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How location-based app notifications can drive CRM

May 23, 2011

Luxury brands developing mobile applications can truly benefit from location-based push notifications since the tactic develops brand loyalty and CRM.

Sending out location-targeted messages to affluent consumers makes them feel wanted by and connected to the brand. Brand loyalty and consumer engagement are the cornerstones of any effective mobile strategy.

“The purpose is very much around brand loyalty, reinforcing the brand and the relationship and bridging it with the customer,” said Josh Rochlin, CEO of Xtify, New York.

“Using push notifications will help bring people back into a [branded] app where they will see content or information that will help them engage with the brand,” he said. “And putting that in context with where they are and the unique environment and culture that they are around makes it very personalized.”

Xtify declined to reveal any of its luxury clients.

App time
The first component to discovering how to effectively use location-based notifications is to build an app.

Once a brand decides what the app is trying to accomplish, whether it is mobile commerce or to drive customers in-store, it can then target an audience, the type of message that it wants to say and how it is going to say it.

Hypothetically, U.S. Open sponsors Rolex and Lexus could use the event as an opportunity to engage with customers who have their apps.

In theory, Rolex could integrate CRM systems into its app that recognize if its customers are at the tournament. Then, the brand could welcome them to the event or direct them to a loyalist section to see a new line of Rolex watches, per Mr. Rochlin.

Additionally, a luxury retailer such as Chanel or Dolce & Gabbana could tweak their mobile apps to register when a customer enters a retail location.

The app could ask the customer if she wants to use Foursquare to check in or to peruse a mobile site.

Luxury hotel chains have used this tactic by welcoming visitors to the city where they will be staying.

This extension of typical luxury brand customer service will make customers feel wanted and appreciated in a personalized way.

Pushing for it
Using push notifications as a component of a mobile app is a no-brainer.

If a consumer downloads a branded app, it is a likely sign that she is a loyalist.

Furthermore, if an app is downloaded and is not deleted, that is an even better sign.

But with thousands of new applications coming into app stores every day, luxury brands have to try a little harder to get noticed and keep relevant on a smartphone screen.

“A brand now has an app sitting with a luxury customer and it can now be able to judiciously deliver highly-relevant and targeted messages that can be personalized,” Mr. Rochlin said.

“[Brands must] make sure that the message is deliverable, actionable and that it is delivered at the most crucial time without disrupting the customer,” he said.

“Anticipating the needs of customers, providing great service and using location will enable companies to make a great experience and build loyalty with their customers.”

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