April 28, 2014 Opinion piece
In a recent OpinionLab survey into consumer attitudes toward use of tracking technology in-store, significant concerns were revealed about its use, with up to 80% saying they would refuse to have their movements traced.
The survey of just over 1,000 consumers in the US, showed that 64% would like to be consulted before being tracked. Shoppers also suggested that they would only participate in a programme if they were offered tangible incentives by the retailer, with almost two thirds of participants saying that they would allow location tracking if they were offered price discounts in return.
However, almost a quarter of those who completed the survey said that retailers should not be tracking customers at all. It would also appear that, unsurprisingly, the main concern shoppers have is around trusting retailers with their personal information.
GS1 UK’s view
‘Push’ coming to shove?
In terms of customer interaction, the industry seems to be heading towards more of a ‘push’ style of marketing and communication, as opposed to the ‘pull’ style that has been more dominant up until now. There are clear benefits for both customer and retailer from this, but how this shift is handled is an important factor for how successful this technology can be.
Convincing customers
The quality of experience on offer will be a key determiner for how quickly, if at all, this type of engagement is accepted by customers. This technology must add something useful and relevant to the overall experience of being in-store, rather than simply being used to push out generic sales offers, and in that respect should form part of the overall omnichannel strategy.
The most effective use of tracking technology would provide customers with assistance on their shopping journey, which requires careful thought into how information can be most effectively communicated. Success will be very dependent on the accuracy and relevance of this information.
Investing in youth
Another factor that will most likely prove determining to the successful implementation of this technology is time. To the older generation, these concepts are new and many may find beacon technology to be a major, potentially even creepy shift in their shopping experience. For the younger generation however, who are growing up with digital technology as a fact of life, use of beacon technology will seem far more natural.
As with all technologies, some will utilise tracking systems better than others. What is clear is that, due to the potentially invasive perception associated with it, the focus should not be on extending marketing reach but rather on complementing and enhancing the customer experience.
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