Resources for the Local Economy: In-Store Proximity Marketing
Will In-Store Proximity Marketing support local economies? The idea is you download an app that suggests items to explore when you enter a shop, according to your interests. When you visit a store, the app will tell you of offers that might interest you, via beacons attached to the products in the shop. A helpful introduction to this technology can be found at Will Shoppers And Developers Adapt to Proximity Marketing In-Store?
So, let’s be clear. This app works once you enter a store. It doesn’t necessarily help you find the store in the first place. What it does is connects you with items in the store, the app knows will interest you. It can also make special offers.
So, does this technology potentially support the local economy? My answer is a qualified yes. One major threat to local shops is the Internet. In my post Our Town Centres Today, I reference Julian Dobson’s book, How to Save Our Town Centres, where he describes three threats to neighbourhood centres and one of them is the Internet.
How so? Well, some people look at products in stores and then search for them online where they can purchase them at a more favourable rate. Proximity shopping can to some degree mitigate this by making the in-store experience more like the online, offering favourable deals to people known to be interested in the product.
So, imagine being in a bookshop and you are looking at a particular book that interests you but it is a bit pricey. The app knows your past purchasing and that you enjoy that type of book. It pings you with a special offer, perhaps a 10% reduction if you buy it now.
This could easily be combined with local currencies. The 10% discount could be made conditional on a purchase with a local currency. If the local currency provided the app, it could build a local database of information about local customers. In effect the app would help shopkeepers get to know their customers. (Normally, a large store will have its own server to manage proximity marketing. For small businesses, smaller stores could share a server and even allow the app to take customers between shops.)
To some extent this is speculation. Whilst there is no doubt people are working on these apps, there is no guarantee they could be integrated with local currencies. But then we never know if anything works, unless we experiment.
Serendipity
However, I have one reservation. One common feature of apps that personalise the retail experience is they reduce potential for serendipity.
One big advantage paper books have over electronic books is they are far easier to browse. Similarly a bookshop or library can be browsed. This increases happy accidents, finding things you would never predict would be of interest.
To what extent would proximity marketing form or shape our preferences? The effects could be subtle, after all the app working well would point us towards things we know we like. Who would argue with that? What if a shop opened and no-one went in because their proximity apps told them, it contained nothing of interest to them? The shop closes and no-one would miss its contents.
So, what do you think? Would proximity marketing mitigate the effects of the Internet on local centres or would it subtly impoverish our lives?