The ubiquity and immediacy of SMS have already made mobile a channel that businesses simply cannot ignore. In a sector where standing out from the crowd can mean the difference between success and failure, SMS can be used to attract more prospects and build a deeper, more meaningful relationship. Here is an overview of the new mobile trends revolutionizing the retail sector.

Location-based advertising

Forrester research (1) shows that mobile users are already accustomed to receiving SMS notifications. They regularly receive commercial messages from their banks, mobile carriers, airlines, and all kinds of retailers. Even though these SMS are rarely personalized, the vast majority of users open them. This is where the power of a location-based marketing campaign lies—a highly effective technique that is being rapidly adopted by the vast majority of retailers. Attracting prospects by providing relevant information based on their location can make their shopping experience much more memorable. Furthermore, delivering high-value information exactly when they need it demonstrates a business's attentiveness to its customers' needs and its commitment to the customer relationship.

Imagine a customer strolling through a shopping mall. Their window shopping leads them past a store. They then receive an SMS announcing a limited-time offer on that very jacket they were looking at on the retailer's website last week. This type of messaging campaign, driven by geolocation and real-time customer data, is a perfect example of sending an SMS at the right time and in the right place.

By offering prospects time-sensitive promotions based on geolocation data while they are near the store, retailers not only drastically increase the chances of the customer taking advantage of these offers, but also make them feel that they are receiving personal and special attention.

Enhancing and personalizing the in-store experience

How can retailers juggle prospects who are used to browsing and are now much more accustomed to researching online before making a purchase? How can the in-store experience be improved to compete with the explosion of online shopping?

Providing instant access to product and store information on prospects' mobile devices helps align the shopping experience with the conveniences of the connected shopping environment.

Once prospects are in the store, there is a rare opportunity to offer them a memorable shopping experience that encourages repeat visits and word-of-mouth. The most insightful retailers are implementing mobile systems that provide their prospects with easier access to product and store information. These systems also allow for personalized customer experiences. In this way, retailers can integrate the most popular aspects of online shopping directly into their physical stores.

Before arriving at the store, the customer can take advantage of comprehensive SMS services:

• Practical store information (directions, opening hours, etc.).
• Checking current promotions.
• Notifying the store of their arrival to pick up a product.
• Checking the average wait time at the checkout.

Once in the store, prospects can use their mobile phones to:

• Access a shopping list, with suggested routes or product locations.
• Scan products to access more information, such as pricing or safety instructions.
• Receive special offers that encourage them to explore other parts of the store.
• Receive a barcode for product pickup.
• Print product photos directly from their mobile phone.

Even after leaving the store, geolocated SMS remains useful:

• Mobile payment.
• Applying discount coupons.
• Receiving an invoice by email.

For example, not having to wait at the checkout is one of the most attractive features of online shopping. To meet this need for speed, retailers are implementing self-service payment systems via mobile phones. Prospects can scan their items in-store and then proceed to payment at a dedicated checkout.

The "customers who bought this item also bought..." feature, well-known for its success on Amazon, has long since proven its effectiveness. With a mobile app dedicated to the in-store experience, this type of messaging can be just as effective in a physical shop.

Lifecycle management

Business intelligence is changing the rules of the game for retailers. Customer retention has become a much more complex task in a highly competitive market. The rise of online sales is also a major disruptive factor for local retail.

The retail customer lifecycle

Evaluating the customer lifecycle is a great starting point for identifying touchpoints where a business can influence customer behavior and loyalty through relevant and well-orchestrated communication.

According to ExactTarget, the journey that connects a customer to a brand involves several stages, and each phase contributes to building a privileged customer-brand relationship.

1. Prospect conversion phase: various options are possible and not mutually exclusive: online subscription, via social media, in-store, or by SMS.
2. In situ: welcome program, preference management, guided shopping.
3. Engagement: promotional messages, birthday offers, geolocation, abandoned cart management.
4. Loyalty: renewed targeting.

Customer intelligence

Essentially, the purpose of Customer Intelligence is to transform data into concrete strategies that foster customer loyalty. The focus is on understanding customer behavior rather than controlling it. The brand must ensure that every communication is designed to resonate with the customer's true motivations, rather than the brand's own.

Key figures

While in most countries around the world, more than 90% of sales still take place in-store, an overwhelming proportion of these sales are influenced by digital channels. 70% of connected Europeans expect in-store staff to be equipped with mobile devices to check prices.

For prospects purchasing consumables or items from a series, availability alerts can provide real added value. For example, a bookstore could send SMS updates to customers who purchased a volume from a multi-part series. This way, the customer can plan their budget in advance and be informed of the second volume's availability as soon as it arrives in the store.

By monitoring the time between purchases, you can send prospects special offers that perfectly match their needs. A music store could send an SMS to its guitarist customers to remind them to buy new strings and provide them with special offers.

One of the most significant reasons for the rapid growth in investment in mobile solutions within the retail sector is the value of communicating with customers through a channel they enjoy and use every day. Online shopping has already achieved mass adoption, and as smartphone features become increasingly specialized, mobile shopping is something retailers simply cannot ignore.