Make Me An Offer

SAS Alex FovargueThe UK’s digital society is going mobile, writes Alex Fovargue, retail specialist at SAS. In the UK alone there are nearly 88m mobile phone subscriptions, more than the population. Consumer mobile habits provide a unique opportunity for retailers to connect with each customer’s personal habits, desires and preferences. But personalisation is critical to the success of the mobile channel. Recent research we conducted with Conlumino found that around 50 per cent of consumers said they were more likely to use a retailer if its offers were personalised.

According to a recent Google study, 97 per cent of smartphone owners use their phones at home, 85 per cent use them on the go, and 64 per cent in stores. This always-connected culture offers retailers unprecedented potential to create instant wins by connecting with customers right when they are making a purchasing decision. The study reveals that a third of consumers would be likely to take advantage of an offer if they received it via their mobile device while standing in store. The potential impact of 30 per cent of 88m mobile users accepting offers on profit margins would be substantial.

In-store offers
The days of consumers eying up promotional material with suspicion are long gone. In fact, almost 40 per cent now actively opt-in to marketing material from retailers. In addition, the report found that nearly a third of consumers are likely to respond to relevant in-store offers, highlighting the increasing importance of location, and the potential for mobile services.
Mobile data allows brands to go beyond basic demographics. By combining geo-location data with data generated through loyalty schemes, retailers can use data analytics to provide real-time, specific, individualised discounts and incentives.
Take, for example, a campaign to market train tickets to frequent fliers. Using mobile data, a transport company can see how many mobile phones disappear suddenly in Heathrow and reappear in Edinburgh later in the time a flight would take. With further analysis of the data, the company can design specialised offers for different segments of these travellers and promote the offers via their mobile devices.
Finally, a mobile commerce component would make it easy for consumers to purchase items directly from their device or by waving their smartphone at the ticket counter or checkout. In the UK, 250,000 outlets are now capable of accepting mobile payments, and 32m contactless cards are in circulation around the country. As more high-performance and visual technology solutions become available, the opportunities have never been greater for retailers to deliver the right product, for the right price, at the right time, to the right person and via the right channel. Mobile opens up the next level for loyalty schemes in the UK as technology evolves to bring retailers and consumer ever closer through rich, personalised and relevant offers.

Alex Fovargue is a retail specialist at SAS

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