Smartphones are not limited to notifications only. They also serve businesses to record what customers do.
The smartphone is becoming an increasingly important tool for retail and companies are working on new ways to use them for their business.
If you walk by a subsidiary, for example from the appliance store Media Markt, it may happen that the phone suddenly comes a message with an offer to buy new headphones at a discounted price. Because this firm uses the “geofencing” method, that is, if there is a smartphone near the store, potential customers are attracted with offers. Of course, the consumer must have installed the Media Markt app and the function of allowing notifications.
Mobile devices are becoming more important on the one hand because users buy through the smartphone or tablet in the same way if you want to put your hous for sale in Rosarito. But on the other hand they also constitute an interface that takes advantage of retail. Most people have their smartphone always with them, and therefore are within the reach of advertising.
And they are not limited to notifications, as merchants can also register their customers’ activities in physical stores. Spaan estimates that about 20% of merchants in Germany experiment with “tracking” methods in their stores.
While visits are measured in online commerce, clicks and purchase rates with analytics tools and purchases are optimized with this data in mind, traditional merchants depend more on their intuition.
It is natural, therefore, that the merchants want to change things, and one option is to monitor by WiFi using sensors placed in the store that capture the phone’s serial number. One of the companies that produce anonymous profiles for merchants is Minodes, which belongs to Telefónica.
Among its clients is, for example, the luxury fashion brand Escada. “With the help of data analysis, the owner understands customer flows better and can adapt to their needs, for example, the renovation of products, opening hours, the decoration of the premises, the presence of staff or marketing” explains a spokeswoman.