PunchTab, the leading omni-channel engagement and insights platform, today released a new study on consumer sentiment related to retailer mobile tracking. More than 1,100 consumers participated in the study, which reveals the top consumer concerns for the marketing tactic, which uses mobile devices’ GPS to track their location and offer relevant, real-time information and offers based on that information.
The report also reveals the types of retailers where consumers perceive mobile tracking as beneficial, as well as ways for retailers to overcome consumer concerns.
Top consumer concerns for mobile tracking
Privacy was the top consumer concern related to mobile tracking, with more than 50 percent of consumers citing it as the reason they would not want a retailer to know their location. Excessive marketing provided the next largest reason for consumer concern, with more than 36 percent citing the frequency, intrusiveness, and irrelevant messages as deterrents.
Overcoming mobile tracking privacy fears
Despite privacy concerns, a large portion (27%) said they would likely allow mobile tracking if given the right incentives. The most popular reasons for sharing their locations were coupons and offers (88%), shorter checkout times (72%), and targeted alerts about sales and products they like (69%). Fifty-eight percent said they would value getting their points status, or rewards availability, via their mobile device.
Surprisingly, 50 percent of consumers “on the fence” about their likelihood of allowing mobile tracking were more likely to try it as the value of the incentivized coupon increased.
In addition, the report details the type of retailers that men and women would be most likely to allow mobile tracking. Among those who were positively inclined towards tracking, their preferred retailers were Superstores (84%), Department stores (78%), Grocery (74%), and Home improvement stores (60%).
“While mobile technology allows marketers to deliver relevant and timely marketing messages, privacy concerns have traditionally carried more weight,” said Robyn Hannah, VP of Public Relations and Communications at PunchTab. “What we’re seeing in this report is that consumers aren’t hesitant about mobile tracking just because it’s new and different. Some of the other main drivers include fears around receiving excessive and irrelevant marketing messages. These fears can be allayed with incentives, but the catch is, marketers need to adopt a data-driven approach to understand where the ‘sweet spot’ lies. And by connecting with early adopters marketers will drive broader consumer acceptance.”
To download a full copy of the report or to view the methodology involved, please visit: http://engagement.punchtab.com/research_brief_mobile_tracking_consumers