Retailers to Rely on More Location-​Based Mobile Promotions in 2014

Consumers are growing more comfortable with the concept of sharing their location with vendors. Most smartphone users understand that tech giants like Google know where they are when they use a mapping service. Now, shoppers are saying they’re willing to share their location data with some Teensretailers, in exchange for something of value, according to Swirl, a mobile-​marketing platform provider.

Swirl hired ResearchNow to study the opinions of 1,000 consumers on the topic of location-​sharing. The research shows that 67% of consumers are already relying on smartphones for in-​store shopping communications and taking the following actions as a result of what they see on their screens while they're wandering the aisles:

  • Open shopping-​related alerts: 81%
  • Made a purchase in the past 6 months based on this type of alert: 79%

These days, about 65% of smartphone owners are ready to trust retailers with their location data. Here’s what the willingness-​to-​share numbers look like with respect to specific types of marketers:

  • Favorite retailer: 65%
  • Shopping/​Deals app: 45%
  • Google: 42%
  • Social app like Facebook: 37%

Despite these promising numbers, consumers will not always act on the information that appears on their smartphones. Offers that are not relevant to a specific shopper or location will turn off 41% of these folks. Insufficient value will cause 37% of folks to ignore these promotions. Other consumers (16%) find the whole idea annoying or don’t both to opt in at all (6%).

Swirl analysts expect retailers to use more targeted in-​store marketing promotions in 2014. Retailers are in a great position to optimize revenue in this way, especially if they can personalize their pitches. Many of these marketers already have an established relationship with shoppers and a base level of trust. The key to successful promotions will be to find the right level of frequency for communications and the sweet spot for the discount.

If you're working with retailers, have you suggested a location-​based mobile campaign?

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.