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One of the challenges that every business faces is understanding customer wants, needs, and preferences. Do your clients enjoy having a stroll around a store? Or are they short on time and prefer ordering online? In either case, they are individuals, who would like to be treated with respect, and so - enjoy personalized communication.

This is where Proximity Marketing steps in. This solution takes an innovative approach, which allows you to connect with your customers while they are at your store, collect physical insights, and build a complete portfolio of your audience by successfully bridging online/offline behavior data and marketing activities.

1. Proximity Marketing and iot markets overview

Proximity Marketing is based on connectivity, and is a part of the wider Internet of Things (IoT) ecosystem. Thus, to properly estimate this market, we should take overall (IoT) trends into ccount.

For instance, BI Intelligence states that IoT markets (including the Proximity Marketing) will grow explosively in the coming years, increasing to 34 billion connected devices by 2020 (as compared to 10 billion in 2015) comprising 24 billion IoT devices (70% of the total number).

Additionally, around USD 6 trillion is expected to be spent on IoT solutions from 2016-2021.

According to Markets and Markets, the Proximity Marketing market is forecast to reach USD 52.46 Billion by 2022, growing at a CAGR of 29.8% between 2016 and 2022. Early in Q1 of 2016, Proxbook expected 1 million beacons to be purchased and deployed in Retail stores in a single year. The same source announced USD 115.7 million as the total sum of investments made in Proximity Marketing hardware and software (as of Q1 2016).

Later in Q3 of 2017, Proxbook reported that Retail (including shopping malls) keeps the leading positions for Proximity Marketing deployments and stresses that the solution can satisfy the needs of both large retailers and SMBs, allowing them to boost operating profit by 8%, and achieve 365% ROI.

Therefore, it is important for companies wanting to get the most added value from the coming IoT transformation to take notice of both technology and business trends, familiarize themselves with the existing use cases and put them into practice. completely secure environment.

2. Problem vs Solution

There are multiple business and technology trends in different industries. Let us take a closer look at Retail. It is all about the omni- and multichannel approaches a potential customer uses on the way from the awareness to the decision stage. Thus, being surrounded by tons of product-related information, customers can either browse a vendor’s website, read through social media posts, download a mobile application, or come straight to the store.

Focusing on reaching out to customers via online channels, but forgetting to interact with them while they are at a store is a mistake. At the same time, analyzing online customer behavior and leaving out the data generated in the physical world will sooner or later lead to an increase in the number of lost business opportunities.

Thus, in order to understand and analyze customer behavior across multiple channels, business needs to learn how to capture physical customer data (location) and simultaneously reach out to them with timely and relevant information.

The Proximity Social Marketing solution provides location-based advertising tools that can address these requirements and generate offline customer behavior insights, especially if complemented by a Real-Time Location System (RTLS).


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