Indoor positioning increases basket values by 10 per cent

Marc O’Polo wanted to develop a mobile phone app that would serve as a digital customer loyalty card.

An indoor positioning system installed as part of a trial in Marc O’Polo stores in Switzerland has seen the average value of purchases made by customers rise by 10 per cent.

Osram Einstone technology was commissioned by the Bollag-Guggenheim Fashion Group to try and improve customer loyalty, whilst increasing the chances that customers would purchase products.

The Osram indoor positioning system played a major role in Bollag-Guggenheim’s digitisation strategy.

The company wanted to develop a mobile phone app that would serve as a digital customer loyalty card, which would offer discounts and special offers locally using indoor positioning technology.

‘I really believe that indoor positioning is going to grow and grow over the next few years,’ Benjamin Brudnjak, product manager at Osram, told Lux.

'This project proves the technology's potential.'

Marc O’Polo also wanted to capture information about customer behavior when they were in the store, so the firm were able to offer a tailored shopping experience that satisfied customer’s needs.

In order to create this location-based system Einstone ‘beacons’ were installed in the store’s lighting system, creating a homogenous signal across the shop.

The ten percent basket growth is significant. Even if you consider all the instillation costs and the software that needed to be developed.

Benjamin Brudnjak - product manager at Osram 

The data collected via the app was then fed to a beaconsmind data management system, which enabled Bollag-Guggenheim to study the collected information.

The technology’s ability to send personalised messages to customers based upon their location in the store prompted a lift in basket values of more than 10 per cent.

There was also a double digit digital offer redemption rate on the app, which is higher than normal.

‘The ten percent basket growth is significant,’ Brudnjak added at the Lux conference. ‘Even if you consider all the instillation costs and the software that needed to be developed this still brings significant value.’

 

  • Lux will be holding a Connected Lighting in Retail Conference at the Cavendish Centre in central London on Wednesday 27 September 2017. The event will consider how connected  lighting can be utilised to interact with shoppers and what new technologies are best suited to this task. The conference will also advise you on the best ways to become a player in this exciting emerging market. You find out more and register to attend by clicking here

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