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Clienteling & Geofences - Client Tracking and ROI

Tuesday, June 18 2013 8:34 AM
By Kalen Kubik

What is Clienteling

Clientelling is the ability for your client to inform you of their purchases, shopping frequency and how effective your advertising is, through tracking their purchases and movement.


What is Geofencing

Geofencing is a network that is setup around a storefront. Through my app id, it will track my movements. We'll get into how to utilize this tech below.


How are they tracking people?

Your phone is your personal mobile device. You probably know where your phone is more often than you know where your kids are. Consumers do not go anywhere without their smart phone, and smartphones make up a large percentage of personal devices in the United States.


With so many app downloads a year, people are looking for applications that offer value. In exchange for this value they are willing to trade certain privacy measures, such as their location tracking information. After all, most app user agreements state that the app will pull info from them. That is how FourSquare and Check-ins work, through satellite geotags.


How to leverage Geofencing & Clientelling

Geofencing is similar to an invisible dog fence, except for shocking a pet you're tracking a customer. If I'm driving down the road a quater mile from a Cabela's, my Cabela's app might push a notification to my phone saying, "Kalen, stop in today for 30% off Duck Waders." Now, Cabela's already knows I love to duck hunt because they've tracked my purchase history and big data tells them I do. Plus it's not duck season, so they need to move inventory. I have crossed through Geofence #1, the coupon/sales pitch.


I swing my car around and make a beeline for Cabela's. I hit the parking lot. At 200 feet from the door, the second Geofence has been crossed. One, the system notices it fired me a coupon and I visited the store within 5 minutes of receiving it. ROI recorded. Two, a sales associate has been notified via the system and is waiting for me at the door with an iPad. He verifies it's me via my mobile device and asks me if I'm here for the duck waders. He can show me a map of the store via the iPad or my mobile app can guide me there via store mapping technology. Right, left, right, left, duck waders.


Now, a very important thing just happened as I walked back to my neon orange duck waders. My phone, while it did guide me here, was sending a signal to the store. My phone, as well as everyone else's within the store, is creating a heat map of movement. This heat map will help the store setup advertisements and displays as well as track how effective their advertisement was in terms of other items bought from that coupon.


The billboards will now be personalized coupons based on your shopping history. With vehicles having in-dash screens, the billboards can hit those as well via your car's internet connection (yes, internet in cars is a growing market). You can now spend less on giant marketing schemes to hopefully capture a small portion of your target audience since you already have them on speed-dial.


This is not future technology, this is happening now.


By Kalen Kubik

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