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Marketing Agency Trends 2014: IPS, smartphones and brands

17 December 2013

As we're always looking for the upcoming marketing agency trends set to shape the ways brands and consumers interact, we turned to Caroline Margolis, Marketing Director at digital creative agency, Somewhat_ for her predictions.

Here, she looks at IPS and at how smartphones are enabling greater connectivity, experiences and customer services for brands in 2014 and beyond

So what is IPS and why is it important?

IPS (Indoor Positioning Systems) is similar to GPS, in that it uses location based services via smartphones to allow individuals to be located within a few meters accuracy and sometimes even less than that. However unlike GPS, IPS works indoors, without the needs for satellites, using wifi or bluetooth technologies.

With technology giants such as Google, Apple and Microsoft/Nokia all in the location race, IPS is being hailed as the next big thing. It is a technology that is beginning to be embraced by numerous brands and over the next five years it is reported that “its market value will increase from $448 million to $2.6 billion by 2018”.

How can IPS be used?

Currently around 60% of mobile phone users have smartphones and this figure is set to continue rising to around 81% over the next four years in the UK alone. GPS and location sensitive apps are some of the most commonly used apps and are a fundamental part of most peoples mobile experience be it Google Maps, Foursquare or Yelp.

However, the proliferation of mobile devices and particularly smartphones coupled with technology developments, means for the first time these devices can be used inside shops, buildings and spaces as a key channel for consumer engagement.

woman on smartphone

IPS is a really interesting way for brands to use a relatively simple technology (which already has an existing infrastructure) to engage with their consumers and serve them relevant information, content and offers to enhance brand experience and grow customer loyalty.

Although significant for most types of brands, we see IPS being particularly useful for retailers and department stores, automotive manufacturers, public galleries/museums, travel, hospitality and sports brands to use in order to better engage with their audiences.

IPS can be used to connect, serve content or reward consumers in a number ways:

Real-Time Indoor Tracking and Navigation: allowing shoppers to identify their location in store and navigate effectively to the floor, department or item they want to access. On Call Customer Services: IPS can be used by retailers to enhance customer services. By knowing where customers are, it can enable staff to be on hand when support is needed. It can also be used by to physically map how shoppers navigate round stores and thus providing store owners with the information to improve the in-store experience.

Location-Based Services: Essentially this is location-based marketing and enables retailers to offer location based discounts or display voucher codes/QR codes based on proximity to their stores or even items in-store.

Information Services: This could tell someone their bus/train had arrived and what route it will take (and whether there might be delays etc), it could be used to help people to find their seats at event or even tell customer which member of staff is an attendant today.

Augmented Reality: Ultimately this serves to bring retail environments alive and amplifies the customer experience in-store or venue. It can help create a bespoke experience, support a curated journey, share exclusive content or even prompt to download a brochure for specific car or high value item.

Who is using it?

Although it is still early days for IPS, there are a number of trailblazing examples of retailers and galleries who are leading the way for consumer engagement. Here are a few examples:

Macy’s

This recently launched a new app includes a map of all 11 levels of Macy's Herald Square store in New York City. The search function / map allows customers to find particular brands of interest, departments and other information. It also has a function to provide step by step directions and also contains additional information on opening hours, restaurants and promotions.

Neiman Marcus

This app employs IPS and QR codes to enable customers to move through the store, locate items, receive alerts about which of their preferred sales associates is on duty, as well as updates on forthcoming store events, product arrivals, sales and fashion trends. If customers “opt-in” the app notifies store staff of their arrival and allows them to see the customers’ in-store and online shopping history to assist with better customer service.

Victoria and Albert Museum for Bowie Exhibition

At the David Bowie exhibition in 2013, the Victoria and Albert Museum partnered with audio specialist Sennheiser to deployed its audio guide system to support the exhibition. The system employed is very similar to IPS and automatically played the music and soundtrack when visitors approached the exhibits and screens, seamlessly integrating all sound material into the tour and enhancing the exhibition.

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Danielle Stagg

Written by Danielle Stagg