Public Relations & Social Marketing Insight

Coupons are quickly growing as a significant component of beacon-enabled proximity marketing thanks to strong redemption rates, with brands and retailers forecast to deliver 1.6 billion coupons a year by 2020, according to a new report from Juniper Research.

The results point to how proximity marketing is gaining traction as retailers look to engage more deeply with consumers in and around their stores, prompting the volume of beacon-enabled coupons to grow quickly from the 11 million expected to be delivered in 2015. However, the research also underscores the potential danger of turning beacons into nothing more than another offer channel, which is likely to cause shoppers to lose interest.

“I would imagine that coupons will represent a key plank of any beacon-based proximity marketing strategy,” said Dr. Windsor Holden, head of forecasting and consultancy at Juniper Research as well as author of the report....

Beacons are driving mobile coupons and redemption rates are on the rise.

Several new studies are out indicating that the growth of beacons around the world is on the march and that when shoppers get a mobile coupon, offer redemption is right behind, sometimes in fewer than two minutes.

Beacons add a finer touch to location-based offers, since the small radio-transmitting devices can be located near specific products or in certain departments.

Brands have found that coupons with a location element typically enjoy far higher redemption rates than those without.

Many major retailers, including Macy’s, Target and Lord & Taylor, have installed thousands of beacons, many to learn the ins and outs of what works and what doesn’t....

Big retailers such as Nordstrom, Victoria’s Secret and Lowe’s are increasingly bringing physical manifestations of social media into their stores to excite mobile-savvy shoppers and drive sales.

With more shoppers using their phones in-store, often to connect with social media, and throughout the path-to-purchase, it makes sense for retailers to carry over the interest in social media to their window displays and other store marketing efforts. The strategy is an example of the blurring of the lines between marketing, content and advertising as omnichannel marketing matures....

Luxury in the form of premium experiences are seeing the most action in terms of spending, while high-end goods are lagging in comparison, according to new findings from a study by Boston Consulting Group.

The key finding of BCG’s Luxe Redux report is that there has been a shift in spending habits, where 55 percent of spending comes from luxury experiences rather physical goods. In addition, experiential luxury purchases grew 50 percent faster worldwide year over year than sales of luxury goods.