Jeremy Divinity
Blogger + Digital Marketer

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Macy's Leads The Way With Location-Based Marketing

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It’s no longer about digital marketing, it’s just marketing in a digital world. The goal of marketing within a mobile or digital landscape is still the same but the methodology and execution is different. In order to get consumers to ultimately take action, it is imperative that marketers engage with consumers at the right time and right place. Consumers have change their behavior through mobile and marketers today are using location-based advertising to stay relevant while maintaining a competitive advantage. Location based marketing allows brands to adapt their marketing message based on where consumers are geographically.

According to BIA Kelsey $9 billion will be spent on location targeted mobile ads this year – and that number is projected to surpass $15 billion within the next three years 2018.Takeaway:Brands cannot afford NOT to leverage the power of location-based mobile. Done correctly, no other channel allows brands to reach consumers as precisely and acutely. Source: http://balihoo.com/location-based-marketing-what-your-brand-needs-to-know/
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The mobile phone is not only a marketing channel, but it is also a sensor. Brands can better reach their target consumers in innovative ways with the technology provided by mobile. Consumers can now be reached and engaged whenever and wherever they are. By utilizing location based marketing and geo-targeted opportunities, brands can connect with the consumer in the right place, in the right time, with the right message.

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One brand that is properly utilizing location-based marketing is Macy’s. Macy’s has recognized that location-based marketing not only leads to more in-store visits and sales but is also an opportunity to improve the overall shopping experience for the consumer. Macy’s stepped up from its pilot program to commit to installing 4,000 of its “shopBeacon” devices in store locations this past fall.

My Macy’s localization, developed in 2008 and launched nationwide in 2009, remains a differentiator and sustainable competitive advantage for Macy’s. Our intention has always been to deliver a merchandise assortment and shopping experience in each location that meets the needs of the local customer.” Source: http://macysinc.com/macys/m.o.m.-strategies/default.aspx
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I will now go over the two critical areas of location-based marketing that Macy’s has focused on that have lead to their success of driving sales growth. Those areas are: search & discover, and guest service & engagement.

Search and Discover

“Research has shown that about two-thirds of all shopping trips today start online with customers researching the options at their desktops or on smartphones or tablets” Source: http://macysinc.com/macys/m.o.m.-strategies/default.aspx
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Consumers who use Macy’s location-based application can use the app to search for an item to see if it is in stock at the nearest location, see product details, and get directions to the store along with a link to the item on the website.. The Macy’s app has resulted in an increase of sales in store and online, thus supporting their “integration of the omni-channel” mission. A push notification reminds the consumer to open the app as they approach a location. While in store, the application also provides customized information about items in the store that consumers may not be aware of. Macy’s is able to deliver a personalized consumer experience while also making the search and discovery more efficient for their customers.

Guest Service and Engagement

"We are a multi-faceted retailer with stores, technology, Internet capability and mobile access that come together for our customers," said Macy’s CEO Terry J. Lundgren, in a statement. "They are at the center of all our decisions, and our ongoing research and development will continue to help us understand how to personally engage with them." Source: http://www.zdnet.com/article/macys-rolls-out-retails-largest-beacon-installation/

The Macy’s app sends personalized content to consumers that are relevant to their interest and past purchases, increasing consumer engagement in-store. While consumers make their way throughout the store, the application sends suggested items depending on the department where the customer is located. Those consumers who opt in for push-notifications also received department specific deals, discounts, and rewards.

Macy’s has utilized mobile location-based technology to engage customers more effectively while in-store. By focusing and investing in mobile point-of-sale devices and technology, Macy’s is able to better understand the customer needs allowing them to increase customer loyalty and overall improve the customer experience.