KFC China fast food restaurants accepted Alipay mobile payments since July 2015. McDonald’s China also adapted Alipay in September 2015. Consumers now can use unique Alipay QR code in their smartphones to pay for the orders, which transactions will take only two seconds or less. It will be more convenient and efficient for both customers and cashiers. All KFC restaurants in the country only accepted cash payments in the past 27 years. Though Alipay simplifies the payment process, yet the benefit of creating consumer behavior database has been the main reason to accelerate the cooperation of these two industry giants.
For retailers in food and beverage or FMCG industry, knowing consumer behavior and target customer segments for different trade zones is as important as improving product and service quality. Classify customers into different groups in terms of different needs and characteristics to optimize its products and marketing mix for store performance improvement.
Usually, brand owners could pull out consumer behavior data from CRM database. Yet it’s hard to attract people to sign up for the membership program without big incentives such as discounts or exclusive deals. Now collecting consumer data through mobile payment makes it easier. Using big data technology to build customer profiles, to forecast the spending potential from purchase orders. Specify demographics like age, gender and behaviors like product-purchase interests in local areas. Identify high potential customers regarding different trade zones to enhance sales promotion and market strategy planning for better store performance. Different target segments in different trade zones could also be a good reference for the new store location selection, sales forecast and lease negotiations.
Mobile payment not only provides superior customer shopping experience, but supports the demands of O2O commerce. Retailers could also use big data analysis to find out who are the most desirable customers, and then create personalized offers which they are likely to buy.
The goal of the marketing is always to send the right message to the right people at the right time on the right spot. Location-based marketing or geo-marketing seems trendy now but it is not a new idea at all. Traditional billboard ads at “selected” locations, or “regional local” TV commercials are also applying “location-based” concept in marketing campaign since it is broadcast the message to certain target audience by selected areas.
In the earlier web era, marketer used email or other web site to do promotion electronically but had not much choices on location or target segments. It was just a transformation from printed format to electronic format and was still a blind and massive way to push “unappreciated” message out to consumers.
Location-based marketing helps target consumers more precisely
Sending out the “right” message to target consumer is always the challenges to the marketers. With new technology and mobile device wildly adoption, it is now possible to capture where and when the consumer is, which presents consumer’s lifestyle as well as the product preference or interests. In short, location-based marketing can be more precisely target the potential clients to raise the campaign success rate. There are two main technologies used in location-based marketing currently:
Geofencing – It is the application or software that use GPS technology to establish a virtual perimeter or boundary around a physical geographic location, which requires satellites and cell phone towers to communicate with mobile devices. It is used in outdoor and larger areas to identify consumer’s proximal location.
Beacon – It is a device by using bluetooth technology to constantly emitting a signal to the receiver (mobile device) within a very short distance to trigger an application. It is usually used indoor to know more precise location of the consumer.
With those two technologies, marketers can track the consumer no matter they are indoor or outdoor, and hold different marketing activities to consumers based on the locations and time.
Nowadays Location-based marketing usually involves the four elements:
Smart phone/ tablet device – It is the central media to interact with consumers. Without the device, it is impossible to make the campaign happen.
Proximal location identification technology – As described above, it is to get where the consumer are in real time.
Campaign APPs – All the promotion idea and objective of the campaign are delivered through the APPs, which is the most critical part of the marketing activities.
Consumer’s behavior database/ model – No matter it is real time analysis or pre-set model, marketer needs to know what the consumer is interested or care, so that the appropriate message/ actions can then be brought to consumers.
More and more retailers are using location-based marketing campaign and getting good results from it. It is not just the trend but seems like an essential element to involve location component on all service to bring customer with better experience on shopping.
Below are some interesting and successful location-based marketing cases:
The Montana Bureau of Tourism, USA, winter of 2013-2014 : Pre-setting targeting consumer and analyzing demographics, sending out the relevant ads to those people who have visited ski-related store or locations in that season. This campaign combined consumer analysis in-advanced.
American Eagle, USA, 2013: Shopkick roll out 100 AOE stores with iBeacon trial plan. Customers will get message of the specific promotion of the store righter after they walked in the door.
Macy’s, USA, 2013-2014: in 2013, Macy’s applied iBeacon with opt-in app to track customer in store for promotion, and it seems play a big role for the 2013 black sales. In 2014, Macy’s combined the Apple pay to enhance customer’s shopping experience and convenience in store.
You have heard that over than 80 percent of enterprise data has spatial components based on IDC market. But what is Location Intelligence got to do with it? and how can it transform your data from an underutilized asset into a source of competitive advantage?
By mapping locations, agencies and businesses can find new insights about business operations and processes, and improve services for customers. For organizations, the use of business location data and GIS increases collaboration across the agency, along with improving business functions. In many instances, GIS software can be layered on top of CRM or ERP systems, making implementation very easy, and leveraging resources in new ways.
Location analytics is a critical business asset that will provide a competitive advantage by adding geographic and location context to information enables organizations to understand more about their customers, whether they are other businesses or consumers. It provides critical business insights, enables better decisions and improves processes and performance. Location awareness can benefit efforts in marketing, sales, and customer acquisition and retention; logistics and supply chain management; and financial and operational decisions, not least among them where to place retail outlets, business assets and people in various functions. It also can increase the value of technological innovations such as business and social collaboration, and even mobile technology that is used by the business and customers along with the analysis of social media commentary and other expressions of customer sentiment that could be part of big data efforts.
Here are a few examples of how location intelligence is being used today in a variety of different industries.
Site Selection: The decision about where to locate a new store or facility, is probably the most common application of location intelligence today. When location data is combined with available real estate, demographic data, current customers characteristics, and information on the most likely prospective customers, the resulting Location Intelligence can help identify a site location with maximum revenue potential.
Store Performance Management: Detect and categorize poorly performing stores and assess the strategies to uncover the relationship between stores, products and customer types that affect sales performance. In addition, location intelligence can be used to forecast and develop store-specific budgets and expectations based on the size of surrounding demographics and other location specific information.
Risk Assessment: Location is extremely important in the insurance industry, where customers and natural disasters are both tied to a location. When a natural disaster occurs, insurance companies have the capability to instantly understand their claims exposure by visually plotting their customer data and the affected area on a map. This also allows them to more accurately estimate the number of resources they will need to service claims in an affected area.
Customer Preference: Understand who your consumers are and where and when they want to engage with you. Optimize retail stores for maximum customer engagement increasing profits and brand loyalty.
Healthcare: a significant percentage of disease is caused by environment. There is a tremendous amount of knowledge to be gained and disease to be reduced or eradicated by understanding these effects. Health records tied to user home and work location can be a massive benefit for researchers.
Government Public Affairs: Monitor and identify pollution violators. Determine deteriorating areas of a city and revitalize. Gain more input from citizen reporters and be able to analyze and take action. Create transparency to stimulate self-regulation at scale.
The general definition of informal economy sector is basically the non-agricultural employment that is viewed as outside of modern or regulated industrial sectors. The work or the activities usually take place in unregistered or small enterprises, such as street vendors or home-based workers. However, informal employment outside informal enterprises, such as employees working in enterprises but not covered by social protection through their work, like day labors. Widely speaking, the informal employment is the employment contrast to the formal regulated sectors.
Nearly 70 percent of all business data contains a location component, which means the use of maps and new digital mapping tools is becoming more and more important for businesses of all sizes. Here’s a list of five mapping tools that can make your job easier.