We’ve posted often about the importance of segmentation, that one size no longer fits all, etc. But all that’s old hat now because there’s new stuff afoot.
What still holds true, however, is that around 70% of all purchasing decisions are made in store. In fact, the new apps we discuss below help support that impulse adage. Long the mantra for buying real estate, “Location, location, location” has now also become a marketing buzzword.
Recently, we’ve watched the popularity of in-store radio grow: a very old medium that has been revitalized by innovative systems like VOXPOP (see 2/11 post) that not only time the message to the moment (and specific store), but also provide lift data post-promo.
As they’ve long said about advertising: 50% of it is wasted…but which 50%? Now, we’re closer to knowing.
We also know that with shopping/social mobile apps such as Foursquare, GroupOn, and others, the ability to pinpoint exactly where customers are at any given time is going to become a key strategy.
There is an acronym for this: LBS (location-based service) and you’re going to be hearing a lot more about it. According to Applied Predictive Technology, LBS or mobile marketing is being quickly adopted by major restaurant and retail chains.
As an example, General Mills offers a two-for-one coupon for its cereals to the iPhone of a consumer standing in the middle of the aisle. Another example is for drink deals broadcast to anyone walking within a block of a 7-Eleven.
The venture capital crowd has allegedly invested heavily in these LBS companies in expectation that these services will displace more traditional couponing channels, such as newspaper inserts. The Mobile Marketing Association (MMA) also claims that consumer interest in mobile coupons continues to grow (but then, they have a vested interest here…)
Lest we abandon all oldies-but-goodies to climb onto this new bandwagon, let’s not forget that no single element a program makes. The key to effective marketing is applying integrated tactics that work together to achieve maximum impact.
Just like with social media, all this input can quickly reach a saturation point with consumers. They’ll just turn off their phones or simply ignore the texts. On top of that, dealing with all this actionable stuff simply adds more time to to the shopping experience, and evidence points to the fact folks want to spend less — not more — time inside stores.
The benefit of “old-fashioned” in-store audio, of course, is that shoppers can’t turn it off but they can tune it out if they wish. It’s not an invasive technology but more of a subconscious influence. Also, it doesn’t take time away from shelf surfing, which is something retailers need to look at. More time staring at your iPhone = less time spending!
Importantly, LBS enthusiasts need to remember that whatever the hot new technology used to deliver the message is, they still need a compelling USP. In fact, it needs to be even better than before because customers need to be driven to take immediate action.
Manufacturers seem to want to control this new marketing technology themselves namely because they claim they can do it all in-house, with no need for agencies. They’re wrong, of course, because there are few corporate suits (read: brand managers) with the zany mind to do this well. This means that the creative strategy part of the marketing plan has never been more important.
In summary: the message is the medium and, despite all the latest gizmos, will always be.