Geotriggered notifications provide retailers with a competitive edge during Jakarta’s Lebaran sale

Jul 17, 2014

Personalised instant alerts – triggered by virtual boundaries and sent directly to consumers’ smartphones – are helping retailers gain a competitive edge.

Personalised instant alerts – triggered by virtual boundaries and sent directly to consumers’ smartphones – are helping retailers gain a competitive edge.

The latest solution from Geographic Information System (GIS) technology giant Esri will enable retailers to place an invisible perimeter – known as a geofence – around a storefront, triggering push notifications to customers’ smartphones when they cross the boundary.

Personalised special offers – promotions, time-sensitive discounts or loyalty bonuses – will be delivered directly to the customers to attract them into the sender’s store.

Esri Indonesia Chief Executive Officer Bima Priadi said the geotriggered notifications would allow retailers to start a tailored conversation with consumers at crucial moments during their shopping experience.

“Unlike SMS or email campaigns, the technology doesn’t bombard shoppers with random promotional material at an inappropriate time or place,” said Mr Priadi.

“Instead – by taking advantage of a smartphone’s GPS features – GIS technology can provide retailers with precise details of customers’ movements in and around their business.

“For example, the technology was used as part of a free virtual racing game in the United States, where players were sent a special promotion from AMP Energy – an energy drink owned by PepsiCo – when they passed a 7-Eleven store.

“By buying an AMP Energy drink and scanning the can, players received special tips and tricks to help them win the game and claim a variety of prizes.

“This innovative approach to marketing allows retailers to clearly see the link between specific advertising expenditure and the results.

“The campaign drove sales distribution of AMP Energy Orange up 70 per cent and total sales at participating 7-Eleven stores up by five per cent during the promotion.

“Indonesian businesses will be able to use GIS technology in the same way to provide a greatly improved retail experience to shoppers, while taking ground back from competitors,” Mr Priadi said.

He added that introducing geotrigger technology early would give Indonesian retailers time to consolidate customer loyalty ahead of big sales events such as the Festival Jakarta Great Sale and the upcoming Lebaran sale.

“Early adoption of these instant alerts will give established local businesses an edge over incoming retail juggernauts by enabling them to provide superior, personalised customer service,” Mr Priadi said.

”As with many of the standing loyalty schemes – participation to receive geotrigger updates is voluntary, with consumers needing to ‘opt-in’ to receive the offers.

“It is an equal exchange – the customer is prepared to provide some personal information, such as their location and shopping preferences, in return for special offers or higher quality service from the retailers,” he concluded.