In a challenging environment, one of the best ways for retailers to grow and thrive is to generate customer loyalty. Adopting a customer reward or loyalty program has long been a popular strategy, but changes in the retail landscape have made many loyalty programs less successful, and consumer expectations are changing. Above all, customers now want to feel appreciated, and instead of a simple transaction-based reward, many now want personalized rewards that acknowledge the relationship they have with the retailer. Geolocation is one of the best ways for retailers to meet these expectations.

The most common ways of obtaining geolocation data are geofencing, beacons, and Wi-Fi proximity. Geofencing uses the GPS locations transmitted by mobile devices. It is most effective when used for small regions such as neighbourhoods or streets. Beacons are even more precise. Placed in a store, they receive location data from nearby devices via Bluetooth, and can provide with information about how people move around and shop in a store. Finally, when customers login to a retailer’s Wi-Fi, they provide data that can be used to generate precise notifications.

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The primary advantage of geolocation data is that it offers an opportunity to gain additional contextual information about a customer. Geolocation data lets marketers gain insights on how customers interact with their mobile devices, and in what contexts. Through these insights into customer behaviour, retailers can do more to anticipate customer needs. Here are some questions for retailers to consider:

· What is the customer looking for, and why?

· What brands does the customer prefer?

· Is the customer a new or returning visitor to this location?

· How does the customer want to receive communication?

By gaining answers to questions such as these, retailers can “incorporate timeliness and context into communications to support relevance.”[1]

Here are some additional advantages that geolocation can bring to a loyalty program:

Targeting: Geolocation lets loyalty programs send notifications to customers within a specific area, increasing the likelihood that they will respond and redeem a reward. By sending notifications only to customers who are likely to redeem a reward, loyalty programs reinforce positive impressions in regular customers, and avoid generating disappointment among those customers who are not close to a store.

Personalization: While rewards typically highlight the products that a customer has purchased in the past, it’s equally important for retailers to recognize those products that a customer has no interest in. Offers for these products are unlikely to be redeemed. Because geolocation data can identify which areas of the store a customer visits, offers can be extremely precise.

Program growth: Geolocation data allows loyalty programs to communicate with non-members as well, and it can generate communications designed to encourage enrollment such as special offers for new members.[2] These are more likely to be redeemed if an individual is frequently near the retailer.

Feedback: Geolocation data can be used to generate customer feedback surveys. Frequently used following customer visits, these can also be used to prompt return visits after an absence, and can be further personalized based on previous purchase history.

At its best, geolocation allows retailers to provide personalized offers to customers that are relevant in the moment. Platforms such as Geon.network, which allows retailers to generate customer interactions using blockchain-powered virtual beacons, offer many use cases (including token-based rewards and personalized surveys) that can result in highly satisfied customers. Convincing customers that a loyalty program will add value to their lives is one of the greatest challenges for any loyalty program. When used to generate stronger customer relationships, geolocation data is a powerful tool that can bring many positive rewards for retailers as well as customers.

[1] https://excentus.com/how-geolocation-drives-loyalty/

[2] http://blog.mocaplatform.com/retailers-geolocation-customer-loyalty-programs/#.W9H-t_ZFxhF