Thursday, February 25, 2010

Driving offline traffic via mobile technology

On the web, eCommerce sites are trying to reach higher rankings based on keyword search to drive as much traffic to their sites as possible. This trend is catching on offline as well. Retail businesses want to join in on driving traffic to their stores. How will they achieve this?


A new technology called ShopAlerts, powered by a location based startup Placecast are launching a new marketing service for retailers. ShopAlerts allows users to opt-in on receiving text messages in a variety of ways - at the store, online, text-message, mobile websites or on Facebook. When ShopAlerts has been activated, users will receive alerts via mobile on nearby businesses. Using virtual boundaries, targeted consumers within proximity will be able to see sales and special offers at the brand stores. Companies that join ShopAlerts will be able to customize their messaging and alerts to consumers. Some of the current major retailers include: American Eagle Outfitters, REI, and North Face..


ShopAlerts works on both smartphone and non-smartphones, so this comes real handy for fashionistas and shopoholics! Note that ShopAlerts cannot send more than 3 text messages from a retailer in a given week. This said, I assume that a consumer will receive individual texts from each retail store. However, don't worry, if you feel you will be overwhelmed by all the text messages. You may opt-out of ShopAlerts at any time.


We will see how well this mobile marketing service works out. Love the idea! However, one flaw that I see foreshadowing is the age range of people using mobile and how easily accessible it is to opt-in. Once retail brand stores opt-in, I'm sure restaurants and diners will be jumping on the band wagon or demand for a service similar to ShopAlerts for the entertainment, food, and hospitality industry. This will be followed by clubs and bars joining in. Do we really want to market bars/clubs to underage children?


My thoughts are as different lines of businesses join in on ShopAlerts, we will receive separate texts based on different business categories. Either by a difference service provider, or by ShopAlerts (if they expand and customize functionalities for other types of businesses).

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