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PunchTab, a leading omni-channel engagement and insights platform, today released a new study on customer sentiment related to retail mobile tracking that examines consumer concerns along with a growing acceptance of incentives to overcome privacy issues.
The study, “Mobile Tracking: Are Consumers Ready? Gauging Consumer Sentiment Around Location Tracking,” collected findings from 1,100 consumers about how they feel regarding the idea of brands using their mobile phones’ GPS to track their location and offer relevant, real-time information, and offers based on that information.
Here are some key takeaways from the PunchTab study:
· Marketers have some work to do—50% of consumers expressed privacy concerns as a reason for not wanting brands to track their locations.
· 27% of consumers say that they are likely to allow tracking—for the right benefits/incentives.
· 58% of those who are likely to allow tracking like the benefit of getting real-time updates on how many points they have in the store’s loyalty program and whether or not they have any rewards available to use on their current shopping trip.
· Marketers should focus on customers who are positively inclined toward mobile tracking and let these early adopters drive consumer acceptance.
· Retailers should proceed with caution when it comes to earning consumers’ trust—demonstrating that they can deliver valuable offers and assistance sparingly, and with relevance.
· 36% of consumers cite irrelevant or excessive marketing as a concern for mobile tracking.
Aaron Mittman, CEO Sonic Notify, said in the study that the potential of proximity marketing is “compelling for all involved: Shoppers, retailers, and brands. The risk is significant, however. The wrong communication, the wrong targeting or delivery at the wrong time will annoy shoppers and drive them out the door instead.”
According to the study, the most popular reasons for sharing their locations are:
· Coupons and offers (88%)
· Shorter checkout times (72%)
· Targeted alerts about sales and products they like (69%)
· 58% said they would value getting their points status, or rewards availability, via their mobile device.
What’s more, the report notes the types of retailers that men and women would be most likely to allow mobile tracking: superstores (84%), department stores (78%), grocery (74%), and home improvement stores (60%).
Robyn Hannah, VP of Public Relations and Communications at PunchTab, told Loyalty360 that rather than developing extensive campaigns to convince the most negative consumers, retailers should focus on those who are positively inclined and let these early adopters drive consumer acceptance.
“Mobile tracking offers a really cool opportunity for both marketers and consumers,” Hannah explained. “When consumers hear brands are tracking them via their GPS on their phones, it sounds a little science fiction and intimidating. It’s all about building trust with the
consumer. When a customer opts in, brands can’t take that as an open door to sending messages anytime, whether they’re relevant or not. Brands have to be sensitive with that opportunity and send relevant messages, incentives, and offers.”
When it comes to privacy concerns, Hannah believes that trust will allow access.
“It’s really about establishing a baseline of trust and knowing there is a value,” she said. “There are going to be offers very much driven by value. I’ll give you my data and information about my location if it serves me. Those early adopters will help the outliers. Once people they trust are doing this and reaping the benefits, they’ll get onboard. When incentivized, consumers are more likely to buy and they’ll advocate for you.”
To download a full copy of the report or to view the methodology involved, please visit: http://loyalty360.org/resources/research/mobile-tracking-are-consumers-ready
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