Locate Mobile Shoppers in Your Space

It’s said that when William T. Dillard—who founded the Dillard’s department store chain—was asked what were the three most important factors for the success of a retail operation, he answered, “Location. Location. Location.” He’s often credited with originating that phrase.
     Developing technologies are adding a new meaning to the importance of location: Brick-and-mortar retailers should use information about the physical location of their target customers. The GPS capabilities of mobile devices will be allowing you, among other things, to track when a potential shopper is approaching your store and how a visitor is navigating through the aisles.

• Give real and virtual rewards for digitally checking in. Shopkick gives consumers gift certificates for certain numbers of check-ins at the stores of their retail clients. Starbucks grants the title of store mayor to the smartphone owner who has the most check-ins with that store during a 60-day period. These are really technology-augmented frequent shopper programs. Researchers at University of Southern California and University of Pennsylvania find that such programs work better if you give the new user a head start with a couple of extra credits as they begin.
• Involve the consumer beyond just checking in. Campbell Soup Company plans to encourage grocery store shoppers to scan the UPC code on a can in return for the opportunity to compare prices and write reviews. A number of retailers are building game mechanics—such as scavenger hunts—into the apps for shoppers. Researchers at Bournemouth University in the U.K. find that when real store brands meet with online games like this, it’s important to keep the games fresh. So change the rules and the challenges periodically.
• Encourage shoppers to use their mobile devices to keep each other posted about their shopping experiences and to invite others to participate. Don’t limit this to the people at home. How about, “Did someone come shopping with you today, but is in a different part of the store? Get in touch with them using your mobile device, tell them where you are, and get their thoughts on what you’re shopping for.” A repeated finding in consumer behavior research is that when people shop in groups, they buy more than when they shop alone.

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Give Loyalty Program Head Starts
Encourage Group Shopping