Mobile Technology

Benefits of Proximity Marketing and How to Plan a Campaign

9th April 2019

It’s no secret that the mobile ecosystem has grown at an astonishing pace in the last decade, presenting seismic commercial opportunities for innovative enterprises across the world. To further emphasise this extraordinary growth trajectory, App Annie estimate that this year consumer app store spend will reach an astonishing $120 billion. This equates to a year on year growth rate of 30%, with both the App Store and Play Store growing faster than ever. When it comes to doing an exceptional job in mobile and digital products, there’s so much opportunity in terms of user engagement and retention, but understanding how to target users in a highly sophisticated way is not always easy – that’s where targeted proximity marketing comes in.

Proximity marketing is one of the fastest ways to gain a competitive edge for your business. Whether you already have a mobile app, or are planning to develop a mobile app, you need to know that personalization is now the key success factor. Proximity marketing – aka personalization – is vital to provide an awesome mobile app experience users.

This guest blog from our technology partner Kumulos not only explains the benefits of proximity marketing but how to plan a campaign.

Proximity Marketing – What is it?

Proximity marketing simply refers to communicating with customers at the right place, at the right time, with a personalised mobile message. It bridges the gap between offline and online marketing. Beacons, geofencing and push notifications play a vital role.

There are so many benefits of proximity marketing. According to Beaconstac, proximity marketing is 16 times more effective than Google Pay per click! From easy geotargeting to improve app engagement and improved retention, you’ll be compelled to execute a proximity marketing campaign soon!

The Power of Proximity Marketing

For years, we have seen the power of proximity marketing. In particular, the retail sector is notorious for geo targeting each other’s outlets. Even back in 2014, Dunkin Donuts delivered discount coupons to people near Starbucks. Needless to say, this gave them substantially higher coupon redemption rates. Recently, the initiative from Burger King is a great example of how to use the power of relevance and immediacy by offering customers something highly relevant and timely. Their proximity promotion was designed to retain customers that may be tempted to a competitor and promote a new feature in their app.

So, before executing a proximity marketing campaign, let’s take a look at some of the benefits of adopting this personalised mobile marketing.

Benefits of Proximity Marketing

1: Geotargeting Is Easy With Proximity Marketing

It’s so easy. Just pick a precise location so that when someone enters, exits or lingers within that geofence, a push notification is sent to that person’s mobile. Geofence technology can also send messages to anyone present within a geofence immediately or with a preset delay. If you use segments and channels you can send different messages to different customers who enter the same geofence and/or are near to a beacon. What’s more, beacons provide more detailed location data than GPS or WIFI tracking.

2: Proximity Marketing Increases App Engagement

Keeping users engaged is one of the most important ways of ensuring the commercial success of any app. For any business where the location is important, geotargeting in conjunction with push notifications is one of the most effective app engagement tools.

3: Beacons Help To Improve App Retention

Improving app retention is a priority for all businesses with a mobile app. Setting up proximity marketing campaigns with beacons is a sure way of increasing brand loyalty and improving customer retention. It’s important to have app analytics in place so that you can create reports on the open rate and engagement rate for push notifications.

The average clickthrough rate (CTR) for beacon-based push notifications can be as high as 80%. With this high CTR, it’s easy to see why beacons can help transform the customer experience.

4: Proximity Marketing Helps You Gain A Competitive Edge

By creating an interactive environment for your customers, not only will this help engage them and retain them but it will give your brand a competitive edge. However, there is a fine line between improving customer experience and appearing creepy with too many disruptive messages. This is why you need to analyse your target audience and spend time on your mobile marketing automation strategy.

5: Proximity Marketing Gives You Immediate Conversions

By increasing app engagement, a proximity marketing campaign will help you with your conversion goals. With proximity campaigns, you immediately connect with prospects when they are most in a situation to purchase from your brand. Retailers can prompt customers, at the perfect timing, with enticing offers such as discount push notifications.

6: Proximity Marketing = A Personalized Experience

Personalization is a key aspect to any customer experience. In retail, for example, with proximity marketing, not only can businesses send personalized messages to app users…but at the same time, the store staff can be alerted if a loyal customer walks in, enabling them to offer the best in-store experience to regular customers.

Planning a Proximity Marketing Campaign

When it comes to planning a proximity campaign, there are a number of things to take into consideration. Firstly, there’s identifying the target audience. Secondly, the content strategy requires attention. Thirdly, you need to think about the metrics you’ll track to measure the success of the campaigns.

But, most importantly you need to think about the digital technology required and find a great mobile app development partner. A mobile app developer will need to incorporate a beacon solution along with a push notifications service. With many options available, it’s important to find a mobile app developer, like Waracle who uses both a beacon solution provider and push notifications provider with a great fit. These solutions provide mobile app developers with great options for location triggered push notifications and proximity marketing using beacons and geofence technology.

Implementing a Proximity Marketing Campaign

As mentioned, selecting the right technology partner is key to implementing your proximity marketing campaign. So here’s what you need to know before you contact your mobile app developer.


Beacons came on the tech scene in 2013 when Apple announced new iBeacon technology.

But buying beacon hardware is not always the most efficient answer as you also need a developer on board with plenty of time. This is why many businesses prefer a complete proximity marketing solution from their digital transformation partner.


Geofencing has become a standard practice for plenty of businesses. It is a location-based service that allows you to set up a virtual boundary around a specified location such that whenever a device enters or exits the defined boundaries, an alert is sent to the administrator. Geofencing software along with SMS marketing systems and push notifications tools allow businesses to use a customer’s location to send out messages when they’re near a defined boundary, such as their shop.

Push Notifications

Regardless of the technology in use, your push notifications are the most important part of your proximity campaign. Timely and relevant push notifications have a great influence on customer behavior. A good mobile marketing automation platform will enable you to schedule push notifications and manage geofences. For example, mobile app developers can easily provide app clients with proximity marketing by accessing a mobile app performance management platform.

Proximity Marketing is Here to Stay

Remember that proximity marketing isn’t just limited to mobile devices. Wearables can also receive beacon notifications. So, if you are seeking new ways to gain a competitive edge, it’s time you suggested proximity marketing. Whether you want to have a mobile app developed or enhanced, there’s a proximity marketing solution which will fit your requirements.

About Kumulos

Kumulos App Performance Management platform comes with a comprehensive range of services covering the entire life cycle of the app. Its 5 integrated services include app store optimization, analytics & reporting, backend hosting, crash reporting & endpoint monitoring and its award winning push notifications service, which received awards from Business of Apps, Mobile App Daily and The Tool. It provides a management console for mobile app developers, like Waracle, to gain comprehensive visibility on how all client apps are performing technically and commercially.


Whilst mobile engagement and proximity marketing can seem daunting at first, it’s surprisingly easy to get started with Geo Targeting and the associated commercial opportunities can be enormous. There are a myriad of benefits associated with proximity marketing in terms of increasing app engagement, using beacons to enhance retention and increase competitive advantage. It also provides a highly personalized experience and enables you to instantly track conversions. If you’re interested in understanding more about how to plan and implement geofencing, push notifications and beacons, there’s never been a better time to get started and Waracle’s digital product specialists are always delighted to help take your idea to the next level.

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