Bluetooth: The King of Proximity Marketing

What is Proximity Marketing?

Proximity Marketing is a new form of marketing that targets customers when they are in the proximity of a target item or place. There are a few technologies that enable this type of marketing. The technologies are Bluetooth, GPS, NFC, and WiFi. All of these technologies can do the same types of things when they are synced up with an application or “app”. An example of what these technologies can do when connected to an app is send customers coupons or promotions when they are in the proximity of a target item or store.

Cost and Range of Action

The main differences between the technologies are the area in which which they take effect and their cost. Bluetooth and Wifi have roughly the same range of action which is roughly 70M, however, the cost of WiFi is higher because you need to pay for data usage on the WiFi device providing the internet signal. Bluetooth devices don’t use an internet signal. They simply send essentially free Bluetooth radio waves once you buy the actual device. The cost for these Bluetooth devices is usually about $35 each while WiFi will generally cost you about that much or more per month in data usage plus the cost of the actual internet connectivity device. Near Field Communication or NFC is very accurate since it only works when devices are within about 2 inches of each other. However, when sending customers promotions when they are within range of a target item or store it is very easy to miss a 2 inch target so NFC is essentially useless for Proximity Marketing. What NFC is good for is contactless payments where you just put your phone close to the credit card processor and your payment is deducted. GPS is good for broader range Proximity Marketing but it is flawed when accuracy is important. For example, GPS technology would have a hard time determining if you were in aisle 1 or 3 of a grocery store. It would know you were in the store but would not likely be able to determine where you were to a higher degree of accuracy. For the reasons outlined above, Bluetooth is king for Proximity Marketing due to it’s low cost and high degree of accuracy.

Adding to the Marketing Strategy Puzzle

Marketing is complicated and as new technologies improve it, the more complicated it gets as a result. Marketing can therefore be seen as a puzzle with many different pieces that need to fit together perfectly. To gain customer interest you have TV or online commercials, print ads, digital ads or other content online, and a website amongst other things. Once a customer is interested they come into your store, restaurant, or business and you may have some signage or a salesman to help assist with purchases but it is at this stage that marketing breaks down. Once a customer enters your store how are you ensuring that they follow through with making a purchase and aren’t just a window shopper? How are you ensuring that they increase their spend with you? There is a piece of the marketing puzzle that is missing and Bluetooth Proximity Marketing can be the missing piece you need to gain both higher revenues and customer satisfaction. With Bluetooth Proximity Marketing you can send your customers customized promotions, coupons, and upsell opportunities as they walk in your door at the moment where they are deciding if they will buy from you or how much they will buy from you. Not to mention that the technology uses a smartphone app and in this day and age people can’t get enough of smartphone apps, especially the Millennial generation which is currently the largest and most influential customer segment.

Who is using Proximity Marketing?

As of right now mostly very large retailers and restaurants are using Proximity Marketing as part of the marketing puzzle. Small and Medium sized businesses have been slower to adopt the technology. This is unfortunate because large retailers already have a major advantage over SMBs and by using Bluetooth Proximity Marketing they are eating up more and more of the market. If you are an SMB reading this make sure to do your research and see if Bluetooth Proximity Marketing can help your business because your competition is likely doing that research or have already adopted the technology to ensure they have higher customer conversion rates and that those customers are increasing their spend.

As described above, Bluetooth Proximity Marketing is quickly becoming a necessary piece of the marketing puzzle. This technology isn’t only good for higher revenues though. Customers also benefit from a more fun and interactive buying experience and a better value from the products they are already buying. What are you doing to increase your revenue and provide an unforgettable customer experience?

This article was written by Joshua Zielinski, Founder of Watson & Behringer.