| Under surveillance |
| Thursday, 30 June 2005 | |
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Precision Marketing - For retailers, targeting consumers that are within easy reach of a store makes sense. But are consumers prepared to have their movements tracked and submit to the company's watchful eye? Patrick Dye reports Consumers are drip-fed information on retail facilities through online applications that answer basic questions such as 'Where's my nearest DIY store?' This, however, utilises only a fraction of the information available, as some companies are starting to realise. Websites such as Upmystreet. com, for example, hint at the wealth of data that could be pushed at consumers, while car satellite navigation systems have pioneered the provision of data to people on the move.There is already the capacity to supply details on everything from store location to floor plans online if the demand is there, equipping consumers with virtual pictures of their local retail landscapes. Streetsen sation.co.uk, for instance, supplies photographic representations of key London streets that can be browsed, allowing shoppers to plan trips based on the range of outlets available. In theory, then, it should be possible to expand the range of data available to consumers and allow them to forward plan down to the finest detail. They would thenknow precisely where they were going, what they could expect to buy, and how long the whole process might take. The success of this concept, however, depends on who it is targeted at. Tourists may value a map of unknown shopping districts, but most people know their local shopping centres inside out. And when visiting new towns, they can rely on the homogeneity of the UK's high streets, and trust that their favourite stores will be there. "Ideas in this area can founder on the question of whether anyone actually needs that much planning in their life," says Barry Leeson-Earle, director of data at Tri-Direct. Many people shop because they enjoy it - browsing is a leisure activity that centres on discovering the unexpected. In that light, telling the consumer what they can expect to find before they embark on their trip misses the point. And for those in the opposite camp, who hate shopping and regard it as a chore, there is always online shopping. Such consumers have little need of information on local shopping facilities. But the Internet cannot cater for purchases that require direct interaction in order to make a decision. When the cash-rich, time-poor online shopper has to replace their car, for example, GIS data could lend a helping hand. "It could be possible to arrange to test-drive a number of different cars in one day and rely on a website to direct the buyer to the various local dealerships," says Darron Gregory, senior technical consultant at Vertis Marketing Technology. This would, of course, require different dealers and manufacturers to collaborate over the technological aspects. Neil Fox, director of planning at TDA, believes there is room on the market for a service that streamlines the shopping experience: "People barely have time to see their kids these days, so there is always a market for something that helps them save time." Naturally, providing consumers with detailed information on retailers relies on robust data. But, with around 880,000 retail outlets operating in the UK, keeping tabs on all of them is a tall order - especially with the volatile nature of some retail sectors, and the constant ebb and flow of mergers and takeovers. Experian provides comprehensive data on UK retailers, and can testify to the challenges inherent in this exercise. "We use a number of data sources and verifications, but it is very difficult to come up with a definitive database of outlets in the UK," says Nigel Wilson, director of market planning at Experian Business Strategies. "Even chains struggle to keep their data up-to-date, so lists of outlets on retailer websites cannot be relied upon." The company works with a team of surveyors that produces an analysis of more than 2,000 shopping centres nationwide. That is then cross-referenced with business information sources, such as Thomson Directories and Yell, alongside verification of locations via the telephone. Nectar demonstrates a good use of GIS data. The consortium of retailers has a vested interest in retaining its points collectors when they move house, and goes to some lengths to ensure it does not lose touch with them. "Around 20,000 collectors move every month, and could be potentially lost," explains Peter Beaumont, marketing manager of ESRI, which provides Nectar with geographical data. "They are sent maps showing them the locations of participating stores, and if a competitor's store happens to be closer to them, they also receive vouchers as an incentive to return to sponsor outlets." The concept of providing mapping and facilities data to consumers is still a relatively passive one, relying on a consumer's desire to seek out specific information. A more proactive approach to using geographical data employs the mobile phone. As the vast majority of the adult population now carries a mobile, and therefore a means by which to track their whereabouts, you have an ideal way of monitoring their movements through the retail landscape. Should anyone stray into your catchment area, you then have the perfect opportunity to contact them. Various location-based schemes of this kind have been tested. Most involve sending a text message to the customer when they enter a given area, alerting them to the offers available locally. One scheme run by a credit card company alerted cardholders to the discounts they could receive if they stepped inside stores they were passing. The aim was to reinstate the notion of credit cards as retail tools, and not just sources of personal loans. Obviously, those participating in such schemes have to give their permission to receive text messages, and have their Saturday afternoons disturbed by the bleating of their mobiles. But even with a willing audience, these programmes are hard to get off the ground. To begin with, not all mobiles provide a particularly accurate indication of where their user is. As Beaumont says: "Networks locate a mobile based on the strength of the signal from various transmitters. Even in a town, this may only be accurate to a few hundred metres, or enough to tell if you are at the north or south end of the high street." And introducing the use of mobiles in itself raises a host of issues: "You have to cut through the spam these users may already be receiving and, of course, win their trust," says Gregory. "And you have to avoid sending messages when the network is busy; if people start receiving text messages at 2.00am alerting them to sales that happened the day before, they won't be impressed." Then there is the question of whether text messages are a relevant mode of communication for the target market. Teenagers may be happy to receive them in any context, but if you are trying to encourage a more mature audience to join a wine tasting session in their local Waitrose branch, for example, SMS might not be the most appropriate medium to use. "Location-based services were meant to be the next big thing for texting, but they never really happened," admits Nick Fuller, operations director of Flytxt and chairman of the DMA (UK)'s Mobile Marketing Strategies Group. The launch of Zag Me in the Lakeside and Bluewater shopping centres, back in 2000, presented one of the biggest roll-outs of such a scheme. The service saw over 85,000 consumers sign up but, ultimately, it foundered. Fuller believes the scheme may have failed because of its very ability to locate users. "Consumers could have developed a 'Big Brother' fear," he says. "They may have realised that if this scheme could text them every time they walked past Next, for example, then it knew precisely where they were." Overcoming this natural antipathy towards any system that tracks your every move is no easy task. However, Fuller maintains that, when handled with sensitivity and discernment, location-based text services still have a role to play. "It can work if the service is not too widespread, and is offered on a product-by-product basis." As the mobile phone is such a personal device, care must be taken to provide consumers with tangible benefits in return for the trust they place in companies they sign up to for such services. But, according to Fox, not everyone in the industry sees it that way. "Direct marketing companies are unwilling to trade something for data, and are used to collecting it for nothing," he says. "Now, they have to offer something worthwhile, or people will simply refuse to participate." Ultimately, persuading consumers that geographic data and location-based services can add value to their shopping experience is a matter of gaining their trust and changing old habits. © Copyright Flytxt Ltd 2006. Unauthorized use of any content constitutes a material breach. |
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