Webinar Recap: Proximity – the Fifth P of the 4 P’s of Marketing

Ray Hartjen
Ray Hartjen
Guest Contributor

Proximity is quickly becoming the “5th P of Marketing,” as mobile applications provide new opportunities to engage shoppers and measure results.

Today’s retailers are no longer bound to their predecessors’ traffic counting systems. Traffic 2.0 now enables stores to better understand their shoppers beyond the metrics of “how many” and into descriptors such as “who,” “from where,” “what are they doing,” and “why are they buying (or not buying)?” Plus, traffic counts not just shoppers in the store, but the capture rate of the shoppers in close proximity.

On top of today’s robust Traffic 2.0 platform, mobile technologies deliver an opportunity to interact with shoppers in real-time, opening a dialogue between store and shopper, and producing dramatic results, not just with the shopper experience, but on key store performance metrics as well.

On Tuesday, October 14, Jeremy Geiger, CEO and founder of Retailigence, joined Bryan Wargo, head of sales for RetailNext, and facilitated the latest installment of the RetailNext webinar series, Dynamic Foot Traffic:  Proximity Marketing and Real-Time Metrics to Lift Sales and Services.

Proximity is not just the newest advance used case for a retailer’s traffic platform. It’s quickly growing to challenge the most fundamental thoughts of Marketing – Proximity is making noise to become the “5th P of Marketing,” joining Product, Price, Place and Promotion.

The heart of proximity marketing is engaging shoppers when they’re in the vicinity of a store. Most often, the messaging tactics follow a simple progression:

  1. Branding
  2. Promotion
  3. Path-to-purchase guidance
  4. Call to action

However, the key to an effective proximity deployment lies in targets and triggers.

Proximity marketing messages should target specific customers who are most likely and able to impulsively take path-to-purchase actions, and considerations run from road logistics and the location of competitive stores to historical shopper flow patterns and the distances shoppers will travel by specific product category. In addition, there are audience and contextual factors that will influence marketing decisions, including urban/suburban/rural, consumer/commercial, and simple household demographics. 

Triggers, on the other hand, include business conditions like inventory (Has the new designer apparel collection arrived?), current transaction levels (Is the store above or below forecast, and on what items?), and price movements, from both manufacturing brands and competitive stores. Triggers can also be environmental – if pollen counts are high, proximity messaging around allergy medication could very well spur traffic and sales.

Mobile technologies are rapidly redefining retail, and new best practices are emerging, none perhaps as intriguing as proximity marketing. If you missed the webinar, or if you want to share with your team, just click here to watch the recording.  And, if you want to catch up on any previous webinar in our monthly series, visit our site to browse through the recordings.

Stay tuned for announcements on upcoming webinars!

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