ShopTalk: Is retail geolocation too close for comfort?
Geolocation is a hot topic in the retail world. While physical stores offer the benefits of in-person browsing and assistance from store employees, a gap remains between the levels of personalization they can provide versus their online counterparts. Digital retailers are open 24/7 and can leverage data analytics to supplement online shopping by offering custom-tailored promotions and shopping recommendations. Brick-and-mortar retailers are looking to close that gap through the use of location-sensing technologies made possible by smartphones and mobile apps.
But with the promise of geolocation also comes the question of whether shoppers are willing to use it. While some shoppers may be excited at the prospect of receiving timely discounts and offers, others might balk at the idea of retailers knowing their exact location at any given time. For this edition of ShopTalk, Vantiv teamed up with Socratic Technologies to ask 500 consumers about their comfort with geolocation and their willingness to use it in retail locations. Here are the results.
Geolocation needs to be relevant and easy to control
50% of respondents are comfortable with geolocation as long as they can opt in and out; 24% say it is only acceptable if the offers are relevant or tied to their purchase histories
Younger generations are more accepting of geolocation
Millennials (72%) and Gen Xers (61%) find geolocation acceptable while 44% of Retirees and 38% of Baby Boomers do not
Nearly half of respondents have heard of geolocation
Compare this to 32% of respondents that have never heard of it
But only two out of ten have experienced it
22% have experienced retailers or restaurants using geolocation to provide enhanced offers, promotions, and discounts
Consumers are most interested in using geolocation at grocery stores
50% of respondents are interested in using geolocation at grocery stores, followed by national restaurant chains (47%) and large national retailers (46%)