Indoor Location Technologies: The 5x Engagement Factor

What happens when you give in-store shoppers some additional (and helpful) tools within your store’s branded app? If they’re the right tools, you may be astonished. Point Inside conducted an interesting study on indoor location technologies in 2012, and the results were so compelling that the question for retailers is not “if” but “how soon” can they can they add them to their apps.

The most significant finding was that adding indoor location technologies to retailer mobile apps improves shopper engagement by five times. And while it’s been known that these features are beneficial for both the shopper and the retailer, this data shows that indoor location has a significant, measurable and positive impact on in-store shopping.

The data resulted from a year-long A|B test conducted by Point Inside with the goal of understanding the influence of indoor location technologies on shopper engagement. The test involved identical retail apps where one had indoor location technologies and the other did not. Collectively known as “store mode,” these capabilities include indoor maps, product locations and efficient routing through the store.

The data covers 2012 and is aggregated from multiple clients. The test included more than 1 million sessions from more than 25,000 unique users.

Turns out it’s the integration of the physical store with the app that drives the increased engagement. Store mode connects the in-store mobile shopper to the store and, in doing so, delivers significant value for both the customer and the retailer.

Shoppers can more easily find the products they want by seeing the products’ exact locations as pins on an indoor map. Shoppers can also view an entire shopping list mapped in the store, showing the most efficient route covering everything on the list. All in all, it delivers a more efficient and enjoyable experience.

Retailers benefit greatly, too: they can see customer’s shopping lists and use it to create a more compelling shopping experience through personalized offers and product suggestions. Store mode also provides deep analytics into in-store behavior, including the where time is spent in the store and the efficacy of promotions.

The increased engagement drives better connections between retailers and shoppers. Customers get better service and value. Retailers gain a better understanding of their customers and increased loyalty. Retailers also get increased sales and more efficient marketing programs.

Additional results from the study include:
• The study also shows the fastest growing segment to be shoppers who used the apps 5 or more times in a month. This segment more than doubled in size throughout the year.
• In comparing the use of coupons, those who used the app clipped more than four times as many coupons as non-app users.

In-store shopping still accounts for more than 90% of retail sales, and with more than 80% of smartphone owners using their mobile devices for shopping, the new world of shopping is already here. Pretty solid math that shows retailers have a tremendous opportunity to take advantage of store mode capabilities in their apps and increase their customer engagement five-fold.

Take advantage of it before your competition does.

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