media marketing campaign and an online presence worthy of the name of a brand. Maybe you can think about optimizing Google My Business to work on local SEO .

When you want to focus on a real ability to control the area you have to look at the work from the point of view of the strategy based on a specific territory. Here's what you need to know.

What is proximity marketing

Proximity marketing is any system that uses location-based technologies to communicate directly with customers through their handheld devices. Proximity marketing can include promotional offers, marketing messages, customer support and scheduling, and a variety of other strategies for interaction between a mobile phone user and a location from which he or she is in close proximity.

Means ranging from mobile apps to digital communication based on the evolution of signage . In short, with this technique we try to intercept the user who is near a point of sale by exploiting digital communication in all its forms, trying to intercept his attention to increase conversions.

Why do proximity marketing

At the base there is the need to intercept a specific target passing through an area located near a shop, a hotel or a restaurant. It can also be of interest to supermarket customers and the specific objective is to influence users in real time when they are reached by a personalized message.

Proximity marketing finds ample support in the spread of fast networks, mobile devices and technologies capable of following the individual everywhere.

Just think about the fact that, as Statista suggests , the number of connected wearable devices worldwide has more than doubled in the span of three years (2016/2019).

The real advantages of this activity are clear: creating localized, measurable and personalized advertising based on the target, campaign and objectives. Proximity marketing can be adjusted based on the circumstance , it can be used in a limited time and with maximum measurable results. This makes it easy to understand how to manage the investment.

Principle of proximity marketing

What is the starting point of proximity marketing? The multiplication of moments of truth. There is an existential passage in the world of promotion, one that allows you to exponentially increase the moments in which the user comes into contact with the object of desire. In the past there was a first moment of truth , that is:

The first moment of truth is when a customer encounters your product for the first time, whether offline or online. We are talking about the first 3-7 seconds and it is during this period of time that you can transform an uncertain, curious person into a customer.

The advent of smartphones increases the number of these moments. So much so that we can talk about Zero moment of truth (ZMOT). That is, the zero moment of truth.

This is a concept first used by Google in 2011 and refers to research conducted online about a product or service before taking any action. Here, proximity marketing interacts in this dynamic. How?

Proximity marketing techniques

How to do proximity marketing? From the definition it seems like a complex universe and in fact we are talking about a rather complex area. Technologies such as Bluetooth and Wi-Fi can be used. Radio beacons like those used in museums also apply. Do you want to learn more? Here is a series of examples related to proximity marketing that you can evaluate.

Leaflet

Ancient but still valid technique. It involves placing a person capable of distributing a paper document near your point of sale. Here you can find discounts or coupons. The idea is to exploit proximity and the benefit to find a new customer . Of course, there is nothing digital about it but in some cases it works.

Beacons

We are talking about supports such as Apple's iBeacon which, based on a Bluetooth connection, creates an interaction with people through a physical space.

This technology (BLE, Bluetooth Low Energy) is based on wireless communication with the various smartphones that come within range by sending a notification.

This creates mobile communication regarding an offer, a discount, an advantage that could be of interest to a target. Thus proximity marketing is reminiscent of flyers revised in a digital key, especially if we consider that some proximity marketing techniques involve the presence of QR codes in the area.

Near Field Communication (NFC)

One of the techniques for proximity marketing that does not require an internet connection. Thanks to small transmitters connected to the products in a store you can wirelessly send information, via notification , to people who approach. You can also get comprehensive data on customer behavior and sales.

Geofencing

When you move with your phone, your cellular service is managed between towers. Text message marketing systems can use your location to send text messages only to devices in a specific region. This is known as SMS geofencing . This is not an exact technology, but it can be useful in ensuring that your message is only sent to the target audience you need, at the time you need it.

Wifi

One of the most successful and used techniques for proximity marketing is to offer free wi-fi in a specific area. So you can use this connection to reach users who are in a specific geographic radius.

Although all this may seem relatively useful, consider that these solutions allow you to build a network of important data that a good local marketing strategy can exploit for new advertising campaigns with Facebook Ads or newsletters.

Augmented reality

Here's the future: placing unreal objects on a photo taken by your smartphone to show what this hypothetical solution looks like. We are talking about augmented reality or AR (Augmented Reality) , a technology that requires the use of significant hardware.

Bluetooth

Retailers can use beacons that can be connected to your smartphone. There is usually a mobile app that includes this technology and permission is required. You can stream content over Bluetooth, serve local websites over Wi-Fi, use the beacon as an Internet hotspot, act as a captive portal, offer interactive services, and work without an Internet connection.

RFID

There are various technologies that use radio waves to identify objects or people. RFID works by storing a serial number in a device that identifies an item or person. This information is stored in a microchip attached to the antenna. This is called an RFID tag. The chip transmits identification information to the reader.

Proximity ID

These are contactless cards or contactless ID cards. These cards use a built-in antenna to communicate with a remote receiver within a few inches. Contactless cards are read-only and are primarily used as security cards for door access. These cards may contain a limited amount of information.

Proximity marketing doesn't always require expensive apps and geocentric technologies

If you want to take advantage of contactless marketing without all the technology... you can!

• QR Codes - You can place signs in a specific location with a QR code. When a visitor uses their phone to scan a QR code, you know exactly where they are, can deliver relevant marketing messages, and monitor their behavior.
• Wi-Fi hotspot - You can offer a free Wi-Fi hotspot. If you've ever logged into an airline or even Starbucks, you've witnessed dynamic marketing content sent directly to the user through the web browser.
• Mobile Browser Detection – Include geolocation on your company website to detect people using a mobile browser in your area. You can then trigger a pop-up or use dynamic content to target that person, whether they're connected to your Wi-Fi or not. The only drawback to this is that the user will be asked for permission first.