Geofencing
may go mainstream this year, says the Things to Watch in Retail 2013 report
from JWT. The global marketing company formerly known as J. Walter Thompson
predicts the practice will become an effective weapon in retailers’ fight
against showrooming.
Geofencing
refers to an opt-in text-messaging system triggered whenever the recipient
walks into a store or its nearby environs. Stores are able to text special
offers aimed at clinching an immediate sale on the premises.
Although
geofencing has been available for several years, it’s been used mostly by
specialty retailers on a limited basis. Now, though, JWT sees signs that it’s
expanding into mall chain stores such as Best Buy as a means to persuade
shoppers to purchase in person rather than just browsing in the store and going
online to buy from another merchant.
For retailers
catering to young adults, or really anyone trying to get the attention of the
college student-aged cohort, text messages could be the most effective means of
reaching this age group, better than e-mail, snail mail, or possibly even
social media. A new survey of 1,500 smartphone owners conducted by Experian
Marketing indicated 85% of 18- to 24-year-olds use their phones weekly for
texting, compared to just 59% of owners across all ages.
On average,
according to the survey, the under-24 set sends and receives more than 120 text
messages a day. Many keep their phones bedside every night just in case they
get a message and consider texts to be on the same personal level as phone
calls.
