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Enabling the 
new world of retail:

a white paper on indoor positioning

Keeping pace with millennial shoppers

Shopping has been transformed by the ‘always on’ culture, with customers constantly connected to their smartphones and social media. Not only are consumers more empowered, but they now have multiple touchpoints with retailers. Many will use the web to orientate themselves before visiting stores and will continue to browse online as they shop.

 

With the millennial generation now centre stage and likely to represent 30% of shoppers by 2020 in the US*, ‘digital natives’ have become a core target for retailers.

 

To prosper in this new era, brick-and-mortar stores need to combine their physical presence with investment in a seamless online and mobile presence. That’s where lighting can play an important role. In partnership with Philips, it’s possible to create a wall-to-wall indoor positioning system through lighting, which means retailers can use a store app to provide personalized, location-based services.

 

*Accenture Outlook, Who are the Millennial shoppers? And what do they really want?, 2013

Millenial shoppers
Indoor positioning app

“We’ve been working towards bringing something new to the market… we have achieved that with indoor positioning from Philips Lighting, and are looking at more ways we can use it to enhance the customer experience.”

 

Affan Al Khoori, Deputy CEO of aswaaq, Dubai 

Understanding Philips Indoor positioning

Of course, LED fixtures deliver energy-efficient and high-quality lighting in store. At the same time, they use patented Philips Visible Light Communications (VLC) technology to send unique codes to the cameras on smartphones. Through software and a cloud solution, it’s then possible to locate the precise position of the customer – to within 30cm.

 

Retailers can use the technology to help customers find their way in the store, locate specific products, suggest recipes and deliver targeted coupons to encourage purchases, amongst others. As a result, shopping becomes more rewarding, interactive and personalized.

Retail indoor positioning

Consumer attitudes to apps

Philips surveyed 3,000 shoppers in 2015 to discover what they thought of retailers’ store apps.

 

Key findings included the opportunity for retailers to provide ‘right place, right time’ location-based services and improve store experience by integrating them into store apps. Unsurprisingly, consumers are looking to save time and money, want help locating the right product and welcome the opportunity for fun and social engagement.

This white paper describes in more detail the findings of our research and explains the role that indoor positioning systems can play in the next generation of retail. Learn about:

The different types of shoppers and their very different needs
The different types of shoppers and their very different needs
How location-based services can encourage app usage in both the grocery and DIY categories
How location-based services can encourage app usage in both the grocery and DIY categories
The best way to deploy the services in store
The best way to deploy the services in store

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