Proximity technology is a class of emerging technologies (which includes iBeacon, NFC, RFID and a host of others) that enable marketers to pinpoint the location of a customer at a particular point in time. Although proximity technology holds vast potential for marketers, it raises some legitimate concerns as well. Probably the most famous (or infamous) example of the dark side of proximity marketing was in the movie “Minority Report,” which depicted a world where people are under constant surveillance, allowing governments and businesses to track people continuously via retina scanners. In this futuristic landscape, digital billboards identify customers as they pass by and speak to them with highly personalized marketing messages: “Hello Mr. Yakimoto, welcome back to the Gap. How did those tank tops work out for you?”
Fortunately for us, ubiquitous, government-controlled retina scanners don’t exist in the real world. But, an even more powerful and pervasive tracking device does — the smartphone. When paired with proximity technology, the smartphone provides all the computational horsepower necessary to create sci-fi-inspired personalized marketing experiences, experiences that truly add value for the customer rather than creating a dystopian landscape. So if that’s the case, why hasn’t proximity technology transformed retail?